Current Report Filing (8-k)
05 August 2015 - 3:45AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 4, 2015
NEULION, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
000-53620
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98-0469479
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(Commission File Number)
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(IRS Employer Identification No.)
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1600 Old Country Road, Plainview, NY
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11803
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(Address of Principal Executive Offices)
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(Zip Code)
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(516) 622-8300
(Registrant’s Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 7.01 Regulation FD Disclosure.
Representatives from NeuLion, Inc. (the “Company”) held a quarterly earnings summary call in Plainview, New York on August 4, 2015. A copy of the materials used by the Company on the call is filed herewith as Exhibit 99.1 and will be posted to the Investor Relations page of the Company’s website. Exhibit 99.1 is incorporated herein by reference.
Representatives from the Company participated in the Needham Interconnect Conference in New York, New York on August 4, 2015. Copies of the materials used by the Company to make a presentation and in one-on-one discussions at the conference are filed herewith as Exhibits 99.2 and 99.3 and will be posted to the Investor Relations page of the Company’s website. Exhibits 99.2 and 99.3 are incorporated herein by reference.
The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “1934 Act”), or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the 1934 Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed herewith:
Exhibit Number
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Description
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99.1
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Earnings Summary Presentation
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99.2
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Investor Presentation
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99.3
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Investor Factsheet
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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NEULION, INC.
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Date: August 4, 2015
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By:
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/s/ Roy E. Reichbach
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Name:
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Roy E. Reichbach
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Title:
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General Counsel and Corporate Secretary
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EXHIBIT LIST
Exhibit Number
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Description
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99.1
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Earnings Summary Presentation
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99.2
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Investor Presentation
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99.3
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Investor Factsheet
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Exhibit 99.1
2Q 2015 Conference Call August 4, 2015 NeuLion empowers the world's top players to deliver and monetize next generation video experiences on any device
Safe Harbor Statements Forward Looking StatementsCertain statements herein are forward-looking statements and represent NeuLion’s current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Although the forward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to derive anticipated benefits from the acquisition of DivX; our ability to successfully integrate the operations of DivX; our ability to realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers’ subscriber levels and financial health; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the “Risk Factors” section of NeuLion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, which is available on www.sec.gov and filed on www.sedar.com. Use of Non-GAAP Financial MeasuresIn addition to our U.S. GAAP results, this presentation also includes disclosure on certain non-GAAP financial measures, as such term is used by the SEC. The Company defines Non-GAAP revenues as GAAP revenues before purchase price accounting adjustments as a result of an acquisition. The Company defines Non-GAAP Adjusted EBITDA as consolidated net income (loss) before interest, income taxes, depreciation and amortization, purchase price accounting adjustments, stock-based compensation, acquisition-related expenses, gain on revaluation of convertible note derivative, and foreign exchange loss. Non-GAAP Adjusted EBITDA is a key measure used by management to evaluate the Company’s results and make strategic decisions about the Company, including potential acquisitions. Management believes this measure is useful to investors because it is an indicator of operational performance. Because not all companies use identical calculations, the Company’s presentation of Non-GAAP Adjusted Revenue and EBITDA may not be comparable to similarly titled measures of other companies. This measure does not have any standardized meaning prescribed by U.S. GAAP and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.
