TheStreet Inc【TST】株式ニュース

TheStreet, Inc. Reports Fourth Quarter and Full Year 2017 Results
Date : 03/05/2018 @ 4:48PM
Source : PR Newswire (US)
Stock : Thestreet, Inc. (TST)
Quote : 1.66 0.15 (9.93%) @ 8:00PM

TheStreet, Inc. Reports Fourth Quarter and Full Year 2017 Results

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NEW YORK, March 5, 2018 /PRNewswire/ --

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Net income attributable to common stockholders for the fourth quarter and full year 2017 totaled $25.6 million and $25.0 million, respectively, as compared to a net loss of $11.6 million and $17.5 million, respectively, for the same periods last year.
Diluted net income attributable to common shareholders totaled $0.58 per share and $0.66 per share for the fourth quarter and full year 2017, respectively, as compared to a net loss of $0.33 per share and $0.50 per share, for the same periods last year.
Adjusted EBITDA of $2.8 million and $8.0 million for the fourth quarter and full year 2017, respectively, increased $1.6 million and $5.2 million, respectively, as compared to the same periods last year.
Revenue increased $0.1 million to $16.0 million in the fourth quarter 2017 compared to the fourth quarter 2016. Revenue decreased $1.0 million for the 2017 full year to $62.5 million as compared to the same periods in 2016, an improvement from the decrease in revenue of $4.2 million in 2016 compared to 2015.
Operating expense improved $1.4 million and $5.2 million year over year for the fourth quarter and full year ended 2017, respectively, as compared to the same period last year (excluding the goodwill impairment recorded in 2016 and restructuring and other charges recorded in the periods).
Cash, cash equivalents, restricted cash and marketable securities of $13.9 million decreased $9.6 million as compared to December 31, 2016 resulting primarily from the extinguishment of the Series B Preferred Stock in November 2017.
TheStreet, Inc. (Nasdaq: TST) a leading financial news and information company, today reported financial results for the fourth quarter and full year ended December 31, 2017.

For the fourth quarter of 2017, the company reported total revenue of $16.0 million, an increase of $0.1 million from the year prior. Net income for the quarter was $3.2 million, which represents the third consecutive quarter in 2017 where the company reported net income. Adjusted EBITDA (1) for the fourth quarter of 2017 was $2.8 million.

For the full year 2017, the company reported revenue of $62.5 million, a decrease of $1.0 million, or 1.6%, from $63.5 million in the prior year. Net income for the year was $2.6 million, which represents the first reported full year net income for the company since 2008. Adjusted EBITDA for full year 2017 was $8.0 million.

"I'm pleased to announce that the turnaround we started in 2016 and throughout the past year led to net income both including and excluding the unusual benefits and one-time charges for both the fourth quarter and the full year," said David Callaway, President and CEO. "This is the first full year of net income since before the financial crisis. Combined with the retirement of our preferred stock in November and the support of new and existing shareholders, we now have the flexibility to extend the turnaround momentum into 2018."

On November 10, 2017 the company announced that it had exchanged all shares of its Series B Preferred Stock for 6,000,000 shares of the company's Common Stock and $20,000,000 cash. As a result of the retirement of the Series B Preferred Stock in the fourth quarter, the Company recorded a $22.4 million capital contribution attributable to preferred stockholders resulting in fully diluted net income to common shareholders of $0.58 per share and $0.66 for the fourth quarter and full year 2017, respectively, as compared to a loss of $0.33 per share and $0.50 per share during the same periods last year. Excluding the capital contribution attributable to preferred stockholders, goodwill impairment in 2016 and other restructuring charges recorded in both years, the Company recorded fully diluted net income attributable to common stockholders of $0.08 per share for the fourth quarter 2017 and $0.08 per share for the full year 2017 as compared to a net income of $0.01 attributable to common stockholders and a net loss of $0.09 attributable to common stockholders for the fourth quarter and full year of 2016, respectively.

Fourth quarter and full year 2017 net income reflects declines in cost of services and sales and marketing and depreciation and amortization expense and lower full year general and administrative expenses. This is partially offset by restructuring expense totaling $0.3 million and $0.5 million, for the fourth quarter and full year 2017, respectively. Drivers of the fourth quarter and full year 2016 net loss are a non-cash goodwill impairment in the amount of $11.6 million, an additional non-cash depreciation charge of $1.5 million, restructuring charges related to severance as well as lower premium subscription revenue, all partially offset by a $1.8 million non-cash contingent consideration reduction from the purchase of Management Diagnostics Limited ("MDL").

