Remark Holdings

Newsroom

Remark Media Reports Second Quarter 2016 Results

August 11, 2016 at 4:05 PM EDT

LAS VEGAS, Aug. 11, 2016 /PRNewswire/ -- Remark Media (NASDAQ: MARK), a global digital media technology company, reported its financial results for the second quarter of 2016.

"Our strong second quarter 2016 results reflect growth in our travel vertical as a result of our acquisition of Vegas.com in September 2015," stated Kai-Shing Tao, Remark Media's Chairman and CEO. "This quarter, we furthered our progress expanding Vegas.com from primarily a traveling and ticketing hub into a unique and dynamic media platform. Through numerous technology and feature upgrades, we have underscored our appeal to our target demographic, the Millennials. With KanKan, we are taking our data intelligence to the next level and with the support of our partner Alibaba, we are building a user behavior analysis platform with great appeal and value to advertisers and retailers around the world. We continue to work toward the closing of our acquisition of China Branding Group, which would contribute significant sales capabilities, advertising relationships, a large and diverse portfolio of content, and a community of over 100 million social media followers from which we would seek to accelerate our growth.

"With these assets, as well as our verticals in finance and lifestyle, we are building a formidable set of synergistic assets for our digital media technology platform that appeal to Millennials, generate advertising revenue and capture insightful data that makes us an invaluable partner to our customers."

Financial Results for the Three Months Ended June 30th:  2016 Compared to 2015
The financial results for the second quarter of 2016 reflect the operating results of Vegas.com, which was acquired in September 2015.

  • Net revenue was $15.0 million, compared to $0.8 million.
  • Gross margin was $12.4 million, compared to $0.7 million.
  • Operating expenses were $15.9 million, compared to $3.8 million.
  • Operating loss was $3.5 million, compared to $3.1 million.
  • Net loss was $5.4 million, or $0.27 per diluted share, compared to $3.2 million, or $0.23 per diluted share.
  • At June 30, 2016, the cash and cash equivalents balance was $8.0 million, and total restricted cash was $11.7 million, bringing the total combined cash position to $19.7 million.

Financial Results for the Six Months Ended June 30th:  2016 Compared to 2015
The financial results for the 2016 six-month period reflect the operating results of Vegas.com, which was acquired in September 2015.

  • Net revenue was $29.2 million, compared to $1.6 million.
  • Gross margin was $24.3 million, compared to $1.5 million.
  • Operating expenses were $32.9 million, compared to $7.6 million.
  • Operating loss was $8.7 million, compared to $6.0 million.
  • Net loss was $7.8 million, or $0.39 per diluted share, compared to $6.2 million, or $0.47 per diluted share.

Conference Call Information
Remark Media's management team will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its second quarter 2016 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-877-329-7568 and for international calls dial 1-719-325-2228 approximately 10 minutes prior to the start of the conference. The conference ID is 4087761. The conference call will also be broadcast live over the Internet and available for replay for one year at www.remarkmedia.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 1-877-870-5176 and internationally, 1-858-384-5517. Enter access code 4087761.

Remark Media, Inc.

About Remark Media, Inc.
Remark Media, Inc. (NASDAQ: MARK) owns, operates and acquires innovative digital media properties across multiple verticals that deliver culturally relevant, dynamic content that attracts and engages users on a global scale.  The company leverages its unique digital media assets to target the Millennial demographic, which provides it with access to fast-growing, lucrative markets.  The company is headquartered in Las Vegas, Nevada, with additional operations in Beijing, Chengdu and Hangzhou, China. For more information, please visit the Company's website at www.remarkmedia.com.

Forward-Looking Statements
This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Media's Annual Report on Form 10-K and Remark Media's other filings with the SEC. Any forward-looking statements reflect Remark Media's current views with respect to future events, are based on assumptions and are subject to risks and uncertainties.  Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Media's estimates and assumptions only as of the date hereof.  Except as required by law, Remark Media undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.

Investor Contact:
Douglas Osrow
Remark Media, Inc.
dosrow@remarkmedia.com
702-701-9514 ext. 3025

Investor Relations Contact:
Becky Herrick/ Kirsten Chapman
LHA Investor Relations
remarkmedia@lhai.com
415-433-3777

[Tables to follow]

 

 

 

REMARK MEDIA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2016



June 30,
2016


December 31,
2015


(Unaudited)



Assets




Current assets




Cash and cash equivalents

$

8,038



$

5,422


Restricted cash

9,406



9,416


Trade accounts receivable, net

930



746


Prepaid expense and other current assets

2,899



2,637


Notes receivable, current

181



172


Total current assets

21,454



18,393


Restricted cash

2,250



2,250


Notes receivable

190



371


Property and equipment, net

16,525



17,338


Investment in unconsolidated affiliate

1,030



1,030


Intangibles, net

32,273



34,867


Goodwill

20,337



20,337


Other long-term assets

1,393




Total assets

$

95,452



$

94,586






Liabilities and Stockholders' Equity




Accounts payable

$

12,298



$

14,422


Accrued expense and other current liabilities

16,260



11,827


Deferred merchant booking

10,901



6,997


Deferred revenue

4,608



3,262


Current maturities of long-term debt

100



100


Capital lease obligations

188



205


Total current liabilities

44,355



36,813


Long-term debt, less current portion and net of unamortized discount and debt issuance cost

24,466



23,616


Warrant liability

15,857



19,195


Other liabilities

1,825



2,904


Total liabilities

86,503



82,528






Commitments and contingencies








Stockholders' equity




Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued




Common stock, $0.001 par value; 100,000,000 shares and 50,000,000 shares authorized; 20,214,590 and 19,659,362 shares issued and outstanding; each at June 30, 2016 and December 31, 2015, respectively

20



20


Additional paid-in-capital

178,175



173,477


Accumulated other comprehensive loss

(5)



(5)


Accumulated deficit

(169,241)



(161,434)


Total stockholders' equity

8,949



12,058


Total liabilities and stockholders' equity

$

95,452



$

94,586


 

 

 

REMARK MEDIA, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

Period Ended June 30, 2016



Three Months Ended June 30,


Six Months Ended June 30,


2016


2015


2016


2015

Revenue, net

14,975



821



29,229



1,624


Cost of revenue (excluding depreciation and amortization reported below)

(2,624)



(82)



(4,973)



(120)


Gross margin

12,351



739



24,256



1,504










Operating expense








Sales and marketing

4,934



178



10,462



376


Technology and development

434



68



838



172


General and administrative

7,910



3,342



16,330



6,505


Depreciation and amortization

2,479



223



4,876



450


Other operating expense

97



22



429



47


Total operating expense

15,854



3,833



32,935



7,550










Operating loss

(3,503)



(3,094)



(8,679)



(6,046)










Other income (expense)








Interest expense

(1,215)



(211)



(2,425)



(405)


Other income, net

1





30



1


Change in fair value of warrant liability

(647)



155



3,338



221


Other loss

(68)





(71)




Total other income (expense), net

(1,929)



(56)



872



(183)










Loss before income taxes

(5,432)



(3,150)



(7,807)



(6,229)


Provision for income taxes








Net loss

(5,432)



(3,150)



(7,807)



(6,229)


Other comprehensive income (loss)








Cumulative foreign currency translation adjustments



(25)





(25)


Total comprehensive loss

(5,432)



(3,175)



(7,807)



(6,254)










Net loss per share








Net loss per share, basic and diluted

(0.27)



(0.23)



(0.39)



(0.47)


Basic and diluted weighted-average shares outstanding

20,069



13,903



19,903



13,395


 

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SOURCE Remark Media, Inc.

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