Local Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2014. For the quarter, the company reported revenue of $26.2 million grew 22% year-over-year from $21.46 million a year ago, based on strong contributions from the company's Extended Ad Network. Operating loss was $1,677,000 compared to $2,223,000 a year ago. Loss from continuing operations before income taxes was $2,554,000 compared to $3,060,000 a year ago. Net loss from continuing operations was $2,828,000 or $0.12 per basic and diluted share, compared to $3,132,000 or $0.14 per basic and diluted share, a year ago. Net loss was $2,828,000 or $0.12 per basic and diluted share, compared to $3,353,000 or $0.15 per basic and diluted share, a year ago. Net cash used in operating activities was $727,000 compared to net cash provided by operating activities of $1,057,000 a year ago. Capital expenditures were $940,000 compared to $635,000 a year ago. Adjusted EBITDA for the first quarter of 2014 was $712,000, or $0.03 per diluted share. This compares to fourth quarter 2013 adjusted EBITDA of $1.4 million, or $0.06 per diluted share, and first quarter 2013 adjusted EBITDA of $685,000, or $0.03 per diluted share.

The company provided earnings guidance for the full year of 2014. For the year, the company continues to expect 2014 revenue of between $103 million and $107 million, which at the mid-point, is an increase of 11% over 2013 revenue. The company reiterated expected adjusted EBITDA for 2014 to be between $3 million and $4 million or between $0.13 and $0.17 per diluted share, assuming diluted weighted average shares of 23.5 million taking into account the dilutive effect of stock options and warrants. The decrease from 2013 adjusted EBITDA is a result of the company's continued investments in expanding new initiatives in shopping and mobile and due to lower than expected gross margins from lower organic traffic. Projected 2014 adjusted EBITDA factors like interest expense of $1.7 million; income tax provision of $200,000; depreciation expense of $4.0 million; amortization expense of $900,000; stock compensation expense of $800,000; severance charges of $1.8 million; and warrant and conversion option revaluation expense items are undeterminable, but may be significant non-cash gains or losses.