Fourth Quarter Results

Business-to-business ("B2B") revenue, which includes BoardEx, The Deal and RateWatch, totaled $8.3 million for the fourth quarter, up $0.9 million or 12% as compared to the fourth quarter of 2016. Business-to-consumer ("B2C") revenue was $7.6 million for the fourth quarter 2017, down $0.8 million, or 10%, compared to the fourth quarter of 2016. B2B revenue continues to grow, comprising 52% of total revenue for the fourth quarter of 2017.

Operating expenses for the fourth quarter of 2017 were $15.1 million as compared to $28.2 million for the fourth quarter of 2016. Operating expense for the fourth quarter of 2017 includes $0.3 million of severance charges. The fourth quarter of 2016 includes an $11.6 million non-cash goodwill impairment, a cumulative adjustment of a non-cash depreciation charge of $1.5 million and a non-cash reduction of a contingent consideration of $1.8 million from the purchase of MDL in 2014 (collectively "Charges"), severance of $1.4 million, partially offset by the reversal of $0.7 million recorded in Q1 2016 as a one-time sales tax provision. In 2016, the Company also recorded a goodwill impairment charge related to a series of acquisitions made in 2012 and 2014 that have since produced results that were lower than expected at the time of the acquisitions. In addition, the company took measures to reduce costs and incurred a $1.4 million severance related charge. Excluding the 2017 severance and 2016 Charges, severance and reversal of the one-time sales tax provision, operating expenses for the fourth quarter 2017 decreased $1.4 million as compared to the fourth quarter of 2016.

Net income of $3.2 million for the fourth quarter of 2017 was an increase of $14.9 million from the prior year period. Excluding the Charges and one-time costs recorded during the periods, net income was $3.5 million for the fourth quarter 2017, an increase of $3.1 million over the same quarter last year. Adjusted EBITDA for the fourth quarter of 2017 was $2.8 million compared to $1.2 million from the prior year period. The increase in Adjusted EBITDA primarily resulted from strong B2B revenue growth, partially offset by the decline in B2C subscription revenue and lower operating expenses from cost controls instituted over the last year.

The Company reversed its UK operations tax valuation allowance of $1.9 million during the fourth quarter of 2017 due to positive earnings as well as a favorable profit outlook of its UK business and recorded a tax credit related to the recently enacted federal tax reform of $0.7 million.

Business-to-Business Revenue

B2B revenue for the fourth quarter of 2017 was $8.3 million, an increase of $0.9 million, or 12%, compared to the fourth quarter of 2016. Year over year revenue growth resulted primarily from increased subscription and information service revenue in the BoardEx and RateWatch businesses. In addition, The Deal also had higher year over year revenue in advertising and events for the fourth quarter 2017. Revenue growth also resulted from FX gains of $0.1 million during the quarter. This was partially offset by lower subscription income of $0.1 million in The Deal.

Business-to-Consumer Revenue

B2C revenue for the fourth quarter of 2017 was $7.6 million, a decrease of $0.8 million, or 10%, from $8.5 million in the fourth quarter of 2016. B2C subscription revenue for the fourth quarter of 2017 was $4.9 million, a decrease of $0.5 million, or 9%, from $5.3 million in the fourth quarter of 2016. This decrease primarily related to a 12% decline in the weighted-average number of subscriptions offset by a 3% increase in the average revenue recognized per subscription. Average monthly churn (2) improved to 4.04% for the fourth of 2017 from 4.21% for the fourth quarter of 2016. B2C advertising revenue also declined $0.5 million, or 17% primarily from the lower advertising generated by repeat advertisers. This was partially offset by higher event revenue which resulted from a highly successful "Teach-In" event hosted by Jim Cramer during the quarter.

Full Year Results

B2B revenue for the full year 2017 totaled $31.5 million, up $2.1 million or 7% from the prior year. Exchange rate changes related to the Pound sterling, negatively impacted BoardEx revenue by $0.2 million for the full year 2017. Adjusted for the negative impact of FX, total B2B revenue increased 8%. Growth of $2.0 million and $0.5 million in BoardEx and RateWatch, respectively, was partially offset by a decline of $0.4 million in The Deal (primarily in subscription revenue).

