HomeSeekers.com Quarterly Revenues Reach All-time High of $4.4 Million; Quarterly Revenues Increase 20% Sequentially.Business EditorsRENO Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. , Nev.--(BUSINESS WIRE)--Nov. 14, 2000 HomeSeekers.com, Incorporated (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :HMSK) today announced financial results for its fiscal first quarter ended September September: see month. 30, 2000. Revenues for the quarter reached an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high of $4.4 million, representing sequential growth of 20% from the revenues of $3.7 million reported for the quarter ended June June: see month. 30, 2000. The September 2000 revenues represent an increase of 206% from the revenues of $1.4 million in the quarter ended September 30, 1999. The net loss for the September 2000 quarter was $.39 per share, or $8.7 million, a reduction in the per share loss of 44%, compared to the net loss for the June 2000 quarter of $.70 per share or $11.9 million. The net loss for the September 1999 quarter was $.17 per share, or $2.6 million. Cash used in operations for the September 2000 quarter was $.21 per share, or $4.8 million, compared to the June 2000 quarter of $.27 per share, or $4.6 million. The cash used in operations for the September 1999 quarter was $.21 per share, or $3.1 million. Commented HomeSeekers.com Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Costley, "Based on preliminary results, we believe that we will show an estimated improvement of 20% to 25% in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the current December December: see month. 2000 quarter compared to the September 2000 quarter. "We have identified and are evaluating funding opportunities as we aggressively pursue our plan to raise sufficient capital to fund operations. That plan includes efforts to obtain equity or debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , together with the possible sale of assets. The amount that we have targeted to raise is in the range of $4 million to $8 million. It is our feeling that, based on current assumptions, we believe that this amount should be sufficient to fund our plan to achieve positive operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. by the end of this fiscal year. "We are pleased with the revenue that we achieved in this quarter, which came principally from our software solutions targeted at real estate professionals, e.g., our websites, IRIS Iris, in Greek mythology Iris (ī`rĭs), in Greek mythology, goddess of the rainbow; daughter of Electra and Thaumas. She was often represented as a messenger of Zeus and Hera. and Formulator products. In addition to the record setting revenues reported for the quarter, our deferred revenues increased by 10%, driven by the strength of sales at our newly acquired IRIS operation, together with increases in our XMLSweb(TM) service contracts. We continue to focus on working towards realizing the combined strength of our software solutions for real estate professionals, which range from our recent acquisitions; including the IRIS agent productivity tools, Formulators' electronic forms and Connect2Call's communications services; combined with our established agent websites/webpages and our XMLSweb(TM) Multiple Listing Service solution." Continued Costley, "Of course, we are extremely excited about our just-announced relationship with eBay (eBay, Inc., San Jose, CA, www.ebay.com) The major auction service on the Web. eBay popularized the concept of buying and selling online, and both individuals and commercial enterprises list items for sale. . Under this three-year agreement we will work with eBay to increase the listings shown on eBay Real Estate, while offering real estate professionals enhanced access to eBay, the world's leading on-line trading community. As a part of the agreement, eBay received warrants to purchase 1.2 million shares of HomeSeekers common stock at an exercise price of $1.50 per share. The warrants have a term of one year and we have agreed to register the underlying shares of common stock for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. under the Securities Act. We are in the process of working with eBay regarding site development and establishing the marketing plan, which will be targeted at real estate professionals. We anticipate that the program will be launched in the first quarter of calendar 2001. Based on the initial level of interest that we experienced at last weekend's National Association of Realtors The National Association of Realtors (NAR) is made up of residential and commercial realtors who are brokers, salespeople, property managers, appraisers, and counselors, and others working in the real estate industry. (R) convention, we feel that the eBay agreement holds significant potential for us." Conference Call HomeSeekers.com will host its conference call on Tuesday, November 14 at 4:30 pm EST EST electroshock therapy. EST abbr. electroshock therapy . Interested parties may participate in the call by dialing 1-800-633-8757 approximately 10 minutes before the call is scheduled