RR Media Reports Record Revenues of $140.3 Million for the Full-Year 2015
4Q 2015 Revenues Increased 19% to $39 Million; GAAP EPS for 4Q 2015 of $0.20 per Diluted Share, Compared to $0.09 per Diluted Share for 4Q 2014; Pending Merger With SES Platform Services Expected to Be Completed During Q2/Q3 2016
(firmenpresse) - AIRPORT CITY BUSINESS PARK, ISRAEL -- (Marketwired) -- 03/02/16 -- (NASDAQ: RRM), a leading provider of global to the broadcast and media industries, today announced financial results for the fourth quarter and year ended December 31, 2015.
Avi Cohen, CEO of RR Media, commented, "In 2015, we significantly scaled our business by expanding our service offerings including the introduction of our unique service platform -- solaRR and entering new territories. We are already seeing the benefits of this expansion reflected in our full year financial results, with record revenues of $140.3 million and Adjusted EBITDA of $18.5 million. As a result, we generated $19.7 million in cash for the year, finishing the period with $18.8 million in cash and cash equivalents, providing a solid foundation from which to fuel future growth."
Mr. Cohen continued, "The fourth quarter saw nearly the full financial benefit of the Satlink and ESS acquisitions, including improved margins, as we completed the integration of both companies during the quarter within the expected time frame. These acquisitions complement the investments we made in our proprietary technologies."
"We are receiving positive market feedback for solaRR, our virtualized and scalable open services platform launched in 2015, which positions us as a first-class provider of a wide range of digital media services provided on premises as well as in the cloud. To augment this, we expanded our solaRR capabilities with the launch of solaRR Active which caters to the fast-growing sports market, a key focus area for RR Media. This revolutionary technology platform not only further distinguishes us from our competition, but also positions us to better service upper-tier customers, thereby generating higher volume orders and better margins. In the fourth quarter, two of these upper-tier customers started using solaRR. As a result of our new capabilities and increased market presence, we are attracting a greater number of larger customers, which provide even greater growth opportunities."
"Our recently announced merger with SES Platform Services highlights the value we have built in our business by providing RR Media shareholders a 52% premium to the share price prior to announcing the agreement. We expect to complete the merger during Q2/Q3 2016," concluded Mr. Cohen.
Partnered with Pi Telecom to provide a new value-added online sports platform for sports organizations
Unveiled solaRR Active, a customized sports media service platform, which enables sports organizations to maximize exposure and increase revenues through a full range of media services
Integration of Satlink Communications and ESS completed and expected to positively impact margins in 2016
Strong positive cash flows from operations of $9.3 million, compared to $2.7 million in Q4 2014
Repaid $0.75 million of debt under the credit facilities this quarter, strengthening the balance sheet by reducing total debt to $13.5 million
Board declared a cash dividend of $0.07 per share, an aggregate amount of approximately $1.2 million, representing an annual dividend yield of 3.3%
Revenues for the fourth quarter of 2015 were $39.0 million, an increase of 19% compared with $32.8 million in the fourth quarter of 2014. Revenues for the fourth quarter of 2015 benefited from the recently acquired businesses, ESS and Satlink Communications.
The Company reported $36 million of Content Management and Distribution Services revenue, excluding non-core revenue from MSS, an increase of 20% from $29.9 million in the fourth quarter last year. The Company reported $3.0 million of Mobile Satellite Services ("MSS") revenue, up from $2.9 million in the fourth quarter in the prior year.
Gross profit for the fourth quarter of 2015 was $9.5 million compared to $7.9 million for the fourth quarter of 2014. Gross margin for the fourth quarter of 2015 remained relatively flat at 24% compared to the fourth quarter of 2014. Gross margin for Content Management and Distribution Services remained flat at 25.3% compared to the same period last year, despite the contributions of Satlink and ESS, which historically have lower gross margins.
Net income attributable to shareholders for the fourth quarter of 2015 was $3.6 million, or $0.20 per fully diluted share, compared to $1.5 million, or $0.09 per fully diluted share, for the same period of 2014.
Adjusted EBITDA for the fourth quarter of 2015 was $6.1 million compared to $4.3 million in the fourth quarter of 2014. Adjusted EBITDA for the fourth quarter of 2015 and 2014 excludes 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.
