LAS VEGAS, Aug. 11, 2016 /PRNewswire/ -- Remark Media (NASDAQ: MARK), a global digital media technology company, reported its financial results for the second quarter of 2016.
"Our strong second quarter 2016 results reflect growth in our travel vertical as a result of our acquisition of Vegas.com in September 2015," stated Kai-Shing Tao, Remark Media's Chairman and CEO. "This quarter, we furthered our progress expanding Vegas.com from primarily a traveling and ticketing hub into a unique and dynamic media platform. Through numerous technology and feature upgrades, we have underscored our appeal to our target demographic, the Millennials. With KanKan, we are taking our data intelligence to the next level and with the support of our partner Alibaba, we are building a user behavior analysis platform with great appeal and value to advertisers and retailers around the world. We continue to work toward the closing of our acquisition of China Branding Group, which would contribute significant sales capabilities, advertising relationships, a large and diverse portfolio of content, and a community of over 100 million social media followers from which we would seek to accelerate our growth.
"With these assets, as well as our verticals in finance and lifestyle, we are building a formidable set of synergistic assets for our digital media technology platform that appeal to Millennials, generate advertising revenue and capture insightful data that makes us an invaluable partner to our customers."
Financial Results for the Three Months Ended June 30th: 2016 Compared to 2015
The financial results for the second quarter of 2016 reflect the operating results of Vegas.com, which was acquired in September 2015.
- Net revenue was $15.0 million, compared to $0.8 million.
- Gross margin was $12.4 million, compared to $0.7 million.
- Operating expenses were $15.9 million, compared to $3.8 million.
- Operating loss was $3.5 million, compared to $3.1 million.
- Net loss was $5.4 million, or $0.27 per diluted share, compared to $3.2 million, or $0.23 per diluted share.
- At June 30, 2016, the cash and cash equivalents balance was $8.0 million, and total restricted cash was $11.7 million, bringing the total combined cash position to $19.7 million.
Financial Results for the Six Months Ended June 30th: 2016 Compared to 2015
The financial results for the 2016 six-month period reflect the operating results of Vegas.com, which was acquired in September 2015.
- Net revenue was $29.2 million, compared to $1.6 million.
- Gross margin was $24.3 million, compared to $1.5 million.
- Operating expenses were $32.9 million, compared to $7.6 million.
- Operating loss was $8.7 million, compared to $6.0 million.
- Net loss was $7.8 million, or $0.39 per diluted share, compared to $6.2 million, or $0.47 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 second quarter 2016 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-877-329-7568 and for international calls dial 1-719-325-2228 approximately 10 minutes prior to the start of the conference. The conference ID is 4087761. 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 4087761.
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, Chengdu and Hangzhou, 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 Osrow
Remark Media, Inc.
[email protected]
702-701-9514 ext. 3025
Investor Relations Contact:
Becky Herrick/ Kirsten Chapman
LHA Investor Relations
[email protected]
415-433-3777
[Tables to follow]
REMARK MEDIA, INC. AND SUBSIDIARIES |
|||||||
June 30, |
December 31, |
||||||
(Unaudited) |
|||||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
8,038 |
$ |
5,422 |
|||
Restricted cash |
9,406 |
9,416 |
|||||
Trade accounts receivable, net |
930 |
746 |
|||||
