x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
(State
of incorporation)
|
13-3895178
(I.R.S.
Employer Identification Number)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨ (Do
not check if a smaller reporting company)
|
Smaller
reporting company ¨
|
Page
Number
|
||
PART
I – FINANCIAL INFORMATION
|
||
ITEM
1:
|
Financial
Statements (Unaudited):
|
|
Condensed
Consolidated Balance Sheets as of March 31, 2009 and December 31,
2008
|
4
|
|
Condensed
Consolidated Statements of Operations for the three months ended March 31,
2009 and 2008
|
5
|
|
Condensed
Consolidated Statements of Cash Flows for the three months ended March 31,
2009 and 2008
|
6
|
|
Notes
to Condensed Consolidated Financial Statements
|
7
|
|
ITEM
2:
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
18
|
ITEM
3:
|
Quantitative
and Qualitative Disclosures About Market Risk
|
26
|
ITEM
4:
|
Controls
and Procedures
|
27
|
PART
II – OTHER INFORMATION
|
||
ITEM
1:
|
Legal
Proceedings
|
28
|
ITEM1A:
|
Risk
Factors
|
28
|
ITEM
2:
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
29
|
ITEM
6:
|
Exhibits
|
29
|
SIGNATURES
|
|
30
|
ITEM
1.
|
Financial
Statements
|
THE
KNOT, INC.
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(amounts
in thousands, except for share and per share data)
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash and cash
equivalents
|
$ | 71,692 | $ | 61,488 | ||||
Short-term
investments
|
2,999 | 12,987 | ||||||
Accounts
receivable, net of allowances of $2,723 and $1,161 at March 31, 2009 and
December 31, 2008, respectively
|
9,371 | 9,381 | ||||||
Accounts
receivable from affiliate
|
967 | 351 | ||||||
Inventories
|
2,429 | 2,087 | ||||||
Deferred production and marketing
costs
|
491 | 519 | ||||||
Deferred tax assets, current
portion
|
2,322 | 2,310 | ||||||
Other current
assets
|
2,453 | 2,270 | ||||||
Total current
assets
|
92,724 | 91,393 | ||||||
Long-term
investments
|
47,834 | 48,974 | ||||||
Property and equipment,
net
|
7,489 | 8,331 | ||||||
Intangible assets,
net
|
22,464 | 23,686 | ||||||
Goodwill
|
37,864 | 34,607 | ||||||
Deferred tax
assets
|
21,737 | 22,160 | ||||||
Other
assets
|
197 | 201 | ||||||
Total
assets
|
$ | 230,309 | $ | 229,352 | ||||
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts payable and accrued
expenses
|
$ | 9,001 | $ | 8,648 | ||||
Deferred
revenue
|
12,863 | 11,760 | ||||||
Total current
liabilities
|
21,864 | 20,408 | ||||||
Deferred tax
liabilities
|
9,522 | 10,236 | ||||||
Other
liabilities
|
330 | 360 | ||||||
Total
liabilities
|
31,716 | 31,004 | ||||||
Stockholders’
equity:
|
||||||||
Common stock, $.01 par value;
100,000,000 shares authorized and 33,727,071 and 32,341,172
shares issued and outstanding at March 31, 2009 and December 31, 2008,
respectively
|
337 | 323 | ||||||
Additional
paid-in-capital
|
202,344 | 200,822 | ||||||
Accumulated
deficit
|
(4,088 | ) | (2,797 | ) | ||||
Total stockholders’
equity
|
198,593 | 198,348 | ||||||
Total liabilities and
stockholders’ equity
|
$ | 230,309 | $ | 229,352 |
See
accompanying Notes to Condensed Consolidated Financial
Statements
|
THE
KNOT, INC.
