|By PR Newswire||
|August 14, 2014 08:30 PM EDT||
Integration Activities Positively Impacted Operating Cost Structure
On Track to Achieve Annualized Cost Savings in the Range of $8 to $10 Million by Year-End 2014 Driven by Efficiency Program Synergies
TORONTO, Aug. 14, 2014 /PRNewswire/ - Mood Media Corporation ("Mood Media" or "the Company") (ISIN: CA61534J1057) (TSX:MM) (LSE AIM:MM), the world's largest integrated provider of in-store customer experience solutions, today reported results for the second quarter of 2014 and updated its strategic and operational plans.
- Achieved second quarter revenues of $120 million and EBITDA of $24.0 million;
- Continued to successfully implement global integration and consolidation activities; based upon strong results to date, finalizing synergy target to range of $8 to $10 million in annualized cost savings by year-end 2014;
- Expanded Local Sales organization and delivered new products;
- Reiterated 2014 financial outlook.
"In the second quarter, we continued to relentlessly focus on executing our strategic plan and further strengthened our platform for long-term sustainable growth," said Steve Richards, President and CEO of Mood Media. "Over the past 10 months we have worked steadfastly to engender a culture of accountability, and the entire Mood Media team is focused on improving the efficiency and consistency of our business. Notably, we are making significant progress on our strategies surrounding Local Sales, product and solutions development, and partnership expansion. During the second quarter, we continued to build out our Local Sales teams in North America and the international markets, launched new compelling services called Mood Mix and Mood Social Wifi and advanced our mobile solutions, all of which we expect will contribute to our future growth. Our cost savings initiatives are also beginning to deliver tangible returns and, based upon our strong execution to date, we are finalizing our annualized cost savings expectations to a range of $8 to $10 million by year-end 2014.
"We are gaining important traction with our visuals and mobile services," continued Mr. Richards. "In the first half of 2014 we signed our largest U.S. contracts to date and launched our first large-scale mobile promotion in conjunction with a major Premier brand. This positive momentum underscores the strength of our strategy and the results our focused efforts are producing. We believe we have taken consequential steps forward that will allow Mood Media to deliver on its full potential for both our clients and stakeholders. While the complete transformation of Mood Media will be an ongoing effort, we are energized as we take solid strides toward achieving these goals and targets. We look forward to continued success as we focus on building a great Company and realizing the potential we have before us."
Second Quarter Financial Results
The Company reported Q2 revenues of $120 million and EBITDA of $24 million. Net loss per share from continuing operations was ($0.18) compared with net loss of ($0.05) in the prior-year period. The Company's second quarter revenue and EBITDA performance was impacted by the sale of its Latin American residential operation, the revised terms of its affiliate agreement, lower equipment and recurring sales, and lower performance at Technomedia and BIS. These factors were partially offset by the benefits of integration and synergy programs that produced a reduction of $3.5 million in operating expenses in its North American and International operations for the quarter; however, these operating expense reductions were partially offset by increases due to the foreign exchange impact and expenses in the Company's BIS subsidiary.
Other expense totaled $10 million in the quarter compared with $8 million in the prior year. Other expense in the quarter related to restructuring, transaction and settlement expenses and was partially offset by gains on sale of non-core assets. Restructuring expense pertains to the Company's integration and synergy program. Transaction and settlement expenses relate to the cost of resolving amounts in connection with past acquisitions.
Key Performance Indicators
|Audio ARPU||$ 49.20||$ 47.19||$ 46.25||$ 45.65||$ 45.62||$ 46.17||$ 45.35||$ 45.17|
|Visual ARPU||$115.39||$ 89.78||$ 83.42||$ 89.21||$ 81.27||$ 84.30||$ 84.59||$ 85.08|
|Blended ARPU||$ 50.45||$ 48.28||$ 47.25||$ 46.87||$ 46.64||$ 47.23||$ 46.50||$ 46.40|
|Audio gross additions||47,488||11,599||9,960||9,208||9,765||40,532||10,112||6,981|
|Visual gross additions||5,180||1,092||699||497||1,219||3,507||478||996|
|Total gross additions||52,668||12,691||10,659||9,705||10,984||44,039||10,590||7,977|
|Audio monthly churn||0.8%||0.8%||0.9%||0.6%||0.8%||0.8%||1.1%||1.0%|
|Visual monthly churn||0.8%||1.4%||0.4%||0.4%||2.8%||1.3%||0.4%||0.4%|
|Total monthly churn||0.8%||0.8%||0.9%||0.6%||0.8%||0.8%||1.1%||0.9%|
In the second quarter, the number of total Company-owned sites declined by 1.6% year-over-year driven by a 2.0% decline in the number of audio sites and a 14.1% increase in the number of visual sites. The number of audio sites decreased moderately in North America and in its International operation. The number of visual sites increased in both operations.
