-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MPc6/2NzwqIzvX0p6Va35KFXvWTQ+th9R5ODg/mZj3NVz99tDVIUTFbOzC4ERzG6 cW4qUc9NYl6SppEsdKhp3g== 0000892917-04-000227.txt : 20040816 0000892917-04-000227.hdr.sgml : 20040816 20040816165719 ACCESSION NUMBER: 0000892917-04-000227 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040816 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20040816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RENTRAK CORP CENTRAL INDEX KEY: 0000800458 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE DISTRIBUTION [7822] IRS NUMBER: 930780536 STATE OF INCORPORATION: OR FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15159 FILM NUMBER: 04979533 BUSINESS ADDRESS: STREET 1: ONE AIRPORT CTR STREET 2: 7700 N E AMBASSADOR PL CITY: PORTLAND STATE: OR ZIP: 97220 BUSINESS PHONE: 5032847581 MAIL ADDRESS: STREET 1: 7700 NE AMBASSADOR PL CITY: PORTLAND STATE: OR ZIP: 97220 FORMER COMPANY: FORMER CONFORMED NAME: NATIONAL VIDEO INC DATE OF NAME CHANGE: 19881004 8-K 1 rc8-k804.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 16, 2004 --------------- RENTRAK CORPORATION (Exact name of registrant as specified in charter) Oregon (State or other jurisdiction of incorporation) 0-15159 (SEC File Number) 93-0780536 (IRS Employer Identification No.) One Airport Center 7700 N.E. Ambassador Place Portland, Oregon 97220 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (503) 284-7581 Item 12. Results of Operations and Financial Condition. On August 16, 2004, Rentrak Corporation ("Rentrak") issued a press release (the "earnings release") announcing its financial results for its fiscal 2005 first quarter ended June 30, 2004. This discussion, as well as the earnings release furnished as Exhibit 99.1 to this report, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference in any filing under the Securities Act of 1933. Exhibits 99.1 Press release dated August 16, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RENTRAK CORPORATION Dated: August 16, 2004 By: /s/ Mark L. Thoenes ------------------------------- Mark L. Thoenes Senior Vice President and Chief Financial Officer EX-99 2 rc8-k804ex.txt 99.1 EXHIBIT 99.1 FOR RELEASE AT 4:05pm EDT Contacts: Paul Rosenbaum Investors Rentrak Corporation PondelWilkinson Parham Chairman & CEO Ron Parham 503-284-7581 503-924-1186 exitpoll@aol.com rparham@pondel.com RENTRAK'S FIRST QUARTER NET INCOME INCREASES TENFOLD ON 34 PERCENT REVENUE RISE PORTLAND, Ore. (August 16, 2004)--Rentrak Corp. (Nasdaq:RENT) today announced net income of $1.4 million, or $0.13 per diluted share, for the first fiscal quarter ended June 30, 2004, a tenfold increase over net income of $131,000, or $0.01 per diluted share, for the same period one year ago, as restated. Consolidated revenues for the fiscal 2005 first quarter grew 33.9 percent, to $25.3 million, compared with $18.9 million in last year's restated first quarter. Last year's first quarter revenues included $4.1 million from the company's former fulfillment subsidiary, 3PF.com, Inc., which ceased operations, July 31, 2003. First quarter revenues from the company's entertainment operations grew 71.2 percent, to $25.3 million compared with $14.8 million in last year's first fiscal quarter, as restated, primarily due to increased activity under new and existing revenue-sharing programs. In addition, a portion of the revenue growth came from the company's existing and new information management services. First quarter selling, general and administrative expenses totaled $4.4 million, a modest 2.3 percent increase compared with last year's fiscal first quarter. Rentrak Chairman and Chief Executive Officer Paul Rosenbaum commented, "We're extremely pleased with the results of our most recent quarter. Our revenue-sharing business continues to benefit from the combined DVD/VHS revenue-sharing programs we signed in fiscal 2004, providing the profitability and ultimate cash flow we need to aggressively pursue the substantial growth opportunities we see in our new business intelligence service offerings." "During the quarter, we continued to lay the foundation for future revenue and earnings growth by securing access to anonymous transactional data from additional movie theaters in the Rentrak Fiscal 2005 First Quarter Net Income Increases