Majesco Entertainment Company Reports Fourth Quarter and Full Year
Fiscal 2013 Financial Results
EDISON, NJ--(Marketwired - Jan 14, 2014) - Majesco Entertainment
Company (NASDAQ: COOL), an innovative provider of video games for
the mass market, today reported financial results for the fourth
quarter and full year of fiscal 2013 ended October 31, 2013.
Fourth Quarter Results
For the fourth quarter ended October 31, 2013, Majesco's net
revenues were $10.1 million, down 62 percent versus $26.6 million
in the same period a year ago. During the fourth quarter of fiscal
2013, the Company reported an operating loss of $4.5 million,
compared to operating loss of $3.0 million in the fourth quarter of
fiscal 2012. Net loss for the fourth quarter was $4.6 million
compared to net loss of $2.7 million in the fourth quarter of
fiscal 2012. The Company's basic and diluted net loss per share for
the quarter ended October 31, 2013 was $(0.10), compared to basic
and diluted net loss per share of $(0.07) in the same period last
year.
On a non-GAAP basis, the net loss for the fourth quarter ended
October 31, 2013 was $4.2 million compared to non-GAAP net loss of
$2.7 million in the fourth quarter of last year. The non-GAAP
diluted net loss per share for the quarter ended October 31, 2013
was $(0.09) compared to diluted net loss per share of $(0.07) in
the same period last year. Please refer to the Reconciliation of
GAAP to non-GAAP Financial Measures table included later in this
release for additional information and details on non-GAAP
items.
Twelve Month Fiscal 2013 Results
For the twelve months ended October 31, 2013, the Company's net
revenues were $47.3 million versus $132.3 million in the year ago
period, a decline of 64 percent. The Company reported an operating
loss of $12.2 million compared to operating income of $3.7 million
in the same period of 2012. For the twelve months ended October 31,
2013, net loss was $12.6 million compared to net income of $4.6
million for the twelve months ended October 31, 2012. Included in
twelve month fiscal 2013 operating results is a charge of $0.8
million for severance expenses from the strategic realignment
implemented in January 2013. The Company's basic and diluted net
loss per share for the twelve months ended October 31, 2013 was
$(0.30), compared to basic and diluted net income per share of
$0.12 and $0.11, respectively, for the corresponding period in
2012.
Non-GAAP operating loss for the twelve month period was $10.0
million compared to non-GAAP operating income of $5.4 million for
the comparable period in 2012. For the same period, non-GAAP net
loss was $10.5 million in 2013 compared to non-GAAP net income of
$4.4 million in 2012. The Company's non-GAAP basic and diluted net
loss per share for the twelve months ended October 31, 2013 was
$(0.25) compared to diluted net income per share of $0.10 in the
corresponding period of 2012. Please refer to the Reconciliation of
GAAP to non-GAAP Financial Measures table included later in this
release for additional information and details on non-GAAP
items.
Management Commentary
"Given the ongoing industry transition in console gaming, 2013
unfolded as we expected," said Jesse Sutton, Chief Executive
Officer of Majesco Entertainment. "The casual game market has
fragmented as new digital platforms have gained popularity, causing
disruption and opportunity for Majesco. In response to the changing
landscape, we have implemented a multi-pronged strategy that
leverages Majesco's traditional core competencies -- our sales and
marketing expertise, strong industry relationships and broad
distribution reach -- to diversify our revenue sources and position
Majesco for renewed growth. Key elements of the strategy include
shifting to an outsourced variable cost business model, focusing on
a smaller slate of high-profile branded games based on popular
characters or franchises and investing in two strategic growth
areas: online casino games and digital lotteries through our
partnership in GMS Entertainment and the formation of a new
division, Midnight City, to publish and distribute digital games
for independent developers."
"During the fourth quarter Midnight City released its first set
of games and GMS Entertainment completed the acquisition of
Pariplay Limited. We also released console and mobile games based
on characters with established audiences such as Phineas and Ferb,
Agent P Doofendash and Monster High. The rest of our holiday slate
was released early in our first fiscal quarter of 2014, including
the newest iterations of our Zumba franchise, Zumba Kids and Zumba
Fitness World Party, which launched in November and followed the
popular release of Zumba Dance, the first ever motion-based fitness
experience for mobile tablets," added Mr. Sutton.
"Looking ahead, although the next generation of gaming consoles
has been launched, the development of an installed user base and
casual game market is still a 'work in progress.' Accordingly, in
our ongoing relationship with Zumba Fitness, we plan to continue to
jointly promote the current popular game titles in the marketplace
in 2014, including our recently launched Zumba Fitness World Party,
rather than enter into a fixed long-term agreement for new sequels.
