SearchCore, Inc. (SRER: OTC Link) | SearchCore Reports Full Year 2011 Results

SearchCore Reports Full Year 2011 Results

Mar 22, 2012

OTC Disclosure News Service

Newport Beach, CA –

Full Year Revenues Increased 256%;

Income from ContinuingOperations Increased 172%

 

Newport Beach,California – March 22, 2012 SearchCore, Inc. (OTCBB: SRER), (OTCQX: SRER), atechnology-based Internet marketing services company that connects consumers with brands, products and services, today announced its consolidated financialresults for the fiscal year ended December 31, 2011.


Fiscal Year 2011 Highlights


 ·        Total revenues were $11.9 million, an increase of 256% over fiscal year 2010.

       ·        EBITDA was $1.8 million, an increase of 216% over fiscal year 2010.

       ·        Operating income was $1.5 million, an increase of 218% over the prior year.

       ·        Income from continuing operations was $1.0 million, an increase of 172% over the prior year.

       ·        Fully diluted income per share from continuing operations was $0.01 for both fiscal years.

 

Management Commentary

 

“We had an exceptionally strong year in 2011,” said Jim Pakulis, CEO of SearchCore,Inc. “Revenues, EBITDA, and operating income all improved significantly.  We generated strong cash flow from operations and we closed the year with a cash balance in excess of $1.5 million. We also made the decision to discontinue operating an unprofitable business segment. I believe Search Core is on very solid ground for another strong year in 2012.”


“I am proud to report that we exceeded both our revenue and profit expectation for2011, which is a credit to the exceptional performance of our subsidiary,WeedMaps Media,” said Doug Francis, President of SearchCore, Inc. “Throughout2011, we carefully allocated our talent and capital resources to building out our technology base within WeedMaps. As a result, we have created a robust technology platform that enables us to continuously enhance our client service and capabilities offering. Equally important, our technology is designed toscale. Looking to the future, we anticipate leveraging our technology platform to create similarly successful finder sites in verticals beyond the cannabis industry.”


Fiscal Year 2011 Financial Results 

SearchCore’s revenues for the year endedDecember 31, 2011 totaled $11.9 million, a year-over-year increase of 256%compared with $3.4 million for the year ended December 31,2010.  The increase in revenues wasprimarily due to anincrease in the number of customers, the number of ‘listing packages’ offeredto customers and the fees charged for the packages.

Total operating expenses were $10.5 million for 2011, or 88% of revenue, as compared with $2.9 million, or 86% of revenue for 2010. The increase in operating expenses was primarily due to higher investments in technology and expenses in support of our business expansion efforts. In addition, non-cash amortization and depreciation expense increased by $0.4 million in 2011 due toour recent acquisitions and expenses associated with moving into new corporate offices. 

EBITDA for 2011 increased 216% to $1.8 million from $0.6 million for 2010. Operating income for 2011 increased 218% to $1.5 million, as compared with $0.5 million for 2010.  

Income from continuing operations increased 172% to $1.0 million, or$0.01 per fully diluted share, for the year ending December 31, 2011, based on83.1 million weighted average shares outstanding.  This compares with income from continuing operations of $0.4 million, or $0.01 per fully diluted share, for the year ended December 31, 2010, based on 28.9 million weighted average shares outstanding.

Net loss was $3.0 million for the year ended December 31, 2011.  This was primarily due to a $4.1 million loss related to the Company’s decision to exit its medical clinic management business, General Health Solutions, Inc.

 

Balance Sheet Overview

At December 31, 2011, SearchCore had cash and equivalents of $1.5 million andtotal debt of $7.1 million as compared with $1.4 million in cash and equivalents and $3.6 million in total debt at December 31, 2010.


About SearchCore, Inc.

SearchCore, Inc., formerly General Cannabis, Inc., is a technology-basedInternet marketing services company that offers customers an integrated suite of services including media, technology, marketing and information. Founded in 2010, SearchCore is headquartered in Newport Beach,California.  The Company’s common stock trades on the OTC market’s highest tier, OTCQX, under the ticker symbol “SRER.”  www.SearchCore.com


Safe Harbor Notice


Certain statements contained herein are “forward-looking statements” (asdefined in the Private Securities Litigation Reform Act of 1995). SearchCore, Inc. cautions that statements made in this news release constituteforward-looking statements and makes no guarantee of future performance.Forward-looking statements are based on estimates and opinions of management atthe time statements are made. These statements may address issues that involvesignificant risks, uncertainties, estimates and assumptions made bymanagement.  Actual results could differ materially from currentprojections or implied results.  SearchCore, Inc. undertakes no obligationto revise these statements following the date of this news release.

 

Company Contact:


SearchCore, Inc.

(855)420-2262
info@searchcore.com


Investor Relations Contact:

KristenMcNally

Financial Profiles, Inc.
(206) 623-2233

searchcore@finprofiles.com

 

 

 

       financial tables to follow – 


 

 

 

SEARCHCORE,INC.

