| | | | | ii | | | |
| | | | | iv | | | |
| | | | | v | | | |
| | | | | 1 | | | |
| | | | | 9 | | | |
| | | | | 42 | | | |
| | | | | 43 | | | |
| | | | | 44 | | | |
| | | | | 45 | | | |
| | | | | 47 | | | |
| | | | | 61 | | | |
| | | | | 86 | | | |
| | | | | 92 | | | |
| | | | | 98 | | | |
| | | | | 114 | | | |
| | | | | 121 | | | |
| | | | | 123 | | | |
| | | | | 126 | | | |
| | | | | 135 | | | |
| | | | | 138 | | | |
| | | | | 141 | | | |
| | | | | 142 | | | |
| | | | | 143 | | | |
| | | | | F-1 | | |
| | |
Nine months ended,
September 30, |
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
In thousands, except share and per share data
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Net revenue
|
| | | $ | 216,372 | | | | | $ | 465,208 | | | | | $ | 546,191 | | | | | $ | 858,370 | | | | | $ | 1,087,783 | | |
Product cost
|
| | | | 83,602 | | | | | | 187,865 | | | | | | 220,999 | | | | | | 359,880 | | | | | | 439,523 | | |
Gross margin
|
| | | $ | 132,770 | | | | | $ | 277,343 | | | | | $ | 325,192 | | | | | $ | 498,490 | | | | | $ | 648,260 | | |
Gross margin %
|
| | | | 61.4% | | | | | | 59.6% | | | | | | 59.5% | | | | | | 58.1% | | | | | | 59.6% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct operating
|
| | | | 98,155 | | | | | | 133,861 | | | | | | 167,090 | | | | | | 237,490 | | | | | | 274,155 | | |
Marketing
|
| | | | 10,743 | | | | | | 16,090 | | | | | | 21,214 | | | | | | 25,813 | | | | | | 33,020 | | |
General and administrative
|
| | | | 41,709 | | | | | | 46,840 | | | | | | 62,235 | | | | | | 67,158 | | | | | | 81,529 | | |
Depreciation and amortization
|
| | | | 81,317 | | | | | | 108,316 | | | | | | 136,838 | | | | | | 138,274 | | | | | | 133,493 | | |
Operating (loss) income
|
| | | | (99,154) | | | | | | (27,764) | | | | | | (62,185) | | | | | | 29,755 | | | | | | 126,063 | | |
Other expense, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense and other, net
|
| | | | (24,687) | | | | | | (24,848) | | | | | | (32,522) | | | | | | (44,578) | | | | | | (45,155) | | |
Total interest expense and other, net
|
| | | | (15,765) | | | | | | (18,333) | | | | | | (32,522) | | | | | | (44,578) | | | | | | (45,155) | | |
(Loss) income before income
taxes |
| | | | (123,841) | | | | | | (52,612) | | | | | | (94,707) | | | | | | (14,823) | | | | | | 80,908 | | |
Income tax (benefit) expense
|
| | | | (30,903) | | | | | | (13,477) | | | | | | (25,204) | | | | | | (7,256) | | | | | | 19,455 | | |
Net (loss) income
|
| | | $ | (92,938) | | | | | $ | (39,135) | | | | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | |
Weighted average shares outstanding – basic
|
| | | | 30,839,870 | | | | | | 27,870,539 | | | | | | 27,914,489 | | | | | | 27,786,839 | | | | | | 27,646,121 | | |
Weighted average shares outstanding – diluted
|
| | | | 30,839,870 | | | | | | 27,870,539 | | | | | | 27,914,989 | | | | | | 27,786,839 | | | | | | 28,182,614 | | |
(Loss) earnings per share – basic
|
| | | $ | (3.01) | | | | | $ | (1.40) | | | | | $ | (2.49) | | | | | $ | (0.27) | | | | | $ | 2.22 | | |
(Loss) earnings per share –
diluted |
| | | $ | (3.01) | | | | | $ | (1.40) | | | | | $ | (2.49) | | | | | $ | (0.27) | | | | | $ | 2.18 | | |
| | |
Nine months ended
September 30, |
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Net cash provided by / (used in) operating activities
|
| | | $ | (10,781) | | | | | $ | 36,878 | | | | | $ | 29,693 | | | | | $ | 102,797 | | | | | $ | 185,450 | | |
Net cash used in investing activities
|
| | | | (9,647) | | | | | | (16,113) | | | | | | (19,042) | | | | | | (31,765) | | | | | | (41,763) | | |
Net cash provided by / (used in) financing activities
|
| | | | 24,659 | | | | | | (22,695) | | | | | | (9,102) | | | | | | (74,100) | | | | | | (142,424) | | |
Total change in cash, cash equivalents and restricted cash
|
| | | $ | 4,231 | | | | | $ | (1,930) | | | | | $ | 1,549 | | | | | $ | (3,068) | | | | | $ | 1,263 | | |
| | |
As of September 30,
|
| |
As of December 31,
|
| ||||||||||||||||||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Total assets
|
| | | $ | 402,772 | | | | | $ | 478,174 | | | | | $ | 473,091 | | | | | $ | 637,059 | | | | | $ | 763,526 | | |
Total liabilities
|
| | | | 477,611 | | | | | | 446,367 | | | | | | 455,852 | | | | | | 550,371 | | | | | | 669,130 | | |
Total shareholders’ equity
|
| | | | (74,839) | | | | | | 31,807 | | | | | | 17,239 | | | | | | 86,688 | | | | | | 94,396 | | |
| | |
Pro Forma Combined
|
| |||||||||
Shareholder
|
| |
No. of
Shares |
| |
%Ownership(1)
|
| ||||||
Redwood Intermediate Rollover Shares(1)
|
| | | | 32,770,000 | | | | | | 72.2% | | |
Seaport’s Public Stockholders
|
| | | | 2,028,777 | | | | | | 4.5% | | |
Backstop Shares(2)
|
| | | | 1,995,989 | | | | | | 4.4% | | |
PIPE Investors
|
| | | | 5,000,000 | | | | | | 11.0% | | |
Initial Stockholders
|
| | | | 3,593,750 | | | | | | 7.9% | | |
Total
|
| | | | 45,388,516 | | | | | | 100.0% | | |
(in thousands)
|
| |
Seaport
Global Acquisition Corp. (Historical) |
| |
Redwood
Intermediate LLC (Historical) |
| |
Pro Forma
Adjustments |
| | | | |
Combined
Pro Forma |
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 62 | | | | | $ | 13,158 | | | | | $ | 27,216 | | | |
(A)
|
| | | $ | 40,436 | | |
Accounts receivable, net of allowances
|
| | | | — | | | | | | 9,329 | | | | | | | | | | | | | | | 9,329 | | |
Due from related party
|
| | | | — | | | | | | 162 | | | | | | | | | | | | | | | 162 | | |
Content library
|
| | | | — | | | | | | 24,935 | | | | | | | | | | | | | | | 24,935 | | |
Income tax receivable
|
| | | | — | | | | | | 10,222 | | | | | | (4,341) | | | |
(N)
|
| | | | 5,881 | | |
Prepaid expenses and other current assets
|
| | | | 177 | | | | | | 9,446 | | | | | | (2,100) | | | |
(S)
|
| | | | 7,038 | | |
| | | | | | | | | | | | | | | | | (485) | | | |
(R)
|
| | | | | | |
Total current assets
|
| | | | 239 | | | | | | 67,252 | | | | | | 20,290 | | | | | | | | | 87,781 | | |
Cash and securities held in Trust Account
|
| | | | 145,218 | | | | | | — | | | | | | (145,218) | | | |
(B)
|
| | | | — | | |
Property and equipment, net
|
| | | | — | | | | | | 45,211 | | | | | | | | | | | | | | | 45,211 | | |
Goodwill
|
| | | | — | | | | | | 147,523 | | | | | | | | | | | | | | | 147,523 | | |
Intangible assets, net
|
| | | | — | | | | | | 142,063 | | | | | | | | | | | | | | | 142,063 | | |
Other long-term assets
|
| | | | 3 | | | | | | 723 | | | | | | | | | | | | | | | 726 | | |
Total assets
|
| | | | 145,460 | | | | | | 402,772 | | | | | | (124,928) | | | | | | | | | 423,304 | | |
Liabilities and Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade payables
|
| | | | — | | | | | | 31,161 | | | | | | — | | | | | | | | | 31,161 | | |
Due to related parties, net
|
| | | | — | | | | | | 357 | | | | | | — | | | | | | | | | 357 | | |
Accrued and other current liabilities
|
| | | | 530 | | | | | | 60,062 | | | | | | 7,020 | | | |
(P)
|
| | | | 58,971 | | |
| | | | | | | | | | | | | | | | | (6,541) | | | |
(Q)
|
| | | | | | |
| | | | | | | | | | | | | | | | | (2,100) | | | |
(S)
|
| | | | | | |
Total current liabilities
|
| | | | 530 | | | | | | 91,580 | | | | | | (1,621) | | | | | | | | | 90,489 | | |
Long-term debt, net
|
| | | | | | | | | | 361,890 | | | | | | (50,000) | | | |
(D)
|
| | | | 311,890 | | |
Other long-term liabilities
|
| | | | | | | | | | 13,944 | | | | | | (1,642) | | | |
(N)
|
| | | | 12,302 | | |
Warrant liability
|
| | | | 16,467 | | | | | | — | | | | | | — | | | | | | | | | 16,467 | | |
Deferred underwriting fee payable
|
| | | | 5,031 | | | | | | — | | | | | | (5,031) | | | |
(E)
|
| | | | — | | |
Tax receivables liability
|
| | | | | | | | | | — | | | | | | — | | | |
(N)
|
| | | | — | | |
Deferred income taxes, net
|
| | | | — | | | | | | 10,197 | | | | | | (7,035) | | | |
(N)
|
| | | | 3,162 | | |
Total liabilities
|
| | | | 22,028 | | | | | | 477,611 | | | | | | (65,329) | | | | | | | | | 434,310 | | |
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A common stock subject to possible redemption
|
| | | | 145,218 | | | | | | — | | | | | | (145,218) | | | |
(I)
|
| | | | — | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | 1 | | | | | | 3 | | | | | | 4 | | | |
(J)
|
| | | | 8 | | |
Additional paid-in capital
|
| | | | — | | | | | | 239,722 | | | | | | 72,680 | | | |
(M)
|
| | | | 312,402 | | |
Retained earnings (accumulated deficit)
|
| | | | (21,787) | | | | | | (314,564) | | | | | | 21,787 | | | |
(O)
|
| | | | (315,043) | | |
| | | | | | | | | | | | | | | | | (7,020) | | | |
(P)
|
| | | | | | |
| | | | | | | | | | | | | | | | | 6,541 | | | |
(Q)
|
| | | | | | |
Non-controlling interest
|
| | | | | | | | | | — | | | | | | (8,373) | | | |
(L)
|
| | | | (8,373) | | |
Total Equity
|
| | | | (21,786) | | | | | | (74,839) | | | | | | 85,619 | | | | | | | | | (11,006) | | |
Total liabilities, Commitments, and Stockholders’ Equity
|
| | | $ | 145,460 | | | | | $ | 402,772 | | | | | $ | (124,928) | | | | | | | | $ | 423,304 | | |
(in thousands, except share and per share data)
|
| |
Seaport Global
Acquisition Corp. (Historical) |
| |
Redwood
Intermediate LLC (Historical) |
| |
Pro Forma
Adjustments |
| | | | |
Combined
Pro Forma |
| ||||||||||||
Net revenue
|
| | | $ | — | | | | | $ | 216,372 | | | | | $ | — | | | | | | | | $ | 216,372 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product cost
|
| | | | — | | | | | | 83,602 | | | | | | | | | | | | | | | 83,602 | | |
Direct operating
|
| | | | — | | | | | | 98,440 | | | | | | | | | | | | | | | 98,440 | | |
Marketing
|
| | | | — | | | | | | 10,743 | | | | | | | | | | | | | | | 10,743 | | |
General and administrative
|
| | | | 1,416 | | | | | | 41,424 | | | | | | — | | | |
(AA)
|
| | | | 42,840 | | |
Depreciation and amortization
|
| | | | — | | | | | | 81,317 | | | | | | | | | | | | | | | 81,317 | | |
Total operating expenses
|
| | | | 1,416 | | | | | | 315,526 | | | | | | | | | | | | | | | 316,942 | | |
Operating loss
|
| | | | (1,416) | | | | | | (99,154) | | | | | | | | | | | | | | | (100,570) | | |
Other expense, net | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income from securities held in trust
account |
| | | | 24 | | | | | | — | | | | | | (24) | | | |
(BB)
|
| | | | — | | |
Transaction costs allocable to warrant liability
|
| | | | — | | | | | | — | | | | | | | | | | | | | | | — | | |
Compensation expense – private placement
warrants |
| | | | — | | | | | | — | | | | | | | | | | | | | | | — | | |
Change in fair value of warrant liability
|
| | | | 855 | | | | | | — | | | | | | | | | | | | | | | 855 | | |
Interest and other expense, net
|
| | | | — | | | | | | (24,687) | | | | | | 3,875 | | | |
(CC)
|
| | | | (20,812) | | |
Total other income (expense), net
|
| | | | 879 | | | | | | (24,687) | | | | | | 3,851 | | | | | | | | | (19,957) | | |
Loss before income taxes
|
| | | | (537) | | | | | | (123,841) | | | | | | 3,851 | | | | | | | | | (120,527) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | (30,903) | | | | | | 23,768 | | | |
(DD)
|
| | | | (7,135) | | |
Net loss
|
| | | $ | (537) | | | | | $ | (92,938) | | | | | $ | (19,917) | | | | | | | | $ | (113,392) | | |
Net loss attributable to non-controlling interest
|
| | | | | | | | | | | | | | | | (86,256) | | | |
(EE)
|
| | | | (86,256) | | |
Net loss attributable to controlling
interest |
| | | $ | (537) | | | | | $ | (92,938) | | | | | | | | | | | | | | $ | (27,136) | | |
Weighted average shares outstanding, Class
A redeemable common stock |
| | | | 14,375,000 | | | | | | N/A | | | | | | | | | | | | | | | | | |
Basic and diluted loss per share, Class A redeemable common stock
|
| | | $ | (0.03) | | | | | | N/A | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding, Class
B non-redeemable common stock |
| | | | 3,593,750 | | | | | | N/A | | | | | | | | | | | | | | | | | |
Basic and diluted loss per share, Class B non-redeemable common stock
|
| | | $ | (0.03) | | | | | | N/A | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding, basic
and diluted |
| | | | | | | | | | 30,839,870 | | | | | | | | | | | | | | | 45,388,516 | | |
Basic and diluted loss per share
|
| | | | | | | | | $ | (3.01) | | | | | | | | | | | | | | $ | (2.50) | | |
Weighted average shares outstanding, basic
and diluted, attributable to controlling interest |
| | | | | | | | | | | | | | | | | | | |
(GG)
|
| | | | 10,862,028 | | |
Basic and diluted loss per share, attributable
to controlling interest |
| | | | | | | | | | | | | | | | | | | | | | | | $ | (2.50) | | |
(in thousands, except share and per share data)
|
| |
Seaport Global
Acquisition Corp. (Historical) (As Restated) |
| |
Redwood
Intermediate LLC (Historical) |
| |
Pro Forma
Adjustments |
| | | | |
Combined
