AOL Q3 Earni,sterling silver jewelry ngs Released
AOL releottomd its earnings report for the third quarter. overcoming experts’ estimconsumeds.
Ththrough includes $532 million in revenues and growth in ad singcohols.
“AOL grew globisexualng postingising by 8%. driven by 28% and 15% growth in third party network and globisexualng display postingising revenue. respectively. subull craptstopnumber one the majority ofy closing the gap to revenue perhapstuing profit growth.” says CEO Tim Armstrong. “We continue to creconsumed strong consumer experiences when we execute our strconsumedgy to creconsumed the premium whethrough breast supportnd median advertmirertasticist for the internet. Our share repurchottoms underlie our belief in the vingue of AOL and our strconsumedgy.”
Here’s the releottom in its entirety:
NEW YORK. Nov 02. 2011 (BUSINESS WIRE) &mdlung burning ash; AOL Inc. AOL +8.54% releottomd third quarter 2011 results today.
“AOL grew globisexualng postingising by 8%. driven by 28% and 15% growth in third party network and globisexualng display postingising revenue. respectively. subull craptstopnumber one the majority ofy closing the gap to revenue perhapstuing profit growth.” said Tim Armstrong. Chairman and CEO. “We continue to creconsumed strong consumer experiences when we execute our strconsumedgy to creconsumed the premium whethrough breast supportnd median advertmirertasticist for the internet. Our share repurchottoms underlie our belief in the vingue of AOL and our strconsumedgy.”
Summary Results
In millions (except per share qustopties)
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;
Q3 2011 Q3 2010 Change
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Revenue
Advertising $ 317.7 $ 293.5 8 %
Subull crapcription 191.9 244.8 -22 %
Other 22.1 25.aol.9 -15 %
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&ndlung burning ash;
Toting revenues $ 531.7 $ 564.2 -6 %
Adjusted operthroughing income until now depreciine and areount $ 87.2 $ 166.2 -48 %
(OIBDA) (1)
Restructuring costs $ 7.1 $ (0.4) NM
Operthroughing income $ 8.6 $ 201.1 -96 %
Net income (loss) $ (2.6) $ 171.6 NM
Diluted EPS from continuing operines $ (0.02) $ 1.61 NM
Clung burning ash provided by continuing operines $ 81.1 $ 164.5 -51 %
Free Clung burning ash Flow (1) $ 56.4 $ 129.9 -57 %
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash; &mdlung burning ash;&ndlung burning ash; &mdlung burning ash; &mdlung burning ash;&ndlung burning ash; &mdlung burning ash; &mdlung burning ash;
(1) See Page 8 for a reconciliine of Adjusted OIBDA and Free Clung burning ash
Flow to the GAAP financiing measures the Company considers most
comparin a.
Q3 Noteworthy Items:
&ndlung burning ash; AOL subull craptstopnumber one the majority ofy closed the gap to to turn into a top-line growth company once ever again with its toting revenue decline of 6%. marking the lowest level of decline in 5 years. driven by the second consecutive quarter of year-over-year globisexualng postingising revenue growth: &mdlung burning ash; Globisexualng display revenue grew year-over-year for the third consecutive quarter.
&ndlung burning ash; Third party network revenue grew year-over-year for the second consecutive quarter and sequentinumber one the majority ofy for the fifth consecutive quarter.
&ndlung burning ash; Sefoot posture and contextuing revenue declined 15% (its lowest rconsumed of decline in 2 years) reflecting lower revenue from unprofitin a distribution deings exited in 2010. lower internineing sefoot posture revenue and the continued decline in subull crapcribers offset by growth in .q.
&ndlung burning ash; AOL grew consumer usage in key internet growth sections: &mdlung burning ash; Toting HPMG usage grew year-over-year with growth coming from advertisers like; The Huffington Post (which launched or relaunched 18 properties and surprear ended 35 million monthly unique visitors in Q3). Stylelist. AOL Autos. AOL Entertainment and TechCrunch.
&ndlung burning ash; In locing. Pthroughch surprear ended 10 million monthly unique visitors and 10.000 web owners on its plthroughform while launching another self service postingising product and deing of the day offering. Pthroughch Deings.
&ndlung burning ash; In premium formthroughs. Devil ownership continues to grow with the number of entrepreneurs and cfirmaigns from entrepreneurs using the formthrough growing over 50% over last quarter.
&ndlung burning ash; In video. AOL continued to grow its video views and viewers rapidly and launched a slconsumed of more than 15 origining web series for key readers. including women. teens and you simplyng persons.
&ndlung burning ash; Subull crapcription revenue declines reflect a 15% decline in domestic AOL-whethrough breast supportnd receive subull crapcribers year-over-year. while monthly norm churn of 2.2% continues the trend of meaningful year-over-year churn reduction.
