x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Oregon | 93-0780536 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
7700 NE Ambassador Place, Portland, Oregon | 97220 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | x | ||
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Common stock $0.001 par value | 11,844,484 | |
(Class) | (Outstanding at November 1, 2012) |
Page | ||
PART I - FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1A. | ||
Item 6. | ||
ITEM 1. | FINANCIAL STATEMENTS |
September 30, 2012 | March 31, 2012 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 3,616 | $ | 5,526 | |||
Marketable securities | 21,026 | 22,227 | |||||
Accounts and notes receivable, net of allowances for doubtful accounts of $655 and $649 | 12,268 | 14,260 | |||||
Deferred tax assets, net | 53 | 48 | |||||
Other current assets | 984 | 985 | |||||
Total Current Assets | 37,947 | 43,046 | |||||
Property and equipment, net of accumulated depreciation of $17,844 and $17,032 | 11,961 | 10,846 | |||||
Goodwill | 5,030 | 5,101 | |||||
Other intangible assets, net of accumulated amortization of $1,983 and $1,579 | 12,805 | 13,165 | |||||
Other assets | 730 | 723 | |||||
Total Assets | $ | 68,473 | $ | 72,881 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities: | |||||||
Accounts payable | $ | 5,275 | $ | 5,291 | |||
Accrued liabilities | 4,167 | 3,093 | |||||
Accrued compensation | 4,374 | 8,781 | |||||
Deferred revenue and other credits | 2,095 | 2,037 | |||||
Total Current Liabilities | 15,911 | 19,202 | |||||
Deferred rent, long-term portion | 1,714 | 1,819 | |||||
Taxes payable, long-term | 665 | 731 | |||||
Deferred tax liability, long-term | 76 | 79 | |||||
Note payable and accrued interest | 537 | 525 | |||||
Total Liabilities | 18,903 | 22,356 | |||||
Commitments and Contingencies | — | — | |||||
Stockholders’ Equity: | |||||||
Preferred stock, $0.001 par value; 10,000 shares authorized; none issued | — | — | |||||
Common stock, $0.001 par value; 30,000 shares authorized; shares issued and outstanding: 11,844 and 11,078 | 11 | 11 | |||||
Capital in excess of par value | 72,073 | 55,125 | |||||
Accumulated other comprehensive income | 193 | 341 | |||||
Accumulated deficit | (23,727 | ) | (4,952 | ) | |||
Total Stockholders’ Equity attributable to Rentrak Corporation | 48,550 | 50,525 | |||||
Noncontrolling interest | 1,020 | — | |||||
Total Stockholders’ Equity | 49,570 | $ | 50,525 | ||||
Total Liabilities and Stockholders’ Equity | $ | 68,473 | $ | 72,881 |
For the Three Months Ended September 30, | For the Six Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | $ | 22,491 | $ | 21,852 | $ | 45,714 | $ | 44,260 | |||||||
Cost of sales | 11,785 | 11,491 | 23,496 | 23,639 | |||||||||||
Gross margin | 10,706 | 10,361 | 22,218 | 20,621 | |||||||||||
Operating expenses: | |||||||||||||||
Selling and administrative | 29,124 | 10,744 | 41,280 | 20,758 | |||||||||||
Loss from operations | (18,418 | ) | (383 | ) | (19,062 | ) | (137 | ) | |||||||
Other income: | |||||||||||||||
Interest income, net | 270 | 105 | 349 | 215 | |||||||||||
Income (loss) before income taxes | (18,148 | ) | (278 | ) | (18,713 | ) | 78 | ||||||||
Provision (benefit) for income taxes | 9 | (17 | ) | 62 | (60 | ) | |||||||||
Net income (loss) | $ | (18,157 | ) | $ | (261 | ) | $ | (18,775 | ) | $ | 138 | ||||
Basic net income (loss) per share | $ | (1.56 | ) | $ | (0.02 | ) | $ | (1.64 | ) | $ | 0.01 | ||||
Diluted net income (loss) per share | $ | (1.56 | ) | $ | (0.02 | ) | $ | (1.64 | ) | $ | 0.01 | ||||
Shares used in per share calculations: | |||||||||||||||
Basic | 11,669 | 11,149 | 11,451 | 11,257 | |||||||||||
Diluted | 11,669 | 11,149 | 11,451 | 11,423 |
