ZipRealty, Inc. (Nasdaq: ZIPR) today announced financial results
for its third quarter ended September 30, 2008. For the quarter,
net revenues were $31.4 million, an 11.9% increase from the $28.0
million reported in the third quarter of 2007. The Company�s net
loss for the period was $1.7 million, or $0.08 per share compared
with a net loss of $4.8 million or $0.21 per share in the year ago
period. The pro forma loss per share, excluding the effect of
stock-based compensation and a one-time item in the third quarter
of 2007, was $0.03 for the current quarter compared with $0.02 net
loss per share for the same period a year ago. Pat Lashinsky,
President and CEO of ZipRealty, commented, �Third quarter closed
transactions increased 31%, driving double digit revenue gains
versus the prior period. Credit, especially access to jumbo
mortgages, continued to be restrained and combined with a sharp
increase in non-traditional transactions, average transaction
values declined significantly. That said, volume trends are very
encouraging as they signal the continued turnover of foreclosed
properties, something that is critical for a market turn. Strong
volumes also bode well for our longer term outlook as transaction
values ultimately rebound. We believe recent government actions
intended to support the banking system, along with the Housing and
Economic Recovery Act signed into law in July, are tangible steps
in that direction and we look forward to continued penetration and
acceptance of our brand.� ZipRealty announced the following
operating metrics for the third quarter of 2008: At September 30,
2008, there were 2,814 ZipAgents employed, up from 2,263 agents at
the end of the third quarter 2007. On a sequential quarterly basis,
agent count increased by 255 from June 30, 2008. The total value of
real estate transactions closed increased to approximately $1.36
billion in the third quarter of 2008 versus $1.24 billion for the
same period in 2007. The total number of transactions closed
increased approximately 31.1% to 5,019, compared to 3,829 in the
third quarter last year. Average net revenue per transaction
decreased approximately 13.8% to $6,130 from $7,110 in the third
quarter of 2007. Balance Sheet & Liquidity As of September 30,
2008, the Company had approximately $51.9 million of cash, cash
equivalents and short-term investments, with no long-term debt. Use
of Non-GAAP Financial Measures To supplement its financial
statements presented in accordance with Generally Accepted
Accounting Principles (�GAAP�), ZipRealty uses a non-GAAP measure
of net income (loss) it refers to as �pro forma net income (loss)�
that excludes certain items including stock-based compensation,
non-cash income taxes, and certain one-time items, if any. A
reconciliation of this non-GAAP measure to GAAP is provided in the
attached tables. These non-GAAP adjustments are provided to enhance
the user's overall understanding of ZipRealty�s current financial
performance and its prospects for the future. ZipRealty believes
these non-GAAP results provide useful information to both
management and investors by excluding certain items it believes are
not indicative of its core operating results and thus presents a
more meaningful basis for comparison between periods. Further, this
non-GAAP method involves key information management uses for
planning and forecasting its future operations. The presentation of
this additional information should not be considered in isolation
or as a substitute for results prepared in accordance with GAAP.
Financial Guidance The Company�s expectations for the business have
changed from its original guidance communicated in March, and
revised in May 2008 to reflect a stock buy-back. Although the
Company planned expansion to two to four new markets in 2008,
expansion will be limited to the two markets already opened this
year, Long Island, New York and Hartford, Connecticut.
Additionally, the Company is refining the following metrics: The
Company now expects revenues for the full year to be $107.0 to
$109.0 million. The Company now expects to report a full year GAAP
net loss of between $11.1 and $12.1 million, or $0.53 to $0.58 per
basic and diluted share, based on 20.9 million shares outstanding.
This full year GAAP net loss reflects the effect of a gain to be
recognized in the fourth quarter as the result of settling a
lawsuit. The Company reached this settlement in October, expects to
receive payment of $3.2 million during the fourth quarter, and, net
of legal fees, will recognize a gain in the amount of $1.9 million.
The Company now expects the range of pro forma net loss to be
between $8.5 and $9.5 million, or $0.41 to $0.45 per basic and
diluted share based on 20.9 million shares outstanding. Conference
Call Details A conference call to discuss third quarter results
will be webcast live on Wednesday, November 5, 2008 at 5:00 p.m.
