IRVINE, Calif., March 26, 2015 /PRNewswire/ -- Content syndication and monetization company, Adaptive Medias, Inc. (OTCQB: ADTM), a leader in programmatic advertising across mobile, video and online display, today announced its fourth quarter and fiscal year 2014 results.
The Company completed the year with a 38% sequential increase in fourth quarter revenues to a record $1.85 million, representing its eighth consecutive sequential increase in revenues. Revenues for the full year totaled a record $5.08 million, up nearly four-fold from $1.03 million in 2013. As the Company moved from development to commercialization, its expenses have moderated as anticipated. In the fourth quarter, EBITDA (excluding impairment costs) equaled ($2.9 million) compared with ($3.1 million) in the third quarter of 2014 and ($7.5 million) in the year-earlier period.
"2014 and the fourth quarter in particular was a pivotal time for Adaptive Medias. We stabilized and positioned the Company for long-term growth while completing a significant new technology launch and growing our top line and client base," said Jim Waltz, Acting Chief Operating Officer. "2015 is about consistent execution. Adaptive Medias is solidly positioned with its unique end-to-end software solution within one of the fastest growing sectors in online media technology. Our new platform is already contributing to our top line. Over the next several months, as we continue to demonstrate the technology's efficacy, simplicity and flexibility, we believe publishers, content producers and advertisers will look to Adaptive Medias for their mobile and online content syndication and monetization needs."
"As part of the recent changes at the Company, we have recently reduced our monthly expenses and will continue to seek ways to spend responsibly without sacrificing opportunities for growth. With a debt-free balance sheet, we believe we have the financial flexibility to embark on a new era of growth and expansion for Adaptive Medias in 2015 and beyond," concluded Mr. Waltz.
Company Achieves Record Fourth Quarter Revenues
Fourth quarter revenues totaled $1.85 million, an increase of 1442% from $0.12 million in the fourth quarter of 2013 and a sequential increase of 34% from $1.38 million posted in the third quarter of 2014. The year-over-year increase reflects revenues from the July 2014 acquisition of Media Graph in addition to early results following the launch of the Company's technology platform.
Gross profit for the fourth quarter amounted to $0.17 million, or 9.1% of revenues as compared to $0.029 million, or 24.2% of revenues in the fourth quarter of 2013. The decrease in gross profit margin in 2014 versus 2013 reflects the proportion of lower-margined advertising revenue as a result of the Media Graph acquisition compared with higher margined fee business expected from its recently launched technology platform.
Operating expenses for the fourth quarter of 2014 increased to $12.3 million from $7.8 million a year earlier, an increase of 55%. Operating expenses in the quarter included an $8.6 million write-off of certain intangibles associated with the Media Graph acquisition. Net of this write-down, operating expenses for the quarter totaled $3.7 million, a 58% drop from the fourth quarter of 2013.
Net of the write-down, operating expenses in the quarter reflected the end of development-stage spending and normalized expense levels associated with running the business. In the fourth quarter of 2014, general and administrative expenses fell to $1.3 million from $2.0 million in the year-earlier period as the Company adjusted its workforce following its technology platform launch.
Fiscal Year 2014 Financial Results
For the year ended December 31, 2014, revenue was a record $5.08 million compared to $1.03 million for the year ended December 31, 2013, an increase of 393%. This increase was due to the successful growth of the Company's advertising business in addition to the acquisition of Media Graph.
Gross profit for the year amounted to $1.13 million, or 22% of revenues as compared to $0.29 million, or 28% of revenues in 2013.
The decrease in gross profit margin in 2014 versus 2013 reflects the proportion of lower-margined advertising revenue as a result of the Media Graph acquisition compared with higher margined fee business expected from its recently launched technology platform.
Operating expenses for the year ended December 31, 2014 increased to $19.94 million from $8.28 million a year earlier, an increase of 141%. The overall increase in operating expense stemmed from costs associated with moving the company from the development to launch stage in addition to an $8.6 million impairment of intangibles. In 2014, general and administrative expenses increased to $4.04 million from $2.20 million for the year ended December 31, 2013, an 85% increase, primarily due to an increase in the number of employees and consultants required to launch and operate Adaptive Medias' new technology platform.
During 2014, the Company determined that the intangible assets and goodwill associated with the Adaptive Medias and Media Graph transactions were partially impaired and that the recorded book value of these assets was overstated compared with fair market value. Therefore, in accordance with accounting principles, the Company recorded an $8.6 million write-off.
For the year, EBITDA totaled ($17.3 million). Excluding asset impairment costs, EBITDA totaled ($8.6 million) for 2014 compared with ($7.4 million) in 2013.
As of December 31, 2014, Adaptive Medias had $2.26 million in cash on its balance sheet and $1.76 million in accounts receivable.
Conference Call Details
Adaptive Medias will host a conference call to discuss these results today, March 26, 2015, at 1:00 pm ET. The conference call dial-in number is 866-686-9686. The conference ID number for the call is 8015187. Participants may access the live webcast via the following link: Adaptive Medias 4Q14 Conference Call.
ABOUT ADAPTIVE MEDIAS, INC.
