-----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, Luo7Oj+YhSn58MI8XwXzJpyw+5VKlhDTSXTWp3P6ck/9msUsi/lTpSoUKX8Bfz+B CCPk+58bS1STqqLVdh5NqQ== 0000892917-05-000190.txt : 20050809 0000892917-05-000190.hdr.sgml : 20050809 20050809164221 ACCESSION NUMBER: 0000892917-05-000190 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050809 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050809 DATE AS OF CHANGE: 20050809 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: 051010504 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-k080905.txt UNITED STATES 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 9, 2005 --------------- RENTRAK CORPORATION (Exact name of registrant as specified in charter) Oregon (State or other jurisdiction of incorporation) 0-15159 93-0780536 (Commission File Number) (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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| 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. On August 9, 2005, Rentrak Corporation ("Rentrak") issued a press release announcing its financial results for its first fiscal quarter ended June 30, 2005. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits: The following exhibit is furnished with this Form 8-K: 99.1 Press Release dated August 9, 2005, announcing financial results for fiscal quarter ended June 30, 2005. 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 9, 2005 By: /s/ Mark L. Thoenes --------------------------------------- Mark L. Thoenes Senior Vice President and Chief Financial Officer -2- EX-99 2 rc8-k080905ex.txt 99.1 PR Exhibit 99.1 FOR RELEASE AT 4:05 PM 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 REPORTS FINANCIAL RESULTS FOR FIRST QUARTER OF FISCAL YEAR 2006 IN LINE WITH PRIOR 7 FULL-YEAR GUIDANCE PORTLAND, Ore. (August 9, 2005)--Rentrak Corp. (Nasdaq:RENT) today announced financial results for its first quarter of fiscal year 2006 which were consistent with the company's previous full-year guidance. The company reported consolidated net income of $655,588, or $0.06 per diluted share, on revenue of $20.9 million. In last year's comparable quarter, the company reported consolidated net income of $1.4 million, or $0.13 per diluted share, on revenue of $25.3 million. Selling and administrative expenses in the quarter increased to $5.2 million from $4.4 million in last year's first quarter, primarily reflecting increased development costs related to the company's new information services segment, higher costs associated with the company's Sarbanes-Oxley compliance efforts and costs associated with the company's operational reorganization. The company's cash and equivalents totaled $22.1 million at June 30, 2005 compared with $22.0 million at March 31, 2005. During the first quarter of fiscal 2006, the company invested approximately $0.6 million, primarily on IT equipment and capitalized internal software development costs related to its Essentials(TM) information services. Rentrak Chairman and Chief Executive Officer Paul Rosenbaum commented, "Our first quarter results came in as expected and the company's PPT segment continued to provide the operating cash flow necessary to fund the on-going development and deployment of our new Essentials(TM) information services. The optimism with which we entered fiscal 2006 was reinforced by today's announcement of a multi-year contract with Comcast Corp., representing the first cable operator to subscribe to premium reporting and analytic capabilities of our OnDemand Essentials(TM) service and other services within our Entertainment Essentials(TM) suite. We expect this Rentrak Fiscal 2006 First Quarter Earnings Page 2 of 3 announcement to increase awareness and interest in OnDemand Essentials across the media and advertising industry. As more become aware of the new media measurement paradigm Rentrak is creating, we expect accelerated adoption of our expanding suite of services by other potential customers." First quarter revenues from the company's Pay-Per-Transaction (PPT) segment totaled $18.2 million compared with $22.7 million in last year's comparable period. This decline reflected the September 30, 2004 transition of a former major PPT customer to DRS programs with studios. This customer contributed approximately $8.2 million, or 32 percent, of last year's fiscal first quarter revenues. Nearly half of that secular revenue decline was offset by increased PPT revenues from existing customers due to new output programs with major studios and the commencement of revenue-sharing agreements with new video retailer customers. The PPT segment generated operating income of approximately $2.5 million in the first quarter. First quarter revenues from the company's Information Services segment, currently comprised of the company's Direct Revenue Sharing (DRS), Box Office Essentials(TM) and Home Video Essentials(TM) services, totaled $2.53 million compared with $2.51 million in last year's first fiscal quarter. A 12 percent increase in revenues from the Essentials services component of this segment helped to offset a 7 percent decline in DRS revenues that was due to a lower volume of rental transactions processed during the quarter. The Information Services segment generated operating income of approximately $1.1 million during the first quarter. On-going development expenses and corporate