Professional Diversity Network Reports Year End 2012 Financial Results
CHICAGO, April 1, 2013 /PRNewswire/ -- Professional Diversity Network Inc. (NASDAQ: IPDN), a developer and operator of online networks dedicated to providing access to employment for diverse professionals in the United States, today reported its financial results for the year ended December 31, 2012. The Company also filed with the Securities and Exchange Commission its annual report on Form 10-K for the year ended December 31, 2012. Shares of the Company's common stock began trading on the NASDAQ Capital Market on March 5, 2013 in an Initial Public Offering (IPO).
Total revenue for 2012 increased 11% to $6.2 million compared to $5.6 million in 2011. Net income for 2012 was $2.3 million compared to $2.8 million in 2011 reflecting PDN's investments in marketing, sales and technology as it builds its operations and infrastructure. Fully diluted earnings per share were $0.38 compared to $0.44 in 2011 based on 6,318,227 shares outstanding as of the IPO on March 5, 2013.
Through Professional Diversity Network, its 2,375,742 members can connect with employers who are seeking to hire diverse talent on the company's eight professional recruitment websites. Professional Diversity Network offers employers the nation's leading diversity recruitment products and services. The PDN team of Diversity Recruitment Consulting Specialists assist employers in more efficiently recruiting the diverse talent needed for an increasingly multicultural marketplace. On January 1, 2013, Professional Diversity Network entered into a diversity recruitment partnership agreement with LinkedIn Corporation wherein LinkedIn may sell PDN's diversity based recruitment services directly to employers.
Jim Kirsch, Chief Executive Officer, said, "As our nation recovers from the great recession, the competition for human capital is intensifying. Now and in the future, businesses must access diverse talent in order to keep pace with America's evolving multicultural majority. Our specialized networks are connecting talented candidates with employers whose core values, and future competitive advantage, depend on a diverse workforce. Our growth strategy is to expand opportunities for diverse talent and employers who seek to hire them via an effective online diversity employment marketplace. We are proud that our online professional networking and job-seeking environment directly contributes to the nation's economic recovery and the health of the diverse employment sector."
About Professional Diversity Network
Professional Diversity Network develops and operates online networks dedicated to providing access to employment for diverse professionals in the United States. Professional Diversity Network enables employers who value diversity to promote their career opportunities to diverse talent. Professional Diversity Network owns and operates professional networking communities including: www.iHispano.com for Hispanic Professionals, www.AMightyRiver.com for African American professionals, www.WomensCareerChannel.com for Female Professionals, www.Military2Career.com for Veterans, www.ProAble.com for Professionals with Disabilities, www.OutProNet.com for professionals in the Gay Community, and www.AsianCareerNetwork.com for Asian professionals.
For more information, visit: www.professionaldiversitynetwork.com
Contact:
Professional Diversity Network
Myrna Newman, CFO
312-614-0931
mnewman@prodivnet.com
Investor Relations
Aimee Gordon/Robert Jones
EVC Group
212-850-6020/646-201-5447
agordon@evcgroup.com / bjones@evcgroup.com
Media Relations
Janine McCargo
EVC Group
646-688-0425
jmccargo@evcgroup.com
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Professional Diversity Network, Inc.
BALANCE SHEET |
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December 31, |
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2012
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2011
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Current Assets: |
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Cash and cash equivalents |
$ 868,294 |
$ 2,254,431 |
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Accounts receivable |
1,923,048 |
1,604,470 |
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Marketable securities, at fair value |
251,349 |
375,156 |
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Prepaid expense |
63,982 |
- |
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Total Current Assets |
3,106,673 |
4,234,057 |
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Property and equipment, net |
34,863 |
25,789 |
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Security deposits |
23,711 |
21,568 |
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Deferred offering costs - initial public offering |
832,240 |
26,900 |
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Developed technology, net |
402,890 |
146,146 |
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Goodwill |
635,671 |
635,671 |
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Trade name |
90,400 |
90,400 |
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Total assets |
$ 5,126,448 |
$ 5,180,531 |
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Current Liabilities: |
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Accounts payable |
$ 265,013 |
$ |
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Accrued expenses |
85,327 |
254,674 |
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Deferred revenue |
500,000 |
150,000 |
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Total current liabilities |
805,340 |
404,674 |
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Notes payable - net of original issue discount of $138,256 and $211,225, as of December 31, 2012 and December 31, 2011, respectively |
1,487,900 |
1,491,488 |
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Total liabilities |
2,338,240 |
1,896,162 |
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Commitments and contingencies |
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Stockholders' Equity |
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Common stock $0.01 par value, 25,000,000 shares authorized, 3,487,847 shares issued and outstanding, as of December 31, 2012 and 2011 |
34,878 |
34,878 |
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Additional paid-in capital |
2,751,827 |
3,280,136 |
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Accumulated other comprehensive income/(loss) |
1,503 |
(30,645 ) |
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Total stockholders' equity |
2,788,208 |
3,284,369 |
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Total liabilities and stockholders' equity |
$ 5,126,448 |
$ 5,180,531 |
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Professional Diversity Network, Inc. STATEMENT OF COMPREHENSIVE INCOME |
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For the Years Ended |
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2012
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2011
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Revenues |
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Recruitment services |
$ 4,000,000 |
$ 4,000,000 |
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Consumer advertising and marketing solutions revenue |
2,154,111 |
1,569,342 |
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Total revenues |
6,154,111 |
5,569,342 |
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Costs and expenses: |
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Cost of services |
805,447 |
817,254 |
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Sales and marketing |
1,482,556 |
1,021,839 |
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General and administrative |
1,222,158 |
723,093 |
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Depreciation and amortization |
112,943 |
108,592 |
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Total costs and expenses |
3,623,104 |
2,670,778 |
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Income from operations |
2,531,007 |
2,898,564 |
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Other income (expense) |
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Interest expense |
(172,411 ) |
(170,452 ) |
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Interest and other income |
13,095 |
17,540 |
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Other expense, net |
(159,316 ) |
(152,912 ) |
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Net Income |
$ 2,371,691 |
$ 2,745,652 |
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Other comprehensive income: |
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Net Income |
$ 2,371,691 |
$ 2,745,652 |
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Unrealized gains (losses) on marketable securities |
29,699 |
(40,128 ) |
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Reclassification adjustments for gains on marketable securities included in net income |
2,449 |
10,987 |
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Comprehensive income |
$ 2,403,839 |
$ 2,716,511 |
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Unaudited Pro Forma Income Tax Computation for Assumed Conversion to a Corporation: |
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Historical Net Income |
$ 2,371,691 |
$ 2,745,652 |
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Pro-forma Income Tax Provision |
979,708 |
1,127,491 |
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Pro forma Net Income |
$ 1,391,983 |
$ 1,618,161 |
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Unaudited Pro Forma Income Net Income per Common Share: |
0.38 |
0.44 |
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Basic and diluted |
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Shares used in computing pro forma net income per common share: |
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Basic and diluted |
3,693,227 |
3,693,227 |
SOURCE Professional Diversity Network
Released April 1, 2013