ACCESS Newswire
23 Feb 2021, 04:07 GMT+10
Streaming Channel Revenues up 85% Year-Over-Year
Ad-supported Streaming Channel Revenues up 150% Year over Year
LOS ANGELES, CA / ACCESSWIRE / February 22, 2021 / Cinedigm Corp. (NASDAQ:CIDM) today announced its financial results for the three-month period ended December 31, 2020.
Key Financial Results:
Key Business Highlights During Third Quarter Fiscal 2021 (Quarter ended December 31, 2020)
Key Business Highlights Subsequent to Quarter End:
Acquisitions:
Business Development & Distribution:
Corporate Finance
'Cinedigm had an extremely strong fiscal third quarter financially and every key streaming growth metric increased substantially, creating great momentum as we entered calendar year 2021 in tremendous shape,' said Chris McGurk, Cinedigm's Chairman and CEO. 'Our streaming business, where we are laser- focused on building out a portfolio of targeted enthusiast channels, is growing rapidly both organically and through our streaming roll-up acquisition strategy, which has delivered three key, accretive streaming assets in just the last three months in The Film Detective, Fandor and Screambox. We have significantly reduced our debt and have substantial cash reserves, which gives us the firepower to continue to rapidly execute this strategy in the face of limited competition because of our expansive global distribution footprint, huge library of digital content, infrastructure and market leading Matchpoint streaming technology. We are also pleased to have again registered positive and growing adjusted EBITDA in our core business at the same time as we are rapidly expanding the streaming business and investing behind that growth.'
Gary Loffredo, Chief Operating Officer and General Counsel, added, 'Our efforts over the past year to reduce our debt and interest expense have resulted in a strong balance sheet and cash position that will enable Cinedigm to continue the growth of our core business and to execute on our roll-up acquisition strategy. We eliminated all of our convertible notes and all of our Second Lien debt. We have a strong cash position that will enable Cinedigm to take advantage of future accretive acquisitions. We achieved that reduction in debt while simultaneously growing our core business EBITDA and investing behind our rapidly growing streaming business.'
'As demonstrated by the fantastic organic growth results we have achieved this year, our platform and technology give Cinedigm a clear competitive advantage in launching, operating and scaling streaming services profitably and efficiently,' said Erick Opeka, Chief Strategy Officer and President of Cinedigm Networks. 'As the studios and tech giants spend tens of billions of dollars to compete for general entertainment audiences with Netflix, they are clearly ignoring large enthusiast verticals. At the same time, tens of millions of consumers around the globe are shifting their entertainment spend from cable to streaming. Amidst this perfect storm, we have a clear opportunity to leverage our unique platform and market position to build and acquire a compelling portfolio of enthusiast services catering to tens of millions of passionate fans. It is the perfect strategy at the ideal moment in history.'
Fiscal Third Quarter Financial Summary (comparing the three months ended December 31, 2020 to the three months ended December 31, 2019)
Revenue was $10.0 million, a decrease of 13.5% compared to $11.5 million in the prior year period, due to the expected decline in the legacy Cinema Equipment business and the negative impact of COVID-19 on theatrical revenues and temporary DVD warehousing and distribution center shutdowns due to COVID-19. This was partially offset by growth in streaming revenues. Advertising-based channel revenues increased 150% versus last year and 79% versus the prior quarter ending September 30, 2020.
The Company reported a consolidated net loss of $9.7 million for the third quarter of fiscal year 2021. Excluding the unrealized change in fair value of our equity investment in Starrise Media Holdings Limited, the operating net loss was $2.9 million, or $.02 per share, driven in large part by the loss of theatrical revenues in the legacy Cinema Equipment business due to COVID-19.
For the third quarter of fiscal year 2021, consolidated adjusted EBITDA was $0.9 million, compared to $2.7 million in the prior quarter period. This decrease was primarily due to the expected decline of our legacy Cinema Equipment business and the negative impact of COVID-19 on theatrical revenues and temporary DVD warehousing and distribution center shutdowns due to the impact of COVID-19.
