Welcome!

News Feed Item

NeuLion Reports Record Fourth Quarter and Year-End Financial Results

Record Breaking Revenue, Non-GAAP Adjusted EBITDA and Net Income

PLAINVIEW, NY -- (Marketwired) -- 03/13/14 -- NeuLion, Inc. (TSX: NLN), a leading enabler and provider of live and on-demand content to Internet-connected devices, today announced record financial results for both the three months and year ended December 31, 2013 (all amounts are in U.S. dollars).

NeuLion posted its best-ever quarterly revenue of $14.1 million -- an increase of 34% over the previous year period. This boosted NeuLion's 2013 revenue to $47.1 million -- an increase of 21% over the previous year. Quarterly Non-GAAP Adjusted EBITDA was $2.2 million -- an improvement of $1.4 million over the previous year period. Annual Non-GAAP Adjusted EBITDA was $3.5 million -- an improvement of $6.8 million over the previous year. Quarterly Consolidated Net Income was $1.1 million -- an improvement of $1.9 million over the previous year period. Annual Consolidated Net Loss was $2.3 million -- an improvement of $7.8 million over the previous year.

"We are extremely pleased with the improvements in both our fourth quarter and year-end financial results," said Nancy Li, Chief Executive Officer of the Company. "Our financial success directly correlates to our ability to capitalize on the worldwide adoption of digital media as the means for consuming content. This is underscored by the fact that live video delivered by NeuLion increased by 88% to 154 petabytes in 2013. We expect to see continued growth in the breadth and scope of digital media adoption over the next year and beyond."

Fourth Quarter Operational Highlights:

Professional Sports
Interactive video experience delivering live and on-demand video

  • Deployed new NHL iOS and Android mobile applications for 14 teams, individually branded to offer exclusive team content and interactive features.
  • Launched new digital service for the NBA's Portland Trailblazers, giving fans the ability to watch the Trailblazer's live games inside the NBA-approved territories.
  • Added Watch NFL Network to the Windows Store allowing fans to watch NFL Network programming and NFL RedZone live on their Windows 8 devices.

College Sports
Athletic portal and online destination for college fans

  • Extended multi-year partnership with the Big 12 Conference to host and deliver big12sports.com as well as mobile applications, live streaming of events and affiliate video portals throughout the conferences' footprints.
  • College subscription business substantially increased from the prior year and added adaptive streaming capabilities for over 15 colleges and universities on PCs, smartphones and tablets.
  • Grew mobile traffic by 43% across the NeuLion college network year-over-year.

TV Everywhere
Multi-device content delivery

  • Launched new multi-screen apps for Sport TV, Portugal's number one sports network, which enables subscribers of the network access to a multitude of live HD content on multiple devices.
  • Signed agreements with Shaw Communications and Bell Canada to create iOS and Android applications authenticated for Shaw Cable and Bell Canada subscribers.
  • Expanded the use of the NeuLion Platform to deliver high-quality, interactive live and on-demand high school sports games through MSG Varsity online.

Financial Results for the Three Months Ended December 31, 2013:

Revenue was $14.1 million, as compared to $10.5 million for the three months ended December 31, 2012, an increase of $3.6 million, or 34%.

Non-GAAP Adjusted Gross Margin % was 72%, as compared to 69% for the three months ended December 31, 2012, marking a period-over-period improvement of 3%.

Consolidated operating income was $1.1 million, as compared to a consolidated operating loss of $0.4 million for the three months ended December 31, 2012, an improvement of $1.5 million.

Consolidated net income was $1.1 million, which includes $1.1 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $2.2 million, as compared to a consolidated net loss of $(0.8) million, which includes $1.6 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $0.8 million for the three months ended December 31, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $1.4 million, or 175%.

Financial Results for the Year Ended December 31, 2013:

Revenue was $47.1 million, as compared to $39.0 million for the year ended December 31, 2012, an increase of $8.1 million, or 21%.

Non-GAAP Adjusted Gross Margin % was 72%, as compared to 65% for the year ended December 31, 2012, marking a period-over-period improvement of 7%.

Consolidated operating loss was $1.6 million, as compared to $9.3 million for the year ended December 31, 2012, an improvement of $7.7 million.

