ReachLocal : UK Pro Forma Financials

UK Pro Forma Financials - Final.xlsx

REACHLOCAL, INC. UNAUDITED RECONCILIATION OF PRO‐FORMA FINANCIAL INFORMATION EXCLUDING THE UNITED KINGDOM

(in thousands)

Three Months Ended Three Months Ended

March 31, 2015 March 31, 2014

Revenue by Channel (North America) (1):

As Reported United Kingdom Pro‐Forma As Reported United Kingdom Pro‐Forma

Direct Local

$ 45,926

‐ $ 45,926 $

56,264

‐ $ 56,264

National Brands, Agencies and Resellers (NBAR) 17,573 ‐ 17,573 20,824 ‐ 20,824

Revenue by Channel (International):

Direct Local 32,809 6,496 26,313 42,303 10,432 31,871

National Brands, Agencies and Resellers (NBAR) 3,255 294 2,961 5,345 818 4,527

Consolidated Revenue

$ 99,563

6,790 $

92,773

$ 124,736

11,250 $

113,486

Consolidated Adjusted EBITDA (2)

$ (3,785)

(1,913) $

(1,872) $

2,261

905 $

1,356

Revenue by Channel (North America) (1):

Three Months Ended Three Months Ended

June 30, 2015 June 30, 2014

As Reported United Kingdom Pro‐Forma As Reported United Kingdom Pro‐Forma

Direct Local

$ 46,189

‐ $ 46,189 $

54,944

‐ $ 54,944

National Brands, Agencies and Resellers (NBAR) 17,787 ‐ 17,787 22,024 ‐ 22,024

Revenue by Channel (International):

Direct Local	31,085	6,380 24,705		42,218	8,215 34,003
National Brands, Agencies and Resellers (NBAR)	3,715	187 3,528		4,367	683 3,684
Consolidated Revenue	$ 98,776	6,567 $ 92,209		$ 123,553	8,898 $ 114,655
Consolidated Adjusted EBITDA (2)	$ 715	(22) $ 737		$ (1,904)	(1,753) $ (151)
Three	Months Ended September 30, 2015		Three	Months Ended September 30, 2014
Revenue by Channel (North America) (1):	As Reported	United Kingdom Pro‐Forma		As Reported	United Kingdom Pro‐Forma
Direct Local	$ 45,007	‐ $ 45,007		$ 49,842	‐ $ 49,842
National Brands, Agencies and Resellers (NBAR)	17,276	‐ 17,276		21,438	‐ 21,438
Revenue by Channel (International):
Direct Local	28,580	6,703	21,877	42,072	8,177	33,895
National Brands, Agencies and Resellers (NBAR)	4,419	161	4,258	4,271	530	3,741

Consolidated Revenue

$ 95,282

6,864 $

88,418

$ 117,623

8,707 $

108,916

Consolidated Adjusted EBITDA (2)

$ 1,629

32 $

1,597 $

(3,843)

(559) $

(3,284)

Revenue by Channel (North America) (1):

Three Months Ended December 31, 2014

As Reported United Kingdom Pro‐Forma

Direct Local

$ 47,408

‐ $ 47,408

National Brands, Agencies and Resellers (NBAR) 20,351 ‐ 20,351

Revenue by Channel (International):

Direct Local	37,771	7,226	30,545
National Brands, Agencies and Resellers (NBAR)	3,479	360	3,119
Consolidated Revenue	$ 109,009	7,586 $	101,423
Consolidated Adjusted EBITDA (2)	$ (5,924)	(1,521) $	(4,403)

Revenue by Channel (North America) (1):

Nine Months Ended Nine Months Ended

September 30, 2015 September 30, 2014

As Reported United Kingdom Pro‐Forma As Reported United Kingdom Pro‐Forma

Direct Local

$ 137,118

‐ $ 137,118

$ 161,050

‐ $ 161,050

National Brands, Agencies and Resellers (NBAR) 52,639 ‐ 52,639 64,286 ‐ 64,286

Revenue by Channel (International):

Direct Local	92,474	19,578	72,896	126,593	26,824	99,769
National Brands, Agencies and Resellers (NBAR)	11,389	642	10,747	13,983	2,031	11,952
Consolidated Revenue	$ 293,620	20,220 $	273,400	$ 365,912	28,855 $	337,057
Consolidated Adjusted EBITDA (2)	$ (1,442)	(1,903) $	461	$ (3,486)	(1,407) $	(2,079)

1. North America includes the United States and Canada. International includes all other countries

   
   

2. Adjusted EBITDA is defined as net income (loss) from continuing operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock‐based compensation, the effects of accounting for business combinations (including any impairment of acquired intangibles and goodwill), restructuring charges, and other non‐operating income or expense.

