Chicken Soup for the Soul Entertainment Reports First Quarter Earnings in Line With Guidance
Management to host a live webcast on
“Our first quarter came in line with our guidance,” said
First Quarter 2023 Financial Summary
-
Net revenue of
$110 million , compared with net revenue of$29 million in the year-ago period -
Adjusted EBITDA of
$20.1 million , compared with Adjusted EBITDA of$3.7 million in the year-ago period -
Net loss of
$58.6 million , compared with a net loss of$14.1 million in the year-ago period;$54.5 million net loss before income taxes and preferred dividends, compared with$11.9 million net loss in the year-ago period -
Earnings per share of
$0.94 (adjusted, -$2.76 unadjusted per share)
Recent Business Highlights
- Continued strength in TVOD following the largest TVOD revenue week ever in April, with revenue up 14% year-over-year and up 13% week-over-week
- Partnered with international social media and entertainment company TaTaTu to license content and expand the global reach of Chicken Soup for the Soul Entertainment’s catalog of film and television series
- Signed a deal with Amazon Publisher Services to integrate next-generation advertising technologies into Redbox, Crackle, and Chicken Soup for the Soul apps, including shoppable ads, Amazon’s Demand Side Platform (DSP) integration, and Server Side Ad Insertion (SSAI)
- Signed FAST deals with AMC Networks, Fremantle, Revry, and Love Stories TV to bring popular channels, including The Walking Dead, Portlandia, Supermarket Sweep, and The Jamie Oliver Channel, to the lineup of premium FAST content on Redbox Free Live TV, which is approaching 180 channels
- Crackle Connex joined advertising industry standard Geopath for digital out-of-home audience measurement and Upwave to measure positive ad-lift for television series
- Crackle Connex, representing over 20 ad-rep partners, signed a deal with Vidgo, one of the fastest-growing live TV streaming services, to exclusively represent its ad sales and operations in the US
-
Rana Naidu , the Indian-language series produced by Chicken Soup for theSoul Entertainment -owned production company Locomotive Global, received a greenlight from Netflix India for a second season after the success of Season 1, which was the number one most streamed series inIndia after launch and on Netflix’s Global Top 10 Series for two weeks
For a discussion of the financial measures presented herein which are not calculated or presented in accordance with
The company presents non-GAAP measures such as 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.
For further information on the matters discussed in this release, please see our Quarterly Report on Form 10-Q for the three months ended
Conference Call Information
-
Date & Time:
Monday, May 15, 2023 ,4:30 p.m. ET . - To access a dial-in number, the company encourages participants to register in advance by visiting the following pre-registration link here.
- Please note that a dial-in option is not available without registering at the provided link.
-
A live webcast of the event will also be available in the “Event Calendar” section under the “News & Events” tab of the Chicken Soup for the
Soul Entertainment investor relations website at http://ir.cssentertainment.com.
Conference Call Replay Information
- A webcast replay will be made available at http://ir.cssentertainment.com/ in the “Event Calendar” section under the “News & Events” tab following the completion of the call.
About Chicken Soup for the
Chicken Soup for the
Note Regarding Use of Non-GAAP Financial Measures
Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in
The presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual, infrequent or non-recurring items or by non-cash items. This non-GAAP financial measure should be considered in addition to, rather than as a substitute for, our actual operating results included in our condensed consolidated financial statements.
We define Adjusted EBITDA as consolidated operating income (loss) adjusted to exclude interest, taxes, depreciation, amortization (including tangible and intangible assets), film library amortization and related costs (film library amortization, film library revenue shares and participation costs, theatrical release costs) as well as amortization for certain program rights, acquisition-related costs, consulting fees related to acquisitions, dividend payments, non-cash share-based compensation expense, and adjustments for other unusual and infrequent in nature identified charges, including transition related expenses. Adjusted EBITDA is not an earnings measure recognized by
A reconciliation of net loss to Adjusted EBITDA will be provided in the company’s Annual Report on Form 10-Q for the quarter ended
Forward-Looking Statements and Available Information
This press release includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that are not historical facts. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Such assumptions involve a number of known and unknown risks and uncertainties, including but not limited to risks relating to our core strategy, operating income and margin, seasonality, liquidity, including cash flows from operations, available funds, and access to financing sources, free cash flows, revenues, net income, profitability, stock price volatility, future regulatory changes, price changes, ability to achieve and sustain market acceptance of our content streaming services and other content offerings, ability to recruit and retain officers, key employees, or directors, ability to protect our intellectual property, ability to complete and integrate into our existing operations future strategic acquisitions, ability to manage growth, ability to pay dividends and our debt obligations, as well as evolving regulatory or other operational risks, and risks presented by changing general market conditions impacting demand for our services. For a more complete description of these and other risks and uncertainties, please refer to Item 1A (Risk Factors) in the Company’s Annual Report on Form 10-K for the year ended
