- TV Essentials(TM) Now Tracking Anonymous Linear Data from 9
Million Set Top Boxes - PORTLAND, Ore., Feb. 3
/PRNewswire-FirstCall/ -- Rentrak Corp. (NASDAQ: RENT) today
announced financial results for its fiscal third quarter ended
December 31, 2008. Consolidated revenues were $23.0 million in the
third quarter of fiscal 2009, compared with $23.9 million in the
comparable prior year period. -- Revenues in the company's Advanced
Media Information (AMI) segment rose 20.1 percent to $3.2 million
from $2.7 million for the third quarter of fiscal 2008. The
increase primarily reflects incremental revenues generated from new
and existing customers of the company's Essentials Suite(TM) of
media measurement services. The AMI segment grew to approximately
14 percent of consolidated revenues and contributed approximately
33 percent of consolidated gross margin dollars in the third
quarter of fiscal 2009. -- Revenues in the company's
Pay-Per-Transaction(R) (PPT) segment were $19.7 million, compared
with $21.2 million in last year's comparable quarter, primarily the
result of fewer rental transactions on non-guaranteed titles.
Selling and administrative expenses were $6.7 million, or 29.4
percent of revenues, in the third quarter of fiscal 2009, compared
with $6.3 million, or 26.5 percent of revenues, for last year's
fiscal third quarter. The increase primarily reflects Rentrak's
continued focus on the development and launch of its TV
Essentials(TM) service. Operating income was $475,000 for the third
quarter of fiscal 2009, versus $619,000 in the same period last
year. Net income totaled $1.2 million, or $0.11 per diluted share,
for the third quarter of fiscal 2009, including a tax benefit of
$375,000 related to available federal Research and Experimentation
credits, earnings on investments in tax exempt municipal bonds and
favorable 2008 tax return adjustments. Net income was $547,000, or
$0.05 per diluted share, for the third quarter of fiscal 2008.
Rentrak's cash, cash equivalents and marketable securities balance
grew to $34.3 million at December 31, 2008, from $31.8 million at
March 31, 2008. Through the first nine months of fiscal 2009, the
company generated $6.1 million in cash from operating activities,
compared with $3.1 million in cash from operating activities in the
prior-year nine month period. Recent Operating Highlights --
Rentrak signed a milestone agreement with DISH Network(R), the
nation's third largest network operator and Rentrak's first
satellite operator customer, and the leader in digital television,
to deliver anonymous click-stream television data from millions of
DISH set top boxes, including second-by-second television
programming and advertising information; -- Rentrak entered into a
multi-year agreement to provide NBC Universal (NBCU) with the
ability to view and analyze anonymous mobile data for the
consumption of video and other downloads, text messaging, games,
and more, in one comprehensive application through the first of its
kind Mobile Essentials(TM) measurement service; -- Furthering its
commitment to providing best-in-class, cross-platform media
measurement services, Rentrak expects to commercially launch its
Digital Download Essentials(TM) service, which collects, processes,
audits and reports on paid entertainment content delivered over the
Internet, in the very near future. "Our third quarter results
remained stable, although we were not immune to the challenges
presented by a difficult economic environment," said Rentrak
Chairman and Chief Executive Officer, Paul Rosenbaum. "Given the
current economy, we are more focused than ever on stringent cost
management and are taking care to insure we are running our
business as efficiently possible. These initiatives, combined with
our healthy balance sheet, should allow for maximum flexibility and
should position Rentrak for successful long-term growth and
prosperity." Rosenbaum continued, "Over the last several months we
have produced several important new and expanded relationships,
including for our pioneering TV Essentials service. Just 18 months
ago we began by processing anonymous linear data from 20,000 set
top boxes. Today, we are tracking four hundred fifty times that
amount of data from 9 million linear set top boxes. Content
providers, networks, advertisers and advertising agencies are
requiring the type of granular data that only Rentrak can provide
and by effectively meeting the needs of a rapidly evolving
industry, we are poised to become the world's most trusted
independent provider of cross-screen media measurement." Conference
Call Rentrak has scheduled a conference call for 2:00 p.m. (PT)
February 3, 2009 to discuss the company's third quarter financial
performance. Shareowners, members of the media and other interested
parties may participate in the call by dialing 866-383-7998 from
the U.S. or Canada, or 617-597-5329 from international locations,
passcode 68767292. This call is being webcast and can be accessed
at Rentrak's web site at http://www.rentrak.com/ where it will be
archived through February 3, 2010. An audio replay of the
conference call is available through midnight February 10, 2009 by
dialing 888-286-8010 from the U.S. or Canada, or 617-801-6888 from
international locations, passcode 59281727. About Rentrak
Corporation Rentrak Corporation, based in Portland, Oregon, is an
information management company serving clients primarily in the
media, entertainment, retail and advertising. The company's