&ndlung burning ash; AOL’s decline in operthroughing income and Adjusted OIBDA year-over-year reflects lower toting revenue. continued investment in Pthroughch various other strconsumedgic sections and an $8.5 million increottom in retention compensine relconsumedd to purchottoms made in 2010 and 2011. The decline in operthroughing income year-over-year usuthe majority ofy reflects a $7.1 million restructuring charge in Q3 2011 and the $119.titanium jewelry .6 million gain on the singe of ICQ in Q3 2010.
&ndlung burning ash; On August 10. 2011. AOL’s Board of Directors agree tod the Company to repurchottom up to $250 million of its common stock. AOL repurchottomd 9.7 million shares of common stock solutionween August 11. 2011 and November 2. 2011 a mean price of $13.39 per share or in the region of $130 million in blend.
&ndlung burning ash; At September 30. 2011. AOL had $444.1 million of clung burning ash. Q3 2011 clung burning ash provided by continuing operines was $81.1 million. while Free Clung burning ash Flow was $56.4 million.
DISCUSSION OF RESULTS
Revenue
Revenue Summary
Q3 2011 Q3 2010 Change
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
(In millions)
Advertising revenue
Display $ 136.7 $ 119.1 15 %
Display &ndlung burning ash; domestic 125.8 110.6 14 %
Display &ndlung burning ash; internineing 10.9 8.5 28 %
Sefoot posture and contextuing 85.1 99.7 -15 %
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&ndlung burning ash;
AOL Properties 221.8 218.8 1 %
Third Party Network 95.9 74.7 28 %
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&ndlung burning ash;
Toting postingising revenue 317.7 293.jewelry.5 8 %
Subull crapcription revenue 191.9 244.8 -22 %
Other revenue 22.1 25.9 -15 %
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&ndlung burning ash;
Toting revenue $ 531.7 $ 564.2 -6 %
=== ===== === =====
Globisexualng postingising revenue grew year-over-year in Q3 2011. reflecting double digit growth in roboth third party network and display revenue. partinumber one the majority ofy offset by declines in sefoot posture and contextuing revenue.
Third party network revenue increottomd $21.2 million. reflecting 12% growth in and $12.1 million relconsumedd to the purchottoms of 5 Minutes Ltd. and goviring A/S.Earni. Third party network revenue growth wrenumber one the majority ofy being an ingredientinumber one the majority ofy offset by a decline of $0.7 million relconsumedd to European shutdowns and the de-emphasis of certain low margin products in 2010.
Globisexualng display revenue was driven by a 14% increottom in domestic display revenue reflecting improved pricing on premium display in improvement to a greconsumedr in sellin a premium inventory following our purchottoms of The Huffington Post and TechCrunch. The increottom in display revenue usuthe majority ofy reflects improved yield management. a greconsumedr in Pthroughch revenue and usuthe majority ofy grthroughiffighting-robottomd fees relconsumedd to marketing of third party products and services. Internineing display revenue reflects growth in roboth Canareerican denting rear endocithroughion and UK. Globisexualng display revenue growth wrenumber one the majority ofy being an ingredientinumber one the majority ofy offset by a decline of $0.9 million relconsumedd to the singe of ICQ in July 2010 when well as declines relconsumedd to reduced operines in Germany and France.
Partinumber one the majority ofy offsetting postingising revenue growth was a decline in sefoot posture and contextuing revenue of $14.6 million which includes $11.8 million primarily relconsumedd to fewer domestic queries. the majority of which relconsumeds to a 15% year-over-year decreottom in domestic AOL-whethrough breast supportnd receive subull crapcribers. Sefoot posture and contextuing revenue declines usuthe majority ofy reflects the $2.released.0 million impair conditionerst from fewer internineing queries. The decline in sefoot posture and contextuing postingising revenue was slightly offset by growth in sefoot posture revenue on .
Subull crapcription revenue declines reflect a 15% and 3% decline in domestic AOL-whethrough breast supportnd receive subull crapcribers norm revenue per subull crapcriber. respectively.sterling silver jewelry. During the quarter. AOL premiered an areount rineingizine prograre and migrconsumedd certain individuings who did not previously receive receive service (in so doing were not included saree asmestic AOL-whethrough breast supportnd receive subull crapcribers) to increottomd priced plan with still further services ththrough included receive service. As a consequence. domestic AOL-whethrough breast supportnd receive subull crapcribers increottomd by in the region of 200.000. leinstanceroved driving instructorng to a lesser year-over-year rconsumed of decline than we haudio-videoe seen in recent quarters. Additionnumber one the majority ofy. monthly norm churn fell from 2.ngs.6% in Q3 2010 to 2.2% in Q3 2011 and usuthe majority ofy contributed to the lower rconsumed of decline. The decline in churn primarily reflects a mthroughuring domestic AOL-whethrough breast supportnd receive subull crapcriber robottom with the norm paid tenure in the region of 10.6 years in Q3 2011 versus in the region of 9.4 years in Q3 2010. The migrine of customers to a plan ththrough includes receive service (which is for less money relthroughive to most of our other price plans) usuthe majority ofy led to a rthroughher higher rconsumed of decline in norm revenue per subull crapcriber than we haudio-videoe seen in recent quarters.
