ServiceMagic 2011 Annual Report Download - page 44

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Operating loss decreased by $33.8 million to $13.7 million despite the increase in Operating Income Before Amortization loss described
above, primarily due to the inclusion in 2010 of goodwill and indefinite-lived intangible asset impairment charges related to Shoebuy of
$28.0 million and $4.5 million, respectively. Further contributing to the decrease in operating loss are decreases of $1.0 million in amortization
of intangibles, exclusive of the impairment charge, and $0.4 million in non-cash compensation expense.
For the year ended December 31, 2010 compared to the year ended December 31, 2009
Revenue increased 30% to $219.9 million reflecting the contribution from Notional and Electus, which were not in the full prior year
period, and growth at Pronto, Shoebuy, CollegeHumor and Vimeo. Also impacting revenue is the inclusion in 2010 of revenue associated with
profit participations related to our interests in Reveille.
Operating Income Before Amortization loss decreased by $7.7 million to a loss of $12.0 million. Losses decreased due primarily to
$10.1 million in cost savings related to certain businesses that have been sold or shutdown and $2.9 million in profit participations related to our
interests in Reveille noted above, partially offset by Electus, which is not in the full prior year period, and increased operating expenses
associated with The Daily Beast.
Operating loss increased by $25.5 million to $47.5 million despite the decrease in Operating Income Before Amortization loss described
above, primarily due to goodwill and indefinite-lived intangible asset impairment charges related to Shoebuy of $28.0 million and $4.5 million,
respectively. Also contributing to the increase in operating loss is an increase of $0.6 million in amortization of intangibles, exclusive of the
impairment charge noted above.
Corporate
For the year ended December 31, 2011 compared to the year ended December 31, 2010
Operating Income Before Amortization loss decreased by $1.4 million to a loss of $62.8 million reflecting $5.3 million in transaction
expenses in 2010 related to the Liberty Exchange, partially offset by higher compensation and other employee-related costs.
Operating loss increased $1.8 million to $149.2 million despite the decrease in Operating Income Before Amortization loss described
above, due to an increase of $3.2 million in non-cash compensation expense. The increase in non-
cash compensation expense is primarily related
to equity grants issued subsequent to 2010 and the impact of the cancellation and acceleration of certain equity awards during the second and
third quarters of 2011, respectively, partially offset by awards becoming fully vested.
For the year ended December 31, 2010 compared to the year ended December 31, 2009
Operating Income Before Amortization loss decreased by $1.3 million to a loss of $64.2 million primarily due to lower depreciation and
salary expense, partially offset by $5.3 million in transaction expenses in 2010 related to the Liberty Exchange.
Operating loss increased $13.6 million to $147.3 million despite the decrease in Operating Income Before Amortization loss described
above, due to an increase of $14.9 million in non-cash compensation expense. The increase in non-cash compensation expense is primarily
related to an increase in expense attributable to awards granted subsequent to the second quarter of 2009, partially offset by awards having
become fully vested.
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