Cinedigm Reports Third Quarter Fiscal 2021 Earnings Quarter Ending December 31, 2020
Streaming Channel Revenues up 85% Year-Over-Year
Ad-supported Streaming Channel Revenues up 150% Year over Year
Key Financial Results:
- Consolidated revenues were
$10.0 million , with streaming channel revenues up 85% versus prior year quarter - Ad-supported streaming channel revenues increased 79% sequentially over the prior quarter and 150% over the prior year quarter.
- Streaming digital content licensing and sales increased 34% year-over-year, driven by partners such as Amazon
- Combined OTT Streaming and Digital revenues increased 58% versus prior year quarter and 36% sequentially over the prior quarter
- Core Business (Base Distribution and OTT Streaming and Digital excluding corporate) Adjusted EBITDA for the three-month period ending
December 31, 2020 increased$1.8 million to$1.3 million or 376% versus the three-month period endingDecember 31, 2019 and increased by$4.7 million or 138% versus the nine-month period endingDecember 31, 2019 - Total debt was reduced by
$25.7 million , or 51%, versus prior year, including conversion of$15 million of convertible notes to equity at$1.50 per share
Key Business Highlights During Third Quarter Fiscal 2021 (Quarter ended
- Total streaming minutes in the quarter were 907 million, a new company record, and up 391% versus the prior year quarter
- Total monthly ad-supported streaming channel viewers rose to 22.6 million, up 303% over the prior year quarter
- Acquired The Film Detective, a leading streaming content company for classic film and television programming. The acquisition adds The Film Detective's library, comprised of 3,000 content titles, an estimated 10,000 individual film and TV episodes and two streaming networks (The Film Detective and Lonestar channels) to
Cinedigm 's expansive portfolio of streaming channels and content - Launched the popular The
Bob Ross Channel on Viacom's streaming television service, Pluto TV - Expanded streaming channel portfolio to 25 channels either launched or under contract versus nine channels a year ago
Key Business Highlights Subsequent to Quarter End:
Acquisitions:
- Acquired Fandor®, the leading global independent film subscription streaming service with the largest collection of independent films, documentaries, and international features in the market and called "The Netflix for Indie Film" by The Wall Street Journal and "A streaming rabbit hole worth falling down" by The New York Times
- Acquired Screambox®, a popular enthusiast streaming service targeting the highly lucrative horror genre, called "The Perfect Horror Streaming Alternative to Netflix" by Tech Times and named one of the best Streaming Services for 2021 by PC Mag
- Combined organic and acquisition growth increased total Cinedigm Streaming channel active subscribers to approx. 245,000, up 216% over the trailing twelve months
- Launched three of the Company's streaming channels, The
Bob Ross Channel , CONtv Anime and MyTime Movie Network, on VIZIO SmartCast, the award-winning Smart TV platform available to millions of viewers.VIZIO, Inc ., is the #1 American-based TV brand1 and the #1 Sound Bar brand in America - Launched SO… REAL, a non-fiction streaming service from Liberty Global & Discovery's
All3Media joint venture, on the Roku® platform - Partnered with TCL, one of the world's best-selling electronics brands, to include all of its streaming channels in TCL's launch of a linear service on select TVs in
North America - Chose Team Whistle, a global media and entertainment company that includes Whistle,
Tiny Horse , New Form and Vertical Networks, asAgency of Record and exclusive direct ad sales agent forCinedigm 's portfolio of ad-supported OTT networks - Launched The Bob Ross Channel,
Dove Channel , FashionBox, and Whistle TV on Rockbot, theGoogle andUniversal Music Group -backed out-of-home media streaming service with 20 million monthly viewers
Corporate Finance
- Completed the sale of 5,600,000 shares of its Class A common stock at a purchase price of
$1.25 per share in a registered direct offering to a single institutional investor - Eliminated all of the Company's remaining second lien notes in exchange for common equity and cash, reducing remaining recourse debt to a less than
$3 million balance on the low interest revolving credit facility withEast West Bank
"
"As demonstrated by the fantastic organic growth results we have achieved this year, our platform and technology give
Fiscal Third Quarter Financial Summary (comparing the three months ended
Revenue was
The Company reported a consolidated net loss of
For the third quarter of fiscal year 2021, consolidated adjusted EBITDA was
As of
Total debt was reduced by
Conference Call
To participate in the conference call, please dial 877-407-9124 or for international callers 201-689-8584 at least five minutes prior to the start of the call. No passcode is required. An audio webcast is available directly at the following link https://www.webcaster4.com/Webcast/Page/2478/40084 and will also be accessible at http://investor.cinedigm.com/events.cfm. To listen to the live webcast, please visit the site prior to the start of the call-in order to register, download and install any necessary audio software.
