RMG Networks Reports First Quarter 2014 Results
Enterprise Revenue Increased 7% YoY on an Adjusted Basis(1,2)
With Sequential Margin Expansion, Media Revenue(1) Decreased as
Expected With Broader Q1 Out-Of-Home Advertising Market Softness,
Top-Line Momentum Building Into Q2 as Growth Investments
Demonstrate Further Traction, Continue to Expect Accelerated
Revenue and Adjusted EBITDA Generation in Second Half 2014
DALLAS, TX--(Marketwired - May 8, 2014) - RMG Networks Holding
Corporation (NASDAQ: RMGN)
Quarter Highlights
- First quarter consolidated revenue of $12.6 million, on an
adjusted basis1,2, comprised of $10.1 million in adjusted
Enterprise revenue1,2 and $2.5 million in Media revenue
- Launched enhanced Visual Supply Chain solution expanding suite
of visual communications solutions
- Completed installation of the RMG Office Network and generated
initial network revenues
- Generated initial EMEA advertising bookings and added two EMEA
airline partnerships with Etihad Airways and OnAir
- South East Asia and China regions generated initial Enterprise
revenues; Middle East continued strong growth
- Cross-selling initiatives continued to gain traction with two
global customers signing contracts spanning multiple
geographies
RMG Networks Holding Corporation (NASDAQ: RMGN), or RMG
Networks, a leading provider of technology-driven visual
communications solutions, today announced its financial results for
the first quarter ended March 31, 2014.
RMG Networks helps brands and organizations communicate more
effectively using location-based video networks. The company
connects brands with target audiences using video advertising
networks comprised of over 200,000 display screens, reaching over
100 million consumers each month. The company also builds
enterprise video networks that empower organizations to visualize
critical data to better run their business.
Garry McGuire, Chief Executive Officer, commented, "RMG Networks
marked a number of significant achievements in Q1 as we continue to
execute our long term plan. First quarter financial results were
mixed, in some part due to macro trends. However, the early
successes of our 2013 growth investments that we saw begin in late
2013 persisted into Q1 and are continuing into Q2. In our
Enterprise business, our offices in new and newly expanded
geographies are delivering positive results, our newly expanded
sales force is gaining traction and our cross-selling initiatives
are paying off in incremental deals from existing customers across
geographies and across product solutions. Though recognized
revenues were down in our Media unit for the quarter, we booked a
20%+ increase in new contracts in the quarter versus last year,
booked our first media contracts in Europe, recognized the first
revenues on our Office Network and announced advertising
partnerships with two new international airline partners."
"With 2014 off to a promising start, we remain focused on
driving execution and generating returns on our growth investments.
RMG Networks has built a platform of personnel, products and
solutions designed to advance our market leadership and the unique
value proposition of offering comprehensive place-based video
networks. The traction we are gaining reinforces our confidence in
our strategy. We expect Q2 revenue to build toward a strong
sequential increase and for accelerated revenue growth and EBITDA
generation to begin at mid-year 2014 as our recently-expanded sales
force begins to reach productivity. RMG Networks is focused on
executing on our mission to be the global leader in intelligent
visual communications."
First Quarter and 2013 Financial Review
RMG Networks completed the business combinations of Reach Media
Group Holdings, Inc. and Symon Holdings Corporation, or Symon, on
April 8 and April 19, 2013, respectively. Symon was determined to
be the Predecessor Company for accounting purposes and accordingly
Symon's historical financials are included for comparison in RMG
Networks' "as-reported" financials. Because Symon recorded results
of operations on a January 31 fiscal year and because the results
of Reach Media Group Holdings, Inc. are not included in Predecessor
Company financials, first quarter 2014 results as-reported are not
comparable with the Predecessor Company's results for first quarter
2013. In addition, our "as-reported" results include certain items
and the effects of purchase accounting which we do not believe
reflect the underlying performance of our business. Therefore, for
ease of comparison, we provide, in the following results, adjusted
results for the 2014 first quarter and pro forma combined results
for the 2013 first quarter as if the companies had existed as a
combined entity for the relevant periods and adjusting for the
items described above.
