Local Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Fourth Quarter and Year 2014
For the nine months, the company reported revenue of $66,835,000 against $67,591,000 a year ago. Operating loss was $3,610,000 against $3,353,000 a year ago. Loss from continuing operations before income taxes was $5,369,000 against $4,923,000 a year ago. Net loss from continuing operations was $5,466,000 or $0.24 per basic and diluted share against $5,044,000 or $0.22 per basic and diluted share a year ago. Net loss was $5,466,000 or $0.24 per diluted share against $8,683,000 or $0.38 per diluted share a year ago. Net cash provided by operating activities was $6,694,000 against $326,000 a year ago. Capital expenditures were $2,903,000 against $2,379,000 a year ago.
The company now expects 2014 revenue to be in the range of $87 million to $90 million, with the fourth quarter 2014 revenue range of $20 million to $23 million, increasing over the third quarter primarily driven by Network revenue growth. Adjusted EBITDA for 2014 is now expected to be in the range of $2 million to $2.4 million, or between $0.09 per diluted share and $0.10 per diluted share, assuming diluted weighted average shares of 23.5 million and taking into account the dilutive effect of stock options and warrants. Projected 2014 adjusted EBITDA factors: Interest expense of $2.1 million; depreciation expense of $4.0 million; amortization expense of $700,000. The company lowered gross margin outlook to be between 22% and 23% for the year 2014.