RR Media Reports Revenues of $35.6 Million for the First Quarter 2016
1Q 2016 Revenues Increased 17% Year-Over-Year; GAAP EPS for 1Q 2016 of $0.07 per Diluted Share, Compared to $0.05 Per Diluted Share for 1Q 2015; Pending Merger With SES Platform Services Expected to Be Completed in Mid-2016
(firmenpresse) - AIRPORT CITY BUSINESS PARK, ISRAEL -- (Marketwired) -- 05/18/16 -- (NASDAQ: RRM), a leading provider of global to the broadcast and media industries, today announced financial results for the first quarter ended March 31, 2016.
On February 26, 2016, RR Media announced that it has agreed to be acquired by SES (EURONEXT PARIS: SESG) (LUXEM: 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 was overwhelmingly approved on April 12, 2016 at a special meeting of RR Media shareholders, and was previously approved by SES S.A. and RR Media''s Boards of Directors. The acquisition is still subject to, among others, regulatory approvals, which are expected to be completed in the second or third quarter of 2016.
Once and assuming 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.
Agreed to be acquired by SES (EURONEXT PARIS: SESG) (LUXEM: SESG) and merge its activities with SES Platform Services ("SES PS")
Renewed and upgraded contract with Fashion One television network, the premier international fashion, entertainment and lifestyle broadcaster
Selected for Eutelsat''s African satellite broadband initiative
Appointed Mr. Ayal Shiran to Chairman of the Board of Directors
Expanded European operations with appointment of David Treadway as the joint Managing Director for Europe
As per the agreement with SES regarding its pending acquisition of RR Media:
RR Media did not pay a dividend for the quarter ended March 31, 2016, and
RR Media did not acquire any of its ordinary shares during the first quarter of 2016 through the previously-announced share repurchase program.
Revenues for the first quarter of 2016 were $35.6 million, an increase of 16.7% compared with $30.5 million in the first quarter of 2015. Revenues for the first quarter of 2016 benefited from the ESS and Satlink Communications acquisitions.
The Company reported $32.6 million of Content Management and Distribution Services revenue, excluding non-core revenue from MSS, an increase of 18.1% from $27.6 million in the first quarter last year. The Company reported $3.0 million of Mobile Satellite Services ("MSS") revenue, which was relatively flat compared with the prior year period.
Gross profit for the first quarter of 2016 was $7.1 million compared to $7.2 million for the first quarter of 2015. Gross margin for the fourth quarter of 2015 was 20%, compared with 23.6% in the first quarter of 2015. Gross margin for Content Management and Distribution Services decreased to 20.7%, compared with 24.9% in the same period last year, as a result of the contributions of Satlink and ESS, which historically have lower gross margins.
Net income attributable to shareholders for the first quarter of 2016 was $1.2 million, or $0.07 per fully diluted share, compared to $0.9 million, or $0.05 per fully diluted share, for the same period of 2015, an increase of 33.3%.
Adjusted EBITDA for the first quarter of 2016 was $4.2 million compared to $3.6 million in the first quarter of 2015. Adjusted EBITDA for the first quarter of 2016 and 2015 excludes non-cash equity-based compensation charge, amortization of acquired intangible assets, acquisition related expenses and amortization of acquisition related prepaid compensation expenses, and include the impact of fluctuations in foreign currency exchange rates.
Cash, cash equivalents and marketable securities as of March 31, 2016 was $15.2 million, compared with $18.8 million as of December 31, 2015. This reduction in cash was mainly due to payment of dividend, repayment of bank loans, investment in fix and intangible assets and reduction in revenues in the quarter.
Backlog to be delivered in the next 12 months increased to $100 million, up from $76 million in the first quarter of 2015 and flat from $101 Million at the end of the fourth quarter of 2015. Total backlog is at $231 million.
In light of the pending merger with SES PS, RR Media will not host a conference call to discuss its first quarter 2016 results.
RR Media (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 completion of the proposed merger with SES and the timing thereof, the satisfaction or waiver of any conditions to the proposed merger, anticipated benefits, growth opportunities and other events relating to the proposed merger, and RR Media''s plans, objectives and expectations for future operations, including its projected results of operations. 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. Factors that could cause actual events, results, performance, circumstances or achievements to differ from such forward-looking statements include, but are not limited to, the following: (1) RR Media may not be able to satisfy all of the conditions to the closing of the proposed merger; (2) the proposed merger may involve unexpected costs, liabilities or delays; (3) RR Media''s business may suffer as a result of uncertainty surrounding the proposed merger and diversion of management attention on transaction-related matters; (4) the outcome of any legal proceedings related to the proposed merger; (5) RR Media may be adversely affected by other economic, business, and/or competitive factors; (6) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (7) difficulties in recognizing benefits of the proposed merger; (8) the proposed merger may disrupt current plans and operations and raise difficulties for employee retention; (9) impact of the merger on relationships with customers, distributors and suppliers; (10) other risks to consummation of the merger, including the risk that the merger will not be consummated within the expected time period or at all; and (11) the potential requirement for RR Media to pay a termination fee in connection with its failure to consummate the merger. 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, 2015 and our Reports of Foreign Private Issuer 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:
RR Media Ltd
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Datum: 18.05.2016 - 05:00 Uhr
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