Current Liabilities
Accounts payable and accrued expenses $ 20,817 $ 34,531
Line of credit, including unamortized
debt issuance costs of $81 and $76,
respectively 6,301 4,924
Current portion of earnout and deferred
consideration on purchase of business 3,294 5,232
Operating lease liabilities 401 418
Current portion of deferred revenue 436 226
--------- ---------
Total Current Liabilities 31,249 45,331
Deferred consideration on purchase, net
of current portion 457 2,647
Operating lease liabilities, net of
current portion 462 863
Other long-term liabilities 59 74
--------- ---------
Total Liabilities $ 32,227 $ 48,915
--------- ---------
Stockholders' Equity
Preferred stock $ 3,559 $ 3,559
Common stock 194 185
Additional paid-in capital 545,996 530,998
Treasury stock, at cost (11,978) (11,608)
Accumulated deficit (504,153) (482,395)
Accumulated other comprehensive loss (345) (402)
--------- ---------
Total stockholders' equity of Cineverse
Corp. 33,273 40,337
Deficit attributable to noncontrolling
interest (1,122) (1,264)
--------- ---------
Total equity 32,151 39,073
--------- ---------
Total Liabilities and Equity $ 64,378 $ 87,988
========= =========
CINEVERSE CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
For the Three Months Ended For the Fiscal Year
March 31, Ended March 31,
2024 2023 2024 2023
------------- ------------- --------- ----------
(Unaudited) (Unaudited)
Revenues $ 9,863 $ 12,548 $ 49,131 $ 68,026
Operating
expenses
Direct operating 2,033 6,505 19,131 36,364
Selling, general
and
administrative 6,816 7,803 27,904 36,819
Depreciation and
amortization 984 855 3,771 3,763
Goodwill
impairment 14,025 -- 14,025 --
--------- --------- -------- ---------
Total operating
expenses 23,859 15,163 64,831 76,946
--------- --------- -------- ---------
Operating loss (13,995) (2,615) (15,700) (8,920)
Interest expense (286) (410) (1,066) (1,290)
Loss from
investment in
Metaverse, a
related party (538) -- (4,299) (1,828)
Employee
retention tax
credit -- -- -- 2,475
Other income
(expenses),
net 141 69 (190) (13)
--------- --------- -------- ---------
Net loss before
income taxes (14,678) (2,955) (21,255) (9,575)
Income tax
benefit
(expense) 2 (119) (10) (119)
--------- --------- -------- ---------
Net loss (14,676) (3,075) (21,265) (9,694)
Net income
attributable to
noncontrolling
interest (48) (4) (142) (39)
--------- --------- -------- ---------
Net loss
attributable to
controlling
interests (14,724) (3,079) (21,407) (9,734)
Preferred stock
dividends (87) (87) (350) (351)
--------- --------- -------- ---------
Net loss
attributable to
common
stockholders $ (14,811) $ (3,166) $(21,757) $ (10,085)
========= ========= ======== =========
Net loss per
share
attributable to
common
stockholders:
Basic $ (1.10) $ (0.35) $ (1.78) $ (1.13)
Diluted $ (1.10) $ (0.35) $ (1.78) $ (1.13)
Weighted average
shares of common
stock
outstanding:
Basic 13,525 8,995 12,253 8,889
Diluted 13,525 8,995 12,253 8,889
Adjusted EBITDA
We define Adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.
Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We use Adjusted EBITDA as a financial metric to measure the financial performance of the business because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe Adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.
We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful both to management and investors when evaluating our performance and comparing our performance with that of our competitors. We also use Adjusted EBITDA for planning purposes and to evaluate our financial performance because Adjusted EBITDA excludes certain incremental expenses or non-cash items, such as stock-based compensation charges, that we believe are not indicative of our ongoing operating performance.
We believe that Adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income (loss) from operations and Adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to net income (loss) from operations as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Following is the reconciliation of our consolidated net (loss) income to Adjusted EBITDA (in thousands):
For the Three Months Ended For the Fiscal Year
March 31, Ended March 31,
---------------------------- -------------------
2024 2023 2024 2023
------------- ------------- --------- --------
(Unaudited) (Unaudited)
Net loss $ (14,676) $ (3,075) $(21,265) $(9,694)
Add Backs:
Income tax (benefit)
expense (2) 119 10 119
Depreciation and
amortization 984 855 3,771 3,763
Interest expense 286 410 1,066 1,290
Stock-based
compensation 347 564 1,439 4,470
Loss from equity
investment in
Metaverse, a
related party 538 -- 4,299 1,828
Employee retention
tax credit -- -- -- (2,475)
Provision for credit
losses -- -- -- 54
Goodwill impairment 14,025 -- 14,025 --
Other (income)
expense, net (142) 95 (140) 13
Net income
attributable to
noncontrolling
interest (48) (4) (142) (39)
Transition-related
costs 241 170 1,335 541
Mergers and
acquisitions costs -- -- -- 207
--------- --------- -------- -------
Adjusted EBITDA $ 1,553 $ (867) $ 4,398 $ 76
========= ========= ======== =======
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SOURCE Cineverse Corp.
(END) Dow Jones Newswires
July 01, 2024 16:00 ET (20:00 GMT)
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