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Reis Announces Third Quarter 2015 Results

Strong Execution Drives Double Digit Growth in All Key Financial Metrics

Company Reports 15.9% Revenue Growth and 14.6% Reis Services EBITDA Growth

NEW YORK, Oct. 29, 2015 (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 third quarter ended September 30, 2015.

Consolidated revenue was $12,137,228 for the three months ended September 30, 2015 as compared to $10,468,941 for the three months ended September 30, 2014, growth of 15.9%. This is the Company’s 22nd consecutive quarterly increase in revenue over the prior year’s corresponding quarter. For the nine months ended September 30, 2015, subscription revenue was $36,684,041 as compared to $30,609,361 for the nine months ended September 30, 2014, growth of 19.8%. All of the Company’s revenue has been generated organically.

Reis Services EBITDA was $4,910,000 during the third quarter of 2015, growth of $625,000, or 14.6%, over the third quarter 2014 amount of $4,285,000. This is the Company’s 20th consecutive quarterly increase in EBITDA over the prior year’s corresponding quarter. The Reis Services EBITDA margins were 40.5% and 40.9% for the three months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 and 2014, Reis Services EBITDA was $15,597,000 and $12,442,000, respectively, growth of $3,155,000, or 25.4%. The EBITDA margins were 42.5% and 40.6% for the nine months ended September 30, 2015 and 2014, respectively (see below for reconciliations of income from continuing operations to EBITDA and Adjusted EBITDA for the Reis Services segment and on a consolidated basis).

Income from continuing operations grew 33.4% to $1,507,673, or $0.13 per basic and diluted share, for the quarter ended September 30, 2015, as compared to $1,130,388, or $0.10 per basic and diluted share, for the quarter ended September 30, 2014. For the nine months ended September 30, 2015, income from continuing operations grew 85.3% to $5,729,168, or $0.51 per basic share and $0.49 per diluted share, as compared to $3,091,906, or $0.28 per basic share and $0.27 per diluted share, for the nine months ended September 30, 2014.

Net income grew 52.2% to $1,644,426, or $0.15 per basic share and $0.14 per diluted share, for the three months ended September 30, 2015, as compared to $1,080,101, or $0.10 per basic share and $0.09 per diluted share for the quarter ended September 30, 2014. For the nine months ended September 30, 2015, net income grew 169.7% to $6,933,001, or $0.62 per basic share and $0.59 per diluted share, as compared to $2,571,002, or $0.23 per basic share and $0.22 per diluted share, for the nine months ended September 30, 2014.

Reis’s CEO, Lloyd Lynford, observed that, “Reis continues its top-tier financial performance with respect to revenue and EBITDA growth. Once again, we have posted mid-teen growth in both metrics, while leading indicators such as aggregate revenue under contract and deferred revenue have grown in excess of the 20% threshold over one year ago. I am confident that Reis’s must-have information products, which will soon be joined by enhanced sales comparables and affordable housing coverage, will produce a strong fourth quarter and robust revenue and EBITDA growth through 2016 and beyond.”

Financial and Operational Highlights

The following are recent financial and operational highlights for Reis:

  • revenue growth was 15.9% in the third quarter of 2015 over the 2014 third quarter, the 22nd consecutive quarterly increase in revenue over the prior year’s corresponding quarter;
  • revenue growth was 19.8% for the nine months ended September 30, 2015 over the comparable 2014 period;
  • Reis Services EBITDA growth was 14.6% and 25.4% for the three and nine months ended September 30, 2015 over the comparable 2014 periods;
  • consolidated Adjusted EBITDA of $4,291,000 for the third quarter of 2015 (see reconciliations below) grew 16.8% over the third quarter of 2014 with a margin of 35.4%;
  • consolidated Adjusted EBITDA of $13,552,000 for the nine months ended September 30, 2015 grew 29.9% over the comparable 2014 period, with a margin of 36.9%;
  • Reis SE renewal rates for the trailing twelve months ended September 30, 2015 were 90% overall and 92% for institutional subscribers;
  • deferred revenue ($22,160,000), Aggregate Revenue Under Contract ($49,505,000) and the forward twelve month component of Aggregate Revenue Under Contract ($33,883,000) continue to demonstrate strong visibility into our future revenue;
  • net cash generation of $8,214,000 in the first nine months of 2015 (a 46.3% increase over the December 31, 2014 cash balance, or an increase of $0.73 per common share), bringing our cash balance to $25,959,000 at September 30, 2015;
  • declared and paid quarterly dividends to shareholders of $0.14 per share during the first, second and third quarters of 2015, for aggregate payments of $4,750,000;
  • insurance recoveries (in our discontinued operations segment) from insurers, subcontractors and other parties involved with the Company’s former Gold Peak project aggregated $414,000 and $2,764,000 for the three and nine months ending September 30, 2015; and
  • expanded coverage to 200 Student Housing markets, by adding 100 markets in August 2015.