Rentrak Corporation and Subsidiaries Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (In thousands, except footnote reference) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net income (loss) | $ | (18,157 | ) | $ | (261 | ) | $ | (18,775 | ) | $ | 138 | |||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustments | 175 | (380 | ) | (99 | ) | (282 | ) | |||||||||
Unrealized holding gains on available for sale securities (1) | 22 | 20 | 22 | 85 | ||||||||||||
Recognition of previously unrealized gains on available for sale securities included in net income (loss)(2) | (85 | ) | (4 | ) | (72 | ) | (7 | ) | ||||||||
Other comprehensive income (loss) | 112 | (364 | ) | (149 | ) | (204 | ) | |||||||||
Comprehensive loss | $ | (18,045 | ) | $ | (625 | ) | $ | (18,924 | ) | $ | (66 | ) |
Rentrak Corporation and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||
For the Six Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (18,775 | ) | $ | 138 | ||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | |||||||
Depreciation and amortization | 2,349 | 2,136 | |||||
Stock-based compensation | 16,253 | (209 | ) | ||||
Deferred income taxes | (2 | ) | 243 | ||||
(Gain) loss on disposition of assets | (26 | ) | 1 | ||||
Realized gain on marketable securities | (193 | ) | (12 | ) | |||
Interest on note payable | 12 | 12 | |||||
Adjustment to allowance for doubtful accounts | (6 | ) | (35 | ) | |||
Decrease in: | |||||||
Accounts and notes receivable | 1,992 | 3,038 | |||||
Taxes receivable and prepaid taxes | — | 699 | |||||
Other assets | 12 | 286 | |||||
Increase (decrease) in: | |||||||
Accounts payable | (16 | ) | (2,720 | ) | |||
Taxes payable | (64 | ) | (253 | ) | |||
Accrued liabilities and compensation | (3,335 | ) | (234 | ) | |||
Deferred revenue | 58 | 219 | |||||
Deferred rent | (105 | ) | 108 | ||||
Net cash provided by (used in) operating activities | (1,846 | ) | 3,417 | ||||
Cash flows from investing activities: | |||||||
Purchase of marketable securities | (20,987 | ) | (3,000 | ) | |||
Sale of marketable securities | 22,293 | 4,000 | |||||
Proceeds from the sale of assets | 47 | — | |||||
Purchase of intangibles | (101 | ) | — | ||||
Purchase of property and equipment | (2,876 | ) | (2,506 | ) | |||
Net cash used in investing activities | (1,624 | ) | (1,506 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from note payable | — | 500 | |||||
Contributions from noncontrolling interest | 1,020 | — | |||||
Issuance of common stock | 551 | 39 | |||||
Repurchase of common stock | — | (4,341 | ) | ||||
Net cash provided by (used in) financing activities | 1,571 | (3,802 | ) | ||||
Effect of foreign exchange translation on cash | (11 | ) | (405 | ) | |||
Decrease in cash and cash equivalents | (1,910 | ) | (2,296 | ) | |||
Cash and cash equivalents: | |||||||
Beginning of period | 5,526 | 3,821 | |||||
End of period | $ | 3,616 | $ | 1,525 | |||
Supplemental non-cash information: | |||||||
Capitalized stock-based compensation | $ | 198 | $ | 147 | |||
Common stock used to pay for option exercises | 63 | 306 |
Note 1. | Basis of Presentation |
Note 2. | Net Income (Loss) Per Share |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Basic EPS: | |||||||||||
Weighted average number of shares of common stock outstanding and vested deferred stock units (“DSUs”) (1) | 11,669 | 11,149 | 11,451 | 11,257 | |||||||
Diluted EPS: | |||||||||||
Effect of dilutive stock options and unvested DSUs | — | — | — | 166 | |||||||
11,669 | 11,149 | 11,451 | 11,423 | ||||||||
Total outstanding options not included in diluted EPS as they would be antidilutive | 2,885 | 1,715 | 2,885 | 918 | |||||||
Performance-based grants not included in diluted EPS | 270 | 326 | 270 | 318 |
(1) | Includes 139,436 and 82,164 vested cumulative DSUs, respectively, for the three months ended September 30, 2012 and 2011 and 132,442 and 76,576 vested cumulative DSUs, respectively, for the six months ended September 30, 2012 and 2011 that will not be issued until the directors holding the DSUs retire from our Board of Directors. |
