CORRECTION to Certain Line Items Within the Adjusted EBITDA Table -- Chicken Soup for the Soul Entertainment Reports Q1 2021 Results
75% Q1 net revenue growth year-over-year reinforces outlook for 2021
Fully integrated business model driving revenue growth and profitability
“Our first quarter results are a good start on our growth plans for the year, and we’ve made outstanding progress on our strategy so far in 2021,” said
“In just over five months’ time, we will have significantly expanded our content library while greatly expanding our capabilities to create and deliver new content,” Rouhana continued. “We’ve also announced a new company-branded AVOD network and our new television production unit, Halcyon, and continued to aggressively implement our viewership growth strategy, which will include the launch of an enhanced user experience and platform over the summer. At the same time, we continue to grow our fully-owned library through our strong pipeline of original and exclusive content. With these developments in place, 2021 is shaping up to be a game-changing year for Chicken Soup for the
First Quarter 2021 Financial Summary
- Net revenue of
$23.2 million , compared to$20.2 million in the seasonally high fourth quarter of 2020, and$13.2 million in the year-ago period. The 75% year-over-year growth was driven by strong performances of original content releases and international and advertising sales. - Net loss of
$9.2 million compared to a net loss of$10.1 million in the fourth quarter of 2020, and a net loss of$11.4 million in the year-ago period;$6.9 million net loss before preferred dividends, compared to$8.9 million net loss in the fourth quarter 2020, and$10.5 million net loss in the year-ago period. - Adjusted EBITDA of
$4.6 million , compared to$2.8 million in the fourth quarter 2020, and$2.0 million in the year-ago period. The 124% year-over-year growth was enhanced by efficiencies and cost savings associated with the fully integrated business model.
Recent Business Highlights
- First company produced film, Willy’s Wonderland, was ranked as the #1 horror movie on Amazon for a period in the first quarter.
- Crackle Plus viewership in
March 2021 reached its highest level since the shelter-in-place peak ofApril 2020 . - Announced the largest content deal in company history with the pending acquisition of the
Sonar Entertainment assets, which, when consummated, will add IP rights to 372 television series with 1,825 episodes and over 700 films, to an already-robust library. - Presented a diverse new slate of original and exclusive content at NewFronts, which includes numerous exciting, star-studded titles.
- Announced Halcyon, a new television studio to be headed by
David Ellender , which will grow the high-quality content pipeline. - Announced launch of Chicken Soup for the Soul AVOD network that aligns with the company brand and mission.
Gross profit for the quarter ended
Operating loss for the quarter ended
Net loss was
Adjusted EBITDA for the quarter ended
As of
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 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
- Date, Time:
Thursday, May 13, 2021 ,4:30 p.m. ET . - Toll-free: (833) 832-5128
- International: (484) 747-6583
- Conference ID: 9352518
- A live webcast and replay will be available at http://ir.cssentertainment.com/ under the “News & Events” tab
Conference Call Replay Information
- Toll-free: (855) 859-2056
- International: (404) 537-3406
- Conference ID: 9352518
ABOUT
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 Annual Report on Form 10-K for the year ended
FORWARD-LOOKING STATEMENTS
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 Annual Report on Form 10-K, filed with the
INVESTOR RELATIONS
Ellipsis
CSSE@ellipsisir.com
646-776-0886
MEDIA CONTACT
kbarrette@rooneyco.com
(212) 223-0561
Chicken Soup for the |
|||||||||
Condensed Consolidated Balance Sheets | |||||||||
2021 | 2020 | ||||||||
(unaudited) | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 24,569,875 | $ | 14,732,726 | |||||
Accounts receivable, net of allowance for doubtful accounts of |
26,854,738 | 25,996,947 | |||||||
Prepaid expenses and other current assets | 1,612,155 | 1,382,502 | |||||||
21,448,106 | 21,448,106 | ||||||||