overhead from the company's corporate services group generated an operating loss of $2.7 million in the first quarter and, combined with the operating income generated by the PPT and Information Services segment, resulted in consolidated operating income totaling $877,000 during the first quarter. Rosenbaum concluded, "We continue to expect revenues of between $80-85 million in fiscal year 2006, spread fairly evenly between the four quarters. We continue to expect quarterly profitability throughout fiscal 2006 and that our PPT segment and our current offerings within the Information Services segment will remain a steady source of revenue, earnings and cash flow with which to invest in ongoing development of additional Entertainment Essentials services." Rentrak Fiscal 2006 First Quarter Earnings Page 3 of 3 Conference Call Rentrak has scheduled a conference call for 2 p.m. (PDT) August 9, 2005 to discuss the company's financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 1-866-202-3048 from the U.S. or Canada, or 617-213-8843 for international callers, passcode 51084446. 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 9, 2006. The webcast is also accessible over CCBN's Investor Distribution Network and available 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). A telephone replay of the call will be available through midnight August 19, 2005 at 888-286-8010 from the U.S. or Canada, or 617-801-6888 from outside the U.S., passcode 66877037. About Rentrak Corporation Rentrak Corporation, based in Portland, Oregon, is an information management company serving clients in the media, entertainment, retail, advertising and manufacturing industries. The company's near-term focus centers on its Entertainment Essentials(TM) suite of services that is redefining media measurement in the digital broadband era. Entertainment Essentials provides customers with near-real-time, actionable insight into performance of content distributed over a wide variety of modern media technologies. Available by license or subscription, each ASP-based Entertainment Essentials application allows executives to analyze detailed industry-wide and title-specific data to make decisions that enhance the bottom line and provide competitive advantage. 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 information services segments 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, 2005 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. # # # (Financial Tables Follow) RENTRAK CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31, 2005 2005 (1) ----------- ----------- (Unaudited) ASSETS Current Assets: Cash and cash equivalents $22,132,919 $21,983,133 Accounts receivable, net of allowances for doubtful accounts of $574,904 and $654,039 13,122,502 14,427,356 Advances to program suppliers, net of program supplier reserves of $3,116,150 and $3,245,877 661,328 1,184,839 Income tax receivable 573,656 580,010 Deferred income tax assets 579,783 944,038 Notes receivable - related party -- 753,301 Other current assets 1,174,685 1,028,129 ----------- ----------- Total Current Assets 38,244,873 40,900,806 Property and Equipment, net 3,483,058 3,216,025 Deferred Income Tax Assets 114,998 114,998 Other Assets 779,752 851,340 ----------- ----------- Total Assets $42,622,681 $45,083,169 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 9,405,591 $12,469,758 Accrued liabilities 734,775 711,385 Accrued compensation 1,215,948 1,538,794 Deferred revenue 622,780 378,719 ----------- ----------- Total Current Liabilities 11,979,094 15,098,656 Long-Term Obligations: Lease obligations and deferred gain 20,632 51,581 Commitments and Contingencies -- -- Stockholders' Equity: Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued -- -- Common stock, $0.001 par value; 30,000,000 shares authorized; shares issued and outstanding: 10,550,395 and 10,544,913 10,550 10,545 Capital in excess of par value 47,022,412 46,987,982 Accumulated other comprehensive income 180,879 180,879 Accumulated deficit (16,590,886) (17,246,474) ----------- ----------- Total Stockholders' Equity 30,622,955 29,932,932 ----------- ----------- Total Liabilities and Stockholders' Equity $42,622,681 $45,083,169 =========== ===========
(1) Derived from our March 31, 2005 audited consolidated financial statements. RENTRAK CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (UNAUDITED) For the Three Months Ended June 30, ---------------------------------- 2005 2004 ----------- ----------- Revenue $20,882,213 $25,333,002 Operating expenses: Cost of sales 14,832,319 18,777,061 Selling and administrative 5,172,499 4,431,179 ----------- ----------- 20,004,818 23,208,240 ----------- ----------- Income from operations 877,395 2,124,762 Other income (expense): Interest income 156,180 57,845 Interest expense (792) (1,131) ----------- ----------- 155,388 56,714 ----------- ----------- Income before income taxes 1,032,783 2,181,476 Provision for income taxes 377,195 796,237 ----------- ----------- Net income $ 655,588 $ 1,385,239 =========== ========== Basic net income per share $ 0.06 $ 0.14 =========== =========== Diluted net income per share $ 0.06 $ 0.13 =========== =========== Shares used in per share calculations: Basic 10,549,251 9,797,268 =========== =========== Diluted 11,095,332 10,461,101 =========== =========== -----END PRIVACY-ENHANCED MESSAGE-----