ADEX MEDIA INC 
By MOUNTAIN VIEW, Calif., Nov. 12 /PRNewswire-FirstCall/ -- AdEx Media, Inc. (OTC Bulletin Board: ADXM) (the "Company"), a leading performance-driven, online marketing and distribution company, today announced results for the third fiscal quarter ended September 30, 2009.
The Company reported revenues for the third quarter of 2009 of approximately $6.5 million, a 261% increase over revenues of approximately $1.8 million from the same quarter for 2008 and revenues for the nine month period ending September 30, 2009 of approximately $18.2 million, a 469% increase over revenues of approximately $3.2 million for the same period last year.
Net loss to the shareholders for the quarter was approximately $1.2 million, compared with a net loss of approximately $1.3 million in the same quarter for 2008. Net loss for the quarter included approximately $409,000 in stock-based compensation, $26,000 in amortization of acquired intangible assets, and $122,000 in non-cash deemed dividends related to the Company's recent financing through the sale of convertible series A preferred stock and warrants.
Net loss to the shareholders for the nine months ended September 30, 2009 was approximately $5.6 million, compared with a net loss of approximately of $1.9 million for the same period last year. Net loss for the nine months included approximately $905,000 in stock based compensation, $990,000 in impairment charges of acquired intangible assets, $171,000 in amortization of acquired intangible assets, and $1.1 million in non-cash deemed dividends related to the Company's financings through the sale of convertible series A preferred stock and warrants.
Scott Rewick, Chief Executive Officer of AdEx commented, "We are pleased with the strong year over year revenue growth we have posted in the first nine months of this year." Rewick further stated, "Our significant investment in our technology platform and direct media buying relationships are setting the stage for continued growth into 2010."
A copy of the September 30, 2009 Balance Sheet and Statements of Operations for the quarters ended September 30, 2009 and 2008 are reproduced below. The Company intends to file its financial statements for the period ended September 30, 2009 on Quarterly Report Form 10-Q with the Securities and Exchange Commission on November 16, 2009.
Corporate milestones and accomplishments during the third quarter of 2009 included:
-- Strong year over year revenue growth
-- Nine months revenues of $18.2 million
-- Gross margin expansion
-- Expansion of the Think technology platform
-- Operating efficiencies improved by outsourcing fulfillment and customer
service functions moving these functions on a variable cost basis
-- Additional reduction of fixed payroll expenses by lowering headcount
-- Expansion of global media buying through direct purchase relationships
with Microsoft, AOL and Yahoo
The Company will host an investor conference call on Friday, November 13, 2009, at 11:30 AM Eastern Time to answer questions regarding the results for the three months ended September 30, 2009, reported in our Quarterly Report Form 10-Q. US dialers: (877) 407-8031; International dialers (201) 689-8031. Interested parties may also listen via the Internet at www.investorcalendar.com. The call will be available for replay for 30 days by dialing (877) 660-6853 (US dialers); (201) 612-7415(International dialers), and entering the replay pass code 286 # and conference ID#337665 and on www.investorcalendar.com.
About AdEx Media, Inc.
AdEx Media, Inc. is an integrated Internet marketing and lead generation publisher and developer, manufacturer, and marketer of consumer products. AdEx both markets and distributes its own products, developed pursuant to strategic partnerships with manufacturers, and offers its third-party advertising customers a multi-channel Internet advertising network and diversified solutions for direct advertisers and agencies. AdEx's marketing platform provides a range of services including (i) search marketing, (ii) display marketing, (iii) lead generation, and (iv) affiliate marketing. AdEx offers advertisers a compelling value proposition by offering true pay-per-performance pricing, commonly known as cost-per-action (CPA) or pay-per-action (PPA).For more information about AdEx Media, visit http://www.AdEx.com.
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission.