We will evaluate plans for future motion sensing games on next
generation platforms as we gain more visibility in the market and
see the installed base grow. Our balance sheet, with approximately
$18.2 million of cash and availability from our factor, continues
to afford Majesco the financial strength to weather the current
industry transition and to invest for renewed growth," concluded
Mr. Sutton.
Fiscal 2014 Outlook
Due to the continuing lack of clarity on market development and
consumer preferences for the recently released video gaming
consoles, management is currently not providing sales and earnings
guidance for fiscal 2014.
Announced Product Line-up
First Quarter Fiscal 2014 Ending January 31, 2014
To date, the Company has announced the following titles that
were, or are expected to be, released during its fiscal first
quarter 2014, which includes the recent holiday sales period:
- Zumba® Fitness World Party on Xbox One®, the all-in-one games
and entertainment system from Microsoft, Kinect™ for Xbox 360®, Wii
U™ and Wii™ is the latest game in the successful dance fitness
franchise that has sold more than 10 million units worldwide. This
fun, freeing fitness journey embodies Zumba's global reach of over
185 countries by taking your workout to exotic locations around the
world. Work your body with new modes, dance styles and 40
high-energy new routines set to a world-class soundtrack featuring
Lady Gaga, Daddy Yankee and Pitbull. (Launched in November)
- Zumba® Kids on Kinect™ for Xbox 360® and Wii™ is the first
brand extension of the best-selling Zumba franchise that is
custom-designed for younger players. Featuring a range of
dance styles, creative mini-games, customization and chart-topping
hits from Justin Bieber and Willow Smith, this engaging interactive
experience is packed with gameplay to keep kids moving! (Launched
in November)
- Young Justice: Legacy (distributed by Majesco, published by
Little Orbit) on PlayStation®3, Xbox 360 and Wii U™ is based on the
acclaimed Cartoon Network animated series inspired by the DC Comics
characters. Players assemble their Young Justice team from 12
heroes including NightWing, Kid Flash, Robin and more. Track down
notorious villains and be mentored by powerful superheroes as you
explore, customize and battle in this action-packed, RPG styled
game. (Launched in November)
- Barbie™ Dreamhouse Party™ (distributed by Majesco, published by
Little Orbit) on Wii U™, Wii™, Nintendo 3DS™ and DS™ takes fans
behind the pink doors into the fantastic world of the Barbie®
Dreamhouse® mansion. (Launched in November)
- The Bridge on the Xbox Live online entertainment network from
Microsoft offers a supremely cerebral 2D puzzle experience. Players
join our stalwart, amnesiac protagonist through a journey into his
heart, mind and soul to discover the life he's forgotten.
Throughout the story, players progress through detail-oriented,
hand-drawn environments with aesthetics reminiscent of M.C.
Escher's artwork and style.
- Agent P: Doofendash, on tablets, iOS and Android phones is
an action-packed endless runner set in the Phineas and Ferb
universe. Featuring Agent P and the top agents of the Organization
Without a Cool Acronym (O.W.C.A.), the game transports players onto
the rooftops of Danville through Doofenshmirtz Evil Inc., and into
the skies above the Tri-State Area to provide an authentic Phineas
and Ferb experience.(Launched in November)
- The motion-based Zumba® Dance for iOS and Android smartphones
brings one of the "Best Tablet Fitness Apps of 2013" to millions of
mobile phones for the first time. Offering motion-tracking
technology that uses the phone's front-facing camera, the game also
features global dance styles coupled with chart-topping hits, a
progress tracker that counts calories burned, class customization,
tutorials and a live class locator.
- BandFuse: Rock Legends, (distributed by Majesco, published by
Mastiff) on Xbox 360® video game and entertainment system from
Microsoft and PlayStation® 3 computer entertainment system,
features legendary rockers who transform players into real-world
guitarists, bassists and vocalists. Reinvigorating the music genre
with a stellar lineup of acclaimed talent, exclusive real-guitar
and vocal multiplayer, authentic animated tablature and lag-free
audio, the game unleashes a full band experience for players of all
skill levels with 55 genre-jumping songs ranging from rock to metal
and punk to funk.
Fiscal 2014
The Company expects to announce details of its 2014 lineup in
the coming months.
