Industry News

HouseValues’ net income drops in Q1

Company projects earnings per share of 24-30 cents for the year

Real estate information and technology company HouseValues today reported net income of $1.77 million for the first quarter, down 65.5 percent from $2.93 million in first-quarter 2005. The company had revenue of $26.9 million for the first quarter, a 53 percent increase from first-quarter 2005. Earnings per diluted share were 6 cents, including a 3 cent charge related to stock compensation, compared with 11 cents per diluted share in first-quarter 2005. Adjusted earnings before interest, taxes, depreciation and amortization, also known as EBITDA, dropped from $4.99 million in first-quarter 2005 to $4.29 million in first-quarter 2006. "The company's real estate lead-generation business grew modestly in the first quarter compared to the fourth quarter of 2005 even amidst the refocusing of sales resources to drive deeper penetration into markets that received less attention last year. HouseValues' revenue growth of more than 80 percent in 2005 was not distributed in proportion to overal...