Welcome!

News Feed Item

Mood Media Reports Fourth Quarter and Full Year 2013 Results in Line with Preliminary Estimates

Successfully Implemented Wave 1 of Operational Initiatives to Support Growth, Create Efficiencies and Enhance Profitability;
Expected to Deliver Nearly $9 Million in Annual Cost Savings

Executing on Waves 2 and 3 of Integration, Consolidation and Synergy Program;
Program Expected to Generate $8-$12 Million in Annualized Cost Savings by End of 2014

Establishes 2014 Financial Outlook

TORONTO, March 6, 2014 /PRNewswire/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX:MM) (LSE AIM:MM), the world's largest integrated provider of in-store customer experience solutions, today reported results for the fourth quarter and full year 2013, and provided an update on strategic and operational initiatives.

Highlights

  • Significantly strengthened senior leadership team with several key appointments:
    • Tom Garrett appointed as EVP & Chief Financial Officer
    • Claude Nahon appointed as President of Mood International
    • David Van Epps appointed as Global Chief Product Officer & EVP of Local Sales
  • Successfully completed implementation of Wave 1 of its business efficiency and integration synergy program, focused on streamlining Mood Media's operating infrastructure to create efficiencies and enhance profitability, and positioning Mood Media to capture opportunities for growth across Local Audio, Visual Solutions and Mobile Services.
  • Launched Waves 2 and 3 of its efficiency and integration synergy program, expecting to deliver $8-$12 million in annualized savings. Initiatives included in Waves 2 and 3 are expected to be fully implemented by June 30th and year end, respectively.
  • Achieved fourth quarter revenues of $132 million and EBITDA of $24 million as previously reported.

"Since I joined Mood Media just over 5 months ago, we have taken important steps forward in establishing an active program to integrate our businesses, improve our cost structure and lay a strong foundation for long-term growth," said Steve Richards, President and CEO of Mood Media. "During the fourth quarter, we completed the initiatives associated with Wave 1 of our business efficiency and integration synergy program as committed, and ahead of schedule, and we expect these improvements to deliver nearly $9 million in annual cost savings. Since then, we have finalized the majority of our plans for Waves 2 and 3, and expect to fully implement those initiatives, by the end of 2014. We expect that our actions associated with Waves 2 and 3 will deliver substantial annualized savings in the range of $8 to $12 million as originally proposed in the fall of 2013, once our implementation efforts are complete.

"To drive these changes, we enhanced Mood's senior management team and added talented, experienced executives who will play a vital role in driving enhanced execution, as we further streamline our business processes and position Mood to better leverage our considerable advantages" continued Mr. Richards. "Looking ahead, while we continue to face a relatively subdued retail environment, we have a dynamic strategy in place to drive growth and we are executing relentlessly on our plans. As a result, we believe we will improve our profitability throughout 2014 and expect to see sequential improvement in this metric beginning in the second quarter and that our second half 2014 performance will outpace our first half performance. We have made very solid progress over the past 150 days, and I am highly confident in Mood's ability to enhance our value for shareholders and stakeholders. "

Fourth Quarter Financial Results
The Company reported Q4 revenues of $132 million and EBITDA of $24 million. Net loss per share from continuing operations was ($0.07) compared with net loss of ($0.08) in the prior-year period. The Company's fourth quarter revenue performance was impacted by higher volumes of low-margin equipment sales, which contributed to the revenue improvement but adversely affected EBITDA in the quarter. The Company has since de-emphasized this activity. In addition, as previously reported, EBITDA in the fourth quarter was impacted by more than $4 million in non-recurring expenses as well as its revised agreement with its U.S. affiliates.

Other expense totaled $5.5 million in the quarter related to restructuring, integration and transaction expenses and compare with $15.5 million a year earlier. Restructuring and integration activities totaled $4.5 million in the quarter and include a $0.5 million accrual related to its revised arrangement with its independent affiliates as well as severance, integration and other expenses related to its integration, consolidation and synergy program.