B2C revenue was $31.0 million, down 9%, compared to the prior year. The full year revenue decline resulted primarily in premium newsletter which declined $2.9 million year over year primarily from a 14% decline in the number of subscriptions partially offset by a 1% increase in average rate per subscriber. B2C advertising revenue of $9.5 million also declined $0.3 million as compared to full year 2016.

Operating expenses for the full year 2017 were $61.8 million, a decrease of $18.9 million, or 23%, from $80.7 million in the prior year. Operating expense for the full year of 2017 includes $0.6 million of restructuring and severance related charges. Excluding the 2017 restructuring and severance expense and the 2016 Charges mentioned in the Fourth Quarter Results above, along with other 2016 one-time expenses including severance of $1.6 million, restructuring charges of $1.0 million and a one-time sales tax expense of $0.7 million, operating expenses for full year 2017 decreased by $5.2 million, or 8%, as compared to the same period of the prior year. The $5.2 million reduction in operating expense primarily resulted from lower employee compensation and related benefits, outside freelance costs, change in the utilization of advertising and promotion along with savings in other general operating costs. Savings were partially offset by fluctuations of FX rates. Net income for the full year 2017 was $2.6 million compared to a net loss $17.5 million in the prior year.

With the retirement of the Company's Series B Preferred Stock in November 2017, the company recorded a capital contribution attributable to preferred stockholders of $22.4 million resulting in a diluted net income attributable to common shareholders of $0.66 per share for full year 2017, as compared to a net loss to common shareholders of $0.50 per share for the prior year period. Adjusted EBITDA for the full year 2017 was $8.0 million compared to $2.8 million for the prior year.

Cash on hand

Net cash provided by operating activities for the full year ending December 31, 2017 totaled $6.0 million, up $8.7 million as compared to the same period during the prior year. The increase in net cash provided by operating activities was primarily the result of the change in our net income (loss) between periods, net of the 2016 goodwill impairment and change in the fair value of contingent consideration, change in the balance of deferred revenue and accounts receivable, partially offset by the change in the balance of accrued expenses and accounts payable. Increased cash from operating activities, lower year over year capital expenditures of approximately $1.2 million and proceeds received from the common stock PIPE with 180 Degree Capital Corp. was offset by the $20.9 million payment related to the extinguishment of the Series B preferred stock and related costs. As a result, the Company ended the year with cash and cash equivalents, restricted cash and marketable securities of $13.9 million, as compared to $23.4 million at December 31, 2016.

Conference Call Information

TheStreet will discuss its financial results for the fourth quarter and full year ending December 31, 2017 on March 6, 2018 at 8:30 a.m. EDT.

To participate in the call, please dial 866-548-4713 (domestic) or 323-794-2093 (international). The conference code is 1986342. This call is being webcast and can be accessed on the Investor Relations section of TheStreet website at. http://investor-relations.thestreet.com/events.cfm

A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.

About TheStreet

TheStreet, Inc. (NASDAQ: TST, www.t.st) is a leading financial news and information provider to investors and institutions worldwide. The Company's flagship brand, TheStreet (www.thestreet.com), has produced unbiased business news and market analysis for individual investors for more than 20 years. The Company's portfolio of institutional brands includes The Deal (www.thedeal.com), which provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control; BoardEx (www.boardex.com), a relationship mapping service of corporate directors and officers; and RateWatch (www.rate-watch.com), which supplies rate and fee data from banks and credit unions across the U.S.

Non-GAAP Financial Information

(1) To supplement the Company's financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company also uses "EBITDA" and "Adjusted EBITDA", non-GAAP measures of certain components of financial performance. "EBITDA" is adjusted from results based on GAAP to exclude interest, income taxes, depreciation and amortization. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes that the non-GAAP EBITDA results are an important indicator of the operational strength of the Company's business and provide an indication of the Company's ability to service debt and fund acquisitions and capital expenditures. EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation of tangible assets and amortization of certain intangible assets that were recognized in business combinations. "Adjusted EBITDA" further eliminates the impact of non-cash stock compensation, impairment charges, restructuring, transaction related costs, severance and other charges affecting comparability. A limitation of these measures, however, is that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's businesses. Management evaluates the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budgets and investment spending levels. "Free cash flow" means net income/loss plus non-cash expenses net of gains/losses on dispositions of assets, less changes in operating assets and liabilities and capital expenditures. The Company believes that this non-GAAP financial measure is an important indicator of the Company's financial results because it gives investors a view of the Company's ability to generate cash.

