Chicken Soup for the Soul Entertainment to Discuss Crackle Plus and Full-Year 2018 Financial Results
Strategic Highlights of Crackle Plus
- Creates one of the largest AVOD platforms in the U.S. with a combined audience of nearly 10 million monthly active users on its owned-and-operated networks, as well as millions of additional users from its ad rep business
- Over 26 million registered users
- Over 38,000 combined hours of programming including access to library assets from the joint venture partners
- Currently streams more than 1.3 billion minutes per month
- Over 90 content partnerships
- Includes 100-plus VOD networks
The addition of Crackle is expected to more than double overall revenue and will add meaningful Adjusted EBITDA.
Full Year 2018 and Recent Business Highlights
- Total revenue of
$27.8 million, up over 150%
- Net loss of
$(0.8) millionbefore preferred dividends
- Adjusted EBITDA of
$11.3 million, up 180%
- Acquired the long-term advertising VOD (“AVOD”) rights to exhibit more than 500 films from the FilmRise library on its owned and operated networks
- Chicken Soup for the Soul’s Hidden Heroes TV series was nominated for an Emmy for “Outstanding Children’s or Family Viewing Series”
“Our 2018 revenue was 2.5 times our 2017 revenue, and Crackle Plus will accelerate the growth rate even more along with positive EBITDA,” Rouhana continued. “Our online networks and television and film distribution business segments exceeded analyst expectations. In our television and short-form video production business segment, we decided to retain certain rights to two of our completed series in anticipation of our Crackle transaction in order to be able to premiere them on our own network.”
Total revenue for the 12 months ended
- Online networks, which includes Popcornflix and Pivotshare, generated
$4.4 millionin revenue compared to $0.8 millionin the year-ago period
- Television and film distribution generated
$13.2 million, compared to $2.9 millionin the year-ago period
- Television and short-form video production generated
$10.2 million, compared to $7.2 millionin the year-ago period
Gross profit for the 12 months ended
Operating income for the 12 months ended
Adjusted EBITDA for the 12 months ended
The company will file an annual report on Form 10-K with the
For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see "Note Regarding Use of Non-GAAP Financial Measures" below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures.
The company presents non-GAAP measures such as Adjusted EBITDA and Pro Forma Adjusted EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the Company's operating performance.
Conference Call Information
To participate in this event, dial in approximately 5 to 10 minutes before the beginning of the call.
- Date, Time:
Friday, March 29, 2019, 8:30 a.m. ET.
- Toll-free: (833) 832-5128
- International: (484) 747-6583
- Conference ID: 7276809
A live webcast is available at http://ir.cssentertainment.com/ under the “News & Events” tab.
Conference Call Replay Information
- Toll-free: (855) 859-2056
- International: (404) 537-3406
- Reference ID: 7276809
Note Regarding Use of Non-GAAP Financial Measures
The company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in
“Adjusted EBITDA” means earnings before interest, taxes, depreciation, amortization and non-cash share-based compensation expense, and also includes the gain on bargain purchase of subsidiary and adjustments for other identified charges such as costs incurred to form the company and to prepare for the offering of its Class A common stock to the public, prior to its IPO. Identified charges also include the cost of maintaining a board of directors prior to being a publicly traded company. As the IPO has been completed, director fees will be deducted from Adjusted EBITDA going forward. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA to be a meaningful indicator of the company’s performance that provides useful information to investors regarding its financial condition and results of operations. The most comparable GAAP measure is operating income.
A reconciliation of net loss to Adjusted EBITDA is provided in the company’s Quarterly Report on Form 10-K for the three months ended
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks (including those set forth in the offering circular) and uncertainties which could cause actual results to differ from the forward-looking statements. The company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Investors should realize that if the company’s underlying assumptions for the projections contained herein prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from the company’s expectations and projections.