Mood Media Reports 2012 Revenues of $444 million and EBITDA of $112 million
TORONTO, March 28, 2013 /PRNewswire/ - Mood Media Corporation (ISIN: CA61534J1057) (TSX:MM ) (LSE AIM:MM), one of the world's largest integrated providers of in-store customer solutions and experiences, today reported its 2012 and fourth quarter financial results for the period ended December 31, 2012.
The Company reported revenues of $132 million in the fourth quarter, a 51% increase versus the prior year's quarter, driven by acquisitions, improvements in recurring revenues in the North America and International reporting segments, growth in equipment revenues and rising blended ARPU. For 2012, revenues reached $444 million.
EBITDA in the fourth quarter remained flat relative to the prior year's quarter at $28 million reflecting acquisitions, improvements in recurring subscription and equipment revenues, offset by higher content expenses as well as lower equipment margins. In 2012, EBITDA increased 35% to $112 million.
The Company also announced it is implementing immediately a comprehensive operating and productivity program aimed at delivering improved business results. The program is designed to enhance the Company's efficiency, flexibility and innovation. It will be customer facing and will produce streamlined operating capabilities.
"We are incredibly proud of the organization we have built over the last two years," said Lorne Abony, Chairman and CEO of Mood Media. We have all the capabilities to deliver truly outstanding customer experiences across a broad range of solutions for our leading clients. The strength of our Company's solutions is clearly evident in the continuing positive momentum in our customer base in Q4."
"While we have made great strides so far, there is room for improvement. We are focused on realizing the full potential of the opportunities ahead by continuing to accelerate our solutions offering and by successfully implementing our operational plans."
Selected Financial Information
| Three months ended | Year ended | |||||
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December 31, 2012 |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 |
December 31, 2010 |
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| Continuing operations | ||||||
| Revenue | $131,946 | $87,676 | $443,823 | $274,771 | $79,009 | |
| Expenses: | ||||||
| Cost of sales (excludes depreciation and amortization) | 61,045 | 29,263 | 183,759 | 95,091 | 24,220 | |
| Operating expenses | 42,924 | 29,998 | 148,404 | 96,967 | 32,642 | |
| Depreciation and amortization | 17,839 | 13,764 | 57,856 | 42,047 | 10,164 | |
| Share-based compensation | 866 | 1,215 | 3,758 | 3,175 | 732 | |
| Other expenses | 15,444 | 3,699 | 39,812 | 22,790 | 14,601 | |
| Foreign exchange (gain) loss on financing transactions | (4,195) | 6,519 | (1,428) | 5,067 | (8,153) | |
| Finance costs, net | 9,529 | 8,408 | 51,045 | 61,350 | 28,481 | |
| Loss for the period before taxes | (11,506) | (5,190) | (39,383) | (51,716) | (23,678) | |
| Income tax charge (credit) | 2,438 | 2,391 | (14,219) | 545 | (2,063) | |
| Loss for the year from continuing operations | (13,944) | (7,581) | (25,164) | (52,261) | (21,615) | |
| Discontinued operations | ||||||
| Profit (loss) after tax from discontinued operations | (13,203) | (23) | (54,067) | (7,644) | 22 | |
| Loss for the year | (27,147) | (7,604) | (79,231) | (59,905) | (21,593) | |
| Attributable to: | ||||||
| Owners of the parent | (27,291) | (7,605) | (79,502) | (59,951) | (21,706) | |
| Non-controlling interests | 144 | 1 | 271 | 46 | 113 | |
| (27,147) | $(7,604) | (79,231) | $(59,905) | $(21,593) | ||
| Net earnings (loss) per share: | ||||||
| Basic and diluted | $(0.16) | $(0.06) | $(0.50) | $(0.48) | $(0.24) | |
| Basic and diluted from continuing operations | (0.08) | (0.06) | (0.16) | (0.42) | (0.24) | |
| Basic and diluted from discontinued operations | (0.08) | 0.00 | (0.34) | (0.06) | 0.00 | |
| December 31, 2012 | December 31, 2011 | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
| Total assets | $947,781 | $722,109 | $367,347 | |||||||||||||||||||||||||||||||||||
| Total non-current liabilities | 657,320 | 548,801 | 191,331 | |||||||||||||||||||||||||||||||||||
Pro Forma Key Performance Indicators - 2012
| Q1.12 | Q2.12 | Q3.12 | Q4.12 | 2012 | |
| Subscriber locations (Company owned) | 432,428 | 431,527 | 430,874 | 434,501 | 434,501 |
| Visual gross subscriber additions | 710 | 1,134 | 1,380 | 4,196 | 7,420 |
| Blended ARPU | $59.22 | $59.94 | $59.37 | $60.29 | $59.70 |
| Blended Churn | 0.72% | 0.87% | 0.70% | 0.68% | 0.74% |
Pro Forma Key Performance Indicators - 2011
| Q1.11 | Q2.11 | Q3.11 | Q4.11 | 2011 | |
| Subscriber locations (Company owned) | 420,075 | 420,421 | 425,635 | 431,759 | 431,759 |
| Visual gross subscriber additions | 339 | 462 | 524 | 715 | 2,040 |
| Blended ARPU | $58.18 | $58.52 | $57.39 | $57.97 | $58.01 |
| Blended Churn | 0.82% | 0.78% | 0.59% | 0.63% | 0.70% |
Pro forma key performance indicators express the results of all ongoing businesses presently owned and reflected as if ownership had occurred on January 1, 2011.
This earnings release, which is current as of March 28, 2013, is a summary of our 2012 annual and fourth quarter results, and should be read in conjunction with our 2012 MD&A and our 2012 Audited Annual Consolidated Financial Statements and Notes thereto and our other recent filings with securities regulatory authorities in Canada and the United Kingdom.
The financial information presented herein has been prepared on the basis of IFRS for interim financial statements and is expressed in United States dollars unless otherwise stated.
This news release includes certain non-IFRS financial measures. Mood Media uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS and therefore may not be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.
In this earnings release, the terms "we", "us", "our", "Mood Media" and "the Company" refer to Mood Media Corporation and our subsidiaries.
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 570,000 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 March 28, 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 Corporation 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
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