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Reis, Inc. Announces Second Quarter 2017 Results

NEW YORK, Aug. 01, 2017 (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 for the second quarter ended June 30, 2017.

Financial Highlights

Total revenue was $11.7 million for the three months ended June 30, 2017, which included subscription revenue of $11.4 million and other revenue of $0.3 million. Total revenue in the second quarter of 2016 was $11.6 million, which included $11.4 million of subscription revenue and $0.2 million of other revenue. Total revenue in the six months ended June 30, 2017 was $23.8 million, which included $23.0 million of subscription revenue and $0.8 million of other revenue. Total revenue in the six months ended June 30, 2016 was $24.4 million, which included $22.8 million of subscription revenue and $1.6 million of other revenue. Subscription revenue in 2017’s second quarter and in the six months ended June 30, 2017 grew 0.5% and 0.9%, respectively, over the corresponding 2016 periods. The second quarter 2017 marks the first quarter since March 2016 in which the Company posted total revenue growth on a year over year basis.

Net income was $0.4 million, or $0.03 per diluted share, for the three months ended June 30, 2017 as compared to net income of $0.9 million, or $0.08 per diluted share, for the corresponding 2016 period. Net income was $0.9 million, or $0.08 per diluted share, for the six months ended June 30, 2017 as compared to net income of $2.5 million, or $0.22 per diluted share, for the corresponding 2016 period.

Reis Services EBITDA was $3.5 million during the second quarter of 2017, a decline from the second quarter 2016 reported amount of $4.1 million. The Reis Services EBITDA margins were 29.9% and 35.5% for the three months ended June 30, 2017 and 2016, respectively (see the “Supplemental Financial Information and Reconciliations from GAAP to Non-GAAP Metrics” section at the end of this earnings release for a definition and reconciliations of net income to EBITDA and Adjusted EBITDA for the Reis Services segment and on a consolidated basis). Reis Services EBITDA was $6.8 million for the six months ended June 30, 2017 as compared to the 2016 reported amount of $9.5 million. The Reis Services EBITDA margins were 28.5% and 38.9% for the six months ended June 30, 2017 and 2016, respectively.

Consolidated Adjusted EBITDA was $3.1 million during the second quarter of 2017, a decline from the second quarter 2016 reported amount of $3.7 million. The consolidated Adjusted EBITDA margins were 26.4% and 31.4% for the three months ended June 30, 2017 and 2016, respectively. Consolidated Adjusted EBITDA was $5.7 million for the six months ended June 30, 2017 as compared to the 2016 reported amount of $8.3 million. The consolidated Adjusted EBITDA margins were 23.8% and 33.9% for the six months ended June 30, 2017 and 2016, respectively.

Reis’s CEO, Lloyd Lynford, stated, “While we didn’t have the quarter we expected, Reis did realize an important objective in the second quarter by returning to positive year-over-year revenue growth. Evidence of our progress includes an improving renewal rate, annual growth in deferred revenue of 16%, and the launch of our Application Program Interface and land sales comparables. These initiatives position the Company well, supporting my steadfast confidence that the investments we have made in 2016 and 2017 will yield measurable improvement in our operating performance.”

Product Highlights

The significant expected contributors to sales growth throughout 2017 and as we enter 2018 will come from Reis’s recently expanded affordable housing database, the enhancements to our sales transactions database, including the addition of land transactions as of July 31, 2017 and the availability of a new delivery platform in an Application Program Interface, or API.

In August 2016, Reis introduced its ninth property type, affordable housing, with information on 176 counties in 45 metropolitan areas. Reis is the first and only provider of market information on the growing affordable housing sector. This initial coverage launch was followed by our February 2017 expansion of coverage of this property type to include information on 256 counties in 110 metropolitan areas. Our sales force made significant inroads in the fourth quarter of 2016 and the first half of 2017 selling this sector to existing banking customers and directly to affordable housing investors, and will focus on building upon those successes for the remainder of 2017 and in 2018.

