Homestore's recovery hurt by ongoing legal struggles. (Corporate Focus).HOMESTORE.COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. Inc. cleaned up one legal mess last week, but remaining issues, including an ongoing shareholder lawsuit and a Securities and Exchange Commission investigation, threaten to overwhelm the real estate oriented dot-com's attempts to rehabilitate re·ha·bil·i·tate v. 1. To restore to good health or useful life, as through therapy and education. 2. To restore to good condition, operation, or capacity. itself. The settlement involved Homestore's August 2001 purchase--and subsequent sale--of a company called iPlace, a provider of consumer credit services. Homestore made the purchase for $150 million, including $78 million in stock, from MemberWorks Inc. Problem was, Homestore's stock price reflected financial results that have since proven to be overblown o·ver·blown v. Past participle of overblow. adj. 1. a. Done to excess; overdone: overblown decorations. b. . Shortly after the purchase was completed, Homestore shares began to plummet, effectively lowering the price MemberWorks received. Eventually, Homestore restated $172 million in revenues during 2000 and the first three quarters of 2001, adding $144 million to previously reported losses. Homestore stock, trading in the low $20's at the time the deal was made, has remained below $5 since November, and recently traded below $1. Earlier this year, Homestore sold the unit to Experian Holdings Inc. for $130 million in cash. MemberWorks sued, trying to block the sale. A federal judge made Homestore put $58 million of the proceeds into an escrow account. Last week, Homestore agreed to give MemberWorks $23 million of the money in the escrow account. It gets to keep the rest. [GRAPH OMITTED] [GRAPH OMITTED] Financial Editor Anthony Palazzo can be reached at 323-549-5225, ext. 224, or at tpalazzo@labusinessjournal.com. YEAR (Dec. 31) 2001 2000 Revenue (millions) $286.8 $181.3 Operating Expenses (millions) 1,756.9 343.4 Operating Income (millions) (1,431.8) (162.1) Net Income (millions) (1,465.6) (146.1) Earnings Per Share (13.64) (1.83) SUMMARY Business: Online real estate info. and services Headquarters: Westlake Village 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. : W. Michael Long Market Cap: $83.6 million Dividend Yield: N/A * Total Liabilities: $406.3 million P/E Ratio P/E ratio Current stock price divided by trailing annual earnings per share or expected annual earnings per share. Assume XYZ Co. sells for $25.50 per share and has earned $2.55 per share this year; $25.50 = 10 times $2.55. XYZ stock sells for ten times earnings. : N/A * 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. : $0 * Company does not pay a dividend. |
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