PORTLAND, Ore., May 12,
2015 /PRNewswire/ -- Rentrak Corporation (Nasdaq: RENT), the leader
in precisely measuring movies and TV everywhere, today announced
revenue results for its fourth fiscal quarter and full year ended
March 31, 2015.
Total company revenue1 grew to $28.5 million for the fourth quarter of fiscal
2015, a 32 percent increase from $21.6
million for the fourth quarter of fiscal 2014. For
fiscal 2015, total company revenue1 grew to $102.9 million, a 36 percent increase from
$75.6 million last year.
4Q FY15 ($
in millions)*
|
Revenue
|
% Change from 4Q
FY14
|
TV
Everywhere™
|
$16.4
|
64%
|
Movies
Everywhere™ †
|
$7.6
|
10%
|
OnDemand
Everywhere®
|
$3.9
|
21%
|
FY15 ($ in
millions)*
|
Revenue
|
% Change from
FY14
|
TV
Everywhere™
|
$55.0
|
76%
|
Movies
Everywhere™ †
|
$29.9
|
13%
|
OnDemand
Everywhere®
|
$14.3
|
11%
|
|
|
*
|
Amounts do not add
to total company revenue due to presentation of Movies
Everywhere™ contributions in constant currency, and not
reporting contributions from Other services for the respective
periods.
|
|
|
†
|
On a constant
currency basis, assuming foreign exchange rates were held constant
with exchange rates for fiscal 2014. On an as-reported basis,
Movies Everywhere™ revenue was $7.4 million, an increase
of 6 percent, and $29.5 million, an increase of 12 percent,
respectively, for the three and twelve months ended March 31,
2015.
|
"In the fourth quarter, we again saw very strong evidence that
Rentrak continues to gain significant traction in the marketplace
with our television ratings services," said Bill Livek, Rentrak's Vice Chairman and Chief
Executive Officer. "We recently added our fourth major
broadcast network as a Rentrak subscriber, entered into many
additional TV measurement agreements, attracted new ad agencies and
brand advertisers, expanded our relationships with several major
television network groups, and grew the global footprint of our
movie business. Our great clients now include four out of
five major broadcast networks, Viacom, Discovery, ESPN, and others,
as we continue to create tools to help advertisers better invest
their television dollars through our Advanced Demographics and the
most granular TV measurement available today.
1 Rentrak's Pay Per Transaction®
(PPT®) business is reflected in its entirety as
discontinued operations and was sold as of Jan. 31, 2015. All periods presented have
been revised to reflect this presentation. Unless otherwise
noted, all discussions in this press release relate to continuing
operations.
"Over the coming months, we will monetize these achievements and
further expand our customer base," said Livek. "I believe
Rentrak has reached an important inflection point, and we look
forward to translating that into increasing value for all of our
stakeholders."
The company's TV Everywhere™ business was affected by
several new client agreements that closed later than expected in
the fourth quarter. Rentrak's Movies Everywhere™
business was impacted by foreign currency exchange rates.
Rentrak's OnDemand Everywhere® business, which performed
better than expected, benefited from increased use of the company's
ratings information by ad agency holding companies, price increases
and analytic work performed for clients.
Rentrak's recent milestones include:
- Signing fourth major broadcast network as a subscriber to
Rentrak's Advanced Demographics Ratings Service.
- Signing new contracts with numerous additional television
networks, including:
- Discovery Communications, owner of leading brands such as
Discovery Channel, TLC and Animal Planet, which is subscribing to
Rentrak's TV ratings and automotive segmentation information for
all 11 of its networks;
- Viacom Media Networks, owner of leading brands such as Comedy
Central, BET and MTV, which is subscribing to Rentrak's TV ratings
and complete suite of integrated purchase consumer information for
all 17 of its networks;
- ESPN, the leading multimedia sports entertainment company,
which is subscribing to Rentrak's TV ratings; and
- QVC, the world's leading video and ecommerce retailer, which is
also subscribing to Rentrak's TV ratings.
- Expanding agreements with several major TV station groups and
signing agreements with additional station groups and independent
TV stations, including:
- CBS Television Stations in Chicago;
- NBCUniversal Media in Washington,
DC;
- Gannett Broadcasting in Washington,
DC for its CBS-affiliate;
- Lilly Broadcasting for five stations in Erie, Pennsylvania and Elmira, New York; and
- Independent stations in Los
Angeles and Columbia,
Missouri.
- Attracting new, world-class brand advertisers including Target,
which is using Rentrak to measure the effectiveness of its brand
entertainment integration.
- Gaining commitments from several 2016 presidential candidates
who plan to use Rentrak's TV ratings and advanced demographics to
attract voters.
- Signing an agreement with Google to help advertisers better
connect the placement and timing of their television ads with
search queries. Rentrak is the service of choice for
understanding how the power of TV and digital platforms work
together to generate results for advertisers.
- Completing the integration of its measurement ratings into
Mediaocean's Spectra OX Spot and Network ad buying platforms,
making it easier to use Rentrak for advertising guarantees.
Rentrak's cash and cash equivalents balance at March 31, 2015 was $84.0
million, with no debt.