A larger revenue opportunity relates to the September 2016 expansion of Reis’s commercial real estate sales transactions database which now includes virtually all U.S. markets and property types, regardless of geography or sector. The new offering appeals to mortgage and property originators and underwriters, brokers and appraisers, tax assessors, and any other real estate professionals seeking the most comprehensive database of CRE transactions to source deals, search for related business, or conduct due diligence. Reis’s sales transactions database includes key structural data points, including, but not limited to, address, land use code, parcel number and lot size, in addition to key transactional data points, such as buyer and seller name, sale price, sale date, deed reference, and financing details when available, as well as other critical data points and licensed photographs. We believe that these enhancements, coupled with the inclusion of land transactions in this database as of July 31, 2017, will result in increased new sales opportunities for the remainder of 2017 and in 2018 and provides Reis’s salesforce with a product that is highly competitive and we expect will take market share from our competitors in the several hundred-million-dollar market for sales comparables.

During the second quarter of 2017, Reis completed development of an API. The API is a system that allows firms to gain access to Reis data elements directly into internal systems without going through Reis SE. For Reis, the strategic importance of the API is threefold. First, the opportunity to deliver Reis data directly into an institution’s internal systems appeals to the contract signers and executives responsible for maximizing the productivity of originators, underwriters, or analysts, replacing the need to manually re-key data into internal forms. Second, the API integrates Reis data into clients’ processes to increase adoption and heighten the probability of longer-term contractual relationships. Finally, Reis’s API is responsive to many of the challenges and opportunities stimulated by FinTech and related technologies, as well as heightened regulatory scrutiny.

Other product rollouts in 2017 include enhanced property comparables reports in our other sectors consistent with improvements made in 2016 for the apartment and office sectors. Additionally, during April 2017, Reis enhanced its Market Analytics module, a tool that empowers portfolio managers and C-level executives to look for market opportunities based on Reis’s forecasts at the market and submarket levels.

Balance Sheet, Liquidity and Other Metrics

Following are balance sheet, liquidity and other metrics reported by the Company as of June 30, 2017:

  • cash at June 30, 2017 was $18.9 million;
  • investments in the Company’s website and database intangible assets aggregated $4.5 million for the six months ended June 30, 2017 from our continuing strategy of providing more granular data at the property level;
  • dividends declared and paid quarterly to shareholders during the three and six months ended June 30, 2017 aggregated $1.97 million and $3.94 million, respectively, or a rate of $0.17 per share in each of the first and second quarters;
  • repurchases of the Company’s common stock during the second quarter of 2017 aggregated $1.0 million, for the purchase of 54,768 shares at an average price of $18.80 per share, leaving approximately $1.3 million available on our existing program to strategically purchase additional shares in the future;
  • deferred revenue ($24.2 million), Aggregate Revenue Under Contract ($48.3 million) (see the “Supplemental Financial Information and Reconciliations from GAAP to Non-GAAP Metrics” section at the end of this earnings release for a definition and reconciliations of deferred revenue to Aggregate Revenue Under Contract) and the forward twelve-month component of Aggregate Revenue Under Contract ($33.1 million) at June 30, 2017 each continue to demonstrate strong visibility into future revenue; and
  • for the trailing twelve months ended June 30, 2017, the Company’s base renewal rate (renewal rate, excluding price increases) was 85.9% and the renewal rate, including price increases, was 89.2%. These rates are improved from the reported trailing twelve month rates at December 31, 2016 of 81.6% for our base renewal rate and 85.7% for the renewal rate, including price increases.

Additional Information

This press release should be read in conjunction with the quarterly report on Form 10-Q for the quarter ended June 30, 2017, which was filed with the Securities and Exchange Commission (“SEC”) on August 1, 2017. In addition, see the “Supplemental Financial Information and Reconciliations from GAAP to Non-GAAP Metrics” section at the end of this earnings release for a definition and reconciliations of net income to EBITDA and Adjusted EBITDA for the Reis Services segment and on a consolidated basis, as well as for other information.

Investor Conference Call

The Company will host a conference call on Tuesday, August 1, 2017, 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 2017 results, management’s outlook for 2017 and other matters.

The dial-in number from inside the U.S. and 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 61112498, or “Reis.” A replay of the conference call will be available from shortly after the conference call through 2:00 PM (EDT) on August 6, 2017 by dialing (855) 859-2056 from inside the U.S. and Canada or (404) 537-3406 from outside the U.S. and Canada, and referring to the conference ID: 61112498, and “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, seniors housing, student housing and affordable 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 Reis Portfolio CRE, and other portfolio support products and services, 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, 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, net income, cash flows, renewal rates, 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 (as defined herein); 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, 2016, which was filed with the Securities and Exchange Commission (“SEC”) on March 9, 2017, 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.