Pro Forma |
| ||||||||||||
Net revenue
|
| | | $ | — | | | | | $ | 546,191 | | | | | $ | — | | | | | | | | $ | 546,191 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Product cost
|
| | | | — | | | | | | 220,999 | | | | | | | | | | | | | | | 220,999 | | |
Direct operating
|
| | | | — | | | | | | 167,090 | | | | | | | | | | | | | | | 167,090 | | |
Marketing
|
| | | | — | | | | | | 21,214 | | | | | | | | | | | | | | | 21,214 | | |
General and administrative
|
| | | | 192 | | | | | | 62,235 | | | | | | 7,020 | | | |
(AA), (FF)
|
| | | | 69,447 | | |
Depreciation and amortization
|
| | | | — | | | | | | 136,838 | | | | | | | | | | | | | | | 136,838 | | |
Total operating expenses
|
| | | | 192 | | | | | | 608,376 | | | | | | 7,020 | | | | | | | | | 615,588 | | |
Operating loss
|
| | | | (192) | | | | | | (62,185) | | | | | | (7,020) | | | | | | | | | (69,397) | | |
Other expense, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income from securities held in
trust account |
| | | | 7 | | | | | | — | | | | | | (7) | | | |
(BB)
|
| | | | — | | |
Transaction costs allocable to warrant
liability |
| | | | (861) | | | | | | — | | | | | | | | | | | | | | | (861) | | |
Compensation expense – private placement warrants
|
| | | | (2,298) | | | | | | — | | | | | | | | | | | | | | | (2,298) | | |
Change in fair value of warrant liability
|
| | | | 5,441 | | | | | | — | | | | | | | | | | | | | | | 5,441 | | |
Interest and other expense, net
|
| | | | — | | | | | | (32,522) | | | | | | 4,847 | | | |
(CC)
|
| | | | (27,675) | | |
Total other income (expense), net
|
| | | | 2,289 | | | | | | (32,522) | | | | | | 4,840 | | | | | | | | | (25,393) | | |
Income (loss) before income taxes
|
| | | | 2,097 | | | | | | (94,707) | | | | | | (2,180) | | | | | | | | | (94,790) | | |
Income tax expense (benefit)
|
| | | | — | | | | | | (25,204) | | | | | | 19,450 | | | |
(DD)
|
| | | | (5,754) | | |
Net income (loss)
|
| | | $ | 2,097 | | | | | $ | (69,503) | | | | | $ | (21,630) | | | | | | | | $ | (89,036) | | |
Less: Net loss attributable to non-controlling interest
|
| | | | — | | | | | | — | | | | | | (67,729) | | | |
(EE)
|
| | | | (67,729) | | |
Net income (loss) attributable to controlling interest
|
| | | $ | 2,097 | | | | | $ | (69,503) | | | | | | | | | | | | | | $ | (21,307) | | |
Weighted average shares outstanding, Class A redeemable common stock
|
| | | | 2,605,469 | | | | | | N/A | | | | | | | | | | | | | | | | | |
Basic and diluted loss per share, Class
A redeemable common stock |
| | | $ | 0.34 | | | | | | N/A | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding, Class B non-redeemable common stock
|
| | | | 3,593,750 | | | | | | N/A | | | | | | | | | | | | | | | | | |
Basic and diluted loss per share, Class
B non-redeemable common stock |
| | | $ | 0.34 | | | | | | N/A | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding, basic and diluted
|
| | | | | | | | | | 27,906,742 | | | | | | | | | | | | | | | 45,388,516 | | |
Basic and diluted loss per share
|
| | | | | | | | | $ | (2.49) | | | | | | | | | | | | | | $ | (1.96) | | |
Weighted average shares outstanding, basic and diluted, attributable to controlling interest
|
| | | | | | | | | | | | | | | | | | | |
(GG)
|
| | | | 10,862,028 | | |
Basic and diluted loss per share, attributable to controlling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | $ | (1.96) | | |
| | | | | | | | |
September 30,
2021 |
| |||
Cash and investments held in trust account
|
| | | | (B) | | | | | $ | 145,218 | | |
Payment of estimated transaction fees
|
| | | | (C) | | | | | | (8,407) | | |
Prepayment of outstanding facility loans
|
| | | | (D) | | | | | | (50,000) | | |
Payment of deferred underwriting fees
|
| | | | (E) | | | | | | (5,031) | | |
Proceeds from PIPE Investment
|
| | | | (F) | | | | | | 50,000 | | |
Actual redemptions of Seaport public shares
|
| | | | (G) | | | | | | (124,724) | | |
Proceeds from issuance of Backstop Agreements shares
|
| | | | (G) | | | | | | 20,160 | | |
Total | | | |
|
(A)
|
| | | | $ | 27,216 | | |
| | | | | | | | |
September 30,
2021 |
| |||
Issuance of Seaport Class A common stock pursuant to PIPE Investment
|
| | | | (F) | | | | | $ | 1 | | |
Actual redemption of Seaport public shares
|
| | | | (G) | | | | | | (1) | | |
Issuance of Backstop Agreement Shares
|
| | | | (G) | | | | | | — | | |
Recapitalization of Redwood Intermediate Common Units to Class A common stock of Seaport
|
| | | | (H) | | | | | | 3 | | |
Reclassification of Seaport Class A common stock subject to redemption
|
| | | | (I) | | | | | | 1 | | |
Total | | | | | (J) | | | | | $ | 4 | | |
| | | | | | | | |
September 30,
2021 |
| |||
Payment of estimated transaction fees for Redwood Intermediate
|
| | | | (C) | | | | | $ | (8,407) | | |
Reclassification of previously paid estimated transaction fees
|
| | | | (R) | | | | | | (485) | | |
Proceeds from PIPE Investment
|
| | | | (F) | | | | | | 50,000 | | |
Actual redemption of Seaport public shares
|
| | | | (G) | | | | | | (124,723) | | |
Issuance of Backstop Agreement shares
|
| | | | (G) | | | | | | 20,159 | | |
Recapitalization of Redbox Common Units to Class A common stock of Seaport
|
| | | | (H) | | | | | | (3) | | |
Reclassification of Seaport Class A common stock subject to redemption
|
| | | | (I) | | | | | | 145,217 | | |
Reclassification of Seaport Class B common stock
|
| | | | (K) | | | | | | — | | |
Non-controlling interest
|
| | | | (L) | | | | | | 8,373 | | |
Reclassification of Seaport’s historical retained earnings
|
| | | | (O) | | | | | | (21,787) | | |
Deferred tax asset
|
| | | | (N) | | | | | | 4,336 | | |
Total | | | | | (M) | | | | | $ | 72,680 | | |
| | |
Pro Forma Combined
|
| |||||||||
| | |
Tax Effect
|
| |
%
|
| ||||||
Tax at statutory rate
|
| | | $ | (25,311) | | | | | | 21.0% | | |
State income taxes
|
| | | | (4,996) | | | | | | 4.1% | | |
Effect of noncontrolling interest
|
| | | | 23,029 | | | | | | (19.1)% | | |
Change in warrant liability
|
| | | | (228) | | | | | | 0.2% | | |
Other
|
| | | | (225) | | | | | | 0.2% | | |
Change in valuation allowance
|
| | | | 596 | | | | | | (0.5)% | | |
| | | | $ | (7,135) | | | | | | 5.9% | | |
| | |
Pro Forma Combined
|
| |||||||||
| | |
Tax Effect
|
| |
%
|
| ||||||
Tax at statutory rate
|
| | | $ | (19,906) | | | | | | 21.0% | | |
State income taxes
|
| | | | (3,934) | | | | | | 4.1% | | |
Effect of noncontrolling interest
|
| | | | 18,595 | | | | | | (19.6)% | | |
Change in warrant liability
|
| | | | (576) | | | | | | 0.6% | | |
Other
|
| | | | (557) | | | | | | 0.6% | | |
Change in valuation allowance
|
| | | | 624 | | | | | | (0.7)% | | |
| | | | $ | (5,754) | | | | | | 6.1% | | |
| | |
Nine Months Ended
September 30, 2021 |
| |
Year Ended
December 31, 2020 |
| ||||||
(amounts in thousands)
|
| |
Pro Forma
Combined |
| |
Pro Forma
Combined |
| ||||||
Pro forma net loss
|
| | | $ | (113,392) | | | | | $ | (89,036) | | |
Non-controlling interest percentage
|
| | | | 76.1% | | | | | | 76.1% | | |
Non-controlling interest pro forma adjustment
|
| | | | (86,256) | | | | | | (67,729) | | |
Net loss attributable to controlling interest
|
| | | $ | (27,136) | | | | | $ | (21,307) | | |
| | |
Year Ended
December 31, 2020 |
| |||
| | |
Pro Forma
Combined |
| |||
Pro forma net loss (in thousands)
|
| | | $ | (89,036) | | |
Basic weighted average shares outstanding
|
| | | | 45,388,516 | | |
Net loss per share, basic and diluted
|
| | | $ | (1.96) | | |
| | |
Period Ended
September 30, 2021 |
| |||
| | |
Pro Forma
Combined |
| |||
Pro forma net loss (in thousands)
|
| | | $ | (113,392) | | |
Basic weighted average shares outstanding
|
| | | | 45,388,516 | | |
Net loss per share, basic and diluted
|
| | | $ | (2.50) | | |
Key Financial Measures
Dollars in thousands |
| |
Nine Months Ended
September 30, |
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||
Total net revenue
|
| | | $ | 216,372 | | | | | $ | 465,208 | | | | | $ | 546,191 | | | | | $ | 858,370 | | | | | $ | 1,087,783 | | |
Product cost
|
| | | $ | 83,602 | | | | | $ | 187,865 | | | | | $ | 220,999 | | | | | $ | 359,880 | | | | | $ | 439,523 | | |
Gross margin
|
| | | $ | 132,770 | | | | | $ | 277,343 | | | | | $ | 325,192 | | | | | $ | 498,490 | | | | | $ | 648,260 | | |
Gross margin %
|
| | | | 61.4% | | | | | | 59.6% | | | | | | 59.5% | | | | | | 58.1% | | | | | | 59.6% | | |
Adjusted EBITDA
|
| | | $ | (6,683) | | | | | $ | 109,775 | | | | | $ | 113,776 | | | | | $ | 195,649 | | | | | $ | 292,046 | | |
Adjusted EBITDA as a % of net revenue
|
| | | | (3.1)% | | | | | | 23.6% | | | | | | 20.8% | | | | | | 22.8% | | | | | | 26.8% | | |
Retail footprint | | | | | | | | | | | | | | | | | |||||||||||||||
Ending number of kiosks
|
| | | | 38,632 | | | | | | 40,539 | | | | | | 40,026 | | | | | | 41,420 | | | | | | 41,597 | | |
Ending number of locations
|
| | | | 32,751 | | | | | | 34,070 | | | | | | 33,661 | | | | | | 34,758 | | | | | | 34,743 | | |
Physical Theatrical Titles Released in Period
|
| | | | 33 | | | | | | 63 | | | | | | 68 | | | | | | 140 | | | | | | 160 | | |
| | |
Nine Months Ended
September 30, |
| |
Nine Months Ended
September 30, 2021 vs 2020 YTD |
| ||||||||||||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Net revenue
|
| | | $ | 216,372 | | | | | $ | 465,208 | | | | | $ | (248,836) | | | | | | (53.5)% | | |
Product cost
|
| | | | 83,602 | | | | | | 187,865 | | | | | | 104,263 | | | | | | 55.5% | | |
Gross margin
|
| | | $ | 132,770 | | | | | $ | 277,343 | | | | | $ | (144,573) | | | | | | (52.1)% | | |
Gross margin %
|
| | | | 61.4% | | | | | | 59.6% | | | | | | | | | | | | 1.8% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct operating
|
| | | | 98,155 | | | | | | 133,861 | | | | | | 35,706 | | | | | | 26.7% | | |
Marketing
|
| | | | 10,743 | | | | | | 16,090 | | | | | | 5,347 | | | | | | 33.2% | | |
General and administrative
|
| | | | 41,709 | | | | | | 46,840 | | | | | | 5,131 | | | | | | 11.0% | | |
Depreciation and amortization
|
| | | | 81,317 | | | | | | 108,316 | | | | | | 26,999 | | | | | | 24.9% | | |
Operating loss
|
| | | | (99,154) | | | | | | (27,764) | | | | | | (71,390) | | | | | | n.m. | | |
Interest and other expense, net
|
| | | | (24,687) | | | | | | (24,848) | | | | | | 161 | | | | | | 0.6% | | |
Loss before income taxes
|
| | | | (123,841) | | | | | | (52,612) | | | | | | (71,229) | | | | | | n.m. | | |
Income tax benefit
|
| | | | (30,903) | | | | | | (13,477) | | | | | | 17,426 | | | | | | n.m. | | |
Net loss
|
| | | $ | (92,938) | | | | | $ | (39,135) | | | | | $ | (53,803) | | | | | | n.m. | | |
Adjusted EBITDA(1)
|
| | | $ | (6,683) | | | | | $ | 109,775 | | | | | $ | (116,458) | | | | | | (106.1)% | | |
Ending number of kiosks
|
| | | | 38,632 | | | | | | 40,539 | | | | | | (1,907) | | | | | | (4.7)% | | |
Physical Theatrical Titles Released in Period
|
| | | | 33 | | | | | | 63 | | | | | | (30) | | | | | | (47.6)% | | |
Dollars in thousands
|
| |
Nine Months Ended
September 30, |
| |
Nine Months Ended
September 30, 2021 vs 2020 |
| | ||||||||||||||||||||
|
2021
|
| |
2020
|
| |
$
|
| |
%
|
| | ||||||||||||||||
Net revenue
|
| | | $ | 192,025 | | | | | $ | 433,215 | | | | | $ | (241,190) | | | | | | (55.7)% | | | | ||
Adjusted EBITDA
|
| | | | (8,940) | | | | | | 106,133 | | | | | | (115,073) | | | | | | (108.4)% | | | | ||
Adjusted EBITDA margin
|
| | | | (4.7)% | | | | | | 24.5% | | | | | | | | | | | | n.m. | | | | | |
Dollars in thousands
|
| |
Nine Months Ended
September 30, |
| |
Nine Months Ended
September 30, 2021 vs 2020 |
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||||
Physical Theatrical Titles Released
|
| | | | 33 | | | | | | 63 | | | | | | (30) | | | | | | (47.6)% | | |
Physical Rentals (in thousands)
|
| | | | 47,858 | | | | | | 127,226 | | | | | | (79,368) | | | | | | (62.4)% | | |
Net kiosk rental revenue per physical rental
|
| | | $ | 3.26 | | | | | $ | 3.13 | | | | | $ | 0.13 | | | | | | 4.2% | | |
| | |
Nine Months Ended
September 30, |
| |
Nine Months Ended
September 30, 2021 vs 2020 |
| | ||||||||||||||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| | ||||||||||||||
Net revenue
|
| | | $ | 24,347 | | | | | $ | 31,993 | | | | | $ | (7,646) | | | | | | (23.9)% | | | | ||
Adjusted EBITDA
|
| | | | 2,257 | | | | | | 3,642 | | | | | | (1,385) | | | | | | (38.0)% | | | | ||
Adjusted EBITDA margin
|
| | | | 9.3% | | | | | | 11.4% | | | | | | | | | | | | (2.1)% | | | | | |
Dollars in thousands
|
| |
For the years ended December 31,
|
| |
2020 vs 2019
|
| |
2019 vs 2018
|
| | |||||||||||||||||||||||||||||||||||
|
2020
|
| |
2019
|
| |
2018
|
| |
$
|
| |
%
|
| |
$
|
| |
%
|
| | |||||||||||||||||||||||||
Net revenue . . . . . . . .