Blended ARPU declined by 1.8% year-over-year in the second quarter to $46.40 per month and remained stable compared with the first quarter ARPU of $46.50. Audio ARPU decreased by 2.3% relative to the prior year to $45.17 while visual ARPU rose by 2.0% year-over-year to $85.08. Audio ARPU declined in North America and remained stable in its International operations. Visual ARPU increased in both North America and in its International operations.
Total monthly churn in the second quarter was 0.9% per month reflecting an improvement over first quarter churn of 1.1%. Audio churn of 1.0% per month improved relative to the first quarter in International operations while churn in North America remained stable. Visual churn remained stable at 0.4%.
As previously announced, the Company will hold a conference call on August 15 at 8:00 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 August 14, 2014, is a summary of our second quarter results, and should be read in conjunction with our second quarter 2014 MD&A and 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
INTERIM CONSOLIDATED STATEMENTS OF LOSS
For the three and six months ended June 30, 2014
In thousands of US dollars, unless otherwise stated
|Three months ended||Six months ended|
|Notes||June 30, 2014||June 30, 2013||June 30, 2014||June 30, 2013|
|Cost of sales (excludes depreciation and amortization)||53,346||54,476||110,770||113,163|
|Depreciation and amortization||17,526||16,496||36,040||34,220|
|Foreign exchange loss (gain) on financing transactions||1,766||(4,178)||760||1,857|
|Finance costs, net||7||27,794||15,970||41,520||10,494|
|Loss for the period before taxes||(32,831)||(8,871)||(40,896)||(7,449)|
|Income tax charge (credit)||8||(197)||499||(766)||6,891|
|Loss for the period from continuing operations||(32,634)||(9,370)||(40,130)||(14,340)|
|Loss after tax from discontinued operations||15||-||(10,984)||-||(14,736)|
|Loss for the period||(32,634)||(20,354)||(40,130)||(29,076)|
|Owners of the parent||(32,670)||(20,476)||(40,173)||(29,314)|
|Net loss per share|
|Basic and diluted||9||$(0.18)||$(0.12)||$(0.23)||$(0.17)|
|Basic and diluted from continuing operations||9||(0.18)||(0.05)||(0.23)||(0.08)|
|Basic and diluted from discontinued operations||9||0.00||(0.07)||0.00||(0.09)|
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 97% 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, financial condition, strategy and business prospects and opportunities. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they are inherently subject to significant uncertainties and contingencies and 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 Aug. 14, 2014 and Mood Media's annual information form dated March 28, 2014, 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 18 to the Interim Consolidated Financial Statements which provides Segment Information.
SOURCE Mood Media Corporation
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Jul. 23, 2016 05:30 PM EDT Reads: 1,950
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 05:30 PM EDT Reads: 1,702
"We provide DevOps solutions. We also partner with some key players in the DevOps space and we use the technology that we partner with to engineer custom solutions for different organizations," stated Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 05:30 PM EDT Reads: 1,516
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Jul. 23, 2016 05:15 PM EDT Reads: 631
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
Jul. 23, 2016 05:00 PM EDT Reads: 923
"Operations is sort of the maturation of cloud utilization and the move to the cloud," explained Steve Anderson, Product Manager for BMC’s Cloud Lifecycle Management, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 05:00 PM EDT Reads: 1,777
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
Jul. 23, 2016 04:45 PM EDT Reads: 886
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.
Jul. 23, 2016 04:30 PM EDT Reads: 660
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
Jul. 23, 2016 04:00 PM EDT Reads: 2,290
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
Jul. 23, 2016 04:00 PM EDT Reads: 1,801
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Jul. 23, 2016 04:00 PM EDT Reads: 1,963
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Jul. 23, 2016 03:45 PM EDT Reads: 1,489
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jul. 23, 2016 03:30 PM EDT Reads: 1,828
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 23, 2016 03:15 PM EDT Reads: 781
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 23, 2016 03:00 PM EDT Reads: 1,644