Adjusted and Pro
Forma Combined Results(3) First Quarter
Revenue. Total first quarter adjusted 2014 revenues were $12.6
million, a decrease of 16% from $15.0 million of pro forma combined
revenues in the first quarter of 2013.
- Adjusted Enterprise revenue of $10.1 million increased 7% from
$9.4 million in the first quarter of 2013, due to continued sales
momentum from expanded sales teams and geographic presence.
Adjusted Enterprise gross margin was 57.5% compared to 60.0% in the
first quarter of 2013, decreasing year over year due to sales mix
but increasing sequentially from the 50.9% demonstrated in the
fourth quarter of 2013.
- Media revenue of $2.5 million decreased 54% from $5.6 million
in the first quarter of 2013, primarily due to soft demand in the
out-of-home advertising sector, as has been reported by other
out-of-home advertising companies. The softness experienced in the
first quarter resulted from, among other items, a shift in
advertising dollars to Olympic broadcast TV coverage. Adjusted
Media gross margin was (16.8)% compared to 31.0% in the first
quarter of 2013, due primarily to significantly lower revenue
failing to cover fixed costs of sales. We expect full year media
gross margins to normalize as sales increase above our fixed costs
in future quarters and first quarter shortfalls are recovered.
On a sequential basis, adjusted revenues decreased as expected
in the first quarter to $12.6 million from $22.5 million in the
fourth quarter of 2013, consistent with historical seasonality in
the business.
First Quarter Operating loss and Adjusted EBITDA.
Adjusted operating loss was $8.3 million compared to pro forma
operating loss of $2.6 million in the first quarter of 2013. This
increased loss is attributable to lower advertising revenue and
gross margin in the current year period, higher operating expenses
in the current year period resulting from investments made during
the second half of 2013 in new sales and marketing personnel to
support growth initiatives and approximately $2.1 million of
additional depreciation, amortization and stock-based compensation
expense.
Adjusted EBITDA loss was $5.3 million compared to pro forma
combined adjusted EBITDA loss of $0.8 million in the first quarter
of 2013, decreasing for the reasons described above.
Reported
Results First Quarter. Total reported revenue
for the quarter ended March 31, 2014 was $11.8 million; total
revenue for the predecessor company for the period from February 1
to April 19, 2013 was $7.2 million.
Operating loss for the quarter ended March 31, 2014 was $8.5
million; operating income for the predecessor company for the
period from February 1 to April 19, 2013 was $3.1 million.
Growth Outlook
Though the company expects to see some continued near term
weakness in the out-of-home advertising market, we continue to
expect that the sales investments we made in the second half of
2013 will drive accelerated second half 2014 revenue and that we
will achieve 20+% year-over-year adjusted revenue growth. Revenue
growth will lead to increasing operating leverage and the company
expects to generate positive adjusted EBITDA for the full year
2014.
Conference Call
Management will host a conference call to discuss these results
today, Thursday, May 8, 2014 at 9:00 a.m. ET.
To access the call, please dial 866-271-5140 (toll free) or
617-213-8893 and passcode # 11531526. The conference call will also
be broadcast live over the Internet with an accompanying slide
presentation, which can be accessed via the Investor Relations
section of RMG Networks' web site at
http://ir.rmgnetworks.com/phoenix.zhtml?c=251935&p=irol-calendar.
All participants should call or access the website approximately 10
minutes before the conference begins. The webcast and slide
presentation will be available for replay for 90 days.
A telephonic replay of this conference call will also be
available by dialing 888-286-8010 (toll free) or 617-801-6888
(passcode: 65336145) from 1:00 p.m. ET on May 8, 2014 until
midnight ET on May 12, 2014.
About RMG Networks
RMG Networks (NASDAQ: RMGN) helps brands and organizations
communicate more effectively using location-based video networks.
