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Reis Announces Second Quarter 2014 Results

Reis, Inc. Logo

Revenue Grows 20%, EBITDA Up 14.8%

Product Pipeline Remains Strong

NEW YORK, July 31, 2014 (GLOBE NEWSWIRE) -- Reis, Inc. (Nasdaq:REIS) ("Reis" or the "Company"), a leading provider of commercial real estate market information and analytical tools, announced its financial results and operational achievements for the second quarter ended June 30, 2014.

Consolidated revenue, which is comprised entirely of subscription revenue generated by the Company's Reis Services segment, was $10,194,375 for the three months ended June 30, 2014, as compared to $8,498,309 for the three months ended June 30, 2013, an increase of 20.0%. This is the Company's 17th consecutive quarterly increase in revenue over the prior year's corresponding quarter. For the six months ended June 30, 2014, subscription revenue was $20,140,420 as compared to $16,732,637 for the six months ended June 30, 2013, an increase of 20.4%. All of the Company's revenue growth has been organically generated.

Income from continuing operations was $914,538, or $0.08 per basic and diluted share, for the quarter ended June 30, 2014. For the quarter ended June 30, 2013, the Company had income from continuing operations of $521,996, or $0.05 per basic and diluted share. For the six months ended June 30, 2014, income from continuing operations was $1,961,518, or $0.18 per basic share and $0.17 per diluted share as compared to $924,062, or $0.09 per basic share and $0.08 per diluted share for the six months ended June 30, 2013.

On a consolidated basis, the Company had net income of $821,799, or $0.07 per basic and diluted share, for the three months ended June 30, 2014. For the three months ended June 30, 2013, the Company had net income of $483,706, or $0.04 per basic and diluted share. For the six months ended June 30, 2014, the Company had net income of $1,490,901, or $0.14 per basic share and $0.13 per diluted share, as compared to $734,140, or $0.07 per basic share and $0.06 per diluted for the six months ended June 30, 2013.

Reis Services EBITDA (which is earnings (defined as income (loss) from continuing operations) before interest, taxes, depreciation and amortization) was $4,091,000 during the second quarter of 2014, an increase of $528,000, or 14.8%, over the second quarter 2013 amount of $3,563,000. This is the Company's 15th consecutive quarterly increase in EBITDA over the prior year's corresponding quarter. The Reis Services EBITDA margins were 40.1% and 41.9% for the three months ended June 30, 2014 and 2013, respectively. For the six months ended June 30, 2014 and 2013, Reis Services EBITDA was $8,157,000 and $6,840,000, respectively, reflecting growth of $1,317,000, or 19.3%. The EBITDA margins were 40.5% and 40.9% for the six months ended June 30, 2014 and 2013, respectively. Management uses metrics, such as EBITDA, to monitor and assess the performance of its operating business, Reis Services, and believes it is helpful to investors in understanding the Reis Services business (see below for reconciliations of income from continuing operations to EBITDA and Adjusted EBITDA for the Reis Services segment and on a consolidated basis).

Reis's CEO, Lloyd Lynford, observed that, "Reis belongs to that select cohort of companies that are sustaining truly outstanding growth, all organically generated. Twenty percent revenue growth through the first half of 2014 represents a convergence of innovation, relentless product development and a commitment from all of our employees to drive our business to new heights. Our recently launched new products – and our development pipeline – suggest that Reis can deliver strong revenue and EBITDA growth for many years into the future."

Financial and Operational Highlights

Following are recent financial and operational highlights for Reis:

  • revenue growth was 20.0% in the second quarter of 2014 over the 2013 second quarter, an acceleration from the second quarter 2013 over 2012 growth rate of 13.0% and the 17th consecutive quarterly increase in revenue over the prior year's corresponding quarter;
  • year to date revenue growth was 20.4% for the six months ended June 30, 2014;
  • Reis Services EBITDA growth was 14.8% and 19.3% for the three and six months ended June 30, 2014 over the comparable 2013 periods;
  • consolidated Adjusted EBITDA of $3,406,000 for the second quarter of 2014 (see reconciliations below) grew 20.1% over the second quarter of 2013 with a margin of 33.4%;
  • year to date consolidated Adjusted EBITDA of $6,763,000 grew 27.1% over the comparable 2013 period, with a margin of 33.6%;
  • Reis SE renewal rates for the trailing twelve months ended June 30, 2014 were 90% overall and 92% for institutional subscribers;
  • deferred revenue ($17,693,000), Aggregate Revenue Under Contract ($39,937,000) and the forward twelve month component of Aggregate Revenue Under Contract ($26,278,000) continued to demonstrate a strong revenue base and visibility into our future revenue;
  • declared and paid an initial quarterly dividend of $0.11 per share, or $1,229,000 in the aggregate, to shareholders during the second quarter;
  • generated net cash of $5,843,000 in the first half of the year (after investing $2,050,000 in our databases and websites and utilizing $1,229,000 for our initial quarterly dividend), bringing our cash balance to $16,403,000 at June 30, 2014;
  • initiated coverage in May 2014 on 57 metropolitan markets in the seniors housing sector, our seventh property type; and
  • significant enhancements to both our Mobiuss CRE and ReisReports offerings continued in the second quarter; new Mobiuss features were launched in May 2014, while improvements to ReisReports will be introduced during the third quarter of 2014.

Critical Metrics: Revenue; Deferred Revenue; Aggregate Revenue Under Contract; and EBITDA

Reis Services's revenue increased by approximately $1,696,000, or 20.0%, from the second quarter of 2013 to the second quarter of 2014 and increased approximately $3,408,000, or 20.4%, from the six months ended June 30, 2013 to the 2014 comparable six month period. The revenue increase over the corresponding prior quarterly period is the 17th consecutive quarterly increase in revenue over the prior year's quarter. In addition, revenue increased by approximately $248,000, or 2.5%, from the first quarter of 2014 to the second quarter of 2014. In general, these revenue increases reflect: (1) additional new Reis SE business; (2) revenue growth from ReisReports; and (3) revenue growth from Mobiuss in the 2014 period. The Company's revenue growth reflects not just a single strong quarter, but also the momentum created by sustained contract growth during 2013 and through the first half of 2014. In 2013, the Company had its best booking year and the fourth quarter of 2013 was the best booking quarter in Reis's history. Both new business and total bookings for the second quarter of 2014 and the year to date 2014 period were at record levels compared to those specific periods historically. The Company's overall renewal rates were 90% and 91% for the trailing twelve months ended June 30, 2014 and 2013, respectively (for institutional subscribers, the renewal rates were each 92% for the trailing twelve months ended June 30, 2014 and 2013).

Two additional metrics management utilizes are deferred revenue and Aggregate Revenue Under Contract. Analyzing these amounts can provide additional insight into Reis Services's future financial performance. Deferred revenue, which is a GAAP basis accounting concept and is reported by the Company on the consolidated balance sheet, represents revenue from annual or longer term contracts for which we have billed and/or received payments from our subscribers related to services we will be providing over the remaining contract period. It does not include future revenue under non-cancellable contracts for which we do not yet have the contractual right to bill; this aggregate number we refer to as Aggregate Revenue Under Contract. Deferred revenue will be recognized as revenue ratably over the remaining life of a contract. The following table reconciles deferred revenue to Aggregate Revenue Under Contract at June 30, 2014 and 2013, respectively. A comparison of these balances at June 30 of each year is more meaningful than a comparison to the December 31, 2013 balances, as a greater percentage of renewals occur in the fourth quarter of each year and would distort the analysis.

(Unaudited) June 30,
2014 2013
Deferred revenue (GAAP basis) $ 17,693,000 $ 16,174,000
Amounts under non-cancellable contracts for which the Company does not yet have the contractual right to bill at the period end (A) 22,244,000 18,865,000
Aggregate Revenue Under Contract $ 39,937,000 $ 35,039,000
(A) Amounts are billable subsequent to June 30 of each year and represent (1) non-cancellable contracts for subscribers with multi-year subscriptions where the future years are not yet billable, or (2) subscribers with non-cancellable annual subscriptions with interim billing terms.