 

ConsolidatedStatements of Operations (Audited)

 

Years Ended

December 31,

  

December 31,

2011

2010

 

 

 

 

REVENUE

Sales

$

11,928,932

$

3,355,878

 

 

 

Total revenue

11,928,932

3,355,878

OPERATING EXPENSES

  

    Cost of sales

 793,789

 365,702

Selling, general and administrative expenses

9,684,963

2,533,659

 

 

 

 

Total operating expenses

10,478,752

2,899,361

 

 

 

 

Operating Income

1,450,180

456,517

Other Income (Expense)

Interest income

 213

 66

Interest expense

 (13,241)

 —

 

 

Total other income (expense)

 

 (13,028)

 

 66

 

 

 

 

INCOME FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES

1,437,152

  

456,583

Provision for Income Taxes

       416,130

          80,914

INCOME FROM CONTINUING OPERATIONS

 

1,021,022

 

375,669

Loss from discontinued operations, net of $133,500 and $18,100 tax

benefit for the years ended December 31, 2011 and 2010, respectively

 

(4,060,367)

 

(25,174)

NET (LOSS) INCOME

$

(3,039,345)

  

$

350,495

 

 

 

 

Income (loss) per share, Basic and Diluted

Income from continuing operations

$

0.012

$

0.013

Loss from discontinued operations

(0.049)

(0.001)

Total income (loss) per share

$

(0.037)

  

$

0.012

 

 

  

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 83,140,256

   

 28,868,864

 

 

 

 

 

 

 

 

 

 

 

 

 

SEARCHCORE,INC.

 

ConsolidatedBalance Sheets (Audited)

 

December 31,

December 31,

2011

2010

 

 

 

 

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

 1,512,590

 $

 1,388,574

Accounts receivable

 206,091

 —

Inventory

 9,830

 —

Other current assets

 379,860

 1,104,337

Current assets – discontinued operations

 

 51,795

 

 —

TOTAL CURRENT ASSETS

$

 2,160,166

$

 2,492,911

Property and equipment, net

 430,041

 2,202

Property and equipment – discontinued operations

 —

 44,966

Intangible assets:

Domain names

 114,119

 9,076

Domain name – Marijuana.com

 4,250,000

 —

Web software

 501,343

 —

Goodwill

 486,403

 —

Intangible assets – discontinued operations

 —

 4,156,835

Other assets

 82,332

 900,000

Other assets – discontinued operations

 51,976

 33,872

 

 

 

 

TOTAL ASSETS

$

 8,076,380

 $

 7,639,862

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable

$

 50,632

 $

 46,757

Accrued liabilities

 759,312

 1,037,670

Note payable

 708,901

 —

Note payable – related party

 1,130,000

 —

Current liabilities – discontinued operations

 243,017

 202,596

 

 

 

 

TOTAL CURRENT LIABILITIES

$

 2,891,862

$

 1,287,023

LONG TERM LIABILITIES

Other accrued liabilities

 155,025

 900,000

Note payable

 3,416,099

 —

Note payable – related party

 1,800,000

 3,600,000

Earn-out provisions, WeedMaps

 18,362,269

 18,362,269

 

 

 

 

TOTAL LONG TERM LIABILITIES

 

 23,733,393

 

 22,862,269

TOTAL LIABILITIES

$

 26,625,255

$

 24,149,292

STOCKHOLDERS’ EQUITY

Preferred stock, $0.001 par value: 20,000,000 shares authorized;

zero shares issued and outstanding at December 31, 2011;

zero shares issued and outstanding at December 31, 2010;

 —

 —

Common stock, $0.001 par value: 200,000,000 shares authorized;

83,140,256 shares issued and outstanding at December 31, 2011;

82,640,256 shares issued and outstanding at December 31, 2010;

 83,140

 82,640

Paid-in capital

 (15,965,044)

 (16,964,444)

Retained earnings (accumulated deficit)

 (2,666,971)

 372,374

 

 

 

 

TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)

 (18,548,875)

 (16,509,430)

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

 8,076,380

$

 7,639,862

 

 

 

 

 

 

 


 

 

 

SEARCHCORE,INC.

 

ConsolidatedStatements of Cash Flows (Audited)

 

Years Ended

December 31,

December 31,

2011

2010

Cash flows from operating activities:

 

 

 

 

Net income from continuing operations

$

 (3,039,345)

$

 350,495

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation

 71,295

 115,319

Amortization

 284,856

 —

Stock-based compensation

 —

 87,777

Loss on abandonment

 4,142,835

 —

Changes in operating assets and liabilities:

Accounts receivable

 (206,091)

 —

Inventories

 (9,830)

 —

Prepaid expenses and deposits

 672,682

 878,670

Other assets

 54,589

 —

Accounts payable and accrued liabilities

 (234,062)

 (62,161)

 

 

 

 

          Net cash provided by operating activities

 1,736,929

 1,370,100

 

 

 

 

Cash flows from investing activities:

  Purchases of property and equipment

 (454,168)

 (211,781)

  Purchases of intangible assets

 (488,746)

 (327,834)

 

 

 

 

          Net cash used in investing activities

(942,913)

 (539,615)

 

 

 

 

Cash flows from financing activities:

  Proceeds from issuance of common stock

 —

 1,650,000

  Payments from note payable

 —

 (40,000)

  Payments from convertible notes

 —

 (419,392)

  Convertible note related party

 —

 (211,489)

  Payments on note payable – related party

 (670,000)

 (437,543)

 

 

 

 

          Net cash used by financing activities

(670,000)

 541,576

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 124,016

 1,372,061

Cash and cash equivalents at beginning of period

 1,388,574

 16,513

 

 

 

 

Cash and cash equivalents at end of period

$

1,512,590

$

1,388,574

 

 

 

 

Non-cash investing and financing activity:

Issuance of warrants to consultants

 

 —

 

 250,000

Shares issued pursuant to Revyv acquisition

$

 500,000

$

 —

Shares issued pursuant to consulting agreement

$

 —

$

 50,000

 

 

 

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/SRER/news?id=44038

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