Note 3. | Business Segments and Enterprise-Wide Disclosures |
AMI | HE | Other | Total | ||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||
Sales to external customers | $ | 13,230 | $ | 9,261 | $ | — | $ | 22,491 | |||||||
Gross margin | 7,764 | 2,942 | — | 10,706 | |||||||||||
Income (loss) from operations | (15,691 | ) | 1,694 | (4,421 | ) | (18,418 | ) | ||||||||
Three Months Ended September 30, 2011 | |||||||||||||||
Sales to external customers | $ | 9,786 | $ | 12,066 | $ | — | $ | 21,852 | |||||||
Gross margin | 6,144 | 4,217 | — | 10,361 | |||||||||||
Income (loss) from operations | 886 | 2,561 | (3,830 | ) | (383 | ) | |||||||||
Six Months ended September 30, 2012 | |||||||||||||||
Sales to external customers | $ | 25,841 | $ | 19,873 | $ | — | $ | 45,714 | |||||||
Gross margin | 16,081 | 6,137 | — | 22,218 | |||||||||||
Income (loss) from operations | (13,749 | ) | 3,493 | (8,806 | ) | (19,062 | ) | ||||||||
Six Months ended September 30, 2011 | |||||||||||||||
Sales to external customers | $ | 19,382 | $ | 24,878 | $ | — | $ | 44,260 | |||||||
Gross margin | 12,306 | 8,315 | — | 20,621 | |||||||||||
Income (loss) from operations | 2,673 | 4,910 | (7,720 | ) | (137 | ) |
Note 4. | Stock-Based Compensation |
Three Months Ended | Six Months Ended | |||||||
September 30, 2012 | September 30, 2012 | |||||||
Option grants: | ||||||||
Shares granted from 2011 Incentive Plan | 16,674 | 907,174 | ||||||
Fair market value on date of grant - high | $ | 17.64 | $ | 20.18 | ||||
Fair market value on date of grant - low | $ | 16.97 | $ | 16.97 | ||||
Expiration period, in years | 10 | 10 | ||||||
Vesting period, in years | 5 | 5 | ||||||
Compensation information related to options granted in period(1) (in thousands): | ||||||||
Total valuation, recognized over vesting period | $ | 112 | $ | 8,410 | ||||
Total expected expense to be recognized in Fiscal 2013 | $ | 65 | $ | 1,696 | ||||
Expense recognized as a component of selling and administrative expense | $ | 9 | $ | 815 | ||||
Expense capitalized in property and equipment, net (2) | $ | — | $ | 116 | ||||
DSUs: | ||||||||
Units granted from 2011 Incentive Plan to non-executive directors | 34,014 | 34,014 | ||||||
Vesting period, in months | 11 | 11 | ||||||
Compensation information related to DSUs granted in period (in thousands): | ||||||||
Total fair market value, recognized over vesting period | $ | 600 | $ | 600 | ||||
Total expected expense to be recognized in Fiscal 2013 | $ | 382 | $ | 382 | ||||
Expense recognized as a component of selling and administrative expense | $ | 55 | $ | 55 |
Note 5. | Fair Value Disclosures |
• | Level 1 – quoted prices in active markets for identical securities; |
• | Level 2 – quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations whose significant inputs are observable; and |
• | Level 3 – significant unobservable inputs, including our own assumptions in determining fair value. |
September 30, 2012 | March 31, 2012 | ||||||||||
Fair Value | Input Level | Fair Value | Input Level | ||||||||
Available-for-sale marketable securities | |||||||||||
Municipal tax exempt bond funds | $ | — | $ | 22,227 | Level 1 | ||||||
Adjustable rate government funds | $ | 21,026 | Level 1 | $ | — |
September 30, 2012 | March 31, 2012 | ||||||
Available-for-sale marketable securities | |||||||
Amortized cost | $ | 20,987 | $ | 22,101 | |||
Gross unrecognized holding gains | 39 | 126 | |||||
Fair value | $ | 21,026 | $ | 22,227 |
Six Months Ended September 30, 2012 | |||||||||||
AMI | HE | Total | |||||||||
Beginning balance | $ | 4,570 | $ | 531 | $ | 5,101 | |||||
Currency translation | (71 | ) | — | (71 | ) | ||||||
Ending balance | $ | 4,499 | $ | 531 | $ | 5,030 |
Year Ended March 31, 2012 | |||||||||||
AMI | HE | Total | |||||||||
Beginning balance | $ | 4,691 | $ | 531 | $ | 5,222 | |||||
