TIDMRTHM
RNS Number : 8228B
RhythmOne PLC
25 September 2018
RHYTHMONE PLC
DIRECTORATE AND MANAGEMENT CHANGES
Management reaffirms its outlook for H1 FY2019 and sees a strong
EBITDA performance of $19-21 million up from $3.1 million for H1
FY2018
Management continues to focus on accelerating value creation and
strengthening the executive team
London, England and San Francisco, CA - 25 September 2018 -
RhythmOne plc (LSE AIM: RTHM, "RhythmOne "or the "Company"), today
announces that Ed Reginelli, Chief Financial Officer and executive
Director, has resigned with immediate effect. The Board of the
Company (the "Board") is pleased to announce that it has appointed
Mark Zorko as its Chief Financial Officer effective as of 25
September 2018 and intends to appoint Mr. Zorko as an executive
Director of the Board effective as soon as practicable and subject
to customary approvals.
This transition supports RhythmOne's continued execution of its
financial plan focused on accelerating growth and
profitability.
Mr. Zorko, age 66, has extensive experience as an international
public company CFO and CIO in a variety of industries including
technology. Mr. Zorko's CFO experience is primarily with
growth-oriented businesses but also includes turnaround positions
with $550 million and $180 million businesses as well as serving as
the interim Chief Accounting Officer for a $2.5 billion electronics
firm. In addition to his impressive operational experience, Mr.
Zorko also brings over 20 years of Board-level experience and has
chaired audit, compensation and nomination committees. From 2013 to
present, Mr. Zorko served as founder and principal with Brentwood
Advisory Group which provides board and executive advisory services
to businesses. From 2006 to 2012, Mr. Zorko served as CFO of DGT
Holding Corp (DGTC). He became the CFO for Steel Excel, Inc. (SXCL)
in 2011, a company related to DGTC through 2013. Prior to that Mr.
Zorko worked with Tatum LLC where he served as the CFO for an
energy firm, private equity firm and several Fortune 500 companies.
Mr. Zorko began his extensive career as a CPA at Arthur Andersen.
Mr. Zorko received his MBA in IT from the University of Minnesota
and his BS in Accounting from The Ohio State University.
In the five years preceding his appointment at the Company, Mr.
Zorko holds or has held the following directorships:
Current:
-- Perma Pipe Int'l Holdings, Inc. (NASDAQ: PPIH).
-- Westell Technologies, Inc. (NASDAQ: WSTL).
Prior:
-- ECO Building Products, Inc.
-- Interups, Inc.
H1 2019 Update
The Company is finishing the first half of the year strong with
year-over-year growth in both revenue and EBITDA(1) . This upward
trajectory was fueled by continued growth in programmatic platform
revenues. The Company is tracking against its key objectives for
the year:
-- Enhancing its unified programmatic advertising platform;
-- Growing its base of data-driven engaged audience segments; and
-- Innovating around video and connected TV (CTV) advertising.
Performance for H1 2019 is expected to be in line with
management expectations across key metrics, as follows:
-- Revenue increasing by approximately 50% from H1 2018 to $170
- $180 million (H1 2018: $114.5 million);
-- Adjusted(1) EBITDA increased by approximately 600% from H1
2018 to $19 million - $21 million (H1 2018: $3.1 million).
Mark Bonney, President and Chief Executive Officer said:
"We are excited to have Mark join the team and believe this
addition brings a level of experience and sophistication to our
finance team that will greatly contribute to the future success of
the Company and our continued execution against our financial plan.
Together with the addition of Mark and our strong H1 2019
performance, we believe we are well positioned to deliver further
strong performance in FY2019."
Eric Singer, Chairman of the Board said:
"This transition is consistent with our goals of bringing in
talent with the highest level of work ethic that is aligned to
driving growth and maximizing shareholder value, which we believe
is necessary to drive the continued success of the Company."
With the addition of Mr. Zorko and its strong H1 2019
performance, RhythmOne believes it is well-positioned to continue
to seize on the consolidation opportunities that exist in its
industry. The Company continues to evaluate various strategic
opportunities with a focus of maximizing shareholder value.
The information communicated herein constitutes inside
information.
Notes:
1. Adjusted EBITDA. This press release contains references to
adjusted EBITDA. This financial measure does not have any
standardized meaning prescribed by IFRS and is therefore referred
to as non-GAAP measures. This non-GAAP measure used by RhythmOne
may not be comparable to similar measures used by other companies.
