RR Media Reports Record Revenues for the Third Quarter 2015
Record Revenues of $37.7 Million; Adjusted EBITDA of $5.1 Million for the Quarter
(firmenpresse) - AIRPORT CITY BUSINESS PARK, ISRAEL -- (Marketwired) -- 11/24/15 -- (NASDAQ: RRM), a leading provider of global to the broadcast and media industries, today announced financial results for the third quarter ended September 30, 2015.
Avi Cohen, CEO of RR Media, commented, "Since refocusing and a year ago rebranding our company, RR Media has been recognized by the market as a leading provider of advanced, innovative and scalable media services. As a result, we have delivered consistent growth and reported record revenues of $37.7 million for the third quarter of 2015. The next stage in our evolution is represented by the introduction of solaRR and solaRR Active, our open services platform we''ve built to virtualize our services. solaRR, which received broadbased customer interest at IBC2015, is an on premises and cloud-based hybrid platform that connects to all our infrastructure and technology and offers comprehensive, flexible, state-of-the-art, digital media services."
Closed a significant delivery contract with the Ethiopian Broadcast Corporation for the next 3 years. RR Media will facilitate and provide direct access to one of the most reliable satellites on its smart global network covering the African continent
Renewed and upgraded the contract with Fashion One Television for content delivery to North America, South America, Europe, Middle East and Asia-Pacific of multiple channels. Services were upgraded to include linear streaming which gets delivered to major online video platforms such as Daily Motion and YouTube
Renewed NFL worldwide delivery contract of preseason, season, playoffs and the Superbowl for three more years
Showcased solaRR, RR Media''s new open media service platform, at IBC2015
Expanded RR Media''s VOD platform population services adding seven new multi-country & multi-regional VOD platform delivery options to the over 100 platforms currently served. These include: Google Play, BT Vision, Talk Talk''s Blink Box TV, Amazon Prime Video, British Airways'' on demand entertainment system and others
Secured a major new contract with a global shipping company for deployment and provision of Inmarsat''s high-throughput connectivity services
Contract to generate approximately $25 million in revenue over the next 5 years
Record revenues of $37.7 million, a 13.9% increase year-over-year
Gross margin of 22%, in line with Q3 2014
Gross margin of Content Management & Distribution reached 22.9%
Satlink and ESS expected to be accretive to margins in 2016, following completion of integration plans
GAAP net income of $0.18 and $0.17 per basic and diluted share respectively
Non-GAAP net income of $0.11 per basic and diluted share
Strong positive cash flows from operations of $5.0 million
Total cash and cash equivalents of $14.3 million as of September 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%.
"We are constantly increasing the scale of our business and expanding our service capabilities organically and through acquisitions, including the acquisitions of ESS and Satlink earlier this year. The integration of ESS and Satlink is on track to be completed by the end of 2015, at which point we expect to see improved margins. We also achieved notable success in our non-core MSS segment, which won a major new contract to deploy high-throughput connectivity services to one of the world''s largest shipping companies, through which we expect to generate approximately $25 million in revenue over the next five years," continued Mr. Cohen.
"As our company has evolved, our addressable market has expanded dramatically. We are currently working with a number of upper-tier customers, managing higher-volume orders and the broad distribution of their media content. One of our higher profile successes is our ongoing worldwide relationship with the NFL, which was recently extended for an additional three years. The success of these customer engagements opens up broader opportunities within their businesses and with other upper-tier companies that recognize the benefits our platform offers in terms of access to technology, increased distribution and cost savings," concluded Mr. Cohen.
Revenues for the third quarter of 2015 were $37.7 million, an increase of 13.9% compared with $33.1 million in the third quarter of 2014. Revenues for the third quarter of 2015 benefited from the recently acquired businesses, ESS and Satlink Communications, and from a major new contract with a global shipping company.
The Company reported $34.4 million of Content Management and Distribution Services revenue, excluding non-core revenue from MSS, an increase of 14% from $30.2 million in the third quarter last year. The Company reported $3.2 million of Mobile Satellite Services ("MSS") revenue, an increase of 12.8% from $2.9 million in the third quarter last year. This increase was mainly attributable to a new contract with a major shipping company estimated to contribute approximately $25 million over the next 5 years. The contract is for the deployment and provision of Inmarsat''s high-throughput connectivity services across the customer''s fleet of shipping vessels.
Gross profit for the third quarter of 2015 was $8.3 million compared to $7.3 million for the third quarter of 2014. Gross margin for the third quarter of 2015 remained relatively flat at 22% compared to the third quarter of 2014. Gross margin for Content Management and Distribution Services increased slightly to 22.9% compared to 22.7% for the same period last year, despite the contributions of Satlink and ESS, which historically have lower gross margins.
Net income for the third quarter of 2015 was $3.0 million, or $0.17 per fully diluted share, compared to $1.1 million, or $0.07 per fully diluted share, for the same period of 2014.
Adjusted EBITDA for the third quarter of 2015 was $5.1 million compared to $4.2 million in the third quarter of 2014. Adjusted EBITDA for the third 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, contingent consideration in respect of acquisition; and include the impact of fluctuations in foreign currency exchange rates.
Backlog to be delivered in the next 12 months as of September 30, 2015 increased to $104 million compared with $93 million in June 30, 2015. Total back log increased to $262 million mainly due to the major contract signed in the MSS segment.
Cash, cash equivalents and marketable securities as of September 30, 2015 was $14.3 million, compared with $22 million as of December 31, 2014. This reduction in cash reflects the acquisitions of Satlink Communications and ESS earlier in the year.
The Company is revising its full year 2015 guidance and now expects total revenues to be in the range of $140 million to $143 million and Adjusted EBITDA of $17.6 million to $20.4 million for 2015. The Company reiterated its 2016 guidance of $161 million to $171 million for 2016, 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 2015 will benefit from the inclusion of the full seven month financial results for Satlink Communications and eight months of 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 December 23, 2015 to all of the Company''s shareholders of record at the end of the trading day on NASDAQ on December 7, 2015.
Management will host a conference call to discuss the financial results at 9 a.m. ET and 4 p.m. IL today.
Details are as follows:
Dial-in number from within the United States: 1-888-510-1786
Dial-in number from Israel: 1 80 924 5906
Dial-in number from the UK: 0 800 404 7655
Dial-in number (other international): 1-719-325-2308
Conference ID: 678864
An archive of the call will be available from November 24, 2015 to December 1, 2015 by calling 1-877-870-5176 (United States) or 1-858-384-5517 (international). Please use pin number 678864 for the replay.
A live webcast will also be accessible at or .
(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 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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Datum: 24.11.2015 - 06:00 Uhr
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