Consolidated net loss was $2.3 million, which includes $5.8 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $3.5 million, as compared to a consolidated net loss of $10.1 million, which includes $6.8 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(3.3) million for the year ended December 31, 2012, marking a year-over-year improvement in Non-GAAP Adjusted EBITDA of $6.8 million.

NeuLion Financial Highlights


NeuLion Financial Highlights

Three months ended December 31, 2013 vs December 31, 2012

                                     Q4 2013    Q4 2012   $ change     %
                                    (million)  (million) (million)   change

Total Revenue                         $14.1      $10.5      $3.6      34%

  Professional Sports (1)             $6.8       $3.9       $2.9      74%
  College Sports (1)                  $3.8       $3.1       $0.7      23%
  TV Everywhere (1)                   $3.0       $2.9       $0.1       3%

Non-GAAP Adjusted Gross Margin %
 (defined below)                       72%        69%        --        --

Consolidated Operating Income
 (Loss)                               $1.1      $(0.4)      $1.5       --

Non-GAAP Adjusted EBITDA (defined
 below)                               $2.2       $0.8       $1.4      175%

Consolidated Net Income (Loss)        $1.1      $(0.8)      $1.9       --



Year ended December 31, 2013 vs December 31, 2012

                                     2013 YE    2012 YE   $ change     %
                                    (million)  (million) (million)   change

Total Revenue                         $47.1      $39.0      $8.1      21%

  Professional Sports (1)             $20.9      $13.5      $7.4      55%
  College Sports (1)                  $12.6      $10.9      $1.7      16%
  TV Everywhere (1)                   $11.3      $10.6      $0.7       7%

Non-GAAP Adjusted Gross Margin %
 (defined below)                       72%        65%        --        --

Consolidated Operating Income
 (Loss)                              $(1.6)     $(9.3)      $7.7       --

Non-GAAP Adjusted EBITDA (defined
 below)                               $3.5      $(3.3)      $6.8       --

Consolidated Net Income (Loss)       $(2.3)     $(10.1)     $7.8       --


(1) Excludes equipment revenue

Use of Non-GAAP Measures

Non-GAAP Adjusted Gross Margin %

We report non-GAAP Adjusted Gross Margin % because it is a key measure used by management to evaluate our results and make strategic decisions about the Company, including potential acquisitions. Non-GAAP Adjusted Gross Margin % represents consolidated operating income (loss) plus depreciation and amortization, research and development expenses and selling general administrative expenses divided by total revenue. This measure does not have any standardized meaning prescribed by U.S. GAAP and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.

The below table reconciles our Non-GAAP Adjusted Gross Margin % to its most directly comparable U.S. GAAP measure, consolidated operating income (loss):


                               Three months ended          Year ended
                                  December 31,            December 31,
                                2013        2012        2013        2012

Consolidated operating
 income (loss) on a GAAP
 basis                        1,117,379    (433,242) (1,639,586) (9,333,040)
Amortization and
 depreciation                   767,782     842,614   3,755,054   4,407,474
Research and development      1,962,676   1,663,510   7,422,802   6,672,778
Selling, general and
 administrative, including
 stock-based compensation     6,300,462   5,244,689  24,289,845  23,541,296
                            -----------  ----------  ----------  ----------
Non-GAAP Adjusted Gross
 Margin                      10,148,299   7,317,571  33,828,115  25,288,508
                            ===========  ==========  ==========  ==========

Non-GAAP Adjusted Gross
 Margin % (as a % of total
 revenue)                       72%          69%         72%         65%
                            ===========  ==========  ==========  ==========


Non-GAAP Adjusted EBITDA

We report Non-GAAP Adjusted EBITDA because it is a key measure used by management to evaluate our results and make strategic decisions about our Company, including potential acquisitions. Non-GAAP Adjusted EBITDA represents consolidated net income (loss) before interest, income taxes, depreciation and amortization, stock-based compensation, discount on convertible note and foreign exchange loss. This measure does not have any standardized meaning prescribed by U.S. generally accepted accounting principles (U.S. GAAP) and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.