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(amounts
in thousands, except for per share data)
|
||||||||
(unaudited)
|
||||||||
|
||||||||
Three
Months Ended March 31,
|
||||||||
|
2009
|
2008
|
||||||
|
||||||||
Net
revenues:
|
||||||||
Online sponsorship and
advertising
|
$ | 12,823 | $ | 12,910 | ||||
Registry
services
|
1,718 | 1,778 | ||||||
Merchandise
|
5,166 | 4,594 | ||||||
Publishing and
other
|
4,010 | 4,519 | ||||||
Total net
revenues
|
23,717 | 23,801 | ||||||
Cost of
revenue:
|
||||||||
Online sponsorship and
advertising
|
675 | 523 | ||||||
Merchandise
|
2,451 | 2,104 | ||||||
Publishing and
other
|
1,732 | 1,844 | ||||||
Total cost of
revenues
|
4,858 | 4,471 | ||||||
|
||||||||
Gross
profit
|
18,859 | 19,330 | ||||||
|
||||||||
Operating
expenses:
|
||||||||
Product and content
development
|
5,173 | 4,952 | ||||||
Sales and
marketing
|
7,956 | 7,579 | ||||||
General and
administrative
|
5,405 | 4,809 | ||||||
Depreciation and
amortization
|
2,646 | 2,201 | ||||||
Total operating
expenses
|
21,180 | 19,541 | ||||||
Loss from
operations
|
(2,321 | ) | (210 | ) | ||||
Interest and other income,
net
|
303 | 1,202 | ||||||
(Loss) income before income
taxes
|
(2,018 | ) | 992 | |||||
(Benefit) provision for income
taxes
|
(727 | ) | 413 | |||||
Net (loss)
income
|
$ | (1,291 | ) | $ | 579 | |||
|
||||||||
Net
(loss) earnings per share:
|
||||||||
Basic
|
$ | (0.04 | ) | $ | 0.02 | |||
Diluted
|
$ | (0.04 | ) | $ | 0.02 | |||
|
||||||||
Weighted
average number of shares used in calculating net earnings per
share
|
||||||||
Basic
|
31,878 | 31,252 | ||||||
Diluted
|
31,878 | 32,613 |
See
accompanying Notes to Condensed Consolidated Financial
Statements
|
THE
KNOT, INC.
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(amounts
in thousands)
|
||||||||
(unaudited)
|
||||||||
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
CASH FLOWS FROM OPERATING
ACTIVITIES
|
||||||||
Net (loss)
income
|
$ | (1,291 | ) | $ | 579 | |||
Adjustments to reconcile net
(loss) income to net cash provided by operating
activities:
|
||||||||
Depreciation and
amortization
|
1,425 | 1,254 | ||||||
Amortization of
intangibles
|
1,221 | 928 | ||||||
Stock-based
compensation
|
1,018 | 747 | ||||||
Deferred income
taxes
|
(727 | ) | 255 | |||||
Excess tax benefits from
stock-based awards
|
425 | - | ||||||
Reserve for
returns
|
1,077 | 1,807 | ||||||
Realized gain on value of auction
rate securities
|
(64 | ) | - | |||||
Allowance for doubtful
accounts
|
519 | 107 | ||||||
Other non-cash
charges
|
(79 | ) | (19 | ) | ||||
Changes in operating assets and
liabilities:
|
||||||||
Increase in accounts
receivable
|
(1,586 | ) | (1,100 | ) | ||||
(Increase) decrease in accounts
receivable from affiliate
|
(615 | ) | 73 | |||||
Increase
in inventories
|
(266 | ) | (193 | ) | ||||
Decrease
(increase) in deferred production and marketing costs
|
