RMG Networks Reports Fourth Quarter and Full Year 2013 Results
Q4 Pro Forma(1) Revenues Increase Sequentially 37% From Q3; Pro
Forma Gross Margins Improve to 47%; Demonstrated Early Positive
Results From Growth Investments; Foundation in Place to Achieve
Expected Accelerated Revenue and Adjusted EBITDA Generation in
2014
DALLAS, TX--(Marketwired - Mar 31, 2014) - RMG Networks Holding
Corporation (NASDAQ: RMGN)
Highlights
- Fourth quarter revenue1 of $22.5 million; full year revenue1 of
$72.9 million, in line with outlook
- Early sales momentum in SE Asia and China markets, based on
2013 investments
- Continued investment in sales generating resources with 16
additional new sales hires in Q4, totaling approximately 50 new
sales hires in 2013
- Launched additional solutions for digital internal
communications and visual supply chain
- Further reduced debt to $8 million at year end; amended credit
facility for operational flexibility
- Launched previously announced RMG Office Network and,
subsequent to quarter end, announced two new advertising
partnerships with Etihad Airways and OnAir, significantly
increasing media inventory
RMG Networks Holding Corporation (NASDAQ: RMGN), or RMG
Networks, today announced its financial results for the fourth
quarter and year ended December 31, 2013.
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's fourth
quarter was a very strong finish to a complex year of formation,
integration and investment. We achieved revenue and gross margin
increases in part because of our growth initiatives, proving out
our investment strategy for the business. During the second half of
2013, we acted to extend our market leadership through an
aggressive approximately $8 to 9 million investment
program which reduced near-term profitability but enabled us
to construct a platform of personnel, products and systems on which
to drive what we believe will be significant current and future
year growth. We began to derive early tangible results from these
revenue-generating investments in Q4 by earning our first revenues
from the SE Asia and China regions while growing our customer base
in existing markets. We also further validated our unique
proposition offering comprehensive place-based video network
solutions globally with the launch of our RMG Office Network and
winning several sizable geographic cross-sell contracts from
existing Enterprise customers. As a further example of our
momentum, Q4 saw an almost seven times increase in the volume of
large-sized contract wins versus Q4 2012."
"The positive momentum from these investments is progressing and
we will continue to support them in 2014," Mr. McGuire continued.
"This year, we have already expanded our market-leading airline
media business into international markets and secured our first
EMEA advertising partnerships, selling advertising for Etihad
Airways, the national airline of the U.A.E, and OnAir, the global
provider of in-flight connectivity. Our Enterprise business
launched our comprehensive visual supply chain offering and will
continue to launch innovative new products throughout 2014. We
expect revenue growth and EBITDA generation to begin to accelerate
at mid-year 2014 as our recently-expanded sales force begins to
reach traditional productivity levels. We remain focused on
executing on our mission to be the global leader in intelligent
visual communications."
Fourth 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, fourth quarter 2013 results as-reported are not
comparable with the Predecessor Company's results for fourth
quarter 2012. In addition, our "as-reported" results include
certain one-time items and the effects of purchase accounting
conventions, both of which we do not believe reflect the underlying
performance of our business. Therefore, for ease of comparison, we
provide, in the following results, pro forma combined adjusted
results for the 2013 and 2012 fourth quarters as if the companies
had existed as a combined entity for the relevant periods and
adjusting for the items described above.
Pro Forma Combined
Adjusted Results Fourth Quarter Revenue. Total
fourth quarter 2013 revenues were $22.5 million, an increase of 6%
from $21.2 million of pro forma combined revenues in the fourth
quarter of 2012.
- Media revenue, comprised primarily of advertising revenue, of
$6.4 million increased 6% from $6.0 million in fourth quarter 2012
primarily due to the sale of a greater volume of advertising
inventory.
- Enterprise revenue of $16.1 million increased 6% from $15.2
million in fourth quarter 2012 primarily due to an increase in
professional services revenue.
On a sequential basis, fourth quarter revenues increased 37%
from $16.4 million in the third quarter of 2013.
- Media revenue, comprised primarily of advertising revenue,
increased 48% to $6.4 million from $4.3 million in the third
quarter due to improved sales force productivity and as a result of
normal advertising expenditure seasonality, which resulted in
sequential gross margin improvement to 36% from 22%.
- Enterprise revenues increased 33% to $16.1 million from $12.1
million in the third quarter, due to additional sales resources and
increased sales force productivity; gross margin was comparable in
both periods.