Currency translation | (121 | ) | — | (121 | ) | ||||||
Ending balance | $ | 4,570 | $ | 531 | $ | 5,101 |
Amortization Period | September 30, 2012 | March 31, 2012 | |||||||
Local relationships | 7 to 10 years | $ | 7,110 | $ | 7,167 | ||||
Accumulated amortization | (1,867 | ) | (1,475 | ) | |||||
5,243 | 5,692 | ||||||||
Tradenames | 1 to 3 years | 50 | 50 | ||||||
Accumulated amortization | (45 | ) | (36 | ) | |||||
5 | 14 | ||||||||
Existing technology | 6 months | 66 | 66 | ||||||
Accumulated amortization | (66 | ) | (66 | ) | |||||
— | — | ||||||||
Patents | 20 years | 162 | 61 | ||||||
Accumulated amortization | (5 | ) | (2 | ) | |||||
157 | 59 | ||||||||
Global relationships | Indefinite | 7,400 | 7,400 | ||||||
Total | $ | 12,805 | $ | 13,165 |
Six Months Ended September 30, | |||||||
2012 | 2011 | ||||||
Local relationships | $ | 400 | $ | 421 | |||
Tradenames | 9 | 9 | |||||
Existing Technology | — | 33 | |||||
Patents | 3 | 1 | |||||
Currency translation | (8 | ) | (29 | ) | |||
$ | 404 | $ | 435 |
Fiscal | Local Relationships | Tradenames | Patents | ||||||||
Remainder of Fiscal 2013 | $ | 434 | $ | 5 | $ | 4 | |||||
2014 | 867 | — | 8 | ||||||||
2015 | 867 | — | 8 | ||||||||
2016 | 868 | — | 8 | ||||||||
2017 | 846 | — | 8 | ||||||||
Thereafter | 1,361 | — | 121 | ||||||||
$ | 5,243 | $ | 5 | $ | 157 |
Note 7. | Amendment to DISH Network, L.L.C. ("DISH") Agreement |
Note 8. | Line of Credit |
Note 9. | Income Taxes |
Note 10. | New Accounting Guidance |
Note 11. | Subsequent Events |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | our future results of operations and financial condition and future revenue and expenses, including declines in Home Entertainment (“HE”) Division revenue and increases in our Entertainment Essentials™ revenue as a result of further investments, the addition of a new retailer and development and expansion of new and existing services, both domestically and internationally; |
• | the future growth prospects for our business as a whole and individual business lines in particular, including adding new clients, adjusting rates and increasing business activity, and using funds in our foreign bank accounts to fund our international expansion and growth; |
• | increases in our costs over the next twelve months; |
• | continued contraction in the major “brick and mortar” retailers' share of the home video rental market; |
• | continued increases in end consumers' usage of non "brick and mortar" options for obtaining entertainment content, such as kiosks; |
• | the impact on our revenue of Warner Bros.' modification to its distribution strategy of providing "brick and mortar" retailers with new release content on the initial street date; |
• | future acquisitions or investments; |
• | our plans or requirements to hold or sell our marketable securities; |
• | our relationships with our customers and suppliers; |
• | our ability to attract new customers; |
• | market response to our products and services; |
• | the impact of changes in the timing of movie releases and the relation between the timing of the release of movies to home video to their theatrical release; |
• | increased spending on property and equipment in Fiscal 2013 for the capitalization of internally developed software, computer equipment, renovations to our corporate offices and other purposes; |
• | expected amortization of our deferred rent; and |
• | the sufficiency of our available sources of liquidity to fund our current operations, the continued current development of our business information services and other cash requirements through at least September 30, 2013. |
• | successfully develop, expand and/or market new services to new and existing customers, including our media measurement services, in order to increase revenue and/or create new revenue streams; |