Adaptive Medias is a programmatic audience and content monetization provider for website owners, app developers and video publishers who want to more effectively optimize content through advertising. The Company provides a foundation for publishers and developers looking to engage brand advertisers through a multi-channel approach that delivers integrated, engaging and impactful ads across multiple devices. Adaptive Medias meets the needs of its publishers with an emphasis on maintaining user experience, while delivering timely and relevant ads through its multi-channel ad delivery and content platform. For more information, please visit www.adaptivem.com. Also, follow them on Twitter @adaptive_m.
This Press Release may contain certain forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Adaptive Medias, Inc. has tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect Adaptive Medias' current beliefs and are based on information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause Adaptive Medias' actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Adaptive Medias undertakes no obligation to update or provide advice in the event of any change, addition or alteration to the information contained in this Press Release including such forward-looking statements.
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ADAPTIVE MEDIAS, INC.
Consolidated Statements of Operations
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|
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For the years ended
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December 31,
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2014
|
|
2013
|
|
|
|
|
|
|
|
Revenue
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$
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5,075,226
|
|
$
|
1,030,267
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|
|
|
|
|
|
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Cost of revenue
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|
3,940,350
|
|
|
743,959
|
|
|
|
|
|
|
|
Gross profit
|
|
1,134,876
|
|
|
286,308
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
Legal and professional fees
|
|
1,506,016
|
|
|
1,121,661
|
|
Research and development
|
|
1,381,873
|
|
|
255,745
|
|
General and administrative expenses
|
|
4,044,468
|
|
|
2,197,784
|
|
Selling expenses
|
|
1,712,328
|
|
|
-
|
|
Depreciation and amortization
|
|
1,485,384
|
|
|
206,416
|
|
Stock compensation expense
|
|
1,206,852
|
|
|
4,154,665
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|
Impairment of intangibles
|
|
8,604,315
|
|
|
342,610
|
|
Loss on disposal on equipment
|
|
643
|
|
|
-
|
|
Total operating expenses
|
|
19,941,879
|
|
|
8,278,881
|
|
|
|
|
|
|
|
Loss from operations
|
|
(18,807,003)
|
|
|
(7,992,573)
|
|
|
|
|
|
|
|
Other (income) expense:
|
|
|
|
|
|
|
Other income
|
|
(18,827)
|
|
|
-
|
|
(Gain) loss on extinguishment of debt
|
|
19,379
|
|
|
(15,988)
|
|
Interest expense
|
|
42,171
|
|
|
486,396
|
|
Total other expense
|
|
42,723
|
|
|
470,408
|
|
|
|
|
|
|
|
Net loss
|
$
|
(18,849,726)
|
|
$
|
(8,462,981)
|
|
|
|
|
|
|
|
Net loss per common share - basic and diluted
|
$
|
(2.04)
|
|
$
|
(2.52)
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding - basic and diluted
|
|
9,233,075
|
|
|
3,355,003
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ADAPTIVE MEDIAS, INC.
Consolidated Balance Sheets
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|
|
|
|
|
|
|
December 31,
|
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December 31,
|
|
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2014
|
|
2013
|
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Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
2,255,784
|
|
$
|
22,188
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|
Accounts receivable, net of allowance of $242,632 and $15,393, at December 31, 2014 and 2013, respectively
|
|
|
1,754,893
|
|
|
609,993
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|
Prepaid expenses
|
|
|
61,478
|
|
|
126,321
|
|
Total current assets
|
|
|
4,072,155
|
|
|
758,502
|
|
Furniture and fixtures, net
|
|
|
72,476
|
|
|
2,044
|
|
Other assets:
|
|
|
|
|
|
|
|
Intangible assets, net
|
|
|
8,018,170
|
|
|
2,878,440
|
|
Deposits
|
|
|
34,843
|
|
|
5,793
|
|
Total other assets
|
|
|
8,053,013
|
|
|
2,884,233
|
|
Total assets
|
|
$
|
12,197,644
|
|
$
|
3,644,779
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
4,649,595
|
|
$
|
1,711,179
|
|
Convertible notes payable
|
|
|
-
|
|
|
300,000
|
|
Total current liabilities
|
|
|
4,649,595
|
|
|
2,011,179
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
37,396
|
|
|
-
|
|
Total liabilities
|
|
|
4,686,991
|
|
|
2,011,179
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized; none outstanding
|
|
|
-
|
|
|
-
|
|
Common stock, $0.001 par value, 300,000,000 shares authorized; 13,869,771 and 4,963,022 shares issued and outstanding at December 31, 2014 and 2013, respectively
|
|
|
13,866
|
|
|
4,963
|
|
Additional paid in capital
|
|
|
47,669,503
|
|
|
22,943,002
|
|
Common stock payable
|
|
|
-
|
|
|
8,625
|
|
Accumulated deficit
|
|
|
(40,172,716)
|
|
|
(21,322,990)
|
|
Total stockholders' equity
|
|
|
7,510,653
|
|
|
1,633,600
|
|
Total liabilities and stockholders' equity
|
|
$
|
12,197,644
|
|
$
|
3,644,779
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Investor Contact:
AJ Homayun
ahomayun@irpartnersinc.com
818-280-6800
PR Contact:
Zach Weiner
pr@adaptivem.com
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/adaptive-medias-inc-announces-record-fourth-quarter-and-fiscal-year-2014-revenues-300056351.html
SOURCE Adaptive Medias, Inc.