2015 Revenue Performance

All of the Company’s revenue is generated by the Reis Services segment. Reis Services revenue increased by approximately $1,668,000 or 15.9%, from the third quarter of 2014 to the third quarter of 2015. The revenue increase over the corresponding prior quarterly period is the 22nd consecutive quarterly increase over the prior year’s quarter. Reis Services revenue increased by approximately $6,075,000, or 19.8% in the nine months ended September 30, 2015 over the comparable 2014 period.

Revenue in the nine months ended September 30, 2015 included approximately $2,289,000 related to custom portfolio and advisory services for one of our existing Reis SE subscribers in the second quarter of 2015. Also included in our 2015 growth over the 2014 periods is the impact of additional new Reis SE business, improvements in the overall renewal rate and price increases on 2015 renewals. The revenue growth experienced by the Company reflects not just a single strong quarter, but also the momentum created by sustained contract growth during 2014 and in the first nine months of 2015.

The Company’s prior modest decline in the trailing twelve month renewal rates has stabilized in 2015. After falling to 87% overall and 89% for institutional subscribers as of December 31, 2014, the Company’s trailing twelve month renewal rates as of September 30, 2015 increased to 90% overall and to 92% for institutional subscribers. The decline in the renewal rates during 2014 reflected the Company’s decision to be more aggressive on renewal pricing, particularly in instances where customer usage levels were significantly greater than what was initially estimated as annual usage for that customer. The Company has continued this policy in 2015, believing that aligning client report consumption with appropriate annual fees, while remaining respectful of subscriber need for Reis information, is critical to the Company’s long-term growth and the protection of the value of its intellectual property. Also, based upon past experience, management believes that many non-renewing customers ultimately renew with Reis as their information and analytic needs may not be fully addressed by competitive offerings.

The 2015 revenue growth rates have been influenced by the effect of in-place multi-year contracts. As described in the “Management Summary” section of Item 7. of our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the SEC on March 5, 2015, multi-year contracts can impact our growth rates. Based upon several factors, including historical and anticipated report consumption, our account managers determine whether Reis and a subscriber are best served by an annual or multi-year commitment. Over the past three years, in order to increase the predictability of fees from our subscribers and Reis’s own revenue and cash flow, we have made a concerted effort to encourage multi-year contracts when appropriate, with terms of two or three years, and in some cases, four years. The average life of multi-year contracts signed in each of the last three years (2012, 2013 and 2014) was approximately 2.2 years. There are significant benefits to adopting and expanding our program, on a selective basis, of lengthening the duration of client contracts, including locking in recurring revenue for longer periods, thereby increasing the predictability of our renewal rates, future revenues and cash flow. Operationally, multi-year contracts free up account management resources to focus on subscribers requiring a higher level of attention and upselling opportunities across our account base. Finally, multi-year deals also insulate us from competitive pressures and increase the likeliness that Reis data and analytics will become further embedded in the work flow of our clients.

In accordance with GAAP, our revenue recognition policy is to record revenue ratably over the life of a subscriber contract. Therefore any increases in the price of the subscription after the first year of a multi-year contract are considered in the total amount being straight-lined over the contract term. If pricing steps are built in on and after the first anniversary of a multi-year contract, there will be increasing cash flow from the contract, but no growth in revenue during the subsequent years under that contract. At December 31, 2014, there were approximately 240 institutions signed to multi-year contracts, including many of our largest subscribers. As a greater volume of multi-year contracts signed in 2013, and earlier, renew in the remainder of 2015 and into 2016, we expect incremental revenue growth as these subscribers commit to multi-year price increases. This has been a contributing factor to the improvement of our quarterly revenue growth rates from 11.9% in the first quarter of 2015 to 15.9% in the third quarter of 2015.