Cash, cash equivalents and marketable securities as of December 31, 2015 was $18.8 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.
Revenues for the full year 2015 were $140.3 million, an increase of 6.9% compared with $131.2 million in the year 2014. Revenues for the full year of 2015 benefited from the acquisitions of ESS, which was completed on April 29, 2015, and acquisition of Satlink Communications which was completed on June 5, 2015.
The Company reported $128.1 million of Content Management and Distribution Services revenue, excluding non-core revenue from MSS, an increase of 6.9% from $119.8 million in the prior year period. The Company reported $12.3 million of Mobile Satellite Services ("MSS") revenue, up from $11.5 million in the year 2014.
Gross profit for the full year 2015 was $32.2 million compared to $30.1 million for the full year 2014. Gross margin for the full year 2015 remained flat year over year at 22.9%.
Net income attributable to shareholders for the full year 2015 was $7.8 million, or $0.44 per fully diluted share, compared to $5.1 million, or $0.29 per fully diluted share, for the same period of 2014.
Adjusted EBITDA for the full year 2015 was $18.5 million compared to $17.2 million in the full year 2014. Adjusted EBITDA for the years 2015 and 2014 excludes 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 December 31, 2015 remained flat at $101 million compared with $104 million in September 30, 2015. Total back log is at $244 million.
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 3.3%. The dividend is payable on March 30, 2016 to all of the Company''s shareholders of record at the end of the trading day on NASDAQ on March 14, 2016.
On February 26, 2016, RR Media announced that it has agreed to be acquired by SES (NYSE Euronext Paris and Luxembourg Stock Exchange: SESG) and will merge its activities with SES Platform Services ("SES PS") to form a new world-leading provider of media solutions.
SES will acquire a 100% ownership of RR Media, paying $13.291 per share, or a 52% premium to the closing price of the Company''s shares on February 25, 2016. This corresponds to an Enterprise Value of $242 million. The acquisition of RR Media by SES S.A. has been approved by the Boards of Directors of both companies, and is subject, among others, to regulatory approvals and the approval by the general meeting of shareholders of RR Media, which are expected to be completed in the second or third quarter of 2016.
Once the transaction is completed, RR Media and SES PS will join forces to create a new, stand-alone world-leading media services provider. The new organisation will offer full continuity and enhanced service to SES PS and RR Media''s existing customers.
In light of the pending merger with SES PS, RR Media has cancelled the conference call to discuss its fourth quarter 2015 results and the outlook for its business.
(NASDAQ: RRM) works in partnership with the world''s leading media players 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 1,000 broadcasters, content owners, sports leagues and right holders. Every day, the company manages and delivers over 24,000 hours of broadcast content, over 4,000 hours of online video and VOD content and over 350 hours of premium sports and live events. 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 include, but are not limited to, statements about the expected timing of the transaction, the satisfaction or waiver of any conditions to the proposed transaction, anticipated benefits, growth opportunities and other events relating to the proposed transaction, projections about RR Media''s business and its future revenues, expenses and profitability. 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 (1) RR Media may be unable to obtain required regulatory approvals or satisfy other conditions to the closing of the proposed transaction; (2) the proposed transaction may involve unexpected costs, liabilities or delays; (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (4) the ability to recognize benefits of the proposed transaction; (5) risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction; (6) impact of the transaction on relationships with customers, distributors and suppliers and (7) other risks to consummation of the transaction, including the risk that the transaction will not be consummated within the expected time period or at all, as well as 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.
In connection with the proposed transaction, RR Media intends to mail a proxy statement to its shareholders and furnish a copy of the proxy statement with the SEC on Form 6-K. Shareholders of RR Media are urged to read the proxy statement and the other relevant material when they become available because they will contain important information about RR Media, SES, the proposed transaction and related matters. Shareholders are urged to carefully read the proxy statement and other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction. The proxy statement (when available) may be obtained for free at the SEC''s website at . In addition, the proxy statement will be available, without charge, at RR Media''s website at .
This press release is neither a solicitation of proxy, an offer to purchase nor a solicitation of an offer to sell shares of RR Media.
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: 02.03.2016 - 08:37 Uhr
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