2Q Revenue Highlights 69% gain in GAAP revenue versus prior year’s levelNeuLion Digital Platform growth 16% versus a strong 2Q14 NeuLion Digital Platform growth largely driven by new customers, fixed license fees99% gain in non-GAAP revenue versus prior year’s levelFirst full quarter of DivX revenue 2012 2013 2014 2015 $/MM 38% CAGR 14% CAGR 25% CAGR 28% CAGR 45% CAGR 14% CAGR 25% CAGR 35% CAGR $/MM
2Q EBITDA Highlights Further benefits of scale – almost half of 700 bps cost of goods improvement driven by higher usage ratesRemaining cost improvement driven by a higher mix of DivX revenue (42% of non-GAAP revenue)Operating expenses higher due to acquisition of DivXSG&A expense, including stock-based compensation, increased 78%R&D expense more than tripled $/MM 2012 2013 2014 2015
2Q Balance Sheet Highlights (in $000) 6/30/2015 12/31/2014 Cash & Equivalents 34,059 25,898 Receivables 22,519 8,056 Total Current Assets 61,131 36,287 Payables 6,996 14,362 Deferred Revenue 9,364 9,602 Total Current Liabilities 24,100 29,212 Working Capital 37,031 7,075 Other Long-Term Liabilities 6,994 2,673 Total Redeemable Preferred Stock 14,970 14,955 Total Equity 61,627 5,099 Total Liabilities and Equity 107,691 51,938 * * Reflects accounting for the DivX acquisition
Highlight Strategic Significance Partnered with Millicom to create and deliver a new Tigo Sports App for fans in Latin America. Originally launched in Bolivia, the service has expanded to include Paraguay, Columbia and Guatemala. ---> Further monetizes platform, deepens customer relationship Launched a long-term web, mobile and video partnership with Drum Corps International (DCI), Marching Music’s Major League™ who hosts an annual DCI Tour and more than 35 World Championships in 17 North American cities. ---> New customer Signed new multi-year agreement with Tennis Channel. Since signing original deal in 2014, Tennis Channel Plus subscriptions have grown 400% year-over-year and sees, on average, 25% of subscribers using the online service at least once daily. ---> Deepens customer relationship Signed new agreement with Rogers to deliver the 2015 Pan Am Games on Rogers Anyplace TV. ---> Deepens customer relationship The NeuLion College network continued to be fueled by the rise in mobile traffic with 54% of traffic coming from mobile devices in Q2, as compared to 43% in Q2 2014. ---> Demonstrates expanded usage Expanded partnership with Sky New Zealand to add the delivery of 4 linear channels to the recently launched over-the-top digital sports service, FAN PASS. ---> Expanded customer relationship Recognized at the 2015 Microsoft Build Developer Conference as a Premier Plus Developer Partner for Xbox LIVE applications through NeuLion’s work with major sports leagues. ---> Demonstrates technological leadership Hosted the NeuLion Partner Summit in New York that brought together attendees from its professional sports partners including the NHL, NBA, UFC, World Surf League and others. ---> Deepens customer relationships Powered World Congress Live, the digital extension of the Sports Business Journal IMG World Congress of Sports event giving viewers access to exclusive interviews from across the sports media landscape including the NHL, the United States Olympic Committee, Adidas and others. ---> New customer 2Q Operational Highlights
Second Half 2015 Growth Initiatives
2Q GAAP to non-GAAP Reconciliation
2Q GAAP to non-GAAP Reconciliation
Exhibit 99.2
Investor Presentation | August 2015
Forward Looking Statements Certain statements herein are forward-looking statements and represent NeuLion’s current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,” “should,” “could,” or “might” occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Although the forward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion’s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to attract new customers and increase revenue per customer; our ability to continue relationships with our customers and to negotiate favorable terms for contract renewals; our customers’ subscriber levels and financial health; our ability to derive anticipated benefits from the acquisition of DivX; our ability to successfully integrate the operations of DivX; our ability to pursue and consummate acquisitions in a timely manner; our ability to compete effectively and changes in the competitive environment; our ability to expand our product capabilities and acceptance rates of such products; our ability to accurately forecast revenue and appropriately plan expenses; our ability to integrate and expand our direct sales force; the attraction and retention of qualified employees and key personnel; our ability to protect and defend our intellectual property; unexpected events in the market for our solutions, including technological changes; general economic and market conditions; our ability to expand into new markets; future regulatory changes in our industry; foreign exchange, interest rate and credit risks. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the “Risk Factors” section of NeuLion’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, which is available on www.sec.gov and filed on www.sedar.com.