Fourth Quarter Operating loss and Adjusted EBITDA. Pro
forma operating loss was $3.9 million compared to pro forma
operating income of $2.4 million in the fourth quarter of 2012.
This increased loss is attributable to lower advertising gross
margin as a percentage of sales in the current year period, higher
operational expenses in the current year period as the company
invests in new sales and marketing staff to support growth
initiatives and due to approximately $2.6 million of additional
depreciation, amortization and stock-based compensation
expense.
Adjusted EBITDA loss was $0.5 million compared to profit of $3.4
million in the fourth quarter of 2012, decreasing for the reasons
described above.
On a sequential basis, Adjusted EBITDA loss improved in the
fourth quarter from a loss of $1.4 million in the third quarter
primarily due to higher revenues and improved gross margins.
Full Year. Total 2013 pro forma revenues were $72.9
million, an increase of 5% from pro forma revenues of $69.3 million
in 2012. Pro forma operating loss was $15.4 million compared to pro
forma profit of $0.7 million in 2012. Pro forma adjusted EBITDA
loss was $1.9 million compared to pro forma profit of $9.2 million
in 2012.
Reported
Results Fourth Quarter. Total reported revenue
for the quarter ended December 31, 2013 was $19.6 million; total
revenue for the predecessor company for the quarter ended January
31, 2013 was $15.2 million.
Operating loss for the quarter ended December 31, 2013 was $6.7
million; operating income for the predecessor company for the
quarter ended January 31, 2012 was $2.7 million.
Full Year. Total revenue for the successor company for
the period from April 20, 2013 through December 31, 2013 was $50.3
million compared to revenue from the predecessor company for the
year ended January 31, 2013 of $42.5 million.
Operating loss for the successor company for the period from
April 20, 2013 through December 31, 2013 was $14.6 million compared
to operating income from the predecessor company for the year ended
January 31, 2013 of $5.4 million.
Conference Call
Management will host a conference call to discuss these results
today, Monday, March 31, 2014 at 9:00 a.m. ET. To access the call,
please dial 866-700-5192 (toll free) or 617-213-8833 and passcode #
99772963. 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's 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: 96018540) from 1:00 p.m. ET on March 31, 2014 until
midnight ET on April 3, 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 Pro forma or pro forma combined revenues
|
|
|
RMG Networks Holding Corporation |
Consolidated Balance Sheets |
December 31, 2013and January 31, 2013 |
|
|
|
Successor Company December 31, 2013 |
|
|
Predecessor Company January 31, 2013 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
8,235,566 |
|
|
$ |
10,203,169 |
|
|
Accounts receivable, net |
|
|
22,731,678 |
|
|
|
9,061,229 |
|
|
Inventory, net |
|
|
4,633,213 |
|
|
|
2,988,766 |
|
|
Deferred tax assets |
|
|
63,617 |
|
|
|
372,618 |
|
|
Other current assets |
|
|
2,224,547 |
|
|
|
686,099 |
|
Total current assets |
|
|
37,888,621 |
|
|
|
23,311,881 |
|
Property and equipment, net |
|
|
3,548,985 |
|
|
|
963,069 |
|
Intangible assets, net |
|
|
38,782,000 |
|
|
|
2,584,443 |
|
Goodwill |
|
|
28,673,156 |
|
|
|
10,972,547 |
|
Loan origination fees |
|
|
971,726 |
|
|
|
- |
|
Other assets |
|
|
496,879 |
|
|
|
112,054 |
|
Total assets |
|
$ |
110,361,367 |
|
|
$ |
37,943,994 |
|
Liabilities and Stockholders' equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