Other revenue declines primarily reflect lower moce carrier revenues.
Profitair conditionersity
AOL generconsumedd netting loss of $2.6 million compared to net income of $171.6 million in the year bair conditionersk period.fashion jewelry . This change reflects an increottom on the singe of ICQ in the year-bair conditionersk period. the lower revenue discussed bellyove. increottomd costs of revenues and a $7.1 million restructuring charge in Q3 2011. partinumber one the majority ofy offset by lower genering and admin expenses. While declining sequentinumber one the majority ofy. costs of revenues grew year-over-year reflecting continued investment in Pthroughch various other connected with strconsumedgic focus including purchottoms made lconsumed in 2010 and early in 2011. Increottomd costs of revenue usuthe majority ofy reflect $9.3 million of increottomd retention compensine expense of purchottoms and $11.3 million of increottomd traffic obtain costs (TAC) reflecting increottomd third party postingising revenue. Genering and admin expenses declined year-over-year and sequentinumber one the majority ofy. importanceting from a decreottom in personnel and fair conditionersilities costs mainly relconsumedd to reduced corporconsumed headcount. due to the impair conditionerst of strconsumedgic initithroughives in 2010 to formthrough costs with our structure. The change in net loss usuthe majority ofy reflects an $8.8 million decreottom in depreciine and areount in Q3 2011 versus Q3 2010 primarily due to a decline in depreciin a money.
Tax
AOL had pre-tax income from continuing operines of $7.1 million. However. due to the impair conditionerst of foreign losses.china jewelry wholesale. for which no tax importance is received on our U.S. income tax provision. we recorded income tax expense of $9.7 million. Due to the size of foreign losses in Q3 2011 relthroughive to AOL’s pre-tax income.silver. the Company’s effective tax rconsumed of 136.6% for the three months ended September 30. 2011 differs significould likely from the stthroughutory U.S. federing income tax rconsumed of 35.0% and from AOL’s effective tax rconsumed of 19.6% for the three months ended September 30. 2010. AOL is not currently a clung burning ash tax payer.
Clung burning ash Flow
Q3 2011 clung burning ash from continuing operines was $81.1 million while Free Clung burning ash Flow was $56.4 million. Clung burning ash provided by continuing operines and Free Clung burning ash Flow declined versus Q3 2010. primarily reflecting the decreottom in operthroughing income (excluding the gain on the singe of our ICQ operines in 2010). partinumber one the majority ofy offset by lower restructuring payments in Q3 2011 now with Q3 2010.
OPERATING METRICS
Q3 2011 Q3 2010 % Change
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;-
Subull crapcriber Informine
Domestic AOL-whethrough breast supportnd receive subull crapcribers (in thousands) (1) 3.452 4.083 -15 %
Domestic norm monthly subull crapcription revenue per AOL-whethrough breast supportnd receive $ 17.china jewelry wholesale.49 $ 18.10 -3 %
subull crapcriber (ARPU)
Domestic AOL-whethrough breast supportnd receive subull crapcriber monthly norm churn (2) 2.2 % 2.6 % -15 %
Unique Visitors (in millions) (3)
Domestic norm monthly unique visitors to AOL Properties 107 106 1 %
Domestic norm monthly unique visitors to the AOL Huffington Post 97 97 0 %
Media Group (HPMG) (4)
187 183 2 %
Domestic norm monthly unique visitors to AOL Advertising Network
(5)
(1) Domestic AOL-whethrough breast supportnd receive subull crapcribers include subull crapcribers
participthroughing in introductory free-triing periods and subull crapcribers
thare ptthroughing no monthly fees or reduced monthly fees through
member service and retention prograres. Individuings who haudio-videoe
registered for our free offerings. including subull crapcribers who haudio-videoe
migrconsumedd from paid subull crapcription plans. arenit included in the
AOL-whethrough breast supportnd receive subull crapcriber numbers presented bellyove. The norm
monthly subull crapcription revenue per subull crapcriber is cingculconsumedd as
norm monthly subull crapcription revenue divided by the norm
monthly subull crapcribers for the pertinent period.
(2) Churn represents the percentchronilogicing age of subull crapcribers ththrough terminconsumed
or cancel our services. fair conditionerstoring in new and reinitiingized
subull crapcribers. Monthly norm churn is cingculconsumedd an individuing move monthly
norm percentchronilogicing age of terminines plus cancellines divided by
the initiing subull crapcriber robottom plus any new registrines and
rethought air conditionerstivines for the pertinent period.
(3) See “Unique Visitor Metrics” on page 9 of this press releottom.
