- ZipRealty, Inc. Announces Third Quarter Results.EMERVILLE, Calif. -- Explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan Note: This is a corrected version of the press release issued on November 8, 2006 to remedy the disclosure of pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma non-cash income taxes and resulting pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. and pro forma earnings per basic share and per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the three months and the nine months ended September 30, 2006. This correction contains no other changes and does not update the original release for any developments subsequent to November 8, 2006. For each period, the Company reported pro forma earnings per diluted share of $0.07 rather than the actual result of $0.06. The GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial statements attached to the release did not change as a result of this correction. The information was accurately disclosed in the Company's Form 10-Q Form 10-Q See 10-Q. filed on November 9, 2006. ZipRealty, Inc. (Nasdaq: ZIPR) today announced financial results for its third quarter ended September 30, 2006. For the quarter, net revenues were $26.2 million, a 7.3% decrease from the $28.2 million reported in the third quarter of 2005. The Company's net income for the period was $0.6 million, or $0.03 per diluted share compared to net income of $2.9 million or $0.11 per diluted share in the year ago period. On a pro forma basis, earnings per diluted share was $0.06 versus earnings of $0.11 per diluted share in the year ago period. Richard Sommer Sommer is a surname, from the German and Danish word for the season "summer". It may refer to:
Sommer continued, "Having been in the CEO role for slightly more than two months, I can say with confidence that ZipRealty is ideally positioned to succeed in the residential real estate industry. Not only do we have a business model capable of true scale, but our opportunity to win share in the $60 billion dollar residential market is significant. Fortunately, we are fully financed to execute this plan, and although it will take some evaluation and investment, I am confident in the final outcome. Ultimately, by exceeding our client's expectations with each and every transaction, we will materially strengthen our brand, and foster long-term agent and customer loyalty. This, in turn, should accelerate our national success." Gary Beasley, President and Chief Financial Officer, added, "We are currently evaluating our overall market expansion strategy for 2007, but at this time are pleased to announce plans to launch operations in Naples, Florida Naples is a city in Collier County, Florida, USA. As of 1 July 2006, the U.S. Census Bureau estimated the city's population at 21,804.[3] Naples is the County seat of Collier County, and is a Principal City of the Naples-Marco Island, Florida Metropolitan Statistical and Tucson, Arizona Tucson (pronounced /ˈtusɑn/, Spanish: Tucsón [tuk'son] during the first quarter. These are both attractive markets, in states where we currently operate. Therefore, we expect a relatively simple launch process, and financial returns consistent with other recently opened new markets." ZipRealty announced the following operating metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. for the third quarter of fiscal 2006: * At September 30, 2006, 1,747 ZipAgents were employed, up from 1,669 at the end of the second quarter of fiscal 2006 and 1,383 at the end of the third quarter of fiscal 2005. * Total value of real estate transactions closed decreased approximately 11.8% to $1.20 billion from $1.36 billion in the third quarter of 2005. * Number of transactions closed decreased 6.0% to 3,467 from 3,689 during the same period last year. * Average net revenue per transaction was $7,332, representing a 0.6% decrease from $7,375 in the second quarter of 2006, and a 1.9% decrease from $7,475 in the third quarter of 2005. Balance Sheet & Liquidity As of September 30, 2006, the Company had approximately $88.4 million of cash, cash equivalents and short-term investments, representing approximately $3.76 per diluted share, with no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Financial Guidance Based upon current visibility into the fourth quarter, the Company expects full year 2006 revenues to range between $90 and $92.5 million. At this revenue level, reported net loss per share for the full year is expected to be between $0.15 and $0.20 with a corresponding pro forma loss per share range of approximately $0.10 to $0.15. Implicit in Adj. 1. implicit in - in the nature of something though not readily apparent; "shortcomings inherent in our approach"; "an underlying meaning" underlying, inherent this guidance is an estimated fourth quarter revenue range of $18 to $20 million, reported net loss per share of $0.13 to $0.18, and a proforma loss per share of $0.17 to $0.22. During the fourth quarter of fiscal 2005, the Company reversed its valuation allowance on deferred tax assets. Subsequent to this reversal, and the Company's adoption of FAS123(R) effective the first quarter of 2006, the Company currently estimates an effective 2006 income tax rate of approximately 32% will be recorded for book purposes. ZipRealty does not expect to pay material cash taxes until it exhausts its federal and state net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . Use of Non-GAAP Financial Measures To supplement its financial statements presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP, ZipRealty uses a non-GAAP measure of net income (loss) it refers to as "pro forma earnings" that excludes certain items including stock-based compensation charges, non-cash income taxes and one-time items such as the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement expense incurred in 2005. 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 consistent basis for comparison between quarters. Further, this non-GAAP method is the primary basis 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. Conference Call Details A conference call to discuss fiscal third quarter financial results and future guidance will be webcast live on Wednesday, November 8, 2006 at approximately 5:00 p.m. Eastern Time on the investor relations Investor relations The process by which the corporation communicates with its investors. section of ZipRealty's website, www.ziprealty.com. Listeners may also access the call by dialing 800-811-8824. A replay of the conference call will be available through November 15, 2006 by dialing 888-203-1112, password 5435390. About ZipRealty, Inc. ZipRealty is a full-service residential real estate brokerage firm. The Company uses the Internet, proprietary technology and efficient business processes to provide home buyers and sellers with high-quality service and value. Founded in 1999, the Company operates in 20 major metropolitan areas in 12 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The Company's client-centric business strategy utilizes a sophisticated web site, which enables homebuyers and sellers to access comprehensive local Multiple Listing Services home listings data and other relevant information. The Company also utilizes a proprietary business management technology platform, which reduces costs and allows the Company to pass on significant financial savings to consumers. This Internet-enabled, technology-driven, employee-based model provides the Company with a distinct competitive advantage, allowing ZipRealty to consistently deliver outstanding service to clients. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP. Cautionary Language This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the federal securities laws, including, without limitation, statements regarding the Company's future success in the residential real estate industry and nationwide, the scalability of the Company's business model, the Company's opportunity to increase market share, the sufficiency of the Company's financial resources to execute the Company's business plan, the Company's ability to exceed client expectations, strengthen brand and create loyalty, the Company's future expansion and success in new markets, statements under "Financial Guidance" concerning expected revenues and loss per share for the quarter and full year ending December 31, 2006, and statements concerning future treatment of the Company's tax valuation allowance and future tax rates and tax obligations. The 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 a continuing decline in the residential real estate market, including a decline in the number and/or sales prices of homes, the Company's limited operating history and limited profitability, the Company's access to MLS See multilevel security. listings and leads from third parties that it does not control, 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, 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 The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. such as mortgage and insurance, internet content, privacy and other matters as well as rules of real estate industry organizations, competition, seasonality, geographic concentration, use by Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. and personal computer users of more restrictive email filters, and other risk factors set forth in the Company's filings with the SEC, including but not limited to its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006. 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . [TABLE OMITTED] [TABLE OMITTED] |
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