28 | (69 | ) | |||||
Increase in other current
assets
|
(183 | ) | (251 | ) | ||||
Decrease in other
assets
|
4 | 17 | ||||||
Increase (decrease) in accounts
payable and accrued expenses
|
297 | (14 | ) | |||||
Increase in deferred
revenue
|
1,103 | 1,895 | ||||||
Decrease in other
liabilities
|
(31 | ) | (22 | ) | ||||
Net cash provided by operating
activities
|
2,275 | 5,994 | ||||||
CASH FLOWS FROM
INVESTING ACTIVITIES
|
||||||||
Purchases of property and
equipment
|
(575 | ) | (2,377 | ) | ||||
Purchases of short-term
investments
|
- | (64 | ) | |||||
Proceeds from sales/maturities of
short-term investments
|
9,992 | 13,937 | ||||||
Redemptions (purchases) of
long-term investments
|
1,200 | (39,600 | ) | |||||
Proceeds from sales/maturities of
long-term investments
|
- | 39,375 | ||||||
Acquisition
of business, net of cash acquired
|
(3,206 | ) | (1,354 | ) | ||||
Net cash provided by investing
activities
|
7,411 | 9,917 | ||||||
CASH FLOWS FROM
FINANCING ACTIVITIES
|
||||||||
Proceeds
from issuance of common stock
|
149 | 218 | ||||||
Proceeds
from exercise of stock options
|
846 | 666 | ||||||
Excess
tax benefits from stock-based awards
|
(425 | ) | - | |||||
Repurchase
of common stock
|
(52 | ) | (53 | ) | ||||
Net cash provided by financing
activities
|
518 | 831 | ||||||
Increase
in cash and cash equivalents
|
10,204 | 16,742 | ||||||
Cash
and cash equivalents at beginning of period
|
61,488 | 33,127 | ||||||
Cash
and cash equivalents at end of period
|
$ | 71,692 | $ | 49,869 | ||||
|
||||||||
Supplemental
information:
|
||||||||
Cash
paid for interest
|
$ | - | $ | 1 | ||||
Cash
paid for income taxes
|
$ | 176 | $ | 355 | ||||
|
||||||||
Cash
paid for acquisitions
|
$ | (3,206 | ) | $ | (1,362 | ) | ||
Cash
acquired in acquisitions
|
- | 8 | ||||||
|
$ | (3,206 | ) | $ | (1,354 | ) |
See
accompanying Notes to Condensed Consolidated Financial
Statements
|
1.
|
Organization and Basis of
Presentation
|
2.
|
Fair Value
Measurements
|
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Cash and cash
equivalents
|
||||||||
Cash
|
$ | 7,775 | $ | 3,623 | ||||
Money market
funds
|
7,457 | 13,023 | ||||||
US Treasury
bill
|
9,999 | - | ||||||
Commercial
paper
|
46,461 | 44,842 | ||||||
Subtotal cash and cash
equivalents
|
71,692 | 61,488 | ||||||
Short-term
investments
|
||||||||
Auction rate
securities
|
2,999 | 2,995 | ||||||
US Treasury
bill
|
- | 9,992 | ||||||
Subtotal short-term
investments
|
2,999 | 12,987 | ||||||
Long-term
investments
|
||||||||
Auction rate
securities
|
47,834 | 48,974 | ||||||
Total cash and cash equivalents
and investments
|
$ | 122,525 | $ | 123,449 |
Amount
|
||||
(in
thousands)
|
||||
Balance at December 31,
2008
|
$ | 51,969 | ||
Redemptions, at
par
|
(1,200 | ) | ||
Change in fair value of ARS
portfolio
|
1,850 | |||
Change in fair value of ARS
Right
|
(1,786 | ) | ||
Balance at March 31,
2009
|
$ | 50,833 |
3.
