TV Everywhere
Multi-device content delivery
•Partnered with the Gospel Music Channel to deliver an authenticated digital service, using the NeuLion TVE Platform, for select GMC TV affiliates. The new service will include free VOD streaming of approximately 300 movie titles available anytime, anywhere. •Signed agreement with Bell Canada to launch authenticated streaming service that will give Bell Canada subscribers access to live sports and entertainment content on digital devices. •European cable operator ZON TV, the leading cable TV provider in Portugal, expanded its use of the NeuLion TVE Platform to enhance the reach and penetration of ZON television content to include Android smartphones and tablets.
Financial Results for the Three Months Ended March 31, 2013:
Revenue was $11.9 million, as compared to $10.4 million for the three months ended March 31, 2012, an increase of $1.5 million, or 14%.
Cost of revenue, exclusive of depreciation and amortization, was $3.4 million (29% of revenue), as compared to $4.5 million (44% of revenue) for the three months ended March 31, 2012, marking a period-over-period improvement of $1.1 million, or 24% (15% of revenue).
Operating loss was $(0.2) million, as compared to $(3.4) million for the three months ended March 31, 2012, an improvement of $3.2 million.
Consolidated net loss was $0.3 million, which includes $1.3 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $1.0 million, as compared to a consolidated net loss of $3.5 million, which includes $1.6 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $(1.9) million for the three months ended March 31, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $2.9 million.
As of March 31, 2013, we had $15.2 million in cash and cash equivalents.
Use of Non-GAAP Measures
We report Non-GAAP Adjusted EBITDA because it is a key measure used by management to evaluate our results and make strategic decisions about our Company, including potential acquisitions. Non-GAAP Adjusted EBITDA represents consolidated net loss before interest, income taxes, depreciation and amortization, stock-based compensation, discount on convertible note and foreign exchange gain/loss. This measure does not have any standardized meaning prescribed by U.S. generally accepted accounting principles (U.S. GAAP) and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.
The below table reconciles our Non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure, consolidated net loss:
Consolidated Statement of Operations Reconciliation: Three months ended, March 31, 2013 2012 $ $ ------------ ------------Consolidated net loss on a GAAP basis (282,866) (3,544,363)Depreciation and amortization 1,025,142 1,238,600Stock-based compensation 121,626 233,424Discount on convertible note 77,922 0Income taxes 17,444 127,000Interest and foreign exchange 18,114 11,635 ------------ ------------Non-GAAP Adjusted EBITDA 977,382 (1,933,704) ============ ============