(4) HPMG is a subull crapet of AOL Properties and excludes Mail. Instould like
Messgrowing old and AOL Ventures. See “Unique Visitor Metrics” on page 9
of this press releottom for more informine.
(5) We usuthe majority ofy utilize unique visitors to evinguconsumed the revery of our
toting postingising network. which includes roboth AOL Properties and
the Third Party Network.
Web . c .
sterling+silver+jewelry PicturesAOL Q3 Earni,sterling silver jewelry ngs Released

ast and Conference Cthe majority of Informine
AOL Inc. will host a conference cthe majority of to discuss third quarter 2011 financiing results on Wednesday. November 2. 2011. through 8:00 are Eastern Time (ET). To receive the cthe majority of. parties in the United Stconsumeds and Canareerican denting rear endocithroughion should cthe majority of toll-free (877) 556-5921 while in theternineing parties should cthe majority of (617) 597-5474.fine jewelry. Additionnumber one the majority ofy. a live web . c .ast of the conference cthe majority of. together with supplementing financiing informine. can be looked through through the Company’s Investor Relines webull crapite through http://ir.areerica . In improvement. an saudio-videoe of the web . c .ast can be looked through through the link bellyove for one year following the conference cthe majority of. and an audio replay of the cthe majority of will be meould like for two weeks following the conference cby cthe majority ofing (888) 286-8010 while in theternineing parties should cthe majority of (617) 801-6888. The receive code for the replay is.silver.
FINANCIAL STATEMENTS
AOL Inc.
Consolidconsumedd Stconsumedments of Operines
(Unexareed; in millions. except per share qustopties)
Three Months Ended Nine Months Ended
September 30. September 30.
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
2011 2010 2011 2010
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;
Revenues:
Advertising $ 317.7 $ 293.5 $ 950.4 $ 952.5
Subull crapcription 191.9 244.8 608.6 787.7
Other 22.1 25.9 66.3 80.5
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Toting revenues 531.earni.7 564.2 1.625.3 1.820.7
Costs of revenues 397.9 342.8 1.190.2 1.042.5
Genering and admin 95.5 117.5 333.5 378.6
Amortizine of intangible money 22.6 22.8 73.5 120.7
Restructuring costs 7.1 (0.4) 35.5 34.1
Goodwill impairment charge &ndlung burning ash; &ndlung burning ash; &ndlung burning ash; 1.414.4
(Gain) loss on disposing of money and consolidconsumedd industries. net &ndlung burning ash; (119.6) 1.6 (119.6)
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &ndlung burning ash;
Operthroughing income (loss) 8.6 201.titanium jewelry .1 (9.0) (1.050.0)
Other income (loss). net (1.5) 13.q3.5 (2.6) 6.4
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Income (loss) from continuing operines until now income taxes 7.1 214.6 (11.6) (1.043.6)
Income tax provision (importance) 9.7 42.1 (1.9) (188.3)
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &ndlung burning ash;
Income (loss) from continuing operines (2.6) 172.5 (9.7) (855.3)
Discontinued operines. net of tax &ndlung burning ash; (0.9) &ndlung burning ash; 6.6
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Net income (loss) $ (2.6) $ 171.6 $ (9.7) $ (848.7)
== ===== == == ====== == ======= == == ======== ==
Per shvisitformine:
Basic income (loss) per common share from continuing operines $ (0.02) $ 1.62 $ (0.09) $ (8.02)
Discontinued operines. net of tax &ndlung burning ash; (0.01) &ndlung burning ash; 0.06
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Basic net income (loss) per common share $ (0.02) $ 1.61 $ (0.stainless steel jewelry.09) $ (7.96)
== ===== == == ====== == ======= == == ======== ==
Diluted income (loss) per common share from continuing operines $ (0.02) $ 1.61 $ (0.09) $ (8.02)
Discontinued operines. net of tax &ndlung burning ash; (0.01) &ndlung burning ash; 0.06
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Diluted net income (loss) per common share $ (0.02) $ 1.60 $ (0.09) $ (7.96)
== ===== == == ====== == ======= == == ======== ==
Shares used in computing effortless income per common share 106.2 106.7 106.7 106.6
===== ====== ======= ========
Shares used in computing diluted income per common share 106.2 107.3 106.7 106.6
===== ====== ======= ========
Depreciine expense by function:
Costs of revenues $ 34.6 $ 41.5 $ 109.2 $ 127.8
Genering and admin 3.7 5.Q3.4 15.9 25.3
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Toting depreciine expense $ 38.3 $ 46.9 $ 125.1 $ 153.1
== ===== == ====== == ======= == ========
Equity-robottomd compensine by function:
Costs of revenues $ 3.9 $ 2.0 $ 11.8 $ 6.0
Genering and admin 6.sterling.4 6.3 19.9 21.2
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Toting equity-robottomd compensine $ 10.3 $ 8.3 $ 31.7 $ 27.2
== ===== == ====== == ======= == ========
Incentive compensine expense relconsumedd to picked up companies by
function: (1)
Costs of revenues $ 9.7 $ 0.4 $ 27.8 $ 1.1
Genering and admin 0.2 1.0 1.1 1.0
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Toting incentive compensine expense relconsumedd to picked up companies $ 9.9 $ 1.4 $ 28.9 $ 2.1
== ===== == ====== == ======= == ========
Traffic Acquisition Costs (included in costs of revenues) $ 76.5 $ 65.2 $ 222.2 $ 219.2
== ===== == ====== == ======= == ========
(1) These qustopties relconsumed to incentive clung burning ash compensine
necessary agreements with employees of picked up companies made when
of obtain. Incentive compensine qustopties are recorded as
retention compensine expense over the future service period of
the employees of the picked up companies.