For those unable to participate during the live broadcast, a replay will be available by dialing 877-481-4010 (
Adjusted EBITDA is defined by the Company for the periods presented to be earnings before interest, taxes, depreciation and amortization, other income, net, goodwill impairment, litigation related expenses and recoveries, stock-based compensation, expenses, restructuring, transition and acquisitions expenses, net, and certain other items. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of loss from continuing operations calculated in accordance with accounting principles generally accepted in
About
For more than twenty years,
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Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of
For more information:
jcalcaterra@cinedigm.com
310-466-5135
Tables Follow
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
|
2020 |
|||||||
|
(Unaudited) | |||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$ | 26,207 | $ | 14,294 | ||||
Accounts receivable, net
|
25,088 | 34,785 | ||||||
Inventory, net
|
223 | 582 | ||||||
Unbilled revenue
|
3,077 | 1,992 | ||||||
Prepaid and other current assets
|
7,390 | 9,409 | ||||||
Total current assets
|
61,985 | 61,062 | ||||||
Restricted cash
|
1,000 | 1,000 | ||||||
Equity investment in Starrise, a related party, at fair value
|
7,584 | 23,433 | ||||||
Property and equipment, net
|
4,241 | 7,967 | ||||||
Right-of-use assets
|
- | 1,210 | ||||||
Intangible assets, net
|
8,039 | 6,924 | ||||||
|
8,701 | 8,701 | ||||||
Other long-term assets
|
139 | 143 | ||||||
Total assets
|
$ | 91,689 | $ | 110,440 | ||||
LIABILITIES AND EQUITY (DEFICIT)
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$ | 54,137 | $ | 77,085 | ||||
Current portion of notes payable, including unamortized debt discount of
(see Note 6) |
11,890 | 37,249 | ||||||
Current portion of notes payable, non-recourse including unamortized debt discount of $- and
|
11,153 | 11,442 | ||||||
Operating lease liabilities
|
117 | 593 | ||||||
Current portion of deferred revenue
|
1,336 | 1,645 | ||||||
Total current liabilities
|
78,633 | 128,014 | ||||||
|
||||||||
Notes payable
|
2,153 | - | ||||||
Operating lease liabilities, noncurrent
|
17 | 684 | ||||||
Deferred revenue, net of current portion
|
4 | 919 | ||||||
Other long-term liabilities
|
- | 110 | ||||||
Total liabilities
|
80,807 | 129,727 | ||||||
Commitments and contingencies (see Note 8)
|
||||||||
Stockholders' equity (deficit)
|
||||||||
Preferred stock, 15,000,000 shares authorized; Series A 10% -
|
3,559 | 3,559 | ||||||
Common stock,
|
153 | 62 | ||||||
Additional paid-in capital
|
487,418 | 400,784 | ||||||
|
(11,603 | ) | (11,603 | ) | ||||
Accumulated deficit
|
(467,214 | ) | (410,904 | ) | ||||
Accumulated other comprehensive (loss) income
|
(94 | ) | 92 | |||||
Total stockholders' equity (deficit) of
|
12,219 | (18,010 | ) | |||||
Deficit attributable to noncontrolling interest
|
(1,337 | ) | (1,277 | ) | ||||
Total equity (deficit)
|
10,882 | (19,287 | ) | |||||
Total liabilities and equity
|
$ | 91,689 | $ | 110,440 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for share and per share data)
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenues
|
$ | 9,954 | $ | 11,512 | $ | 23,154 | $ | 31,556 | ||||||||
Costs and expenses:
|
||||||||||||||||
Direct operating (excludes depreciation and amortization shown below)
|
4,385 | 5,726 | 11,394 | 13,425 | ||||||||||||
Selling, general and administrative
|
5,361 | 2,997 | 15,369 | 13,834 | ||||||||||||
(Recovery) provision for doubtful accounts
|
70 | (5 | ) | (123 | ) | 321 | ||||||||||
|
||||||||||||||||
Depreciation and amortization of property and equipment
|
822 | 1,594 | 3,691 | 4,977 | ||||||||||||
Amortization of intangible assets
|
597 | 589 | 1,778 | 2,178 | ||||||||||||
Total operating expenses
|
11,235 | 10,901 | 32,109 | 34,735 | ||||||||||||
(Loss) income operations
|