Key Performance Indicators

                                 
        Q1.13       Q2.13       Q3.13       Q4.13
                                 
Total subscriber sites       431,236       428,080       427,801       426,620
Blended ARPU       $ 56.93       $ 55.76       $ 56.16       $ 55.15
Blended Monthly Churn       0.8%       1.1%       0.6%       0.8%
                                 

Note: the Company has reclassified certain revenue and subscriber data in the current presentation.

In the fourth quarter, the Company recorded relatively stable performance in terms of its number of subscriber sites at 426,620. Its blended monthly churn rate of 0.8% was consistent with its performance on average throughout 2013. Blended monthly ARPU of $55.15 represents a moderate decline of 2% relative to the prior quarter.

Board of Directors
Effective January 1, 2014, Kevin Dalton was appointed to the Board of Directors and in February 2014, Mr. Dalton was appointed Lead Director of the Board. In addition, in January 2014 Gary Shenk and David Richards were appointed to the Board of Directors, with Lorne Abony and Justin Beckett stepping down.

In February 2014, the Board of Directors reconstituted its Compensation and Governance Committee appointing Mr. Kevin Dalton (Chair), Mr. David Richards and Mr. Harvey Solursh as members of this committee. In March 2014, effective immediately following the release of the Company's audited consolidated financial statements for the year ended December 31, 2013, the Board of Directors reconstituted its Audit Committee appointing Mr. Harvey Solursh (Chair), Mr. David Richards and Mr. Gary Shenk as members of this committee.

Conference Call
As previously announced, the Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss its results and respond to questions from the investment community. The call can be accessed by telephone by dialing (416) 764-8658, or 1 (888) 886-7786 for international callers. Listeners are advised to dial in at least five minutes prior to the call.

This earnings release, which is current as of March 6, 2014, is a summary of our fourth quarter and 2013 results, and should be read in conjunction with our 2013 MD&A and our 2013 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.

                   
Mood Media Corporation
Selected Financial Information
                 
                   
  Three months ended       Year ended    
  December 31,
2013
  December 31,
2012
  December 31,
2013
  December 31,
2012
  December 31,
2011
Continuing operations                  
                   
Revenue $132,253   $131,946   $513,270   $443,823   $274,771
Expenses:                  
  Cost of sales (excludes depreciation and amortization) 63,243   61,045   233,877   183,759   95,091
  Operating expenses 45,047   42,924   175,891   148,404   96,967
  Depreciation and amortization 18,037   17,839   69,182   57,856   42,047
  Impairment to goodwill -   -   75,000   -   -
  Share-based compensation 415   866   2,275   3,758   3,175
  Other expenses 5,521   15,444   30,791   39,812   22,790
  Foreign exchange (gain) loss on financing transactions (2,202)   (4,195)   (6,979)   (1,428)   5,067
  Finance costs, net 13,919   9,529   38,279   51,045   61,350
Loss for the period before taxes (11,727)   (11,506)   (105,046)   (39,383)   (51,716)
                   
Income tax charge (credit) 898   2,438   7,773   (14,219)   545
Loss for the year from continuing operations (12,625)   (13,944)   (112,819)   (25,164)   (52,261)
                   
Discontinued operations                  
                   
Profit (loss) after tax from discontinued operations 68   (13,203)   (16,419)   (54,067)   (7,644)
Loss for the year (12,557)   (27,147)   (129,238)   (79,231)   (59,905)
                   
Attributable to:                  
  Owners of the parent (12,540)   (27,291)   (129,549)   (79,502)   (59,951)
  Non-controlling interests (17)   144   311   271   46
  (12,557)   (27,147)   ($129,238)   (79,231)   $(59,905)
                   
Net loss per share:                  
  Basic and diluted $(0.07)   $(0.16)   (0.75)   $(0.50)   $(0.48)
  Basic and diluted from continuing operations (0.07)   (0.08)   (0.66)   (0.16)   (0.42)
  Basic and diluted from discontinued operations (0.00)   (0.08)   (0.10)   (0.34)   (0.06)
                     
                   

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 more than half a million 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 March 5, 2014 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. For a reconciliation of EBITDA to the Consolidated Statements of Income (Loss), please see Footnote 27 to the Consolidated Financial Statements which provides Segment Information.

 

SOURCE Mood Media Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.