HomeSeekers.com Quarterly Revenues Reach All-time High of $4.4 Million; Quarterly Revenues Increase 20% Sequentially.
RENO, Nev.--(BUSINESS WIRE)--Nov. 14, 2000
HomeSeekers.com, Incorporated (NASDAQ:HMSK) today announced financial results for its fiscal first quarter ended September 30, 2000.
Revenues for the quarter reached an all-time high of $4.4 million, representing sequential growth of 20% from the revenues of $3.7 million reported for the quarter ended June 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 Greg Costley, "Based on preliminary results, we believe that we will show an estimated improvement of 20% to 25% in operating expenses for the current December 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, 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 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 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. 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 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(R) convention, we feel that the eBay agreement holds significant potential for us."
HomeSeekers.com will host its conference call on Tuesday, November 14 at 4:30 pm EST. 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 at www.vcall.com.
First Quarter Highlights
IRIS, LLC 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 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 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 entries in the "Picture Perfect Getaway Contest."
Multi-year XMLSweb(TM) Contract Signed with Northern Illinois
In early October we announced the signing of a multi-year XMLSweb(TM) contract with Multiple Listing Service of Northern Illinois (MLSNI). 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 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. The agreement calls for the Westchester MLS to utilize our web-based XMLSweb(TM) MLS product. This agreement follows on the contract that we signed in May of this year with another New York MLS, the Mid-Hudson Multiple Listing Service.
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 of Inc., are "entrepreneurial superstars."
New York City 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 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, 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" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding reductions in operating expense 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 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 ============ ============