The below table reconciles our Non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure, consolidated net income (loss):


                              Three months ended           Year ended
                                 December 31,             December 31,
                               2013        2012        2013         2012

Consolidated net income
 (loss) on a GAAP basis      1,071,979    (862,040) (2,278,345) (10,078,764)
Depreciation and
 amortization                  767,782     842,614   3,755,054    4,407,474
Stock-based compensation       344,291     361,497   1,416,892    1,627,231
Discount on convertible
 note                               --      77,922     233,769       77,922
Deferred income taxes           11,556     333,884     276,846      612,884
Interest and foreign
 exchange loss                  33,844      16,992     128,144       54,918
                            ----------  ----------  ----------  -----------
Non-GAAP Adjusted EBITDA     2,229,452     770,869   3,532,360   (3,298,335)
                            ==========  ==========  ==========  ===========


About NeuLion
NeuLion, Inc. (TSX: NLN) offers the true end-to-end solution for delivering live and on-demand content to Internet-enabled devices. NeuLion enables content owners and distributors, cable operators and telecommunications companies to capitalize on the massive consumer demand for viewing video content on PCs, smartphones, iPads and other similar devices. NeuLion's customers include major entertainment, sports, global content and news companies. NeuLion is based in Plainview, NY. For more information about NeuLion, visit www.neulion.com.

Forward-Looking Statements
Certain statements herein are forward-looking statements and represent NeuLion's current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words "will," "expect," "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can,""should," "could," or "might" occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers' subscriber levels and financial health; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the "Risk Factors" section of NeuLion's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which is available on www.sec.gov and filed on www.sedar.com.


                               NEULION, INC.

                        CONSOLIDATED BALANCE SHEETS
            (Expressed in U.S. dollars, unless otherwise noted)

                                                         As of December 31,
                                                 --------------------------

                                                         2013          2012
                                                            $             $
                                                 ------------  ------------

ASSETS
Current
Cash and cash equivalents                          19,644,270    11,108,107
Accounts receivable, net                            5,289,136     4,193,949
Other receivables                                     364,797       348,891
Inventory                                             481,012       416,541
Prepaid expenses and deposits                       1,135,949     1,185,051
Due from related parties                              243,842       899,967
                                                 ------------  ------------
Total current assets                               27,159,006    18,152,506
Property, plant and equipment, net                  3,357,626     3,446,648
Intangible assets, net                              1,649,959     4,015,301
Goodwill                                           11,327,626    11,327,626
Other assets                                           81,778       161,913
                                                 ------------  ------------
Total assets                                       43,575,995    37,103,994
                                                 ============  ============

LIABILITIES AND EQUITY
Current
Accounts payable                                   13,002,104     9,813,237
Accrued liabilities                                 5,338,418     4,766,668
Due to related parties                                 16,743        12,282
Deferred revenue                                    8,856,629     5,715,102
Convertible note, net of discount                           -       320,560
                                                 ------------  ------------
Total current liabilities                          27,213,894    20,627,849
Long-term deferred revenue                            725,853     1,134,075
Other long-term liabilities                           270,892       357,852
Deferred tax liability                              1,180,978       911,978
                                                 ------------  ------------
Total liabilities                                  29,391,617    23,031,754
                                                 ------------  ------------

Redeemable preferred stock, net (par value:
 $0.01; authorized: 50,000,000; issued and
 outstanding: 28,089,083)
  Class 3 Preference Shares (par value: $0.01;
   authorized: 17,176,818; issued and
   outstanding: 17,176,818)                        10,000,000    10,000,000
  Class 4 Preference Shares (par value: $0.01;
   authorized; 10,912,265; issued and
   outstanding: 10,912,265)                         4,924,775     4,894,683
                                                 ------------  ------------
Total redeemable preferred stock                   14,924,775    14,894,683
                                                 ------------  ------------

Stockholders' deficit
Common stock (par value: $0.01; authorized:
 300,000,000; issued and outstanding:
 170,326,338 and 164,207,147, respectively)         1,703,263     1,642,072
Additional paid-in capital                         85,437,337    83,138,137
Promissory notes receivable                          (209,250)     (209,250)
Accumulated deficit                               (87,671,747)  (85,393,402)
                                                 ------------  ------------
Total shareholders' deficit                          (740,397)     (822,443)
                                                 ------------  ------------
Total liabilities and shareholders' deficit        43,575,995    37,103,994
                                                 ============  ============



                               NEULION, INC.