|
Stock-Based
Compensation
|
Three
Months Ended March 31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Product and content
development
|
$ | 307 | $ | 177 | ||||
Sales and
marketing
|
262 | 190 | ||||||
General and
administrative
|
449 | 380 | ||||||
Total stock-based
compensation
|
$ | 1,018 | $ | 747 |
Shares
|
Weighted
Average Exercise Price
|
|||||||
(in
thousands)
|
||||||||
Options outstanding at December
31, 2008
|
1,496 | $ | 6.04 | |||||
Options
exercised
|
(408 | ) | 2.87 | |||||
Options
canceled
|
(43 | ) | 17.74 | |||||
Options outstanding at March 31,
2009
|
1,045 | $ | 6.80 |
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||
Range
of
Exercise
Price
|
Number
Outstanding
as of March 31, 2009
|
Weighted
Average
Remaining
Contractual
Life
(in Years)
|
Weighted
Average
Exercise
Price
|
Number
Exercisable
as
of
March
31, 2009
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||
(in
thousands)
|
(in
thousands)
|
|||||||||||||||||||||
|
$0.42
to $1.03
|
256 | 1.82 | $ | 0.94 | 256 | $ | 0.94 | ||||||||||||||
|
$1.37 to
$4.10
|
504 | 4.32 | 3.30 | 504 | 3.30 | ||||||||||||||||
|
$18.26
|
|
285 | 3.16 | 18.26 | 95 | 18.26 | |||||||||||||||
1,045 | 3.39 | $ | 6.80 | 855 | $ | 4.25 |
Shares
|
Weighted
Average Exercise Price
|
|||||||
(in
thousands)
|
||||||||
Nonvested options outstanding at
December 31, 2008
|
190 | $ | 18.26 | |||||
Vested
|
- | - | ||||||
Canceled
|
- | - | ||||||
Nonvested options outstanding at
March 31, 2009
|
190 | $ | 18.26 |
Three
Months Ended March 31,
|
||||
2009
|
2008
|
|||
Weighted average expected
lives
|
0.50
years
|
0.50
years
|
||
Risk-free
rate
|
0.36%
|
2.15%
|
||
Expected
volatility
|
44.6%
|
44.6%
|
||
Dividend
yield
|
0%
|
0%
|
4.
|
Comprehensive
Loss
|
Three Months Ended March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Net
(loss) income
|
$ | (1,291 | ) | $ | 579 | |||
Unrealized loss on auction rate
securities
|
- | (1,067 | ) | |||||
Comprehensive
loss
|
$ | (1,291 | ) | $ | (488 | ) |
5.
|
Inventory
|
March
31,
2009
|
December
31,
2008
|
|||||||
(in
thousands)
|
||||||||
Inventory
|
||||||||
Raw
materials
|
$ | 518 | $ | 366 | ||||
Finished
goods
|
1,911 | 1,721 | ||||||
Total inventory,
net
|
$ | 2,429 | $ | 2,087 |
6.
|
Goodwill and Other Intangible
Assets
|
Amount
|
||||
(in
thousands)
|
||||
Balance at December 31,
2008
|
$ | 34,608 | ||
WedSnap acquisition (see Note 8),
including foreign exchange impact
|
3,256 | |||
Balance at March 31,
2009
|
$ | 37,864 |
March
31, 2009
|
December
31, 2008
|
|||||||||||||||||||||||
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Cost
|
Gross
Carrying Amount
|
Accumulated
Amortization
|
Net
Cost
|
|||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||
Indefinite lived intangible
assets:
|
||||||||||||||||||||||||
Tradenames
|
$ | 11,851 | $ | - | $ | 11,851 | $ | 11,851 | $ | - | $ | 11,851 | ||||||||||||
Definite lived intangible
assets:
|
||||||||||||||||||||||||
Customer and advertiser
relationships
|
5,709 | (2,213 | ) | 3,496 | 5,709 | (1,769 | ) | 3,940 | ||||||||||||||||
Developed technology and
patents
|
12,280 | (6,297 | ) | 5,983 | 12,280 | (5,683 | ) | 6,597 | ||||||||||||||||
Trademarks and
tradenames
|
129 | (102 | ) | 27 | 129 | (96 | ) | 33 | ||||||||||||||||
Service contracts and
other
|
3,328 | (2,221 | ) | 1,107 | 3,328 | (2,063 | ) | 1,265 | ||||||||||||||||
21,446 | (10,833 | ) | 10,613 | 21,446 | (9,611 | ) | 11,835 | |||||||||||||||||
Total
|
$ | 33,297 | $ | (10,833 | ) | $ | 22,464 | $ | 33,297 | $ | (9,611 | ) | $ | 23,686 |
Customer
and advertiser relationships
|
2
to 10 years
|
Developed
technology and patents
|
5
years
|
Trademarks
and tradenames
|
3
to 5 years
|
Service
contracts and other
|
1
to 7 years
|
7.