(2) Average monthly churn is defined as subscriber terminations/expirations in the quarter divided by the sum of the beginning subscribers and gross subscriber additions for the quarter, and then divided by three. Subscriptions that are on a free-trial basis are not regarded as added or terminated unless the subscription is active at the end of the free-trial period.

TheStreet Reports Fourth Quarter & Full Year 2013 Results

FY 2013 Revenue of $54.5M, up 7.4%, with Adjusted EBITDA(1) of $2.1M

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PR Newswire
TheStreet, Inc.
19 hours ago

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NEW YORK, Feb. 27, 2014 /PRNewswire/ -- TheStreet, Inc. (TST), a leading digital financial media company, today reported financial results for the fourth quarter and full year 2013. For the fourth quarter, the Company reported revenue of $14.8 million, net income of $213 thousand and Adjusted EBITDA of $1.6 million. For the full year, the Company reported revenue of $54.5 million, net loss of $3.8 million and Adjusted EBITDA of $2.1 million.

"Two years into our multi-year plan of building a profitable twenty-first century media company, TheStreet's 2013 performance demonstrates that our strategy is working. We are pleased to have exceeded our annual revenue expectations of $53-$54 million," said Elisabeth DeMarse, Chairman, President and Chief Executive Officer. "In 2014, we will continue to focus on growing subscriptions across our institutional and retail platforms, as well as improving user experience on our free site. With financial markets near record highs and M&A activity heating up, we anticipate increased interest from retail and institutional audiences for our 'must-have' actionable insights," concluded DeMarse.

Fourth Quarter Results
Revenue in the fourth quarter of 2013 was $14.8 million, an increase of 7.1% from $13.8 million in the prior year period. Subscription Services revenue in the fourth quarter was $11.4 million, an increase of 9.7% compared to the prior year period. The increase in Subscription Services revenue was primarily due to organic growth in subscription newsletters and The Deal, as well as revenues from the DealFlow acquisition. Media revenue in the fourth quarter was $3.4 million, a decrease of 0.9% compared to the prior year period.

Operating expenses in the fourth quarter were $14.6 million, a decrease of 8.9% compared to the prior year period. Excluding restructuring and other charges and gain on disposition of assets, operating expenses decreased 5.9% compared to the prior year period.

Net income in the fourth quarter was $213 thousand compared to a net loss of $2.2 million in the prior year period. The Company reported basic and diluted net income per share attributable to common stockholders of $0.01 in the fourth quarter of 2013 compared to a net loss per share of $0.07 in the prior year period. Adjusted EBITDA was $1.6 million in the fourth quarter compared to $453 thousand in the prior year period.

Full Year Results
Revenue for the full year 2013 was $54.5 million, an increase of 7.4% from $50.7 million in the prior year. Subscription Services revenue for the full year was $43.5 million, an increase of 17.2% compared to the prior year. The increase in Subscription Services revenue was primarily due to the acquisitions of The Deal and DealFlow. Media revenue for the full year was $10.9 million, a decrease of 19.7% from the prior year.

Operating expenses for the full year were $58.4 million, a decrease of 8.4% compared to the prior year. Excluding restructuring and other charges and gain/loss on disposition of assets, operating expenses increased 0.8% compared to the prior year.

Net loss for the year was $3.8 million compared to a net loss of $12.7 million in the prior year. The Company reported basic and diluted net loss per share attributable to common stockholders of $0.11 for the full year compared to a net loss per share of $0.38 for the prior year. Adjusted EBITDA for the full year was $2.1 million compared to $1.3 million for the prior year.

The company generated $2.5 million in operating cash flow for year ended December 31, 2013, compared to the use of $6.2 million in operating cash flow for the prior year. The Company ended the year with cash and cash equivalents, restricted cash and marketable securities of $59.8 million.

