EX-99.1 2 f8k111209ex99i_adex.htm PRESS RELEASE f8k111209ex99i_adex.htm
Exhibit 99.1
 

AdEx Media, Inc. Announces Strong Revenues for Third Quarter 2009 and Nine Month Results

MOUNTAIN VIEW, Calif., Nov. 12 /PRNewswire-FirstCall/ -- AdEx Media, Inc. (OTC Bulletin Board: ADXM) (the “Company”), a leading performance-driven, online marketing and distribution company, today announced results for the third fiscal quarter ended September 30, 2009.

The Company reported revenues for the third quarter of 2009 of approximately $6.5 million, a 261% increase over revenues of approximately $1.8 million from the same quarter for 2008 and revenues for the nine month period ending September 30, 2009 of approximately $18.2 million, a 469% increase over revenues of approximately $3.2 million for the same period last year.

Net loss to the shareholders for the quarter was approximately $1.2 million, compared with a net loss of approximately $1.3 million in the same quarter for 2008. Net loss for the quarter included approximately $409,000 in stock-based compensation, $26,000 in amortization of acquired intangible assets, and $122,000 in non-cash deemed dividends related to the Company’s recent financing through the sale of convertible series A preferred stock and warrants.

Net loss to the shareholders for the nine months ended September 30, 2009 was approximately $5.6 million, compared with a net loss of approximately of $1.9 million for the same period last year. Net loss for the nine months included approximately $905,000 in stock based compensation, $990,000 in impairment charges of acquired intangible assets, $171,000 in amortization of acquired intangible assets, and $1.1 million in non-cash deemed dividends related to the Company’s financings through the sale of convertible series A preferred stock and warrants.

Scott Rewick, Chief Executive Officer of AdEx, commented, “We are pleased with the strong year over year revenue growth we have posted in the first nine months of this year.” Rewick further stated, “Our significant investment in our technology platform and direct media buying relationships are setting the stage for continued growth into 2010.”

A copy of the September 30, 2009 Balance Sheet and Statements of Operations for the quarters ended September 30, 2009 and 2008 are reproduced below. The Company intends to file its financial statements for the period ended September 30, 2009 on Quarterly Report Form 10-Q with the Securities and Exchange Commission on November 16, 2009.

Corporate milestones and accomplishments during the third quarter of 2009 included:
·  
Strong year over year revenue growth
·  
Nine months revenues of $18.2 million
·  
Gross margin expansion
·  
Expansion of the Think technology platform
·  
Operating efficiencies improved by outsourcing fulfillment and customer service functions moving these functions on a variable cost basis
·  
Additional reduction of fixed payroll expenses by lowering headcount
·  
Expansion of global media buying through direct purchase relationships with Microsoft, AOL and Yahoo

The Company will host an investor conference call on Friday, November 13, 2009, at 11:30 AM Eastern Time to answer questions regarding the results for the three months ended September 30, 2009, reported in our Quarterly Report Form 10-Q. US dialers: (877) 407-8031; International dialers (201) 689-8031.  Interested parties may also listen via the Internet at www.investorcalendar.com. The call will be available for replay for 30 days by dialing (877) 660-6853 (US dialers); (201) 612-7415(International dialers), and entering the replay pass code 286 # and conference ID#337665 and on www.investorcalendar.com.
 

 
 
About AdEx Media, Inc.

AdEx Media, Inc. is an integrated Internet marketing and lead generation publisher and developer, manufacturer, and marketer of consumer products. AdEx both markets and distributes its own products, developed pursuant to strategic partnerships with manufacturers, and offers its third-party advertising customers a multi-channel Internet advertising network and diversified solutions for direct advertisers and agencies. AdEx's marketing platform provides a range of services including (i) search marketing, (ii) display marketing, (iii) lead generation, and (iv) affiliate marketing. AdEx offers advertisers a compelling value proposition by offering true pay-per-performance pricing, commonly known as cost-per-action (CPA) or pay-per-action (PPA).For more information about AdEx Media, visit http://www.AdEx.com.

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as "believes," "belief," "expects," "expect," "intends," "intend," "anticipate," "anticipates," "plans," "plan," to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's filings with Securities and Exchange Commission.
 