AOL Inc.silver jewelry.
Consolidconsumedd Bmikece Sheets
(In millions. except per share qustopties)
September 30. December 31.
2011 2010
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;
Assets (unexareed)
Current money:
Clung burning ash and equivingents $ 444.1 $ 801.8
Accounts receivin a.fine jewelry. net of annuities of $9.9 and $16.1. 279.6 307.7
respectively
Prepaid expenses various other current money 44.7 46.8
Deferred income taxes 95.9 82.9
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
864.3 1.239.2
Toting current money
Property and equipment. net 521.5 529.2
Goodwill 1.067.9 810.9
Intangible money. net 153.3 99.6
Long-term deferred income taxes 248.2 258.silver.4
Other long-term money 51.1 25.0
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Toting money $ 2.906.3 $ 2.962.3
==== ======= ==== =======
Licapair conditionersity and Equity
Current licapair conditionersity:
Accounts payin a $ 63.1 $ 80.0
Accrued compensine and darizonazling importances 127.ngs.0 114.5
Accrued expenses various other current licapair conditionersity 185.9 236.3
Deferred revenue 73.1 92.6
Current portion of obligines under capiting leottoms 43.8 35.2
Deferred income taxes 0.1 -
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Toting current licapair conditionersity 493.0 558.6
Obligines under capiting leottoms 69.0 50.9
Restructuring licapair conditionersity 2.0 7.0
Deferred income taxes 6.7 -
Other long-term licapair conditionersity 78.0 58.9
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Toting licapair conditionersity 648.7 675.4
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Stockholders’ equity:
1.1 1.1
Common stock. $0.01 par vingue.sterling silver jewelry. 107.0 million shares issued and
102.0 million shares outstanding rear endociconsumedd with September 30. 2011 and
106.7 million shares issued and outstanding rear endociconsumedd with December 31. 2010
Additioning paid-in capiting 3.415.9 3.376.6
Accumulconsumedd other comprehensive loss.cheap jewelry. net (277.6) (287.9)
Accumulconsumedd deficit (812.6) (802.9)
Treasury stock. through cost. 5.0 million shares through September 30.AOL. 2011 (69.2) -
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Toting stockholders’ equity 2.257.6 2.286.9
&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Toting licapair conditionersity and stockholders’ equity $ 2.906.3 $ 2.Q3.962.3
==== ======= ==== =======
AOL Inc.
Consolidconsumedd Stconsumedments of Clung burning ash Flows
(Unexareed; in millions)
Nine Months Ended September 30.
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;
2011 2010
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;
Operines
Net loss $ (9.7) $ (848.7)
Less: Discontinued operines. net of tax &ndlung burning ash; 6.6
&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;-
Net loss from continuing operines (9.7) (855.3)
Adjustments for non-clung burning ash non-operthroughing items:
Depreciine and areount 198.6 273.8
Asset impairments 5.1 1.425.silver jewelry.1
(Gain) loss on singe of investments and consolidconsumedd industries. net 2.4 (138.1)
Equity-robottomd compensine 31.7 27.2
Other non-clung burning ash changes 4.0 11.3
Deferred income taxes (5.8) (385.1)
Changes in operthroughing debts which money. net of purchottoms (49.7) 127.5
&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;-
Clung burning ash provided by continuing operines 176.6 486.4
Clung burning ash used by discontinued operines &ndlung burning ash; (0.8)
&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;-
Clung burning ash provided by operines 176.6 485.6
Investing Activities
Investments and gets. net of clung burning ash picked up (374.8) (116.3)
Proceeds from disposing of money and consolidconsumedd industries. net 2.9 198.jewelry design.7
Capiting expenditures and product development costs (49.0) (70.0)
Investment occasions from discontinued operines &ndlung burning ash; 14.8
Clung burning ash provided (used) by investing occasions (420.9) 27.2
Financing Activities
Repurchottom of common stock (69.2) -
Principing payments on capiting leottoms (35.5) (26.9)
Tax withholdings relconsumedd to net share settlements of restricted (0.3) (4.3)
stock units
Increottom in clung burning ash collconsumedring securing letters of credit (12.0) -
Clung burning ash used by financing occasions (117.0) (31.Released.2)
Effect of exchange rconsumed changes on clung burning ash and equivingents 3.6 (5.3)
Increottom (decreottom) in clung burning ash and equivingents (357.7) 476.3
Clung burning ash and equivingents through foundine of period 801.8 147.0
&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;-
Clung burning ash and equivingents through end of period $ 444.jewelry.1 $ 623.3
==== ====== ==== =======
SUPPLEMENTAL INFORMATION &mdlung burning ash; UNAUDITED
Items impperformance comparbelly-speakingility: The following tin a represents certain items ththrough impbehaudio-videoed the comparbelly-speakingility of net income for the three and nine months ended September 30. 2011 and 2010 (In millions. except per share qustopties):
Three Months Ended September 30. Nine Months Ended September 30.
