-- Revenues of $21.5 million and Adjusted EBITDA of $5.2 million
-- Net Income of $33.6 million, reflecting one-time tax benefit
-- Merger integration savings achieved ahead of schedule
PR Newswire
Propel Media, Inc.
17 minutes ago
JERSEY CITY, N.J., May 18, 2015 /PRNewswire/ -- Propel Media, Inc. (PROM), formed by the January merger of Kitara Media Corp. and Future Ads LLC, announced that it achieved revenue of $21.5 million and adjusted EBITDA of $5.2 million in its first quarter as a combined public company bringing together online video, display and mobile advertising technology solutions for advertisers, app developers and publishers.
"We are pleased that the merger of these leading ad tech companies has gone smoothly and that we were able to initiate cost savings initiatives and new business development strategies that we believe will provide operating benefits later this year," said Bob Regular, CEO of Propel Media. "We are excited that our proprietary Trafficvance and PROPEL+ technology platforms are launching dynamic video ad and content optimization capabilities to position Propel Media to take advantage of growth opportunities in an ever changing market environment," said Mr. Regular.
Our merger was accounted for as a reverse merger, with Future Ads as the accounting acquirer. The historical financial statements are those of Future Ads and Future Ads was deemed to have acquired Kitara on the date of the reverse merger. Upon the closing of the merger, Future Ads became subject to income taxes, and as such, we recorded a deferred income tax benefit of approximately $31 million.
Complete information on the Company's financial performance for the first quarter ended March 31, 2015 is set forth in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 15, 2015.
About Propel Media
Propel Media is a performance focused digital media company bringing together online video, display and mobile advertising technology and solutions to advertisers, app developers and publishers. Our mission is to provide exceptional performance for our partners.
The Company has offices in Irvine, CA and Jersey City, NJ. For more information visit: http://www.propelmedia.com
Forward-Looking Statements:
Certain information and statements contained in this press release, including those regarding Propel Media's capital structure, ability to execute its operating plan, anticipated financial flexibility and other statements that are not statements of historical fact, are forward-looking statements within the meaning of federal securities laws. These statements may be identified, without limitation, by the use of forward-looking terminology such as "anticipates", "expects," "will" or comparable terms or the negative thereof. Such statements are based on management's current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof and we undertake no obligation to update any such statements to reflect subsequent changes in events or circumstances. Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors described from time to time in Propel Media's reports filed with the SEC. Among the factors that could cause actual results to differ materially are Propel Media's: loss of key advertising customers; inability to acquire new advertising customers; inability to expand its video content library; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions.
Use of Non-GAAP Financial Information
In addition to the unaudited results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, the Company presents adjusted EBITDA which is a non-GAAP measure. The adjusted EBITDA is determined by taking net income and adding back depreciation and amortization, income tax benefit, interest expense and stock-based compensation. The Company believes that this non-GAAP measure, viewed in addition to and not in lieu of the Company's reported GAAP results, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company's internal reporting to evaluate its operations and the performance of senior management. A reconciliation table to the comparable GAAP measure is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.
Propel Media, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of
Assets
March 31, 2015
December 31, 2014
(unaudited)
Current assets
Cash
$ 6,346,000
$ 3,675,000
Accounts receivable, net
11,242,000
8,054,000
Prepaid expenses
602,000
343,000
Deferred tax assets, current
12,000
-
Other current assets
232,000
-
Total current assets
18,434,000
12,072,000
Property and equipment, net
3,050,000
2,034,000
Restricted cash
513,000
-
Intangible assets
586,000
-
Goodwill
2,467,000
-
Deferred tax assets, non-current
34,610,000
-
Other assets
698,000
56,000
Total assets
$ 60,358,000
$ 14,162,000
Liabilities and Stockholders' (Deficit) Equity
Current liabilities
Accounts payable
$ 7,622,000
$ 3,540,000
Accrued expenses
3,311,000
4,184,000
Advertiser deposits
2,627,000
2,610,000
Obligations to transferors
-
650,000
Short-term portion of long-term debt
6,189,000
-
Revolving credit facility
5,751,000
-
Total current liabilities
25,500,000
10,984,000
Long-term debt
71,442,000
-
Obligations to transferors
16,387,000
-
Other non-current liabilities
428,000
464,000
Note payable stockholder, non-current, net
100,000
-
Total liabilities
113,857,000
11,448,000
Commitments and contingencies
Stockholders' (Deficit) Equity
Preferred Stock, $0.0001 par value, authorized 1,000,000 shares,
-
-
no shares issued or outstanding
Common Stock, $0.0001 par value, authorized 500,000,000 shares,
25,000
15,000
issued and outstanding 250,010,162 and 154,125,921,
at March 31, 2015 and December 31, 2014, respectively
Additional paid-in capital
139,000
-
Accumulated (deficit) earnings
(53,663,000)
2,699,000
Total stockholders' (deficit) equity
(53,499,000)
2,714,000
Total liabilities and stockholders' (deficit) equity
$ 60,358,000
$ 14,162,000
Propel Media, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(unaudited)
For the Three Months Ended March 31,
2015
2014
Revenues
$ 21,491,000
$ 24,669,000
Cost of revenues
10,172,000
11,295,000
Gross profit
11,319,000
13,374,000
Operating expenses:
Salaries, commissions, benefits and related expenses
3,669,000
3,541,000
Technology development and maintenance
889,000
618,000
Marketing and promotional
25,000
102,000
General and administrative
959,000
319,000
Professional services
737,000
173,000
Depreciation and amortization
385,000
320,000
Operating expenses
6,664,000
5,073,000
Operating income
4,655,000
8,301,000
Interest expense
(2,407,000)
-
Income before income tax benefit
2,248,000
8,301,000
Income tax benefit
31,324,000
-
Net income
$ 33,572,000
$ 8,301,000
Net income per common share, basic and diluted
$ 0.15
$ 0.05
Weighted average number of common shares outstanding - basic and diluted
221,244,890
154,125,921
Pro-forma computation related to conversion to a C corporation upon
completion of the reverse merger with Kitara Media Corp.
Historical pre-tax net income before income taxes
$ 2,248,000
8,301,000
Pro-forma income tax expense
897,000
3,312,000
Pro-forma net income
$ 1,351,000
$ 4,989,000
Unaudited pro-forma net income per common share, basic and diluted
$ 0.01
$ 0.03
Weighted average number of shares outstanding - basic and diluted
221,244,890
154,125,921
Propel Media, Inc. and Subsidiaries
Reconciliation of Non-GAAP Information
(Unaudited)
For the Three Months Ended March 31,
2015
2014
Net loss (GAAP)
$ 33,572,000
$ 8,301,000
Add (subtract) the following items:
Depreciation and amortization
385,000
320,000
Income tax benefit
(31,324,000)
-
Interest expense
2,407,000
-
Stock-based compensation
139,000
-
Adjusted EBITDA (non-GAAP)
$ 5,179,000
$ 8,621,000
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/propel-media-launches-with-profitable-first-quarter-earnings-300084697.html
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