• | timely acquire and integrate into our systems various third party databases; |
• | compete with companies that may have financial, marketing, sales, technical or other advantages over us; |
• | successfully deal with our data providers, who are much larger than us and have significant financial leverage over us; |
• | successfully manage the impact on our business of the economic environment generally, both domestic and international, and in the markets in which we operate, including the financial condition of any of our suppliers or customers or the impact of the economic environment on our suppliers’ or customers’ ability to continue their services with us and/or fulfill their payment obligations to us; |
• | effectively respond to rapidly changing technology and consumer demand for entertainment content in various media formats; |
• | retain and grow our base of retailers ("Participating Retailers"); |
• | continue to obtain home entertainment content products (DVDs, Blu-ray Discs, etc.) (collectively “Units”) leased/licensed to home video specialty stores and other retailers from content providers, generally motion picture studios and other licensors or owners of the rights to certain video programming content (“Program Suppliers”); |
• | retain our relationships with our significant Program Suppliers; |
• | manage and/or offset any cost increases; |
• | add new clients or adjust rates for our services; |
• | adapt to government restrictions; |
• | leverage our investments in our systems and generate revenue and earnings streams that contribute to our overall success; |
• | enhance and expand the services we provide in our foreign locations and enter into additional foreign locations; and |
• | successfully integrate business acquisitions or other investments in other companies, products or technologies into our operations and use those acquisitions or investments to enhance our technical capabilities, expand our operations into new markets or otherwise grow our business. |
• | Box Office Essentials™, |
• | OnDemand Everywhere, which includes OnDemand Essentials™ and related products, and |
• | TV Essentials™, which includes StationView Essentials. |
• | PPT revenues include fees generated when Participating Retailers rent Units or sell previously-viewed rental Units to consumers and upfront fees generated when Units are distributed to Participating Retailers. Additionally, certain arrangements include guaranteed minimum revenue from our customers, which are recognized on the street (release) date, provided all other revenue recognition criteria are met; and |
• | DRS fees, which are generated from data tracking and reporting services provided to Program Suppliers. |
AMI | HE | Other (1) | Total | ||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||
Sales to external customers | $ | 13,230 | $ | 9,261 | $ | — | $ | 22,491 | |||||||
Gross margin | 7,764 | 2,942 | — | 10,706 | |||||||||||
Income (loss) from operations | (15,691 | ) | 1,694 | (4,421 | ) | (18,418 | ) | ||||||||
Three Months Ended September 30, 2011 | |||||||||||||||
Sales to external customers | $ | 9,786 | $ | 12,066 | $ | — | $ | 21,852 | |||||||
Gross margin | 6,144 | 4,217 | — | 10,361 | |||||||||||
Income (loss) from operations | 886 | 2,561 | (3,830 | ) | (383 | ) | |||||||||
Six Months Ended September 30, 2012 | |||||||||||||||
Sales to external customers | $ | 25,841 | $ | 19,873 | $ | — | $ | 45,714 | |||||||
Gross margin | 16,081 | 6,137 | — | 22,218 | |||||||||||
Income (loss) from operations | (13,749 | ) | 3,493 | (8,806 | ) | (19,062 | ) | ||||||||
Six Months Ended September 30, 2011 | |||||||||||||||
Sales to external customers | $ | 19,382 | $ | 24,878 | $ | — | $ | 44,260 | |||||||
Gross margin | 12,306 | 8,315 | — | 20,621 | |||||||||||
Income (loss) from operations | 2,673 | 4,910 | (7,720 | ) | (137 | ) |