Supplemental Financial Information and Reconciliations from GAAP to Non-GAAP Metrics

REIS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30,
2017

December 31,
2016
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $18,882,602 $21,490,586
Accounts receivable, net 9,308,624 10,743,505
Prepaid and other assets 741,247 792,991
Total current assets 28,932,473 33,027,082
Furniture, fixtures and equipment, net of accumulated depreciation of $1,568,556
and $1,082,793, respectively
5,374,820 5,260,443
Intangible assets, net of accumulated amortization of $45,229,777 and $41,861,561, respectively 19,081,875 17,922,282
Deferred tax asset, net 17,964,768 16,814,737
Goodwill 54,824,648 54,824,648
Other assets 256,628 295,349
Total assets $126,435,212 $128,144,541
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of debt $ $
Accrued expenses and other liabilities 3,313,580 4,031,444
Deferred revenue 24,183,184 25,031,100
Total current liabilities 27,496,764 29,062,544
Other long-term liabilities 2,614,065 1,902,081
Total liabilities 30,110,829 30,964,625
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.02 par value per share, 101,000,000 shares authorized, 11,512,485 and
11,272,150 shares issued and outstanding, respectively
230,250 225,443
Additional paid in capital 109,144,487 107,668,599
Retained earnings (deficit) (13,050,354) (10,714,126)
Total stockholders’ equity 96,324,383 97,179,916
Total liabilities and stockholders’ equity $126,435,212 $128,144,541


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


For the Three Months Ended
June 30,
For the Six Months Ended
June 30,
2017 2016 2017 2016
Revenue:
Subscription revenue $11,429,089 $11,369,420 $23,008,451 $22,797,399
Other revenue 280,131 245,250 826,723 1,641,023
Total revenue 11,709,220 11,614,670 23,835,174 24,438,422
Cost of sales 3,216,079 2,494,753 6,582,430 4,956,324
Gross profit 8,493,141 9,119,917 17,252,744 19,482,098
Operating expenses:
Sales and marketing 3,105,068 3,024,664 6,433,116 5,692,656
Product development 1,105,627 1,015,370 2,272,298 2,020,654
General and administrative expenses 3,712,557 3,536,741 7,833,041 7,621,452
Total operating expenses 7,923,252 7,576,775 16,538,455 15,334,762
Other income (expenses):
Interest and other income 1,126 5,910 1,702 14,166
Interest expense (32,372) (28,216) (64,606) (49,541)
Total other income (expenses) (31,246) (22,306) (62,904) (35,375)
Income before income taxes 538,643 1,520,836 651,385 4,111,961
Income tax expense (benefit) 141,000 580,000 (281,000) 1,567,000
Net income $397,643 $940,836 $932,385 $2,544,961
Net income per common share:
Basic $0.03 $0.08 $0.08 $0.23
Diluted $0.03 $0.08 $0.08 $0.22
Weighted average number of common shares outstanding:
Basic 11,514,123 11,321,711 11,480,900 11,302,731
Diluted 11,777,017 11,780,871 11,762,805 11,762,210
Dividends declared per common share $0.17 $0.17 $0.34 $0.34

Revenue Comparisons

In order to provide insight into 2017 and 2016 relative performance, we have disaggregated total revenue into two components: “Subscription” and “Other.” Other revenue specifically includes revenue related to contracts for one-time custom data deliverables and one-time fees for settlements of previous unauthorized usage of Reis data. The following tables present subscription revenue, other revenue and total revenue for the three and six months ended June 30, 2017 and 2016.

(amounts in thousands, excluding percentages)
For the Three Months Ended June 30,
2017
2016 Variance
$
% of Total
$
% of Total
$
%
Subscription revenue $11,429 97.6% $11,369 97.9% $60 0.5%
Other revenue (A) 280 2.4% 245 2.1% 35 14.3%
Total revenue $11,709 100.0% $11,614 100.0% $95 0.8%


For the Six Months Ended June 30,
2017 2016 Variance
$
% of Total
$
% of Total
$
%
Subscription revenue $23,008 96.5% $22,797 93.3% $211 0.9%
Other revenue (A) 827 3.5% 1,641 6.7% (814) (49.6)%
Total revenue$23,835 100.0% $24,438 100.0% $(603) (2.5)%
(A) Other revenue includes non-subscription revenue comprised of (1) non-subscription custom data deliverables and (2) one-time settlements.


