HomeSeekers.com Reports 224% Revenue Increase In Fiscal 2000.Business Editors/Hi-Tech Writers RENO 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) Oct. 6, 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 the fiscal year ended June June: see month. 30, 2000. Revenues grew to $11.1 million, a 224% increase over the $3.4 million reported in the prior year ended June 30, 1999. Cash used in operations for the year increased 197%, to $12.5 million compared to $4.2 million in the prior year. The per share cash used in operations for fiscal 2000 increased by 55% to $.73 per share compared to $.47 per share in fiscal 1999. Revenue for the fourth quarter ended June 30, 2000 was $3.7 million, an increase of 362% compared to $0.8 million for the fourth quarter of the prior year, and an increase of 9% from $3.4 million in the third quarter of 2000. The cash used in operations for the fourth quarter amounted to $4.6 million, compared to $1.9 million in the prior year and $2.9 million in the prior quarter. The per share cash used in operations for the fourth quarter of fiscal 2000 amounted to $.27, compared to $.19 in the fourth quarter of 1999 and $.18 in the third quarter of fiscal 2000. To be consistent with evolving 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 accounting practices, the Company has reevaluated the recognition of revenue in connection with certain fiscal year 2000 advertising and marketing agreements. As a result, revenues previously reported in the second and third quarters of fiscal 2000 have been reduced, and operating results restated. The net effect of these adjustments is a reduction in revenues in prior periods, which will result in revenues being recognized in future periods or offset against expenses. Revenues for the second quarter were reduced from $2.7 million to $2.6 million and revenues for the third quarter were reduced from $4.3 to $3.4 million. The net loss for the second quarter was restated from $5.0 million to $4.8 million and net loss for the third quarter was restated from $5.1 million to $5.7 million. "Revenue recognition accounting for Internet companies is emerging and is receiving increased attention," stated 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. and Chairman Greg Costley. "We took a hard look at our revenue recognition policies, and took the steps we considered to be necessary to comply with the new requirements. Inasmuch as in·as·much as conj. 1. Because of the fact that; since. 2. To the extent that; insofar as. inasmuch as conj 1. since; because 2. the Company received cash in most of these transactions, the restatements do not affect the previously reported quarterly cash flow statements." These restatements are further discussed in the notes to the fiscal year 2000 financial statements and in a Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed with the SEC. Because of the Company's continuing operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and cash requirements to fund operations, and uncertainty as to the Company's ability to secure additional financing, the independent auditors' report on the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the year ended June 30, 2000 contained an explanatory ex·plan·a·to·ry adj. Serving or intended to explain: an explanatory paragraph. ex·plan paragraph indicating there is substantial doubt about the Company's ability to continue as a going concern. Commenting on the going concern issue, Costley, said, "We are continuing to develop a plan to address these issues which would allow us to continue as a going concern. This plan contemplates efforts to obtain debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in amounts sufficient to fund operations and continue growth, realize the potential of our recent business acquisitions and our current products and services, fund capital expenditures and reduce 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. as necessary." Conference Call HomeSeekers.com's Senior Management will host its conference call on Monday morning, October 9 at 9:00 am, Eastern Time. Interested parties may participate in the call by dialing 1-888-879-2144 approximately 10 minutes before the call is scheduled to begin. Please use the following pass code 16508170. 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 24 hours Adv. 1. for 24 hours - without stopping; "she worked around the clock" around the clock, round the clock by dialing 1-800-633-8284 for domestic calls and 1-858-812-6440 for international calls. The reservation number is 16508170. This conference call replay may also be viewed through Vcall on the Internet at www.vcall.com. Fourth Quarter Highlights Customer Reach The HomeSeekers.com suite of technology solutions serves one of the largest real estate professional customer bases in the industry. Through current or pending contracts over 100,000 agents are scheduled to be served through the HomeSeekers.com XMLSweb multiple-listing service product. The ISG-Formulator electronic forms product line is in use by approximately 40,000 agents, with roughly 50,000 agents using 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. agent productivity software. Approximately 25,000 agents use our agent web site/webpage products and roughly 20,000 agents advertise in our real estate publications. Leading New Jersey MLS See multilevel security. Organization Signs Contract We signed a multi-year technology agreement to utilize our XMLSweb product with the Monmouth County Association of Realtors, which represents approximately 6,000 real estate professionals. Two Major Florida XMLSweb Technology Contracts Signed We signed two multi-year operating agreements An operating agreement is an agreement among limited liability company ("LLC") members governing the LLC's business, and Member's financial and management rights and duties. No state requires an LLC to have an Operating agreement. with two MLS organizations located on Florida's Gulf Coast, Sarasota and Manatee manatee: see sirenian. manatee Any of three species (family Trichechidae) of slow-moving, shallow-water herbivorous mammals. Manatees have a tapered body ending in a rounded flipper, no hind flippers, and foreflippers near the head. County, which on a combined basis represent over 3,000 real estate professionals. HomeSeekers.com Enters Into Transaction With Global Chinese Property Portal, PP.Com We entered into a technology consulting and license agreement with Hong Kong- based the Property Portal! Limited (PP.com). In connection with this transaction, we acquired roughly a 20% equity stake in