Eastern Time on the investor relations section of ZipRealty�s
website, www.ziprealty.com. Listeners may also access the call by
dialing 877-502-9273. A replay of the conference call will be
available through November 12, 2008 by dialing 888-203-1112,
password 8794608. About ZipRealty, Inc. ZipRealty is a full-service
residential real estate brokerage firm. The Company utilizes its
user-friendly website and employee real estate agents to provide
homebuyers and sellers with high-quality service and value.
ZipRealty�s website provides users with access to comprehensive
local Multiple Listing Services home listings data, as well as
other relevant market and neighborhood information. The Company�s
proprietary business management system and technology platform help
to reduce costs, allowing the Company to pass on significant
savings to consumers. Founded in 1999, the company operates in 35
major markets in 20 states and the District of Columbia. For more
information on ZipRealty, visit www.ziprealty.com or call
1-800-CALL-ZIP. Cautionary Language This release contains
forward-looking statements within the meaning of the "safe harbor"
provisions of the federal securities laws, including, without
limitation, statements that volume trends are encouraging and
signal the continued turnover of foreclosed properties; that strong
volumes bode well for our longer term outlook; that transaction
values will rebound; that our brand will continue to gain
acceptance; and that recent government actions intended to support
the banking system, along with the Housing and Economic Recovery
Act signed into law in July, are tangible steps in that direction.
Forward looking statements also include the Company�s anticipated
revenues, and GAAP and pro forma net losses for 2008 included under
the heading �Financial Guidance.� Forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those projected. The risks and
uncertainties include but are not limited to the current volatility
in the United States, as well as global, financial markets,
significant financial market declines (and reduction in individual
net worth), rising unemployment, and the effectiveness, or lack
thereof, of governmental policies to stabilize such markets, and
mitigate the impact on world-wide economies and increasing
unemployment. Additional risk factors include the Company�s limited
operating history and limited profitability, the Company�s access
to MLS listings and leads from third parties that it does not
control, a continuing decline and volatility in the residential
real estate market, including a decline in the number and/or sales
prices of homes, economic events or trends in housing prices,
interest rates, the newness and scalability of the Company�s
business model, the Company�s ability to hire, retain and train
qualified agents and key personnel, legal challenges to the
Company�s compensation plans, including expense policies, under
federal and state wage and hour laws, the Company�s ability to
manage growth in terms of personnel, expansion into new markets,
information and control systems and legal restrictions, the
Company�s ability to comply with often complex federal and state
laws and regulations concerning real estate brokerage, other core
services such as insurance, internet content, privacy and other
matters as well as rules of real estate industry organizations,
competition, management transitions, use by Internet service
providers and personal computer users of more restrictive email
filters, seasonality, geographic concentration, and other risk
factors set forth in the Company's Form 10-K for fiscal year 2007,
and other filings with the SEC including our quarterly Form 10-Qs
and periodic Form 8-Ks. The forward-looking statements included in
this release are made as of today�s date and, except as otherwise
required by law, ZipRealty does not intend to update these
forward-looking statements to reflect events or circumstances after
the date hereof. � ZipRealty, Inc. Consolidated Statements of
Operations (unaudited) (in thousands, except per share amounts and
operating data) � � Three Months Ended Nine Months Ended September
30, September 30, 2008 � 2007 2008 � 2007 � Net transaction
revenues $ 30,769 $ 27,225 $ 80,760 $ 80,406 Referral and other
revenues � 583 � � 804 � � 1,640 � � 2,286 � Net revenues � 31,352
� � 28,029 � � 82,400 � � 82,692 � � Operating expenses Cost of
