TheStreet Doubles Adjusted EBITDA
NEW YORK (TheStreet) -- TheStreet(TST) , the publisher of this Web site, reported a third-quarter loss of $4.2 million, or 13 cents a share, on Thursday, wider than its year-ago loss of $1.5 million, or 5 cents a share.
The New York City-based digital financial media company said revenue came in at $11.6 million in the latest quarter, down 19% from last year's equivalent total of $14.3 million.
Revenue from the company's subcription services business dipped 9% to $9.1 million, while media revenue dropped 43% year-over-year to $2.5 million.
Excluding a loss of $3.1 million from a restructuring charge and the disposition of assets, TheStreet's net loss from ongoing operations was $1.2 million, 22% narrower than last year's performance.
The latest quarter includes 19 days of operations from The Deal, which TheStreet acquired on Sept. 12.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) improved to $1 million from $500,000 in the same period a year earlier. Other positive metrics during the quarter included an increase of 7.6% in average revenue per user and a jump of 30% in the average monthly unique visitors to TheStreet's network of sites as measured internally.
"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, TheStreet's Chairman, President and Chief Executive Officer, in a statement. "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."
DeMarse continued: "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."
As of Sept. 30, TheStreet reported cash and cash equivalents, restricted cash and marketable securities of $61.5 million. The company said it's continuing the suspension of its quarterly dividend in the fourth quarter of 2012.
The stock closed Thursday's regular session unchanged at $1.64, down 9% in the past year.
--Written by Michael Baron in New York.
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