|
| | | $ | 546,191 | | | | | $ | 858,370 | | | | | $ | 1,087,783 | | | | | $ | (312,179) | | | | | | (36.4)% | | | | | $ | (229,413) | | | | | | (21.1)% | | | | ||
Product cost . . . . . . .
|
| | | | 220,999 | | | | | | 359,880 | | | | | | 439,523 | | | | | | 138,881 | | | | | | 38.6% | | | | | | 79,643 | | | | | | 18.1% | | | | ||
Gross margin . . . . . . .
|
| | | $ | 325,192 | | | | | $ | 498,490 | | | | | $ | 648,260 | | | | | $ | (173,298) | | | | | | (34.8)% | | | | | $ | (149,770) | | | | | | (23.1)% | | | | ||
Gross margin % . . . . .
|
| | | | 59.5% | | | | | | 58.1% | | | | | | 59.6% | | | | | | 1.4% | | | | | | (1.5)% | | | | | | | | | | | | | | | | ||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Direct operating . . . . .
|
| | | | 167,090 | | | | | | 237,490 | | | | | | 274,155 | | | | | | 70,400 | | | | | | 29.6% | | | | | | 36,665 | | | | | | 13.4% | | | | ||
Marketing . . . . . . . . .
|
| | | | 21,214 | | | | | | 25,813 | | | | | | 33,020 | | | | | | 4,599 | | | | | | 17.8% | | | | | | 7,207 | | | | | | 21.8% | | | | ||
General and administrative . . . . .
|
| | | | 62,235 | | | | | | 67,158 | | | | | | 81,529 | | | | | | 4,923 | | | | | | 7.3% | | | | | | 14,371 | | | | | | 17.6% | | | | ||
Depreciation and amortization . . . . . .
|
| | | | 136,838 | | | | | | 138,274 | | | | | | 133,493 | | | | | | 1,436 | | | | | | 1.0% | | | | | | (4,781) | | | | | | (3.6)% | | | | ||
Operating (loss) income . . . . . . . . . .
|
| | | | (62,185) | | | | | | 29,755 | | | | | | 126,063 | | | | | | (91,940) | | | | | | n.m. | | | | | | (96,308) | | | | | | (76.4)% | | | | ||
Other expense, net: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Interest expense and other, net . . . . . . . .
|
| | | | (32,522) | | | | | | (44,578) | | | | | | (45,155) | | | | | | 12,056 | | | | | | 27.0% | | | | | | 577 | | | | | | 1.3% | | | | ||
Total interest expense and other, net . . . . .
|
| | | | (32,522) | | | | | | (44,578) | | | | | | (45,155) | | | | | | 12,056 | | | | | | 27.0% | | | | | | 577 | | | | | | 1.3% | | | | ||
(Loss) income before income taxes . . . . . .
|
| | | | (94,707) | | | | | | (14,823) | | | | | | 80,098 | | | | | | (79,884) | | | | | | n.m. | | | | | | (95,731) | | | | | | (118.3)% | | | | ||
Income tax (benefit) expense . . . . . . . . .
|
| | | | (25,204) | | | | | | (7,256) | | | | | | 19,455 | | | | | | 17,948 | | | | | | n.m. | | | | | | 26,711 | | | | | | 137.3% | | | | ||
Net (loss) income . . . .
|
| | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | | | | $ | (61,936) | | | | | | n.m. | | | | | $ | (69,020) | | | | | | (112.3)% | | | | ||
Adjusted EBITDA(1) . .
|
| | | $ | 113,776 | | | | | $ | 195,649 | | | | | $ | 292,046 | | | | | $ | (81,873) | | | | | | (41.8)% | | | | | $ | (96,397) | | | | | | (33.0)% | | | | ||
Ending number of kiosks. . . . . . . . . . .
|
| | | | 40,026 | | | | | | 41,420 | | | | | | 41,597 | | | | | | (1,394) | | | | | | (3.4)% | | | | | | (177) | | | | | | (0.4)% | | | | ||
Physical Theatrical Titles Released in Period
. . . . . . . . . . |
| | | | 68 | | | | | | 140 | | | | | | 160 | | | | | | (72) | | | | | | (51.4)% | | | | | | (20) | | | | | | (12.5)% | | | | | |
Dollars in thousands
|
| |
Year ended
|
| |
2020 vs 2019
|
| ||||||||||||||||||
|
December 31,
2020 |
| |
December 31,
2019 |
| |
$
|
| |
%
|
| ||||||||||||||
Net revenue
|
| | | $ | 506,437 | | | | | $ | 838,627 | | | | | $ | (332,190) | | | | | | (39.6)% | | |
Adjusted EBITDA
|
| | | | 109,074 | | | | | | 197,887 | | | | | | (88,813) | | | | | | (44.9)% | | |
Adjusted EBITDA margin
|
| | | | 21.5% | | | | | | 23.6% | | | | | | | | | | | | (210)pts | | |
Physical Theatrical Titles Released
|
| | | | 68 | | | | | | 140 | | | | | | (72) | | | | | | (51.4)% | | |
Physical Rentals (in thousands)
|
| | | | 146,364 | | | | | | 250,111 | | | | | | (103,747) | | | | | | (41.5)% | | |
Net kiosk rental revenue per physical rental
|
| | | $ | 3.12 | | | | | $ | 3.12 | | | | | $ | — | | | | | | —% | | |
Dollars in thousands
|
| |
Year ended
|
| |
2020 vs 2019
|
| ||||||||||||||||||
|
December 31,
2020 |
| |
December 31,
2019 |
| |
$
|
| |
%
|
| ||||||||||||||
Net revenue
|
| | | $ | 39,754 | | | | | $ | 19,743 | | | | | $ | 20,011 | | | | | | 101.4% | | |
Adjusted EBITDA
|
| | | | 4,702 | | | | | | (2,238) | | | | | | 6,940 | | | | | | n.m. | | |
Adjusted EBITDA margin
|
| | | | 11.8% | | | | | | (11.3)% | | | | | | | | | | | | n.m. | | |
Dollars in thousands
|
| |
Year ended
|
| |
2019 vs 2018
|
| ||||||||||||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| |
$
|
| |
%
|
| ||||||||||||||
Net revenue
|
| | | $ | 838,627 | | | | | $ | 1,077,731 | | | | | $ | (239,104) | | | | | | (22.2)% | | |
Adjusted EBITDA
|
| | | | 197,887 | | | | | | 289,765 | | | | | | (91,878) | | | | | | (31.7)% | | |
Adjusted EBITDA margin
|
| | | | 23.6% | | | | | | 26.9% | | | | | | | | | | | | (330)pts | | |
Physical Theatrical Titles Released
|
| | | | 140 | | | | | | 160 | | | | | | (20) | | | | | | (12.5)% | | |
Physical Rentals (in thousands)
|
| | | | 250,111 | | | | | | 324,362 | | | | | | (74,251) | | | | | | (22.9)% | | |
Net kiosk rental revenue per physical rental
|
| | | $ | 3.12 | | | | | $ | 3.14 | | | | | $ | (0.02) | | | | | | (0.5)% | | |
Dollars in thousands
|
| |
Year ended
|
| |
2019 vs 2018
|
| ||||||||||||||||||
|
December 31,
2019 |
| |
December 31,
2018 |
| |
$
|
| |
%
|
| ||||||||||||||
Net revenue
|
| | | $ | 19,743 | | | | | $ | 10,052 | | | | | $ | 9,691 | | | | | | 96.4% | | |
Adjusted EBITDA
|
| | | | (2,238) | | | | | | 2,281 | | | | | | (4,519) | | | | | | n.m. | | |
Adjusted EBITDA margin
|
| | | | (11.3)% | | | | | | 22.7% | | | | | | | | | | | | n.m. | | |
| | |
Nine Months Ended
September 30, |
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Net (loss) income
|
| | | $ | (92,938) | | | | | $ | (39,135) | | | | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | |
Depreciation and amortization
|
| | | | 81,317 | | | | | | 108,316 | | | | | | 136,838 | | | | | | 138,274 | | | | | | 133,493 | | |
Interest and other expense, net
|
| | | | 24,687 | | | | | | 24,848 | | | | | | 32,522 | | | | | | 44,578 | | | | | | 45,155 | | |
Income tax (benefit) expense
|
| | | | (30,903) | | | | | | (13,477) | | | | | | (25,204) | | | | | | (7,256) | | | | | | 19,455 | | |
EBITDA
|
| | | | (17,837) | | | | | | 80,552 | | | | | | 74,653 | | | | | | 168,029 | | | | | | 259,556 | | |
Adjustments to EBITDA: | | | | | | | | | | | | | | | | | |||||||||||||||
Business optimization(a)
|
| | | | 5,605 | | | | | | 15,142 | | | | | | 19,011 | | | | | | 7,687 | | | | | | 1,227 | | |
One-time non-recurring(b)
|
| | | | 2,737 | | | | | | 5,934 | | | | | | 10,600 | | | | | | 5,482 | | | | | | 13,229 | | |
New business start-up costs(c)
|
| | | | 1,004 | | | | | | 4,821 | | | | | | 6,041 | | | | | | 3,793 | | | | | | 10,060 | | |
Restructuring related(d)
|
| | | | 1,808 | | | | | | 3,326 | | | | | | 3,471 | | | | | | 4,432 | | | | | | 625 | | |
Discontinuation of games business(e)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 6,226 | | | | | | 7,349 | | |
Adjusted EBITDA
|
| | | $ | (6,683) | | | | | $ | 109,775 | | | | | $ | 113,776 | | | | | $ | 195,649 | | | | | $ | 292,046 | | |
Dollars in thousands
|
| |
Repayment
Amount |
| |||
Remaining 2021
|
| | | $ | — | | |
2022
|
| | | | — | | |
2023
|
| | | | — | | |
2024
|
| | | | 330,749 | | |
Total
|
| | | $ | 330,749 | | |
| | |
Nine Months Ended
September 30, |
| |
Year ended December 31,
|
| ||||||||||||||||||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||
Net cash (used in) / provided by operating activities
|
| | | $ | (10,781) | | | | | $ | 36,878 | | | | | $ | 29,693 | | | | | $ | 102,797 | | | | | $ | 185,450 | | |
Net cash used in investing activities
|
| | | | (9,647) | | | | | | (16,113) | | | | | | (19,042) | | | | | | (31,765) | | | | | | (41,763) | | |
Net cash provided by / (used in) financing activities
|
| | | | 24,659 | | | | | | (22,695) | | | | | | (9,102) | | | | | | (74,100) | | | | | | (142,424) | | |
Total change in cash, cash equivalents and restricted cash
|
| | | $ | 4,231 | | | | | $ | (1,930) | | | | | $ | 1,549 | | | | | $ | (3,068) | | | | | $ | 1,263 | | |
Dollars in thousands
|
| |
2021
|
| |
2022
|
| |
2023
|
| |
2024
|
| |
2025 &
Beyond |
| |
Total
|
| ||||||||||||||||||
Long-term debt(1)
|
| | | $ | — | | | | | $ | — | | | | | $ | 281,563 | | | | | $ | — | | | | | $ | — | | | | | $ | 281,563 | | |
Contractual interest on long-term debt(1)
|
| | | | 36,590 | | | | | | 29,978 | | | | | | 9,291 | | | | | | — | | | | | | — | | | | | | 75,859 | | |
Revolving credit facilities(1)
|
| | | | — | | | | | | — | | | | | | 32,550 | | | | | | — | | | | | | — | | | | | | 32,550 | | |
Capital lease obligations(2)
|
| | | | 2,836 | | | | | | 1,895 | | | | | | 470 | | | | | | 27 | | | | | | | | | | | | 5,228 | | |
Operating lease obligations, net(2)
|
| | | | 2,591 | | | | | | 1,994 | | | | | | 1,614 | | | | | | 923 | | | | | | 546 | | | | | | 7,668 | | |
Asset retirement obligations(4)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,556 | | | | | | 8,556 | | |
Minimum estimated movie content commitments(2)
|
| | | | 38,319 | | | | | | 21,469 | | | | | | — | | | | | | — | | | | | | — | | | | | | 59,788 | | |
Other(5) | | | | | 2,279 | | | | | | 149 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,428 | | |
Total(3) | | | | $ | 82,615 | | | | | $ | 55,485 | | | | | $ | 325,488 | | | | | $ | 950 | | | | | $ | 9,102 | | | | | $ | 473,640 | | |
Name
|
| |
Age
|
| |
Position
|
|
Executive Officers | | | | | | | |
Galen C. Smith | | |
45
|
| | Chief Executive Officer and Director | |
Kavita Suthar | | |
40
|
| | Chief Financial and Principal Accounting Officer | |
Jason K. Kwong | | |
45
|
| | Chief Strategy and Digital Officer | |
Michael D. Chamberlain | | |
48
|
| | Chief Operating Officer | |
Stephen Lavin | | |
59
|
| | Chief Technology Officer | |
Michael F. Feldner | | |
44
|
| | Chief Marketing Officer | |
Frederick W. Stein | | |
57
|
| | Chief Legal Officer | |
Non-Employee Directors | | | | | | | |
Jay Burnham | | |
58
|
| | Director | |
Kimberly Kelleher | | |
50
|
| | Director | |
Vikas M. Keswani | | |
38
|
| | Director | |
Reed Rayman | | |
35
|
| | Director | |
Michael Redd | | |
41
|
| | Director | |
David B. Sambur | | |
41
|
| | Director | |
Lee J. Solomon | | |
49
|
| | Director | |
Charles Yamarone | | |
62
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
All Other
Compensation ($)(2) |
| |
Total
($) |
| |||||||||||||||
Galen C. Smith
Chief Executive Officer
|
| | | | 2020 | | | | | $ | 700,000 | | | | | $ | 3,069,583 | | | | | $ | 144,974 | | | | | $ | 3,914,557 | | |
Jason K. Kwong
Chief Strategy & Digital Officer
|
| | | | 2020 | | | | | $ | 375,000 | | | | | $ | 863,542 | | | | | $ | 57,553 | | | | | $ | 1,296,095 | | |
Michael D. Chamberlain
Chief Operating Officer
|
| | | | 2020 | | | | | $ | 340,000 | | | | | $ | 565,750 | | | | | $ | 36,425 | | | | | $ | 942,175 | | |
Name
|
| |
Portion of
Retention Award Earned in 2020 |
| |
Additional Portion
of Retention Award earned in 2021 as of September 30, 2021 |
| |
Total Retention
Award |
| |||||||||
Galen C. Smith,
|
| | | $ | 2,413,333 | | | | | $ | 1,206,667 | | | | | $ | 7,240,000 | | |
Jason Kwong
|
| | | $ | 666,667 | | | | | $ | 333,333 | | | | | $ | 2,000,000 | | |
Michael Chamberlain
|
| | | $ | 400,000 | | | | | $ | 200,000 | | | | | $ | 1,200,000 | | |
| | |
Stock Awards
|
| |||||||||||||||||||||
Name
|
| |
Number of
Time-Based Shares or Units of Stock That Have not Vested (#)(1) |
| |
Market Value of
Time-Based Shares or Units of Stock that Have not Vested ($)(2) |
| |
Number of