Fiscal 2016 Business Outlook and Select Longer-Term
Metrics
Rentrak provided its business outlook for fiscal
2016 including:
- Total company revenue growth of 36 percent to 39 percent.
- TV Everywhere™ revenue growth of 55 percent to 65
percent.
Rentrak also provided additional fiscal 2016 guidance:
- Movies Everywhere™ is expected to pick up in the
second half of the fiscal year related to anticipated contract
renewal increases for large domestic studios. The business
will continue to be affected by foreign exchange movements.
- Adjusted EBITDA before acquisition and reorganization costs of
$22.7 million to $25.9 million, or 16
percent to 18 percent of revenues.
- Longer-term adjusted EBITDA return on revenue target of
35%.
- Tax expense of approximately $1.0
million per quarter, of which $900,000 is expected to be non-cash.
- Approximately 16.4 million fully diluted weighted average
shares outstanding.
- Capital spending of approximately $13.0
million to $14.0 million.
Rentrak plans to report full results for the fiscal 2015 fourth
quarter and year on May 27, 2015.
Conference Call
Rentrak will hold a conference call at
5:00 p.m. ET/2:00 p.m. PT today to discuss its fiscal 2015
fourth quarter revenue results. Interested parties may
participate in the call by dialing 866-652-5200 from the U.S. or
Canada, or 412-317-6060 from
international locations. Participants should ask to be
connected to the Rentrak Corporation call. This call is being
webcast and can be accessed at Rentrak's web site at
www.rentrak.com, where it will be archived through May 12, 2016. An audio replay of the
conference call will be available until May
20, 2015 by dialing 877-344-7529 from the U.S. or
Canada, or 412-317-0088 from
international locations, passcode 10065146.
About Rentrak Corporation
Rentrak (NASDAQ: RENT) is
the entertainment and marketing industries' premier provider of
worldwide consumer viewership information, precisely measuring
actual viewing behavior of movies and TV everywhere. Using
our proprietary intelligence and technology, combined with Advanced
Demographics, only Rentrak is the census currency for VOD and
movies. Rentrak provides the stable and robust audience
measurement services that movie, television and advertising
professionals across the globe have come to rely on to better
deliver their business goals and more precisely target advertising
across numerous platforms including box office, multiscreen
television and home video. For more information on Rentrak,
please visit www.rentrak.com.
Adjusted EBITDA
From time to time, Rentrak may refer
to Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation,
Amortization and Stock-based Compensation) in its conference calls
and discussions with investors and analysts in connection with the
company's reported historical financial results. Adjusted
EBITDA does not represent cash flows from operations as defined by
U.S. generally accepted accounting principles ("GAAP"), is not
derived in accordance with GAAP and should not be considered by the
reader as an alternative to net income (the most comparable GAAP
financial measure to Adjusted EBITDA). Rentrak's management
believes that Adjusted EBITDA is helpful as an indicator of the
current financial performance of the company and its capacity to
operationally fund capital expenditures and working capital
requirements. Due to the nature of the company's
internally-developed software policies and its use of stock-based
compensation, Rentrak incurs significant non-cash charges for
depreciation, amortization and stock-based compensation expense
that may not be indicative of its operating performance from a cash
perspective. Rentrak also adjusts for cash settled
acquisition, reorganization and other non-recurring costs as
Rentrak's management believes these items are not representative of
our ongoing operations and that Adjusted EBITDA provides a useful
metric by which to compare the performance from period to
period.
Safe Harbor Statement
The foregoing paragraphs
contain forward-looking statements within the meaning of the
federal securities laws. Forward-looking statements may be
identified by the use of forward-looking words such as "should,"
"plan," "believe," "expects," "anticipate," target," "outlook," or
"continues" or the negative thereof or variations thereon or
comparable terminology. Forward-looking statements in this
release include, without limitation, Rentrak's ability to continue
generating substantial growth in total company revenue and in its
TV Everywhere™ product lines and expected rates of
growth for its Movies Everywhere™ product lines, and
expected revenue generating opportunities that exist by partnering
with industry-leading businesses and other customers, and the
timing of such opportunities. These forward-looking
statements are based on Rentrak's current expectations, estimates
and projections about its business and industry, management's
beliefs, and certain assumptions, all of which are subject to
change. Forward-looking statements are not guarantees of
future performance and Rentrak's actual results may differ
significantly as a result of a number of factors, including
the company's ability to attract new customers and retain existing
customers, the company's success in maintaining its relationships
with studios, ad agencies, brand advertisers and television network
groups, the company's ability to successfully develop and market
new products to create new revenue streams and grow its existing
revenue streams, foreign currency exchange rate fluctuations, its
ability to successfully integrate acquired businesses, and
Rentrak's customers continuing to comply with the terms of their
agreements. Additional factors that could affect Rentrak's
financial results are described in Rentrak's reports on Form 10-K,
10-Q and other filings with the Securities and Exchange
Commission. Results of operations in any past period should
not be considered indicative of the results to be expected for
future periods.
RENTF
CONTACT:
PondelWilkinson Inc.
Laurie Berman
310-279-5962
lberman@pondel.com
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SOURCE Rentrak Corporation