Conference Call
At 4:30 p.m. ET today, January 14, 2014, management will host an
earnings conference call. To access the call in the U.S., please
dial 1-800-860-2442. Please dial in approximately 10 minutes
prior to the start of the conference call. The conference call will
also be broadcast live over the Internet and available for replay
for 90 days from the "Investor Info" section of the Company's
website at http://ir.majescoentertainment.com. In addition, a
replay of the call will be available via telephone for seven days
beginning approximately two hours after the call. To listen to the
telephone replay in the U.S., please dial 1-877-344-7529 and for
international callers, dial 1-412-317-0088. Enter access code
#10038848.
Generally Accepted Accounting Principles (GAAP) and Non-GAAP
Metrics
To facilitate a comparison between the three and twelve months
ended October 31, 2013 and 2012, the Company has presented both
GAAP and non-GAAP financial results. GAAP financial measures,
including operating income, net income, and basic and diluted
earnings per share, have been adjusted to report certain non-GAAP
financial measures.
These non-GAAP financial measures exclude the following items
from the Company's consolidated statements of operations:
- Expenses related to non-cash compensation
- Expenses related to workforce reduction
- Change in fair value of warrants
These non-GAAP measures are provided to enhance investors'
overall understanding of the Company's current financial
performance and the Company's prospects for the future. These
measures should be considered in addition to results prepared in
accordance with GAAP, but should not be considered a substitute
for, or superior to, GAAP results.
For more information on these non-GAAP financial measures,
please see the tables in this release captioned "Reconciliation of
GAAP to Non-GAAP Financial Measures."
About Majesco Entertainment Company
Majesco Entertainment Company is an innovative developer,
marketer, publisher and distributor of interactive entertainment
for consumers around the world. Building on more than 25 years of
operating history, the company develops and publishes a wide range
of video games through several divisions, including its console and
handheld division, its mobile division, and its independent digital
label, Midnight City. Majesco also owns 50% of GMS Entertainment,
the parent company of online gaming company Pariplay, which
specializes in iGaming, iLottery and social gaming. Majesco is
headquartered in Edison, NJ and the company's shares are traded on
the Nasdaq Stock Market under the symbol: COOL. More info can be
found online at majescoent.com or on Twitter at
twitter.com/majesco.
Safe Harbor
Some statements set forth in this release, including the
estimates under the headings "Fiscal 2014 Outlook" contain
forward-looking statements that are subject to change. Examples of
forward-looking statements include statements relating to industry
prospects, our future economic performance including anticipated
revenues and expenditures, results of operations or financial
position, and other financial items, our business plans and
objectives, including our intended product releases, and may
include certain assumptions that underlie forward-looking
statements. Statements including words such as "anticipate,"
"believe," "estimate" or "expect" and statements in the future
tense are forward-looking statements. These statements are
subject to business and economic risk and reflect management's
current expectations, and involve subjects that are inherently
uncertain and difficult to predict. Some of the risks and
uncertainties which could cause our results to differ
materially from our expectations include the following: consumer
demand for our products, the availability of an adequate supply of
current-generation and next-generation gaming hardware; our ability
to predict consumer preferences among competing hardware platforms;
consumer spending trends; the seasonal and cyclical nature of the
interactive game segment; timely development and release of our
products; competition in the interactive entertainment industry;
developments in the law regarding protection of our products; our
ability to secure licenses to valuable entertainment properties on
favorable terms; our ability to manage expenses; our ability to
attract and retain key personnel; adoption of new accounting
regulations and standards; adverse changes in the securities
markets; our ability to comply with continued listing requirements
of the Nasdaq stock exchange; the availability of and costs
associated with sources of liquidity; and other factors described
in our filings with the SEC, including our Annual Report on Form
10-K for the year ended October 31, 2013. The Company does not
undertake, and specifically disclaims any obligation, to release
publicly the results of any revisions that may be made to any
forward-looking statements to reflect the occurrence of anticipated
or unanticipated events or circumstances after the date of such
statements.
