Enom 2014 Annual Report Download - page 35

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The following selected consolidated financial data should be read in conjunction with “Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes included
elsewhere in this Annual Report on Form 10-K.
Year ended December 31,
2014(1) 2013(1) 2012(1) 2011(1) 2010
(In thousands, except per share data)
Consolidated Statements of Operations:
Total revenue ........................................................
.
$ 172,429 $ 209,411 $ 207,640 $ 164,307 $ 113,700
Operating expenses:
Service costs (exclusive of amortization of
intangible assets) ................................................
.
43,325 51,274 54,304 45,360 32,589
Product costs ......................................................
.
26,058 9,882 - - -
Sales and marketing............................................
.
20,046 36,275 38,948 31,978 18,993
Product development ..........................................
.
29,387 32,185 31,190 29,024 19,760
General and administrative .................................
.
50,179 53,014 54,082 52,491 31,696
Goodwill impairment charge(2) ...........................
.
232,270 - - - -
Amortization of intangible assets .......................
.
38,316 36,519 32,402 37,665 22,566
Total operating expenses .................................
.
439,581 219,149 210,926 196,518 125,604
Loss from operations .............................................
.
(267,152) (9,738) (3,286 ) (32,211) (11,904)
Interest income ...................................................
.
328 5 31 48 22
Interest expense ..................................................
.
(4,692) (1,642) (622 ) (861) (688)
Other income (expense), net ...............................
.
654 13 (36 ) (385) (319)
Loss from continuing operations before income
taxes ....................................................................
.
(270,862) (11,362) (3,913 ) (33,409) (12,889)
Income tax benefit (expense)(2)...........................
.
14,713 (2,856) (951 ) (2,181) (2,449)
Net loss from continuing operations ...................
.
(256,149) (14,218) (4,864 ) (35,590) (15,338)
Net income (loss) from discontinued
operations(3) ........................................................
.
(11,208) (5,956) 11,040 17,066 10,013
Net income (loss) ...............................................
.
(267,357) (20,174) 6,176 (18,524) (5,325)
Cumulative preferred stock dividends(4) .............
.
- - - (2,477) (33,251)
Net income (loss) attributable to common
shareholders ........................................................
.
$ (267,357) $ (20,174) $ 6,176 $ (21,001) $ (38,576)
Earnings per share - basic and diluted
Net loss from continuing operations ...................
.
$ (13.66) $ (0.80) $ (0.28 ) $ (2.26) $ (5.68)
Net income (loss) from discontinued operations (0.60) (0.34) 0.65 1.09 3.71
Net income (loss) per share - basic and diluted $ (14.26) $ (1.14) $ 0.37 $ (1.18) $ (1.97)
Weighted average number of shares - basic (5)(6)(7) 18,745 17,707 16,910 15,729 2,702
(1) We completed one business acquisition during the year ended December 31, 2014, two business acquisitions during the year ended December 31, 2013, one
business acquisition during the year ended December 31, 2012, and four business acquisitions during the year ended December 31, 2011.
(2) During the year ended December 31, 2014, we recorded a pretax impairment charge of $232.3 million on the carrying value of our goodwill based on the results
of an interim assessment of impairment of the goodwill in our content and media reporting unit. We performed our annual impairment analysis in the fourth
quarter of the year ended December 31, 2014, and based on the results of the annual impairment test there were no additional goodwill impairment charges for the
year ended December 31, 2014. This resulted in a reduction of tax amortization of goodwill from the impairment of goodwill and the corresponding valuation
allowance.
(3) Discontinued operations for the periods presented relate to the reclassification of the Rightside operations to discontinued operations during 2014.
(4) In connection with our initial public offering, all shares of our convertible preferred stock converted into shares of common stock and warrants.
(5) In October 2010, our stockholders approved a 1-for-2 reverse stock split of our outstanding common stock, and a proportional adjustment to the existing
conversion ratios for each series of preferred stock, which was effected in January 2011. Accordingly, all share and per share amounts for all periods presented
prior to the reverse stock split have been adjusted retrospectively, where applicable, to reflect this reverse stock split and adjustment of the preferred stock
conversion ratio.
(6) In June 2014, our stockholders approved a 1-for-5 reverse stock split of our outstanding common stock, which was effected in August 2014. Accordingly, all share
and per share amounts for all periods presented prior to the reverse stock split have been adjusted retrospectively, where applicable, to reflect this reverse stock
split.