Business Context and Reporting Period
Company: Marchex, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 13, 2004
Reporting Period: Quarter ended March 31, 2004
Business Overview: The registrant provides financial results for the quarter, including both GAAP and non-GAAP measures. The company utilizes Operating Income Before Amortization (OIBA) and Adjusted OIBA as primary metrics for evaluating business performance.
Key Financial Metrics
The filing text serves as a cover document referencing a press release (Exhibit 99.1) for specific numerical data. Consequently, the following specific values are not present in the provided text:
- Revenue: Not provided in filing text.
- Profit/Loss: Not provided in filing text.
- Cash Flow: Not provided in filing text.
- Margins: Not provided in filing text.
- Debt and Liquidity: Not provided in filing text.
Non-GAAP Measures Defined:
- OIBA: Operating income before amortization, excluding stock-based compensation and amortization of intangible assets.
- Adjusted OIBA: OIBA further excluding acquisition-related retention consideration (related to the Enhance transaction) and facility relocation expenses.
Material Changes and Unusual Items
The filing identifies specific non-recurring items excluded from Adjusted OIBA to facilitate historical comparisons:
- Facility Relocation Expense: Recognized in the first quarter of 2004.
- Acquisition-Related Retention Consideration: Earn-out incentives related to the Enhance transaction for calendar year 2004.
- Stock-Based Compensation: Excluded from OIBA calculations.
The text does not provide specific dollar amounts for these items or comparative data versus the prior period.
Guidance, Outlook, and Risks
Management Commentary: Management states that OIBA and Adjusted OIBA are used for internal budget planning, operating decisions, and management evaluation. They believe these measures represent consolidated operating results while excluding non-cash and non-recurring expenses.
Risks and Limitations: The filing explicitly notes that non-GAAP measures have limitations as they do not reflect the impact of stock-based compensation, acquisition-related accounting, or facility relocation amounts. Investors are advised to consider these measures in addition to, not as a substitute for, GAAP results.
Guidance: No specific forward-looking guidance or outlook figures are provided in this text.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific revenue, net income, and cash flow figures for the quarter ended March 31, 2004.
- Verify the reconciliation table between GAAP and non-GAAP measures to quantify the impact of stock-based compensation and amortization.
- Confirm the specific dollar amounts associated with the facility relocation expense and Enhance transaction earn-out consideration.
- Compare the reported Adjusted OIBA against historical trends to assess operational performance excluding non-recurring items.