8,009,380 |
|
|
$ |
4,150,730 |
|
|
Revenue share liabilities |
|
|
2,595,614 |
|
|
|
- |
|
|
Accrued liabilities |
|
|
4,423,896 |
|
|
|
1,925,901 |
|
|
Deferred revenue |
|
|
10,074,420 |
|
|
|
10,438,487 |
|
|
Capital leases and other |
|
|
117,710 |
|
|
|
- |
|
Total current liabilities |
|
|
25,221,020 |
|
|
|
16,515,118 |
|
Notes payable - non current |
|
|
8,000,000 |
|
|
|
- |
|
Warrant liability |
|
|
4,573,123 |
|
|
|
- |
|
Deferred revenue - non current |
|
|
990,989 |
|
|
|
1,073,223 |
|
Deferred tax liabilities |
|
|
6,430,853 |
|
|
|
704,496 |
|
Capital leases and other |
|
|
392,558 |
|
|
|
- |
|
Total liabilities |
|
|
45,608,543 |
|
|
|
18,292,837 |
|
Commitment and Contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
Common stock, $.0001 par value, (250,000,000 shares
authorized;11,920,583 shares issued and outstanding at December 31,
2013) |
|
|
1,192 |
|
|
|
- |
|
|
Common stock - Class L, $0.01 par value, (1,000,000 shares
authorized, issued and outstanding at January 31, 2013) |
|
|
- |
|
|
|
10,000 |
|
|
Common stock - Class A Non-voting, $0.01 par value, (200,000 shares
authorized, 68,889 shares issued and outstanding at January 31,
2013) |
|
|
- |
|
|
|
689 |
|
|
Additional paid-in capital |
|
|
77,452,317 |
|
|
|
10,149,643 |
|
|
Accumulated comprehensive income (loss) |
|
|
299,618 |
|
|
|
(38,940 |
) |
|
Notes receivable - restricted stock |
|
|
- |
|
|
|
(207,025 |
) |
|
Retained earnings (accumulated deficit) |
|
|
(13,000,303 |
) |
|
|
9,736,790 |
|
Total stockholders' equity |
|
|
64,752,824 |
|
|
|
19,651,157 |
|
Total liabilities and stockholders' equity |
|
$ |
110,361,367 |
|
|
$ |
37,943,994 |
|
|
|
|
RMG Networks Holding Corporation |
Consolidated Statements of Comprehensive Income /
(Loss) (Unaudited) |
|
|
|
Successor Company April 20, 2013 Through December 31,
2013 |
|
|
Predecessor Company February 1, 2013 Through April 19,
2013 |
|
|
Predecessor Company February 1, 2012 Through January
31, 2013 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
$ |
15,963,107 |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
Products |
|
|
18,488,304 |
|
|
|
2,239,236 |
|
|
|
19,185,359 |
|
|
|
Maintenance and content services |
|
|
7,537,024 |
|
|
|
3,594,520 |
|
|
|
17,065,483 |
|
|
|
Professional services |
|
|
8,289,212 |
|
|
|
1,323,559 |
|
|
|
6,277,549 |
|
Total Revenue |
|
|
50,277,647 |
|
|
|
7,157,315 |
|
|
|
42,528,391 |
|
Cost of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising |
|
|
10,718,458 |
|
|
|
- |
|
|
|
- |
|
|
|
Products |
|
|
11,974,491 |
|
|
|
1,498,135 |
|
|
|
11,581,070 |
|
|
|
Maintenance and content services |
|
|
1,759,866 |
|
|
|
611,692 |
|
|
|
2,507,840 |
|
|
|
Professional services |
|
|
5,232,781 |
|
|
|
861,640 |
|
|
|
4,352,611 |
|
Total Cost of Revenue |
|
|
29,685,596 |
|
|
|
2,971,467 |
|
|
|
18,441,521 |
|
Gross Profit |
|
|
20,592,051 |
|
|
|
4,185,848 |
|
|
|
24,086,870 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
12,681,559 |
|
|
|
1,729,871 |
|
|
|
7,760,739 |
|
|
|
General and administrative |
|
|
12,871,283 |
|
|
|
1,739,348 |
|
|
|
7,313,398 |
|
|
|
Research and development |
|
|
2,623,791 |
|
|
|
512,985 |
|
|
|
2,103,078 |
|
|
|
Acquisition expenses |
|
|
2,095,250 |
|
|
|
3,143,251 |
|
|
|
380,000 |
|
|
|
Depreciation and amortization |
|
|
4,956,622 |
|
|
|
140,293 |
|
|
|
1,111,948 |
|
Total operating expenses |
|
|
35,228,505 |
|
|
|
7,265,748 |
|
|
|
18,669,163 |
|
Operating income (loss) |
|
|
(14,636,454 |
) |
|
|
