News Feed Item

Mood Media Reports Second Quarter 2014 Financial and Operating Results

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.

Recent Highlights

  • 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

  2012 Q1.13 Q2.13 Q3.13 Q4.13 2013 Q1.14 Q2.14
 Audio sites  427,714 428,835 427,038 428,085 428,095 428,095 423,796 418,513
 Visual sites  10,929 11,552 12,115 12,479 12,666 12,666 12,997 13,821
 Total sites  438,643 440,387 439,153 440,564 440,761 440,761 436,793 432,334
 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%.

Conference Call
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

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
Continuing operations                
Revenue 5 $119,881   $126,268   $242,871   $255,355
  Cost of sales (excludes depreciation and amortization)   53,346   54,476   110,770   113,163
  Operating expenses   42,510   44,134   84,726   88,572
  Depreciation and amortization   17,526   16,496   36,040   34,220
  Share-based compensation 13 (204)   325   612   688
  Other expenses 6 9,974   7,916   9,339   13,810
  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)
Discontinued operations                
Loss after tax from discontinued operations 15 -   (10,984)   -   (14,736)
Loss for the period   (32,634)   (20,354)   (40,130)   (29,076)
Attributable to:                
Owners of the parent   (32,670)   (20,476)   (40,173)   (29,314)
Non-controlling interests   36   122   43   238
    $(32,634)   $(20,354)   $(40,130)   $(29,076)
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

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
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
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.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected]orldexpo.com. Miami Blockchain Event by FinTechEXPO also offers s...
@DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises - and delivering real results.
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
"We started a Master of Science in business analytics - that's the hot topic. We serve the business community around San Francisco so we educate the working professionals and this is where they all want to be," explained Judy Lee, Associate Professor and Department Chair at Golden Gate University, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...