001-35675
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45-4950432
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(Commission File Number)
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(IRS Employer Identification Number)
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☐ | 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)) |
Exhibit No. | Description |
99.1 | Press release issued on June 8, 2015 |
RLJ ENTERTAINMENT, INC.
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Date: June 8, 2015
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By:
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/s/ ANDREW S. WILSON
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Name: Andrew S. Wilson
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Title: Chief Financial Officer
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Exhibit No. | Description |
99.1 | Press release issued on June 8, 2015 |
§ | Adjusted EBITDA improved 49.0% from a loss of $6.7 million to a loss of $3.4 million for the quarter ended March 31, 2015 compared to the same quarter last year |
§ | Revenue was $26.1 million compared to $30.2 million for the same quarter last year |
§ | The gross margin improved 13.0% to 22.6% for the period ended March 31, 2015 compared to 20.0% for the quarter ended March 31, 2014. |
§ | Acorn TV’s paid subscribers increased 73.3% to 130,000 subscribers as of March 31, 2015 compared to approximately 75,000 subscribers as of March 31, 2014. |
§ | Our financial performance, including our ability to achieve revenue growth and Adjusted EBITDA; |
§ | The effects of limited cash liquidity on operational growth; |
§ | Our ability to satisfy financial ratios; |
§ | Our ability to fund planned capital expenditures and development efforts; |
§ | Our inability to gauge and predict the commercial success of our programming; |
§ | Our ability to raise additional capital to reduce debt, improve liquidity and fund capital requirements; |
§ | The ability of our officers and directors to generate a number of potential investment opportunities; |
§ | Our ability to maintain relationships with customers, employees and suppliers; |
§ | Delays in the release of new titles or other content; |
§ | The effects of disruptions in our supply chain; |
§ | The loss of key personnel; |
§ | Our public securities’ limited liquidity and trading; or |
§ | Our ability to continue to meet the NASDAQ Capital Market continuing listing standards. |
(In thousands, except share data)
|
March 31,
|
December 31,
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||||||
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2015
|
2014
|
||||||
ASSETS
|
||||||||
Cash
|
$
|
3,128
|
$
|
6,662
|
||||
Accounts receivable, net
|
12,091
|
17,389
|
||||||
Inventories
|
12,008
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13,029
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||||||
Investments in content, net
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64,912
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67,525
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||||||
Prepaid expenses and other assets
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3,287
|
2,633
|
||||||
Property, equipment and improvements, net
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2,205
|
2,372
|
||||||
Equity investment in affiliates
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21,447
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22,281
|
||||||
Other intangible assets
|
14,399
|
15,272
|
||||||
Goodwill
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44,891
|
44,891
|
||||||
Total assets
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$
|
178,368
|
$
|
192,054
|
||||
LIABILITIES AND EQUITY
|
||||||||
Accounts payable and accrued liabilities
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$
|
22,865
|
$
|
24,582
|
||||
Accrued royalties and distribution fees
|
43,344
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42,493
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||||||
Deferred revenue
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3,708
|
5,006
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||||||
Debt, net of discount
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80,693
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80,913
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||||||
Deferred tax liability
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2,002
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2,002
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||||||
Stock warrant liability
|
104
|
601
|
||||||
Total liabilities
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152,716
|
155,597
|
||||||
Equity:
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||||||||
Common stock, $0.001 par value, 250,000,000 shares authorized, 13,724,756 shares issued at March 31, 2015 and December 31, 2014, and 12,895,772 shares and 13,335,258 shares outstanding at March 31, 2015 and December 31, 2014, respectively
|
14
|
14
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||||||
Additional paid-in capital
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87,900
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87,706
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||||||
Accumulated deficit
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(61,164
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)
|
(50,534
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)
|
||||
Accumulated other comprehensive loss
|
(1,098
|
)
|
(729
|
)
|
||||
Treasury shares, at cost, 828,984 shares at March 31, 2015 and 389,498 shares at December 31, 2014
|
—
|
—
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||||||
Total equity
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25,652
|
36,457
|
||||||
Total liabilities and equity
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$
|
178,368
|
$
|
192,054
|
|
Three Months Ended
March 31,
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|||||||
(In thousands, except per share data)
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2015
|
2014
|
||||||
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Revenues
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$
|
26,116
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$
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30,272
|
||||
Cost of Sales
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||||||||
Content amortization and royalties
|
11,887
|
14,173
|
||||||
Manufacturing and fulfillment
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8,330
|
10,031
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||||||
Total cost of sales
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20,217
|
24,204
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||||||
Gross profit
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5,899
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6,068
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||||||
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||||||||
Selling expenses
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6,559
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5,773
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||||||
General and administrative expenses
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5,515
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5,145
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Depreciation and amortization
|
1,165
|
1,523
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||||||
Total operating expenses
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13,239
|
12,441
|
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LOSS FROM OPERATIONS
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(7,340
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)
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(6,373
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)
|
||||
|
||||||||
Equity earnings of affiliates
|
250
|
305
|
||||||
Interest expense, net
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(2,943
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)
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(2,018
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)
|
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Change in fair value of stock warrants
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497
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(1,800
|
)
|
|||||
Other income (expense)
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(776
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)
|
123
|
|||||
LOSS BEFORE PROVISION FOR INCOME TAXES
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(10,312
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)
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(9,763
|
)
|
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Provision for income taxes
|
(318
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)
|
(308
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)
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||||
NET LOSS
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$
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(10,630
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)
|
$
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(10,071
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)
|
||
Net loss per common share:
|
||||||||
Basic and diluted
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$
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(0.84
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)
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$
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(0.81
|
)
|
||
Weighted average shares outstanding:
|
||||||||
Basic and diluted
|
12,680
|
12,454
|
|
Three Months Ended
March 31,
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(In thousands)
|
2015
|
2014
|
||||||
|
||||||||
Net loss
|
$
|
(10,630
|
)
|
$
|
(10,071
|
)
|
||
|
||||||||
Amortization of content
|
11,887
|
14,173
|
||||||
Cash investment in content
|
(8,796
|
)
|
(16,490
|
)
|
||||
Depreciation and amortization
|
1,165
|
1,523
|
||||||
Interest expense
|
2,943
|
2,018
|
||||||
Provision for income tax
|
318
|
308
|
||||||
Transactions costs and severance
|
—
|
—
|
||||||
Warrant liability fair value adjustment
|
(497
|
)
|
1,800
|
|||||
Stock-based compensation
|
194
|
35
|
||||||
Adjusted EBITDA
|
$
|
(3,416
|
)
|
$
|
(6,704
|
)
|
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