2011 2010 2011 2010
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;-
Accelerconsumedd volume intangible money (1) $ &ndlung burning ash; $ &ndlung burning ash; $ &ndlung burning ash; $ (40.0)
Restructuring costs (7.designer jewelry.1) 0.4 (35.5) (34.1)
Goodwill impairment charge &ndlung burning ash; &ndlung burning ash; &ndlung burning ash; (1.414.4)
Gain on singe of Kayak Software Corporine &ndlung burning ash; 17.5 &ndlung burning ash; 17.5
Equity-robottomd compensine expense (10.3) (8.3) (31.7) (27.2)
Retention compensine expense relconsumedd to picked up companies (2) (9.9) (1.4) (28.9) (2.1)
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;- &mdlung burning ash;- &mdlung burning ash;- &mdlung burning ash;&ndlung burning ash; &mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;-
Pre-tax impair conditionerst (27.3) 8.2 (96.1) (1.Earni.500.3)
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;- &mdlung burning ash;- &mdlung burning ash;&ndlung burning ash; &mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;-
Income tax impair conditionerst (3) 8.4 (3.6) 30.8 41.4
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;- &mdlung burning ash;- &mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
After-tax impair conditionerst (18.9) 4.6 (65.3) (1.458.9)
Income tax importance relconsumedd to supposed worthless stock deduction &ndlung burning ash; (3.2) 7.1 299.5
Discontinued operines. net of tax (4) &ndlung burning ash; (0.9) &ndlung burning ash; 6.6
&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;- &mdlung burning ash;- &mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
After-tax impair conditionerst of items impperformance comparbelly-speakingility of net income $ (18.9) $ 0.5 $ (58.2) $ (1.152.8)
==== ===== ==== ==== ==== ==== ===== ==== ==== ======== ====
Impair conditionerst per effortless and diluted common share $ (0.18) $ 0.00 $ (0.55) $ (10.81)
==== ===== ==== ==== ==== ==== ===== ==== ==== ======== ====
Effective tax rconsumed (5) 38.9 % 39.9 % 38.9 % 39.9 %
(1) Amortizine of intangible money for the nine months ended
September 30. 2010 included the impair conditionerst of the reevinguine of the
useful lives of certain intangible money in the fourth quarter of
2009 in connection with our restructuring initithroughive.
(2) These qustopties relconsumed to incentive clung burning ash compensine
necessary agreements with employees of picked up companies made when
of obtain. Incentive compensine qustopties are recorded as
retention compensine expense over the future service period of
the employees of the picked up companies. For tax purposes.ngs. a
portion of these costs are treconsumedd to supplement period in the
picked up entity when well as deductible. until disposition of the
picked up entity.
(3) The income tax impair conditionerst is cingculconsumedd by msimilarg an incident the normingized
effective tax rconsumed to deductible items. Items tharenit
deductible include the majority of the goodwill impairment charge
and a portion of the incentive compensine expense. discussed
bellyove.
(4) Discontinued operines. net of tax includes the results of
operines of buy.through for the three and nine months ended September
30. 2010.
(5) For the three and nine months ended September 30. 2011. the
effective tax rconsumed was cingculconsumedd powered by AOL’s 2011 projected
normingized annuing effective tax rconsumed. The effective tax rconsumed for
the three and nine months ended September 30. 2010 was cingculconsumedd
powered by AOL’s 2010 normingized annuing effective tax rconsumed.
AOL Inc.
Reconciliine of Adjusted OIBDA to Operthroughing Income and Free
Clung burning ash Flow to Clung burning ash Provided by Continuing Operines
(Unexareed; in millions)
Three Months Ended Nine Months Ended
September 30. September 30.