Included in Aggregate Revenue Under Contract at June 30, 2014 was approximately $26,278,000 related to amounts under contract for the forward twelve month period through June 30, 2015. The remainder reflects amounts under contract beyond June 30, 2015. The forward twelve month Aggregate Revenue Under Contract amount is approximately 68.9% of revenue on a trailing twelve month basis at June 30, 2014 of approximately $38,129,000. For comparison purposes, at June 30, 2013, the forward twelve month Aggregate Revenue Under Contract of $23,246,000 was approximately 70.1% of revenue on a trailing twelve month basis at June 30, 2013.

Both deferred revenue and Aggregate Revenue Under Contract are influenced by: (1) the timing and dollar value of contracts signed and billed; (2) the quantity and timing of contracts that are multi-year; and (3) the impact of recording revenue ratably over the life of a multi-year contract, which moderates the effect of price increases after the first year. Coupled with record new business and contract signings in 2013, which has continued into 2014, the Company continued to sign new multi-year contracts.

Reis Services EBITDA for the three months ended June 30, 2014 was $4,091,000, an increase of $528,000, or 14.8%, over the second quarter 2013 amount. For the six months ended June 30, 2014, Reis Services EBITDA was $8,157,000, an increase of $1,317,000, or 19.3%, over the comparable 2013 six month period. On a consecutive quarter basis, Reis Services EBITDA increased $25,000, or 0.6%, from the first quarter of 2014 to the second quarter of 2014. These increases were primarily derived from the increases in revenue, as described above. Operating expenses also continued to grow, but at a slower pace than revenue growth, the net effect of which resulted in the Reis Services EBITDA margins of 40.1% and 40.5% for the three and six months ended June 30, 2014, respectively as compared to the 41.9% and 40.9% reported amounts in the 2013 comparable periods. The reduction in the margins was the result of increased personnel related costs and our investment in maintaining our databases and new marketing initiatives.

Investment in our business remains a priority. This includes the development of new products and functionality, the expansion of our existing databases and our willingness to add resources to profitably grow both our customer and revenue base. Accordingly, we continue to hire in many departments, including in sales (both new business and account management) as well as in operations, including our data collection departments. With a growing head count, the Company leased additional space in the third quarter of 2013. The impact of this additional expense began in the fourth quarter of 2013. Separately, as Reis's business continues to grow, we are devoting additional resources to expand our sales pipeline through marketing efforts and sales force expansion. Collectively, the effects of increased personnel costs and our investment and marketing initiatives have resulted in margin reductions to the 40.1% and 40.5% levels for the three and six months ended June 30, 2014, respectively.

Reconciliations of Income from Continuing Operations to EBITDA and Adjusted EBITDA (Segment and Consolidated)

We define EBITDA as earnings (defined as income (loss) from continuing operations) before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, amortization and stock based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with GAAP, senior management uses EBITDA and Adjusted EBITDA to measure operational and management performance. Management believes that EBITDA and Adjusted EBITDA are appropriate supplemental financial measures to be considered in addition to the reported GAAP basis financial information which may assist investors in evaluating and understanding: (1) the performance of the Reis Services segment, the primary business of the Company and (2) the Company's continuing consolidated results, from year to year or period to period, as applicable. Further, these measures provide the reader with the ability to understand our operational performance while isolating non-cash charges, such as depreciation and amortization expenses, as well as other non-operating items, such as interest income, interest expense and income taxes and, in the case of Adjusted EBITDA, isolates non-cash charges for stock based compensation. Management also believes that disclosing EBITDA and Adjusted EBITDA will provide better comparability to other companies in the information services sector. EBITDA and Adjusted EBITDA are presented both for the Reis Services business and on a consolidated basis. We believe that these metrics, for Reis Services, provide the reader with valuable information for evaluating the financial performance of the core Reis Services business, excluding public company costs, and for making assessments about the intrinsic value of that stand-alone business to a potential acquirer. Management primarily monitors and measures its performance, and is compensated, based on the results of the Reis Services business. EBITDA and Adjusted EBITDA, on a consolidated basis, allow the reader to make assessments about the current trading value of the Company's common stock, including expenses related to operating as a public company. However, investors should not consider these measures in isolation or as substitutes for net income (loss), income from continuing operations, operating income, or any other measure for determining operating performance that is calculated in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. Reconciliations of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, income from continuing operations, follow for each identified period on a segment basis (including the Reis Services segment), as well as on a consolidated basis:

(amounts in thousands) (Unaudited)
By Segment
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Three Months Ended June 30, 2014
Reis Services Other (A) Consolidated
Income from continuing operations $ 915
Income tax expense 726
Income (loss) before income taxes and discontinued operations $ 2,764 $ (1,123) 1,641
Add back:
Depreciation and amortization expense 1,305 3 1,308
Interest expense, net 22 22
EBITDA 4,091 (1,120) 2,971
Add back:
Stock based compensation expense, net 435 435
Adjusted EBITDA $ 4,091 $ (685) $ 3,406
Adjusted EBITDA margin – Reis Services and consolidated (B) 40.1% 33.4%
By Segment
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Three Months Ended June 30, 2013
Reis Services Other (A) Consolidated
Income from continuing operations $ 522
Income tax expense 347
Income (loss) before income taxes and discontinued operations $ 2,251 $ (1,382) 869
Add back:
Depreciation and amortization expense 1,286 3 1,289
Interest expense, net 26 26
EBITDA 3,563 (1,379) 2,184
Add back:
Stock based compensation expense, net 652 652
Adjusted EBITDA $ 3,563 $ (727) $ 2,836
Adjusted EBITDA margin – Reis Services and consolidated (B) 41.9% 33.4%
See footnotes on next page.
(amounts in thousands) (Unaudited)
By Segment
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Six Months Ended June 30, 2014
Reis Services Other (A) Consolidated
Income from continuing operations $ 1,962
Income tax expense 1,331
Income (loss) before income taxes and discontinued operations $ 5,562 $ (2,269) 3,293
Add back:
Depreciation and amortization expense 2,548 5 2,553
Interest expense, net 47 47
EBITDA 8,157 (2,264) 5,893
Add back:
Stock based compensation expense, net 870 870
Adjusted EBITDA $ 8,157 $ (1,394) $ 6,763
Adjusted EBITDA margin – Reis Services and consolidated (B) 40.5% 33.6%
By Segment
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Six Months Ended June 30, 2013
Reis Services Other (A) Consolidated
Income from continuing operations $ 924
Income tax expense 612
Income (loss) before income taxes and discontinued operations $ 4,291 $ (2,755) 1,536
Add back:
Depreciation and amortization expense 2,497 5 2,502
Interest expense, net 52 52
EBITDA 6,840 (2,750) 4,090
Add back:
Stock based compensation expense, net 1,233 1,233
Adjusted EBITDA $ 6,840 $ (1,517) $ 5,323
Adjusted EBITDA margin – Reis Services and consolidated (B) 40.9% 31.8%
By Segment
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Three Months Ended March 31, 2014
Reis Services Other (A) Consolidated
Income from continuing operations $ 1,047
Income tax expense 605
Income (loss) before income taxes and discontinued operations $ 2,798 $ (1,146) 1,652
Add back:
Depreciation and amortization expense 1,243 2 1,245
Interest expense, net 25 25
EBITDA 4,066 (1,144) 2,922
Add back:
Stock based compensation expense, net 435 435
Adjusted EBITDA $ 4,066 $ (709) $ 3,357
Adjusted EBITDA margin – Reis Services and consolidated (B) 40.9% 33.8%

(A) Includes interest and other income, depreciation expense and general and administrative expenses (including public company related costs) that are not associated with the Reis Services segment. Since the reconciliations start with income from continuing operations, the effects of the discontinued operations (Residential Development Activities) are excluded from these reconciliations for all periods presented.

(B) Reflects an Adjusted EBITDA margin on the Reis Services segment and on a consolidated basis, both of which exclude the impact of discontinued operations.

Discontinued Operations

The loss from discontinued operations was $93,000 and $38,000 for the three months ended June 30, 2014 and 2013, respectively and $471,000 and $190,000 for the six months ended June 30, 2014 and 2013, respectively. The losses in the 2014 and 2013 periods primarily reflected legal and professional fees in connection with our recovery efforts (related to the 2012 Gold Peak settlement of $17,000,000), in excess of any recoveries, and is net of tax benefits. During the three and six months ended June 30, 2014, the Company recovered $16,000 and during the three and six months ended June 30, 2013, the Company recovered $80,000.