Tenfold on 34 Percent Revenue Rise Page 2 of 4 U.S. and abroad, more video and videogame stores, more retailers, and more cable companies. Each additional source of transactional data we obtain puts us one step closer to providing content providers, developers, marketers and advertisers a fully comprehensive total-market view of their programs' and products' performance." "In the box office and home video distribution channels, the breadth and depth of transaction data we collect and report to studios and other customers is unmatched. We aspire to achieving this same level in the retail sales and on-demand distribution channels." "On-demand television is being aggressively deployed and promoted by the cable industry and allows cable companies and advertisers to track consumers' TV viewing as measurable purchase transactions. Rentrak and the cable industry agree that, to be successful in today's digital world, the industry needs a service that can count and provide timely transaction-based reporting about consumers' purchasing behavior. Rentrak's OnDemand Essentials(TM) is the first service to deliver on this critical need." "The digital nature of on-demand television allows Rentrak to offer a superior alternative to the outdated sampling methodology that has been used during the past 60 years of television. Rentrak's core competencies position us perfectly to be the leader in providing this new capability. We've been capturing massive amounts of transactional data and making sense of it for over 15 years." "As we announced July 19th, OnDemand Essentials' newest cable partner is Insight Communications, with whom we will launch a 12-city pilot program beginning in September. OnDemand Essentials collects and aggregates on-demand viewership data and delivers in-depth analysis of viewing patterns to help studios, television networks, advertisers and cable companies, such as Insight, better understand viewer preferences for on-demand content." "Last week we announced that Music Choice, the country's largest interactive music network, had joined our on-demand pilot program, becoming the first cable network to subscribe to OnDemand Essentials. This relationship is very significant for Rentrak, not only because Music Choice represents our first revenue-generating customer for OnDemand Essentials, but also because by participating in our pilot program, Music Choice is validating our contention that to be successful, the growing on-demand market requires the ability to capture and analyze aggregated Rentrak Fiscal 2005 First Quarter Net Income Increases Tenfold on 34 Percent Revenue Rise Page 3 of 4 transactional data. OnDemand Essentials is designed to benefit Music Choice and hundreds of other networks and advertisers by providing web-based, flexible, real-time reporting on aggregated, anonymous viewing patterns of their programs. We believe OnDemand Essentials can help programmers accelerate their deployment of new customized on-demand services in partnership with cable companies." Rosenbaum concluded, "Fiscal 2005 holds great potential for Rentrak and we are intensely focused on the opportunities ahead. We're seizing the opportunity to redefine the business of viewing measurement with state-of-the-art methodologies and tools that are as sophisticated as the digital technologies used to deliver the programming." Business Outlook The company is experiencing great change and investing in the expansion of several recently launched new services. Demand for some of these new services is dependent on the media and entertainment industry's successful deployment, and consumers' adoption, of new distribution technologies and viewing options. As a result, the timing, magnitude and pace of expansion in the company's new business services are extremely difficult to forecast at this time. In addition, the company's core revenue-sharing business can be subject to changes in its existing supplier and customer base. Based on current customer agreements and titles scheduled for release under combined DVD/VHS revenue-sharing programs, the company expects fiscal second quarter revenues and net income to increase compared with the second quarter of fiscal 2004, and to ultimately produce the necessary cash flow to enable the company to continue investing in its