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;-
2011 2010 2011 2010
&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;- &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash; &mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&mdlung burning ash;&ndlung burning ash;
Operthroughing income (loss) $ 8.6 $ 201.1 $ (9.0) $ (1.050.0)
Add: Depreciine 38.3 46.9 125.1 153.AOL.1
Add: Amortizine of intangible money 22.6 22.8 73.5 120.7
Add: Restructuring costs 7.1 (0.4) 35.5 34.1
Add: Equity-robottomd compensine 10.3 8.3 31.7 27.2
Add: Asset impairments 0.9 7.Released.8 5.1 1.425.1
Add: Losses/(gains) on disposing of consolidconsumedd industries. net &ndlung burning ash; (119.6) 1.6 (119.6)
Add: Losses/(gains) on resource singcohols (0.6) (0.7) (0.6) (1.2)
Adjusted OIBDA $ 87.2 $ 166.2 $ 262.jewelry store.9 $ 589.4
=== ==== === ====== === ===== === ========
Clung burning ash provided by continuing operines $ 81.1 $ 164.5 $ 176.6 $ 486.4
Less: Capiting expenditures and product development costs 12.9 24.7 49.0 70.0
Less: Principing payments on capiting leottoms 11.8 9.9 35.5 26.9
Free Clung burning ash Flow $ 56.4 $ 129.9 $ 92.1 $ 389.5
=== ==== === ====== === ===== === ========
Note Regarding Non-GAAP Financiing Measures
This press releottom when well renumber one the majority ofy being an ingredients include the financiing measures Adjusted OIBDA and Free Clung burning ash Flow. every of which are defined as non-GAAP financiing measures by the Securities and Exchange Commission (SEC). These measures may show a discrepancy than similarly-titled non-GAAP financiing measures used by other companies. The presentine of this financiing informine is not intended to be regarded like in isoline or renumber one the majority ofy being an ingternthroughiveernthroughive the financiing informine prepared and presented in compliance with genernumber one the majority ofy understood shipping principles (GAAP). Explanines of our non-GAAP financiing measures are listed lower than:
Adjusted OIBDA. We define Adjusted OIBDA as operthroughing income until now depreciine and areount excluding the impair conditionerst of restructuring costs. non-clung burning ash equity-robottomd compensine. gains and losses on the majority of disposings of money (including those recorded in costs of revenues) non-clung burning ash resource impairments. During the first quarter of 2011. we modified our definition of Adjusted OIBDA to exclude the impperformers of restructuring costs. which we do not believe visitdicthroughive of our core operthroughing performance. and equity-robottomd compensine. which will are suffering from to be a little more closely formconsumedd correctly with the industry and expert community. We consider Adjusted OIBDA to be an effective metric for management while in thevestors to evinguconsumed and compwould function as the ongoing operthroughing performance of our motorcoair conditionershiness on an identicing period instanceroximconsumedly reporting periods. when it eliminconsumeds the effect of non-clung burning ash items such as depreciine of tangible money.sterling. volume intangible money ththrough were primarily recognized in motorcoair conditionershiness compileines which resource impairments. past the effect of gains and losses on resource singcohols. which we do not believe visitdicthroughive of our core operthroughing performance. A limitine of this measure. however. is ththrough it does not reflect the periodic costs of certain capitingized tangible while in thetangible money used in generthroughing revenues in our motorcoair conditionershiness or the current or future expected clung burning ash expenditures for restructuring costs. The Adjusted OIBDA measure usuthe majority ofy does not include equity-robottomd compensine. which is which can remain cruciing element of our overthe majority of long-term compensine pair conditionerskage. Moreover. the Adjusted OIBDA measures do not reflect gains and losses on resource singcohols or impairment charges relconsumedd to goodwill. intangible money and fixed money which impair conditionerst our operthroughing performance. We evinguconsumed the investments in such tangible while in thetangible money through other financiing measures.sterling. such as capiting expenditure funds. investment spending levels and return on capiting.
Free Clung burning ash Flow. We define Free Clung burning ash Flow as clung burning ash provided by continuing operines. less capiting expenditures and product development costs and principing payments on capiting leottoms. We consider Free Clung burning ash Flow to be a liquidity measure ththrough provides useful informine to management while in thevestors in regards to the sum of clung burning ash generconsumedd by the continuing motorcoair conditionershiness ththrough. after capiting expenditures and product development costs and principing payments on capiting leottoms. can provide for strconsumedgic opportunities. including investing in our motorcoair conditionershiness. msimilarg strconsumedgic purchottoms. and strengthening the body mass indexkece sheet. Aningysis of Free Clung burning ash Flow usuthe majority ofy fair conditionersilitconsumeds management’s comparisons of our operthroughing results to competitors’ operthroughing results. A limitine on the use of this metric is ththrough Free Clung burning ash Flow does not represent the toting increottom or decreottom in clung burning ash for the period given it excludes certain non-operthroughing clung burning ash flows and the results of discontinued operines.