|
|
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY |
|
UNAUDITED SUPPLEMENTARY PRODUCT DATA |
|
NET SALES BY PLATFORM FOR THREE AND TWELVE MONTHS |
|
(Unaudited, in thousands) |
|
|
|
|
|
Three months Ended October 31, |
|
|
Twelve months Ended October 31, |
|
|
|
|
|
|
|
|
|
|
2013 |
|
% |
|
|
2012 |
|
% |
|
|
2013 |
|
% |
|
|
2012 |
|
% |
|
|
|
(thousands) |
|
|
|
|
(thousands) |
|
|
|
|
(thousands) |
|
|
|
|
(thousands) |
|
|
|
Nintendo Wii/WiiU |
|
$ |
3,101 |
|
31 |
% |
|
$ |
13,867 |
|
52 |
% |
|
$ |
21,874 |
|
46 |
% |
|
$ |
79,014 |
|
60 |
% |
Microsoft Xbox 360 |
|
|
1,331 |
|
13 |
% |
|
|
8,383 |
|
32 |
% |
|
|
10,408 |
|
22 |
% |
|
|
34,874 |
|
26 |
% |
Nintendo DS/3DS |
|
|
4,577 |
|
45 |
% |
|
|
3,885 |
|
15 |
% |
|
|
11,930 |
|
25 |
% |
|
|
15,479 |
|
11 |
% |
Sony Playstation 3 |
|
|
281 |
|
3 |
% |
|
|
76 |
|
0 |
% |
|
|
845 |
|
2 |
% |
|
|
885 |
|
1 |
% |
Accessories and other |
|
|
787 |
|
8 |
% |
|
|
351 |
|
1 |
% |
|
|
2,210 |
|
5 |
% |
|
|
2,035 |
|
2 |
% |
TOTAL |
|
$ |
10,077 |
|
100 |
% |
|
$ |
26,562 |
|
100 |
% |
|
$ |
47,267 |
|
100 |
% |
|
$ |
132,287 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(In thousands, except share amounts) |
|
|
|
|
|
October 31, 2013 |
|
|
October 31, 2012 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,385 |
|
|
$ |
18,038 |
|
|
Due from factor, net |
|
|
2,134 |
|
|
|
12,501 |
|
|
Accounts and other receivables |
|
|
1,169 |
|
|
|
3,936 |
|
|
Inventory |
|
|
4,859 |
|
|
|
7,762 |
|
|
Advance payments for inventory |
|
|
1,064 |
|
|
|
257 |
|
|
Capitalized software development costs and license
fees |
|
|
7,825 |
|
|
|
3,489 |
|
|
Prepaid expenses and other current assets |
|
|
2,827 |
|
|
|
1,724 |
|
|
|
Total
current assets |
|
|
33,263 |
|
|
|
47,707 |
|
Property and equipment, net |
|
|
817 |
|
|
|
1,003 |
|
Investment in GMS Entertainment Limited |
|
|
3,500 |
|
|
|
- |
|
Other assets |
|
|
69 |
|
|
|
588 |
|
|
|
Total
assets |
|
$ |
37,649 |
|
|
$ |
49,298 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
8,994 |
|
|
$ |
15,490 |
|
|
Inventory financing |
|
|
1,764 |
|
|
|
- |
|
|
Advances from customers and deferred revenue |
|
|
6,838 |
|
|
|
4,454 |
|
|
Warrant liability - current |
|
|
- |
|
|
|
17 |
|
|
|
Total
current liabilities |
|
|
17,596 |
|
|
|
19,961 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock -- $.001 par value; 250,000,000 shares
authorized; 46,295,969 and 41,862,321 shares issued and outstanding
at October 31, 2013 and 2012, respectively |
|
|
46 |
|
|
|
42 |
|
|
Additional paid-in capital |
|
|
124,148 |
|
|
|
120,755 |
|
|
Accumulated deficit |
|
|
(103,530 |
) |
|
|
(90,888 |
) |
|
Accumulated other comprehensive loss |
|
|
(611 |
) |
|
|
(572 |
) |
|
|
Net
stockholders' equity |
|
|
20,053 |
|
|
|
29,337 |
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
37,649 |
|
|
$ |
49,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Unaudited, in thousands, except share amounts) |
|
|
|
|
|
Three Months Ended October 31 |
|
|
Year Ended October 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
Net revenues |
|
$ |
10,077 |
|
|
$ |
26,562 |
|
|
$ |
47,267 |
|
|
$ |
132,287 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product costs |
|
|
4,694 |
|
|
|
11,155 |
|
|
|
18,625 |
|
|
|
46,718 |
|
|
Software development costs and license fees |
|
|
4,637 |
|
|
|
10,593 |
|
|
|
16,474 |
|
|
|
42,054 |
|
|
|
Total
cost of sales |
|
|
9,331 |
|
|
|
21,748 |
|
|
|
35,099 |
|
|
|
88,772 |
|
Gross profit |
|
|
746 |
|
|
|
4,814 |
|
|
|
12,168 |
|
|
|
43,515 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product research and development |
|
|
652 |
|
|
|
1,894 |
|
|
|
5,542 |
|
|
|
7,784 |
|
|
Selling and marketing |
|
|
1,643 |
|
|
|
3,801 |
|
|
|