The company connects brands with target audiences using video
advertising networks comprised of over 200,000 display screens,
reaching over 100 million consumers each month. The company also
builds enterprise video networks that empower organizations to
visualize critical data to better run their business. RMG Networks
works with over 70% of the Fortune 100. The company is
headquartered in Dallas, Texas with offices in the United States,
United Kingdom, China, India, Singapore, Brazil and the U.A.E. For
more information, visit http://www.rmgnetworks.com.
About Non-GAAP Financial Measures
This release includes certain non-GAAP financial measures as
defined under SEC regulations, including Adjusted EBITDA. In
evaluating its business, RMG Networks considers and uses Adjusted
EBITDA as a supplemental measure of its operating performance, and
believes that many of the company's investors use this non-GAAP
measure to monitor the company's performance. This measure should
not be considered as a substitute for the most directly comparable
GAAP measures and should not be used in isolation, but in
conjunction with these GAAP measures. Definitions and
reconciliations between non-GAAP measures and relevant GAAP
measures are set forth in the tables at the end of this press
release.
Cautionary Note Regarding Forward Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as: "anticipate,"
"intend," "plan," "goal," "seek," "believe," "project," "estimate,"
"expect," "strategy," "future," "likely," "may," "should," "will"
and similar references to future periods. Examples of
forward-looking statements include, among others, statements we
make regarding guidance relating to future financial performance,
expected operating results, such as revenue growth, and efforts to
grow our business.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based only on
our current beliefs, expectations and assumptions regarding the
future of our business, future plans and strategies, projections,
anticipated events and trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. Our actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, the following: the company's success in
retaining or recruiting, or changes required in, its management and
other key personnel; the limited liquidity and trading volume of
the company's securities; Reach Media Group's ("RMG") history of
incurring significant net losses and limited operating history; the
competitive environment in the advertising markets in which the
company operates; the risk that the anticipated benefits of the
combination of RMG or Symon Holdings Corporation, or of other
acquisitions that the company may complete, may not be fully
realized; the risk that any projections, including earnings,
revenues, margins or any other financial items are not realized;
changing legislation and regulatory environments; business
development activities, including the company's ability to contract
with, and retain, customers on attractive terms; the general
volatility of the market price of the company's common stock; risks
and costs associated with regulation of corporate governance and
disclosure standards (including pursuant to Section 404 of the
Sarbanes-Oxley Act); and general economic conditions.
Any forward-looking statement made by us in this press release
is based only on information currently available to us and speaks
only as of the date on which it is made. We undertake no obligation
to publicly update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments or otherwise.
1 2014 adjusted results; 2013 pro forma combined results;
Enterprise revenues represent Products, Maintenance and Content
Services, and Professional Services revenue line items; Media
revenues represent Advertising revenue line item.
2 On an "as-reported" basis for Q1 2014, Enterprise revenue of
$9.2 million decreased 2%, versus Q1 2013 pro forma combined
results, and total revenue was $11.8 million. 2014 adjusted results
include a $209,913 add back to Enterprise revenue for the effects
of purchase accounting as well as a $639,042 reclassification of a
GAAP charge in Product revenue to Advertising cost of sales.
3 2014 adjusted results; 2013 pro forma combined results;
Enterprise revenues represent Products, Maintenance and Content
Services, and Professional Services revenue line items; Media
revenues represent Advertising revenue line item.