(1) | Includes corporate and other expenses that are not allocated to a specific segment. |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
Box Office Essentials™ | $ | 5,735 | $ | 5,189 | $ | 546 | 10.5% | ||||||
OnDemand Everywhere | 3,349 | 2,622 | 727 | 27.7% | |||||||||
TV Essentials™ | 4,146 | 1,975 | 2,171 | 109.9% | |||||||||
$ | 13,230 | $ | 9,786 | $ | 3,444 | 35.2% | |||||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
Box Office Essentials™ | $ | 11,704 | $ | 10,216 | $ | 1,488 | 14.6% | ||||||
OnDemand Everywhere | 6,252 | 5,452 | 800 | 14.7% | |||||||||
TV Essentials™ | 7,885 | 3,714 | 4,171 | 112.3% | |||||||||
$ | 25,841 | $ | 19,382 | $ | 6,459 | 33.3% |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
PPT | $ | 8,609 | $ | 10,450 | $ | (1,841 | ) | (17.6)% | |||||
DRS | 652 | 1,616 | (964 | ) | (59.7)% | ||||||||
$ | 9,261 | $ | 12,066 | $ | (2,805 | ) | (23.2)% | ||||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
PPT | $ | 18,385 | $ | 21,823 | $ | (3,438 | ) | (15.8)% | |||||
DRS | 1,488 | 3,055 | (1,567 | ) | (51.3)% | ||||||||
$ | 19,873 | $ | 24,878 | $ | (5,005 | ) | (20.1)% |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
Costs related to: | |||||||||||||
Amortization of internally developed software | $ | 647 | $ | 525 | $ | 122 | 23.2% | ||||||
Call center operation | 1,266 | 1,230 | 36 | 2.9% | |||||||||
Obtaining, cleansing and processing data | 3,553 | 1,887 | 1,666 | 88.3% | |||||||||
$ | 5,466 | $ | 3,642 | $ | 1,824 | 50.1% | |||||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
Costs related to: | |||||||||||||
Amortization of internally developed software | $ | 1,247 | $ | 1,044 | $ | 203 | 19.4% | ||||||
Call center operation | 2,510 | 2,421 | 89 | 3.7% | |||||||||
Obtaining, cleansing and processing data | 6,003 | 3,611 | 2,392 | 66.2% | |||||||||
$ | 9,760 | $ | 7,076 | $ | 2,684 | 37.9% |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
Costs related to: | |||||||||||||
Transaction fees | $ | 4,330 | $ | 5,327 | $ | (997 | ) | (18.7)% | |||||
Sell-through fees | 1,229 | 1,519 | (290 | ) | (19.1)% | ||||||||
Other | 760 | 1,003 | (243 | ) | (24.2)% | ||||||||
$ | 6,319 | $ | 7,849 | $ | (1,530 | ) | (19.5)% | ||||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
2012 | 2011 | ||||||||||||
Costs related to: | |||||||||||||
Transaction fees | $ | 9,460 | $ | 11,338 | $ | (1,878 | ) | (16.6)% | |||||
Sell-through fees | 2,532 | 3,030 | (498 | ) | (16.4)% | ||||||||
Other | 1,744 | 2,195 | (451 | ) | (20.5)% | ||||||||
$ | 13,736 | $ | 16,563 | $ | (2,827 | ) | (17.1)% |
Three Months Ended September 30, | Six Months Ended September 30, | ||||||
2012 | 2011 | 2012 | 2011 | ||||
AMI Division | 58.7% | 62.8% | 62.2% | 63.5% | |||
HE Division | 31.8% | 34.9% | 30.9% | 33.4% |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
Selling and administrative | 2012 | 2011 | |||||||||||
AMI | $ | 23,455 | $ | 5,258 | $ | 18,197 | 346.1% | ||||||
HE | 1,248 | 1,656 | (408 | ) | (24.6)% | ||||||||
Corporate | 4,421 | 3,830 | 591 | 15.4% | |||||||||
$ | 29,124 | $ | 10,744 | $ | 18,380 | 171.1% | |||||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
Selling and administrative | 2012 | 2011 | |||||||||||
AMI | $ | 29,830 | $ | 9,633 | $ | 20,197 | 209.7% | ||||||
HE | 2,644 | 3,405 | (761 | ) | (22.3)% | ||||||||
Corporate | 8,806 | 7,720 | 1,086 | 14.1% | |||||||||
$ | 41,280 | $ | 20,758 | $ | 20,522 | 98.9% |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
Income (loss) from operations | 2012 | 2011 | |||||||||||
AMI | $ | (15,691 | ) | $ | 886 | $ | (16,577 | ) | (1,871.0)% | ||||
HE | 1,694 | 2,561 | (867 | ) | (33.9)% | ||||||||
Corporate | (4,421 | ) | (3,830 | ) | (591 | ) | 15.4% | ||||||
$ | (18,418 | ) | $ | (383 | ) | $ | (18,035 | ) | 4,708.9% | ||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
Income (loss) from operations | 2012 | 2011 | |||||||||||