7,854 |
|
|
|
20,157 |
|
|
General and administrative |
|
|
2,328 |
|
|
|
1,989 |
|
|
|
9,176 |
|
|
|
10,077 |
|
|
Workforce reduction |
|
|
- |
|
|
|
- |
|
|
|
776 |
|
|
|
- |
|
|
Loss on impairment of capitalized software development
costs and license fees - cancelled games |
|
|
500 |
|
|
|
- |
|
|
|
675 |
|
|
|
1,219 |
|
|
Depreciation and amortization |
|
|
85 |
|
|
|
118 |
|
|
|
381 |
|
|
|
566 |
|
|
|
Total
operating costs and expenses |
|
|
5,208 |
|
|
|
7,802 |
|
|
|
24,404 |
|
|
|
39,803 |
|
Operating (loss) income |
|
|
(4,462 |
) |
|
|
(2,988 |
) |
|
|
(12,236 |
) |
|
|
3,712 |
|
Other expenses (income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing costs |
|
|
118 |
|
|
|
193 |
|
|
|
409 |
|
|
|
958 |
|
|
Change in fair value of warrant liability |
|
|
- |
|
|
|
(346 |
) |
|
|
(17 |
) |
|
|
(1,932 |
) |
(Loss) income before income taxes |
|
|
(4,580 |
) |
|
|
(2,835 |
) |
|
|
(12,628 |
) |
|
|
4,686 |
|
|
Income taxes (benefit) |
|
|
6 |
|
|
|
(106 |
) |
|
|
14 |
|
|
|
73 |
|
Net (loss) income |
|
$ |
(4,586 |
) |
|
$ |
(2,729 |
) |
|
$ |
(12,642 |
) |
|
$ |
4,613 |
|
Net (loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.10 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.12 |
|
|
Diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.11 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,525,507 |
|
|
|
40,440,609 |
|
|
|
41,601,343 |
|
|
|
39,973,248 |
|
|
Diluted |
|
|
44,525,507 |
|
|
|
40,440,609 |
|
|
|
41,601,343 |
|
|
|
40,823,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(Unaudited, in thousands) |
|
|
|
|
|
Year Ended October 31, |
|
|
|
2013 |
|
|
2012 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(12,642 |
) |
|
$ |
4,613 |
|
Adjustments to reconcile net (loss) income to net cash
(used in) provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
381 |
|
|
|
566 |
|
|
Change in fair value of warrant liability |
|
|
(17 |
) |
|
|
(1,932 |
) |
|
Non-cash compensation expense |
|
|
1,416 |
|
|
|
1,686 |
|
|
Provision for price protection and customer
allowances |
|
|
2,993 |
|
|
|
4,324 |
|
|
Amortization of capitalized software development costs
and license fees |
|
|
6,460 |
|
|
|
17,363 |
|
|
Loss on impairment of capitalized software development
costs and license fees |
|
|
675 |
|
|
|
1,219 |
|
|
Impairment of goodwill |
|
|
- |
|
|
|
54 |
|
|
Provision for excess inventory |
|
|
675 |
|
|
|
1,515 |
|
|
Changes in operating assets and liabilities, net of
acquisition: |
|
|
|
|
|
|
|
|
|
|
Due from factor |
|
|
7,374 |
|
|
|
(15,888 |
) |
|
|
Accounts and other receivables |
|
|
2,767 |
|
|
|
(830 |
) |
|
|
Inventory |
|
|
2,228 |
|
|
|
2,328 |
|
|
|
Capitalized software development costs and license
fees |
|
|
(10,971 |
) |
|
|
(9,441 |
) |
|
|
Advance payments for inventory |
|
|
(807 |
) |
|
|
5,678 |
|
|
|
Prepaid expenses and other assets |
|
|
(1,086 |
) |
|
|
844 |
|
|
|
Accounts payable and accrued expenses |
|
|
(6,417 |
) |
|
|
(4,868 |
) |
|
|
Advances from customers and deferred revenue |
|
|
2,384 |
|
|
|
(1,139 |
) |
|
|
|
Net
cash (used in) provided by operating activities |
|
|
(4,587 |
) |
|
|
6,092 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(274 |
) |
|
|
(338 |
) |
Investment in GMS Entertainment Limited |
|
|
(3,500 |
) |
|
|
- |
|
|
|
Net cash used in investing activities |
|
|
(3,774 |
) |
|
|
(338 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Sale of common stock |
|
|
2,000 |
|
|
|
- |
|
Proceeds from exercise of options and warrants |
|
|
- |
|
|
|
9 |
|
Income tax withholding from exercise of options and
warrants |
|
|
(19 |
) |
|
|
(161 |
) |
Borrowings for (repayments of) inventory financing |
|
|
1,764 |
|
|
|
(1,238 |
) |
|
|
Net cash provided by (used in) financing
