LOUISVILLE, Ky., May 15, 2017 /PRNewswire/ -- Creative Realities, Inc. ("Creative Realities," "CRI," or the "Company") (OTCQB: CREX), a leading provider of digital marketing solutions, announced its financial results for the quarter ended March 31, 2017.
Rick Mills, Chief Executive Officer, remarked, "We are pleased to report that total revenue for the quarter exceeded the top end of guidance. This significant growth over 2016 highlights our team's strong execution against CRI's strategic plan, and puts us well on track to achieving previously announced guidance of $26 million for the year."
First Quarter Financial Highlights
- Revenues were $6.4 million for the three-month period ended March 31, 2017, an increase of 164% compared to the same period in 2016, and up 17% sequentially
- Gross profit was $2.8 million for the first quarter 2017, up $1.7 million, or 149%, from the corresponding period in the prior year
- Gross margin was 44% of revenue for the first quarter of 2017, compared with 47% in the prior year, due to a less favorable mix of non-recurring projects
- CRI generated operating profit of $123 thousand and adjusted EBITDA of $525 thousand
- Cash and cash equivalents increased to $3.4 million, compared to $1.4 million as of December 31, 2016, due to the collection of receivables and receipt of license payments
- A large non-cash gain below the operating line of $866 thousand was relating to the settlement of debt and dissolution of Broadcast International, Inc. in May 2016
Mr. Mills continued, "Our expanded sales and marketing team has been extremely active, landing new logos and expanding business with existing customers. Our pipeline has never been stronger, and while execution against the pipeline can be lumpy from quarter to quarter, we are on track for significant growth in revenue and profitability in 2017. Armed with a drastically improved balance sheet compared to a year ago, CRI is well positioned for long-term organic and acquisition growth."
2017 Financial Guidance
The Company is reaffirming its 2017 financial guidance provided in connection with an investor presentation at a financial conference in January 2017 (which is available on our website at www.cri.com).
- Organic revenue growth (i.e. excluding acquisitions) to exceed 90%, equivalent to FY17 revenue of $26 million.
Conference Call Details
The Company will host a conference call to review the results and provide additional commentary about the Company's recent performance, which is scheduled for Tuesday, May 16, 2017 at 9:00 am Eastern Time.
Prior to the call, participants should register at http://bit.ly/criearnings2017q1. Once registered, participants can use the weblink provided in the registration email to dial-in by phone or use your computer to listen to the live webcast.
Following the live webcast, a replay will be available approximately two hours after the webcast on our website at www.cri.com for at least 30 days.
About Creative Realities, Inc.
Creative Realities helps retailers and brands use the latest technologies to inspire shopper engagement in and around the Store. Founded 16 years ago, the firm's evolving client base has led to recognized leadership in deploying technology aligned with strategic and consumer behavior goals at Retail. The firm has created and delivered consumer/shopper experiences, designs and installs high-end audio-visual networks, and is actively providing recurring SaaS and support services across diverse categories: Automotive, Apparel & Accessories, Banking, Baby/Children, Beauty, CPG, Department Stores, Digital Out-of-Home (DOOH), Electronics, Fashion, Fitness, Foodservice/QSR, Financial Services, Gaming, Luxury, Mass Merchants, Mobile Operators, and Pharmacy Retail.
Cautionary Note on Forward-Looking Statements
This press release contains certain statements that would be deemed "forward-looking statements" under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and includes, among other things, discussions of our business strategies, future operations and capital resources. Words such as "may," "likely," "anticipate," "expect" and "believe" indicate forward-looking statements.
These forward-looking statements may reflect management's present expectations and estimates regarding future expenses, revenue and profitability, trends affecting our financial condition and results of operations, operating efficiencies, revenue opportunities, potential new markets, and the ability of the Company to effectively compete in a highly competitive market. Nevertheless, and despite the fact that management's expectations and estimates are based on assumptions management believes to be reasonable and data management believes to be reliable, the Company's actual results, performance, or achievements are subject to future risks and uncertainties, any of which could materially affect the Company's actual performance. Risks and uncertainties that could affect such performance include, but are not limited to: the adequacy of funds for future operations; future expenses, revenue and profitability; trends affecting financial condition and results of operations; ability to convert proposals into customer orders; the ability of customers to pay for products and services; the impact of changing customer requirements upon revenue recognition; customer cancellations; the availability and terms of additional capital; ability to develop new products; dependence on key suppliers, manufacturers and strategic partners; industry trends and the competitive environment; the impact of the Company's financial condition upon customer and prospective customer relationships; and the impact of losing one or more senior executives or failing to attract additional key personnel. These and other risk factors are discussed in Company reports filed with the Securities and Exchange Commission.
Given these uncertainties, and the fact that forward-looking statements represent management's estimates and assumption as of the date of this press release, you should not attribute undue certainty to these forward-looking statements. We assume no obligation to update any forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in any forward-looking statements contained in this press release, even if new information becomes available in the future.
Investor Relations Contact:
Chief Operating Officer & Chief Financial Officer
Creative Realities, Inc.
Tel: (949) 228-7777
SOURCE Creative Realities, Inc.