Performance-Based Shares or Units of Stock That Have not Vested (#)(3) |
| |
Market Value of
Performance-Based Shares or Units of Stock that Have not Vested ($)(2) |
| ||||||||||||
Galen C. Smith
|
| | | | 39,600 | | | | | $ | 105,732 | | | | | | 569,656 | | | | | $ | 1,520,982 | | |
Jason K. Kwong
|
| | | | 28,000 | | | | | $ | 74,760 | | | | | | 155,000 | | | | | $ | 413,850 | | |
Michael D. Chamberlain
|
| | | | 8,000 | | | | | $ | 21,360 | | | | | | 90,000 | | | | | $ | 240,300 | | |
Name
|
| |
Grant Date
|
| |
Vesting Schedule
|
|
Galen C. Smith
|
| |
12/6/2016
|
| | Vests 20% per year over 5 years. The remaining 39,600 RSUs vested on September 27, 2021. | |
Jason K. Kwong
|
| |
12/7/2017
|
| | Vests 20% per year over 5 years. 14,000 of the remaining RSUs vested on September 25, 2021, and 14,000 of the remaining RSUs are scheduled to vest on September 25, 2022. | |
Michael D. Chamberlain
|
| |
12/6/2016
|
| | Vests 20% per year over 5 years. The remaining 8,000 RSUs vested on September 27, 2021. | |
| | |
Shares of
Class A Common Stock |
| |
Percent of
Class A Common Stock |
| |
Shares of
Class B Common Stock |
| |
Percent of
Class B Common Stock |
| |
Percent of
Total Voting Power(2) |
| |||||||||||||||
Name of Beneficial Owner(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Named Executive Officers and Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Galen C. Smith
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jason K. Kwong
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael D. Chamberlain
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jay Burnham
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Vikas M. Keswani
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Reed Rayman
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Michael Redd
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
David B. Sambur
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lee J. Solomon
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Charles Yamarone
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All Executive Officers and Directors as a Group (15 Individuals)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Five Percent Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redwood HoldCo LP(3)
|
| | | | — | | | | | | — | | | | | | 32,770,000 | | | | | | 100% | | | | | | 72.2% | | |
Seaport Global SPAC, LLC and affiliates(4)
|
| | | | 4,363,251 | | | | | | 34.6% | | | | | | — | | | | | | — | | | | | | 9.6% | | |
Ophir Asset Management Pty Ltd(5)
|
| | | | 3,000,000 | | | | | | 23.8% | | | | | | — | | | | | | — | | | | | | 6.6% | | |
AP VIII Aspen Holdings, L.P.(6)
|
| | | | 1,756,487 | | | | | | 13.9% | | | | | | — | | | | | | — | | | | | | 3.9% | | |
Funds affiliated with Standard General L.P.(7)
|
| | | | 995,000 | | | | | | 7.9% | | | | | | — | | | | | | — | | | | | | 2.2% | | |
| | |
Securities Beneficially Owned
Prior to this Offering |
| |
Securities to be Sold in this
Offering |
| |
Securities Beneficially Owned After this Offering
|
| |||||||||||||||||||||||||||||||||||||||
| | |
Common Stock
|
| |
Warrants
|
| |
Common Stock
|
| |
Warrants
|
| |
Common Stock
|
| |
Percent
|
| |
Warrants
|
| |
Percent
|
| ||||||||||||||||||||||||
Name of Selling Securityholder | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redwood Holdco, LP(1)
|
| | | | 32,770,000 | | | | | | — | | | | | | 32,770,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Seaport Global SPAC, LLC(2)
|
| | | | 3,593,750 | | | | | | 6,062,500 | | | | | | 3,593,750 | | | | | | 6,062,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Seaport Global Asset Management V2
LLC |
| | | | 60,994 | | | | | | — | | | | | | 60,994 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Seaport Global Asset Management V-Port LLC
|
| | | | 98,673 | | | | | | — | | | | | | 98,673 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Armory Fund LP
|
| | | | 609,834 | | | | | | — | | | | | | 609,834 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
AP VIII Aspen Holdings, L.P(3)
|
| | | | 1,756,487 | | | | | | — | | | | | | 1,756,487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Ophir Asset Management Pty Ltd(4)
|
| | | | 3,000,000 | | | | | | — | | | | | | 3,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Funds affiliated with Standard General
L.P.(5) |
| | | | 995,000 | | | | | | — | | | | | | 500,000 | | | | | | — | | | | | | 495,000 | | | | | | 1.1% | | | | | | — | | | | | | — | | |
Kepos Alpha Master Fund L.P.(6)
|
| | | | 400,000 | | | | | | — | | | | | | 400,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Thomas E. Bernard
|
| | | | 200,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Lions Gate Entertainment, Inc.(7)
|
| | | | 200,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Tricia M. Hedberg Revocable Trust
under agreement dated July 18, 2006, as amended(8) |
| | | | 100,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Legend Pictures, LLC(9)
|
| | | | 50,000 | | | | | | — | | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Thunder Road Film Productions,
Inc.(10) |
| | | | 10,000 | | | | | | — | | | | | | 10,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Screenvision Direct Inc.(11)
|
| | | | 10,000 | | | | | | — | | | | | | 10,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Page
|
| |||
Seaport Global Acquisition Corp. — Unaudited Condensed Financial Statements | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
Seaport Global Acquisition Corp. — Audited Financial Statements | | | | | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
| | | | F-21 | | | |
| | | | F-22 | | | |
Redwood Intermediate, LLC — Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
Redwood Intermediate, LLC — Audited Consolidated Financial Statements | | | | | | | |
| | | | F-58 | | | |
| | | | F-59 | | | |
| | | | F-60 | | | |
| | | | F-61 | | | |
| | | | F-62 | | | |
| | | | F-63 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 61,743 | | | | | $ | 948,584 | | |
Prepaid expenses
|
| | | | 177,159 | | | | | | 308,515 | | |
Total current assets
|
| | | | 238,902 | | | | | | 1,257,099 | | |
Investments held in Trust Account
|
| | | | 145,218,069 | | | | | | 145,194,202 | | |
Other Assets
|
| | | | 3,116 | | | | | | — | | |
Total Assets
|
| | | $ | 145,460,087 | | | | | $ | 146,451,301 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 530,044 | | | | | $ | 118,844 | | |
Due to related party
|
| | | | — | | | | | | 10,000 | | |
Total current liabilities
|
| | | | 530,044 | | | | | | 128,844 | | |
Warrant liability
|
| | | | 16,467,107 | | | | | | 17,322,751 | | |
Deferred underwriting fee payable
|
| | | | 5,031,250 | | | | | | 5,031,250 | | |
Total Liabilities
|
| | | | 22,028,401 | | | | | | 22,482,845 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, 14,375,000 shares at
redemption value at September 30, 2021 and December 31, 2020, respectively |
| | | | 145,218,069 | | | | | | 145,194,202 | | |
Stockholders’ Equity (Deficit) | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued
and outstanding |
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; none issued and outstanding (excluding 14,375,000 shares subject to possible redemption) as of September 30, 2021 and December 31, 2020, respectively
|
| | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 3,593,750 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
|
| | | | 359 | | | | | | 359 | | |
Additional paid-in capital
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (21,786,742) | | | | | | (21,226,105) | | |
Total Stockholders’ Equity (Deficit)
|
| | | | (21,786,383) | | | | | | (21,225,746) | | |
Total Liabilities and Stockholders’ Equity (Deficit)
|
| | | $ | 145,460,087 | | | | | $ | 146,451,301 | | |
| | |
Three Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2021 |
| ||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
Operating and formation costs
|
| | | $ | 500,559 | | | | | $ | 1,416,280 | | |
Loss from operations
|
| | | | (500,559) | | | | | | (1,416,280) | | |
Other income (expense): | | | | | | | | | | | | | |
Interest earned on investments held in Trust Account
|
| | | | 1,869 | | | | | | 23,867 | | |
Change in fair value of warrant liability
|
| | | | (1,344,965) | | | | | | 855,644 | | |
Total other income (expense)
|
| | | | (1,343,096) | | | | | | 879,511 | | |
Net loss
|
| | | $ | (1,843,655) | | | | | $ | (536,769) | | |
Weighted average shares outstanding, Class A redeemable common stock
|
| | | | 14,375,000 | | | | | | 14,375,000 | | |
Basic and diluted income per share, Class A redeemable common
stock |
| | | $ | (0.10) | | | | | $ | (0.03) | | |
Weighted average shares outstanding, Class B non-redeemable common stock
|
| | | | 3,593,750 | | | | | | 3,593,750 | | |
Basic and diluted net loss per share, Class B non-redeemable common stock
|
| | | $ | (0.10) | | | | | $ | (0.03) | | |
| | |
Class A
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Income (Deficit) |
| |
Total
Stockholder’s Equity (Deficit) |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance as of January 1, 2021
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | — | | | | | $ | (21,226,105) | | | | | $ | (21,225,746) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,128,710 | | | | | | 5,128,710 | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (17,259) | | | | | | (17,259) | | |
Balance as of March 31, 2021
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | — | | | | | $ | (16,114,654) | | | | | $ | (16,114,295) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,821,824) | | | | | | (3,821,824) | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,740) | | | | | | (4,740) | | |
Balance as of June 30, 2021
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | — | | | | | $ | (19,941,218) | | | | | $ | (19,940,859) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,843,655) | | | | | | (1,843,655) | | |
Change in value of Class A common stock subject to
possible redemption |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,869) | | | | | | (1,869) | | |
Balance as of September 30, 2021
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | — | | | | | $ | (21,786,742) | | | | | $ | (21,786,383) | | |
| Cash Flows from Operating Activities: | | | | | | | |
|
Net income (loss)
|
| | | $ | (536,769) | | |
|
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | |
|
Interest earned on marketable securities held in Trust Account
|
| | | | (23,867) | | |
|
Change in fair value of warrant liability
|
| | | | (855,644) | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid assets
|
| | | | 131,356 | | |
|
Other assets
|
| | | | (3,116) | | |
|
Accrued expenses
|
| | | | 411,199 | | |
|
Due to related party
|
| | | | (10,000) | | |
|
Net cash used in operating activities
|
| | | | (886,841) | | |
|
Net Change in Cash
|
| | | | (886,841) | | |
|
Cash – Beginning of period
|
| | | | 948,584 | | |
|
Cash – End of period
|
| | | $ | 61,743 | | |
| Non-cash financing activities: | | | | | | | |
|
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (23,867) | | |
| | |
Three Months
Ended September 30, 2021 |
| |
Nine Months
Ended September 30, 2021 |
| ||||||
Net Loss per share for Class A common stock: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,843,655) | | | | | $ | (536,769) | | |
Less: Allocation of loss to Class B common stock
|
| | | | (368,731) | | | | | | (107,354) | | |
Adjusted net loss
|
| | | $ | (1,474,924) | | | | | $ | (429,415) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 14,375,000 | | | | | | 14,375,000 | | |
Basic and diluted net loss per share, Class A common stock
|
| | | $ | (0.10) | | | | | $ | (0.03) | | |