Indefinite lived intangible assets | 12,163,943 | 12,163,943 | |||||||
Intangible assets, net | 18,165,038 | 19,370,490 | |||||||
Film library, net | 38,709,850 | 35,239,135 | |||||||
Due from affiliated companies | 4,389,378 | 5,648,652 | |||||||
Programming costs and rights, net | 13,841,702 | 15,781,183 | |||||||
Other assets, net | 4,476,459 | 4,517,102 | |||||||
Total assets | $ | 166,231,244 | $ | 156,280,786 | |||||
LIABILITIES AND EQUITY | |||||||||
9.50% Notes due 2025, net of deferred issuance costs of |
$ | 31,196,356 | $ | 31,097,467 | |||||
Notes payable under revolving credit facility | — | 2,500,000 | |||||||
Film acquisition advance | 6,195,174 | 8,659,136 | |||||||
Accounts payable and accrued other expenses | 20,884,463 | 21,394,957 | |||||||
Film library acquisition obligations | 14,854,918 | 8,616,562 | |||||||
Programming obligations | 2,804,125 | 4,697,316 | |||||||
Accrued participation costs | 7,529,515 | 12,535,651 | |||||||
Other liabilities | 2,767,892 | 1,677,906 | |||||||
Total liabilities | 86,232,443 | 91,178,995 | |||||||
Equity | |||||||||
Stockholders' Equity: | |||||||||
Series A cumulative redeemable perpetual preferred stock, |
370 | 210 | |||||||
Class A common stock, |
640 | 516 | |||||||
Class B common stock, |
766 | 766 | |||||||
Additional paid-in capital | 166,865,655 | 106,425,548 | |||||||
Deficit | (86,235,901 | ) | (77,247,982 | ) | |||||
Class A common stock held in treasury, at cost (74,235 shares) | (632,729 | ) | (632,729 | ) | |||||
Total stockholders’ equity | 79,998,801 | 28,546,329 | |||||||
Subsidiary convertible preferred stock | — | 36,350,000 | |||||||
Noncontrolling interests | — | 205,462 | |||||||
Total equity | 79,998,801 | 65,101,791 | |||||||
Total liabilities and equity | $ | 166,231,244 | $ | 156,280,786 | |||||
Chicken Soup for the |
||||||||
Condensed Consolidated Statements of Operations | ||||||||
(unaudited) | ||||||||
Three Months Ended |
||||||||
2021 | 2020 |
|||||||
Net revenue | $ | 23,196,842 | $ | 13,244,073 | ||||
Cost of revenue | 16,242,934 | 9,910,390 | ||||||
Gross profit | 6,953,908 | 3,333,683 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 9,234,819 | 6,839,897 | ||||||
Amortization and depreciation | 1,238,027 | 5,204,728 | ||||||
Management and license fees | 2,319,684 | 1,324,407 | ||||||
Total operating expenses | 12,792,530 | 13,369,032 | ||||||
Operating loss | (5,838,622 | ) | (10,035,349 | ) | ||||
Interest expense | 1,087,944 | 329,125 | ||||||
Acquisition-related costs | — | 98,926 | ||||||
Other non-operating income, net | (570 | ) | (6,438 | ) | ||||
Loss before income taxes and preferred dividends | (6,925,996 | ) | (10,456,962 | ) | ||||
Provision for income taxes | 14,000 | 49,000 | ||||||
Net loss before noncontrolling interests and preferred dividends | (6,939,996 | ) | (10,505,962 | ) | ||||
Net loss attributable to noncontrolling interests | — | (52,854 | ) | |||||
Net loss attributable to Chicken Soup for the |
(6,939,996 | ) | (10,453,108 | ) | ||||
Less: preferred dividends | 2,253,385 | 974,272 | ||||||
Net loss available to common stockholders | $ | (9,193,381 | ) | $ | (11,427,380 | ) | ||
Net loss per common share: | ||||||||
Basic and diluted | $ | (0.67 | ) | $ | (0.95 | ) | ||
Chicken Soup for the |
||||||||
Adjusted EBITDA | ||||||||
Three Months Ended |
||||||||
2021 | 2020 | |||||||
Net loss available to common stockholders | $ | (9,193,381 | ) | $ | (11,427,380 | ) | ||
Preferred dividends | 2,253,385 | 974,272 | ||||||
Provision for income taxes | 14,000 | 49,000 | ||||||
Other taxes | 84,493 | 53,411 | ||||||
Interest expense | 1,087,944 | 329,125 | ||||||
Film library and program rights amortization | 6,928,667 | 2,494,832 | ||||||
Share-based compensation expense | 231,844 | 244,835 | ||||||
Acquisition-related costs | — | 98,926 | ||||||
Reserve for bad debt and video returns | 694,212 | 1,721,595 | ||||||
Amortization and depreciation | 1,621,360 | 5,204,728 | ||||||
Other non-operating income, net | (570 | ) | (6,438 | ) | ||||
Transitional expenses | — | 2,113,469 | ||||||
All other nonrecurring costs | 840,050 | 186,948 | ||||||
Adjusted EBITDA | $ | 4,562,004 | $ | 2,037,323 | ||||
Source: Chicken Soup for the Soul Entertainment, Inc.