Selected Operating Metrics
•For total Subscription Services: •Bookings were $11.6 million for the fourth quarter, an increase of 6.6% from the prior year period.
•Bookings for the full year were $45.0 million, which includes the impact of acquisitions, compared to $36.6 million in the prior year.

•For Subscription Newsletters(2): •The number of paid subscriptions at the end of the period was 78,400, an increase of 20.9% from the prior year and 5.3% sequentially.
•Average revenue per user for the fourth quarter decreased 10.1% compared to the prior period and 3.2% sequentially.
•Average monthly churn was 2.3% for the fourth quarter, compared to 2.7% in the prior year period and 2.1% in the third quarter(3).

Conference Call Information

TheStreet will discuss its financial results for the fourth quarter today at 4:30 p.m. ET.

To participate in the call, please dial (800) 649-5127 (domestic) or (914) 495-8549 (international). The Conference ID number is 2948072. This call is being webcast and can be accessed in the Investor Relations section of TheStreet website at
http://investor-relations.thestreet.com/events.cfm.

A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available for approximately ninety calendar days.

About TheStreet

TheStreet, Inc. (www.t.st) is the leading independent digital financial media company providing business and financial news, investing ideas and analysis to personal and institutional investors worldwide. The Company's portfolio of business and personal finance brands includes: TheStreet, RealMoney, RealMoney Pro, Stockpickr, Action Alerts PLUS, Options Profits, MainStreet and RateWatch. To learn more, visit www.thestreet.com. The Deal, the Company's institutional business, provides intraday coverage of mergers and acquisitions and all other changes in corporate control. To learn more, visit www.thedeal.com.

TheStreet, Inc. Logo.
TheStreet, Inc. Logo.

Non-GAAP Financial Information

(1) To supplement the Company's financial statements presented in accordance with generally accepted accounting principles ("GAAP"), the Company uses non-GAAP measures of certain components of financial performance, including "EBITDA," "Adjusted EBITDA" and "free cash flow." EBITDA is adjusted from results based on GAAP to exclude interest, income taxes, depreciation and amortization. This non-GAAP measure is provided to enhance investors' overall understanding of the Company's current financial performance and its prospects for the future. Specifically, the Company believes that the non-GAAP EBITDA results are an important indicator of the operational strength of the Company's business and provide an indication of the Company's ability to service debt and fund acquisitions and capital expenditures. EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation of tangible assets and amortization of certain intangible assets that were recognized in business combinations. Adjusted EBITDA further eliminates the impact of non-cash stock compensation, restructuring, transaction related costs and other charges affecting comparability. A limitation of these measures, however, is that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's businesses. Management evaluates the investments in such tangible and intangible assets through other financial measures, such as capital expenditure budgets and investment spending levels. "Free cash flow" means net loss plus non-cash expenses net of gains/losses on dispositions of assets, less changes in operating assets and liabilities and capital expenditures. The Company believes that this non-GAAP financial measure is an important indicator of the Company's financial results because it gives investors a view of the Company's ability to generate cash.

(2) Subscription newsletters includes investing newsletters and excludes subscriptions from The Deal, DealFlow Media and Rate Watch.

(3) Average monthly churn rate is defined as subscriber terminations/expirations in the quarter divided by the sum of the beginning subscribers and gross subscriber additions for the quarter, then divided by three. Subscriptions that are on a free-trial basis are not regarded as added or terminated unless the subscription is active at the end of the free-trial period.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the impact of the Company's restructuring, growth initiatives and expectations for 2014. Such forward-looking statements are subject to risks and uncertainties, including those described in the Company's filings with the Securities and Exchange Commission ("SEC") that could cause actual results to differ materially from those reflected in the forward-looking statements. Factors that might contribute to such differences include, among others, economic downturns and the general state of the economy, including the financial markets and mergers and acquisitions environment, our ability to drive revenue, and increase or retain current subscription revenue, our ability to optimize our free site and generate new subscription revenue; our ability to successfully integrate The Deal and other acquisitions; our ability to develop new products; competition and other factors set forth in our filings with the SEC, which are available on the SEC's website at www.sec.gov. All forward-looking statements contained herein are made as of the date of this press release. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results or occurrences. The Company disclaims any obligation to update these forward-looking statements, whether as a result of new information, future developments or otherwise.

