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Local Corporation Message Board

  • flankenking flankenking Sep 24, 2013 2:39 PM Flag

    Financial Analysis & Assumptions - 2Q2013 Results & Recent Financial Highlights (from Covering throug Merriman Capital)

    Local Corp. issued results for its recently completed 2Q2013 on the 8th of August. The company also hosted a conference call during which it discussed progress in its operating model and prospects going forward for the company.

    The company generated $1.2 million in positive adjusted EBITDA for the quarter. Local posted an adjusted
    EBITDA of only $462,000 during the same quarter a year ago and $685,000 in adjusted EBITDA last quarter. Substantial growth within the company's high-margin Network business provided Local with the substantial boost in cash flows. Most importantly, management increased its guidance for its current fiscal year, 2013. Revenues are now expected to come in at $95-$97 million and the company is expecting to generate an adjusted EBITDA of at least $5.4 million for the year, which is up from a revenue range of $93-95 million
    and an adjusted EBITDA of $5 million.

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    • That are idiotic low 0.4-times-revenues.

    • Merriman Capital continue in the coverage: "The encouraging Q2 results and the increase in guidance was due to the continued growth in high-margin network revenues. Network revenues increased almost 40% sequentially to $11.6 million compared to $8.3 million in the previous quarter and nearly tripled from the $4.1 million the company posted last year. Growth within this key segment contributed to strong expansion in the company’s blended gross margin, which remains a key long-term goal for the company. Network margins remain around 40-50% whereas the
      company’s O&O margins generally fall in the 20-30% range. With continued focus on growing its Network business Local should see gross margins increase secularly leading to concomitant growth in cash flow. Local’s total gross margin of 27.4% was up over 200 basis points from a year ago."

 
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