|
|
RMG Networks Holding Corporation |
|
Consolidated Balance Sheets |
|
March 31, 2014 and December 31, 2013 |
|
|
|
|
|
March 31, 2014 |
|
|
December 31, 2013 |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents |
|
$ |
4,761,726 |
|
|
$ |
8,235,566 |
|
|
Accounts receivable, net |
|
|
14,796,364 |
|
|
|
22,731,678 |
|
|
Inventory, net |
|
|
4,304,405 |
|
|
|
4,633,213 |
|
|
Deferred tax assets |
|
|
53,934 |
|
|
|
63,617 |
|
|
Other
current assets |
|
|
1,957,129 |
|
|
|
2,224,547 |
|
Total current assets |
|
|
25,873,558 |
|
|
|
37,888,621 |
|
Property and equipment, net |
|
|
4,453,077 |
|
|
|
3,548,985 |
|
Intangible assets, net |
|
|
37,122,000 |
|
|
|
38,782,000 |
|
Goodwill |
|
|
29,299,514 |
|
|
|
28,673,156 |
|
Loan origination fees |
|
|
914,565 |
|
|
|
971,726 |
|
Other assets |
|
|
344,102 |
|
|
|
496,879 |
|
Total assets |
|
$ |
98,006,816 |
|
|
$ |
110,361,367 |
|
Liabilities and Stockholders' equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,629,780 |
|
|
$ |
8,009,380 |
|
|
Revenue share liabilities |
|
|
1,074,943 |
|
|
|
2,595,614 |
|
|
Accrued liabilities |
|
|
3,627,807 |
|
|
|
4,423,896 |
|
|
Deferred revenue |
|
|
10,472,602 |
|
|
|
10,074,420 |
|
|
Capital leases and other |
|
|
86,228 |
|
|
|
117,710 |
|
Total current liabilities |
|
|
19,891,360 |
|
|
|
25,221,020 |
|
Notes payable - non current |
|
|
8,000,000 |
|
|
|
8,000,000 |
|
Warrant liability |
|
|
6,754,103 |
|
|
|
4,573,123 |
|
Deferred revenue - non current |
|
|
1,011,777 |
|
|
|
990,989 |
|
Deferred tax liabilities |
|
|
6,013,079 |
|
|
|
6,430,853 |
|
Capital leases and other |
|
|
404,075 |
|
|
|
392,558 |
|
Total liabilities |
|
|
42,074,394 |
|
|
|
45,608,543 |
|
Commitment and Contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock, $.0001 par value, (250,000,000 shares authorized;
12,367,756 and 11,920,583 shares issued and outstanding at March
31, 2014 and December 31, 2013, respectively) |
|
|
1,237 |
|
|
|
1,192 |
|
|
Additional paid-in capital |
|
|
81,058,915 |
|
|
|
77,452,317 |
|
|
Accumulated comprehensive income |
|
|
304,224 |
|
|
|
299,618 |
|
|
Retained earnings (accumulated deficit) |
|
|
(25,431,954 |
) |
|
|
(13,000,303 |
) |
Total stockholders' equity |
|
|
55,932,422 |
|
|
|
64,752,824 |
|
Total liabilities and stockholders' equity |
|
$ |
98,006,816 |
|
|
$ |
110,361,367 |
|
|
See
accompanying notes to consolidated financial statements. |
|
|
|
RMG Networks Holding Corporation |
|
Consolidated Statements of Comprehensive Income
(Loss) |
|
For The Three Months Ended March 31, 2014 and The
Period February 1 Through April 19, 2013 |
|
|
|
|
|
Successor Company Three Months Ended March 31,
2014 |
|
|
Predecessor Company February 1, 2013 Through April 19,
2013 |
|
|
|
(Unaudited) |
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
Advertising |
|
$ |
2,546,091 |
|
|
$ |
- |
|
|
Products |
|
|
2,287,747 |
|
|
|
2,239,236 |
|
|
Maintenance and content services |
|
|
4,302,725 |
|
|
|
3,594,520 |
|
|
Professional services |
|
|
2,638,566 |
|
|
|
1,323,559 |
|
Total Revenue |
|
|
11,775,129 |
|
|
|
7,157,315 |
|
Cost of Revenue: |
|
|
|
|
|
|
|
|
|
Advertising |
|
|
2,335,743 |
|
|
|
- |
|
|
Products |
|
|
1,909,923 |
|
|
|
1,498,135 |
|
|
Maintenance and content services |
|
|
760,146 |
|
|
|
611,692 |
|
|
Professional services |
