Delaware
|
001-31810
|
22-3720962
|
(State or other jurisdiction
of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
902 Broadway, 9th Floor, New York, New York
|
10010
|
(Address of principal executive offices)
|
(Zip Code)
|
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01.
|
Financial Statements and Exhibits
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release, dated November 13, 2014, announcing Cinedigm Corp.’s three months and six months ended September 30, 2014 financial results.
|
CINEDIGM CORP.
|
|||
Dated: November 13, 2014
|
By:
|
/s/ Gary S. Loffredo
|
|
Gary S. Loffredo
President of Digital Cinema, General Counsel and Secretary
|
Exhibit No.
|
Description
|
|
99.1
|
Press Release, dated November 13, 2014, announcing Cinedigm Corp.’s three months and six months ended September 30, 2014 financial results.
|
●
|
Consolidated revenues increased 23% to $23.7 million from $19.2 million in the prior year quarter
|
●
|
Consolidated adjusted EBITDA increased 11% to $12.4 million from $11.2 million in the prior year quarter
|
●
|
Non-deployment revenues (entertainment and services) increased 77% to $11.9 million from $6.7 million in the prior year quarter
|
●
|
Non-deployment adjusted EBITDA increased 273% to $1.2 million from $(0.7) million in the prior year quarter
|
●
|
Cinedigm Entertainment Group (CEG) revenues expanded by 142% due to the addition of GVE and additional organic growth
|
●
|
35 new distribution deals signed in 2014, rapidly filling the future content pipeline
|
●
|
Physical goods shipments and operations have returned to normal performance levels following our back-office transition that was completed last quarter
|
●
|
Cinedigm successfully managed one of its largest ever DVD releases, GOD’S NOT DEAD, with results exceeding sales expectations with over one million units shipped to retail and extremely high sell through to consumers
|
●
|
Cinedigm’s OTT digital network, CONtv, in partnership with Wizard World Comic Con, is on schedule to launch in early 2015 with over 1,500 hours of premium content, original series and Comic Con footage already secured for the program lineup
|
●
|
Cinedigm’s OTT digital network, The Dove Channel, is set to launch in spring 2015 via a partnership with The Dove Foundation and will be targeted to families seeking high quality, wholesome, family-friendly and faith-based content
|
September 30, 2014
|
March 31, 2014
|
|||||
ASSETS
|
(Unaudited)
|
|||||
Current assets
|
||||||
Cash and cash equivalents
|
$
|
29,746
|
$
|
50,215
|
||
Accounts receivable, net
|
74,560
|
56,863
|
||||
Inventory
|
3,185
|
3,164
|
||||
Unbilled revenue
|
3,535
|
5,144
|
||||
Prepaid and other current assets
|
18,635
|
8,698
|
||||
Note receivable, current portion
|
103
|
112
|
||||
Assets of discontinued operations, net of current liabilities
|
—
|
278
|
||||
Total current assets
|
129,764
|
124,474
|
||||
Restricted cash
|
6,751
|
6,751
|
||||
Security deposits
|
346
|
269
|
||||
Property and equipment, net
|
116,362
|
134,936
|
||||
Intangible assets, net
|
34,295
|
37,639
|
||||
Goodwill
|
32,701
|
25,494
|
||||
Deferred costs, net
|
8,218
|
9,279
|
||||
Accounts receivable, long-term
|
1,288
|
1,397
|
||||
Note receivable, net of current portion
|
59
|
99
|
||||
Assets of discontinued operations, net of current portion
|
—
|
5,660
|
||||
Total assets
|
$
|
329,784
|
$
|
345,998
|
September 30, 2014
|