Adjusted EBITDA is defined as loss for the period, adjusted to
exclude finance income and expense, taxation, depreciation and
amortization, share based payments and exceptional items in
continuing operations and in discontinued operations, which include
goodwill impairment, change in intangible assets' lives,
acquisition-related costs, restructuring and severance costs,
settlement of litigation, re-measurement of deferred consideration
and unrealized foreign exchange gain and loss. Management believes
that this measure is a useful supplemental metric as it provides an
indication of the results generated by the Company's principal
trading activities prior to consideration of how the results are
impacted by nonrecurring costs, how the results are taxed in
various jurisdictions, or how the results are affected by the
accounting standards associated with the Company's share based
payment expense.
Forward-Looking Statements
This press release contains certain forward-looking statements
with respect to future events and
our future financial performances. All statements other than
statements of historical fact are
statements that could be forward-looking statements, including,
but not limited to statements about RhythmOne's financial results
for H1 2019, its ability to deliver further strong performance in
FY2019, future opportunities, the anticipated contributions of its
new chief financial officer, future expectations, beliefs, plans,
objectives, financial conditions, assumptions or future events or
performance and quotations from management.
These forward-looking statements are subject to a number of
risks and uncertainties, assumptions and other factors that could
cause actual results and timing of events to differ materially from
future results that are expressed or implied in our forward-looking
statements. Among the key factors that could cause or contribute to
such differences include the growth and prospects of the digital
advertising industry, forecasts regarding internet usage and
advertising spend, projected levels of growth in RhythmOne's
markets, RhythmOne's expectations about the factors that drive
business, RhythmOne's investments and performance in international
and emerging market and sectors, anticipated trends and challenges
in RhythmOne's industry, including but not limited to the
increasing quantity, variety and fragmentation of digital video
content, platforms, distribution channels and technologies, the
expansion of the digital media advertising market in general and
the digital video advertising market in particular, RhythmOne's
operating results, including revenue, cost of revenue, expenses and
liquidity, RhythmOne's strategy and competition, market trends,
including overall opportunities for digital media advertising and
shifting advertising budget, the ongoing improvement and refinement
of RhythmOne's data-science capabilities, developments in the
regulatory framework applicable to RhythmOne's business,
RhythmOne's intellectual property and proprietary technologies and
the ability to integrate the YuMe operations effectively and in a
manner that achieves the anticipated synergies. These and other
risk factors are discussed in "Risk Factors" of RhythmOne's Annual
Report on Form 20-F filed with the United States Securities and
Exchange Commission on July 31, 2018, a copy of which can be found
at www.sec.gov.
All forward-looking statements attributable to RhythmOne or
persons acting on their behalf, are expressly qualified in their
entirety by the cautionary statements set out herein and speak only
as of the date they are made. Subject to compliance with applicable
laws and regulations, RhythmOne disclaims any intention or
obligation to update or revise any forward-looking statements and
undertakes no obligation to release publicly the results of any
future revisions to the forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Press Contacts for RhythmOne
Analyst and Investor Contact
Mark Bonney
RhythmOne plc
Nomad and Broker for RhythmOne
Nick Westlake (Nomad) / Michael Wharton
/ Toby Adcock
Numis Securities Limited
(UK) 020 7260 1000
About RhythmOne
RhythmOne drives engagement between advertisers and targeted
audiences - resulting in real, measurable business outcomes. We
offer fully-integrated, cross-screen solutions that span desktop,
mobile, and connected TV ("CTV") across high-impact video, rich
media, display, social, and native advertising formats - helping
advertisers reach high-propensity audiences wherever and however
they consume content. The connections we make are further enhanced
through unique audience data and powered by our unified
programmatic platform, RhythmMax. RhythmMax includes RhythmGuard, a
proprietary verification and brand safety filtering technology that
screens underperforming and suspicious traffic before it reaches
the marketplace. This end-to-end platform - coupled with the
world-class service of our account teams - is designed to provide
more direct, efficient, and effective connections, driving ROI for
advertisers and publishers. Founded in 2004 in the UK, RhythmOne is
headquartered in San Francisco with offices in the US, UK, Europe,
APAC, and Canada. For more information, please visit
www.rhythmone.com.
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END
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