Mood Media provides preliminary fourth quarter and full year 2013 financial results
Company to host conference call on March 6, 2014 to discuss financial results
TORONTO, Feb. 28, 2014 /PRNewswire/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX: MM) (LSE AIM: MM) ("Mood Media" or the "Company") today announced preliminary financial results for the fourth quarter and full year ended December 31, 2013. The Company also announced that it plans to host a conference call on March 6, 2014 at 8:30 a.m. EST to discuss the financial results for its fourth quarter and full year 2013.
For the fourth quarter of 2013, preliminary revenues are expected to total approximately $132 million, which is consistent with the $132 million in revenues that Mood Media reported for the fourth quarter of 2012 and a 5% improvement compared with third quarter 2013 revenues of $126 million. The sequential improvement in revenues was largely attributable to the Company's improved performance for sale of goods revenues related to new audio/visual systems implementations.
Fourth quarter 2013 preliminary EBITDA is expected to be approximately $24 million compared with $28.0 million reported in the fourth quarter of 2012 and $25.9 million reported in the third quarter of 2013. EBITDA in the fourth quarter was impacted by more than $4 million in non-recurring expenses as well as by lower equipment gross margins resulting from a high level of large-systems installations that were sold in prior periods and installed in the fourth quarter. The Company has since de-emphasized this equipment activity.
In addition, the previously announced agreement between the Company and its U.S. affiliates that was entered into in July 2013 in order to permit the integration of Muzak and DMX led to higher than anticipated expenses in the fourth quarter and will recur in future quarters. These incremental expenses reflect the costs related to transferring certain revenues to independent Muzak affiliates. Going forward, Mood expects to incur a quarterly incremental expense of approximately $750 thousand for the DMX account base that has now migrated to independent affiliates.
Both preliminary revenues and EBITDA are subject to Mood Media's normal year-end accounting procedures and audit adjustments. Steve Richards, President and CEO of Mood Media, commented "Our entire organization has been focused on driving the significant change at Mood necessary to build a strong foundation for future growth. We strongly believe that Mood is making swift and important progress in implementing its operating strategy to better position the business for long-term growth and profitability. We look forward to realizing the benefit of these changes and efficiencies in the back half of 2014 and believe that these efforts, coupled with the continued execution of our Wave Programs and other operating initiatives, position Mood for enhanced performance."
The Company also announced that it will hold a conference call to discuss its fourth quarter and full year 2013 financial results with the investment community on Thursday March 6 at 8:30 a.m. EST.
Participants will include Steve Richards, President & Chief Executive Officer, and Tom Garrett, Executive Vice-President and Chief Financial Officer.
To participate, please dial 416-764-8658 or toll free at 1-888-886-7786. A replay will be available following the teleconference by dialing 416-764-8691 or toll free at 1-877-674-6060 and entering passcode 035960.
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 100% 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, and business prospects and opportunities. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they 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 November 14, 2013 and Mood Media's annual information form dated March 28, 2013, 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 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.
SOURCE Mood Media Corporation