                 CONSOLIDATED STATEMENTS OF OPERATIONS AND
                             COMPREHENSIVE LOSS
            (Expressed in U.S. dollars, unless otherwise noted)

                                                   Years ended December 31,
                                               ----------------------------

                                                        2013           2012
                                                           $              $
                                               -------------  -------------

Revenue
  Services revenue                                46,257,712     37,178,431
  Equipment revenue                                  849,466      1,804,495
                                               -------------  -------------
                                                  47,107,178     38,982,926
                                               -------------  -------------

Costs and Expenses
  Cost of services revenue, exclusive of
   depreciation and amortization shown
   separately below                               12,697,104     12,280,658
  Cost of equipment revenue                          581,959      1,413,760
  Selling, general and administrative,
   including stock-based compensation             24,289,845     23,541,296
  Research and development                         7,422,802      6,672,778
  Depreciation and amortization                    3,755,054      4,407,474
                                               -------------  -------------
                                                  48,746,764     48,315,966
                                               -------------  -------------
Operating loss                                    (1,639,586)    (9,333,040)
                                               -------------  -------------

Other income (expense)
  Loss on foreign exchange                          (125,657)       (56,244)
  Interest, net                                       (2,487)         1,326
  Discount on convertible note                      (233,769)       (77,922)
                                               -------------  -------------
                                                    (361,913)      (132,840)
                                               -------------  -------------
Net and comprehensive loss before income taxes    (2,001,499)    (9,465,880)
  Provision for income taxes                        (276,846)      (612,884)
                                               -------------  -------------
Net and comprehensive loss                        (2,278,345)   (10,078,764)
                                               =============  =============


Net loss per weighted average number of shares
 of common stock outstanding - basic and
 diluted                                       $       (0.01) $       (0.07)
                                               =============  =============

Weighted average number of shares of common
 stock outstanding - basic and diluted           166,663,448    146,899,685
                                               =============  =============



                               NEULION, INC.

                   CONSOLIDATED STATEMENTS OF CASH FLOWS
            (Expressed in U.S. dollars, unless otherwise noted)

                                                   Years ended December 31,
                                                 --------------------------

                                                         2013          2012
                                                            $             $
                                                 ------------  ------------

OPERATING ACTIVITIES
Consolidated net loss                              (2,278,345)  (10,078,764)
Adjustments to reconcile net loss to cash
 provided by (used in) operating activities
  Depreciation and amortization                     3,755,054     4,407,474
  Discount on convertible note                        233,769        77,922
  Stock-based compensation                          1,416,892     1,627,231
  Income taxes                                        269,000       612,884

Changes in operating assets and liabilities
  Accounts receivable                              (1,095,187)     (699,872)
  Inventory                                           (64,471)      380,895
  Prepaid expenses, deposits and other assets         129,237        68,613
  Other receivables                                   (15,906)      (39,127)
  Due from related parties                            656,125      (165,515)
  Accounts payable                                  3,188,867       215,878
  Accrued liabilities                                 635,341      (524,327)
  Deferred revenue                                  2,733,305      (684,793)
  Long-term liabilities                               (86,960)      (74,307)
  Due to related parties                                4,461        (1,016)
                                                 ------------  ------------
Cash provided by (used in) operating activities     9,481,182    (4,876,824)
                                                 ------------  ------------

INVESTING ACTIVITIES
Purchase of property, plant and equipment, net     (1,300,690)   (1,106,700)
                                                 ------------  ------------
Cash used in investing activities                  (1,300,690)   (1,106,700)
                                                 ------------  ------------

FINANCING ACTIVITIES
Exercise of stock options                             353,991            --
Exercise of broker warrants                             1,680            --
Convertible note                                           --       545,628
Private placement, net                                     --     4,199,121
                                                 ------------  ------------
Cash provided by financing activities                 355,671     4,744,749
                                                 ------------  ------------
Net increase (decrease) in cash and cash
 equivalents during the year                        8,536,163    (1,238,775)
Cash and cash equivalents, beginning of year       11,108,107    12,346,882
                                                 ------------  ------------
Cash and cash equivalents, end of year             19,644,270    11,108,107
                                                 ============  ============


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).