Enom 2012 Annual Report Download - page 67

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62
professional fees primarily related to our public company compliance initiatives and business acquisitions, a $1.9 million
increase in facilities and rent expense for additional office space and a $1.0 million increase in depreciation expense. The
stock-based compensation expense for the year ended December 31, 2011 included a one-time charge of $4.6 million related to
certain stock awards vesting on certain conditions related to our initial public offering. As a percentage of revenue, general and
administrative costs increased 350 basis points to 18.3% during the year ended December 31, 2011 compared to 14.8% during
the same period in 2010.
Amortization of Intangibles
2012 compared to 2011. Amortization expense for the year ended December 31, 2012 decreased by $6.5 million, or 14%,
to $40.7 million compared to $47.2 million in the same period in 2011. The decrease was primarily due to $5.9 million of
accelerated amortization expense in the year ended December 31, 2011 compared to $2.1 million in the year ended December
31, 2012 resulting from our election to remove certain content assets from service in conjunction with improvements to our
content creation and distribution platform. The remaining movement is mainly due to a reduction in amortization expense of
media content related to the reduction in investment levels in 2012 compared to previous years as well as a reduction from fully
amortized intangible assets acquired in business acquisitions in prior years, partially offset by incremental amortization expense
of approximately $1.0 million in 2012 compared to 2011 relating to the four business acquisitions completed throughout 2011.
As a percentage of revenue, amortization of intangible assets decreased 380 basis points to 10.7% during the year ended
December 31, 2012 compared to 14.5% during the same period in 2011 as a result of the increase in revenue and the factors
listed above.
2011 compared to 2010. Amortization expense for the year ended December 31, 2011 increased by $13.4 million, or 40%,
to $47.2 million compared to $33.8 million in the same period in 2010. The increase was primarily due to a $15.5 million
increase in amortization of media content which resulted from our increased investment in our content library during 2011
compared to 2010, $5.9 million of accelerated amortization expense resulting from our election to remove certain content assets
from service in the fourth quarter of 2011 in conjunction with improvements to our content creation and distribution platform
and incremental amortization expense of $1.4 million in the period arising from acquisitions completed in 2011. Offsetting this
was a decrease of $3.5 million in the amortization of certain intangible assets primarily acquired via acquisitions in prior years
that are now fully amortized. As a percentage of revenue, amortization of intangible assets increased 120 basis points to 14.5%
during the year ended December 31, 2011 compared to 13.3% during the same period in 2010 as the result of the factors listed
above.
Interest Income
Interest income for the year ended December 31, 2012 and 2011, respectively, changed by less than $0.1 million compared
to the same period in the prior year.
Interest Expense
2012 compared to 2011. Interest expense for the year ended December 31, 2012 decreased by $0.2 million compared to
the same period in 2011 primarily due to a one-time acceleration of the unamortized debt issuance costs following the
replacement of our credit facility in the third quarter of 2011.
2011 compared to 2010. Interest expense for the year ended December 31, 2011 increased by $0.2 million compared to
the same period in 2010 primarily due to a one-time acceleration of the unamortized debt issuance costs following the
replacement of our credit facility in the third quarter of 2011.
Other Income (Expense), Net
2012 compared to 2011. Other income (expense), net for the year ended December 31, 2012 decreased by $0.3 million to
$(0.1) million of expense compared to $(0.4) million in the same period in 2011. The decrease in other income (expense) net
during the year ended December 31, 2012 was primarily a result of a non-recurring $0.3 million of expense in 2011 related to
the change in the value of our preferred stock warrants which were recorded at fair value with changes in value recorded in
earnings through the closing date of our initial public offering.
2011 compared to 2010. Other income (expense), net for the year ended December 31, 2011 increased by $0.1 million to
$(0.4) million of expense compared to $(0.3) million in the same period in 2010. The increase in other income (expense) net
during the year ended December 31, 2011 was primarily a result of the change in the value of our preferred stock warrants