to begin. International participants may dial in on 1-303-248-0303. A replay will be available one hour after the completion of the conference call for one week by dialing 1-800-633-8284 for domestic calls and 1-858-812-6440 for international calls. The reservation number is 16927547. This conference call replay may also be viewed for 48 hours through Vcall on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.vcall.com. First Quarter Highlights IRIS, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control Acquisition During the quarter, we acquired IRIS, LLC, a leading real estate productivity software firm. IRIS equips agents and brokers with tools targeted at assisting them to compete and grow their business in the electronic real estate arena. The IRIS group of products includes the Lightning 2000 MLS See multilevel security. access connectivity product, Lightning Flyers, and the popular Lightning CMA-Plus software suite. IRIS has produced and marketed products that connect to all of the leading MLS systems serving the industry since 1992. We feel that the addition of the IRIS technology will provide us with opportunities to increase our customer base and allow us to provide additional key tools and technologies to keep our real estate professional customers at the leading edge. ResortSeekers' "The Picture Perfect Getaway Perfect Getaway, the 12th installment of the Hardy Boys Casefiles paperback series was published in 1988. The plot involves Frank and Joe going undercover in the South American jungle, pursuing an embezzler. Contest" In conjunction with our ResortSeekers.com website, we announced "The Picture Perfect Getaway Contest" a four-month online contest for realtors and consumers featuring vacation prizes and our donation of ten free websites for charities in the state that produces the highest percentage of realtor Realtor In the United States a designation used to describe a member of the National Association of Realtors (NAR). Notes: The term "realtor" is a registered trademark and encompasses agents, brokers and associates who are members of a real-estate firm associated with entries in the "Picture Perfect Getaway Contest." Subsequent Events Multi-year XMLSweb(TM) Contract Signed with Northern Illinois For the university, see Northern Illinois University Northern Illinois is a region generally covering the northern third of the U.S. state of Illinois. Economics In early October we announced the signing of a multi-year XMLSweb(TM) contract with Multiple Listing Service of Northern Illinois (MLSNI MLSNI Multiple Listing Service of Northern Illinois ). This agreement calls for MLSNI to utilize HomeSeekers' XMLSweb(TM) product to serve its real estate professionals. MLSNI represents approximately 28,700 real estate agents operating in the greater Chicago area. We will provide those real estate professionals with a parallel MLS system for Internet connectivity. Additional Growth in XMLSweb(TM) Installations in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State We signed a multi-year technology agreement with the Westchester, New York Multiple Listing Service, serving approximately 5,000 agents in Westchester and Putnam counties Putnam County is the name of 9 counties in the United States of America, many of which are named for Israel Putnam, who was a hero in the French and Indian War and a general in the American Revolutionary War:
IRIS Operation Named One of the Fastest-Growing Companies Our recently acquired IRIS operation was named one of the fastest-growing companies in the country by Inc. magazine. The Inc. 500 issue, dated October 17, 2000 provides an exclusive report on the companies and CEO's who, in the estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. of Inc., are "entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. superstars This article is about the televised sports competition. For other uses, see Superstar. Superstars is an all-around sports competition that pits elite athletes from different sports against one another in a series of athletic challenges resembling a decathlon. ." New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Listing Management Services Deal We signed a multi-year agreement with Deco, LLC, a company comprised of major real estate brokers in New York City, to provide ongoing real estate listing management technology and related services. Members of the Deco group include leading New York City real estate firms Douglas Elliman, LLC and Corcoran Group, Inc. This agreement marks the first cooperative listings management service to be provided in New York City and we believe that it will act as an outstanding example of the strength, flexibility and adaptability a·dapt·a·ble adj. Capable of adapting or of being adapted. a·dapt  a·bil of our XMLSweb(TM) MLS
product. The Deco system will initially serve approximately 1,500 agents