Deliver and enable the highest quality live and on-demand digital video content experiences anywhere and on any device NeuLion Mission
Enormous Industry Tailwinds & Market Opportunity– Fundamental Shift to Connected Devices: More people consuming more content on more devices– Addressing Significant Industry Problem: Live video delivery is mission-critical and very difficult Large Market Opportunity Large, Well-Known, Blue Chip Customer Base– Strong customer relationships with major Content Owners and CE Manufacturers– Live sports and entertainment are large and growing categories High-Profile Customer Base Compelling Financial Metrics– Recurring revenue with high margins and steady growth– Adjusted EBITDA positive since 2013– ~60% Adjusted EBITDA contribution margin Strong Financial Profile & Scalable Business Model Respected and Experienced Leadership Team– Deep technology and industry expertise– Track record and experience building businesses Experienced Management & Board Robust Technology Platform Proprietary, Turnkey, End-to-End, Cloud-Based, Configurable Solution– Early to market, at the forefront of shift to digital video content– High barriers to entry – unique, home-grown, end-to-end platform Investment Highlights
Delivered over 50,000 live sports events in 2014 Over 1 billion devices and 1 billion downloads in market 25 million application downloads Stream 300+ live linear channels, 24 hours a day – Sports & Entertainment 7.6 million online consumer transactions – subscription & PPV services 1.5 million video assets managed by the NeuLion Digital Platform Global PresenceHeadquartered: Plainview, NYTSX: NLNMarket Capitalization: US $283mEnterprise Value: US $264M 16 offices worldwide 500+ employees NeuLion by the Numbers
Y-o-Y Online Video Industry Growth (2) Internet Video Traffic (Exabytes) (1) 33% CAGR Mobile Traffic By Application (2) Cisco VNI Global IP Traffic Forecast 2014-2019 as of May 2015Cisco VNI Global IP Traffic Forecast 2014-2019 as of February 2015 The Global Sports Media Consumption Report 2014Futuresource Consulting, December 2014 Growth of 4K Resolution and Adoption (4)– Global 4K-enabled TV Shipments (Millions of Units) – 72% CAGR Digital Video Industry Trends – Rising Tide Lifts All Ships Sports Consumption on Connect Devices (3)– Self-identified Fans in 2014 –
Shifting Dynamics for All Customer Categories Increased consumption of digital video content on connected devicesLive and on-demand content creating massive opportunity to reach new addressable audiencesConsumers demanding more personalized and interactive experiencesDesire to deliver live and on-demand content anytime, anywhere Devices need secure playback of digital video content Consumers demanding Ultra HD / 4K resolution across all of their screens CE Manufacturers Content Owners
The Challenge of Delivering Live Digital Video Content Challenges Desire to deliver live and on-demand content anytime, anywhereSignificant infrastructure investment and expertiseLive events require real-time coordination and execution of technology and resourcesConsumers demand a more personalized and interactive experienceDevices need support, decode, decrypt and playback capabilities in high definition Proprietary, turnkey end-to-end cloud-based, configurable solutionSeamless delivery of live content and real-time customized viewer experiencesDevice agnostic content delivery platformHighly extensibleExtensive monetization optionsHigh quality resolution and enhanced viewing experience Solution NeuLion Platform
NeuLion owns and operates every piece of the end-to-end platform that seamlessly delivers high-quality, interactive content across multiple screens The Proprietary NeuLion Digital Platform
Engaging tools create a destination experience Immersive, Customized Viewing Experience Ultra HD / 4K 4K Multiple Camera Angles Integrated Stats Instant Replay Advanced User Control Live to VOD Clips Multi-Event Streaming Timeline Event Markers Integrated StatsMultiple Camera AnglesInstant ReplayMulti-Event StreamingTimeline Event MarkersSocial Media Integration 4 1 2 3 5 6 1 2 3 4 5 6
Smart TVs Gaming Devices & 3rd Party STB Smartphones & Tablets 1080i1080p4K NeuLion Delivers on All ScreensAll Video Formats
Reduces complexities for content rights holdersProprietary, turnkey, end-to-end solutionSpeed time to marketDistribution to multiple devicesEnhanced viewer experienceIncreased monetization opportunitiesSuperior customer and operational service Competitive Advantage