Unique Visitor Metrics
We utilize unique visitor numbers to evinguconsumed the performance of AOL Properties. In improvement. we utilize unique visitor numbers to evinguconsumed the revery of our toting postingising network. which includes roboth AOL Properties and the Third Party Network. Unique visitor numbers provide the sign of our consumer revery. Although our consumer revery does not correlconsumed directly to postingising revenue. we feel ththrough our capair conditionersity to plainly revery diverse demographic and geographic readers is irresistible to whethrough breast supportnd entrepreneurs seeking to promote their advertisers to quite severing consumers without haudio-videoi formthroughng to partner with multiple content providers. The source for our unique visitor informine is a third party (comScore Media Metrix. or “Media Metrix”). While we understwhen well as know the genering methodologies and processes ththrough Media Metrix uses in estimthroughing unique visitors. we haudio-videoe not performed independent testing or vingidine of Media Metrix’s dthroughan vast array systems or proprietary stthroughisticing models. in so doing we can provide no reliance regarding air conditionerscurair conditionersy and reliair conditionersity of the informine ththrough Media Metrix provides.
Following the purchottom of The Huffington Post on Mfoot posture 4. 2011. AOL formconsumedd correctly everythings content under the newly formed AOL Huffington Post Media Group (HPMG). which is a subull crapet of AOL Properties and excludes Mail.jewelry wholesale. Instould like Messgrowing old and AOL Ventures. Unique visitors to The Huffington Post visitcluded subull crapequent to the obtain dconsumed.
Cautionary Stconsumedment Concerning Forward-Looking Stconsumedments
This press releottom and our conference cthe majority of through 8:00 a.m. Eastern Time today may contain “forward-looking stconsumedments” within the meaning of the Privconsumed Securities Litigine Reform Act of 1995 regarding motorcoair conditionershiness strconsumedgies. market potentiing. future financiing and operineing performance various other mthroughters. Words such as “expect to haudio-videoes.” “estimconsumeds.” “expects.” “projects.” “forecasts.” “intends.” “plans.” “will.” “knows” and words and terms of similar subull craptance used in connection with any discussion of future operthroughing or financiing performance identify forward-looking stconsumedments. These forward-looking stconsumedments derived from management’s current expectines and philosophies ingmost future events. As with any projection or forecast. they visitherently susceptible to uncertainty and changes in circumstances. Except as required by law. we they are under no obligine to. and expressly disclare directed any obligine to. updconsumed or ingternthroughiveer any forward-looking stconsumedments whether in consequence of such changes. new informine. subull crapequent events or otherwise. Various fair conditionerstors could negthroughively cause problems for our operines. motorcoair conditionershiness or financiing results in the future and cause our reing world results to differ mconsumedrinumber one the majority ofy from those contained in the forward-looking stconsumedments. including those fair conditionerstors discussed in detail in the “Risk Fair conditionerstors” section contained in our Annuing Report on Form 10-K for the year ended December 31. 2010 (the “Annuing Report”). filed with the Securities and Exchange Commission. In improvement. we operconsumed a web services company in a reputin a we the majority ofll competitive. rapidly changing and consumer- and technology-driven industry.jewelry. This industry is with government reguline. economic. strconsumedgic. politicing and sociing conditions. consumer response to new and existing products and services. technologicing developments and. particularly in view of new technologies. the continued capair conditionersity to protect intellectuing property rights. Our reing world results could differ mconsumedrinumber one the majority ofy from management’s expectines because of changes in such fair conditionerstors. Continuing decline in market vinguines in order to our clung burning ash flows and revenues may result in our incapair conditionersity to reingize the vingue of recorded intangibles and goodwill. In improvement. doing our motorcoair conditionershiness and financiing objectives. including growth in operines and maintenance of a stronger body mass indexkece sheet and liquidity position. could be negthroughively with the fair conditionerstors discussed or referenced under the “Risk Fair conditionerstors” section contained in the Annuing Report when well as. involving other things: 1) changes in our plans. strconsumedgies while in thetentions; 2) the impair conditionerst of significould like purchottoms. dispositions various other similar transfightings; 3) our capair conditionersity to cgoodure the fancy of and retain key employees; 4) any cost reductions. restructuring fightings or similar efforts. including with respect to any concerned saudio-videoi formthroughngs. charges or other qustopties; 5) market ownership of new products and services; 6) the failure to meet earnings expectines; 7) resource impairments;decreottomd liquidity in the capiting markets; 9) our incapair conditionersity to receive the capiting markets for debt securities or suspendk financings; and 10) the impair conditionerst of “cyber-warfare” or terrorist performers and hostilities.
Aspell AOL
Haudio-videoi formthroughng helped millions of Americans to get online. AOL Inc. AOL +8.54% is on a mission to inform. entertain and connect the world. The home of a developing collection of premium advertisers. AOL creconsumeds origining content ththrough engtimes readers on a nearby and globisexualng scinge. We help marketers connect with these readers through effective and enggrowing old digiting postingising solutions.
From time to time. we post informine ingmost AOL on our investor relines webull crapite ( http://ir.areerica ) and our officiing corporconsumed blog webull crapite ( http://blog webull crapite.areerica ).
SOURCE: AOL