Move, Inc. Tops Estimates
Move, Inc. ([url=http://www.zacks.com/stock/quote/move]MOVE[/url]) recently reported sales of $54.6 million in the second quarter of 2009, down 11.1% year over year and about flat on a sequential basis.
Move provides a variety of real estate services through a family of websites. These services, which include online media and technology solutions, are provided to real estate industry professionals, advertisers and providers of home and real estate-related products and services.
The past two years have been very tough for the company due to a rapid deterioration in the global economy led by the sub-prime mortgage crisis. The situation has not improved much, though the pace of decline has slowed a bit.
Adjusted EBITDA (earnings from continuing operations before interest, taxes, stock-based compensation and charges, depreciation, amortization and other non-recurring charges) came in at $7.1 million, compared to $5.7 million in the year-ago quarter and $6.6 million in the previous quarter. EPS of 2 cents easily beat the Zacks Consensus Estimate of break-even earnings.
The company recently had changes in its management with a new CEO and CFO. The new CEO earlier announced a reorganization plan which aims to improve its business model. Management has begun the process of integrating all its businesses and has combined its sales, product and administrative functions across the organization.
The company hopes that this integration will enable it to better focus on leveraging its key assets, address areas of business that need to be changed along with expanding capabilities in other areas to drive future growth.
The real estate industry has yet to find a bottom and a lot more inventory has to work through the system before one can see a meaningful increase in housing starts. It remains to be seen how the new management bails the company out from the storm.