Mobile Consumer Apps Playback – Desktop and Web PlayerConverterDLNA Streaming to Devices Consumer Software Over 1 billion software downloads DivX Video Viewing Solution Better Screen ResolutionHigher QualityFaster Adaptive Bitrate StreamingReduced BufferingFaster Start Time, Video Loading Over 1 billion CE devices shipped worldwide CE Manufacturers MainConcept Advanced Media Processing Video Compression-Decompression ProgramsAdvanced Playback Solutions Integrate with Third Parties 40K+ HEVC files created per month Video Integrators NeuLion Empowers the Entire Ecosystem NeuLion Digital Platform End-to-end PlatformIngest Content FeedFormat for DeliveryEncode, TranscodeContent ManagementDelivery to Any Device MonetizationPerformance Analytics Delivered 225+ petabytes of video in 2014 Content Owners
82PB 154PB 227PB A petabyte is 1015 bytes of digital information. One petabyte is equivalent to 1,000 terabytes. Usage has almost tripled since 2012 Petabytes Streamed (1) 300PB + Increasing NeuLion Customer Usage
Live Sports & Entertainment Movies User Generated VALUE Content Type NeuLionFocus NeuLion’s customers have the highest value content Digital Content Pyramid
Content Owners Video Integrators CE Manufacturers Attractive Blue Chip Customer Base
Selected to Deliver the 2014 FIFA World Cup on Multiple Devices Result: Unprecedented Digital Traffic Delivered mission critical live and on-demand contentEnabled Univision users to view live streams of all matches on their connected devicesEnabled Univision users to view real-time highlights tied to match stats, match schedules, team alerts, and others Univision Deportes + NeuLion 74M Live video streams 4x as many unique live stream viewers as the 2010 FIFA World Cup 87% 87% of Univision Digital WC traffic came from a mobile device, 37% for 2010 WC 10 Millionunique live stream viewers, 12% lift to TV audience
Selected to Power its Digital Video Experience WorldwideResult: A go-to, hard-hitting online destination with access to everything UFC for fans to interact and engage with anytime, anywhere Complete access to pay-per-view events with ability to watch in multiple angles, score the fight round-by-round, view real-time stats and moreMonthly subscription service, Fight Pass, gives fans access to exclusive UFC fights, original programming, behind the scenes content and access to the largest mixed martial arts fight library in the world 150+ Countries UFC.TV is available in over 150 countries Largest mixed martial arts fight library in the world Fight PassThe first global digital only channel MMA Over 20 DevicesSupports delivery to over 20 different device models UFC + NeuLion
Internal Deployments Proprietary, End-to-End, Fully Integrated, Configurable Solution Technology Licensee Technology Licensee High Perception of Value: Live Content Delivery Offered At Reasonable Price High-cost alternative Expensive; Potentially Ineffective Dedicated Account Management & Customer/Operational Support Investment in Internal Resources Deep Industry Expertise with a Global Sales Footprint U.S. Sales Focus NA Ability to Utilize Large, Recognizable Customer Base to Attract New Ones NA Best of Breed Platform
Compelling Growth Drivers
Board of Directors Kanaan JemiliPresident and Chief Executive Officer Chris WagnerEVP, Marketplace Strategy Arthur J. McCarthyChief Financial Officer Roy E. ReichbachGeneral Counsel and Corporate Secretary Michael HerCo-Chief Technology Officer Charles B. WangChairman Nancy LiExecutive Vice Chairman Roy ReichbachGeneral Counsel and Corporate Secretary Gabriel A. BattistaDirector Shirley Strum KenneyDirector David KronfeldDirector Robert E. BostromDirector John A. CoelhoDirector James R. HaleDirector Management Team Eric GrabCo-Chief Technology Officer Ronald NunnEVP, Business Operations
Recurring license revenue drives higher visibility High and expanding margins – Adj. EBITDA positive since 2013 Land and expand model – customers scale over time Financial Highlights Usage revenue provides upside potential Scalable business model with significant operating leverage
Recurring Revenue Model Larger audienceMore content, features, devicesAdded events Setup Fixed/License Fees Variable NeuLion Digital PlatformSubscription basis# of channels, events# of connected devicesVariable basisVolume of digital video contentLevel of advertising and ecommerce activitySupport servicesDivX & MainConceptSubscription license agreements and variable per unit fees Source: Management estimate, based on historical results.