Future cash flows from discontinued operations will be solely comprised of expenditures incurred as part of our cash recovery efforts from insurance companies and other potentially responsible parties and, to the extent that we are successful in these efforts, cash inflows from any future recoveries; however, there can be no assurance that the Company will recover any amounts in the short or long term.

Investor Conference Call

The Company will host a conference call on Thursday, July 31, 2014, at 11:00 AM (EDT). This call is for the benefit of existing and prospective stockholders, stock analysts, and other interested parties to discuss the second quarter 2014 results and other matters.

The dial-in number from inside the U.S. or Canada for this teleconference is (877) 390-5537. The dial-in number for outside the U.S. and Canada is (760) 666-3763. The conference ID is 80285521, or "Reis." A replay of the conference call will be available from shortly after the conference call through midnight (EDT) on August 2, 2014 by dialing (855) 859-2056 from inside the U.S. or Canada or (404) 537-3406 from outside the U.S. and Canada, and referring to the conference ID: 80285521, or "Reis". An audio webcast of the conference call will also be available on Reis's website at www.reis.com/events and will remain on the website for a period of time following the call.

About Reis


Reis provides commercial real estate market information and analytical tools to real estate professionals through its Reis Services subsidiary. Reis Services, including its predecessors, was founded in 1980. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, retail, warehouse/distribution, flex/research & development, self storage and seniors housing properties, and is used by real estate investors, lenders and other professionals to make informed buying, selling and financing decisions. In addition, Reis data is used by debt and equity investors to assess, quantify and manage the risks of default and loss associated with individual mortgages, properties, portfolios and real estate backed securities. Reis currently provides its information services to many of the nation's leading lending institutions, equity investors, brokers and appraisers.

The Company's product portfolio features: Reis SE, its flagship delivery platform aimed at larger and mid-sized enterprises; ReisReports, aimed at prosumers and smaller enterprises; and Mobiuss Portfolio CRE, or Mobiuss, aimed primarily at risk managers and credit administrators at banks and non-bank lending institutions. It is through these products that Reis provides online access to a proprietary database of commercial real estate information and analytical tools designed to facilitate debt and equity transactions as well as ongoing asset and portfolio evaluations. Depending on the product or level of entitlement, users have access to market trends and forecasts at metropolitan and neighborhood levels throughout the U.S. and/or detailed building-specific information such as rents, vacancy rates, lease terms, property sales, new construction listings and property valuation estimates. Reis's products are designed to meet the demand for timely and accurate information to support the decision-making of property owners, developers, builders, banks and non-bank lenders, equity investors and service providers. These real estate professionals require access to timely information on both the performance and pricing of assets, including detailed data on market transactions, supply, absorption, rents and sale prices. This information is critical to all aspects of valuing assets and financing their acquisition, development and construction.

For more information regarding Reis's products and services, visit www.reis.com and www.ReisReports.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to the Company's or management's outlook or expectations for earnings, revenues, expenses, asset quality, or other future financial or business performance, strategies, prospects or expectations, or the impact of legal, regulatory or supervisory matters on our business, operations or performance. Specifically, forward-looking statements may include:

  • statements relating to future services and product development of the Reis Services segment;
  • statements relating to business prospects, potential acquisitions, sources and uses of cash, revenue, expenses, income (loss) from continuing or discontinued operations, cash flows, valuation of assets and liabilities and other business metrics of the Company and its businesses, including EBITDA, Adjusted EBITDA and Aggregate Revenue Under Contract; and
  • statements preceded by, followed by or that include the words "estimate," "plan," "project," "intend," "expect," "anticipate," "believe," "seek," "target" or similar expressions relating to future periods.

Forward-looking statements reflect management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. With respect to these forward-looking statements, management has made certain assumptions. Future performance cannot be assured. Actual results may differ materially from those contemplated by the forward-looking statements. Some factors that could cause actual results to differ include:

  • lower than expected revenues and other performance measures such as income from continuing operations, EBITDA and Adjusted EBITDA;
  • inability to retain and increase the Company's subscriber base;
  • inability to execute properly on new products and services, or failure of subscribers to accept these products and services;
  • competition;
  • inability to attract and retain sales and senior management personnel;
  • inability to access adequate capital to fund operations and investments in our business;
  • difficulties in protecting the security, confidentiality, integrity and reliability of the Company's data;
  • changes in accounting policies or practices;
  • legal and regulatory issues;
  • the results of pending, threatening or future litigation; and
  • the risk factors listed under "Item 1A. Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2013, and in our quarterly report on Form 10-Q for the quarter ended June 30, 2014, each filed with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section of these filings, and the Company's other filings with the SEC available at the SEC's website (www.sec.gov).