(1,281 | ) | 611 | (8,955 | ) | (3,179 | ) | |||||||||
Interest expense, net
|
(948 | ) | (1,618 | ) | (3,432 | ) | (5,713 | ) | ||||||||
Loss on extinguishment of notes payable
|
(540 | ) | - | (852 | ) | - | ||||||||||
Change in fair value of equity investment in Starrise, a related party
|
(6,751 | ) | - | (42,377 | ) | - | ||||||||||
Other expense, net
|
(147 | ) | (1,019 | ) | (668 | ) | (1,187 | ) | ||||||||
Loss from operations before income taxes
|
(9,667 | ) | (2,026 | ) | (56,284 | ) | (10,079 | ) | ||||||||
Income tax benefit (expense)
|
- | (136 | ) | 181 | (210 | ) | ||||||||||
Net loss
|
(9,667 | ) | (2,162 | ) | (56,103 | ) | (10,289 | ) | ||||||||
Net income (loss) attributable to noncontrolling interest
|
23 | (7 | ) | 60 | (8 | ) | ||||||||||
Net loss attributable to controlling interests
|
(9,644 | ) | (2,169 | ) | (56,043 | ) | (10,297 | ) | ||||||||
Preferred stock dividends
|
(89 | ) | (89 | ) | (267 | ) | (267 | ) | ||||||||
Net loss attributable to common stockholders
|
$ | (9,733 | ) | $ | (2,258 | ) | $ | (56,310 | ) | $ | (10,564 | ) | ||||
Net loss per Class A common stock attributable to common stockholders - basic and diluted:
|
$ | (0.07 | ) | $ | (0.05 | ) | $ | (0.49 | ) | $ | (0.26 | ) | ||||
Weighted average number of Class A common stock outstanding: basic and diluted
|
136,866,072 | 42,418,641 | 115,347,494 | 40,745,114 |
Adjusted EBIDTA
Following is the reconciliation of our consolidated net loss to Adjusted EBITDA:
|
Three Months Ended |
|||||||
($ in thousands)
|
2020 | 2019 | ||||||
Net loss
|
$ | (9,667 | ) | $ | (2,162 | ) | ||
Add Back:
|
||||||||
Income tax expense
|
- | 136 | ||||||
Depreciation and amortization of property and equipment
|
822 | 1,594 | ||||||
Amortization of intangible assets
|
597 | 589 | ||||||
Loss on extinguishment of notes payable
|
540 | - | ||||||
Interest expense, net
|
948 | 1,618 | ||||||
Changes in fair value on equity investment in Starrise
|
6,751 | - | ||||||
Other (income) expense, net
|
(66 | ) | 777 | |||||
Stock-based compensation and expenses
|
960 | 178 | ||||||
Net income (loss) attributable to noncontrolling interest
|
23 | (7 | ) | |||||
Adjusted EBITDA
|
$ | 908 | $ | 2,723 | ||||
|
||||||||
Adjustments related to the Cinema Equipment Business
|
||||||||
|
||||||||
Depreciation and amortization of property and equipment
|
$ | (706 | ) | $ | (1,475 | ) | ||
Amortization of intangible assets
|
(8 | ) | (11 | ) | ||||
Other income and expense
|
(32 | ) | - | |||||
Income (loss) from operations
|
691 | (600 | ) | |||||
Adjusted EBITDA from
|
$ | 885 | $ | 637 | ||||
|
Adjusted EBITDA
|
Nine Months Ended |
|||||||
($ in thousands)
|
2020 | 2019 | ||||||
Net loss
|
(56,103 | ) | (10,289 | ) | ||||
Add Back:
|
||||||||
Income tax (benefit) expense
|
(181 | ) | 210 | |||||
Depreciation and amortization of property and equipment
|
3,691 | 4,977 | ||||||
Amortization of intangible assets
|
1,778 | 2,178 | ||||||
Loss on extinguishment of notes payable
|
852 | - | ||||||
Interest expense, net
|
3,432 | 5,713 | ||||||
Changes in fair value on equity investment in Starrise
|
42,377 | - | ||||||
Other expense, net
|
1,539 | 1,536 | ||||||
Stock-based compensation
|
2,172 | 367 | ||||||
Net loss (income) attributable to noncontrolling interest
|
60 | (8 | ) | |||||
Adjusted EBITDA
|
$ | (383 | ) | $ | 4,684 | |||
|
||||||||
Adjustments related to the Cinema Equipment Business
|
||||||||
Depreciation and amortization of property and equipment
|
(3,348 | ) | (4,612 | ) | ||||
Amortization of intangible assets
|
(23 | ) | (34 | ) | ||||
Stock-based compensation and expenses
|
- | 7 | ||||||
Other income and expense
|
(32 | ) | - | |||||
Income (loss) from operations
|
3,736 | (2,650 | ) | |||||
Adjusted EBITDA from
|
$ | (50 | ) | $ | (2,605 | ) |
1 Source:
SOURCE:
accesswire.com
https://www.accesswire.com/631179/Cinedigm-Reports-Third-Quarter-Fiscal-2021-Earnings-Quarter-Ending-December-31-2020