|
Commitments
and Contingencies
|
8.
|
Acquisition
|
Assets
and Liabilities Acquired
|
Amount
|
|||
(in
thousands)
|
||||
Current
assets
|
$ | 2 | ||
Property
and equipment
|
8 | |||
Goodwill
|
3,253 | |||
Total
assets acquired
|
3,263 | |||
Current
liabilities
|
57 | |||
Total
liabilities assumed
|
57 | |||
Total
estimated cost
|
$ | 3,206 |
9.
|
Income
Taxes
|
10.
|
Earnings
Per Share
|
|
─
|
Upgrade
our technology to increase our operational efficiency so that we can
access a greater market share of advertising dollars and commerce revenue
in the weddings portion of our business. We developed a new content
management system that allows us to more efficiently maintain and organize
information on our websites. Our new local contract entry system and
surrounding support applications under development will allow greater
pricing flexibility, which we believe will allow us to expand our local
vendor base, as well as achieve operational efficiencies, providing
additional time for our local sales force to pursue new
accounts. In addition to the new contract entry system, we are
in the process of converting our existing local art management application
off of our legacy AS/400 system. We currently believe that these local
systems projects will be completed and rolled out across the local markets
we serve through the end of 2009. We then expect to proceed
with further projects involving a self-service platform that will allow
local vendors to automatically select their advertising programs and an
auction-based platform for selling featured vendor positions in the local
areas on our websites. We are working to enhance the functionality of our
patented wedding gift registry application to encompass a wide selection
of items and retailers improving the ability of our users to seamlessly
add items from multiple retailers to their wish list and complete
transactions. We expect that these new programs will allow us to more
effectively scale our local and registry business and drive further growth
for local online and registry
revenue.
|
|
─
|
Expand
our brands into the newlywed and first pregnancy lifestages. Our
acquisition of The Bump Media in February 2008 and Breastfeeding.com in
December 2008 are designed to reduce our reliance on bridal endemic
advertising, which is an important part of our strategy for increasing
national online advertising revenue. To that end, we have
increased our investments in editorial and creative staff to increase our
content offerings for these additional
lifestages.
|
|
─
|
Increase
awareness of our brands and products. We believe that we have
generally excelled at marketing to our consumers with compelling brands,
engaging content and products and a highly successful consumer public
relations program, but we have not aggressively marketed our media
offerings to advertisers. Accordingly, in 2008, we established
a new marketing team to develop trade marketing programs and supporting
research aimed at the local vendor community and national advertising
marketplace as a foundation to drive further national and local
advertising revenue growth. This team will also be involved in launching
programs to increase registry searches and transactions from which we
would derive commission revenue, as well as to increase revenue of our
wedding supplies business through opportunistic acquisitions and improved
conversion of our members to customers of our online
stores.
|
|
─
|
Expand
our brands internationally. We are focused on identifying
opportunities in large international markets where we can use our brand
recognition and editorial authority on the key lifestages of engagement,
newlywed and first-time pregnancy to drive further
growth.
|
|
·
|
Total
net revenues decreased 0.4% to $23.7
million.
|
|
·
|
National
online advertising revenue decreased 9.3% to $4.2
million.
|
|
·
|
Local
online advertising revenue increased 4.2% to $8.6
million.