You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. Except as required by law, the Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Financial Information

REIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2014 2013
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 16,403,254 $ 10,559,899
Restricted cash and investments 212,358 216,702
Accounts receivable, net 4,469,457 11,386,584
Prepaid and other assets 2,462,463 2,787,909
Assets attributable to discontinued operations 4,650 8,500
Total current assets 23,552,182 24,959,594
Furniture, fixtures and equipment, net of accumulated depreciation of $2,040,032 and $1,905,933, respectively 850,932 853,377
Intangible assets, net of accumulated amortization of $31,126,598 and $28,764,189, respectively 15,374,659 15,687,117
Deferred tax asset, non-current portion, net 20,829,520 21,316,520
Goodwill 54,824,648 54,824,648
Other assets 182,662 225,528
Total assets $ 115,614,603 $ 117,866,784
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of debt $ — $ —
Accrued expenses and other liabilities 2,970,294 3,578,227
Liability for option cancellations 150,565 268,341
Deferred revenue 17,692,794 20,284,178
Liabilities attributable to discontinued operations 311,323 342,138
Total current liabilities 21,124,976 24,472,884
Other long-term liabilities 500,407 522,941
Total liabilities 21,625,383 24,995,825
Commitments and contingencies
Stockholders' equity:
Common stock, $0.02 par value per share, 101,000,000 shares authorized, 11,101,665 and 10,916,441 shares issued and outstanding, respectively 222,032 218,328
Additional paid in capital 103,570,408 102,717,693
Retained earnings (deficit) (9,803,220) (10,065,062)
Total stockholders' equity 93,989,220 92,870,959
Total liabilities and stockholders' equity $ 115,614,603 $ 117,866,784

REIS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2014 2013 2014 2013
Subscription revenue $ 10,194,375 $ 8,498,309 $ 20,140,420 $ 16,732,637
Cost of sales of subscription revenue 1,974,242 1,674,793 3,890,587 3,356,197
Gross profit 8,220,133 6,823,516 16,249,833 13,376,440
Operating expenses:
Sales and marketing 2,541,207 2,031,618 5,093,227 4,000,584
Product development 814,025 792,199 1,577,128 1,513,765
General and administrative expenses 3,202,151 3,104,751 6,239,593 6,274,062
Total operating expenses 6,557,383 5,928,568 12,909,948 11,788,411
Other income (expenses):
Interest and other income 6,071 2,331 9,129 4,529
Interest expense (28,283) (28,283) (56,496) (56,496)
Total other income (expenses) (22,212) (25,952) (47,367) (51,967)
Income before income taxes and discontinued operations 1,640,538 868,996 3,292,518 1,536,062
Income tax expense 726,000 347,000 1,331,000 612,000
Income from continuing operations 914,538 521,996 1,961,518 924,062
(Loss) from discontinued operations, net of income tax (benefit) of $(82,000), $(24,000), $(317,000) and $(123,000), respectively (92,739) (38,290) (470,617) (189,922)
Net income $ 821,799 $ 483,706 $ 1,490,901 $ 734,140
Per share amounts – basic:
Income from continuing operations $ 0.08 $ 0.05 $ 0.18 $ 0.09
Net income $ 0.07 $ 0.04 $ 0.14 $ 0.07
Per share amounts – diluted:
Income from continuing operations $ 0.08 $ 0.05 $ 0.17 $ 0.08
Net income $ 0.07 $ 0.04 $ 0.13 $ 0.06
Weighted average number of common shares outstanding:
Basic 11,101,665 10,891,993 11,040,530 10,860,370
Diluted 11,531,030 11,398,094 11,509,489 11,368,882
Dividends declared per common share $ 0.11 $ — $ 0.11 $ —

CONTACT: Press Contact: Mark P. Cantaluppi Vice President, Chief Financial Officer Reis, Inc. (212) 921-1122

Source:Reis, Inc.