March 31, 2014
|
|||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
|
(Unaudited)
|
|||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
98,012
|
$
|
72,604
|
||||
Current portion of notes payable, non-recourse
|
33,442
|
33,825
|
||||||
Current portion of notes payable
|
19,994
|
19,219
|
||||||
Current portion of capital leases
|
587
|
614
|
||||||
Current portion of deferred revenue
|
3,145
|
3,214
|
||||||
Total current liabilities
|
155,180
|
129,476
|
||||||
Notes payable, non-recourse, net of current portion
|
145,611
|
164,779
|
||||||
Notes payable, net of current portion
|
19,292
|
23,525
|
||||||
Capital leases, net of current portion
|
5,201
|
5,472
|
||||||
Deferred revenue, net of current portion
|
11,278
|
12,519
|
||||||
Total liabilities
|
336,562
|
335,771
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ (Deficit) Equity
|
||||||||
Preferred stock, 15,000,000 shares authorized;
Series A 10% - $0.001 par value per share; 20 shares
authorized; 7 shares issued and outstanding at September 30,
2014 and March 31, 2014, respectively. Liquidation
preference of $3,648
|
3,559
|
3,559
|
||||||
Class A common stock, $0.001 par value per share;
210,000,000 and 118,759,000 shares authorized; 76,839,407
and 76,571,972 shares issued and 76,787,967 and 76,520,532
shares outstanding at September 30, 2014 and March 31,
2014, respectively
|
77
|
76
|
||||||
Class B common stock, $0.001 par value per share; 1,241,000
shares authorized; 1,241,000 shares issued and 0 shares
outstanding, at September 30, 2014 and March 31, 2014,
respectively
|
—
|
—
|
||||||
Additional paid-in capital
|
276,696
|
275,519
|
||||||
Treasury stock, at cost; 51,440 Class A shares
|
(172
|
)
|
(172
|
)
|
||||
Accumulated deficit
|
(286,871
|
)
|
(268,686
|
)
|
||||
Accumulated other comprehensive loss
|
(67
|
)
|
(69
|
)
|
||||
Total stockholders’ (deficit) equity
|
(6,778
|
)
|
10,227
|
|||||
Total liabilities and stockholders’ (deficit) equity
|
$
|
329,784
|
$
|
345,998
|
For the Three Months Ended
September 30,
|
For the Six Months Ended September 30,
|
||||||||||||||
2014
|
2013
|
2014
|
2013
|
||||||||||||
Revenues
|
$
|
23,721
|
$
|
19,242
|
$
|
46,578
|
$
|
37,779
|
|||||||
Costs and expenses:
|
|||||||||||||||
Direct operating (exclusive of depreciation and amortization shown below)
|
3,311
|
4,753
|
11,815
|
8,532
|
|||||||||||
Selling, general and administrative
|
8,304
|
4,104
|
16,013
|
10,308
|
|||||||||||
Provision for doubtful accounts
|
78
|
132
|
172
|
194
|
|||||||||||
Transition and acquisition expenses
|
817
|
—
|
1,763
|
—
|
|||||||||||
Depreciation and amortization of property and equipment
|
9,391
|
9,212
|
18,767
|
18,457
|
|||||||||||
Amortization of intangible assets
|
1,464
|
409
|
3,349
|
827
|
|||||||||||
Total operating expenses
|
23,365
|
18,610
|
51,879
|
38,318
|
|||||||||||
Income (loss) from operations
|
356
|
632
|
(5,301
|
)
|
(539
|
)
|
|||||||||
Interest expense, net
|
(4,993
|
)
|
(4,532
|
)
|
(10,028
|
)
|
(9,456
|
)
|
|||||||
Loss on investment in non-consolidated entity
|
—
|
(560
|
)
|
—
|
(1,812
|
)
|
|||||||||
Other (expense) income, net
|
(39
|
)
|
113
|
100
|
247
|
||||||||||
Change in fair value of interest rate derivatives
|
84
|
(71
|
)
|
(175
|
)
|
758
|
|||||||||
Loss from continuing operations
|
(4,592
|
)
|
(4,418
|
)
|
(15,404
|
)
|
(10,802
|
)
|
|||||||
Income (loss) from discontinued operations
|
293
|
(749
