ACCESS Newswire
02 Jul 2022, 00:55 GMT+10
LOS ANGELES, CA / ACCESSWIRE / July 1, 2022 / The following release corrects and replaces the one that was sent out on June 27.
Correction: Final audited results were filed in today's Annual Report on Form 10-K reporting Full Year Fiscal 2022 Consolidated Revenues of $56.1 million, Adjusted EBITDA of $11.0 million and Net Income of $1.8 million. An adjustment to Net Income for Q1 Fiscal 2022 in the amount of $0.6 million, comprised of a $0.9 million tax provision partially offset by a $0.3 million valuation adjustment to stock-based compensation, was made, which increased Net Income for the year to $1.8 million. Full Year EPS were not impacted. Additionally, fourth quarter and full year Adjusted EBITDA increased by $3.9 million. As a result, the Q4 Fiscal 2022 Adjusted EBITDA was $3.5 million, and the full year 2022 Adjusted EBITDA was $11.0 million. The tables in this release have been updated to reflect these adjustments.
Cinedigm Corp. ('Cinedigm' or 'the Company') (NASDAQ:CIDM), a premier streaming technology and entertainment company super-serving enthusiast fan bases, today announced its audited financial results for the three and twelve-month periods ended March 31, 2022.
'We had tremendous success again this fourth fiscal quarter, growing our total revenues by 104% to $16.9 million. This was driven by record-high streaming revenues that included a 109% increase in ad-supported streaming revenues, which were also up an incredible 793% on a two-year basis,' said Chris McGurk, Chairman and CEO of Cinedigm. 'Our full-year revenues of $56.1 million were up 78%, driven by a 108% increase in our streaming channel revenues, again led by ad-supported revenue growth of 147%, strongly outperforming the rest of the industry. On a two-year basis, full year streaming channel and ad-supported revenues rocketed up as well, higher by 290% and 514%, respectively. We achieved these impressive results because we aggressively entered the high growth ad-supported streaming business several years ago while many other companies continued to solely focus on the highly competitive and expensive general entertainment subscription business. Combined with the successful monetization of our legacy Cinema Digital Equipment business, this rapid revenue growth generated $11.0 million in Adjusted EBITDA for the full fiscal year. That helped eliminate all our debt, fund the bulk of the important Digital Media Rights (DMR) acquisition and generate positive net income for the full year.'
McGurk continued, 'Clearly, our unique diversified streaming and content strategy is working and driving impressive results. And now, adding to this strong business momentum, we are leveraging our vastly increased scale, with a 30-channel streaming portfolio and 46,000 films and TV episodes in our library, by launching four new high-return growth initiatives that fully leverage our asset base, capabilities and industry-leading Matchpoint® technology. These initiatives are the rollout of Cineverse, which will provide consolidated access and cross promotion for all our streaming properties, the aggressive expansion of Cinedigm's Podcast Network, already with a portfolio of 25 podcasts, the rapid launch of comprehensive in-house advertising capabilities, and the imminent rollout of Matchpoint 2.0, which will provide additional revenue opportunities via content aggregation and SaaS services. We expect all these initiatives will generate substantial new multi-million dollar annual revenue streams with minimal working capital and overhead requirements.'
Erick Opeka, Chief Strategy Officer and President, Cinedigm Networks stated, 'The combination of DMR with Cinedigm's fast-growing portfolio of streaming brands and 46,000 title library has created one of the largest overall audiences in streaming. Today, the Company entertains and delights more than 87 million viewers a month across all of our channels, generating more than 2.3 billion minutes viewed per quarter and growing. Clearly, our vision that enthusiast audiences at global scale can create massive, monetizable audiences is being proven by the rapid growth, engagement and revenue produced by our base of loyal fans.'
Opeka continued, 'As we enter the long stretch of our fiscal year, we are excited to continue building on this momentum with new, branded channel launches like The Elvis Presley Channel, the launch of our new, scale streaming service called Cineverse, the rapid scaling of our podcast business, and the launch of our direct sales force to further monetize our portfolio. Cinedigm now has all of the pieces in place to become the next great streaming company - but with the added benefit of diverse, fast growing revenue streams and channels, unlike many of our competitors.'