|
|
·
|
Merchandise
revenue increased 12.4% to $5.2
million.
|
|
·
|
Publishing
and other revenue and registry services revenue and declined by 11.3% and
3.4% to $4.0 million and $1.7 million,
respectively.
|
|
·
|
Total
operating expenses increased by 8.4% to $21.2 million. The
increase in operating expenses is primarily related to employee
compensation associated with headcount increases in mid-2008, operating
expenses associated with both the Breastfeeding.com and WedSnap
acquisitions, transaction expenses related to the acquisition of WedSnap,
bad debt expense and accelerated amortization of the Macy’s relationship
intangible asset.
|
|
·
|
Stock-based
compensation expense increased 36.3% to $1.0 million. The increase was
primarily due to restricted stock awards granted over the past twelve
months.
|
·
|
Interest income declined by $900,000 this quarter from the first quarter of 2008 due to lower interest rates earned on our cash and investments. |
|
·
|
Net
loss for the first quarter was $1.3 million, or $0.04 per basic and per
diluted share, compared to net income of $579,000, or $0.02 per basic and
diluted share in the first quarter of
2008.
|
|
·
|
At
March 31, 2009 we had total cash, cash equivalents, and investments of
$122.5 million. Cash and cash equivalents were $71.7 million, short-term
investments were $3.0 million and long-term investments were $47.8
million. Investments consisted entirely of auction rate
securities.
|
|
·
|
At
March 31, 2009 we had no debt.
|
Three
Months Ended March 31,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Amount
|
%
of Net Revenue
|
Amount
|
%
of Net Revenue
|
|||||||||||||
(in
thousands, except for per share data)
|
||||||||||||||||
Net
revenues
|
$ | 23,717 | 100.0 | % | $ | 23,801 | 100.0 | % | ||||||||
Cost of
revenues
|
4,858 | 20.5 | 4,471 | 18.8 | ||||||||||||
Gross
profit
|
18,859 | 79.5 | 19,330 | 81.2 | ||||||||||||
Operating
expenses
|
21,180 | 89.3 | 19,540 | 82.1 | ||||||||||||
Loss from
operations
|
(2,321 | ) | (9.8 | ) | (210 | ) | (0.9 | ) | ||||||||
Interest and other income,
net
|
303 | 1.3 | 1,202 | 5.1 | ||||||||||||
(Loss) income before income
taxes
|
(2,018 | ) | (8.5 | ) | 992 | 4.2 | ||||||||||
(Benefit) provision for income
taxes
|
(727 | ) | (3.1 | ) | 413 | 1.8 | ||||||||||
Net (loss)
income
|
$ | (1,291 | ) | (5.4 | )% | $ | 579 | 2.4 | % | |||||||
Net
(loss) earnings per share:
|
||||||||||||||||
Basic
|
$ | (0.04 | ) | $ | 0.02 | |||||||||||
Diluted
|
$ | (0.04 | ) | $ | 0.02 |
Three
Months Ended March 31,
|
||||||||||||||||||||
Net
Revenue
|
Percentage
of
Total
Net Revenue
|
|||||||||||||||||||
2009
|
2008
|
Percentage
Increase/
(Decrease)
|
2009
|
2008
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
National online sponsorship and
advertising
|
$ | 4,231 | $ | 4,665 | (9.3 | ) % | 17.8 | % | 19.6 | % | ||||||||||
Local online sponsorship and
advertising
|
8,592 | 8,245 | 4.2 | 36.3 | 34.6 | |||||||||||||||
Total online sponsorship and
advertising
|
12,823 | 12,910 | (0.7 | ) | 54.1 | 54.2 | ||||||||||||||
Registry
services
|