AMI | $ | (13,749 | ) | $ | 2,673 | $ | (16,422 | ) | (614.4)% | ||||
HE | 3,493 | 4,910 | (1,417 | ) | (28.9)% | ||||||||
Corporate | (8,806 | ) | (7,720 | ) | (1,086 | ) | 14.1% | ||||||
$ | (19,062 | ) | $ | (137 | ) | $ | (18,925 | ) | 13,813.9% |
Three Months Ended September 30, | Dollar Change | % Change | |||||||||||
Income (loss) from operations | 2012 | 2011 | |||||||||||
AMI as reported | $ | (15,691 | ) | $ | 886 | $ | (16,577 | ) | (1,871.0)% | ||||
Less: DISH stock-based compensation | 16,485 | (539 | ) | 17,024 | (3,158.4)% | ||||||||
AMI before DISH stock-based compensation | $ | 794 | $ | 347 | $ | 447 | 128.8% | ||||||
Six Months Ended September 30, | Dollar Change | % Change | |||||||||||
Income (loss) from operations | 2012 | 2011 | |||||||||||
AMI as reported | $ | (13,749 | ) | $ | 2,673 | $ | (16,422 | ) | (614.4)% | ||||
Less: DISH stock-based compensation | 15,864 | (2,453 | ) | 18,317 | (746.7)% | ||||||||
AMI before DISH stock-based compensation | $ | 2,115 | $ | 220 | $ | 1,895 | 861.4% |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK. |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1A. | RISK FACTORS |
ITEM 6. | EXHIBITS |
10.1 | Fourth Amendment to Credit Agreement, dated August 21, 2012 between Rentrak Corporation and Wells Fargo Bank, National Association | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a). | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a). | |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350. | |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Label Linkbase Document |
Date: | November 7, 2012 | RENTRAK CORPORATION | |||
By: | /s/ David I. Chemerow | ||||
David I. Chemerow Chief Operating Officer and Chief Financial Officer |
RENTRAK CORPORATION | WELLS FARGO BANK, | |||
NATIONAL ASSOCIATION | ||||
By: | /s/ David I Chemerow | By: | /s/ Victoria K. Dunn | |
David I. Chemerow, CFO, COO, and Secretary | Victoria K. Dunn, Relationship Manager |
1. | I have reviewed this quarterly report on Form 10-Q of Rentrak Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ William P. Livek | ||
William P. Livek | |||
Director and Chief Executive Officer | |||
Rentrak Corporation |
1. | I have reviewed this quarterly report on Form 10-Q of Rentrak Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By: | /s/ David I. Chemerow | ||
David I. Chemerow | |||
Chief Operating Officer and Chief Financial Officer | |||
Rentrak Corporation |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ William P. Livek | ||
William P. Livek | |||
Director and Chief Executive Officer | |||
Rentrak Corporation | |||
November 7, 2012 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
By: | /s/ David I. Chemerow | ||
David I. Chemerow | |||
Chief Operating Officer and Chief Financial Officer | |||
Rentrak Corporation | |||
November 7, 2012 |
Goodwill And Other Intangible Assets Expected amortization expense (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Mar. 31, 2012
|
---|---|---|
Local Relationships [Member]
|
||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remainder of Fiscal 2013 | $ 434 | |
2014 | 867 | |
2015 | 867 | |
2016 | 868 | |
2017 | 846 | |
Therafter | 1,361 | |
Finite-lived intangible assets, net | 5,243 | 5,692 |
Trade Names [Member]
|
||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remainder of Fiscal 2013 | 5 | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
Therafter | 0 | |
Finite-lived intangible assets, net | 5 | 14 |
Patents [Member]
|
||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Remainder of Fiscal 2013 | 4 | |
2014 | 8 | |
2015 | 8 | |
2016 | 8 | |
2017 | 8 | |
Therafter | 121 | |
Finite-lived intangible assets, net | $ 157 | $ 59 |
&J%-].U/R-S/GZ.$1M1RW0"TQ:V
MY=B4AZ(='2>HQ<41&%'_6C@51-=Y ,'-#N<75
M5.Q,[7H9,760=$.W*(,U;.`[OD6FS2FL5ZEFK5$KQ'\Y4V=T>8KOV8;%7$9\