As discussed above, the Company recognized significant revenue in the second quarter of 2015 related to a contract to provide custom portfolio and advisory services for one of our existing Reis SE subscribers. This contract called for a substantial volume of highly granular market, submarket and comparables data, as well as a one-time custom analysis of the institution’s commercial real estate portfolio. The customer is one of the largest financial services firms in the U.S. The revenue recognized in the second quarter of 2015 reflects the portion of the custom data files and custom portfolio analysis that was delivered to the customer in the respective quarterly period. Depending upon the timing of future deliveries and the performance of other contracted advisory services, the Company expects to generate additional revenue as the subscriber may require ongoing updates, resulting in recurring revenue for the Company. The Company believes that there may be additional opportunities to assist client and non-client financial services firms and other real estate investors with evaluating the health of their real estate portfolios, and considers the range of products and services provided under this contract as part of a stable of portfolio related solutions that Reis offers.

For analysis purposes, management is also presenting revenue on a pro forma basis for the nine months ended September 30, 2015 to reflect a historic level of custom revenue for the second quarter of 2015. On average, over a period of nine quarters (starting with the first quarter of 2013 through and including the first quarter of 2015), Reis recorded revenue of approximately $247,000 a quarter related to custom work. Therefore, for pro forma purposes, we deducted $2,186,000 from our aggregate custom revenue in the three months ended June 30, 2015 and the nine months ended September 30, 2015 to reflect revenue at that historic level of custom work. On a pro forma basis, revenue was $34,498,000 for the nine months ended September 30, 2015 which resulted in pro forma revenue growth of $3,889,000, or 12.7% for the nine months ended September 30, 2015 over the comparable reported 2014 amount.

Deferred Revenue and Aggregate Revenue Under Contract

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 September 30, 2015 and 2014, respectively. A comparison of these balances at September 30 of each year is more meaningful than a comparison to the December 31, 2014 balances, as a greater percentage of renewals occur in the fourth quarter of each year and would distort the analysis.

September 30,
2015 2014
Deferred revenue (GAAP basis).$ 22,160,000 $ 18,188,000
Amounts under non-cancellable contracts for which the Company does not yet have the contractual right to bill at the period end (A). 27,345,000 22,519,000
Aggregate Revenue Under Contract$ 49,505,000 $ 40,707,000

(A) Amounts are billable subsequent to September 30 of each year and represent (i) non-cancellable contracts for subscribers with multi-year subscriptions where the future years are not yet billable, or (ii) subscribers with non-cancellable annual subscriptions with interim billing terms.

Included in Aggregate Revenue Under Contract at September 30, 2015 was approximately $33,883,000 related to amounts under contract for the forward twelve month period through September 30, 2016. The remainder reflects amounts under contract beyond September 30, 2016. The forward twelve month Aggregate Revenue Under Contract amount is approximately 71.5% of revenue on a trailing twelve month basis at September 30, 2015 of approximately $47,410,000. For comparison purposes, at September 30, 2014, the forward twelve month Aggregate Revenue Under Contract was $27,318,000 and approximately 68.6% of revenue.

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.

2015 Reis Services EBITDA Performance

Reis Services EBITDA for the three months ended September 30, 2015 was $4,910,000, an increase of $625,000, or 14.6%, over the third quarter 2014 amount. The Reis Services EBITDA increase over the corresponding prior quarterly period is the 20th consecutive quarterly increase in Reis Services EBITDA over the prior year’s quarter. Reis Services EBITDA for the nine months ended September 30, 2015 was $15,597,000, an increase of $3,155,000, or 25.4%, over the comparable 2014 nine month period. These increases were primarily derived from the increases in revenue, including the revenue related to the custom portfolio and advisory services in the second quarter of 2015, as described above. Operating expenses grew by 16.9% and 16.1% in the three and nine months ended September 30, 2015 as a result of increases in compensation and related costs from hiring, marketing initiatives and professional fees. On a consecutive quarter basis, Reis Services EBITDA decreased $1,183,000 or 19.4%, from the second quarter of 2015 to the third quarter of 2015 which was derived from the decrease in revenue from the second quarter of 2015 to the third quarter of 2015.

