TheStreet Inc. Earnings: Turnaround CEO Setting Stage for Growth
TheStreet Inc. (NASDAQ:TST) reported its results for the third quarter. TheStreet, together with its subsidiaries, provides a variety of subscription-based and advertising-supported content and tools through a range of online platforms, including web sites, mobile devices and email services.
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TheStreet Inc. Earnings Cheat Sheet
Results: Loss widened to $4.2 million (13 cents per diluted share) from $1.5 million (loss of 5 cents per share) in the same quarter a year earlier.
Revenue: Fell 19.1% to $11.6 million from the year-earlier quarter.
Quoting Management: “By generating $1.0 million in Adjusted EBITDA, the largest quarterly amount in 2012, we are executing a successful turnaround and setting the stage for growth,” said Elisabeth DeMarse, Chairman, President and Chief Executive Officer. “We continue to focus on cost containment and have a strong control over operating expenses. As a result, we reduced ongoing operating expenses by 20% from Q3 2011 and 4% from Q2 2012. We are guided by our vision of building a profitable media company and continue to invest in our lucrative subscription businesses, including The Deal, and expand our reach into the institutional market. Our unique business model allows us to monetize our free site with subscriptions and advertising.”
Revenue has fallen in the past four quarters. Revenue declined 17% to $12.5 million in the second quarter. The figure fell 9.2% in the first quarter from the year earlier and dropped 2.8% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company’s cost of sales fell 9.2% from a year earlier to $5.7 million. Last quarter, cost of sales was 49.1% of revenue versus 43.8% a year earlier.
The average estimate hasn’t changed from 20 cents per share for the fiscal year.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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