PP.com in exchange for HomeSeekers shares. The technology agreement covers the territory of China, (including Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and Taiwan), Singapore, Malaysia and Thailand. PP.com's strategy is to become a global property portal for Chinese communities. Its business model is to provide a networked Internet platform that meets the needs of property developers, real estate agents, merchants and consumers. XMLSweb contract announced with Large Northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern MLS We signed a multi-year technology agreement with Bay Area Real Estate Information Services See Information Systems. , Inc. (BAREIS BAREIS Bay Area Real Estate Information Services, Inc ) which serves Marin, Sonoma, Napa, and Solano counties in California The U.S. state of California is divided into fifty-eight counties. Counties are responsible for all elections, property-tax collection, maintenance of public records such as deeds, and local-level courts within their borders, as well as providing law enforcement (through the county . Approximately 5,500 real estate professionals belong to the BAREIS system. East Bay Regional Data (EBRD EBRD See: European Bank for Reconstruction and Development ) Signed XMLweb Contract We signed a multi-year technology agreement utilizing our XLMSweb Internet browser See Web browser. product with another San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden area MLS organization. EBRD serves roughly 3,500 real estate professionals in Oakland, Berkeley, Richmond, Antioch and surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. areas. HomeSeekers.com announced First XMLSweb Installation 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 We signed a multi-year technology agreement utilizing our XMLSweb product with the Mid-Hudson Multiple Listing Service, Inc. in upstate New York Upstate New York is the region of New York State north of the core of the New York metropolitan area. It has a population of 7,121,911 out of New York State's total 18,976,457. Were it an independent state, it would be ranked 13th by population. , serving Poughkeepsie and surrounding areas in Dutchess 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:
Personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. Voice Service Over The Web We acquired Connect2Call.com, a developer of Voice-Over-Internet Protocol and Web-enabled, interactive voice communication technologies. Connect2Call.com is a developer of human interactive telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. solutions targeted at providing voice response service over the Internet. The firm has created a Web-based integrated technology that enables consumers who visit web sites to click a button and be connected with a sales or customer service representative. Subsequent Events IRIS, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control Acquisition We acquired the real estate productivity software firm, IRIS, LLC. Integration of IRIS technology into our tools is aimed at allowing real estate agents to more efficiently capture and manage leads and move listings into MLS databases. IRIS currently serves roughly 50,000 agents with its suite of products. About HomeSeekers.com, Incorporated HomeSeekers.com, Incorporated is a leading provider of technology to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and International real estate industries. The company provides technology solutions and services targeted to brokers, agents, Multiple Listing Services (MLS), builders, consumers and others involved in the real estate industry. 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 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 identifies 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 BALANCE SHEETS
JUNE 30, 2000 AND 1999
(Amounts in thousands, except share and per share data)
2000 1999
-------- --------
ASSETS
Current assets
Cash and cash equivalents $ 2,078 $ 10,617
Accounts receivable, net
of allowance for
uncollectible accounts
of $141 in 2000 and $38
in 1999 1,023 1,697
Accounts and notes
receivable, related parties 159 283
Prepaid expenses 897 309
-------- --------
Total current
assets 4,157 12,906
Investments, net of valuation
allowance of $3,153 in 2000
and $0 in 1999 3,535 400
Investment in foreign
affiliate 7,517 --
Property and equipment, net 4,163 1,170
Purchased intangible assets,
net of accumulated
amortization of $4,150 in
2000 and $602 in 1999 20,531 2,377
Other assets 123 36
-------- --------
$ 40,026 $ 16,889
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,570 $ 630
Accrued payroll and other
liabilities 1,479 454
Liability under purchase
agreement 1,500 --
Long-term obligations,
current portion 99 39
Deferred revenue 4,162 2,693
-------- --------
Total current liabilities 8,810 3,816
Long-term liabilities
Long-term obligations 153 50
Deferred revenue 862 333
-------- --------
Total long-term liabilities 1,015 383
Commitments and contingencies
Stockholders' equity
Common stock; $.001 par,
50,000,000 shares
authorized; 21,433,210
shares and 14,946,283
shares issued and
outstanding at
June 30, 2000 and 1999,
respectively 21 15
Additional paid - in capital 72,113 29,051
Accumulated deficit (40,960) (15,926)
Investment in LLC -- (450)
Note receivable
from officer (320) --
Accumulated other
comprehensive loss (653) --
-------- --------
Total stockholders'
equity 30,201 12,690
-------- --------
$ 40,026 $ 16,889
======== ========
HOMESEEKERS.COM, INCORPORATED.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2000 AND 1999
(Amounts in thousands, except share and per share data)
2000 1999
------------ ------------
Revenues $ 11,090 $ 3,419
Cost of revenues 6,097 567
------------ ------------
Gross profit 4,993 2,852
Operating expenses 30,505 8,011
------------ ------------
Loss from operations (25,512) (5,159)
Other income (expense)
Interest expense (77) (31)
Interest income 290 192
Other, net 265 156
------------ ------------
478 317
------------ ------------
Net loss (25,034) (4,842)
Other comprehensive
income (loss) (653) 700
------------ ------------
Total comprehensive
loss $ (25,687) $ (4,142)
============ ============
Net loss $ (25,034) $ (4,842)
Preferred dividends
paid -- (595)
------------ ------------
Net loss attributable
to common stockholders $ (25,034) $ (5,437)
============ ============
Basic and diluted net
loss per common share $ (1.47) $ (.53)
============ ============
Shares used in computing
basic and diluted share
data 17,031,852 10,235,286
============ ============
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