Net Loss per share for Class B common stock: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,843,655) | | | | | $ | (536,769) | | |
Less: Allocation of loss to Class A common stock
|
| | | | (1,474,924) | | | | | | (429,415) | | |
Adjusted net loss
|
| | | $ | (368,731) | | | | | $ | (107,354) | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 3,593,750 | | | | | | 3,593,750 | | |
Basic and diluted net loss per share, Class B common stock
|
| | | $ | (0.10) | | | | | $ | (0.03) | | |
| | |
September 30,
2021 |
| |
Quoted
Prices In Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Other Unobservable Inputs (Level 3) |
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Money Market held in Trust Account
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
U.S Treasury Securities held in Trust Account
|
| | | | 145,218,068 | | | | | | 145,218,068 | | | | |
|
—
|
| | | |
|
—
|
| |
| | | | $ | 145,218,068 | | | | | $ | 145,218,068 | | | | | $ | — | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants Liability
|
| | | $ | 10,134,375 | | | | | $ | 10,134,375 | | | | | $ | — | | | | | $ | — | | |
Private Warrants Liability
|
| | | | 6,332,732 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 6,332,732 | | |
| | | | $ | 16,467,107 | | | | | $ | 10,134,375 | | | | | $ | — | | | | | $ | 6,332,732 | | |
| | |
December 31,
2021 |
| |
Quoted
Prices In Active Markets (Level 1) |
| |
Significant
Other Observable Inputs (Level 2) |
| |
Significant
Other Unobservable Inputs (Level 3) |
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Money Market held in Trust Account
|
| | | $ | 281 | | | | | $ | 281 | | | | | $ | — | | | | | $ | — | | |
U.S Treasury Securities held in Trust Account
|
| | | | 145,193,921 | | | | | | 145,193,921 | | | | |
|
—
|
| | | |
|
—
|
| |
| | | | $ | 145,194,202 | | | | | $ | 145,194,202 | | | | | $ | — | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants Liability
|
| | | $ | 10,975,313 | | | | | $ | 10,975,313 | | | | | $ | — | | | | | $ | — | | |
Private Warrants Liability
|
| | | | 6,347,438 | | | | |
|
—
|
| | | |
|
—
|
| | | | | 6,347,438 | | |
| | | | $ | 17,322,751 | | | | | $ | 10,975,313 | | | | | $ | — | | | | | $ | 6,347,438 | | |
Inputs
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Risk-free interest rate
|
| | | | 1.12% | | | | | | 0.5% | | |
Expected term remaining (years)
|
| | | | 5.82 | | | | | | 5.96 | | |
Expected volatility
|
| | | | 14.4% | | | | | | 16.2% | | |
Stock price
|
| | | $ | 10.060 | | | | | $ | 10.02 | | |
| Assets | | | | | | | |
|
Current assets
|
| | | | | | |
|
Cash
|
| | | $ | 948,584 | | |
|
Prepaid expenses
|
| | | | 308,515 | | |
|
Total current assets
|
| | | | 1,257,099 | | |
|
Investments held in Trust Account
|
| | | | 145,194,202 | | |
|
Total Assets
|
| | | $ | 146,451,301 | | |
| Liabilities and Stockholders’ Equity (Deficit) | | | | | | | |
|
Current liability – accounts payable and accrued expenses
|
| | | $ | 118,844 | | |
|
Due to related party
|
| | | | 10,000 | | |
|
Total current liabilities
|
| | | | 128,844 | | |
|
Warrant liability
|
| | | | 17,322,751 | | |
|
Deferred underwriting fee payable
|
| | | | 5,031,250 | | |
|
Total Liabilities
|
| | | | 22,482,845 | | |
| Commitments and contingencies | | | | | | | |
|
Class A common stock subject to possible redemption,14,375,000 shares at redemption value
|
| | | | 145,194,202 | | |
| Stockholders’ Equity (Deficit): | | | | | | | |
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding (less shares subject to possible redemption)
|
| | | | — | | |
|
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; none issued and
outstanding at December 31, 2020 (excluding 14,375,000 Class A common stock subject to possible redemption) |
| | | | — | | |
|
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 3,593,750 shares issued and outstanding at December 31, 2020
|
| | | | 359 | | |
|
Additional paid-in capital
|
| | | | — | | |
|
Accumulated deficit
|
| | | | (21,226,105) | | |
|
Total Stockholders’ Equity (Deficit)
|
| | | | (21,225,746) | | |
|
Total Liabilities and Stockholders’ Equity (Deficit)
|
| | | $ | 146,451,301 | | |
|
Formation and operating costs
|
| | | $ | 191,371 | | |
|
Loss from operations
|
| | | | (191,371) | | |
| Other income (expense) | | | | | | | |
|
Interest Income from securities held in Trust Account
|
| | | | 6,702 | | |
|
Transaction costs allocable to warrant liability
|
| | | | (861,400) | | |
|
Compensation Expense – private placement warrants
|
| | | | (2,297,689) | | |
|
Change in fair value of warranty liability
|
| | | | 5,441,188 | | |
|
Total other income
|
| | | | 2,288,801 | | |
|
Net Income
|
| | | $ | 2,097,430 | | |
|
Weighted average shares outstanding, Class A redeemable common stock
|
| | | | 2,605,469 | | |
|
Basic and diluted income per share, Class A redeemable common stock
|
| | | $ | 0.34 | | |
|
Weighted average shares outstanding, Class B non-redeemable common stock
|
| | | | 3,593,750 | | |
|
Basic and diluted income per share, Class B non-redeemable common stock
|
| | | $ | 0.34 | | |
| | |
Class A
Common stock |
| |
Class B
Common stock |
| |
Additional
Paid-in Capital |
| |
Accumulated
Income (Deficit) |
| |
Total
Stockholders’ Equity(Deficit) |
| |||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balance as of July 24, 2020 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to initial Stockholders
|
| | | | — | | | | | | — | | | | | | 3,593,750 | | | | | | 359 | | | | | | 24,641 | | | | | | — | | | | | | 25,000 | | |
Accretion for Class A common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,641) | | | | | | (23,323,535) | | | | | | (23,348,176) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,097,430 | | | | | | 2,097,430 | | |
Balance as of December 31, 2020
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | — | | | | | $ | (21,226,105) | | | | | $ | (21,225,746) | | |
| Cash flows from operating activities: | | | | | | | |
|
Net income
|
| | | $ | 2,097,430 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
|
Interest earned on securities held in Trust Account
|
| | | | (6,702) | | |
|
Change in fair value of warrant liability
|
| | | | (5,441,188) | | |
|
Transaction costs allocable to warrant liability
|
| | | | 861,400 | | |
|
Compensation Expense – private placement warrants
|
| | | | 2,297,689 | | |
|
Changes in operating assets and liabilities:
|
| | | | | | |
|
Prepaid assets
|
| | | | (308,515) | | |
|
Due to related party
|
| | | | 10,000 | | |
|
Accounts payable and accrued expenses
|
| | | | 118,844 | | |
|
Net cash used in operating activities
|
| | | | (371,042) | | |
| Cash flows from investing activities: | | | | | | | |
|
Investments held in Trust
|
| | | | (145,187,500) | | |
|
Net cash used in investing activities
|
| | | | (145,187,500) | | |
| Cash flows from financing activities: | | | | | | | |
|
Proceeds from sale of Class B common stock to initial stockholders
|
| | | | 25,000 | | |
|
Proceeds from sale of Units, net of offering costs
|
| | | | 140,419,626 | | |
|
Proceeds from issuance of Private Placement Warrants
|
| | | | 6,062,500 | | |
|
Net cash provided by financing activities
|
| | | | 146,507,126 | | |
|
Net change in cash
|
| | | | 948,584 | | |
|
Cash, beginning of the period
|
| | | | — | | |
|
Cash, end of period
|
| | | $ | 948,584 | | |
| Supplemental disclosure of cash flow information: | | | | | | | |
|
Non-cash investing and financing transactions:
|
| | | | | | |
|
Change in value of Class A common stock subject to possible redemption
|
| | | $ | 6,702 | | |
|
Deferred underwriting commissions payable charged to additional paid-in capital
|
| | | $ | 5,031,250 | | |
|
Initial classification of warrant liability
|
| | | $ | 22,763,938 | | |
| | |
As
Previously Reported |
| |
Adjustements
|
| |
As
Restated (First (Amendment) |
| |
Adjustments
|
| |
As
Restated (Second (Amendment) |
| |||||||||||||||
Balance Sheet as of December 2, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability
|
| | | $ | — | | | | | $ | 22,763,938 | | | | | $ | 22,763,938 | | | | | $ | — | | | | | $ | 22,763,938 | | |
Total liabilities
|
| | | | 5,259,504 | | | | | | 22,763,938 | | | | | | 28,023,442 | | | | | | — | | | | | | 28,023,442 | | |
Class A common stock subject to possible redemption
|
| | | | 136,471,644 | | | | | | (22,763,938) | | | | | | 113,707,706 | | | | | | 31,479,794 | | | | | | 145,187,500 | | |
Class A common stock
|
| | | | 86 | | | | | | 225 | | | | | | 311 | | | | | | (311) | | | | | | 0 | | |
Additional paid-in capital
|
| | | | 5,003,786 | | | | | | 3,158,862 | | | | | | 8,162,648 | | | | | | (8,162,648) | | | | |
|
—
|
| |
Accumulated deficit
|
| | | | (4,225) | | | | | | (3,159,088) | | | | | | (3,163,313) | | | | | | (23,316,835) | | | | | | (26,480,148) | | |
Total Stockholders’ Equity
|
| | | $ | 5,000,006 | | | | | $ | — | | | | | $ | 5,000,006 | | | | | $ | — | | | | | $ | 5,000,006 | | |
Number of shares subject to redemption
|
| | | | 13,512,044 | | | | | | (2,253,855) | | | | | | 11,258,189 | | | | | | 3,116,811 | | | | | | 14,375,000 | | |
Balance Sheet as of December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability
|
| | | $ | — | | | | | $ | 17,322,751 | | | | | $ | 17,322,751 | | | | | $ | — | | | | | $ | 17,322,751 | | |
Total liabilities
|
| | | | 5,160,094 | | | | | | 17,322,751 | | | | | | 22,482,845 | | | | | | — | | | | | | 22,482,845 | | |
Class A common stock subject to possible redemption
|
| | | | 136,291,206 | | | | | | (17,322,751) | | | | | | 118,968,455 | | | | | | 26,225,747 | | | | | | 145,194,202 | | |
Class A common stock
|
| | | | 88 | | | | | | 172 | | | | | | 260 | | | | | | (260) | | | | | | 0 | | |
Additional paid-in capital
|
| | | | 5,184,223 | | | | | | (2,282,271) | | | | | | 2,901,952 | | | | | | (2,901,952) | | | | |
|
—
|
| |
Retained earnings (Accumulated deficit)
|
| | | | (184,669) | | | | | | 2,282,099 | | | | | | 2,097,430 | | | | | | (23,323,535) | | | | | | (21,226,105) | | |
Total Stockholders’ Equity (Deficit)
|
| | | $ | 5,000,001 | | | | | $ | — | | | | | $ | 5,000,001 | | | | | $ | (26,225,747) | | | | | $ | (21,225,746) | | |
Number of shares subject to redemption
|
| | | | 13,494,179 | | | | | | (1,715,124) | | | | | | 11,779,055 | | | | | | 2,595,945 | | | | | | 14,375,000 | | |
Statement of Operations for the Period from July 24, 2020 (inception) through December 31, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liability
|
| | | $ | — | | | | | $ | 5,441,188 | | | | | $ | 5,441,188 | | | | | $ | — | | | | | $ | 5,441,188 | | |
Transaction costs
|
| | | | — | | | | | | (861,400) | | | | | | (861,400) | | | | | | — | | | | | | (861,400) | | |
Compensation Expense – private placement warrants
|
| | | | — | | | | | | (2,297,689) | | | | | | (2,297,689) | | | | | | — | | | | | | (2,297,689) | | |
Other income (expense), net
|
| | | | 6,702 | | | | | | 2,282,099 | | | | | | 2,288,801 | | | | | | — | | | | | | 2,288,801 | | |
Net income (loss)
|
| | | | (184,669) | | | | | | 2,282,099 | | | | | | 2,097,430 | | | | | | — | | | | | | 2,097,430 | | |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
|
| | | | 2,449,058 | | | | | | — | | | | | | 2,449,058 | | | | | | 156,411 | | | | | | 2,605,469 | | |
| | |
As
Previously Reported |
| |
Adjustements
|
| |
As
Restated (First (Amendment) |
| |
Adjustments
|
| |
As
Restated (Second (Amendment) |
| |||||||||||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 0.34 | | | | | $ | 0.34 | | |
Basic and diluted weighted average shares outstanding, non-redeemable common stock
|
| | | | 3,750,161 | | | | | | 408,511 | | | | | | 4,158,672 | | | | | | — | | | | | | 4,158,672 | | |