new business intelligence services. The company is currently in discussions with a retailer that accounted for 17 percent of fiscal 2004 revenues and 32 percent of revenues in the first quarter of fiscal 2005, to replace the current purchasing agreement with the retailer that expires at the end of the second fiscal quarter, September 30, 2004. Regardless of the outcome of these negotiations, the company expects cash flow from revenue-sharing to moderate during the second half of fiscal 2005, but believes its cash flow will remain sufficient to continue funding deployment of its new services for the foreseeable future. Rentrak Fiscal 2005 First Quarter Net Income Increases Tenfold on 34 Percent Revenue Rise Page 4 of 4 Conference Call Rentrak has scheduled a conference call for 2 p.m. (PDT) August 16, 2004 to discuss the company's financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 1-800-265-0241 from the U.S. or Canada, or 617-847-8704 for international callers, passcode 58673041. This call is being webcast by CCBN and can be accessed at Rentrak's web site at www.rentrak.com where it will be archived through August 16, 2005. The webcast is also being distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.fulldisclosure.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com). About Rentrak Corporation Rentrak Corporation, based in Portland, Oregon, is the developer of the Essentials(TM) suite of web-based information management and business intelligence products used by clients in the media, entertainment, retail and manufacturing industries. Vertical market editions of Essentials(TM) applications are customizable to the needs of each licensee, allowing marketers to collect, manage, analyze and make critical business decisions based on detailed, real-time point-of-sale and supply chain data. The Essentials(TM) suite of services offers competitive advantages to executives in selected industries by providing timely and actionable insight into their own company's performance in tandem with valuable perspective against aggregated industry-wide data. For further information, please visit Rentrak's corporate web site at http://www.rentrak.com. Safe Harbor Statement When used in this discussion, the words "anticipates," "expects," "intends" and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the revenues and results of operations for the company's PPT(R) and business intelligence services and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect Rentrak's financial results include customer demand for movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers and retain existing customers,the company's success in maintaining its relationships with studios and other product suppliers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's customers continuing to comply with the terms of their agreements. Additional factors that could affect Rentrak's financial results are described in Rentrak's March 31, 2004 annual report on Form 10-K and subsequent quarterly reports, filed with the Securities and Exchange Commission. Results of operations in any past period should not be considered indicative of the results to be expected for future periods. Business outlook statements are based on current expectations. These statements are forward-looking, subject to risks and uncertainties, and actual results may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The inclusion of any statement in this release does not constitute a suggestion by the company or any other person that the events or circumstances described in such statements are material. The company does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied in this release will not be realized. RENTRAK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31, 2004 2004(1) ----------- ----------- ASSETS (UNAUDITED) CURRENT ASSETS: Cash and cash equivalents $ 8,648,030 $ 8,735,683 Accounts receivable, net of allowance for doubtful accounts of $953,689 and $839,122 20,261,232 15,389,867 Advances to program suppliers 2,988,311 4,188,222 Income tax receivable 47,214 68,384 Deferred tax asset 1,380,709 2,262,186 Other current assets 1,191,895 1,160,952 ----------- ----------- Total current assets 34,517,391 31,805,294 PROPERTY AND EQUIPMENT, net 2,546,250 2,466,668 DEFERRED TAX