|
)
|
442
|
(1,353
|
)
|
|||||||||
Loss on sale of discontinued operations
|
(3,045
|
)
|
—
|
(3,045
|
)
|
—
|
|||||||||
Net loss
|
(7,344
|
)
|
(5,167
|
)
|
(18,007
|
)
|
(12,155
|
)
|
|||||||
Preferred stock dividends
|
(89
|
)
|
(89
|
)
|
(178
|
)
|
(178
|
)
|
|||||||
Net loss attributable to common stockholders
|
$
|
(7,433
|
)
|
$
|
(5,256
|
)
|
$
|
(18,185
|
)
|
$
|
(12,333
|
)
|
|||
Net loss per Class A and Class B common share attributable to common shareholders - basic and diluted:
|
|||||||||||||||
Loss from continuing operations
|
$
|
(0.06
|
)
|
$
|
(0.09
|
)
|
$
|
(0.20
|
)
|
$
|
(0.22
|
)
|
|||
Loss from discontinued operations
|
(0.04
|
)
|
(0.01
|
)
|
(0.03
|
)
|
(0.02
|
)
|
|||||||
$
|
(0.10
|
)
|
$
|
(0.10
|
)
|
$
|
(0.23
|
)
|
$
|
(0.24
|
)
|
||||
Weighted average number of Class A and Class B common shares outstanding: basic and diluted
|
76,748,753
|
52,920,060
|
76,569,162
|
50,651,007
|
For the Three Months Ended September 30,
|
||||||||
($ in thousands)
|
2014
|
2013
|
||||||
Net loss from continuing operations
|
$
|
(4,592
|
)
|
$
|
(4,418
|
)
|
||
Add Back:
|
||||||||
Depreciation and amortization of property and equipment
|
9,391
|
9,212
|
||||||
Amortization of intangible assets
|
1,464
|
409
|
||||||
Interest expense, net
|
4,993
|
4,532
|
||||||
Loss on investment in non-consolidated entity
|
—
|
560
|
||||||
Other income, net
|
39
|
(113
|
)
|
|||||
Change in fair value of interest rate derivatives
|
(84
|
)
|
71
|
|||||
Stock-based compensation and expenses
|
407
|
499
|
||||||
Transaction and acquisition expenses
|
817
|
—
|
||||||
Allocated costs attributable to discontinued operations
|
—
|
468
|
||||||
Adjusted EBITDA
|
$
|
12,435
|
$
|
11,220
|
||||
Adjustments related to the Phase I and Phase II Deployments:
|
||||||||
Depreciation and amortization of property and equipment
|
$
|
(9,019
|
)
|
$
|
(9,018
|
)
|
||
Amortization of intangible assets
|
(12
|
)
|
(13
|
)
|
||||
Income from operations
|
(2,174
|
)
|
(2,907
|
)
|
||||
Intersegment services fees earned
|
—
|
5
|
||||||
Adjusted EBITDA from non-deployment businesses
|
$
|
1,230
|
$
|
(713
|
)
|
For the Six Months Ended September 30,
|
||||||||
($ in thousands)
|
2014
|
2013
|
||||||
Net loss from continuing operations
|
$
|
(15,404
|
)
|
$
|
(10,802
|
)
|
||
Add Back:
|
||||||||
Depreciation and amortization of property and equipment
|
18,767
|
18,457
|
||||||
Amortization of intangible assets
|
3,349
|
827
|
||||||
Interest expense, net
|
10,028
|
9,456
|
||||||
Loss on investment in non-consolidated entity
|
—
|
1,812
|
||||||
Other income, net
|
(100
|
)
|
(247
|
)
|
||||
Change in fair value of interest rate derivatives
|
175
|
(758
|
)
|
|||||
Stock-based compensation and expenses
|
1,025
|
1,183
|
||||||
Transaction and acquisition expenses
|
1,763
|
—
|
||||||
Allocated costs attributable to discontinued operations
|
—
|
1,002
|
||||||
Adjusted EBITDA
|
$
|
19,603
|
$
|
20,930
|
||||
Adjustments related to the Phase I and Phase II Deployments:
|
||||||||
Depreciation and amortization of property and equipment
|
$
|
(18,037
|
)
|
$
|
(18,036
|
)
|
||
Amortization of intangible assets
|
(23
|
)
|
(26
|
)
|
||||
Income from operations
|
(5,204
|
)
|
(5,245
|
)
|
||||
Intersegment services fees earned
|
—
|
11
|
||||||
Adjusted EBITDA from non-deployment businesses
|
$
|
(3,661
|
)
|
$
|
(2,366
|
)
|
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