Investment in our business remains a priority. Our employee headcount in the sales and operational groups is expected to increase in the remainder of 2015 and 2016 and we expect to accelerate our marketing initiatives that were set in place in the latter part of 2014. These are sound investments that will further differentiate Reis in the world of U.S. commercial real estate market information providers. These continuing investments may cause temporary declines in our EBITDA margins in the fourth quarter of 2015 and into 2016, but we believe that any declines will be temporary as we expect that these investments will result in additional revenue opportunities for Reis in the future.

Reconciliations of Income from Continuing Operations to EBITDA and Adjusted EBITDA

We define EBITDA as earnings (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. However, 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. EBITDA and Adjusted EBITDA are presented both for the Reis Services segment 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 segment. 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. 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)
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Three Months Ended September 30, 2015
By Segment
Reis Services
Other (A)
Consolidated
Income from continuing operations $ 1,508
Income tax expense 920
Income (loss) before income taxes and discontinued operations $ 3,498 $ (1,070) 2,428
Add back:
Depreciation and amortization expense. 1,395 2 1,397
Interest expense, net 17 17
EBITDA 4,910 (1,068) 3,842
Add back:
Stock based compensation expense 449 449
Adjusted EBITDA $ 4,910 $ (619) $ 4,291


(amounts in thousands)
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Three Months Ended September 30, 2014
By Segment
Reis Services
Other (A)
Consolidated
Income from continuing operations $ 1,130
Income tax expense 743
Income (loss) before income taxes and discontinued operations $ 2,924 $ (1,051) 1,873
Add back:
Depreciation and amortization expense. 1,339 2 1,341
Interest expense, net 22 22
EBITDA 4,285 (1,049) 3,236
Add back:
Stock based compensation expense, net 437 437
Adjusted EBITDA $ 4,285 $ (612) $ 3,673


Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Nine Months Ended September 30, 2015
By Segment
Reis Services
Other (A)
Consolidated
Income from continuing operations $ 5,729
Income tax expense 2,315
Income (loss) before income taxes and discontinued operations $ 11,434 $ (3,390) 8,044
Add back:
Depreciation and amortization expense. 4,105 7 4,112
Interest expense, net 58 58
EBITDA 15,597 (3,383) 12,214
Add back:
Stock based compensation expense. 1,338 1,338
Adjusted EBITDA $ 15,597 $ (2,045) $ 13,552
Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Nine Months Ended September 30, 2014
By Segment
Reis Services
Other (A)
Consolidated
Income from continuing operations $ 3,092
Income tax expense 2,074
Income (loss) before income taxes and discontinued operations $ 8,486 $ (3,320) 5,166
Add back:
Depreciation and amortization expense. 3,887 7 3,894
Interest expense, net 69 69
EBITDA 12,442 (3,313) 9,129
Add back:
Stock based compensation expense, net 1,307 1,307
Adjusted EBITDA $ 12,442 $ (2,006) $ 10,436


Reconciliation of Income from Continuing Operations to EBITDA and
Adjusted EBITDA for the Three Months Ended June 30, 2015
By Segment
Reis Services
Other (A)
Consolidated
Income from continuing operations $ 2,928
Income tax expense 601
Income (loss) before income taxes and discontinued operations $ 4,688 $ (1,159) 3,529
Add back:
Depreciation and amortization expense. 1,385 3 1,388
Interest expense, net 20 20
EBITDA 6,093 (1,156) 4,937
Add back:
Stock based compensation expense. 443 443
Adjusted EBITDA $6,093 $ (713) $ 5,380

(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.

Discontinued Operations

Income from discontinued operations was $137,000 and $1,204,000 for the three and nine months ended September 30, 2015, respectively, primarily a result of $414,000 and $2,764,000 of recoveries from insurers, sub-contractors and other parties involved with the Company’s former Gold Peak project in the three and nine months ended September 30, 2015, respectively.

Recovery efforts from the fourth quarter of 2012 through September 30, 2015 have resulted in cash collections aggregating approximately $3,583,000. There is no assurance that the Company will be successful in any of its additional recovery efforts.