Basic and diluted net income (loss) per share, non-redeemable common stock
|
| | | $ | (0.05) | | | | | $ | 0.55 | | | | | $ | 0.50 | | | | | $ | (0.16) | | | | | $ | 0.34 | | |
Statement of Cash Flows for the Period July 24, 2020 (inception) through December 31, 2020
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | (184,669) | | | | | $ | 2,282,099 | | | | | $ | 2,097,430 | | | | | $ | — | | | | | $ | 2,097,430 | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liability
|
| | | | — | | | | | | (5,441,188) | | | | | | (5,441,188) | | | | | | — | | | | | | (5,441,188) | | |
Transaction costs
|
| | | | — | | | | | | 861,400 | | | | | | 861,400 | | | | | | — | | | | | | 861,400 | | |
Compensation Expense – private placement warrants
|
| | | | — | | | | | | 2,297,689 | | | | | | 2,297,689 | | | | | | — | | | | | | 2,297,689 | | |
| | |
For the
period ended December 31, 2020 |
| |||
Net Income per share of Class A Common Stock
|
| | | | | | |
Net income
|
| | | $ | 2,097,430 | | |
Less: Allocation of loss to Class B common stock
|
| | | | (1,215,880) | | |
Adjusted net income
|
| | | $ | 881,550 | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 2,605,469 | | |
Basic and diluted net income per share, Class A common stock
|
| | | $ | 0.34 | | |
Net Income per share for Class B common stock
|
| | | | | | |
Net income
|
| | | $ | 2,097,430 | | |
Less: Allocation of loss to Class A common stock
|
| | | | (881,550) | | |
Adjusted net income
|
| | | $ | 1,215,880 | | |
Weighted average shares outstanding of Class B common stock(1)
|
| | | | 3,593,570 | | |
Basic and diluted net income per share, Class B common stock
|
| | | $ | 0.34 | | |
| | |
Carrying
Value as of December 31, 2020 |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Fair Value
as of December 31, 2020 |
| ||||||||||||
U.S. Money Market
|
| | | $ | 281 | | | | | $ | — | | | | | $ | — | | | | | $ | 281 | | |
U.S. Treasury Securities
|
| | | | 145,193,921 | | | | | | — | | | | | | (2,174) | | | | | | 145,191,747 | | |
| | | | $ | 145,194,202 | | | | | $ | — | | | | | $ | (2,174) | | | | | $ | 145,192,028 | | |
| | |
December 31, 2020
|
| |||
Deferred tax asset | | | | | | | |
Organizational costs/Startup expenses
|
| | | $ | 21,692 | | |
Federal Net Operating loss
|
| | | | 17,089 | | |
Total deferred tax asset
|
| | | | 38,781 | | |
Valuation allowance
|
| | | | (38,781) | | |
Deferred tax asset, net of allowance
|
| | | $ | — | | |
| | |
December 31, 2020
|
| |||
Federal | | | | | | | |
Current
|
| | | $ | — | | |
Deferred
|
| | | | (38,781) | | |
State | | | | | | | |
Current
|
| | | | — | | |
Deferred
|
| | | | — | | |
Change in valuation allowance
|
| | | | 38,781 | | |
Income tax provision
|
| | | $ | — | | |
|
Statutory federal income tax rate
|
| | | | 21.0% | | |
|
State taxes, net of federal tax benefit
|
| | | | 0.0% | | |
|
Permanent Book/Tax Differences
|
| | | | (22.9)% | | |
|
Change in valuation allowance
|
| | | | 1.9% | | |
|
Income tax provision
|
| | | | —% | | |
| | |
December 31,
2020 |
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Money Market held in Trust Account
|
| | | $ | 281 | | | | | $ | 281 | | | | | $ | — | | | | | $ | — | | |
U.S. Treasury Securities held in Trust Account
|
| | | | 145,193,921 | | | | | | 145,193,921 | | | | | | — | | | | | | — | | |
| | | | $ | 145,194,202 | | | | | $ | 145,194,202 | | | | | $ | — | | | | | $ | — | | |
Description
|
| |
Level
|
| |
December 31,
2020 |
| ||||||
Liabilities: | | | | | | | | | | | | | |
Warrant Liability – Public Warrants
|
| | | | 1 | | | | | $ | 10,975,313 | | |
Warrant Liability – Private Placement Warrants
|
| | | | 3 | | | | | $ | 6,347,438 | | |
Total Warrant Liability
|
| | | | | | | | | $ | 17,322,751 | | |
Input
|
| |
December 2, 2020
(Initial Measurement) |
| |||
Risk-free interest rate
|
| | | | 0.56% | | |
Expected term (years)
|
| | | | 6.04 | | |
Expected volatility
|
| | | | 24.2% | | |
Stock price
|
| | | $ | 9.052 | | |
| | |
Private
Placement |
| |
Public
|
| |
Warrant
Liabilities |
| |||||||||
Fair value as of December 2, 2020
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on December 2, 2020
|
| | | | 8,360,188 | | | | | | 14,403,750 | | | | | | 22,763,938 | | |
Change in valuation inputs or other assumptions
|
| | | | (2,012,750) | | | | | | (3,428,437) | | | | | | (5,441,188) | | |
Fair value as of December 31, 2020
|
| | | $ | 6,347,438 | | | | | $ | 10,975,313 | | | | | $ | 17,322,751 | | |
| | |
September 30,
2021 (unaudited) |
| |
December 31,
2020 |
| ||||||
Assets
|
| | | ||||||||||
Current Assets: | | | | | | | | | | | | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 13,158 | | | | | $ | 8,927 | | |
Accounts receivable, net of allowances of $244 at September 30, 2021 and $145 at December 31, 2020
|
| | | | 9,329 | | | | | | 12,670 | | |
Due from related party (Note 12)
|
| | | | 162 | | | | | | 73 | | |
Content library
|
| | | | 24,935 | | | | | | 26,074 | | |
Income tax receivable
|
| | | | 10,222 | | | | | | 10,498 | | |
Prepaid expenses and other current assets
|
| | | | 9,446 | | | | | | 6,949 | | |
Total current assets
|
| | | | 67,252 | | | | | | 65,191 | | |
Property and equipment, net (Note 3)
|
| | | | 45,211 | | | | | | 63,089 | | |
Goodwill, net (Note 4)
|
| | | | 147,523 | | | | | | 147,523 | | |
Intangible assets, net (Note 4)
|
| | | | 142,063 | | | | | | 195,635 | | |
Other long-term assets
|
| | | | 723 | | | | | | 1,653 | | |
Total assets
|
| | | $ | 402,772 | | | | | $ | 473,091 | | |
Liabilities and Equity | | | | | | | | | | | | | |
Current Liabilities:
|
| | | | | | | | | | | | |
Trade payables
|
| | | $ | 31,161 | | | | | $ | 26,719 | | |
Due to related parties, net (Note 12)
|
| | | | 357 | | | | | | 449 | | |
Accrued and other current liabilities (Note 5)
|
| | | | 60,062 | | | | | | 75,954 | | |
Total current liabilities
|
| | | | 91,580 | | | | | | 103,122 | | |
Long-term debt, net (Note 6)
|
| | | | 361,890 | | | | | | 307,474 | | |
Other long-term liabilities
|
| | | | 13,944 | | | | | | 19,862 | | |
Deferred income taxes, net
|
| | | | 10,197 | | | | | | 41,171 | | |
Total liabilities
|
| | | | 477,611 | | | | | | 471,629 | | |
Commitments and Contingencies (Note 10) | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 60,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 31,274,065 and 27,962,554 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
|
| | | | 3 | | | | | | 3 | | |
Additional paid-in-capital
|
| | | | 239,722 | | | | | | 223,085 | | |
Accumulated deficit
|
| | | | (314,564) | | | | | | (221,626) | | |
Total equity
|
| | | | (74,839) | | | | | | 1,462 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 402,772 | | | | | $ | 473,091 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net revenue
|
| | | $ | 216,372 | | | | | $ | 465,208 | | |
Operating expenses: | | | | | | | | | | | | | |
Product cost
|
| | | | 83,602 | | | | | | 187,865 | | |
Direct operating
|
| | | | 98,155 | | | | | | 133,861 | | |
Marketing
|
| | | | 10,743 | | | | | | 16,090 | | |
General and administrative
|
| | | | 41,709 | | | | | | 46,840 | | |
Depreciation and amortization
|
| | | | 81,317 | | | | | | 108,316 | | |
Total operating expenses
|
| | | | 315,526 | | | | | | 492,972 | | |
Operating loss
|
| | | | (99,154) | | | | | | (27,764) | | |
Interest and other expense, net
|
| | | | (24,687) | | | | | | (24,848) | | |
Loss before income taxes
|
| | | | (123,841) | | | | | | (52,612) | | |
Income tax benefit
|
| | | | (30,903) | | | | | | (13,477) | | |
Net loss
|
| | | $ | (92,938) | | | | | $ | (39,135) | | |
Net loss per share attributable to common shareholders – basic and diluted
|
| | | $ | (3.01) | | | | | $ | (1.40) | | |
Weighted average shares used in computing net loss per share attributable to common shareholders – basic and diluted
|
| | | | 30,839,870 | | | | | | 27,870,539 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (92,938) | | | | | $ | (39,135) | | |
Adjustments to reconcile net income to net cash flows from operating activities: | | | | | | | | | | | | | |
Depreciation and other
|
| | | | 28,015 | | | | | | 54,809 | | |
Amortization of intangible assets
|
| | | | 53,572 | | | | | | 53,571 | | |
Gain on sale/disposal of assets
|
| | | | (271) | | | | | | (66) | | |
Deferred income taxes
|
| | | | (30,974) | | | | | | (23,895) | | |
Amortization of deferred financing costs
|
| | | | 962 | | | | | | 2,582 | | |
PIK interest added to Senior Facilities
|
| | | | 26,413 | | | | | | — | | |
Related party tax payable settlement
|
| | | | 15,777 | | | | | | — | | |
Non-cash rent, interest and other
|
| | | | 985 | | | | | | 83 | | |
Cash flows from changes in net operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 3,341 | | | | | | 10,262 | | |
Content library
|
| | | | 1,138 | | | | | | 38,656 | | |
Income tax receivable
|
| | | | 276 | | | | | | 9,752 | | |
Prepaid expenses and other current assets
|
| | | | (2,497) | | | | | | 1,476 | | |
Other assets
|
| | | | 930 | | | | | | 650 | | |
Trade payables
|
| | | | 4,437 | | | | | | (50,653) | | |
Change in due to/from related parties
|
| | | | (90) | | | | | | 284 | | |
Accrued and other liabilities
|
| | | | (19,857) | | | | | | (21,498) | | |
Net cash flows (used in) provided by operating activities
|
| | | | (10,781) | | | | | | 36,878 | | |
Investing Activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (10,039) | | | | | | (16,899) | | |
Proceeds from disposition of property and equipment
|
| | | | 392 | | | | | | 786 | | |
Net cash flows used in investing activities
|
| | | | (9,647) | | | | | | (16,113) | | |
Financing Activities: | | | | | | | | | | | | | |
Proceeds from Redbox’s borrowings
|
| | | | 30,896 | | | | | | 18,000 | | |
Repayments of Redbox’s debt obligations
|
| | | | (3,855) | | | | | | (37,188) | | |
Dividends paid
|
| | | | (90) | | | | | | (707) | | |
Principal payments on capital lease obligations
|
| | | | (2,292) | | | | | | (2,800) | | |
Net cash flows provided by (used in) financing activities
|
| | | | 24,659 | | | | | | (22,695) | | |
Change in cash, cash equivalents and restricted cash
|
| | | | 4,231 | | | | | | (1,930) | | |
Cash, cash equivalents and restricted cash: | | | | | | | | | | | | | |
Beginning of period
|
| | | | 8,927 | | | | | | 7,378 | | |
End of period
|
| | | $ | 13,158 | | | | | $ | 5,448 | | |
| | |
Common
Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Deficit) |
| |
Total
Equity |
| ||||||||||||
Balance at December 31, 2019
|
| | | $ | 3 | | | | | $ | 223,084 | | | | | $ | (152,176) | | | | | $ | 70,911 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | 53 | | | | | | 53 | | |
Share-based compensation plans and related activity .
|
| | | | — | | | | | | (22) | | | | | | — | | | | | | (22) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (39,135) | | | | | | (39,135) | | |
Balance at September 30, 2020
|
| | | $ | 3 | | | | | $ | 223,062 | | | | | $ | (191,258) | | | | | $ | 31,807 | | |
| | |
Common
Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Deficit) |
| |
Total
Equity |
| ||||||||||||
Balance at December 31, 2020
|
| | | $ | 3 | | | | | $ | 223,085 | | | | | $ | (221,626) | | | | | $ | 1,462 | | |
Related party tax payable settlement
|
| | | | — | | | | | | 15,777 | | | | | | — | | | | | | 15,777 | | |
Share-based compensation plans and related activity
|
| | | | — | | | | | | 860 | | | | | | — | | | | | | 860 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (92,938) | | | | | | (92,938) | | |
Balance at September 30, 2021
|
| | | $ | 3 | | | | | $ | 239,722 | | | | | $ | (314,564) | | | | | $ | (74,839) | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Wal-Mart Stores Inc.
|
| | | | 13.0% | | | | | | 14.2% | | |
Walgreen Co.