M!KL8HM8%X0W#;I2*VM##_2WO%VR:O=^GGDY4G4>Y>KYE6II9KX\-:I-%];SY
M_:,PB:JU?1WA/;&ANU0HH@&C+@B8I:N^XFJPE-?K 7'> _:6#;%*9#?F7"3_
M:7%KOF/C@>TCCV!#;HS#!^''0>"69WBMU7M2K:WO]+EZ;1*FXM%FLU3<``-6C`@`5`!P` ;:JNG@8
M(*,8>+W6VC-<*4,H"M9#V"&($@2J-7^,4O17J[K86EZMB^YU0^C'TX3Q-:!3
MU<7Q%6!\P= 8W7.09:SP!WK?T[R#.P]0^T#H+&0]"X>`*8DQ.+MH9N
M.J#ZQQP4,TD;1Z4@GT^,CI2X.*K/=+E.RI(5XA+.)>;7V>'UBX/I.4?P`IY/)$NA$/,8\934*<,+%%
M*HXH?XP4'@I,+W#A`;@$%CY3_\>$)"116$D:5G`E&`4ABQ_#Q9AM>"E:.(-8
MA1YS69!$PDL"%C!?B=76KXA"EX6/*&`M.SEN8@7#%G.'%Y@-S0Q\H%5?_9
M\A6/`]>O\15GOFV(M5+$HQ%S/1+%+(Q01*CT*`T2+K7A-"RB@`6"$D8526(I21#0;;(IHEC4Y>*L
M6)PI_!0>QZZ?J/]P+W)=0LCVD&80^GZ-)A%K?';KXLIQ@O'T$A5_AU)R%2BQ
MT,
J\7Q@I@AJ(-D)H_[%H=DV&XPG8`!GVNP?<#@"S+&:S1<%0+
MFMF`BH&*]<,3'+QB09(-,0B>*H@%Y!D@R2;`=?JF!S2
M-88I]!C?\[H#%<@`0`8`DFR@8J!BMJ@8)-D@R=8,OX^[MAB=:-1EYPYWT$5W
M1)BY@54OH&.+C$!2PB(;-32-ZL(;!+T"O;IVO4(&!RM>B3Z=U#L'(B^;VD9:
M'Z^
I@\[%**D6.6-1U753A-YUP8[=$V7MJZ;"K!PQ3QN3S43"8?@4#
MWK7;[='($BD^D!'82-F(%3&<*#U>Q7%>EEF\H0@.8GJN"
MCFOH6=4TS#WU6LOU1,`H,LU4'68%ID-TS:!^W>Y-=YNEK2QCH5+*80>P-?IA
M*45,107)"G23EXSSZISX(%";?3<)5?1]Q]-ZU0P&.R7?XHDSL&-BAA$8OJCQ
MXG-25;4Y"(N9+5COENLG.3:QJ0>[)!U@33@\1.D/VX0-B&TV8R5!"-]/$>\D
M7#JEKJT%Q%!Y.6?JVZ#!Q)!`"1._X8.&>3$7RID
PB+I#?K#W\]R(KB@P3[V\G5TO5_AL/1[4\FI
LGA*K7:WG5*6"*CZ0T0^IR`9))/TT.5_8
MB9-+E=%R7O&COCAOAUOBV_-$QS]D@VCRG&]/>1Q+O\%_3X7D@T6(I'LP>&+)
M)#%%WH*I'1.Y#`CIP^+BYBF)P-"UNFQ!H=M+Z.Z3'RV('*J^O:20'D$*FYRL
MWB)6F8U7=$IHN6,#M6'[VA#E<&LY)"B'*(<=D$/4ARB'79##-^O#[9:,,/C;
MA[#WYV.>C=.(^Z&R_.:G7B^.^_U.+23W$MGE7'6$?]7_[48U<&)JP)*IWEH66E=F$K4`:@'4`EN+0*LEQ[HRGZ@+4!>@
M+MABT)3*:GN]";HRE?NJ`3QB6L'87_.L**1AF#\FAZFFVR8;CUI_T)`-73VX
MD[0K
3>`4ZS_L]S6QN!IR)H
MP&)#L#"QX1II6N,A4%RP_6IM5+N4K:3D3'W4]^2,C&32A\J=^#-N1.6['?EN
M1[.)5M=F_$7MCGBP;G.>K?=)VNWV0P=/H,^O;CSQL:D^(FO&OS??-F2ZR^*J
MZ\-6!UCY7CX-V'R)T&YTV-FI)CKCAF,3SKICU9895+[WDT?FEI#Y2Y*UKZ=0
MB9M!I:^?WGXGJ-WDX!R$7\Y#.<%K,9A\QFCR^1ZP>XB,W3G=VOC:L]^-6GQS
MG]6E^!1CWYUL*T6*7H%Y!>85V`84F)!>@36AP(Y]9[Y>DA;R08#=U?,'QI_&
M=OCMWT8^?*H:5.0KLN>PM^QY@?,"]YC`,;FA/2+'*G!KY7"]7^@=:L^X76'<
M$3:OXZ>$^?YU7KB\<&U$N$306!G!P0O7L8>@UFJ1OV,^WF;3SKA5#%JTU6AJ
MV6OF`^ZJR!M+;^Z*DMBT!>/%P8O#$8F#KY)[I7S8#K%QYQ209]QK!_0/QP7]
MCFTMS'_D/3*]X'K!;5)PJ?""NQ7!]9LO?3V/Y\\.*_V]T]V-F5R[HDM]U,E+
MP_I1^\9Z7A^*./BHTU/'>Q;K'.^Y+^[79I-DHG4#OU[[O9>[I+0/QR\5S;FE
MAU[0X"7+2Y:7K-TPH`[+3O*[U7ST9F\4],%MGFE04?N=,U[:O+1Y:=OU=)=W
M5;R/YQFW*XP[0N>XXI,BF&P>8;NBTGW\R8N8%[&=%K%C#T1]2`IW_-7^>GJ;
MS<41Y#>K^3J)%=F!16-[A7=%/6S:@O'R<,#R(+`7AY=:&SMDXN]S/FR'V+AS
M"L@S;N,NYO%L>O&;U78CY>;EULOM<^2VN2Y'7FZ;LP"]E^3YX_GCO>Q'HTZ\
ML<;;NZ)-?=3)R\/:[."!%P=5J)L3_W!I_]48(O9.)%OY->=?O=(CU`UNVO
MWCX>WU6>,M3<*7CKLFU7=-JF;2
-L
M_`0TB)\O&+]#">TPZHY=R1E_._NCN69WZGYEC#S'20(K\!ID&[\$@SE]B*&3
M&3LTT=BVOGQ*QQ/&\_@_I>PX?YD*.0A%3PL.+>'7>X[2+-EF%R&K/_E("&HP
M+.\U%/8T]O8]R!_M_/=;EB2@/)X1)SV-LKEE^:,3+A52)!1T]UHF3$DER\<8
M5&DQ^[@P*SU!T3,9\G%K)V&W:Z4[U9^V_)6-LKM&=FBO8
M78.=S2F)&SUZZ\KV2T%+0&JJ=*?G.\UG@)?[#
2+>L#[:79IMZJ(\T
MQS9'U,7A*'*)/S\X=7P-1;MQ@_,1!(9L,-5J%A'H*);]4M?%R
MQ)J1U0B1K=H)#(Q
`"BW98W_F,JXF@P/U'97RZ>)PH
8P\@Q(#1XP'#$/5H(6M.]%9
M?KHQJ,[RZAR"2$/H[3'A2F)0Y0DP'9LKU652UD56J:Z>JZBP*@40%9XR;;R7
M-::0BHEE"P^H?(P/YMA.@4M](>/YN"JL'>#<`0N1U19S'`TOJ6JLE083*R%?
M@+CC`#N:,7NH&?OD3OM5&:Y&<8>A!\`+KA#EHJA.-:.JV$;0TG3\MP)4YJ
M2J&'2,0S7\"X`ZIZ-=R)M!L'^0W7SD(X;[CV6_T;-UPE-,XY:13P/AYZV%<%
MQVLP*"J51WN)X=I9GIT,UWZ`7)^Y(HW5$&AF,/:8">\Q8/7Z@#)7ESS965Z=
M[98TA-X>$Z[$<"U/@/*"/S3\.+>]UX\$:QC@4`J*!%$<0,Z\KV06)%E9(F
M8NHQGXA`F<#>]N'FOKU3SK/G`HFG%Q24
+U;IJ
M^5,7&U:KN^>C5*6('GZ\GS]\J;+YJTKY7ULJ$!:<1;22HFPM$I`JMF_#)SUN
MSF&DTY3/DF7&4O>KZ8)
@6&6(AW)
MN-R/;'']83Y;''76,,;K*NH1=5H;PY61!GKDD.P6!BT+/OY*9,?C!:X<4%\I
M.PRZQ9V?73!3)V#H9GGUG_=?=\I_;V31T\85MHHC1HGWDIAXU9D1O!T1UK@W
MD3IS@9U)A?JD)-J9:&8).JM7-\O5[6QQ5=]9E_WA9\__HB*0*!#T$H6%0I*R
M,`N[L5$BTI@R7I6?DI@R#*0YZ&+KFWJU^A&T)S#U<^B4QU0.Q.MMD'4$4@0)
MTT:[3M]UN+![!XHBUH@XYV!;Z]UJ/5L[EY?ZM-ZL9E6_)M]H'^/.OZP6<6P\Q8(
MS"5&0!-E.3<=3:%.JQR4K83O5$KT&1#F)$*O,O$H-<0(XSD%(*M;+46-K!
MH2`L^$Z8-($