Tony Huidor, Chief Technology & Product Officer of Cinedigm, stated, 'Technology remains key to the foundation of our business as it drives our relentless goal to deliver high quality content/channel experiences at scale with industry-leading automation that drive tremendous cost efficiencies. We continue to expand our engineering expertise in India and utilize that competitive advantage to improve our Matchpoint 2.0 platform, as we work toward the launch of Cineverse and stay at the forefront of leading-edge industry innovation including AI and the anticipated metaverse.'
Key Fourth Quarter Financial Results (Quarter Ended March 31, 2022):
Key Full Year Financial Results (Twelve-Months Ended March 31, 2022):
Key Business Highlights During the Quarter:
During the fiscal year, the Company:
Completed the DMR acquisition and other significant streaming/content asset roll-ups:
Expanded its networks and deal pipeline:
Launched several new technology initiatives:
Positioned the Company for long-term technology leadership:
Further enhanced the management team:
The Company's acquisition efforts to build our library of premium content and drive the streaming business included these highlights:
The Company reiterates its long-term growth goals for the next 2-4 years:
The Company has already achieved its previously stated goals of obtaining 40 million monthly viewers and attaining engagement of one billion connected TV minutes. As a result of achieving these growth goals one year earlier than anticipated, the Company is currently in the process of resetting these targets.
Conference Call
Cinedigm's management hosted a conference call to discuss these results on Tuesday, June 28, 2022 at 12:00pm ET / 9:00am PT.
A replay of the webcast is available by accessing the Company's website at https://investor.cinedigm.com/events-and-presentations.
###
About Cinedigm
For more than 20 years, Cinedigm (NASDAQ:CIDM) has led the digital transformation of the entertainment industry. Today, Cinedigm entertains consumers around the globe by providing premium feature film and television series, enthusiast streaming channels and technology services to the world's largest media, retail and technology companies. As a leader in the rapidly evolving streaming ecosystem, Cinedigm continues its legacy as an innovator through its adoption of next-generation technologies, such as artificial intelligence and machine learning, through its proprietary, highly scalable Matchpoint® technology platform. For more information, visit www.cinedigm.com.
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cinedigm officials during presentations about Cinedigm, along with Cinedigm's filings with the Securities and Exchange Commission, including Cinedigm's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are 'forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the 'Act''). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as 'expects,' 'anticipates,'' 'intends,'' 'plans,'' 'could,' 'might,' 'believes,'' 'seeks,' 'estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cinedigm's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its technology, economic and market factors and the industries in which Cinedigm does business, among other things. These statements are not guarantees of future performance and Cinedigm undertakes no specific obligation or intention to update these statements after the date of this release.
For additional information:
Investor Relations Contact:
High Touch Investor Relations
[email protected]
CINEDIGM CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
CINEDIGM CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except for share and per share data)
CINEDIGM CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for share and per share data)
Adjusted EBITDA
We define Adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization, other income, net, stock-based compensation and expenses, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.
Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We use Adjusted EBITDA as a financial metric to measure the financial performance of the business because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe Adjusted EBITDA will also be useful to others, including its stockholders, as a valuable financial metric.
We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful both to management and investors when evaluating our performance and comparing our performance with that of our competitors. We also use Adjusted EBITDA for planning purposes and to evaluate our financial performance because Adjusted EBITDA excludes certain incremental expenses or non-cash items, such as stock-based compensation charges, that we believe are not indicative of our ongoing operating performance.
We believe that Adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net loss from continuing operations and Adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to income from operations or net loss from continuing operations as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Following is the reconciliation of our consolidated net loss to Adjusted EBITDA:
Following is the reconciliation of our consolidated net loss to Adjusted EBITDA:
SOURCE: Cinedigm
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