Remark Media Reports Fourth Quarter and Full Year 2015 Results
LAS VEGAS, March 30, 2016 /PRNewswire/ -- Remark Media (NASDAQ: MARK), a global digital media company, announced its financial results for the fourth quarter and full year 2015.
Kai-Shing Tao, Remark Media Chairman and CEO, stated, "Our 2015 performance reflects the significant progress we have made in positioning Remark Media as an innovative digital media technology company focused on the Millennial demographic. Our data intelligence platform, KanKan, enables us to amass data on over 1.3 billion socially active users globally. This information provides us significant advantage in enhancing user engagement and brand awareness across all of our digital media properties, including Vegas.com, which we acquired in September 2015. To support our future revenue growth, we expect to leverage our unique access to this data to attract retailers and advertisers who could benefit from the predictive analytics and location-based services we provide. We are excited by our progress in 2015; however, we are more confident than ever that the best is yet to come."
Financial Results for the Three Months Ended December 31: 2015 Compared to 2014
- Net revenue was $11.8 million, compared to $0.2 million.
- Operating loss was $7.2 million, compared to $5.6 million.
- Net loss was $14.1 million, or $0.72 per diluted share, compared to $5.4 million, or $0.43 per diluted share.
- At December 31, 2015, cash and cash equivalents were $5.4 million.
Financial Results for the Twelve Months Ended December 31: 2015 Compared to 2014
- Net revenue was $14.2 million, compared to $1.8 million.
- Operating loss was $22.6 million, compared to $17.9 million.
- Net loss was $31.4 million, or $2.06 per diluted share, compared to $18.2 million, or $1.53 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 fourth quarter and full year 2015 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-888-539-3678 and for international calls dial 1-719-457-2664 approximately 10 minutes prior to the start of the conference. The conference ID is 6425588. 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 6425588.
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 Beijing and Chengdu, China. For more information, please visit the Company's website at www.remarkmedia.com.
Forward-Looking Statements
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 OsrowRemark Media, Inc.[email protected] 702-701-9514 ext. 3025
Investor Relations Contact:Becky Herrick/ Kirsten ChapmanLHA Investor Relations[email protected] 415-433-3777
[Tables to follow]
|
REMARK MEDIA, INC. AND SUBSIDIARIES | |||
|
Consolidated Balance Sheets | |||
|
December 31, 2015 | |||
|
December 31, | |||
|
2015 |
2014 | ||
|
Assets |
|||
|
Current assets |
|||
|
Cash and cash equivalents |
$ 5,422 |
$ 1,525 | |
|
Restricted cash |
9,416 |
— | |
|
Trade accounts receivable, net |
746 |
41 | |
|
Prepaid expense and other current assets |
2,637 |
707 | |
|
Note receivable, current |
172 |
— | |
|
Total current assets |
18,393 |
2,273 | |
|
Restricted cash |
2,250 |
— | |
|
Notes receivable |
371 |
1,350 | |
|
Property and equipment, net |
7,425 |
1,398 | |
|
Investment in unconsolidated affiliate |
1,030 |
1,030 | |
|
Intangibles assets, net |
44,780 |
6,518 | |
|
Goodwill |
20,337 |
5,293 | |
|
Other long-term assets |
— |
94 | |
|
Total assets |
$ 94,586 |
$ 17,956 | |
|
Liabilities and Stockholders' Equity |
|||
|
Accounts payable |
$ 14,422 |
$ 1,356 | |
|
Advances from shareholder |
— |
86 | |
|
Accrued expense and other current liabilities |
11,827 |
1,037 | |
|
Demand note payable to related party |
— |
350 | |
|
Deferred merchant booking |
6,997 |
— | |
|
Deferred revenue |
3,262 |
173 | |
|
Current maturities of long-term debt |
100 |
— | |
|
Current maturities of long-term debt with related party |
— |
2,500 | |
|
Capital lease obligations |
205 |
158 | |
|
Total current liabilities |
36,813 |
5,660 | |
|
Long-term debt, less current portion and net of discount and debt issuance cost |
23,616 |
3,100 | |
|
Long-term debt payable to related parties, less current portion and net of discount |
— |
3,481 | |
|
Warrant liability |
19,195 |
512 | |
|
Other liabilities |
2,904 |
25 | |
|
Total liabilities |
82,528 |
12,778 | |
|
Commitments and contingencies |
|||
|
Stockholders' equity |
|||
|
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued |
— |
— | |
|
Common stock, $0.001 par value; 50,000,000 shares authorized; 19,659,362 and 12,784,960 shares issued and outstanding at December 31, 2015 and 2014, respectively |
20 |
13 | |
|
Additional paid-in-capital |
173,477 |
135,116 | |
|
Accumulated other comprehensive income (loss) |
(5) |
36 | |
|
Accumulated deficit |
(161,434) |
(129,987) | |
|
Total stockholders' equity |
12,058 |
5,178 | |
|
Total liabilities and stockholders' equity |
$ 94,586 |
$ 17,956 | |
|
REMARK MEDIA, INC. AND SUBSIDIARIES | |||||||
|
Consolidated Statements of Operations | |||||||
|
Year Ended December 31, 2015 | |||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||
|
2015 |
2014 |
2015 |
2014 | ||||
|
Revenue |
11,789 |
182 |
14,229 |
1,838 | |||
|
Cost of revenue (exclusive of depreciation and amortization reported below) |
(1,608) |
(9) |
(1,864) |
(74) | |||
|
Gross margin |
10,181 |
173 |
12,365 |
1,764 | |||
|
Operating expense |
|||||||
|
Sales and marketing |
3,913 |
94 |
4,758 |
345 | |||
|
Content, technology and development |
1,261 |
81 |
1,683 |
430 | |||
|
General and administrative |
9,856 |
5,390 |
25,220 |
17,814 | |||
|
Depreciation and amortization |
2,372 |
238 |
3,281 |
767 | |||
|
Impairment of long-lived assets |
— |
— |
— |
268 | |||
|
Total operating expense |
17,402 |
5,803 |
34,942 |
19,624 | |||
|
Operating loss |
(7,221) |
(5,630) |
(22,577) |
(17,860) | |||
|
Other income (expense) |
|||||||
|
Debt conversion expense |
— |
— |
(1,469) |
— | |||
|
Interest expense |
(1,219) |
(140) |
(1,927) |
(460) | |||
|
Other income (expense), net |
29 |
41 |
(50) |
82 | |||
|
Gain (Loss) on change in fair value of warrant liabilities |
(5,673) |
317 |
(5,432) |
28 | |||
|
Other gain |
2 |
— |
8 |
— | |||
|
Total other income (expense) |
(6,861) |
218 |
(8,870) |
(350) | |||
|
Loss before income tax |
(14,082) |
(5,412) |
(31,447) |
(18,210) | |||
|
Provision for income taxes |
— |
— |
— |
— | |||
|
Net loss |
(14,082) |
(5,412) |
(31,447) |
(18,210) | |||
|
Other comprehensive income (loss) |
|||||||
|
Foreign currency translation adjustments |
— |
— |
— |
39 | |||
|
Comprehensive loss |
(14,082) |
(5,412) |
(31,447) |
(18,171) | |||
|
Net loss per share |
|||||||
|
Net loss per share, basic and diluted |
(0.72) |
(0.43) |
(2.06) |
(1.53) | |||
|
Basic and diluted weighted average shares outstanding |
19,448 |
12,543 |
15,278 |
11,884 | |||
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SOURCE Remark Media, Inc.