ASSET 1,221,074 1,099,660 OTHER ASSETS 794,304 831,617 ----------- ----------- TOTAL ASSETS $39,079,019 $36,203,239 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $16,455,868 $15,446,818 Accrued liabilities 1,020,198 889,377 Accrued compensation 595,877 598,875 Deferred revenue 267,437 237,575 ----------- ----------- Total current liabilities 18,339,380 17,172,645 ----------- ----------- LONG-TERM LIABILITIES: Lease obligations and deferred gain 202,863 234,922 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value; Authorized: 10,000,000 shares, none issued -- -- Common stock, $.001 par value; Authorized: 30,000,000 shares Issued and outstanding: 9,805,620 shares at June 30, 2004 and 9,739,537 at March 31, 2004 9,806 9,740 Capital in excess of par value 41,449,775 41,093,976 Accumulated other comprehensive income 180,879 180,879 Accumulated deficit (21,103,684) (22,488,923) ----------- ----------- Total stockholders' equity 20,536,776 18,795,672 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $39,079,019 $36,203,239 =========== ===========
(1) Derived from the Company's March 31, 2004 audited consolidated financial statements. RENTRAK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, 2004 2003 ----------- ----------- (Restated) REVENUES $25,333,002 $18,914,372 OPERATING EXPENSES: Cost of sales 18,777,061 14,459,088 Selling and administrative 4,431,179 4,330,549 ----------- ----------- 23,208,240 18,789,637 ----------- ----------- INCOME FROM OPERATIONS 2,124,762 124,735 ----------- ----------- OTHER INCOME (EXPENSE): Interest income 57,845 55,439 Interest expense (1,131) (6,049) ----------- ----------- 56,714 49,390 ----------- ----------- INCOME BEFORE TAXES 2,181,476 174,125 PROVISION FOR INCOME TAXES 796,237 43,531 ----------- ----------- NET INCOME $ 1,385,239 $ 130,594 =========== =========== NET INCOME PER SHARE: Basic $ 0.14 $ 0.01 =========== =========== Diluted $ 0.13 $ 0.01 =========== =========== RENTRAK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, 2004 ENTERTAINMENT FULFILLMENT TOTAL ------------ -------- ------------ REVENUES $ 25,333,002 $ -- $ 25,333,002 OPERATING EXPENSES: Cost of sales 18,771,028 6,033 18,777,061 Selling and administrative 4,420,591 10,588 4,431,179 ------------ ------- ------------ 23,191,619 16,621 23,208,240 ------------ ------- ------------ INCOME (LOSS) FROM OPERATIONS 2,141,383 (16,621) 2,124,762 ------------ ------- ------------ OTHER INCOME (EXPENSE): Interest income 22,794 35,051 57,845 Interest expense (1,131) -- (1,131) ------------ ------- ------------ 21,663 35,051 56,714 ------------ ------- ------------ INCOME BEFORE TAXES 2,163,046 18,430 2,181,476 PROVISION FOR INCOME TAXES 789,510 6,727 796,237 ------------ ------- ------------ NET INCOME $ 1,373,536 $ 11,703 $ 1,385,239 ============ ======== ============ NET INCOME PER SHARE: Basic $ 0.14 $ 0.00 $ 0.14 ============ ======== ============ Diluted $ 0.13 $ 0.00 $ 0.13 ============ ======== ============ RENTRAK CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended June 30, 2003 (restated) ENTERTAINMENT FULFILLMENT TOTAL ------------ ----------- ------------ REVENUES $ 14,794,689 $ 4,649,827 (1) $ 18,914,372 OPERATING COSTS AND EXPENSES: Cost of sales 10,757,485 (1) 4,231,747 14,459,088 Selling, general, and administrative 3,860,547 470,002 4,330,549 ------------ ----------- ------------ 14,618,032 4,701,749 18,789,637 ------------ ----------- ------------ INCOME (LOSS) FROM OPERATIONS 176,657 (51,922) 124,735 ------------ ----------- ------------ OTHER INCOME (EXPENSE): Interest income 31,045 24,394 55,439 Interest expense (1,653) (4,396) (6,049) ------------ ----------- ------------ 29,392 19,998 49,390 ------------ ----------- ------------ INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT) 206,049 (31,924) 174,125 INCOME TAX PROVISION (BENEFIT) 55,662 (12,131) 43,531 ------------ ----------- ------------ NET INCOME (LOSS) $ 150,387 $ (19,793) $ 130,594 ============ =========== ============ NET INCOME (LOSS) PER SHARE: Basic $ 0.01 $ -- $ 0.01 ============ =========== ============ Diluted $ 0.01 $ -- $ 0.01 ============ =========== ============
(1) - Includes Intercompany transactions of $530,144, which are eliminated in consolidated total amounts. ### -----END PRIVACY-ENHANCED MESSAGE-----