TORONTO, Oct. 19, 2012 /CNW/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX: MM) (LSE AIM: MM) ("Mood Media" or the "Company"), announced today that its subsidiary, Muzak, LLC ("Muzak"), has acquired the assets of one of its largest franchisees, for US$27.9 million in cash, 80% of which was payable on closing with the remaining 20% payable on the 12 month anniversary of closing, subject to certain post-closing purchase price adjustments.
The acquired franchisee offers a range of in-store audio, visual and scent solutions and operates in the U.S. mid-Atlantic region.
For the 12-month period ended June 30, 2012, the acquired franchisee had revenue and adjusted EBITDA of approximately US$19.5 million and US$4.2 million, respectively.
About Mood Media Corporation
Mood Media Corporation (TSX:MM/ LSE AIM:MM) is a leading in-store media specialist that uses a mix of music, visual and scent media to help its clients communicate with consumers with a view to driving incremental sales at the point-of-purchase.
Mood Media Corporation works with over 560,000 commercial locations in over 40 countries throughout North America, Europe, Asia and Australia.
Mood Media Corporation's products and services reach 100 million people every day in a broad client base including more than 850 U.S. and international brands in diverse market sectors that include: retail, from fashion to financial services; hospitality, from hotels to health spas; and food retail, including restaurants, bars, quick-serve and fast casual dining.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including the following specific assumptions: general industry and economic conditions; and changes in regulatory requirements affecting the businesses of Mood Media and the acquired franchisee. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Historical performance may not be indicative of future performance.
Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in the Risk Factors section of Mood Media's management discussion and analysis dated October 9, 2012 and the risk factors identified in the annual information form of Mood Media dated March 30, 2012, both of which are available on www.sedar.com.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media.
Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
Mood Media defines ''EBITDA'' as net income (loss) before finance costs, income taxes, depreciation and amortization. Mood Media defines ''adjusted EBITDA'' as EBITDA after removing amounts relating to share-based compensation, transaction costs attributable to business combinations, restructuring, integration and merger related charges and other events that are not in the normal course of operations. Mood Media presents EBITDA and adjusted EBITDA information as supplemental figures because management believes it provides useful information regarding operating performance. EBITDA and adjusted EBITDA are not recognized measures under International Financial Reporting Standards ("IFRS"), do not have standardized meaning, and are unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that EBITDA and adjusted EBITDA should not be construed as an alternative to net earnings or (loss) determined in accordance with IFRS as an indicator of the operating performance.
SOURCE: Mood Media Corporation
For further information:
Mood Media Corporation
Vice President, Investor Relations
Tel: +1 (416) 565 9295
Email: [email protected]
Panmure Gordon (UK) Limited
+44 20 7459 3600
North America Media Enquiries
Mood Media Corporation
Director of Communications
Tel: +1 (803) 242 9147