Leaf Group (LFGR) Misses Q4 EPS by 10c

Leaf Group (NYSE: LFGR) reported Q4 EPS of ($0.31), $0.10 worse than the analyst estimate of ($0.21). Revenue for the quarter came in at $34 million versus the consensus estimate of $34.14 million.

For the fourth quarter of 2016:

• Total revenue declined 1% year-over-year due to a 30% decline in Media revenue partially offset by a 23% increase in Marketplaces revenue. On a pro forma basis eliminating the impact of the dispositions of the Cracked business and certain other non-strategic properties, total revenue increased 9% year-over-year.
• Marketplaces revenue grew 23% year-over-year driven primarily by increased traffic, new product introductions and higher conversion rates.
• Media revenue declined 30% year-over-year driven primarily by the divestitures of certain online properties including Cracked, traffic declines on eHow and lower ad monetization yields. On a pro forma basis eliminating the impact of the dispositions of the Cracked business and certain other non-strategic properties, Media revenuedeclined 12% year-over-year.
• Adjusted EBITDA was $(2.6) million for the quarter, primarily reflecting the decline in higher margin Media advertising revenue, partially offset by growth in Marketplaces and managed reductions in operating expenses other than product and marketing costs.
• Cash and cash equivalents was $50.9 million at period end with no debt outstanding. During Q4, the company used $1.4 million to repurchase approximately 226,000 shares of its common stock at an average price of $5.98 per share. As of December 31, 2016, approximately $14.4 million of authorized funds remained available for share repurchases under the company’s stock repurchase plan.

For earnings history and earnings-related data on Leaf Group (LFGR) click here.

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