1,718 | 1,778 | (3.4 | ) | 7.2 | 7.5 | ||||||||||||||
Merchandise
|
5,166 | 4,594 | 12.4 | 21.8 | 19.3 | |||||||||||||||
Publishing and
other
|
4,010 | 4,519 | (11.3 | ) | 16.9 | 19.0 | ||||||||||||||
Total net
revenues
|
$ | 23,717 | $ | 23,801 | (0.4 | ) % | 100.0 | % | 100.0 | % |
Three
Months Ended March 31,
|
||||||||||||||||||||||||
2009
|
2008
|
Increase/(Decrease)
|
||||||||||||||||||||||
Gross
Profit
|
Gross
Margin
%
|
Gross
Profit
|
Gross
Margin
%
|
Gross
Profit
|
Gross
Margin
%
|
|||||||||||||||||||
(in
thousands)
|
||||||||||||||||||||||||
Online sponsorship and
advertising (national &
local)
|
$ | 12,209 | 95.2 | % | $ | 12,388 | 96.0 | % | $ | (179 | ) | (0.8 | ) % | |||||||||||
Registry
|
1,718 | 100.0 | 1,778 | 100.0 | (60 | ) | - | |||||||||||||||||
Merchandise
|
2,715 | 52.6 | 2,490 | 54.2 | 225 | (1.6 | ) | |||||||||||||||||
Publishing and
other
|
2,217 | 55.3 | 2,674 | 59.2 | (457 | ) | (3.9 | ) | ||||||||||||||||
Total gross
profit
|
$ | 18,859 | 79.5 | % | $ | 19,330 | 81.2 | % | $ | (471 | ) | (1.7 | ) % |
Three
Months Ended March 31,
|
||||||||||||||||||||
Operating
Expenses
|
Percentage
of
Total
Net Revenue
|
|||||||||||||||||||
2009
|
2008
|
Percentage
Increase/
(Decrease)
|
2009
|
2008
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
Product and content
development
|
$ | 5,173 | $ | 4,952 | 4.5 | % | 21.8 | % | 20.8 | % | ||||||||||
Sales and
marketing
|
7,956 | 7,579 | 5.0 | 33.5 | 31.8 | |||||||||||||||
General and
administrative
|
5,405 | 4,809 | 12.4 | 22.8 | 20.2 | |||||||||||||||
Depreciation and
amortization
|
2,646 | 2,201 | 20.2 | 11.2 | 9.3 | |||||||||||||||
Total operating
expenses
|
$ | 21,180 | $ | 19,541 | 8.4 | % | 89.3 | % | 82.1 | % |
For
the Three Months Ended
March
31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Net cash provided by operating
activities
|
$ | 2,275 | $ | 5,994 | ||||
Net cash provided by investing
activities
|
7,411 | 9,917 | ||||||
Net cash provided by financing
activities
|
518 | 831 | ||||||
Increase in cash and cash
equivalents
|
$ | 10,204 | $ | 16,742 |
Period
|
(a)
Total Number of Shares Purchased
|
(b)
Average Price Paid per Share
|
(
c) Total Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
(d)
Maximum Number of Shares That May Yet Be Purchased Under the Plans or
Programs
|
||||||||||||
January
1 to January 31, 2009
|
24,153 | $ | 7.11 | n/a | n/a | |||||||||||
February
1 to February 28, 2009
|
5,916 | $ | 6.81 | n/a | n/a | |||||||||||
March
1 to March 31, 2009
|
19,930 | $ | 8.65 | n/a | n/a | |||||||||||
Total
|
49,999 | - | - |
Date: May
8, 2009
|
THE
KNOT, INC.
|
||
By:
|
/s/ John P. Mueller
|
||
John
P. Mueller
Chief
Financial Officer
(Principal
Financial Officer and Duly Authorized Officer)
|
Number
|
Description
|
31.1
|
Certification
of Chairman and Chief Executive Officer Pursuant to Exchange Act Rule
13a-14(a), As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a), As
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
Certification
of Chairman and Chief Executive Officer Pursuant to 18 U.S.C. Section
1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|