Prepaid expense and other current assets |
2,899 |
2,637 |
|||||
Notes receivable, current |
181 |
172 |
|||||
Total current assets |
21,454 |
18,393 |
|||||
Restricted cash |
2,250 |
2,250 |
|||||
Notes receivable |
190 |
371 |
|||||
Property and equipment, net |
16,525 |
17,338 |
|||||
Investment in unconsolidated affiliate |
1,030 |
1,030 |
|||||
Intangibles, net |
32,273 |
34,867 |
|||||
Goodwill |
20,337 |
20,337 |
|||||
Other long-term assets |
1,393 |
— |
|||||
Total assets |
$ |
95,452 |
$ |
94,586 |
|||
Liabilities and Stockholders' Equity |
|||||||
Accounts payable |
$ |
12,298 |
$ |
14,422 |
|||
Accrued expense and other current liabilities |
16,260 |
11,827 |
|||||
Deferred merchant booking |
10,901 |
6,997 |
|||||
Deferred revenue |
4,608 |
3,262 |
|||||
Current maturities of long-term debt |
100 |
100 |
|||||
Capital lease obligations |
188 |
205 |
|||||
Total current liabilities |
44,355 |
36,813 |
|||||
Long-term debt, less current portion and net of unamortized discount and debt issuance cost |
24,466 |
23,616 |
|||||
Warrant liability |
15,857 |
19,195 |
|||||
Other liabilities |
1,825 |
2,904 |
|||||
Total liabilities |
86,503 |
82,528 |
|||||
Commitments and contingencies |
|||||||
Stockholders' equity |
|||||||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued |
— |
— |
|||||
Common stock, $0.001 par value; 100,000,000 shares and 50,000,000 shares authorized; 20,214,590 and 19,659,362 shares issued and outstanding; each at June 30, 2016 and December 31, 2015, respectively |
20 |
20 |
|||||
Additional paid-in-capital |
178,175 |
173,477 |
|||||
Accumulated other comprehensive loss |
(5) |
(5) |
|||||
Accumulated deficit |
(169,241) |
(161,434) |
|||||
Total stockholders' equity |
8,949 |
12,058 |
|||||
Total liabilities and stockholders' equity |
$ |
95,452 |
$ |
94,586 |
REMARK MEDIA, INC. AND SUBSIDIARIES Consolidated Statements of Operations Period Ended June 30, 2016 |
|||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Revenue, net |
14,975 |
821 |
29,229 |
1,624 |
|||||||
Cost of revenue (excluding depreciation and amortization reported below) |
(2,624) |
(82) |
(4,973) |
(120) |
|||||||
Gross margin |
12,351 |
739 |
24,256 |
1,504 |
|||||||
Operating expense |
|||||||||||
Sales and marketing |
4,934 |
178 |
10,462 |
376 |
|||||||
Technology and development |
434 |
68 |
838 |
172 |
|||||||
General and administrative |
7,910 |
3,342 |
16,330 |
6,505 |
|||||||
Depreciation and amortization |
2,479 |
223 |
4,876 |
450 |
|||||||
Other operating expense |
97 |
22 |
429 |
47 |
|||||||
Total operating expense |
15,854 |
3,833 |
32,935 |
7,550 |
|||||||
Operating loss |
(3,503) |
(3,094) |
(8,679) |
(6,046) |
|||||||
Other income (expense) |
|||||||||||
Interest expense |
(1,215) |
(211) |
(2,425) |
(405) |
|||||||
Other income, net |
1 |
— |
30 |
1 |
|||||||
Change in fair value of warrant liability |
(647) |
155 |
3,338 |
221 |
|||||||
Other loss |
(68) |
— |
(71) |
— |
|||||||
Total other income (expense), net |
(1,929) |
(56) |
872 |
(183) |
|||||||
Loss before income taxes |
(5,432) |
(3,150) |
(7,807) |
(6,229) |
|||||||
Provision for income taxes |
— |
— |
— |
— |
|||||||
Net loss |
(5,432) |
(3,150) |
(7,807) |
(6,229) |
|||||||
Other comprehensive income (loss) |
|||||||||||
Cumulative foreign currency translation adjustments |
— |
(25) |
— |
(25) |
|||||||
Total comprehensive loss |
(5,432) |
(3,175) |
(7,807) |
(6,254) |
|||||||
Net loss per share |
|||||||||||
Net loss per share, basic and diluted |
(0.27) |
(0.23) |
(0.39) |
(0.47) |
|||||||
Basic and diluted weighted-average shares outstanding |
20,069 |
13,903 |
19,903 |
13,395 |
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SOURCE Remark Media, Inc.
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