Creative Realities, Inc. (“Creative Realities,” “CRI,” or the
“Company”) (NASDAQ: CREX, CREXW), a leading provider of digital
signage and media solutions, announced two material updates for
shareholders ahead of its anticipated earnings call scheduled for
Thursday, March 30, 2023 at 9:00am EST.
1. Status Of Special Committee’s
Consideration of Offer from Pegasus Capital Advisors, L.P.
As previously reported, on February 2, 2023, the
Company received a proposal from Pegasus Capital Advisors, L.P., on
behalf of itself and certain of its affiliates (collectively,
“Pegasus”), to acquire all of the outstanding shares of common
stock of the Company that are not owned by Pegasus for a purchase
price of $0.83 per share (or, as a result of our recent reverse
stock split, $2.49 per share) in cash. The Special Committee of the
Company’s Board of Directors (the “Special Committee”) has
concluded that such proposal undervalues the Company based on the
Company’s existing business and current and future prospects, and
is not in the best interests of the Company’s existing
shareholders.
The Special Committee advised Pegasus that it
has rejected the proposal. The Special Committee remains available
to evaluate and respond to any revised proposal. There can be no
assurance that any revised proposal or definitive offer will be
made or accepted, that any agreement will be executed, or that any
transaction will be consummated.
2. Confirmation of 2022 Results; Intention
to Increase Revenue Guidance for 2023
CRI is scheduled to release its financial
results for the year ended December 31, 2022 on Thursday, March 30,
2023. Interested parties can register for the Company’s planned
earnings call at bit.ly/CRIearnings2022Q4. Once registered,
participants can use the weblink provided in the registration email
to participate in the live webcast.
In conjunction with the call to review those
results, CRI intends to discuss the following:
- Confirm the Company exceeded its
previously published target of $43 million of revenue for the
year-ended December 31, 2022;
- Provide updates on the initial
feedback and success in the market of the Company’s digital
drive-thru product; and
- Increase the Company’s previously
published revenue guidance for the full year 2023.
“There have been a number of developments that
represent significant new and additional value-creation prospects
for CRI, with more to come,” stated Mr. Mills. “The Company is
committed to keeping investors informed of the progress of
management’s value creation efforts.” He continued, “Backlog
associated with current client engagements provides additional
visibility into the timing and quantum of revenue and earnings
growth to support our financial guidance even beyond that provided
with a specific horizon. We look forwarding to providing this
update on Thursday and hope you will join us.”
About Creative Realities,
Inc.Creative Realities helps clients use place-based
digital media to achieve business objectives such as increased
revenue, enhanced customer experiences, and improved productivity.
The company designs, develops and deploys digital signage
experiences for enterprise-level networks, and is actively
providing recurring SaaS and support services across diverse
vertical markets, including but not limited to retail, automotive,
digital-out-of-home (DOOH) advertising networks, convenience
stores, foodservice/QSR, gaming, theater, and stadium venues.
With the Company’s 2022 acquisition of Reflect
Systems, Inc., a leading provider of digital signage software
platforms, the Company has extended its product and service
offering to accelerate growth in SaaS revenue. While Reflect
provided a broad range of digital signage solutions, the company’s
flagship products are the market-leading ReflectView digital
signage platform and Reflect AdLogic ad management platform.
ReflectView is the industry’s most comprehensive, scalable,
enterprise-grade digital signage platform, powering enterprise
customer networks. Meanwhile, Reflect AdLogic has become the
benchmark for digital signage powered ad networks, delivering
nearly 50 million ads daily. The acquisition of Reflect also
brought to the business a media sales division with the expertise
and relationships to help any digital signage venue owner develop
and execute a monetization plan for their network.
The combined company has operations across North
America with active installations in more than 10 countries.
Cautionary Note on Forward-Looking
Statements This press release contains "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995, and includes, among other things, discussions of our
business strategies, product releases, future operations and
capital resources. Words such as "estimates," "projected,"
"expects," "anticipates," "forecasts," "plans," "intends,"
"believes," "seeks," "may," "will," "should," "future," "propose"
and variations of these words or similar expressions (or the
negative versions of such words or expressions) are intended to
identify forward-looking statements. Forward-looking statements are
not guarantees of future performance, conditions or results. They
are based on the opinions, estimates and beliefs of management as
of the date such statements are made, and they are subject to known
and unknown risks, uncertainties, assumptions and other factors,
many of which are outside of our control, that may cause the actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Some of these risks are discussed in
the “Risk Factors” section contained in Item 1A of our Annual
Report on Form 10-K for the year ended December 31, 2021 and the
Company’s subsequent filings with the U.S. Securities and Exchange
Commission. Important factors, among others, that may affect actual
results or outcomes include: our ability to effectively integrate
Reflect’s business operations, our strategy for customer retention,
growth, product development, market position, financial results and
reserves, our ability to execute on our business plan, our ability
to retain key personnel, potential litigation, supply chain
shortages, and general economic and market conditions impacting
demand for our products and services, including those as a result
of the COVID-19 pandemic. Readers should not place undue reliance
upon any forward-looking statements. We assume no obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
ContactsMedia InquiriesChristina
Davieslrudd@ideagrove.com
Investor Relationsir@cri.comhttps://investors.cri.com
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