Investor Conference Call

The Company will host a conference call on Thursday, October 29, 2015, 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 third quarter 2015 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 66701617, or “Reis.” A replay of the conference call will be available from shortly after the conference call through midnight (EDT) on October 31, 2015 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: 66701617, or “Reis”. An audio webcast of the conference call will also be available on Reis’s website at investor.reis.com/events.cfm 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, seniors housing and student 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, revenue, expenses, margins, 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, margins, 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 (as defined herein), Adjusted EBITDA (as defined herein) 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, 2014, and in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, 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, and are 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
September 30, 2015
December 31, 2014
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents.$ 25,958,663 $ 17,745,077
Restricted cash and investments 212,268 212,625
Accounts receivable, net 8,515,387 12,627,063
Prepaid and other assets 5,982,382 4,164,320
Assets attributable to discontinued operations 3,500
Total current assets 40,668,700 34,752,585
Furniture, fixtures and equipment, net of accumulated depreciation of $2,383,986 and $2,158,647, respectively 776,409 850,866
Intangible assets, net of accumulated amortization of $37,379,864 and $33,589,746, respectively. 15,346,220 14,681,410
Deferred tax asset, non-current portion, net 14,928,737 18,638,737
Goodwill 54,824,648 54,824,648
Other assets 171,729 139,797
Total assets$ 126,716,443 $ 123,888,043
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of debt.$ $
Accrued expenses and other liabilities 4,735,203 4,170,687
Deferred revenue 22,160,450 22,885,287
Liabilities attributable to discontinued operations 293,315 299,025
Total current liabilities 27,188,968 27,354,999
Other long-term liabilities. 285,481 419,638
Total liabilities 27,474,449 27,774,637
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.02 par value per share, 101,000,000 shares authorized, 11,248,905 and 11,156,571 shares issued and outstanding, respectively 224,978 223,131
Additional paid in capital 106,549,953 105,605,803
Retained earnings (deficit) (7,532,937) (9,715,528)
Total stockholders’ equity 99,241,994 96,113,406
Total liabilities and stockholders’ equity$ 126,716,443 $ 123,888,043



REIS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2015 2014 2015 2014
Subscription revenue$ 12,137,228 $ 10,468,941 $ 36,684,041 $ 30,609,361
Cost of sales of subscription revenue 2,363,635 2,072,977 6,683,601 5,963,564
Gross profit. 9,773,593 8,395,964 30,000,440 24,645,797
Operating expenses:
Sales and marketing 2,804,498 2,573,236 8,918,285 7,666,463
Product development 925,673 945,444 2,678,114 2,522,572
General and administrative expenses. 3,598,697 2,981,806 10,301,919 9,221,399
Total operating expenses 7,328,868 6,500,486 21,898,318 19,410,434
Other income (expenses):
Interest and other income 11,300 6,262 26,894 15,391
Interest expense (28,352) (28,352) (84,848) (84,848)
Total other income (expenses) (17,052) (22,090) (57,954) (69,457)
Income before income taxes and discontinued operations 2,427,673 1,873,388 8,044,168 5,165,906
Income tax expense 920,000 743,000 2,315,000 2,074,000
Income from continuing operations 1,507,673 1,130,388 5,729,168 3,091,906
Income (loss) from discontinued operations, net of income tax expense (benefit) of $89,000, $(34,000), $797,000 and $(351,000) respectively 136,753 (50,287) 1,203,833 (520,904)
Net income$ 1,644,426 $ 1,080,101 $ 6,933,001 $ 2,571,002
Per share amounts – basic:
Income from continuing operations$ 0.13 $ 0.10 $ 0.51 $ 0.28
Net income$ 0.15 $ 0.10 $ 0.62 $ 0.23
Per share amounts – diluted:
Income from continuing operations$ 0.13 $ 0.10 $ 0.49 $ 0.27
Net income$ 0.14 $ 0.09 $ 0.59 $ 0.22
Weighted average number of common shares outstanding:
Basic 11,236,188 11,119,165 11,218,759 11,067,030
Diluted 11,721,200 11,653,268 11,693,448 11,556,333
Dividends declared per common share$ 0.14 $ 0.11 $ 0.42 $ 0.22

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

Source:Reis, Inc.