RR Media Reports Revenues of $33.1 Million for the Second Quarter 2015

ID: 1376060
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(businesspress24) - AIRPORT CITY BUSINESS PARK, ISRAEL -- (Marketwired) -- 07/31/15 -- (NASDAQ: RRM), a leading provider of global to the broadcast and media industries, today announced financial results for the second quarter ended June 30, 2015.

Satlink Communications and ESS acquisitions closed; integration expected to be completed by year end

Opened digital media center in the U.K. designed to provide a wide range of digital media solutions across Europe

Signed an agreement to deliver Italian government channels (RAI) to audiences worldwide

Revenues grew to $33.1 million, a 1.9% increase year-over-year

Gross margin of 21.7%, compared to 21.2% for Q2 2014

Gross margin of Content Management & Distribution reached 22.5%

Satlink and ESS expected to be accretive to margins in 2016, following completion of integration plans

GAAP net income of $0.01 per basic and diluted share

Non-GAAP net income of $0.07 per basic and diluted share

Positive cash flows from operations of $3.3 million

Total cash and cash equivalents of $13.2 million as of June 30, 2015

Board declared a cash dividend of $0.07 per share, an aggregate amount of approximately $1.2 million, representing an annual dividend yield of 4.0%.

Avi Cohen, CEO of RR Media, commented, "We are pleased with the results for the second quarter considering we continue to face macro-economic challenges in Russia and Western Europe throughout the first half of 2015. We view this as a temporary disruption to our business, and remain dedicated to maintaining strong customer relationships in the region so that we are able to quickly ramp our operations once the situation there improves.

"In the second quarter, we made significant progress building scale and expanding our geographic presence through the acquisitions of Satlink Communications and ESS. The immediate financial benefit of these acquisitions when comparing total results for sequential quarters is partially offset by the seasonality of our sports and live events business."

"Looking ahead, we are focused on leveraging the scale of our business, continuing our efforts to add upper tier customers and diversify our services to drive improved margins and revenue growth. New growth opportunities include the fully digital European media center recently opened in London, which enables us to provide a wide range of digital media solutions to our European customers as well as the expansion of our central European business leveraging the ESS acquisition. We also signed an agreement to deliver the Italian government channels RAI Italia, Rai News 24 and Rai World Premium to audiences worldwide," concluded Mr. Cohen.

Revenues for the second quarter of 2015 were $33.1 million, an increase of 1.9% compared with $32.5 million in the second quarter of 2014. Revenues for the second quarter of 2015 benefited from the recently acquired businesses, ESS and Satlink Communications; which was partially offset by the continued effect of the Euro/U.S. Dollar exchange rate and geopolitical issues in Russia. In addition, it is important to note that second quarter revenue is usually the slowest of the year, mainly due to the seasonality of the non-recurring sports and live events.

The Company reported $30.1 million of Content Management and Distribution Services revenue, excluding non-core revenue from MSS, an increase of 1.5% from $29.7 million in the second quarter last year and an increase of 9.1% from $27.6 million in the first quarter this year.

Gross profit for the second quarter of 2015 was $7.2 million compared to $6.9 million for the second quarter of 2014. Gross margin for the second quarter of 2015 was 21.7% compared to 21.2% for the second quarter of 2014. Gross margin for Content Management and Distribution Services increased slightly to 22.5% compared to 22.2% for the same period last year, despite the contributions of Satlink and ESS, which historically have lower gross margins.

Non-GAAP operating income was $1.5 million for the second quarter of 2015, compared to $1.3 million for the second quarter of 2014. Non-GAAP operating margin for the second quarter of 2015 was 4.5% compared to 4.0% for the same period last year. Non-GAAP operating income and non-GAAP operating margin for the second quarter of 2015 and 2014 exclude non-cash equity-based compensation charge, amortization of acquired intangible assets, cost of sales related changes in fair value of currency conversion derivatives, acquisition related expenses and amortization of acquisition related prepaid compensation expenses; and include the impact of fluctuations in foreign currency exchange rates.

GAAP net income for the second quarter of 2015 was $0.2 million, or $0.01 per fully diluted share, compared to $0.7 million, or $0.04 per fully diluted share, for the same period of 2014.

Non-GAAP net income for the second quarter of 2015 was $1.2 million, or $0.07 per fully diluted share, compared to $1.0 million, or $0.06 per fully diluted share, in the second quarter of 2014.

Adjusted EBITDA for the second quarter of 2015 was $3.7 million compared to $3.6 million in the second quarter of 2014.

Backlog to be delivered in the next 12 months as of June 30, 2015 increased to $93 million, up from $76 million as of March 31, 2015.

Cash, cash equivalents and marketable securities as of June 30, 2015 totaled $13.2 million compared with $22 million as of December 31, 2014. This reduction is cash was the result of the Satlink Communications and ESS acquisitions.

The Company is reiterating its full year 2015 and 2016 guidance. Management expects total revenues to be in the range of $140 million to $148 million for 2015, and $161 million to $171 million for 2016; with Adjusted EBITDA of $17.6 million to $20.4 million for 2015, and a year-over-year increase of 25% to 30% in Adjusted EBITDA for 2016. It is important to note that the results for the second half of 2015 will benefit from the inclusion of the full six month financial results for Satlink Communications and ESS, which were acquired earlier in the year.

Management continues to expect some level of variation in mix from quarter to quarter leading to some fluctuations in revenues and gross margin between quarters.

In accordance with the Company''s dividend policy, the Board of Directors declared a cash dividend in the amount of $0.07 per ordinary share and in the aggregate amount of approximately $1.2 million, representing an annual dividend yield of 4.0%. The dividend is payable on September 2, 2015 to all of the Company''s shareholders of record at the end of the trading day on NASDAQ on August 17, 2015.

Management will host a conference call to discuss the results at 9 a.m. ET (4 p.m. in Israel) on Friday, July 31, 2015.

Details are as follows:

Dial-in number from within the United States: 1-888-510-1785

Dial-in number from Israel: 1 80 924 5906

Dial-in number from the UK: 0 800 404 7655

Dial-in number (other international): 1-719-325-2354

Conference ID: 8151126

Playback, available until August 8, 2015 by calling 1-877-870-5176 (United States) or 1-858-384-5517 (international). Please use pin number 8151126 for the replay.

A live webcast is accessible at .

(NASDAQ: RRM) works in partnership with the world''s leading media providers to transform content into valuable media assets. RR Media''s complete ecosystem of digital media services maximize the potential of media and entertainment content, covering four main areas: smart global content distribution network with an optimized combination of satellite, fiber and the Internet; content management and channel origination; sports, news & live events; and online video services. RR Media provides scalable, converged digital media services to more than hundreds of broadcasters, content owners, sports leagues and right holders. The company manages and delivers more than 24,000 hours of broadcast content, more than 4,000 hours of online video and VOD content daily and more than 350 hours of premium sports and live events every day. The company delivers content to 95% of the world''s population reaching viewers of multiplatform operators, VOD platforms, online video and direct-to-home services. Visit the company''s website

This press release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements, including the risks indicated in our filings with the Securities and Exchange Commission (SEC). For more details, please refer to our SEC filings and the amendments thereto, including our Annual Report on Form 20-F for the year ended December 31, 2014 and our Current Reports on Form 6-K.

Shmulik Koren


CFO
Tel: +972 3 928 0777
Email:

KCSA Strategic Communications
Garth Russell / Elizabeth Barker
Tel: 212-896-1250 / 212-896-1203
Email:



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Date: 07/31/2015 - 05:00
Language: English
News-ID 1376060
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Firma: RR Media
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