|
| | | | 12.2% | | | | | | 15.0% | | |
Dollars in thousands
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Kiosks and components
|
| | | $ | 190,202 | | | | | $ | 190,416 | | |
Computers, servers, and software
|
| | | | 96,352 | | | | | | 87,113 | | |
Leasehold improvements
|
| | | | 4,145 | | | | | | 3,991 | | |
Office furniture and equipment
|
| | | | 676 | | | | | | 676 | | |
Leased Vehicles
|
| | | | 10,436 | | | | | | 10,678 | | |
Property and equipment, at cost
|
| | | $ | 301,811 | | | | | $ | 292,874 | | |
Accumulated depreciation
|
| | | | (256,600) | | | | | | (229,785) | | |
Property and equipment, net
|
| | | $ | 45,211 | | | | | $ | 63,089 | | |
Dollars in thousands
|
| |
Legacy
Business |
| |
Digital
Business |
| |
Total
|
| |||||||||
Balance as of December 31, 2020
|
| | | $ | 144,014 | | | | | $ | 3,509 | | | | | $ | 147,523 | | |
Balance as of September 30, 2021
|
| | | $ | 144,014 | | | | | $ | 3,509 | | | | | $ | 147,523 | | |
| | |
September 30, 2021
|
| |
December 31, 2020
|
| |||||||||||||||||||||||||||||||||
Dollars in thousands
|
| |
Estimated
Useful Life |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||||||||
Intangible assets subject to amortization:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Contracts with retailers
|
| |
7 years
|
| | | $ | 370,000 | | | | | $ | (264,873) | | | | | $ | 105,127 | | | | | $ | 370,000 | | | | | $ | (225,230) | | | | | $ | 144,770 | | |
Trade name
|
| |
7 years
|
| | | | 60,000 | | | | | | (42,953) | | | | | | 17,047 | | | | | | 60,000 | | | | | | (36,524) | | | | | | 23,476 | | |
Contactable customer list
|
| |
7 years
|
| | | | 40,000 | | | | | | (28,635) | | | | | | 11,365 | | | | | | 40,000 | | | | | | (24,349) | | | | | | 15,651 | | |
Developed technology
|
| |
7 years
|
| | | | 30,000 | | | | | | (21,476) | | | | | | 8,524 | | | | | | 30,000 | | | | | | (18,262) | | | | | | 11,738 | | |
Total intangible assets subject to amortization
|
| | | | | | $ | 500,000 | | | | | $ | (357,937) | | | | | $ | 142,063 | | | | | $ | 500,000 | | | | | $ | (304,365) | | | | | $ | 195,635 | | |
Dollars in thousands
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Accrued payroll and other related expenses
|
| | | $ | 20,776 | | | | | $ | 24,212 | | |
Accrued revenue share
|
| | | | 12,669 | | | | | | 13,480 | | |
Deferred revenue
|
| | | | 11,203 | | | | | | 10,019 | | |
Income taxes payable
|
| | | | — | | | | | | 15,777 | | |
Other
|
| | | | 15,414 | | | | | | 12,466 | | |
Total accrued and other current liabilities
|
| | | $ | 60,062 | | | | | $ | 75,954 | | |
Dollars in thousands
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Term Loan Facility
|
| | | $ | 306,563 | | | | | $ | 281,563 | | |
Paid-In-Kind Interest related to Term Loan Facility
|
| | | | 24,186 | | | | | | — | | |
Revolving Credit Facility
|
| | | | 30,000 | | | | | | 30,000 | | |
Paid-In-Kind Interest related to Revolving Credit Facility
|
| | | | 2,227 | | | | | | — | | |
Union Revolving Credit Facility
|
| | | | 4,590 | | | | | | 2,550 | | |
Total debt outstanding
|
| | | $ | 367,566 | | | | | $ | 314,113 | | |
Less: Unamortized debt issuance costs
|
| | | | (5,676) | | | | | | (6,639) | | |
Total debt, net
|
| | | $ | 361,890 | | | | | $ | 307,474 | | |
Portion due within one year
|
| | | $ | — | | | | | $ | — | | |
Total long-term debt, net
|
| | | $ | 361,890 | | | | | $ | 307,474 | | |
Dollars in thousands
|
| |
Repayment
Amount |
| |||
Remaining 2021
|
| | | $ | — | | |
2022
|
| | | | — | | |
2023
|
| | | | 330,749 | | |
Total
|
| | | $ | 330,749 | | |
Dollars in thousands
|
| |
Balance Sheet
Location |
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | |
Interest rate swap contract
|
| |
Other liabilities
|
| | | $ | 461 | | | | | $ | 4,782 | | |
Dollars in thousands
|
| |
For the nine months
ended September 30, |
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Other (income) expense, net
|
| | | $ | (899) | | | | | $ | 4,324 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| ||||||
Net revenue | | | | | | | | | | | | | |
Legacy Business
|
| | | $ | 192,025 | | | | | $ | 433,215 | | |
Digital Business
|
| | | | 24,347 | | | | | | 31,993 | | |
Total
|
| | | $ | 216,372 | | | | | $ | 465,208 | | |
Adjusted EBITDA | | | | | | | | | | | | | |
Legacy Business
|
| | | $ | (8,940) | | | | | $ | 106,133 | | |
Digital Business
|
| | | | 2,257 | | | | | | 3,642 | | |
Total
|
| | | $ | (6,683) | | | | | $ | 109,775 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| ||||||
Loss before income taxes
|
| | | $ | (123,841) | | | | | $ | (52,612) | | |
Add: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 81,317 | | | | | | 108,316 | | |
Interest and other expense, net
|
| | | | 24,687 | | | | | | 24,848 | | |
Business optimization(a)
|
| | | | 5,605 | | | | | | 15,142 | | |
One-time non-recurring(b)
|
| | | | 2,737 | | | | | | 5,934 | | |
New business start-up costs(c)
|
| | | | 1,004 | | | | | | 4,821 | | |
Restructuring related(d)
|
| | | | 1,808 | | | | | | 3,326 | | |
Adjusted EBITDA
|
| | | $ | (6,683) | | | | | $ | 109,775 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
Dollars in thousands, except per share amounts
|
| |
2021
|
| |
2020
|
| ||||||
Basic and Diluted EPS | | | | | | | | | | | | | |
Net loss attributable to shareholders
|
| | | $ | (92,938) | | | | | $ | (39,135) | | |
Weighted average shares outstanding for basic and diluted loss per share
|
| | | | 30,839,870 | | | | | | 27,870,539 | | |
Basic and diluted loss per common share attributable to shareholders
|
| | | $ | (3.01) | | | | | $ | (1.40) | | |
Dollars in thousands
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Gross property and equipment
|
| | | $ | 10,436 | | | | | $ | 10,677 | | |
Accumulated depreciation
|
| | | | (6,981) | | | | | | (5,204) | | |
Net property and equipment
|
| | | $ | 3,455 | | | | | $ | 5,473 | | |
Dollars in thousands
|
| |
Total
|
| |
2021
|
| |
2022
|
| |||||||||
Minimum estimated movie content commitments
|
| | | $ | 28,714 | | | | | $ | 7,979 | | | | | $ | 20,735 | | |
Dollars in thousands
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Due from related party
|
| | | $ | 162 | | | | | $ | 73 | | |
Due to related parties, net
|
| | | $ | 357 | | | | | $ | 449 | | |
Dollars in thousands
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Cash and cash equivalents
|
| | | $ | 9,798 | | | | | $ | 5,401 | | |
Restricted cash
|
| | | | 3,360 | | | | | | 3,526 | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 13,158 | | | | | $ | 8,927 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| ||||||
Cash paid during the period for interest
|
| | | $ | — | | | | | $ | 20,853 | | |
Cash paid during the period for income taxes, net
|
| | | $ | 622 | | | | | $ | 2,726 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
Dollars in thousands
|
| |
2021
|
| |
2020
|
| ||||||
Purchases of property and equipment financed by capital lease obligations
|
| | | $ | 28 | | | | | $ | 130 | | |
Purchases of property and equipment included in ending trade payables or accrued and other current liabilities
|
| | | $ | 197 | | | | | $ | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 8,927 | | | | | $ | 7,378 | | |
Accounts receivable, net of allowances of $145 at December 31, 2020 and $346 at December 31, 2019
|
| | | | 12,670 | | | | | | 19,763 | | |
Due from related party (Note 13)
|
| | | | 73 | | | | | | 2,712 | | |
Content library
|
| | | | 26,074 | | | | | | 61,902 | | |
Income tax receivable
|
| | | | 10,498 | | | | | | 7,433 | | |
Prepaid expenses and other current assets
|
| | | | 6,949 | | | | | | 10,204 | | |
Total current assets
|
| | | | 65,191 | | | | | | 109,392 | | |
Property and equipment, net (Note 3)
|
| | | | 63,089 | | | | | | 109,883 | | |
Goodwill, net (Note 4)
|
| | | | 147,523 | | | | | | 147,523 | | |
Intangible assets, net (Note 4)
|
| | | | 195,635 | | | | | | 267,063 | | |
Other long-term assets
|
| | | | 1,653 | | | | | | 3,198 | | |
Total assets
|
| | | $ | 473,091 | | | | | $ | 637,059 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade payables
|
| | | $ | 26,719 | | | | | $ | 82,065 | | |
Due to related parties, net (Note 13)
|
| | | | 449 | | | | | | 1,477 | | |
Accrued and other current liabilities (Note 5)
|
| | | | 75,954 | | | | | | 85,889 | | |
Current portion of long-term debt and other current liabilities (Note 6)
|
| | | | — | | | | | | 63,750 | | |
Total current liabilities
|
| | | | 103,122 | | | | | | 233,181 | | |
Long-term debt, net (Note 6)
|
| | | | 307,474 | | | | | | 244,788 | | |
Other long-term liabilities
|
| | | | 19,862 | | | | | | 21,584 | | |
Deferred income taxes, net
|
| | | | 41,171 | | | | | | 66,595 | | |
Total liabilities
|
| | | | 471,629 | | | | | | 566,148 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 60,000,000 shares authorized as of December 31, 2020 and 2019; 27,962,554 and 27,853,047 shares issued and outstanding as of December 31, 2020 and 2019, respectively.
|
| | | | 3 | | | | | | 3 | | |
Additional paid-in-capital
|
| | | | 223,085 | | | | | | 223,084 | | |
Accumulated deficit
|
| | | | (221,626) | | | | | | (152,176) | | |
Total equity
|
| | | | 1,462 | | | | | | 70,911 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 473,091 | | | | | $ | 637,059 | | |
| | |
Year Ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net revenue
|
| | | $ | 546,191 | | | | | $ | 858,370 | | | | | $ | 1,087,783 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Product cost
|
| | | | 220,999 | | | | | | 359,880 | | | | | | 439,523 | | |
Direct operating
|
| | | | 167,090 | | | | | | 237,490 | | | | | | 274,155 | | |
Marketing
|
| | | | 21,214 | | | | | | 25,813 | | | | | | 33,020 | | |
General and administrative
|
| | | | 62,235 | | | | | | 67,158 | | | | | | 81,529 | | |
Depreciation and amortization
|
| | | | 136,838 | | | | | | 138,274 | | | | | | 133,493 | | |
Total operating expenses
|
| | | | 608,376 | | | | | | 828,615 | | | | | | 961,720 | | |
Operating (loss) income
|
| | | | (62,185) | | | | | | 29,755 | | | | | | 126,063 | | |
Other expense, net: | | | | | | | | | | | | | | | | | | | |
Other expense, net
|
| | | | (32,522) | | | | | | (44,578) | | | | | | (45,155) | | |
Total other expense, net
|
| | | | (32,522) | | | | | | (44,578) | | | | | | (45,155) | | |
(Loss) income before income taxes
|
| | | | (94,707) | | | | | | (14,823) | | | | | | 80,908 | | |
Income tax (benefit) expense
|
| | | | (25,204) | | | | | | (7,256) | | | | | | 19,455 | | |
Net (loss) income
|
| | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | |
Basic (loss) earnings per share: | | | | | | | | | | | | | | | | | | | |
(Loss) earnings per share attributable to common shareholders,
basic |
| | | $ | (2.49) | | | | | $ | (0.27) | | | | | $ | 2.22 | | |
Weighted average shares outstanding for basic (loss) earnings per share
|
| | | | 27,906,742 | | | | | | 27,779,339 | | | | | | 27,623,415 | | |
Diluted (loss) earnings per share: | | | | | | | | | | | | | | | | | | | |
(Loss) earnings per share attributable to common shareholders,
diluted |
| | | $ | (2.49) | | | | | $ | (0.27) | | | | | $ | 2.18 | | |
Weighted average shares outstanding for diluted (loss) earnings
per share |
| | | | 27,906,742 | | | | | | 27,779,339 | | | | | | 28,197,409 | | |
| | |
Year Ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Operating activities: | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | |
Adjustments to reconcile net income to net cash flows from operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | 65,537 | | | | | | 66,534 | | | | | | 58,153 | | |
Amortization of intangible assets
|
| | | | 71,428 | | | | | | 71,428 | | | | | | 71,428 | | |
(Gain) loss on sale/disposal of assets
|
| | | | (127) | | | | | | 311 | | | | | | 3,912 | | |
Deferred income taxes
|
| | | | (25,424) | | | | | | (23,118) | | | | | | (16,241) | | |
Amortization of deferred financing costs
|
| | | | 3,574 | | | | | | 5,371 | | | | | | 5,672 | | |
Non-cash rent, interest and other
|
| | | | 2,062 | | | | | | 286 | | | | | | 2,048 | | |
Cash flows from changes in net operating assets and liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 7,094 | | | | | | 12,534 | | | | | | (1,427) | | |
Content library
|
| | | | 35,829 | | | | | | 14,963 | | | | | | 13,591 | | |
Income tax receivable
|
| | | | (3,065) | | | | | | (2,063) | | | | | | 8,206 | | |
Prepaid expenses and other current assets
|
| | | | 3,255 | | | | | | 3,046 | | | | | | (79) | | |
Other assets
|
| | | | 795 | | | | | | (2,066) | | | | | | 514 | | |
Trade payables
|
| | | | (53,790) | | | | | | (18,507) | | | | | | (28,371) | | |
Change in due to/from related parties
|
| | | | 2,640 | | | | | | (2,189) | | | | | | 716 | | |
Accrued and other liabilities
|
| | | | (10,612) | | | | | | (16,166) | | | | | | 5,875 | | |
Net cash flows from operating activities
|
| | | | 29,693 | | | | | | 102,797 | | | | | | 185,450 | | |
Investing Activities: | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (21,053) | | | | | | (33,005) | | | | | | (42,870) | | |
Proceeds from disposition of property and equipment
|
| | | | 1,261 | | | | | | 1,990 | | | | | | 1,107 | | |
Other investments
|
| | | | 750 | | | | | | (750) | | | | | | — | | |
Net cash flows used in investing activities
|
| | | | (19,042) | | | | | | (31,765) | | | | | | (41,763) | | |
Financing Activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from Redbox’s borrowings
|
| | | | 32,550 | | | | | | 7,500 | | | | | | 99,281 | | |
Repayments of Redbox’s debt obligations
|
| | | | (37,188) | | | | | | (76,563) | | | | | | (117,875) | | |
Dividends paid
|
| | | | (978) | | | | | | (1,182) | | | | | | (115,759) | | |
Financing costs
|
| | | | — | | | | | | — | | | | | | (3,676) | | |
Principal payments on capital lease obligations
|
| | | | (3,486) | | | | | | (3,855) | | | | | | (4,395) | | |
Net cash flows used in financing activities
|
| | | | (9,102) | | | | | | (74,100) | | | | | | (142,424) | | |
Change in cash, cash equivalents and restricted cash
|
| | | | 1,549 | | | | | | (3,068) | | | | | | 1,263 | | |
Cash, cash equivalents and restricted cash: | | | | | | | | | | | | | | | | | | | |
Beginning of period
|
| | | | 7,378 | | | | | | 10,446 | | | | | | 9,183 | | |
End of period
|
| | | $ | 8,927 | | | | | $ | 7,378 | | | | | $ | 10,446 | | |
| | |
Common
Stock |
| |
Additional
Paid-in Capital |
| |
Retained
Earnings (Deficit) |
| |
Total
Equity |
| ||||||||||||
Balance at December 31, 2017
|
| | | $ | 3 | | | | | $ | 222,831 | | | | | $ | (88,407) | | | | | $ | 134,427 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | (117,358) | | | | | | (117,358) | | |
Share-based compensation plans and related activity
|
| | | | — | | | | | | 97 | | | | | | — | | | | | | 97 | | |
Net income
|
| | | | — | | | | | | — | | | | | | 61,453 | | | | | | 61,453 | | |
Balance at December 31, 2018
|
| | | $ | 3 | | | | | $ | 222,928 | | | | | $ | (144,312) | | | | | $ | 78,619 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | (297) | | | | | | (297) | | |
Share-based compensation plans and related activity
|
| | | | — | | | | | | 156 | | | | | | — | | | | | | 156 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (7,567) | | | | | | (7,567) | | |
Balance at December 31, 2019
|
| | | $ | 3 | | | | | $ | 223,084 | | | | | $ | (152,176) | | | | | $ | 70,911 | | |
Dividends
|
| | | | — | | | | | | — | | | | | | 53 | | | | | | 53 | | |
Share-based compensation plans and related activity
|
| | | | — | | | | | | 1 | | | | | | — | | | | | | 1 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (69,503) | | | | | | (69,503) | | |
Balance at December 31, 2020
|
| | | $ | 3 | | | | | $ | 223,085 | | | | | $ | (221,626) | | | | | $ | 1,462 | | |
| | |
Year Ended
December 31, |
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Walgreen Co.
|
| | | | 14.6% | | | | | | 14.7% | | | | | | 15.5% | | |
Wal-Mart Stores Inc.
