Stockhouse Inc.
TSX VENTURE : SHC
OTC Bulletin Board : STKH

Stockhouse Inc.

May 20, 2009 16:31 ET

Stockhouse® Reports Q1 Results

NEW YORK, NEW YORK--(Marketwire - May 20, 2009) - Stockhouse, Inc. (OTCBB:STKH)(TSX VENTURE:SHC) today announced financial results for the first quarter ended March 31, 2009. A conference call and webcast will be held Thursday May 21 at 11:00 AM EDT to discuss the results. All results are reported in US Dollars under accounting principles generally accepted in the United States of America (US GAAP).

Stockhouse® revenues for the first quarter of 2009 were $2.15 million a decrease of 39% over $3.5 million in Q1, 2008. The Company's Q1, 2009 EBITDA(1) loss improved 55% to $542,000 compared to $1.217 million in Q1, 2008. The Company's net loss improved 53% from $685,000 in Q1, 2009 compared to $1.5 million in Q1, 2008.

Stockhouse continued to achieve significant progress in cost reductions during the first quarter. Total operating expenses for Q1, 2009 were $2.81 million compared to $5.29 million in Q1, 2008 an improvement of 47%. Cost of revenues for the quarter was $987,000 compared to $1.5 million in Q1, 2008 an improvement of 33%.

"During the first quarter mobile subscriptions and licensing revenue were stable after having had significant declines in the third and fourth quarter of 2008 due to the financial market crises. Our pager revenue continued to decline as expected and was accelerated in January when we shut down our Benelux and Spanish offices. We transferred our mobile customers to our UK office saving the Company a further $600,000 in annual costs. The Company is actively negotiating with our key vendors on further cost savings and expects to make further progress this quarter," stated Marcus New, CEO.



Q1
Unaudited
2009 2008

Revenue
Advertising Services 1672 2624
Licensing and Subscription 478 875
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Total Revenue 2150 3499
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Cost of Sales 987 1469
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Operating Expenses 1825 3823
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EBITDA (1) 542 1217
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Net Loss 685 1446
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EPS (0.02) (0.04)
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Cash 518 1690
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Traffic to Stockhouse

During Q1, the Company reports an average of 661,000 monthly unique visitors up from 637,000 monthly unique visitors in Q4, 2008 and 7.18 minutes average time spent per user an increase over 6.32 minutes in Q4, 2008.

Conference Call and Web cast

To participate in the conference call scheduled for 11:00 AM EDT May 21, please call (866) 550-6338 / International (312) 376-8843 five to ten minutes prior to the start time. To listen to the live web cast, please go to www.stockgroup.com.

The earnings call will be recorded and accessible on our website for a period of one month. Participants intending to access the web cast should have Windows Media® Player installed prior to connecting to the call.

(1) EBITDA - Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization is a non-GAAP measure that does not have a standardized meaning and may not be comparable to similar measures disclosed by other issuers. This measure does not have a comparable US GAAP measure. EBITDA is calculated as Income (Loss) from operations less depreciation, amortization, interest income and provision for income tax.

About Stockhouse, Inc.

Stockhouse is a leading financial media company focused on user generated content and collaborative technologies. The Stockhouse platform for web-based portfolio management and financial content is licensed to top North American brokerage firms and media companies. This platform is also extended through Stockhouse.com, a leading online financial portal owned and operated by Stockhouse, Inc. Stockhouse.com is home to Bullboards message board - Canada's largest community of active investors. Recognized for its engaged audience, Stockhouse.com provides a sought-after demographic for advertisers.

Legal notice regarding Trademarks

"Stockgroup", "Stockhouse" and "Bullboards" are either registered trademarks or trademarks of Stockhouse, Inc. (formerly Stockgroup Information Systems Inc.) and/or its affiliated companies in Canada, the United States and/or other countries.

"Microsoft", "Windows" and "Windows Media" are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

Legal notice regarding Forward Looking Statements

This release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this document include, but are not limited to, statements that: (i) Stockhouse believes that negotiating with vendors may result in any further cost savings; (ii) Stockhouse believes it is at the leading edge of being able to serve citizen journalist contributors and filter the highest quality content to create a new community news feed on the stock market; (iii) the addition of reputation analytics, collaborative tools, citizen journalism and social networking features for investors to the Stockhouse website will further position Stockhouse as a leader in online financial media; Factors which could delay or prevent these forward looking statements from being achieved include that our product offerings may present greater technical challenges than anticipated, causing delays or preventing features we intend to offer; that competitors may offer better or cheaper alternatives to our products; we may lose key employees; we may not have sufficient capital to fund our plans; and that the market for our products may not grow. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date of this press release. In addition, this release should be read in conjunction with the Company's current periodic reports which are on file with the SEC and available at the SEC website at www.sec.gov. Stockhouse undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. All forward looking statements are qualified in their entirety by this cautionary statement.