with an average of 10,000 active listings.eBay and HomeSeekers.com Team Up As discussed earlier, we have teamed with eBay, the world's leading online trading community An online trading community exists to provide its members with a structured method for trading, bartering, or selling goods or services. These communities often have forums and chatrooms designed to facilitate communication between the members. , to jointly create a new advertising mechanism targeted at enabling brokers and agents to prominently position their home listings in the real estate section of eBay. We have begun the work on site development and marketing plans, with the anticipated launch of the program scheduled for the first quarter of 2001. About HomeSeekers.com, Incorporated HomeSeekers.com, Incorporated is a leading provider of technology to the real estate industry The company provides technology solutions and services targeted to brokers, agents, Multiple Listing Services (MLS), builders, consumers and others involved in real estate. Product and services offerings can be viewed at the company's primary website, http://www.homeseekers.com. This press 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 Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 regarding reductions in operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. improvement, expectations as to the amount of additional cash needed to execute the Company's current business plan and continue operations, future results of operations and market opportunities that are based on the Company's current expectations, assumptions, estimates and projections about the Company and its industry. These forward-looking statements involve risks and uncertainties, including the following: (1) the Company's plans, strategic objectives, expectations and intentions are subject to change at any time at the discretion of management and the Board of Directors; (2) the Company's plans and results of operations will be affected by its ability to manage any growth and working capital and its ability to finance future operations, none of which is assured; and (3) the Company's business is highly competitive and the success of existing or new competitors in the markets in which the Company competes could adversely affect the Company's plans and results of operations. The Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2000 and Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2000 identify various risk factors that may affect the Company's actual results and may cause actual results to differ materially from that expressed in or implied by any forward-looking statement. Additional factors are discussed from time to time in the Company's filings with the Securities and Exchange Commission.
HOMESEEKERS.COM, INCORPORATED
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
Sept. 30, June 30,
2000 2000
--------- ---------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 1,483 $ 2,078
Accounts receivable, net
of allowance for
uncollectible accounts of
$162 and $141 1,408 1,023
Accounts and notes
receivable, related
parties 151 159
Prepaid expenses 810 897
-------- --------
Total current assets 3,852 4,157
Investments, net of
valuation allowance of
$2,462 and $3,153 2,207 3,535
Investment in foreign
affiliate 6,895 7,517
Property and equipment, net 3,385 4,163
Purchased intangible assets,
net of accumulated
amortization of $6,524 and
$4,150 21,317 20,531
Other assets 307 123
-------- --------
$ 37,963 $ 40,026
======== ========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $ 1,905 $ 1,570
Accrued payroll and other
liabilities 1,559 1,479
Liability under purchase
agreement 1,500 1,500
Long-term obligations,
current portion 322 99
Deferred revenue 4,554 4,162
-------- --------
Total current
liabilities 9,840 8,810
Long-term liabilities
Long-term obligations 261 153
Deferred revenue 948 862
-------- --------
Total long-term
liabilities 1,209 1,015
Commitments and contingencies
Stockholders' equity
Common stock, $.001 par;
50,000,000 shares
authorized; 23,404,735
and 21,433,210 shares
issued and outstanding 23 21
Additional paid in capital 76,798 72,113
Accumulated deficit (49,626) (40,960)
Note receivable from
officer (320) (320)
Accumulated other
comprehensive income
(loss) 39 (653)
-------- --------
Total stockholders'
equity 26,914 30,201
-------- --------
$ 37,963 $ 40,026
======== ========
HOMESEEKERS.COM, INCORPORATED
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
FOR THE QUARTERS ENDED SEPTEMBER 30, 2000 and 1999
(Amounts in thousands, except share and per share data)
(Unaudited)
2000 1999
------------ ------------
Revenues $ 4,414 $ 1,443
Cost of revenues 2,925 369
------------ ------------
Gross profit 1,489 1,074
Operating expenses 9,330 3,825
------------ ------------
Loss from operations (7,841) (2,751)
Other income (expense):
Interest expense (21) (1)
Interest income 21 --
Other, net (823) 114
------------ ------------
(823) 113
------------ ------------
Net loss (8,664) (2,638)
Other comprehensive income 692 --
------------ ------------
Total comprehensive loss $ (7,972) $ (2,638)
============ ============
Basic and diluted net loss
per common share $ (.39) $ (.17)
============ ============
Shares used in computing
basic and diluted
per share data 22,393,483 15,136,676
============ ============
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