|
| | | | 13.8% | | | | | | 18.3% | | | | | | 18.2% | | |
| | |
Useful Life
|
|
Redbox kiosks and components
|
| |
3 – 5 years
|
|
Computers and software
|
| |
2 – 3 years
|
|
Leasehold improvements (shorter of life of asset or remaining lease term)
|
| |
3 – 6 years
|
|
Office furniture and equipment
|
| |
5 – 7 years
|
|
Vehicles
|
| |
3 – 4 years
|
|
Dollars in thousands
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Kiosks and components
|
| | | $ | 190,416 | | | | | $ | 186,158 | | |
Computers, servers, and software
|
| | | | 87,113 | | | | | | 73,730 | | |
Leasehold improvements
|
| | | | 3,991 | | | | | | 4,978 | | |
Office furniture and equipment
|
| | | | 676 | | | | | | 876 | | |
Leased Vehicles
|
| | | | 10,678 | | | | | | 11,813 | | |
Property and equipment, at cost
|
| | | $ | 292,874 | | | | | $ | 277,555 | | |
Accumulated depreciation
|
| | | | (229,785) | | | | | | (167,672) | | |
Property and equipment, net
|
| | | $ | 63,089 | | | | | $ | 109,883 | | |
Dollars in thousands
|
| |
Legacy
Business |
| |
Digital
Business |
| |
Total
|
| |||||||||
Balance as of December 31, 2018
|
| | | $ | 144,014 | | | | | $ | 3,509 | | | | | $ | 147,523 | | |
Balance as of December 31, 2019
|
| | | $ | 144,014 | | | | | $ | 3,509 | | | | | $ | 147,523 | | |
Balance as of December 31, 2020
|
| | | $ | 144,014 | | | | | $ | 3,509 | | | | | $ | 147,523 | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| |||||||||||||||||||||||||||||||||
Dollars in thousands
|
| |
Estimated
Useful Life |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||||||||
Intangible assets subject to amortization:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Contracts with retailers
|
| |
7 years
|
| | | $ | 370,000 | | | | | $ | (225,230) | | | | | $ | 144,770 | | | | | $ | 370,000 | | | | | $ | (172,373) | | | | | $ | 197,627 | | |
Trade name
|
| |
7 years
|
| | | | 60,000 | | | | | | (36,524) | | | | | | 23,476 | | | | | | 60,000 | | | | | | (27,952) | | | | | | 32,048 | | |
Contactable customer list
|
| |
7 years
|
| | | | 40,000 | | | | | | (24,349) | | | | | | 15,651 | | | | | | 40,000 | | | | | | (18,635) | | | | | | 21,365 | | |
Developed technology
|
| |
7 years
|
| | | | 30,000 | | | | | | (18,262) | | | | | | 11,738 | | | | | | 30,000 | | | | | | (13,977) | | | | | | 16,023 | | |
Total intangible assets subject to amortization
|
| | | | | | $ | 500,000 | | | | | $ | (304,365) | | | | | $ | 195,635 | | | | | $ | 500,000 | | | | | $ | (232,937) | | | | | $ | 267,063 | | |
Dollars in thousands
|
| |
Amortization of
intangible assets |
| |||
2021
|
| | | $ | 71,428 | | |
2022
|
| | | | 71,428 | | |
2023
|
| | | | 52,779 | | |
2024
|
| | | | — | | |
2025
|
| | | | — | | |
Total expected amortization
|
| | | $ | 195,635 | | |
Dollars in thousands
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Accrued payroll and other related expenses
|
| | | $ | 24,212 | | | | | $ | 22,860 | | |
Accrued revenue share
|
| | | | 13,480 | | | | | | 20,976 | | |
Deferred revenue
|
| | | | 10,019 | | | | | | 11,570 | | |
Income taxes payable
|
| | | | 15,777 | | | | | | 15,777 | | |
Other
|
| | | | 12,466 | | | | | | 14,706 | | |
Total accrued and other current liabilities
|
| | | $ | 75,954 | | | | | $ | 85,889 | | |
Dollars in thousands
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Term B Facility
|
| | | $ | 281,563 | | | | | $ | 318,750 | | |
Revolving Credit Facility
|
| | | | 30,000 | | | | | | — | | |
Union Revolving Credit Facility
|
| | | | 2,550 | | | | | | — | | |
Total debt outstanding
|
| | | $ | 314,113 | | | | | $ | 318,750 | | |
Less: Unamortized debt issuance costs
|
| | | | (6,639) | | | | | | (10,212) | | |
Total debt, net
|
| | | $ | 307,474 | | | | | $ | 308,538 | | |
Portion due within one year
|
| | | $ | — | | | | | $ | 63,750 | | |
Total long-term debt, net
|
| | | $ | 307,474 | | | | | $ | 244,788 | | |
Dollars in thousands
|
| |
Repayment
Amount |
| |||
2021
|
| | | $ | — | | |
2022
|
| | | | — | | |
2023
|
| | | | 281,563 | | |
Total
|
| | | $ | 281,563 | | |
Dollars in thousands
|
| |
Balance Sheet
Location |
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | |
Interest rate swap contract
|
| |
Other
liabilities |
| | | $ | 4,782 | | | | | $ | 5,253 | | |
| | |
For the years ended
December 31, |
| |||||||||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Other expense, net
|
| | | $ | 4,341 | | | | | $ | 3,946 | | | | | $ | 3,012 | | |
| | |
For the years ended December 31,
|
| |||||||||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net revenue | | | | | | | | | | | | | | | | | | | |
Legacy Business
|
| | | $ | 506,437 | | | | | $ | 838,627 | | | | | $ | 1,077,731 | | |
Digital Business
|
| | | | 39,754 | | | | | | 19,743 | | | | | | 10,052 | | |
Total
|
| | | $ | 546,191 | | | | | $ | 858,370 | | | | | $ | 1,087,783 | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | |
Legacy Business
|
| | | $ | 109,074 | | | | | $ | 197,887 | | | | | $ | 289,765 | | |
Digital Business
|
| | | | 4,702 | | | | | | (2,238) | | | | | | 2,281 | | |
Total
|
| | | $ | 113,776 | | | | | $ | 195,649 | | | | | $ | 292,046 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
(Loss) income before income taxes
|
| | | $ | (94,707) | | | | | $ | (14,823) | | | | | $ | 80,908 | | |
Add: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 136,838 | | | | | | 138,274 | | | | | | 133,493 | | |
Interest and other expense, net
|
| | | | 32,522 | | | | | | 44,578 | | | | | | 45,155 | | |
Business optimization(a)
|
| | | | 19,011 | | | | | | 7,687 | | | | | | 1,227 | | |
One-time non-recurring(b)
|
| | | | 10,600 | | | | | | 5,482 | | | | | | 13,229 | | |
New business start-up costs(c)
|
| | | | 6,041 | | | | | | 3,793 | | | | | | 10,060 | | |
Restructuring related(d)
|
| | | | 3,471 | | | | | | 4,432 | | | | | | 625 | | |
Discontinuation of games business(e)
|
| | | | — | | | | | | 6,226 | | | | | | 7,349 | | |
Adjusted EBITDA
|
| | | $ | 113,776 | | | | | $ | 195,649 | | | | | $ | 292,046 | | |
| | |
Year ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Basic EPS | | | | | | | | | | | | | | | | | | | |
Net (loss) income attributable to shareholders
|
| | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | |
Weighted average shares outstanding for basic earnings (loss) per share
|
| | | | 27,906,742 | | | | | | 27,779,339 | | | | | | 27,623,415 | | |
Basic earnings (loss) per common shares attributable to shareholders
|
| | | $ | (2.49) | | | | | $ | (0.27) | | | | | $ | 2.22 | | |
Diluted EPS | | | | | | | | | | | | | | | | | | | |
Net (loss) income attributable to shareholders
|
| | | $ | (69,503) | | | | | $ | (7,567) | | | | | $ | 61,453 | | |
Weighted average shares outstanding for basic earnings (loss) per share:
|
| | | | 27,906,742 | | | | | | 27,779,339 | | | | | | 27,623,415 | | |
Dilutive effect of restricted stock units
|
| | | | — | | | | | | — | | | | | | 573,993 | | |
Weighted average shares outstanding for diluted earnings (loss) per share
|
| | | | 27,906,742 | | | | | | 27,779,339 | | | | | | 28,197,409 | | |
Diluted earnings (loss) per common share attributable
to shareholders |
| | | $ | (2.49) | | | | | $ | (0.27) | | | | | $ | 2.18 | | |
Dollars in thousands
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Gross property and equipment
|
| | | $ | 10,677 | | | | | $ | 11,813 | | |
Accumulated depreciation
|
| | | | (5,204) | | | | | | (3,529) | | |
Net property and equipment
|
| | | $ | 5,473 | | | | | $ | 8,284 | | |
Dollars in thousands
|
| |
Capital
Leases |
| |
Operating
Leases(1) |
| ||||||
2021
|
| | | $ | 2,836 | | | | | $ | 2,591 | | |
2022
|
| | | | 1,895 | | | | | | 1,994 | | |
2023
|
| | | | 470 | | | | | | 1,614 | | |
2024
|
| | | | 27 | | | | | | 923 | | |
2025 & Thereafter
|
| | | | — | | | | | | 546 | | |
Total minimum lease commitments
|
| | | $ | 5,228 | | | | | $ | 7,668 | | |
Less: Current portion of capital lease obligations
|
| | | | (2,836) | | | | | | | | |
Long-term portion of capital lease obligations
|
| | | $ | 2,392 | | | | | | | | |
Dollars in thousands
|
| |
Total
|
| |
2021
|
| |
2022
|
| |||||||||
Minimum estimated movie content commitments
|
| | | $ | 59,788 | | | | | $ | 38,319 | | | | | $ | 21,469 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
U.S. operations
|
| | | $ | (94,707) | | | | | $ | (14,823) | | | | | $ | 80,908 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
U.S. Federal
|
| | | $ | (491) | | | | | $ | 11,653 | | | | | $ | 27,741 | | |
State and local
|
| | | | 711 | | | | | | 4,209 | | | | | | 7,955 | | |
Total current
|
| | | $ | 220 | | | | | $ | 15,862 | | | | | $ | 35,696 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
U.S. Federal
|
| | | | (21,489) | | | | | | (19,467) | | | | | | (14,496) | | |
State and local
|
| | | | (3,935) | | | | | | (3,651) | | | | | | (1,745) | | |
Total deferred
|
| | | $ | (25,424) | | | | | $ | (23,118) | | | | | $ | (16,241) | | |
Total income tax (benefit) expense
|
| | | $ | (25,204) | | | | | $ | (7,256) | | | | | $ | 19,455 | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
U.S Federal tax expense at statutory rates
|
| | | | 21.0% | | | | | | 21.0% | | | | | | 21.0% | | |
State income taxes, net of federal benefit
|
| | | | 3.8% | | | | | | 8.7% | | | | | | 4.6% | | |
Valuation allowance
|
| | | | (0.2)% | | | | | | (6.8)% | | | | | | 0.1% | | |
Federal research & development credit
|
| | | | 2.0% | | | | | | 7.4% | | | | | | (0.7)% | | |
Uncertain tax benefit on federal research and development credit
|
| | | | (0.5)% | | | | | | (3.7)% | | | | | | 0.6% | | |
Release of uncertain tax benefits
|
| | | | 0.2% | | | | | | 22.1% | | | | | | (2.2)% | | |
Other
|
| | | | 0.4% | | | | | | 0.2% | | | | | | 0.7% | | |
Effective tax rate
|
| | | | 26.6% | | | | | | 48.9% | | | | | | 24.0% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Balance, beginning of the period
|
| | | $ | 1,935 | | | | | $ | 4,558 | | | | | $ | 5,894 | | |
Additions based on tax positions related to the current year
|
| | | | 250 | | | | | | 150 | | | | | | 150 | | |
Additions for tax positions related to prior years
|
| | | | 215 | | | | | | 509 | | | | | | 321 | | |
Deductions for tax positions related to prior years
|
| | | | (187) | | | | | | (1,945) | | | | | | (1,807) | | |
Deductions for tax positions effectively settled
|
| | | | — | | | | | | (1,337) | | | | | | — | | |
Balance, end of period
|
| | | $ | 2,213 | | | | | $ | 1,935 | | | | | $ | 4,558 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Credit carryforwards
|
| | | $ | 1,117 | | | | | $ | 1,124 | | |
Accrued liabilities and allowances
|
| | | | 1,388 | | | | | | 614 | | |
Compensation accruals
|
| | | | 2,750 | | | | | | 2,966 | | |
Asset retirement obligation liability
|
| | | | 1,994 | | | | | | 2,257 | | |
Deferred revenue
|
| | | | 2,237 | | | | | | 2,682 | | |
Hedge liability
|
| | | | 1,200 | | | | | | 1,315 | | |
Other
|
| | | | 253 | | | | | | 46 | | |
Gross deferred tax assets
|
| | | | 10,939 | | | | | | 11,004 | | |
Less: Valuation Allowance
|
| | | | (1,039) | | | | | | (851) | | |
Total deferred tax assets
|
| | | $ | 9,900 | | | | | $ | 10,153 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Property and equipment
|
| | | | (14,172) | | | | | | (23,250) | | |
Product costs
|
| | | | (3,905) | | | | | | (7,107) | | |
Prepaid expenses
|
| | | | (284) | | | | | | (241) | | |
Intangible assets
|
| | | | (30,965) | | | | | | (44,819) | | |
Goodwill
|
| | | | (1,745) | | | | | | (1,331) | | |
Total deferred tax liabilities
|
| | | $ | (51,071) | | | | | $ | (76,748) | | |
Net deferred tax liabilities
|
| | | $ | (41,171) | | | | | $ | (66,595) | | |
| | |
December 31, 2020
|
| |||||||||
Dollars in thousands
|
| |
Amount
|
| |
Expiration
|
| ||||||
State tax credits: | | | | | | | | | | | | | |
Illinois state tax credits
|
| | | $ | 1,117 | | | | | | 2021 – 2025 | | |
Total U.S. state tax credits
|
| | | $ | 1,117 | | | | | | | | |
Dollars in thousands
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Due from related party
|
| | | $ | 73 | | | | | $ | 2,712 | | |
Due to related parties, net
|
| | | $ | 449 | | | | | $ | 1,477 | | |
| | |
Year Ended
December 31, |
| |||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| ||||||
Cash and cash equivalents
|
| | | $ | 5,401 | | | | | $ | 3,852 | | |
Restricted cash
|
| | | | 3,526 | | | | | | 3,526 | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 8,927 | | | | | $ | 7,378 | | |
| | |
Year Ended
December 31, |
| |||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| ||||||
Cash paid during the period for interest
|
| | | $ | 29,061 | | | | | $ | 36,659 | | |
Cash paid during the period for income taxes, net
|
| | | $ | 2,993 | | | | | $ | 20,907 | | |
| | |
Year Ended
December 31, |
| |||||||||
Dollars in thousands
|
| |
2020
|
| |
2019
|
| ||||||
Purchases of property and equipment financed by capital lease obligations
|
| | | $ | 338 | | | | | $ | 6,051 | | |
Purchases of property and equipment included in ending trade payables or accrued and other current liabilities
|
| | | $ | 653 | | | | | $ | 224 | | |