Reconciliations of Net Income to EBITDA and Adjusted EBITDA

We define EBITDA as earnings (net income) 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 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), 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, net income, 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 Net Income to EBITDA and
Adjusted EBITDA for the Three Months Ended June 30, 2017
By Segment
Reis Services
Other (A)
Consolidated
Net income $397
Income tax expense 141
Income (loss) before income taxes $1,522 $(984) 538
Add back:
Depreciation and amortization expense 1,947 1,947
Interest expense (income), net 32 (1) 31
EBITDA 3,501 (985) 2,516
Add back:
Stock based compensation expense, net 575 575
Adjusted EBITDA $3,501 $(410) $3,091


Reconciliation of Net Income to EBITDA and
Adjusted EBITDA for the Three Months Ended June 30, 2016
By Segment
Reis Services
Other (A)
Consolidated
Net income $ 941
Income tax expense 580
Income (loss) before income taxes $ 2,522 $ (1,001) 1,521
Add back:
Depreciation and amortization expense 1,583 3 1,586
Interest expense, net 22 22
EBITDA 4,127 (998) 3,129
Add back:
Stock based compensation expense, net 522 522
Adjusted EBITDA $ 4,127 $ (476) $ 3,651


Reconciliation of Net Income to EBITDA and
Adjusted EBITDA for the Six Months Ended June 30, 2017
By Segment
Reis Services
Other (A)
Consolidated
Net income $ 932
Income tax (benefit) (281)
Income (loss) before income taxes $ 2,871 $ (2,220) 651
Add back:
Depreciation and amortization expense 3,855 3,855
Interest expense (income), net 64 (1) 63
EBITDA 6,790 (2,221) 4,569
Add back:
Stock based compensation expense, net 1,110 1,110
Adjusted EBITDA $ 6,790 $ (1,111) $ 5,679


Reconciliation of Net Income to EBITDA and
Adjusted EBITDA for the Six Months Ended June 30, 2016
By Segment
Reis Services
Other (A)
Consolidated
Net income $ 2,545
Income tax expense 1,567
Income (loss) before income taxes $ 6,402 $ (2,290) 4,112
Add back:
Depreciation and amortization expense 3,072 5 3,077
Interest expense, net 35 35
EBITDA 9,509 (2,285) 7,224
Add back:
Stock based compensation expense, net 1,056 1,056
Adjusted EBITDA $ 9,509 $ (1,229) $ 8,280
(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.


Deferred Revenue and Aggregate Revenue Under Contract

Two balance-sheet based 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. Aggregate Revenue Under Contract is the sum of deferred revenue and future revenue under non-cancellable contracts for which we do not yet have the contractual right to bill and excludes any future revenues expected to be derived from subscribers currently being billed on a monthly basis.

Deferred revenue will be recognized as revenue ratably over the remaining life of a contract for subscriptions, or in the case of future custom reports or projects, will be recognized as revenue upon completion and delivery to the customer, provided no significant Company obligations remain. At any given date, both deferred revenue and Aggregate Revenue Under Contract can be either positively or negatively 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. The following table reconciles deferred revenue to Aggregate Revenue Under Contract at June 30, 2017 and 2016, respectively. A comparison of these balances at June 30 of each year is more meaningful than a comparison to the December 31, 2016 balances, as a greater percentage of renewals occur in the fourth quarter of each year and would distort the analysis.

June 30,
2017 2016
Deferred revenue (GAAP basis) $ 24,183,000 $ 20,845,000
Amounts under non-cancellable contracts for which the Company does not yet have
the contractual right to bill at the period end (A)
24,163,000 21,171,000
Aggregate Revenue Under Contract $ 48,346,000 $ 42,016,000
(A) Amounts are billable subsequent to June 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 June 30, 2017 was approximately $33,136,000 related to amounts under contract for the forward twelve-month period through June 30, 2018. The remainder reflects amounts under contract beyond June 30, 2018. The forward twelve-month Aggregate Revenue Under Contract amount is approximately 70.6% of total revenue on a trailing twelve-month basis at June 30, 2017 of approximately $46,927,000. For comparison purposes, at June 30, 2016, the forward twelve-month Aggregate Revenue Under Contract was $30,572,000 and approximately 60.2% of total revenue.

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

Source:Reis, Inc.