Contacts:
John Ferrara
Chief Financial Officer
TheStreet, Inc.
212-321-5234
ir@thestreet.com

Erica Mannion
Investor Relations
Sapphire Investor Relations, LLC
415-471-2700
ir@thestreet.com

THESTREET, INC.

CONSOLIDATED BALANCE SHEETS

ASSETS

December 31, 2013

December 31, 2012

Current Assets:

Cash and cash equivalents

$ 45,443,759

$ 23,845,360

Marketable securities

9,426,875

18,096,091

Accounts receivable, net of allowance for doubtful

accounts of $202,207 at December 31, 2013 and $165,294 at

December 31, 2012

4,502,344

5,750,753

Other receivables

299,687

1,134,142

Prepaid expenses and other current assets

1,167,029

1,450,742

Restricted cash

139,750

-

Total current assets

60,979,444

50,277,088

Property and equipment, net of accumulated depreciation

and amortization of $16,035,351 at December 31, 2013

and $14,633,037 at December 31, 2012

4,400,404

5,672,000

Marketable securities

3,670,860

17,298,227

Other assets

21,800

69,957

Goodwill

27,997,286

25,726,239

Other intangibles, net of accumulated amortization of $6,994,772

at December 31, 2013 and $6,699,283 at December 31, 2012

10,662,983

11,190,557

Restricted cash

1,161,250

1,301,000

Total assets

$ 108,894,027

$ 111,535,068

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$ 2,352,521

$ 3,813,955

Accrued expenses

4,338,423

5,921,152

Deferred revenue

22,122,763

21,080,759

Other current liabilities

957,741

632,618

Total current liabilities

29,771,448

31,448,484

Deferred tax liability

288,000

288,000

Other liabilities

4,671,421

4,340,749

Total liabilities

34,730,869

36,077,233

Stockholders' Equity:

Preferred stock; $0.01 par value; 10,000,000 shares

authorized; 5,500 shares issued and 5,500 shares

outstanding at December 31, 2013 and December 31, 2012;

the aggregate liquidation preference totals $55,000,000 as of

December 31, 2013 and December 31, 2012

55

55

Common stock; $0.01 par value; 100,000,000 shares

authorized; 41,058,246 shares issued and 34,044,339

shares outstanding at December 31, 2013, and 39,855,468

shares issued and 33,027,752 shares outstanding at

December 31, 2012

410,582

398,555

Additional paid-in capital

273,861,536

270,943,151

Accumulated other comprehensive income

(178,183)

(128,994)

Treasury stock at cost; 7,013,907 shares at December 31, 2013

and 6,827,716 shares at December 31, 2012

(12,364,460)

(11,974,261)

Accumulated deficit

(187,566,372)

(183,780,671)

Total stockholders' equity

74,163,158

75,457,835

Total liabilities and stockholders' equity

$ 108,894,027

$ 111,535,068

THESTREET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended December 31,

For the Year Ended December 31,

2013

2012

2013

2012

Net revenue:

Subscription services

$ 11,369,956

$ 10,364,766

$ 43,549,359

$ 37,149,143

Media

3,431,147

3,461,299

10,901,052

13,571,660

Total net revenue

14,801,103

13,826,065

54,450,411

50,720,803

Operating expense:

Cost of services

6,824,032

7,051,806

27,431,566

24,886,142

Sales and marketing

3,809,192

3,318,426

14,453,465

13,395,328

General and administrative

2,988,348

3,395,043

12,218,964

13,637,895

Depreciation and amortization

1,006,253

1,771,650

3,768,536

5,512,299

Restructuring and other charges

-

549,995

385,610

6,589,792

(Gain) loss on disposition of assets

-

(27,000)

187,434

(232,989)

Total operating expense

14,627,825

16,059,920

58,445,575

63,788,467

Operating income (loss)

173,278

(2,233,855)

(3,995,164)

(13,067,664)

Net interest income

39,579

57,497

209,463

352,713

Net income (loss)

212,857

(2,176,358)

(3,785,701)

(12,714,951)

Preferred stock cash dividends

-

-

-

192,848

Net income (loss) attributable to common stockholders

$ 212,857

$ (2,176,358)

$ (3,785,701)

$ (12,907,799)

Basic net income (loss) per share:

Net income (loss)

$ 0.01

$ (0.07)

$ (0.11)

