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United Online (UNTD)
Q3 2012 Earnings Call
November 01, 2012 5:00 pm ET
Mark R. Goldston - Chairman, Chief Executive Officer, President and Member of Secondary Compensation Committee
Neil P. Edwards - Chief Financial Officer, Chief Accounting Officer, Executive Vice President and Treasurer
Erik Randerson - Vice President of Investor Relations
Daniel L. Kurnos - The Benchmark Company, LLC, Research Division
Jason Kreyer - Craig-Hallum Capital Group LLC, Research Division
Michael Crawford - B. Riley & Co., LLC, Research Division
Previous Statements by UNTD
» United Online Management Discusses Q2 2012 Results - Earnings Call Transcript
» United Online Inc. Q4 2008 Earnings Call Transcript
» United Online, Inc. Q3 2008 Earnings Call Transcript
I just want to say thank you, Elise. Hello, and welcome to United Online's conference call to discuss our financial results for the third quarter ended September 30, 2012. With me today is Mark Goldston, our Chairman, President and Chief Executive Officer; and Neil Edwards, our Executive Vice President and Chief Financial Officer.
Before I get started, I'd like to mention that we've created a PowerPoint presentation that summarizes our third quarter 2012 financial results and operating metrics. I would encourage you to download a copy of this presentation by going to our website, www.unitedonline.com, and clicking on Investor Relations at the top and going into the Earnings Release section.
On today's call, in today's press release and in the accompanying slides that are available within the Investor Relations section of our website, which can be found at www.unitedonline.com, we will refer to certain financial measures that are not determined in accordance with accounting principles generally accepted in the U.S., or GAAP, and should be considered in addition to, and not as a substitute for or superior to, the financial measures determined in accordance with GAAP. The definitions of these non-GAAP financial measures are provided in today's press release and in the accompanying slides on our website, along with certain reconciliations to their most comparable GAAP financial measures.
In addition, the company applies the Safe Harbor provisions, as outlined in today's press release, to any forward-looking statements that may be made on this call. Statements regarding our current expectations or estimates about our future operations, financial performance, net interest expense, amortization, share numbers, capital expenditures, taxes, operating metrics, the proposed spinoff of the FTD segment and the expected benefits thereof, the review of strategic alternatives for our other businesses, a review of monetization opportunities for our patent portfolio, new or planned marketing or business initiatives or monetization techniques and the expected benefits of our acquisitions, strategies and marketing programs, among others, are forward-looking statements that are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from those described or implied in the forward-looking statements.
More information about potential risks that could affect the company's business and its financial results is included in today's press release under the caption Cautionary Information Regarding Forward-looking Statements and in United Online's most recent filings with the Securities and Exchange Commission, including the company's annual reports on Form 10-K and quarterly reports on Form 10-Q.
Guidance, projections and other nonhistorical information provided in the press release and in today's call are based on information available to management at this time, and management expects that internal projections and expectations may change over time. However, the company does not intend to revise or update this information except as required by law and may not provide this type of information in the future.
And with that, we're going to start out with a few comments from Mark and Neil, then we'll open it up for questions. So I will now give the floor over to our Chairman, President and Chief Executive Officer, Mark Goldston.
Mark R. Goldston
Thank you, Dave. Welcome to United Online's Earnings Call for the Third Quarter ended September 30, 2012. I'm going to provide an overview of the results for the third quarter and an update on our progress toward our planned spinoff of FTD. Then Neil Edwards, our CFO, will conclude our prepared remarks with a look at the numbers for the quarter and our guidance going forward.
Let's talk about the highlights of the third quarter of 2012. Number one, both consolidated and adjusted OIBDA of $26.8 million and consolidated revenues of $177.8 million were near the high end of our guidance range. Number 2, our FTD segment continued to deliver positive results despite aggressive competition in the U.S. and the challenging consumer spending environment in the U.S. and to an even greater extent, in the U.K. During the quarter, the FTD segment achieved its seventh consecutive quarter of year-over-year revenue growth when prior periods are adjusted for the timing of the U.K. Mother's Day in 2011.
FTD revenues increased 7% from the year-ago quarter, driven by consumer order growth across all of our businesses both domestically and internationally. Number 3, Content & Media segment pay accounts declined by 133,000 during the quarter, the smallest net decrease since the second quarter of 2010. The quarterly net decrease and segment pay accounts has now improved in 3 consecutive quarters from a high of $296,000 -- 296,000 loss in the fourth quarter of 2011, to the 133,000 during this most recent quarter.
Number 4, in our Communications segment, we are growing the customer base in our NetZero 4G mobile broadband business, as we continue to test marketing strategies, including discounted pricing on some of the devices, as a means to improve conversion rates.