- Mood Media Corporation revenues rise by 54% year-over-year to $129 million
- EBITDA increases 20% to $26 million, reflecting gains in the North American business segment
- Management re-affirms 2013 guidance
- Company has entered into a definitive agreement to sell a substantial majority of its retail point-of-purchase assets
TORONTO, May 9, 2013 /CNW/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX:MM / LSE AIM:MM), one of the world's largest integrated providers of in-store customer solutions, today reported results for the first quarter ended March 31, 2013.
The Company reported revenues of $129 million (a 54% increase versus the prior year's quarter) and EBITDA of $26 million (a 20% increase versus the prior year's quarter) driven primarily by acquisitions.
Net loss per share from continuing operations was ($0.03) compared with net income of $0.01 in the prior-year period. Increased losses in the current period were driven by higher deferred income taxes and higher foreign exchange losses from financing transactions, which more than offset the improvement in EBITDA, reduced transaction and restructuring expenses, and lower financial expense.
Mood Media recently announced it has entered into a definitive agreement to dispose of the substantial majority of its retail point-of-sale assets, which had been classified as a discontinued operation earlier in 2012. The sale is subject to regulatory approvals and customary closing conditions.
"We were successful in achieving some important milestones in the quarter," said Lorne Abony, Chairman and CEO of Mood Media. "These include progress with our integration activities, achievement of our first quarter financial guidance, and the successful resolution of our ownership position in our discontinued operation, Mood Entertainment. These factors bode well for us for the duration of 2013 and 2014."
"We are accelerating our efforts to realize on the potential of our asset base by integrating our processes, innovating with our products and realigning our sales activity. We are working hard on executing more quickly and effectively and the results are starting to come through. I am more excited than ever about the opportunities in front of us and I believe the best days are still ahead. "
Pro Forma Key Performance Indicators
|Recurring and royalty revenues||89,907||90,361|
|Visual services revenues||25,587||25,679|
|Total subscribers (end of period)||432,438||439,752|
|Note: the Company has reclassified certain revenue and subscriber data in the current presentation.|
On a pro forma basis, reflecting all acquisitions as if they had occurred as of Jan. 1, 2012, revenues declined by 2% year-over-year in the first quarter. Underlying that performance, recurring and visual services revenues were stable in the period, while equipment revenues declined by 18% year over year.
Recurring and royalty revenues in the period were affected by positive trends in several categories within the visual and audio business. However, these positive trends were largely offset by competitive activity in 2012 that carried through to the Q1 2013 performance.
Visual services revenues also remained flat. Visual services revenues represent the Company's flagship visual operations, and consists primarily of Technomedia and BIS, both of which were acquired in 2012. These businesses do not operate on a subscription revenue model and accordingly have been classified with sale of goods in the Company's statutory accounts.
Equipment revenues declined in the first quarter of 2013 relative to the prior year's quarter which is attributable to the normal quarterly variability that is typical for this revenue segment, and also a higher mix of installations that had a lower equipment component associated with it.
Mood Media Corporation
INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)
For the three months ended March 31, 2013
In thousands of US dollars unless otherwise stated
| 3 months ended March
| 3 months ended
March 31, 2012
| Continuing operations
|Cost of sales (excludes depreciation and amortization)||58,687||32,910|
|Depreciation and amortization||17,724||12,310|
|Foreign exchange loss (gain) on financing transactions||6,035||(3,488)|
|Finance (income) costs, net||(5,476)||16,231|
|Income (loss) for the period before taxes||1,422||(15,045)|
|Income tax charge (credit)||6,392||(16,797)|
|(Loss) income for the period from continuing operations||(4,970)||1,752|
|Loss after tax from discontinued operations||(3,752)||(12,253)|
|Loss for the period||(8,722)||(10,501)|
|Owners of the parent||(8,838)||(10,463)|
|Net earnings (loss) per share|
|Basic and diluted||$(0.05)||$(0.08)|
|Basic and diluted from continuing operations||(0.03)||0.01|
|Basic and diluted from discontinued operations||(0.02)||(0.09)|
This earnings release, which is current as of May 9, 2013, is a summary of our 2013 first quarter results, and should be read in conjunction with our first quarter 2013 MD&A and our 2013 first quarter Consolidated Financial Statements and Notes thereto and our other recent filings with securities regulatory authorities in Canada and the United Kingdom.
The financial information presented herein has been prepared on the basis of IFRS for interim financial statements and is expressed in United States dollars unless otherwise stated.
This news release includes certain non-IFRS financial measures. Mood Media uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS and therefore may not be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
In this earnings release, the terms "we", "us", "our", "Mood Media" and "the Company" refer to Mood Media Corporation and our subsidiaries.
About Mood Media Corporation
Mood Media Corporation (TSX:MM/ LSE AIM:MM), is one of the world's largest designers of in-store consumer experiences, including audio, visual, interactive, scent, voice and advertising solutions. Mood Media's solutions reach over 150 million consumers each day through 570,000 subscriber locations in over 40 countries throughout North America, Europe, Asia and Australia.
Mood Media Corporation's client base includes 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. Our marketing platforms include 77% of the top 100 retailers in the United States and 100% of the top 50 quick-serve and fast-casual restaurant companies.
For further information about Mood Media, please visit www.moodmedia.com.
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 without limitation, expected growth, results of operations, performance, and business prospects and opportunities. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.
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 Mood Media's management discussion and analysis dated May 9, 2013 and Mood Media's annual information form dated March 28, 2013, 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 Corporation presents EBITDA information as a supplemental figure because management believes it provides useful information regarding operating performance. EBITDA is not a recognized measure under International Financial Reporting Standards ("IFRS"), does not have standardized meaning, and is unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or (loss) determined in accordance with IFRS as an indicator of the financial performance of Mood Media or as a measure of Mood Media's liquidity and cash flows.
SOURCE: Mood Media Corporation
For further information:
Mood Media Corporation
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Mood Media Corporation
Director of Communications
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