(3,079,900 |
) |
|
|
5,417,707 |
|
Other Income (Expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Warrant liability income charge |
|
|
1,960,211 |
|
|
|
- |
|
|
|
- |
|
|
Interest expense and other - net |
|
|
(3,327,148 |
) |
|
|
(14,553 |
) |
|
|
(66,467 |
) |
Income (loss) before income taxes |
|
|
(16,003,391 |
) |
|
|
(3,094,453 |
) |
|
|
5,351,240 |
|
Income tax expense (benefit) |
|
|
(3,003,088 |
) |
|
|
(540,897 |
) |
|
|
1,860,190 |
|
Net income (loss) |
|
|
(13,000,303 |
) |
|
|
(2,553,556 |
) |
|
|
3,491,050 |
|
Other comprehensive income - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments |
|
|
299,618 |
|
|
|
(121,144 |
) |
|
|
2,187 |
|
Total comprehensive income (loss) |
|
$ |
(12,700,685 |
) |
|
$ |
(2,674,700 |
) |
|
$ |
3,493,237 |
|
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income (loss) per share of Common
Stock |
|
$ |
(1.40 |
) |
|
|
- |
|
|
|
- |
|
Basic and diluted net income (loss) per share of Class
L Common Stock |
|
|
|
|
|
$ |
(2.55 |
) |
|
$ |
3.49 |
|
|
|
Weighted average shares used in computing basic and diluted net
income (loss) per share of Common Stock |
|
|
9,270,466 |
|
|
|
- |
|
|
|
- |
|
|
|
Weighted average shares used in computing basic and diluted net
income (loss) per share of Class LCommon Stock |
|
|
- |
|
|
|
1,000,000 |
|
|
|
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 |
|
|
|
82,778 |
|
|
|
|
RMG Networks Holding Corporation |
Pro-Forma Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter |
|
Full Year |
|
|
2013 |
|
|
2012 |
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Revenues - |
|
|
|
|
|
|
|
|
|
|
Advertising |
|
6,397,833 |
|
|
6,010,244 |
|
23,217,226 |
|
|
21,635,113 |
Product sales |
|
7,958,396 |
|
|
8,219,234 |
|
22,128,850 |
|
|
19,543,881 |
Maintenance and contect services |
|
4,293,732 |
|
|
4,451,155 |
|
16,603,342 |
|
|
17,305,628 |
Professional services |
|
3,856,565 |
|
|
2,565,932 |
|
10,923,217 |
|
|
10,832,302 |
|
|
|
|
|
|
|
Total |
|
22,506,526 |
|
|
21,246,565 |
|
72,872,635 |
|
|
69,316,924 |
|
|
|
|
|
|
|
|
|
|
|
Cost of Revenues |
|
11,999,003 |
|
|
10,887,128 |
|
38,667,085 |
|
|
33,173,716 |
|
|
|
|
|
|
|
|
|
|
|
Gros Profit |
|
10,507,523 |
|
|
10,359,437 |
|
34,205,550 |
|
|
36,143,208 |
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses |
|
14,370,807 |
|
|
7,952,316 |
|
49,591,485 |
|
|
35,408,916 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(3,863,284 |
) |
|
2,407,121 |
|
(15,385,935 |
) |
|
734,292 |
|
|
|
RMG Networks Holding Corporation |
Consolidated Statements of Cash Flows |
For The Year Ended December 31, 2013 and January 31,
2013 (Unaudited) |
|
|
|
Successor Company April 20, 2013 Through December 31,
2013 |
|
|
Predecessor Company February 1, 2013 Through April 19,
2013 |
|
|
Predecessor Company February 1, 2012 Through January
31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(13,000,303 |
) |
|
$ |
(2,553,556 |
) |
|
$ |
3,491,050 |
|
Adjustments to reconcile net income (loss) to net cash
provided by (used in)operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Change in warrant liability |
|
|
(1,960,211 |
) |
|
|
- |
|
|
|
- |
|
Stock-based compensation |
|
|
1,876,122 |
|
|
|
- |
|
|
|
- |
|
Loan origination fees |
|
|
829,324 |
|
|
|
- |
|
|
|
- |
|
Non-cash consulting expense |
|
|
175,250 |
|
|
|
- |
|
|
|
- |
|
Non-cash interest expense |
|
|
135,000 |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
4,956,622 |
|
|
|
140,293 |
|
|
|
1,111,948 |
|
Deferred tax (benefit) |
|
|
(3,059,732 |
) |
|
|
(12,294 |