ADEX MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2009 2008 (a)
---- -------
ASSETS
Current assets:
Cash and cash equivalents $1,879,547 $683,576
Restricted cash 100,000 -
Short-term investments 570,960 2,502,670
Accounts receivable, net of allowance
for doubtful accounts of $10,960
and $19,737, respectively 317,202 521,004
Credit card processor holdbacks, net of
reserves of $477,706 and $167,363,
accrued credit card chargeback fees of
$120,213 and $57,280, and accrued credit
card fees of $134,143 and zero, respectively 574,164 243,213
Inventory, net 417,123 57,087
Prepaid expenses and other current assets 152,986 97,878
------- ------
Total current assets 4,011,982 4,105,428
Property and equipment, net 136,465 43,606
Intangible assets, net 206,638 1,367,330
Goodwill 8,448,789 8,448,789
----------- -----------
Total assets $12,803,874 $13,965,153
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,291,311 $929,807
Accrued liabilities 1,030,274 536,627
Warrant liability 111,067 -
Deferred revenue 29,774 25,709
Promissory notes 142,976 401,806
------- -------
Total current liabilities 2,605,402 1,893,949
Promissory notes - 150,000
Deferred tax liability 3,652 404,817
--------- ---------
Total liabilities 2,609,054 2,448,766
--------- ---------
Commitments and Contingencies
Stockholders' Equity:
Preferred stock; $0.0001 par value;
10,000,000 shares authorized;
2,221,337 shares issued and
outstanding at September 30, 2009
for series A preferred stock and
zero at December 31, 2008 $222 $-
Common stock, $0.0001 par value;
150,000,000 shares authorized,
32,055,248 and 31,202,347 shares
issued and outstanding at September
30, 2009 and December 31, 2008,
respectively 3,206 3,120
Additional paid-in capital 18,098,650 13,808,966
Accumulated deficit (7,907,258) (2,295,699)
---------- ----------
Total stockholders' equity 10,194,820 11,516,387
----------- -----------
Total liabilities and stockholders' equity $12,803,874 $13,965,153
=========== ===========
(a) Derived from audited consolidated financial statements.
ADEX MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For The Three Months Ended For The Nine Months Ended
-------------------------- --------------------------
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
-------- -------- -------- --------
Revenues:
Marketing platform
services -
external offers $3,078,563 $1,340,935 $8,416,063 $2,750,264
Marketing platform
services -
internal offers 3,429,139 476,228 9,744,824 476,228
--------- -------- --------- --------
Total revenues 6,507,702 1,817,163 18,160,887 3,226,492
Cost of revenues:
Marketing platform
services -
external offers 2,511,901 1,219,213 6,832,201 2,299,117
Marketing platform
services -
internal offers 1,388,945 127,526 3,296,270 127,526
Amortization of
acquired product
licenses - 18,795 58,333 18,795
--------- -------- --------- --------
Total cost of
revenues 3,900,846 1,365,534 10,186,804 2,445,438
--------- -------- --------- --------
Gross profit 2,606,856 451,629 7,974,083 781,054
--------- -------- --------- --------
Operating expenses:
Product development - 17,300 - 52,550
Sales and marketing 2,716,664 1,021,662 9,428,746 1,350,135
General and
administrative 1,071,825 404,521 2,448,362 955,729
Amortization of
intangible assets 25,584 22,224 112,525 22,224
Impairment charges
on intangible assets - 310,000 989,834 310,000
--------- -------- --------- --------
Total operating
expenses 3,814,073 1,775,707 12,979,467 2,690,638
--------- -------- --------- --------
Operating loss (1,207,217) (1,324,078) (5,005,384) (1,909,584)
Other income and
expense:
Interest and other
(expense) income,
net (8,170) 13,489 (7,738) 45,582
Mark-to-market gain
on warrant
liability 88,786 - 70,248 -
--------- -------- --------- --------
Loss before income
tax benefit (1,126,601) (1,310,589) (4,942,874) (1,864,002)
Income tax benefit (1,400) (12,923) (401,164) (12,123)
--------- -------- --------- --------
Net loss (1,125,201) (1,297,666) (4,541,710) (1,851,879)
========== ========== ========== ==========
Deemed dividend to
series A preferred
stockholders (121,500) - (1,069,850) -
--------- -------- --------- --------
Net loss
attributable to
common
stockholders $(1,246,701) $(1,297,666) $(5,611,560) $(1,851,879)
=========== =========== =========== ===========
Loss per common
share, basic
and diluted $(0.04) $(0.04) $(0.18) $(0.12)
====== ====== ====== ======
Weighted average
common shares used
in computing
basic and diluted
loss per
common share 31,871,506 30,388,079 31,648,221 15,443,218
========== ========== ========== ==========
SOURCE AdEx Media, Inc.
