local corp (LOCM) Key Developments
Local Corporation Presents at Siemer & Associates, LLC.'s Siemer Summit 2014, Jul-17-2014 11:30 AM
Jul 2 14
Local Corporation Presents at Siemer & Associates, LLC.'s Siemer Summit 2014, Jul-17-2014 11:30 AM. Venue: Casa Del Mar and Shutters on the Beach, Santa Monica, California, United States. Speakers: Frederick G. Thiel, Chairman and Chief Executive Officer.
Local Corporation Announces Board Changes
Jun 10 14
Local Corporation announced the appointment of David M. Hughes, and John M. Payne, to its board of directors. Hughes brings 15 years of strategic executive leadership experience with public and private companies. He is currently the CEO of The Search Agency. In this role, Hughes is responsible for hands on management of the company's managed services and software-as-a-service platform products. Payne is currently the CEO of SimpleAir Inc. He also serves as lead inventor for all of the patents in the SimpleAir portfolio, covering more than 12 patents in two product families. In conjunction with the appointment of Hughes and Payne, Heath Clarke has resigned from the board effective immediately, but will continue to provide consulting services to the company as previously agreed. Both Hughes and Payne will serve as Class III Directors. Hughes will also serve on the company's Audit Committee.
Local Corporation Not In Compliance With NASDAQ Listing Rules
May 9 14
On May 7, 2014, Local Corporation notified the NASDAQ Stock Market that, due to Mr. Thiel’s appointment as Chief Executive Officer and related resignation from the Company’s Audit Committee, the Company’s (i) Board of Directors currently does not consist of a majority of “independent directors” as defined in Rule 5605(a)(2) of the listing standards of the NASDAQ Stock Market, and that therefore the Company does not currently meet the requirements of Rule 5605(b)(1) of the listing standards of the NASDAQ Stock Market, and (ii) Audit Committee currently does not consist of at least three “independent directors”, and that therefore the Company does not currently meet the requirements of Rule 5605(c)(2)(A) of the listing standards of the NASDAQ Stock Market. On May 8, 2014, the Company received a response letter from the NASDAQ Stock Market acknowledging the fact that the Company does not currently meet the requirements of Rule 5605(b)(1) and Rule 5605(c)(2)(A) of the listing standards of the NASDAQ Stock Market. In accordance with Rule 5605(b)(1) and Rule 5605(c)(2)(A) of the listing standards of the NASDAQ Stock Market and as stated in the response letter the Company received from the NASDAQ Stock Market, the Company has a cure period of 180 days from the effective date of Mr. Thiel’s appointment as chief executive officer and related resignation from the Company’s Audit Committee, to again meet the requirements of Rule 5605(b)(1) and Rule 5605(c)(2)(A) of the listing standards of the NASDAQ Stock Market. Prior to the end of such cure period and in accordance with the Company’s Amended and Restated Certificate of Incorporation, as amended, the Company’s Board of Directors intends to appoint to the Company’s Board of Directors and the Company’s Audit Committee, a person who is an “independent director” as defined in Rule 5605(a)(2) of the listing standards of the NASDAQ Stock Market. Upon such appointment, the Company will again meet the requirements of Rule 5605(b)(1) and Rule 5605(c)(2)(A) of the listing standards of the NASDAQ Stock Market.
Local Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2014; Provides Earnings Guidance for the Full Year of 2014
May 8 14
Local Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2014. For the quarter, the company reported revenue of $26.2 million grew 22% year-over-year from $21.46 million a year ago, based on strong contributions from the company’s Extended Ad Network. Operating loss was $1,677,000 compared to $2,223,000 a year ago. Loss from continuing operations before income taxes was $2,554,000 compared to $3,060,000 a year ago. Net loss from continuing operations was $2,828,000 or $0.12 per basic and diluted share, compared to $3,132,000 or $0.14 per basic and diluted share, a year ago. Net loss was $2,828,000 or $0.12 per basic and diluted share, compared to $3,353,000 or $0.15 per basic and diluted share, a year ago. Net cash used in operating activities was $727,000 compared to net cash provided by operating activities of $1,057,000 a year ago. Capital expenditures were $940,000 compared to $635,000 a year ago. Adjusted EBITDA for the first quarter of 2014 was $712,000, or $0.03 per diluted share. This compares to fourth quarter 2013 adjusted EBITDA of $1.4 million, or $0.06 per diluted share, and first quarter 2013 adjusted EBITDA of $685,000, or $0.03 per diluted share.
The company provided earnings guidance for the full year of 2014. For the year, the company continues to expect 2014 revenue of between $103 million and $107 million, which at the mid-point, is an increase of 11% over 2013 revenue. The company reiterated expected adjusted EBITDA for 2014 to be between $3 million and $4 million or between $0.13 and $0.17 per diluted share, assuming diluted weighted average shares of 23.5 million taking into account the dilutive effect of stock options and warrants. The decrease from 2013 adjusted EBITDA is a result of the company's continued investments in expanding new initiatives in shopping and mobile and due to lower than expected gross margins from lower organic traffic. Projected 2014 adjusted EBITDA factors like interest expense of $1.7 million; income tax provision of $200,000; depreciation expense of $4.0 million; amortization expense of $900,000; stock compensation expense of $800,000; severance charges of $1.8 million; and warrant and conversion option revaluation expense items are undeterminable, but may be significant non-cash gains or losses.
Local Corporation Announces Management Changes
May 7 14
Local Corporation announced that Fred Thiel, Local Corporation's chairman of the board, has been named Chief Executive Officer of the company, effective immediately. The company also announced that, effective immediately, the position of President and Chief Operations Officer would be eliminated to further streamline operations and Michael Sawtell will be leaving the company. Thiel joined Local as a board member in 2013 and became its chairman in January of this year. Prior to Local, Thiel served as the managing partner of the Software IT Group at Triton Pacific Capital Partners, from January 2007 until the end of 2012. Norm Farra, will be resuming his role as lead director of the board of directors. In connection with his appointment as CEO, Thiel has resigned his positions on the Audit Committee, Nominating and Corporate Governance Committee, and the Compensation Committee of the Board of Directors. He will remain chairman of the board. The company will move quickly to nominate a new independent director to regain compliance with applicable listing standards.