Land and Expand Revenue ModelActual Content Owner Customer Case Study Grows over time as customers grow the:# of Channels# of EventsNumber of connected devices Volume of digital video contentGrows as more customers are added and existing customers expand their use of our solution Note: Annotations above denote price configuration assumptions
($ in millions) NeuLion 2012 NeuLion 2013 NeuLion 2014 Pro Forma 2014 Pro Forma 1H14 Pro Forma 1H15 Total Revenue $39.0 $47.1 $55.5 $81.8 $40.0 $46.6 Cost of Revenue % 35.1% 28.2% 25.0% 25.3% 27.4% 18.8% SG&A(1) $23.5 $24.3 $27.1 $46.1 $21.7 $23.0 R&D $6.7 $7.4 $8.4 $30.9 $15.7 $14.6 Adjusted EBITDA(2) $(3.3) $3.5 $8.4 $17.4 $7.8 $11.1 Net Income (Loss) $(10.1) $(2.3) $3.6 $(24.9) $(14.3) $(5.9) Includes stock based compensationAdjusted EBITDA represents net income (loss) before interest, income taxes, depreciation and amortization, stock-based compensation, acquisition-related expenses, purchase price accounting adjustments, impairment of intangibles, discount on convertible note, loss on dissolution of majority-owned subsidiary, gain on revaluation of convertible note derivative, investment income/expense and foreign exchange gain/loss. Scalable Business Model with Significant Operating Leverage Income Statement Highlights
Income Statement Highlights Q2’15 Q1’15 Q4’14 Q3’14 Q2’ 14 Q1’14 Total Revenue $22.7 $21.7 $16.5 $12.2 $13.4 $13.5 Cost of Revenue as a % of Revenue 19% 20% 25% 23% 26% 26% SG&A(1) $11.4 $9.9 $8.0 $6.3 $6.4 $6.4 R&D $7.5 $5.3 $2.1 $2.1 $2.2 $2.0 Non-GAAP Adjusted EBITDA $4.2 $6.8 $3.5 $1.3 $1.6 $2.0 GAAP Net Income (Loss) $(3.2) $(0.5) $1.6 $0.2 $0.6 $1.1 Diluted EPS $(0.01) $0.00 $0.01 $0.00 $0.00 $0.00 High margin business with increasing revenue momentumCrossed over to GAAP profitability in Q4 2013First and fourth quarters are seasonally strongestQ1 2015 includes 2 months of DivXQ2 2015 includes first full quarter of DivX Scalable Business Model with High Operating Leverage Includes stock based compensation
(in $000) 6/30/2015 3/31/2015 12/31/2014 Cash & Equivalents 34,059 35,225 25,898 Receivables * 22,519 31,177 8,056 Total Current Assets 61,131 70,435 36,287 Payables 6,996 12,201 14,362 Deferred Revenue 9,364 10,978 9,602 Total Current Liabilities 24,100 31,400 29,212 Convertible Note and Note Derivative** 0 27,119 0 Working Capital 37,031 39,035 7,075 Other Long-Term Liabilities 6,985 7,268 2,673 Total Redeemable Preferred Stock 14,970 14,962 14,955 Total Equity 61,627 37,284 5,099 Total Liabilities and Equity 107,691 118,034 51,938 * Reflects accounting for the DivX acquisition ** Part of the consideration for the DivX acquisition converted to 25.8M common shares on June 4, 2015 Q2 Balance Sheet Highlights
Enormous Industry Tailwinds & Market Opportunity– Fundamental Shift to Connected Devices: More people consuming more content on more devices– Addressing Significant Industry Problem: Live video delivery is mission-critical and very difficult Large Market Opportunity Large, Well-Known, Blue Chip Customer Base– Strong customer relationships with major Content Owners and CE Manufacturers– Live sports and entertainment are large and growing categories High-Profile Customer Base Compelling Financial Metrics– Recurring revenue with high margins and steady growth– Adjusted EBITDA positive since 2013– ~60% Adjusted EBITDA contribution margin Strong Financial Profile & Scalable Business Model Respected and Experienced Leadership Team– Deep technology and industry expertise– Track record and experience building businesses Experienced Management & Board Robust Technology Platform Proprietary, Turnkey, End-to-End, Cloud-Based, Configurable Solution– Early to market, at the forefront of shift to digital video content– High barriers to entry – unique, home-grown, end-to-end platform Investment Highlights
Exhibit 99.3
