----------- ---------
Total Assets $ 60,600 $ 64,378
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 19,928 $ 20,817
Line of credit, including unamortized
debt issuance costs of $180 and $81,
respectively 4,637 6,301
Current portion of earnout and
deferred consideration on purchase of
business 3,040 3,294
Term Loan, including unamortized debt
issuance costs of $87 and $0,
respectively 3,147 --
Operating lease liabilities 273 401
Current portion of deferred revenue 352 436
----------- ---------
Total Current Liabilities 31,377 31,249
Deferred consideration on purchase,
net of current portion -- 457
Operating lease liabilities, net of
current portion 371 462
Other long-term liabilities 61 59
----------- ---------
Total Liabilities $ 31,809 $ 32,228
----------- ---------
Stockholders' Equity
Preferred stock $ 3,559 $ 3,559
Common Stock 194 194
Additional paid-in capital 547,234 545,996
Treasury stock, at cost (12,193) (11,978)
Accumulated deficit (508,691) (504,153)
Accumulated other comprehensive loss (297) (345)
----------- ---------
Total stockholders' equity of
Cineverse Corp. 29,806 33,273
Deficit attributable to noncontrolling
interest (1,015) (1,122)
----------- ---------
Total equity 28,791 32,151
----------- ---------
Total Liabilities and Equity $ 60,600 $ 64,378
=========== =========
CINEVERSE CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
2024 2023 2024 2023
-------- -------- -------- --------
Revenues $ 12,739 $ 13,012 $ 21,866 $ 25,992
Operating
expenses
Direct operating 6,262 4,646 10,741 11,633
Selling, general
and
administrative 6,364 6,827 12,927 14,715
Depreciation and
amortization 974 953 1,837 1,775
------- ------- ------- -------
Total operating
expenses 13,600 12,426 25,505 28,123
------- ------- ------- -------
Operating (loss)
income (861) 586 (3,639) (2,131)
Interest expense (337) (195) (768) (490)
Gain (loss) from
investment in
Metaverse, a
related party 1 (718) 4 (718)
Other income
(expense), net - 26 163 (478)
------- ------- ------- -------
Net loss before
income taxes (1,197) (301) (4,240) (3,817)
Income tax
expense (6) (16) (13) (36)
------- ------- ------- -------
Net loss (1,203) (317) (4,253) (3,853)
Net income
attributable to
noncontrolling
interest (84) (40) (106) (53)
------- ------- ------- -------
Net loss
attributable to
controlling
interests (1,287) (357) (4,359) (3,906)
Preferred stock
dividends (89) (88) (177) (176)
------- ------- ------- -------
Net loss
attributable to
common
stockholders $(1,376) $ (445) $(4,536) $(4,082)
======= ======= ======= =======
Net loss per
share
attributable to
common
stockholders:
Basic $ (0.09) $ (0.04) $ (0.29) $ (0.37)
Diluted $ (0.09) $ (0.04) $ (0.29) $ (0.37)
Weighted average
shares of common
stock
outstanding:
Basic 15,721 12,376 15,711 11,118
Diluted 15,721 12,376 15,711 11,118
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 For the Six Months
Ended September 30, Ended September 30,
-------------------- --------------------
2024 2023 2024 2023
-------- ---------- -------- ----------
Net Loss $(1,203) $ (317) $(4,253) $ (3,853)
Add Backs:
Income tax expense 6 16 13 36
Depreciation and
amortization 974 953 1,837 1,775
Interest expense 338 195 768 490
Stock-based
compensation 503 499 973 909
Loss from equity
investment in
Metaverse (1) 718 (4) 718
Other (income)
expense, net -- (26) (163) 148
Net income
attributable to
noncontrolling
interest (84) (40) (106) (53)
Transition-related
costs -- 368 27 835
------- --------- ------- ---------
Adjusted EBITDA $ 533 $ 2,366 $ (909) $ 1,005
======= ========= ======= =========
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SOURCE Cineverse Corp.
(END) Dow Jones Newswires
November 14, 2024 16:00 ET (21:00 GMT)
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