As of December 31, 2020, the Company had cash and cash equivalents of $26.2 million compared to $14.3 million as of March 31, 2020, the end of our last fiscal year.
Total debt was reduced by $25.7 million, or 51%, versus December 31, 2019, compared to March 31, 2020 total debt was reduced by $23.7 million or 48.3%.
Conference Call
Cinedigm will host a conference call to discuss its financial results at 3:00 pm PT / 6:00 pm ET on February 22, 2021.
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 (U.S.) or (919) 882-2331 (International) and use passcode: 40084
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 the United States of America ('GAAP') to Adjusted EBITDA. Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net loss as an indicator of operating performance. Management also believes that Adjusted EBITDA is an industry-wide financial measure that is useful both to management and investors when evaluating the Company's performance and comparing our performance with the performance of our competitors. Management also uses adjusted EBITDA for planning purposes, as well as to evaluate the Company's performance because it believes that adjusted EBITDA more accurately reflects the Company's results, as it excludes certain items, such as stock-based compensation charges, that management believes are not indicative of the Company's operating performance. The Company believes that Adjusted EBITDA is a performance measure and not a liquidity measure. Adjusted EBITDA should not be considered as an alternative to operating or net loss as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and 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 the United States of America ('GAAP') to Adjusted EBITDA. Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. The Company calculated and communicated Adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. Management presents Adjusted EBITDA because it believes that Adjusted EBITDA is a useful supplement to net loss as an indicator of operating performance. Management also believes that Adjusted EBITDA is an industry-wide financial measure that is useful both to management and investors when evaluating the Company's performance and comparing our performance with the performance of our competitors. Management also uses adjusted EBITDA for planning purposes, as well as to evaluate the Company's performance because it believes that adjusted EBITDA more accurately reflects the Company's results, as it excludes certain items, such as stock-based compensation charges, that management believes are not indicative of the Company's operating performance. The Company believes that Adjusted EBITDA is a performance measure and not a liquidity measure. Adjusted EBITDA should not be considered as an alternative to operating or net loss as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP income taxes that can affect cash flows. The Company's calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of net income (loss). In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.
About Cinedigm
For more than twenty years, Cinedigm has led the digital transformation of the entertainment industry. Today, Cinedigm enables hundreds of millions of consumers around the globe to stream their passions by delivering enthusiast streaming channels and content to the world's largest media, technology and retail companies.
Material Public Information Disclosure
Cinedigm uses its website, press releases, SEC filings, and various social media channels, including Twitter, LinkedIn, Facebook, StockTwits and the Company website as additional means of disclosing public information to investors, the media and others interested in the Company. It is possible that certain information that the Company posts to these aforementioned dissemination channels could be deemed to be material information, and the Company encourages investors, the media and others interested in the Company to review the business and financial information that the Company posts on any of the channels identified above, as such information could be deemed to be material information.
[CIDM-E]
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 Cinedigm officials during presentations about Cinedigm, along with Cinedigm's filings with the Securities and Exchange Commission, including Cinedigm's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are 'forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the 'Act''). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as 'expects,' 'anticipates,'' 'intends,'' 'plans,'' 'could,' 'might,' 'believes,'' 'seeks,' 'estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cinedigm's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its technology, economic and market factors and the industries in which Cinedigm does business, among other things. These statements are not guarantees of future performance and Cinedigm undertakes no specific obligation or intention to update these statements after the date of this release.
For more information:
Jill Newhouse Calcaterra
Cinedigm
[email protected]
310-466-5135
Tables Follow
CINEDIGM CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
CINEDIGM CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for share and per share data)
Adjusted EBIDTA
Following is the reconciliation of our consolidated net loss to Adjusted EBITDA:
Adjusted EBITDA
1 Source: The NPD Group, Inc., U.S. Weekly Retail Tracking Service, LCD TV, Based on units, Jan. 6, 2019 - Nov. 30, 2019 combined.
SOURCE: Cinedigm Corp.
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