JERSEY CITY, N.J., May 18, 2015 /PRNewswire/ -- Propel Media,
Inc. (OTCBB: PROM), formed by the January merger of Kitara Media
Corp. and Future Ads LLC, announced that it achieved revenue of
$21.5 million and adjusted EBITDA of
$5.2 million in its first quarter as
a combined public company bringing together online video, display
and mobile advertising technology solutions for advertisers, app
developers and publishers.
"We are pleased that the merger of these leading ad tech
companies has gone smoothly and that we were able to initiate cost
savings initiatives and new business development strategies that we
believe will provide operating benefits later this year," said Bob
Regular, CEO of Propel Media. "We are excited that our
proprietary Trafficvance and PROPEL+ technology platforms are
launching dynamic video ad and content optimization capabilities to
position Propel Media to take advantage of growth opportunities in
an ever changing market environment," said Mr. Regular.
Our merger was accounted for as a reverse merger, with Future
Ads as the accounting acquirer. The historical financial
statements are those of Future Ads and Future Ads was deemed to
have acquired Kitara on the date of the reverse
merger. Upon the closing of the merger, Future Ads
became subject to income taxes, and as such, we recorded a
deferred income tax benefit of approximately $31 million.
Complete information on the Company's financial performance for
the first quarter ended March 31,
2015 is set forth in the Company's Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on
May 15, 2015.
About Propel Media
Propel Media is a performance focused digital media company
bringing together online video, display and mobile advertising
technology and solutions to advertisers, app developers and
publishers. Our mission is to provide exceptional performance for
our partners.
The Company has offices in Irvine,
CA and Jersey City, NJ. For
more information visit: http://www.propelmedia.com
Forward-Looking Statements:
Certain information and statements contained in this press
release, including those regarding Propel Media's capital
structure, ability to execute its operating plan, anticipated
financial flexibility and other statements that are not statements
of historical fact, are forward-looking statements within the
meaning of federal securities laws. These statements may be
identified, without limitation, by the use of forward-looking
terminology such as "anticipates", "expects," "will" or comparable
terms or the negative thereof. Such statements are based on
management's current estimates, assumptions that management
believes to be reasonable, and currently available competitive,
financial, and economic data as of the date hereof and we undertake
no obligation to update any such statements to reflect subsequent
changes in events or circumstances. Forward-looking statements are
inherently uncertain and subject to a variety of events, factors
and conditions, many of which are beyond the control of Propel
Media and not all of which are known to Propel Media, including,
without limitation those risk factors described from time to time
in Propel Media's reports filed with the SEC. Among the
factors that could cause actual results to differ materially are
Propel Media's: loss of key advertising customers; inability to
acquire new advertising customers; inability to expand its video
content library; inability to protect its intellectual property;
inability to comply with the covenants in its credit facility;
inability to obtain necessary financing or enter into equity
arrangements with existing or new institutional shareholders;
inability to execute its acquisition strategy; inability to
effectively manage its growth; failure to effectively integrate the
operations of acquired businesses; competition; loss of key
personnel; increases in costs of operations; continued compliance
with government regulations; and general economic conditions.
Use of Non-GAAP Financial Information
In addition to the unaudited results presented in accordance with
generally accepted accounting principles, or GAAP, in this press
release, the Company presents adjusted EBITDA which is a non-GAAP
measure. The adjusted EBITDA is determined by taking net income and
adding back depreciation and amortization, income tax benefit,
interest expense and stock-based compensation. The Company believes
that this non-GAAP measure, viewed in addition to and not in lieu
of the Company's reported GAAP results, provides useful information
to investors by providing a more focused measure of operating
results. This metric is an integral part of the Company's internal
reporting to evaluate its operations and the performance of senior
management. A reconciliation table to the comparable GAAP measure
is available in the accompanying financial tables below. The
non-GAAP measure presented herein may not be comparable to
similarly titled measures presented by other companies.
|
Propel Media, Inc.