activities |
|
|
3,745 |
|
|
|
(1,390 |
) |
Effect of exchange rates on cash and cash
equivalents |
|
|
(37 |
) |
|
|
(15 |
) |
Net (decrease) increase in cash and cash
equivalents |
|
|
(4,653 |
) |
|
|
4,349 |
|
Cash and cash equivalents -- beginning of period |
|
|
18,038 |
|
|
|
13,689 |
|
Cash and cash equivalents -- end of period |
|
$ |
13,385 |
|
|
$ |
18,038 |
|
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash paid during the period for interest and financing
costs |
|
$ |
455 |
|
|
$ |
870 |
|
Cash paid during the period for income taxes |
|
$ |
- |
|
|
$ |
591 |
|
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Leased assets |
|
$ |
- |
|
|
$ |
46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAJESCO ENTERTAINMENT COMPANY AND SUBSIDIARY |
|
RECONCILATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
|
(Unaudited, in thousands, except share amounts) |
|
|
|
|
|
Three months ended |
|
|
Year ended |
|
|
|
October 31, |
|
|
October 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
GAAP
operating (loss) income |
|
$ |
(4,462 |
) |
|
$ |
(2,988 |
) |
|
$ |
(12,236 |
) |
|
$ |
3,712 |
|
Non-cash compensation (1) |
|
|
399 |
|
|
|
385 |
|
|
|
1,416 |
|
|
|
1,686 |
|
Severance (2) |
|
|
- |
|
|
|
- |
|
|
|
776 |
|
|
|
- |
|
Non-GAAP operating (loss) income |
|
$ |
(4,063 |
) |
|
$ |
(2,603 |
) |
|
$ |
(10,044 |
) |
|
$ |
5,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
net (loss) income |
|
$ |
(4,586 |
) |
|
$ |
(2,729 |
) |
|
$ |
(12,642 |
) |
|
$ |
4,613 |
|
Non-cash compensation (1) |
|
|
399 |
|
|
|
385 |
|
|
|
1,416 |
|
|
|
1,686 |
|
Severance (2) |
|
|
- |
|
|
|
- |
|
|
|
776 |
|
|
|
- |
|
Change in fair value of warrants (3) |
|
|
- |
|
|
|
(346 |
) |
|
|
(17 |
) |
|
|
(1,932 |
) |
Non-GAAP net (loss) income |
|
$ |
(4,187 |
) |
|
$ |
(2,690 |
) |
|
$ |
(10,467 |
) |
|
$ |
4,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
net (loss) income per diluted share |
|
$ |
(0.10 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.30 |
) |
|
$ |
0.11 |
|
Non-cash compensation (1) |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.04 |
|
Severance (2) |
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
Change in fair value of warrants (3) |
|
|
- |
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
(0.05 |
) |
Non-GAAP net (loss) income per diluted share |
|
$ |
(0.09 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.25 |
) |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in GAAP and Non-GAAP per diluted share amounts |
|
|
44,525,507 |
|
|
|
40,440,609 |
|
|
|
41,601,343 |
|
|
|
40,823,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents expenses recorded for stock compensation expense.
The Company does not consider stock-based compensation charges when
evaluating business performance and management does not consider
stock-based compensation expense in evaluating its short and
long-term operating plans. (2) Represents one time severance costs
related to a workforce reduction. During January 2013, Company
management initiated a plan of restructuring to better align its
workforce to its revised operating plans. As part of the plan, the
Company reduced its personnel count by approximately 40 employees.
(3) Represents the change in the fair value of warrants classified
as a liability. The fair value of the warrants is calculated at
each balance sheet date with a corresponding charge or credit to
earnings for the amount of the change in fair value.
For additional information, please contact: Company Contact:
Michael Vesey Chief Financial Officer 732.476.1956 Investor
Relations Contact: Stephanie Prince/Jody Burfening LHA 212.838.3777
sprince@lhai.com
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