RLJ Entertainment (RLJE) Reports Q2 EPS of $0.24 on Revenues of $18.8M

RLJ Entertainment (NASDAQ: RLJE) reported Q2 EPS of $0.24. Revenue for the quarter came in at $18.8 million.

Second Quarter 2017 Highlights:

• Digital Channels paying subscribers increased 63% from the second quarter of 2016 to over 550,000.
• The Digital Channels segment contribution income from continuing operations, after direct costs and expenses increased 76.5% to $2.2 million from $1.3 million in second quarter 2016.
• Total net revenue increased 19.3% year-over-year to $18.8 million, driven largely by a 72.1% increase in Digital Channel revenue. Revenue for the Wholesale Distribution segment grew 2.8%, driven by stronger licensing deals and distribution sales.
• Gross margin increased 21.5 percentage points to 51.7% from the second quarter of 2016 driven by (i) rapid growth in our higher-margin Digital Channels segment and (ii) a greater number of higher-margin licensing deals in the Wholesale Distribution segment.
• Net loss was $1.1 million compared to $0.2 million in the second quarter of 2016, as the improved operating performance of the business was more than offset by a $6.5 million increase in the fair value of stock warrants.
• Adjusted EBITDA was $3.9 million, an improvement of $4.3 million from the second quarter of 2016. The improvement is primarily attributable to the continued growth of the higher-margin Digital Channels segment as well as stronger performance in the Wholesale Distribution segment.
• On June 20, 2017, the Company broadened its strategic partnership with AMC Networks, Inc. ("AMC") to accelerate its content investments and other strategic initiatives, expanding the AMC Tranche A Term Loan from $13.0 million to $23.0 million and converting interest payments entirely into common stock at a fixed conversion price of $3.00 per share on both the Tranche A Term Loan and the Tranche B Term Loan. AMC also exercised $5.0 million of its Tranche A Warrants into RLJE common stock at $3.00 per common share. Additionally, dividend payments on the preferred stock held by Robert L. Johnson were eliminated through 100% conversion of his preferred stock into common stock at $3.00 per share.

For earnings history and earnings-related data on RLJ Entertainment (RLJE) click here.

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