and Subsidiaries
|
|
Condensed
Consolidated Balance Sheets
|
|
As
of
|
|
Assets
|
March 31,
2015
|
|
December 31,
2014
|
|
(unaudited)
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
$
6,346,000
|
|
$
3,675,000
|
|
Accounts receivable,
net
|
11,242,000
|
|
8,054,000
|
|
Prepaid
expenses
|
602,000
|
|
343,000
|
|
Deferred tax assets,
current
|
12,000
|
|
-
|
|
Other current
assets
|
232,000
|
|
-
|
|
Total current
assets
|
18,434,000
|
|
12,072,000
|
|
|
|
|
|
Property and
equipment, net
|
3,050,000
|
|
2,034,000
|
|
Restricted
cash
|
513,000
|
|
-
|
|
Intangible
assets
|
586,000
|
|
-
|
|
Goodwill
|
2,467,000
|
|
-
|
|
Deferred tax assets,
non-current
|
34,610,000
|
|
-
|
|
Other
assets
|
698,000
|
|
56,000
|
|
Total
assets
|
$
60,358,000
|
|
$
14,162,000
|
|
|
|
|
|
Liabilities and
Stockholders' (Deficit) Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
7,622,000
|
|
$
3,540,000
|
|
Accrued
expenses
|
3,311,000
|
|
4,184,000
|
|
Advertiser
deposits
|
2,627,000
|
|
2,610,000
|
|
Obligations to
transferors
|
-
|
|
650,000
|
|
Short-term portion of
long-term debt
|
6,189,000
|
|
-
|
|
Revolving credit
facility
|
5,751,000
|
|
-
|
|
Total current
liabilities
|
25,500,000
|
|
10,984,000
|
|
|
|
|
|
Long-term
debt
|
71,442,000
|
|
-
|
|
Obligations to
transferors
|
16,387,000
|
|
-
|
|
Other non-current
liabilities
|
428,000
|
|
464,000
|
|
Note payable
stockholder, non-current, net
|
100,000
|
|
-
|
|
Total
liabilities
|
113,857,000
|
|
11,448,000
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
(Deficit) Equity
|
|
|
|
|
Preferred Stock,
$0.0001 par value, authorized 1,000,000 shares,
|
-
|
|
-
|
|
no shares issued or
outstanding
|
|
|
|
|
Common Stock, $0.0001
par value, authorized 500,000,000 shares,
|
25,000
|
|
15,000
|
|
issued and outstanding
250,010,162 and 154,125,921,
|
|
|
|
|
at March 31, 2015 and
December 31, 2014, respectively
|
|
|
|
|
Additional paid-in
capital
|
139,000
|
|
-
|
|
Accumulated (deficit)
earnings
|
(53,663,000)
|
|
2,699,000
|
|
Total stockholders'
(deficit) equity
|
(53,499,000)
|
|
2,714,000
|
|
Total liabilities and
stockholders' (deficit) equity
|
$
60,358,000
|
|
$
14,162,000
|
|
Propel Media, Inc.
and Subsidiaries
|
|
Condensed
Consolidated Statements of Income
|
|
(unaudited)
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Revenues
|
$
21,491,000
|
|
$
24,669,000
|
|
Cost of
revenues
|
10,172,000
|
|
11,295,000
|
|
Gross
profit
|
11,319,000
|
|
13,374,000
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Salaries, commissions,
benefits and related expenses
|
3,669,000
|
|
3,541,000
|
|
Technology development
and maintenance
|
889,000
|
|
618,000
|
|
Marketing and
promotional
|
25,000
|
|
102,000
|
|
General and
administrative
|
959,000
|
|
319,000
|
|
Professional
services
|
737,000
|
|
173,000
|
|
Depreciation and
amortization
|
385,000
|
|
320,000
|
|
|
|
|
|
Operating
expenses
|
6,664,000
|
|
5,073,000
|
|
|
|
|
|
Operating
income
|
4,655,000
|
|
8,301,000
|
|
|
|
|
|
Interest
expense
|
(2,407,000)
|
|
-
|
|
|
|
|
|
Income before income
tax benefit
|
2,248,000
|
|
8,301,000
|
|
Income tax
benefit
|
31,324,000
|
|
-
|
|
Net income
|
$
33,572,000
|
|
$
8,301,000
|
|
|
|
|
|
|
|
|
|
Net income per common
share, basic and diluted
|
$
0.15
|
|
$
0.05
|
|
|
|
|
|
Weighted average
number of common shares outstanding - basic and diluted
|
221,244,890
|
|
154,125,921
|
|
|
|
|
|
Pro-forma computation
related to conversion to a C corporation upon
|
|
|
|
|
completion of the
reverse merger with Kitara Media Corp.
|
|
|
|
|
Historical pre-tax net
income before income taxes
|
$
2,248,000
|
|
8,301,000
|
|
Pro-forma income tax
expense
|
897,000
|
|
3,312,000
|
|
Pro-forma net
income
|
$
1,351,000
|
|
$
4,989,000
|
|
|
|
|
|
Unaudited pro-forma
net income per common share, basic and diluted
|
$
0.01
|
|
$
0.03
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic and diluted
|
221,244,890
|
|
154,125,921
|
|
Propel Media, Inc.
and Subsidiaries
|
|
|
|
|
Reconciliation of
Non-GAAP Information
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
(GAAP)
|
$
33,572,000
|
|
$
8,301,000
|
|
|
Add (subtract) the
following items:
|
|
|
|
|
|
Depreciation and amortization
|
385,000
|
|
320,000
|
|
|
Income tax benefit
|
(31,324,000)
|
|
-
|
|
|
Interest expense
|
2,407,000
|
|
-
|
|
|
Stock-based compensation
|
139,000
|
|
-
|
|
|
Adjusted EBITDA
(non-GAAP)
|
$
5,179,000
|
|
$
8,621,000
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/propel-media-launches-with-profitable-first-quarter-earnings-300084697.html
SOURCE Propel Media, Inc.