) |
|
|
64,908 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(11,226,354 |
) |
|
|
2,846,332 |
|
|
|
(442,329 |
) |
|
|
Inventory |
|
|
(1,155,725 |
) |
|
|
(488,722 |
) |
|
|
607,540 |
|
|
|
Other current assets |
|
|
(650,241 |
) |
|
|
(154,529 |
) |
|
|
109,977 |
|
|
|
Other assets, net |
|
|
94,802 |
|
|
|
12,572 |
|
|
|
96,444 |
|
|
|
Accounts payable |
|
|
4,618,337 |
|
|
|
(2,978,808 |
) |
|
|
1,684,425 |
|
|
|
Accrued liabilities |
|
|
184,623 |
|
|
|
(767,991 |
) |
|
|
(447,933 |
) |
|
|
Deferred revenue |
|
|
5,165,359 |
|
|
|
(372,579 |
) |
|
|
686,801 |
|
Net cash provided by (used in) operating
activities |
|
|
(13,017,127 |
) |
|
|
(4,329,282 |
) |
|
|
6,962,831 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of Symon Holdings Corporation |
|
|
(209,079 |
) |
|
|
- |
|
|
|
- |
|
Purchases of property and equipment |
|
|
(2,643,574 |
) |
|
|
(86,470 |
) |
|
|
(575,106 |
) |
Net cash provided by (used in) investing
activities |
|
|
(2,852,653 |
) |
|
|
(86,470 |
) |
|
|
(575,106 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt |
|
|
3,647,863 |
|
|
|
- |
|
|
|
- |
|
Repayments of debt |
|
|
(29,782,863 |
) |
|
|
- |
|
|
|
- |
|
Proceeds from sale of stock |
|
|
39,390,600 |
|
|
|
- |
|
|
|
- |
|
Expenses related to sale of stock |
|
|
(274,815 |
) |
|
|
- |
|
|
|
- |
|
Net cash provided by (used in) financing
activities |
|
|
12,980,785 |
|
|
|
- |
|
|
|
- |
|
Effect of exchange rate changes on cash |
|
|
299,618 |
|
|
|
(121,144 |
) |
|
|
(21,247 |
) |
Net increase (decrease) in cash and cash
equivalents |
|
|
(2,589,377 |
) |
|
|
(4,536,896 |
) |
|
|
6,366,478 |
|
Cash and cash equivalents, beginning of period |
|
|
10,824,943 |
|
|
|
10,203,169 |
|
|
|
3,836,691 |
|
Cash and cash equivalents, end of period |
|
$ |
8,235,566 |
|
|
$ |
5,666,273 |
|
|
$ |
10,203,169 |
|
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
|
2,081,529 |
|
|
$ |
2,053 |
|
|
$ |
19,791 |
|
|
|
Cash paid during the period for income taxes |
|
$ |
- |
|
|
$ |
150,000 |
|
|
$ |
2,061,735 |
|
|
|
|
RMG Networks Holding Corporation |
Non-GAAP Reconciliations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income (Loss) to
Adjusted EBITDA - |
|
|
|
|
Fourth Quarter |
|
Full Year |
|
|
2013 |
|
|
2012 |
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
(6,725,013 |
) |
|
2,407,121 |
|
(19,785,414 |
) |
|
734,292 |
Add: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,985,002 |
|
|
612,677 |
|
5,822,067 |
|
|
4,446,041 |
Acquisition expenses |
|
100,000 |
|
|
308,017 |
|
5,807,518 |
|
|
660,000 |
Stock-based compensation |
|
1,318,481 |
|
|
100,065 |
|
1,876,122 |
|
|
402,565 |
Impairment of goodwill and intangibles |
|
0 |
|
|
0 |
|
0 |
|
|
2,915,420 |
Revenues that would have been recognized in the period
had the balance in deferred revenue at the acquisition date notbeen
required to be adjusted to market value at the acquisition date in
accordance with GAAP purchase accounting guidelines |
|
2,861,729 |
|
|
0 |
|
4,399,479 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(459,801 |
) |
|
3,427,880 |
|
(1,880,228 |
) |
|
9,158,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: For RMG Networks Holding Corporation Investor
Carolyn M. Capaccio 212-838-3777 Email Contact or
Media TallGrass Public Relations Nicole Plesec
605-275-4075 Email Contact
Rmg Networks Holding Corp. (delisted) (NASDAQ:RMGN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Rmg Networks Holding Corp. (delisted) (NASDAQ:RMGN)
Historical Stock Chart
From Jul 2023 to Jul 2024