a21 Reports 2006 Results

Posted on 4/4/2007 by Jim Pickerell | Printable Version | Comments (0)



April 4, 2007

a21, Inc. has reported $19,633,000 in revenues for all of 2006, but only $11,976,000 of that was for the stock photo side of the business. ArtSelect which provides wall art for homes and businesses provided $7,657,000.

The image licensing revenue for Q4 2006 was $3,032,000. Fourth quarter licensing revenue was up 1.5% over the third quarter. A quarter by quarter breakdown for the stock photo side of a21's last 11 quarters is listed in the chart below. Prior to October 2005 all the photo revenue was generated by the Superstock brand. At that point the company acquired Ingram, an RF and subscription brand.

Q2 2004


Q3 2004


Q4 2004


Q1 2005


Q2 2005


Q3 2005


Q4 2005


Q1 2006


Q2 2006


Q3 2006


Q4 2006


Eighty-two percent of all 2006 revenue, or approximately $16.1 million was for sales and licensing in the U.S.

Net loss for 2006 was $9.6 million, or $0.12 per fully diluted share. $4.0 million of that came in the fourth quarter. This compares with 2005 when the annual net loss was $5.0 million, or $0.10 per fully diluted share, for 2005.

The fourth quarter results reflect certain non-cash expenses, including an approximately $1.7 million non-cash impairment charge associated with the Company's 2005 Ingram acquisition. In addition, the Company incurred non-cash stock-based compensation expense of $429,000 as a result of the Company's adoption Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payment," ("SFAS 123R"), and amortization and depreciation charges associated with the ArtSelect acquisition. The fourth quarter selling, general, and administrative expenses also included incremental corporate, legal and audit costs.

As of December 31, 2006 a21 had approximately 130 full time employees.

Copyright © 2007 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


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