|
|
1,609,830 |
|
|
|
861,640 |
|
Total Cost of Revenue |
|
|
6,615,642 |
|
|
|
2,971,467 |
|
Gross Profit |
|
|
5,159,487 |
|
|
|
4,185,848 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
5,233,280 |
|
|
|
1,729,871 |
|
|
General and administrative |
|
|
5,405,768 |
|
|
|
1,739,348 |
|
|
Research and development |
|
|
1,091,926 |
|
|
|
512,985 |
|
|
Acquisition expenses |
|
|
- |
|
|
|
3,143,251 |
|
|
Depreciation and amortization |
|
|
1,920,033 |
|
|
|
140,293 |
|
Total operating expenses |
|
|
13,651,007 |
|
|
|
7,265,748 |
|
Operating income (loss) |
|
|
(8,491,520 |
) |
|
|
(3,079,900 |
) |
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
Warrant liability expense |
|
|
(4,641,471 |
) |
|
|
- |
|
|
Interest expense and other - net |
|
|
(248,739 |
) |
|
|
(14,553 |
) |
Income (loss) before income taxes |
|
|
(13,381,730 |
) |
|
|
(3,094,453 |
) |
Income tax expense (benefit) |
|
|
(950,079 |
) |
|
|
(540,897 |
) |
Net income (loss) |
|
|
(12,431,651 |
) |
|
|
(2,553,556 |
) |
Other comprehensive income - |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
4,606 |
|
|
|
(121,144 |
) |
Total comprehensive income (loss) |
|
$ |
(12,427,045 |
) |
|
$ |
(2,674,700 |
) |
|
|
Net
income (loss) per share: |
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per share of Common
Stock |
|
$ |
(1.04 |
) |
|
|
- |
|
Basic and diluted net income (loss) per share of Class
L Common Stock |
|
|
- |
|
|
$ |
(2.55 |
) |
|
Weighted average shares used in computing basic and
diluted net income (loss) per share of Common Stock |
|
|
11,952,172 |
|
|
|
- |
|
|
Weighted average shares used in computing basic and
diluted net income (loss) per share of Class L Common Stock |
|
|
- |
|
|
|
1,000,000 |
|
|
Weighted average shares used in computing basic and
diluted net income (loss) per share of Class A Non-Voting Common
Stock |
|
|
- |
|
|
|
68,889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMG Networks Holding Corporation |
|
Pro Forma Consolidated Statements of Operations |
|
|
|
|
|
First Quarter |
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
Revenues - |
|
|
|
|
|
|
Advertising |
|
2,546,091 |
|
|
5,592,874 |
|
Product sales |
|
2,926,789 |
|
|
3,415,497 |
|
Maintenance and content services |
|
4,512,638 |
|
|
4,082,034 |
|
Professional services |
|
2,638,566 |
|
|
1,924,499 |
|
|
Total |
|
12,624,084 |
|
|
15,014,904 |
|
|
|
|
|
|
|
|
Cost of Revenues - |
|
|
|
|
|
|
Advertising |
|
2,974,785 |
|
|
3,856,742 |
|
Product sales |
|
1,909,923 |
|
|
1,962,789 |
|
Maintenance and content services |
|
760,146 |
|
|
683,299 |
|
Professional services |
|
1,609,830 |
|
|
1,124,341 |
|
|
Total |
|
7,254,684 |
|
|
7,627,171 |
|
|
|
|
|
|
|
|
Gross Profit |
|
5,369,400 |
|
|
7,387,733 |
|
|
|
|
|
|
|
|
Operating Expenses |
|
13,651,007 |
|
|
9,952,510 |
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(8,281,607 |
) |
|
(2,564,777 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMG Networks Holding Corporation |
|
Consolidated Statements of Cash Flows |
|
For The Three Months Ended March 31, 2014 and The
Period February 1 through April 19, 2013 |
|
|
|
|
|
Successor Company Three Months Ended March 31,
2014 |
|
|
Predecessor Company February 1, 2013 Through April 19,
2013 |
|
|
|
(Unaudited) |
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(12,431,651 |
