LAS VEGAS, Nov. 14, 2016 /PRNewswire/ -- Remark Media (NASDAQ: MARK), a global digital media technology company, reported its financial results for the third quarter of 2016.
Kai-Shing Tao, Remark Media's Chairman and CEO, stated: "During the third quarter of 2016, we drove meaningful year-over-year growth in net revenue, which reflects the addition of Vegas.com to our digital media portfolio as well as the enhancements we have made to the asset over the last year. Further enhancing our portfolio, in September of this year we acquired FansTang, which adds significant synergies to our entire asset base as well as an additional revenue stream.
We have also continued our focus on growing and developing KanKan into a unique and powerful source of consumer data with near-term monetization opportunities. In fact, we are preparing to launch our first KanKan business-to-business product with a financial services customer in the fourth quarter of this year, with first revenues expected in early 2017. While this is a significant milestone for us, we are pursuing many additional opportunities to leverage this unique and powerful data intelligence platform with customers in multiple industries including finance, travel, retail and entertainment. As we look ahead, we are more excited than ever about our ability to expand our leadership position in global consumer data intelligence and monetize our offerings in that arena."
Financial Results for the Three Months Ended September 30th: 2016 Compared to 2015
The financial results for the third quarter of 2016 reflect the operating results of Vegas.com, which was acquired in September 2015.
Net revenue was $15.1 million, compared to $0.8 million.
Total cost and expense was $19.3 million, compared to $10.1 million.
Operating loss was $4.2 million, compared to $9.3 million.
Net loss was $15.3 million, or $0.75 per diluted share, and included a loss on extinguishment of debt of $9.2 million. This compares to $11.1 million, or $0.75 per diluted share.
At September 30, 2016, the cash and cash equivalents balance was $5.3 million, and total restricted cash was $11.7 million, bringing the total combined cash position to $17.0 million.
Financial Results for the Nine Months Ended September 30th: 2016 Compared to 2015
The financial results for the 2016 nine-month period reflect the operating results of Vegas.com, which was acquired in September 2015.
Net revenue was $44.4 million, compared to $2.4 million.
Total cost and expense was $57.2 million, compared to $17.8 million.
Operating loss was $12.9 million, compared to $15.4 million.
Net loss was $23.1 million, or $1.15 per diluted share, and included the aforementioned $9.2 million loss on extinguishment of debt. This compares to $17.4 million, or $1.25 per diluted share.
Conference Call Information
Remark Media's management team will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its third quarter 2016 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-888-329-7568 and for international calls dial 1-719-325-2228 approximately 10 minutes prior to the start of the conference. The conference ID is 4087761. The conference call will also be broadcast live over the Internet and available for replay for one year at www.remarkmedia.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 1-877-870-5176 and internationally, 1-858-384-5517. Enter access code 4087761.
About Remark Media, Inc.
Remark Media, Inc. (NASDAQ: MARK) owns, operates and acquires innovative digital media properties across multiple verticals that deliver culturally relevant, dynamic content that attracts and engages users on a global scale. The company leverages its unique digital media assets to target the Millennial demographic, which provides it with access to fast-growing, lucrative markets. The company is headquartered in Las Vegas, Nevada, with additional operations in Los Angeles, California and in Beijing, Shanghai, Hangzhou and Chengdu, China. For more information, please visit the company's website at www.remarkmedia.com.
This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Media's Annual Report on Form 10-K and Remark Media's other filings with the SEC. Any forward-looking statements reflect Remark Media's current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Media's estimates and assumptions only as of the date hereof. Except as required by law, Remark Media undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.
Investor Contact: Douglas Osrow Remark Media, Inc. [email protected] 702-701-9514 ext. 3025
Long-term debt, less current portion and net of unamortized discount and debt issuance cost
Commitments and contingencies
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued
Common stock, $0.001 par value; 100,000,000 shares and 50,000,000 shares authorized; 20,711,078 and 19,659,362 shares issued and outstanding; each at September 30, 2016 and December 31, 2015, respectively
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