revenues 17,911 15,637 47,409 46,024 Product development 2,217
1,835 6,487 5,329 Sales and marketing 10,341 9,630 30,895 28,306
General and administrative 3,124 3,357 9,744 11,782 Litigation � -
� � 3,550 � � 625 � � 3,550 � Total operating expenses � 33,593 � �
34,009 � � 95,160 � � 94,991 � � Loss from operations � (2,241 ) �
(5,980 ) � (12,760 ) � (12,299 ) � Other income (expense), net
Interest income 546 1,147 2,061 3,329 Other income, net � 1 � � 2 �
� 75 � � 2 � Total other income (expense), net � 547 � � 1,149 � �
2,136 � � 3,331 � � Loss before income taxes (1,694 ) (4,831 )
(10,624 ) (8,968 ) � Provision for income taxes � - � � - � � - � �
- � � Net loss $ (1,694 ) $ (4,831 ) $ (10,624 ) $ (8,968 ) � � Net
loss per share: Basic $ (0.08 ) $ (0.21 ) $ (0.50 ) $ (0.40 )
Diluted $ (0.08 ) $ (0.21 ) $ (0.50 ) $ (0.40 ) � Weighted average
common shares outstanding: Basic 20,007 22,629 21,185 22,421
Diluted 20,007 22,629 21,185 22,421 � Supplemental operating data
(unaudited) Number of ZipAgents at beginning of period 2,559 2,070
2,180 1,794 Number of ZipAgents at end of period 2,814 2,263 2,814
2,263 � Total value of real estate transactions closed during
period (in billions) $ 1.36 $ 1.24 $ 3.57 $ 3.69 � Number of
transactions closed during period (1) 5,019 3,829 12,821 10,927 �
Average net revenue per transaction during period (2) $ 6,130 $
7,110 $ 6,299 $ 7,359 � (1) The term "transaction" refers to each
representation of a buyer or seller in a real estate purchase or
sale. (2) Average net revenue per transaction equals net
transaction revenues divided by number of transactions with respect
to each period. � Pro forma net income (loss) and pro forma net
income (loss) per share Pro forma net income (loss) and pro forma
net income (loss) per share have been computed to give effect to
excluding stock-based compensation expense, non-cash income taxes,
and certain one-time items, if any. Management believes that pro
forma net income (loss) for the three and nine months ended
September 30, 2008 and 2007 provides useful information to
investors because it excludes the impact of items it believes are
not indicative of its core operating results and thus presents a
more consistent basis for comparison between periods. � Three
Months Ended Nine Months Ended September 30, September 30, 2008
2007 2008 2007 GAAP net loss as reported $ (1,694 ) $ (4,831 ) $
(10,624 ) $ (8,968 ) Stock-based compensation 1,014 867 2,900 2,862
Non-cash income taxes - - - - One-time item; litigation settlement
� - � � 3,550 � � 625 � � 3,550 � Pro forma net income (loss) $
(680 ) $ (414 ) $ (7,099 ) $ (2,556 ) � Pro forma net income (loss)
per share: Basic $ (0.03 ) $ (0.02 ) $ (0.34 ) $ (0.11 ) Diluted $
(0.03 ) $ (0.02 ) $ (0.34 ) $ (0.11 ) � Pro forma weighted average
common shares outstanding: Basic 20,007 22,629 21,185 22,421
Diluted 20,007 22,629 21,185 22,421 � ZipRealty, Inc. Consolidated
Balance Sheets (unaudited) (in thousands) � � � September 30,
December 31, 2008 2007 Assets Current assets: Cash and cash
equivalents $ 12,458 $ 7,818 Short-term investments 39,467 72,649
Accounts receivable, net of allowance 2,588 1,170 Prepaid expenses
and other current assets � 3,029 � � 3,267 � � Total current assets
57,542 84,904 � Restricted cash 130 90 Property and equipment, net
4,771 5,366 Intangible assets, net 96 119 Other assets � 681 � �
340 � � Total assets $ 63,220 � $ 90,819 � � � Liabilities and
Stockholders' Equity Current liabilities: Accounts payable $ 2,558
$ 2,095 Accrued expenses and other current liabilities � 7,884 � �
10,495 � � Total current liabilities 10,442 12,590 � Other
long-term liabilities � 456 � � 503 � � Total liabilities � 10,898
� � 13,093 � � � Stockholders' equity: Common stock: $0.001 par
value; 23,683 and 23,651 shares issued and 20,176 and 23,641
outstanding, respectively 24 24 Additional paid-in capital 147,665
144,499 Common stock warrants 4 209 Deferred stock-based
compensation - (3 ) Accumulated other comprehensive income (loss)
(79 ) 188 Accumulated deficit (77,765 ) (67,141 ) Treasury stock at
cost: 3,506 and 10 shares, respectively � (17,527 ) � (50 ) Total
stockholders' equity � 52,322 � � 77,726 � � Total liabilities and
stockholders' equity $ 63,220 � $ 90,819 �
Ziprealty (MM) (NASDAQ:ZIPR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ziprealty (MM) (NASDAQ:ZIPR)
Historical Stock Chart
From Jul 2023 to Jul 2024