Investor Factsheet neulion.com NeuLion offers solutions that power the highest quality digital experiences for live and on-demand content up to 4K anywhere, on any device. Through its end-to-end technology platform, NeuLion enables digital content management, distribution and monetization across the entire ecosystem — content owners, content creators and consumers. The company’s complete OTT and TVE solution reduces complexities for content rights holders, speeds time to market and enables scalability. GROWTH INITIATIVES • Land new clients • Expand existing relationships • Enhance technology and product offerings • Strategic partnerships and acquisitions INVESTMENT HIGHLIGHTS • Enormous industry tailwinds and market opportunity • Proprietary, turnkey, end-to-end, cloud-based configurable solution • Large, well-known blue-chip customer base • Compelling financial metrics • Respected and experienced leadership team EMPOWERING THE ECOSYSTEM Multi-Screen OTT Consumer Electronic Professional Content & TVE PlatformLicensing Tools & Technologies BLUE CHIP CUSTOMER BASE Sports & TVETechnology Value Chain Consumer Software Consumer Electronics From content creators and providers to technology and consumer electronics ACCELERATING ADOPTION OF DIGITAL VIDEO DRIVING NEULION’S GROWTH Internet Video Traffic (Exabytes) (1) 120 90104.9603025020142019 (1) Cisco VNI Global IP Traffic Forecast 2014-2019 as of May 2015(2) Cisco VNI Global IP Traffic Forecast 2014-2019 as of February 2015 Growth of 4K Resolution and AdoptionGlobal 4K-enabled TV Shipments (Millions of Units) (2)124100100+75502511.6020142019 DEVICE AGNOSTIC COMPETITIVE ADVANTAGES • Speeds time to market • Drives new revenue • Reduces complexities for content rights holders Smartphone & TabletsSmart TV’sGaming Devices & 3rd Party STBRecurring Revenue Model• NeuLion Digital Platform • Combines software, technology and operational services• Multi-dimensional monetization• Creates meaningful experiences that engage, retain and grow customersSCALABLE REVENUE MODELIncreasing NeuLion Customer UsagePetabytes(1) 5%40%55%Setup • Subscription basis • # of channels, events• # of connected devices• Variable basis• Volume of digital video content• Level of advertising & ecommerce activity• Support Services• DivX & MainConcept• Subscription license agreements and variable per unit feesFixed/License FeesVariable StreamedUsage has almost tripled since 2013350300PB+300250200227PB150154PB1005082PB02012201320142015 FINANCIALS Operating ResultsQ2’15Q1’15Total Revenu$22.7$21.7 Q4’14Q3’14Q2’14(in $000)Cash & Equivalents$16.5$12.2$13.4 Balance Sheet6/30/201512/31/201434,05925,898 Non-GAAP Adjusted Gross Margin81%80%75%77%74%SG&A*$11.4$9.9$8.0$6.3$6.4R&D$7.5$5.3$2.1$2.1$2.2Non-GAAP Adjusted EBITDA$2.5$6.8$3.5$1.3$1.6GAAP Net Income (Loss)$(3.2)$(0.5)$1.6$0.2$0.6Diluted EPS$(0.01)$0.00$0.01$0.00$0.00• High margin business with increasing revenue momentum• Crossed over the GAAP profitablility in Q4 2013• First and fourth quarters are seasonally strongest• Q1 2015 includes 2 months of DivX Receivables*22,5198,056Total Current Assets61,13136,287Payables6,99614,362Deferred Revenue9,3649,602Total Current Liabilities24,10029,212Working Capital37,0317,075Other Long-Term Liabilities6,9942,673Total Redeemable Preferred Stock14,97014,955Total Equity61,6275,099Total Liabilities and Equity107,69151,938* Reflects accounting for the DivX acquisition Stock InformationTorontoNLN.TOStock Price (CAD) (5/19/15)1.5252wk Range (CAD)0.85 - 1.72Shares Outstanding244.2MMarket Cap (CAD)371.2M [$282.1M USD] Research CoverageBeacon Securities Cormark Securities M PartnersWunderlich Securities Contact InformationCompany ContactInvestor ContactChris WagnerEd McGregor/Jody BurfeningNeuLion, Inc.LHA516-622-8300Phone: 212-838-3777emcgregor@lhai.com Statements made in this presentation that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations and beliefs of the management of NeuLion and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For a more detailed discussion of factors that affect NeuLion’s operations, please refer to the company’s Securities and Exchange Commission filings. The company undertakes no obligation to update this forward-looking information.