) |
|
$ |
(2,553,556 |
) |
|
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,920,033 |
|
|
|
140,293 |
|
Change in warrant liability |
|
|
4,641,471 |
|
|
|
- |
|
Stock-based compensation |
|
|
1,029,688 |
|
|
|
- |
|
Non-cash loan origination fees |
|
|
57,161 |
|
|
|
- |
|
Non-cash consulting expense |
|
|
144,750 |
|
|
|
- |
|
Non-cash directors' fees |
|
|
116,464 |
|
|
|
- |
|
Deferred tax (benefit) |
|
|
(950,081 |
) |
|
|
(12,294 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
7,935,314 |
|
|
|
2,846,332 |
|
|
Inventory |
|
|
328,808 |
|
|
|
(488,722 |
) |
|
Other current assets |
|
|
267,418 |
|
|
|
(154,529 |
) |
|
Other assets, net |
|
|
8,027 |
|
|
|
12,572 |
|
|
Accounts payable |
|
|
(3,379,598 |
) |
|
|
(2,978,808 |
) |
|
Accrued liabilities |
|
|
(2,421,096 |
) |
|
|
(767,991 |
) |
|
Deferred revenue |
|
|
418,971 |
|
|
|
(372,579 |
) |
Net cash provided by (used in) operating
activities |
|
|
(2,314,321 |
) |
|
|
(4,329,282 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(1,164,125 |
) |
|
|
(86,470 |
) |
Net cash provided by (used in) investing
activities |
|
|
(1,164,125 |
) |
|
|
(86,470 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
4,606 |
|
|
|
(121,144 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents |
|
|
(3,473,840 |
) |
|
|
(4,536,896 |
) |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
|
8,235,566 |
|
|
|
10,203,169 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
4,761,726 |
|
|
$ |
5,666,273 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
|
Cash
paid during the period for interest |
|
$ |
100,480 |
|
|
$ |
2,053 |
|
|
|
Cash
paid during the period for income taxes |
|
$ |
- |
|
|
$ |
150,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RMG Networks Holding Corporation |
|
Reconciliation of Operating Loss to Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter |
|
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
Operating income (loss) per Statement of Comprehensive
Income |
|
(8,491,520 |
) |
|
(3,079,900 |
) |
|
|
|
|
|
|
|
Predecessor Company operating loss for the period April
1 through April 19, 2013 |
|
|
|
|
3,018,415 |
|
|
|
|
|
|
|
|
Predecessor Company operating loss for the period
January 1 through January 31, 2013 |
|
|
|
|
(59,788 |
) |
|
|
|
|
|
|
|
Reach Media Group Holdings Corporation operating
loss for the period January 1 through March 31, 2013 |
|
|
|
|
(2,443,504 |
) |
|
|
|
|
|
|
|
Revenues that would have been recognized in the period
had the balance in deferred revenue at the acquisition date not
been required to be adjusted to market value at the acquisition
date in accordance with GAAP purchase accounting guidelines |
|
209,913 |
|
|
|
|
|
|
|
|
|
|
|
Pro-Forma Operating Income (Loss) |
|
(8,281,607 |
) |
|
(2,564,777 |
) |
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,920,033 |
|
|
815,032 |
|
Acquisition expenses |
|
0 |
|
|
904,108 |
|
Stock-based compensation |
|
1,029,688 |
|
|
0 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(5,331,886 |
) |
|
(845,637 |
) |
|
|
|
|
|
|
|
Contact: For RMG Networks Holding Corporation Investor
Carolyn M. Capaccio 212-838-3777 Email Contact or
Media TallGrass Public Relations Sheree N. Johnson
917-783-7349 Email Contact
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