Tables Follow
Chicken Soup for the |
||||||||
Condensed Consolidated Balance Sheets | ||||||||
2023 |
2022 |
|||||||
ASSETS | ||||||||
Cash, cash equivalents and restricted cash | $ |
5,467,393 |
|
$ |
18,738,395 |
|
||
Accounts receivable, net of allowance for doubtful accounts of |
149,938,518 |
|
113,963,425 |
|
||||
Prepaid expenses and other current assets |
11,757,709 |
|
13,196,180 |
|
||||
Operating lease right-of-use assets |
15,429,760 |
|
16,315,342 |
|
||||
Content assets, net |
115,036,955 |
|
126,090,508 |
|
||||
Intangible assets, net |
297,808,803 |
|
305,425,709 |
|
||||
260,969,417 |
|
260,748,057 |
|
|||||
Other assets, net |
27,797,720 |
|
29,401,793 |
|
||||
Total assets | $ |
884,206,275 |
|
$ |
883,879,409 |
|
||
LIABILITIES AND EQUITY |
||||||||
Accounts payable | $ |
54,414,979 |
|
$ |
50,960,682 |
|
||
Accrued expenses |
94,160,793 |
|
87,817,015 |
|
||||
Due to affiliated companies |
5,292,617 |
|
3,778,936 |
|
||||
Programming obligations |
61,591,834 |
|
55,883,788 |
|
||||
Film library acquisition obligations |
31,191,155 |
|
39,750,121 |
|
||||
Accrued participation costs |
45,911,280 |
|
28,695,713 |
|
||||
Debt, net |
499,643,035 |
|
479,653,611 |
|
||||
Contingent consideration |
7,066,699 |
|
7,311,949 |
|
||||
Put option obligation |
6,650,000 |
|
11,400,000 |
|
||||
Operating lease liabilities |
17,104,784 |
|
18,079,469 |
|
||||
Other liabilities |
21,775,004 |
|
20,800,186 |
|
||||
Total liabilities |
844,802,180 |
|
804,131,470 |
|
||||
Equity | ||||||||
Stockholders' Equity: | ||||||||
Series A cumulative redeemable perpetual preferred stock, |
511 |
|
450 |
|
||||
Class A common stock, |
1,761 |
|
1,559 |
|
||||
Class B common stock, |
766 |
|
766 |
|
||||
Additional paid-in capital |
373,720,902 |
|
355,185,280 |
|
||||
Deficit |
(306,329,579 |
) |
(247,752,446 |
) |
||||
Accumulated other comprehensive income |
(41,708 |
) |
47,528 |
|
||||
Class A common stock held in treasury, at cost (2,422,842 and 2,422,842 shares, respectively) |
(28,165,913 |
) |
(28,165,913 |
) |
||||
Total stockholders’ equity |
39,186,740 |
|
79,317,224 |
|
||||
Noncontrolling interests |
217,355 |
|
430,715 |
|
||||
Total equity |
39,404,095 |
|
79,747,939 |
|
||||
Total liabilities and equity | $ |
884,206,275 |
|
$ |
883,879,409 |
|
Chicken Soup for the |
||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
Three Months Ended Mach 31, | ||||||||
2023 |
2022 |
|||||||
Net revenues | $ |
109,599,293 |
|
$ |
29,206,197 |
|
||
Costs and expenses | ||||||||
Operating |
96,306,368 |
|
22,575,408 |
|
||||
Selling, general and administrative |
32,763,551 |
|
12,816,520 |
|
||||
Amortization and depreciation |
11,183,717 |
|
1,648,258 |
|
||||
Management and license fees |
7,852,141 |
|
2,920,620 |
|
||||
Total costs and expenses |
148,105,777 |
|
39,960,806 |
|
||||
Operating loss |
(38,506,484 |
) |
(10,754,609 |
) |
||||
Interest expense |
16,666,259 |
|
1,310,459 |
|
||||
Other non-operating income, net |
(694,690 |
) |
(201,792 |
) |
||||
Loss before income taxes and preferred dividends |
(54,478,053 |
) |
(11,863,276 |
) |
||||
Income tax (benefit) provision |
1,214,151 |
|
20,000 |
|
||||
Net loss before noncontrolling interests and preferred dividends |
(55,692,204 |
) |
(11,883,276 |
) |
||||
Net loss attributable to noncontrolling interests |
(127,662 |
) |
(38,385 |
) |
||||
Net loss attributable to Chicken Soup for the |
(55,564,542 |
) |
(11,844,891 |
) |
||||
Less: preferred dividends |
3,012,591 |
|
2,282,069 |
|
||||
Net loss available to common stockholders | $ |
(58,577,133 |
) |
$ |
(14,126,960 |
) |
||
Net loss per common share: | ||||||||
Basic and diluted | $ |
(2.76 |
) |
$ |
(0.92 |
) |
||
Weighted-average common shares outstanding: | ||||||||
Basic and diluted |
21,249,105 |
|
15,331,743 |
|
Chicken Soup for the |
||||||||
Adjusted EBITDA | ||||||||
(unaudited) | ||||||||
Three Months Ended |
||||||||
2023 |
2022 |
|||||||
Reported loss per share (GAAP) | $ |
(58,577,133 |
) |
$ |
(14,126,960 |
) |
||
Preferred dividends |
3,012,591 |
|
2,282,069 |
|
||||
Net (loss) income attributable to noncontrolling interests |
(127,662 |
) |
38,385 |
|
||||
Provision for income taxes |
1,214,151 |
|
20,000 |
|
||||
Other Taxes |
252,879 |
|
80,372 |
|
||||
Interest Expense |
16,666,259 |
|
1,310,459 |
|
||||
40,875,543 |
|
9,687,024 |
|
|||||
Stock-based Compensation |
914,571 |
|
996,797 |
|
||||
Reserve for bad debt and video returns |
1,157,703 |
|
581,834 |
|
||||
Amortization and depreciation |
11,183,717 |
|
2,004,073 |
|
||||
Other non-operating income |
(694,690 |
) |
(201,792 |
) |
||||
Non-cash settlement of management and licensing fees |
3,450,000 |
|
— |
|
||||
Transitional expenses and other nonrecurring costs |
747,105 |
|
989,832 |
|
||||
Adjusted EBITDA | $ |
20,075,034 |
|
$ |
3,662,093 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230515005786/en/
(INVESTOR RELATIONS)
Zaia Lawandow
Chicken Soup for the
zlawandow@chickensoupforthesoul.com
(PRESS)
Chicken Soup for the
pbinazeski@chickensoupforthesoul.com
Source: Chicken Soup for the