To find out more about Stockhouse, Inc. (OTCBB: STKH, TSX-V: SHC), visit our website at www.stockgroup.com.



CONSOLIDATED BALANCE SHEETS
(Expressed in Thousands of U.S. Dollars, except number of shares
information)
(Unaudited)

As at
March 31, December 31,
2009 2008
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $ 518 $ 728
Restricted cash - 131
Accounts receivable (net of allowance
of $515 and $347) 1,077 1,327
Prepaid expenses and other current assets 295 253
----------- -----------
TOTAL CURRENT ASSETS 1,890 2,439

Property and equipment, net 498 555
Intangible assets, net 175 208
----------- -----------
TOTAL ASSETS $ 2,563 $ 3,202
----------- -----------
----------- -----------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 2,058 $ 1,561
Accrued liabilities 1,692 2,085
Deferred revenues 658 711
Debentures 549 545
Capital lease obligations 50 78
----------- -----------
TOTAL CURRENT LIABILITIES 5,007 4,980

Long-term capital lease obligations - 4
Long-term deferred revenues 93 103
----------- -----------
TOTAL LIABILITIES 5,100 5,087
----------- -----------

SHAREHOLDERS' DEFICIENCY

Preferred stock
Series A convertible, $1,000 per share
authorized 5,000,000 shares
issued and outstanding 3,000 shares 2,969 2,969

Common stock
authorized 75,000,000 shares, no par value:
issued and outstanding 41,295,922 shares 18,910 18,910
Additional paid-in capital 3,853 3,820
Accumulated deficit (28,269) (27,584)
----------- -----------
TOTAL SHAREHOLDERS' DEFICIENCY (2,537) (1,885)
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TOTAL LIABILITIES
AND SHAREHOLDERS' DEFICIENCY $ 2,563 $ 3,202
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CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in Thousands of U.S. Dollars, except number of shares and per
share information)
(Unaudited)

Three Months Ended
March 31,
2009 2008
-------------------------
REVENUES
Licensing and subscriptions $ 1,672 $ 2,624
Advertising 478 875
-------------------------
TOTAL REVENUES $ 2,150 $ 3,499

OPERATING COSTS AND EXPENSES
Cost of revenues (exclusive of amortization) 987 1,469
Sales and marketing 549 1,382
Research and development 136 382
General and administrative 1,107 1,915
Amortization of intangible assets 33 144
-------------------------
TOTAL OPERATING EXPENSES 2,812 5,292
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Loss from operations (662) (1,793)
Interest and other expense (income), net 23 (347)
-------------------------

-------------------------
Net loss and comprehensive loss $ (685) $ (1,446)
-------------------------
-------------------------

Net loss per common share:
Basic and diluted $ (0.02) $ (0.04)
-------------------------
-------------------------

Common shares used in computing basic and
diluted net loss per share (thousands) 41,296 41,106
-------------------------
-------------------------


CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in Thousands of U.S. Dollars)
(Unaudited)

Three Months Ended
March 31,
2009 2008
-------------------------

Operating activities:
Net loss $ (685) (1,446)
Adjustments to reconcile net loss to net cash
(used in) / provided by operating activities:
Amortization of property and equipment 87 84
Amortization of intangible assets 33 144
Stock-based compensation 33 60
Unrealized foreign exchange loss 4 -
Changes in operating assets and liabilities:
Accounts receivable 250 (113)
Prepaid and other current assets (42) (132)
Accounts payable 497 181
Accrued liabilities (393) 133
Deferred revenues (63) (57)
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CASH USED IN OPERATING ACTIVITIES (279) (1,146)
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Investing activities:
Purchases of property and equipment (30) (13)
Restricted cash 131 -
Acquisition of Semotus Assets - (18)
-------------------------
CASH PROVIDED BY(USED IN) INVESTING ACTIVITIES 101 (31)
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Financing activities:
Proceeds on exercise of stock options - 116
Repayment of capital lease obligations (32) (70)
-------------------------
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (32) 46
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Net decrease in cash and cash equivalents (210) (1,131)
Cash and cash equivalents, beginning of period 728 2,821
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Cash and cash equivalents, end of period $ 518 1,690
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The TSX Venture Exchange and the OTCBB have not reviewed and do not accept responsibility for the adequacy or accuracy of this press release.

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