near-term focus centers on its Entertainment Essentials(TM) suite
of services that is redefining measurement in the digital media
era. Available by subscription, each Entertainment Essentials
service provides customers with near-real-time, actionable insight
into performance of content distributed over a wide variety of
modern media technologies allowing executives to analyze detailed
industry-wide and title-specific data to make decisions that
enhance the bottom line and provide competitive advantage. For
further information, please visit Rentrak's corporate Web site at
http://www.rentrak.com/. Safe Harbor Statement When used in this
discussion, the words "anticipates," "expects," "intends" and
similar expressions are intended to identify forward-looking
statements. Such statements relate to, among other things, the
company's ability to successfully manage expenses and run its
business as efficiently as possible; the ability to generate
long-term growth and prosperity; the ability for Rentrak to become
the world's most trusted independent provider of cross-screen media
measurement; the company's development efforts pertaining to new
media measurement services and the timing of the commercial launch
of those services; and anticipated customer acceptance of the
company's new media measurement services; and are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those projected. Factors that could affect
Rentrak's financial results include customer demand for movies in
various media formats subject to company guarantees, the company's
ability to attract new revenue-sharing customers and retain
existing customers, the company's success in maintaining its
relationships with studios and other product suppliers, the
company's ability to successfully develop and market new services
to create new revenue streams, and Rentrak's customers continuing
to comply with the terms of their agreements. Additional factors
that could affect Rentrak's financial results are described in
Rentrak's March 31, 2008 annual report on Form 10-K and subsequent
quarterly reports filed with the Securities and Exchange
Commission. Results of operations in any past period should not be
considered indicative of the results to be expected for future
periods. CONTACT: Investors PondelWilkinson Inc. Laurie Berman
310-279-5962 (Financial Tables Follow) Rentrak Corporation and
Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In
thousands, except per share amounts) December 31, March 31, 2008
2008 ----------- ----------- Assets Current Assets: Cash and cash
equivalents $4,835 $26,862 Marketable securities 29,496 4,986
Accounts receivable, net of allowances for doubtful accounts of
$643 and $572 18,110 15,032 Note receivable 436 396 Advances to
program suppliers, net of program supplier reserves of $14 and $17
82 95 Taxes receivable and prepaid taxes 2,210 1,455 Deferred
income tax assets 103 253 Other current assets 735 1,296
----------- ----------- Total Current Assets 56,007 50,375 Property
and equipment, net of accumulated depreciation of $8,978 and $7,731
6,337 6,145 Other assets 566 629 ----------- ----------- Total
Assets $62,910 $57,149 =========== =========== Liabilities and
Stockholders' Equity Current Liabilities: Accounts payable $9,619
$6,768 Accrued liabilities 520 671 Deferred rent, current portion
90 90 Accrued compensation 1,094 930 Deferred revenue 1,566 873
----------- ----------- Total Current Liabilities 12,889 9,332
Deferred rent, long-term portion 944 989 Deferred income tax
liabilities 676 226 Taxes payable, long-term 2,189 1,965 Notes
payable 748 965 ----------- ----------- Total Liabilities 17,446
13,477 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: 10,507 and 10,605 11 11
Capital in excess of par value 46,420 47,189 Accumulated other
comprehensive income (loss) (385) 170 Accumulated deficit (582)
(3,698) ----------- ----------- Total Stockholders' Equity 45,464
43,672 ----------- ----------- Total Liabilities and Stockholders'
Equity $62,910 $57,149 =========== =========== Rentrak Corporation
and Subsidiaries Condensed Consolidated Income Statements
(Unaudited) (In thousands, except per share amounts) For the Three
For the Nine Months Ended Months Ended December 31, December 31,
------------------ ------------------ 2008 2007 2008 2007 -------
------- ------- ------- Revenue $22,973 $23,875 $72,653 $70,890
Cost of sales 15,752 16,937 48,915 47,827 ------- ------- -------
------- Gross margin 7,221 6,938 23,738 23,063 Selling and
administrative 6,746 6,319 20,303 19,036 ------- ------- -------
------- Income from operations 475 619 3,435 4,027 Other income
(expense): Interest income 388 399 764 1,216 Interest expense - (3)
(2) (7) ------- ------- ------- ------- 388 396 762 1,209 -------
------- ------- ------- Income before income taxes 863 1,015 4,197
5,236 Provision (benefit) for income taxes (375) 468 1,081 2,331
------- ------- ------- ------- Net income $1,238 $547 $3,116
$2,905 ======= ======= ======= ======= Basic net income per share
$0.12 $0.05 $0.29 $0.27 ======= ======= ======= ======= Diluted net
income per share $0.11 $0.05 $0.28 $0.26 ======= ======= =======
======= Shares used in per share calculations: Basic 10,538 10,757
10,587 10,747 ======= ======= ======= ======= Diluted 10,994 11,280
11,104 11,263 ======= ======= ======= ======= DATASOURCE: Rentrak
Corporation CONTACT: Investors, Laurie Berman of PondelWilkinson
Inc., +1-310-279-5962, , for Rentrak Corporation Web Site:
http://www.rentrak.com/
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