ADEX MEDIA, INC. AND SUBSIDIARIES
 
 
(Unaudited)
 
             
   
September 30,
   
December 31,
 
   
2009
   
2008 (a)
 
ASSETS
           
             
Current assets:
           
Cash and cash equivalents
  $ 1,879,547     $ 683,576  
Restricted cash
    100,000       -  
Short-term investments
    570,960       2,502,670  
Accounts receivable, net of allowance for doubtful accounts of $10,960
               
    and $19,737, respectively
    317,202       521,004  
Credit card processor holdbacks, net of reserves of $477,706 and $167,363,
               
   accrued credit card chargeback fees of $120,213 and $57,280, and
               
   accrued credit card fees of $134,143 and zero, respectively
    574,164       243,213  
Inventory, net
    417,123       57,087  
Prepaid expenses and other current assets
    152,986       97,878  
Total current assets
    4,011,982       4,105,428  
                 
Property and equipment, net
    136,465       43,606  
Intangible assets, net
    206,638       1,367,330  
Goodwill
    8,448,789       8,448,789  
                 
Total assets
  $ 12,803,874     $ 13,965,153  
                 
LIABILITITIES AND STOCKHOLDERS' EQUITY
               
                 
Current liabilities:
               
Accounts payable
  $ 1,291,311     $ 929,807  
Accrued liabilities
    1,030,274       536,627  
Warrant  liability
    111,067       -  
Deferred revenue
    29,774       25,709  
Promissory notes
    142,976       401,806  
Total current liabilities
    2,605,402       1,893,949  
                 
Promissory notes
    -       150,000  
Deferred tax liability
    3,652       404,817  
                 
Total liabilities
    2,609,054       2,448,766  
                 
Commitments and Contingencies (Note 14)
               
                 
Stockholders' Equity:
               
Preferred stock; $0.0001 par value; 10,000,000 shares authorized;
               
   2,221,337 shares issued and outstanding at September 30, 2009 for
               
   series A preferred stock and zero at December 31, 2008
  $ 222     $ -  
Common stock, $0.0001 par value; 150,000,000 shares authorized, 32,055,248
               
  and 31,202,347 shares issued and outstanding at September 30, 2009 and
               
  December 31, 2008, respectively
    3,206       3,120  
Additional paid-in capital
    18,098,650       13,808,966  
Accumulated deficit
    (7,907,258 )     (2,295,699 )
Total stockholders' equity
    10,194,820       11,516,387  
                 
Total liabilities and stockholders' equity
  $ 12,803,874     $ 13,965,153  
                 
___________________________
(a) Derived from audited consolidated financial statements.

 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
(Unaudited)
 
                         
   
For The Three Months Ended
   
For The Nine Months Ended
 
   
September 30,
   
September 30,
   
September 30,
   
September 30,
 
   
2009
   
2008
   
2009
   
2008
 
                         
Revenues:
                       
                         
Marketing platform services - external offers
  $ 3,078,563     $ 1,340,935     $ 8,416,063     $ 2,750,264  
Marketing platform services - internal offers
    3,429,139       476,228       9,744,824       476,228  
Total revenues
    6,507,702       1,817,163       18,160,887       3,226,492  
                                 
Cost of revenues:
                               
Marketing platform services - external offers
    2,511,901       1,219,213       6,832,201       2,299,117  
Marketing platform services - internal offers
    1,388,945       127,526       3,296,270       127,526  
Amortization of acquired product licenses
    -       18,795       58,333       18,795  
Total cost of revenues
    3,900,846       1,365,534       10,186,804       2,445,438  
                                 
Gross profit
    2,606,856       451,629       7,974,083       781,054  
                                 
Operating expenses:
                               
Product development
    -       17,300       -       52,550  
Sales and marketing
    2,716,664       1,021,662       9,428,746       1,350,135  
General and administrative
    1,071,825       404,521       2,448,362       955,729  
Amortization of intangible assets
    25,584       22,224       112,525       22,224  
Impairment charges on intangible assets
    -       310,000       989,834       310,000  
                                 
Total operating expenses
    3,814,073       1,775,707       12,979,467       2,690,638  
                                 
Operating loss
    (1,207,217 )     (1,324,078 )     (5,005,384 )     (1,909,584 )
                                 
Other income and expense:
                               
Interest and other (expense) income, net
    (8,170 )     13,489       (7,738 )     45,582  
Mark-to-market gain on warrant liability
    88,786       -       70,248       -  
                                 
Loss before income taxes benefit
    (1,126,601 )     (1,310,589 )     (4,942,874 )     (1,864,002 )
                                 
Income tax benefit
    (1,400 )     (12,923 )     (401,164 )     (12,123 )
                                 
Net loss
    (1,125,201 )     (1,297,666 )     (4,541,710 )     (1,851,879 )
                                 
Deemed dividend to series A preferred stockholders
    (121,500 )     -       (1,069,850 )     -  
                                 
Net loss attributable to common stockholders
  $ (1,246,701 )   $ (1,297,666 )   $ (5,611,560 )   $ (1,851,879 )
                                 
Loss per common share, basic and diluted
  $ (0.04 )   $ (0.04 )   $ (0.18 )   $ (0.12 )
                                 
Weighted average common shares used in computing
                               
basic and diluted loss per common share
    31,871,506       30,388,079       31,648,221       15,443,218  
                                 
                                 
 
 
CONTACT:  Investor Contact: Aimee Boutcher, Boutcher&Boutcher, +1-973-239-2878