REACHLOCAL, INC. UNAUDITED RECONCILIATION OF PRO‐FORMA FINANCIAL INFORMATION EXCLUDING THE UNITED KINGDOM (in thousands)

Three Months Ended Three Months Ended

March 31, 2015	March 31, 2014
As Reported United Kingdom	Pro‐Forma	As Reported United Kingdom	Pro‐Forma

Operating loss Add:	$ (12,527)	(1,973)	$ (10,554) ‐	$ (8,369)	828	$ (9,197) ‐
Depreciation and amortization	5,134	60	5,074	4,222	77	4,145
Stock‐based compensation	2,146	‐	2,146	4,571	‐	4,571
Acquisition and integration costs	7	‐	7	14	‐	14

Restructuring charges 1,455 ‐ 1,455 1,823 ‐ 1,823

Adjusted EBITDA (1)

$ (3,785) (1,913) $ (1,872)

$ 2,261 905 $ 1,356

Three Months Ended Three Months Ended

June 30, 2015		June 30, 2014
As Reported United Kingdom		Pro‐Forma	As Reported United Kingdom Pro‐Forma
Operating loss Add:	$ (9,785)	(174)	$ (9,611) ‐	$ (11,626)	(1,828)	$ (9,798) ‐
Depreciation and amortization	5,149	58	5,091	4,018	75	3,943
Stock‐based compensation	2,214	‐	2,214	3,476	‐	3,476
Acquisition and integration costs	4	‐	4	2	‐	2

Restructuring charges 3,133 94 3,039 2,226 ‐ 2,226

Adjusted EBITDA (1)

$ 715

(22) $

737 $

(1,904)

(1,753) $

(151)

Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 As Reported United Kingdom Pro‐Forma As Reported United Kingdom Pro‐Forma

Operating loss Add:	$ (34,063)	(39)	$ (34,024)	$ (11,457)	(628)	$ (10,829) ‐
Depreciation and amortization	4,712	57	4,655	4,355	69	4,286
Stock‐based compensation	2,195	‐	2,195	2,671	‐	2,671
Acquisition and integration costs	2	‐	2	70	‐	70
Restructuring charges	983	14	969	518	‐	518

Impairment of goodwill 27,800 ‐ 27,800 ‐ ‐ ‐

Adjusted EBITDA (1)

$ 1,629

32 $

1,597 $

(3,843)

(559) $

(3,284)

Three Months Ended December 31, 2014 As Reported United Kingdom Pro‐Forma

Operating loss

$ (14,660)

(1,620) $

(13,040)

Add: ‐

Depreciation and amortization 4,799 61 4,738

Stock‐based compensation 2,542 ‐ 2,542

Acquisition and integration costs 35 ‐ 35

Restructuring charges 1,360 38 1,322

Adjusted EBITDA (1)

$ (5,924)

(1,521) $

(4,403)

Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 As Reported United Kingdom Pro‐Forma As Reported United Kingdom Pro‐Forma

Add:				$ (31,452)	(1,628)	$ (29,824)
Depreciation and amortization	14,995	175	14,820	12,595	221	12,374
Stock‐based compensation	6,556	‐	6,556	10,718	‐	10,718
Acquisition and integration costs	12	‐	12	86	‐	86
Restructuring charges	5,571	108	5,463	4,567	‐	4,567

Operating loss

$ (56,376)

(2,186) $

(54,190)

Impairment of goodwill 27,800 ‐ 27,800 ‐ ‐ ‐

Adjusted EBITDA (1)

$ (1,442)

(1,903) $

461 $

(3,486)

(1,407) $

(2,079)

(1) Adjusted EBITDA is defined as net income (loss) from continuing operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock‐based compensation, the effects of accounting for business combinations (including any impairment of acquired intangibles and goodwill), restructuring charges, and other non‐operating income or expense.