$ (0.38)

Preferred stock cash dividends

-

-

-

(0.01)

Net income (loss) attributable to common stockholders

$ 0.01

$ (0.07)

$ (0.11)

$ (0.39)

Diluted net income (loss) per share:

Net income (loss)

$ 0.01

$ (0.07)

$ (0.11)

$ (0.38)

Preferred stock cash dividends

-

-

-

(0.01)

Net income (loss) attributable to common stockholders

$ 0.01

$ (0.07)

$ (0.11)

$ (0.39)

Weighted average basic shares outstanding

33,936,814

32,893,274

33,725,317

32,710,018

Weighted average diluted shares outstanding

34,704,620

32,893,274

33,725,317

32,710,018

Net income (loss)

$ 212,857

$ (2,176,358)

$ (3,785,701)

$ (12,714,951)

Net interest income

(39,579)

(57,497)

(209,463)

(352,713)

Depreciation and amortization

1,006,253

1,771,650

3,768,536

5,512,299

EBITDA

1,179,531

(462,205)

(226,628)

(7,555,365)

Restructuring and other charges

-

549,995

385,610

6,589,792

Stock based compensation

465,946

566,308

1,681,988

2,198,713

(Gain) loss on disposition of assets

-

(27,000)

187,434

(232,989)

Transaction related costs

(20,000)

(174,342)

121,118

344,305

Adjusted EBITDA

$ 1,625,477

$ 452,756

$ 2,149,522

$ 1,344,456

THESTREET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year Ended December 31,

2013

2012

Cash Flows from Operating Activities:

Net loss

$ (3,785,701)

$ (12,714,951)

Adjustments to reconcile net loss to net cash provided by (used in)

operating activities:

Stock-based compensation expense

1,681,988

2,198,713

Provision for doubtful accounts

81,392

329,870

Depreciation and amortization

3,768,536

5,512,299

Restructuring and other charges

393,195

1,396,695

Deferred rent

(322,533)

(319,958)

Noncash barter activity

20,000

183,270

Loss (gain) on disposition of assets

187,434

(232,989)

Changes in operating assets and liabilities:

Accounts receivable

1,450,605

1,125,158

Other receivables

951,116

(677,601)

Prepaid expenses and other current assets

296,012

(294,567)

Other assets

(6,675)

39,556

Accounts payable

(1,463,684)

1,116,374

Accrued expenses

(1,384,257)

(2,519,154)

Deferred revenue

517,882

(1,100,272)

Other current liabilities

114,950

(240,830)

Other liabilities

(21,908)

24,000

Net cash provided by (used in) operating activities

2,478,352

(6,174,387)

Cash Flows from Investing Activities:

Purchase of marketable securities

-

(41,151,130)

Sale and maturity of marketable securities

22,247,394

34,812,021

Capital expenditures

(1,118,679)

(1,327,746)

Proceeds from the disposition of assets

71,881

249,300

Purchase of assets from DealFlow Media, Inc.

(1,764,716)

-

Purchase of The Deal, LLC

-

(5,430,063)

Net cash provided by (used in) investing activities

19,435,880

(12,847,618)

Cash Flows from Financing Activities:

Cash dividends paid on common stock

-

(1,636,236)

Cash dividends paid on preferred stock

-

(192,848)

Proceeds from the exercise of stock options

74,366

-

Proceeds from the sale of common stock

-

135,000

Restricted cash

-

660,370

Shares withheld on RSU vesting to pay for withholding taxes

(390,199)

(964,112)

Net cash used in financing activities

(315,833)

(1,997,826)

Net increase (decrease) in cash and cash equivalents

21,598,399

(21,019,831)

Cash and cash equivalents, beginning of period

23,845,360

44,865,191

Cash and cash equivalents, end of period

$ 45,443,759

$ 23,845,360

Supplemental disclosures of cash flow information:

Cash payments made for interest

$ -

$ 30,028

Noncash investing and financing activities:

Stock issued for business combination

$ 780,863

$ -

Net loss

$ (3,785,701)

$ (12,714,951)

Noncash expenditures

5,810,012

9,067,900

Changes in operating assets and liabilities

454,041

(2,527,336)

Capital expenditures

(1,118,679)

(1,327,746)

Free cash flow

$ 1,359,673

$ (7,502,133)