Mood Media Reports Full Year 2016 Financial and Operating Results Achieving Revenues of $465.3 Million and
Adjusted EBITDA of $93.2 Million
Mood generates Positive Free Cash Flow of $2.8 Million in 2016, Achieving a $17.0 Million Improvement
Relative to Prior Year
Mood Reports 10% Increase in Gross Site Additions and 12% Reduction in Churn Sites in 2016 to Achieve 671
Net Site Additions, Including 3,275 in the Fourth Quarter. 2016 Gross Site Additions Highest Level Since 2012.
Mood Underlying In-Store Media Revenues Rise 2% Relative to Prior Year, Given Improvements in Recurring
Revenues and Growth in Equipment and Labor Revenues
Mood Media Corporation (“Mood Media,” “Mood” or the “Company”) (TSX:MM), the global leader in elevating Customer Experiences,
today reported its 2016 results and provided an update on the Company’s progress executing against its strategic and operational
plans.
Recent Highlights
- Mood reported revenues of $465.3 million in 2016, down 2.1% relative to the prior year. Underlying
revenues, which exclude the effect of foreign exchange translation and asset divestitures, declined by $3.5 million on a
year-over-year basis, or 0.7%. In the Company’s In-Store Media segments, underlying revenues rose by 1.7% relative to prior year
while at BIS underlying revenues rose by 1.9%. However, declines at Technomedia more than offset the gains made in these areas.
Similarly, in the fourth quarter In-Store Media and BIS revenues increased, while declines at Technomedia more than offset those
gains.
- Consistent with its 2016 guidance, the Company achieved free cash flow of $2.8 million in 2016,
posting a $17.0 million improvement from free cash flow of -$14.3 million in 2015. This increase was driven by improvements in
net cash flows from operating activities, reduced capital expenditures and reduced financing and leasing costs.
- Mood’s key performance indicators show increasing traction from gains in sales and operating
performance. The Company reported net site additions of 671 in 2016 (compared with a decline of 9,986 sites in 2015 vs. 2014),
including 3,275 in the fourth quarter. In total, the Company grew its number of gross site additions by 9.8% in 2016 relative to
the prior year with gains made in both its audio and visual segments and in both its North American and international business
units. In 2016, the Company recorded its highest number of gross site additions since 2012 and had its best performance in a
number of years with large-client gains, having signed three new 1,500+ site clients in 2016.
- Growth in the site base was also generated by substantially lower churn in 2016 with the number of
churn sites declining by 12.2% relative to prior year. The Company’s monthly churn rate was 0.8% in the fourth quarter of 2016
compared with 0.9% in the fourth quarter of 2015. The Company attributes the improvement to results from sales and operating
activities. ARPU in the fourth quarter was $40.78, a reduction of 3.5% relative to prior year. Excluding the impact of foreign
exchange, fourth quarter ARPU declined by 2.3% relative to prior year.
- Mood Adjusted EBITDA was $93.2 million in 2016 and $24.2 million in the fourth quarter compared with
$24.0 million in the prior year’s fourth quarter. On an underlying basis, excluding the effect of foreign exchange translation
and asset disposals, 2016 Adjusted EBITDA declined by $4.0 million relative to prior year. In the fourth quarter of 2016,
underlying EBITDA rose by $0.4 million relative to the same period in the prior year. The Company believes that the decline in
2016 underlying EBITDA is primarily related to reductions in large jobs systems sales at Technomedia, investments in sales and
marketing, higher sales commissions, the slight reduction in underlying recurring In-Store Media revenues, and the non-repetition
of certain prior year gains.
- The Company’s 2016 global transformation, integration and consolidation initiatives were completed
ahead of target with Mood delivering incremental annualized efficiencies of more than $5.0 million from Wave 5. This Wave 5
result is ahead of Management’s original $3.6 million expectation. The Company estimates savings related to its Wave 6 activities
in 2017 to be approximately $6.0 million, compared with its original estimate of $3.0 million, raising the total annualized
transformation savings delivered since the program began in the fourth quarter of 2013 to more than $33.0 million.
- In 2017, Mood expects free cash flow will be positive and Adjusted EBITDA to be stable relative to
2016. Mood expects continued positive momentum in North America In-Store Media recurring revenue trends with improved new sales
and reduced churn driven by sales investments made in 2016 in the areas of Premier sales, Systems sales, Local inside sales &
marketing. Similarly, International In-Store Media is expected to show positive momentum in recurring revenues. Offsetting some
of the recurring revenue gains will be increased investments in sales, partnerships and content expansion, as well as a delay in
equipment & labor revenues due to an international Auto chain client. BIS is estimated to record moderate EBITDA growth in
2017 and Technomedia EBITDA is estimated to gain ground from its performance in 2016.
“Our 2016 results clearly show that Mood’s client-facing activities are gaining strength on the foundation of improved
operational performance and successful sales investments and initiatives,” said Steve Richards, Mood’s President and Chief
Executive Officer. “As a result, we finished 2016 with strong site momentum, adding 3,275 net new sites in the fourth quarter
alone, driven both by improved gross site additions and improved churn rates. In fact, in 2016, we added more 1,500+ site clients
than in any period since Mood was combined in 2012. Noticeably, leading brands see the value of Mood solutions and are coming to us
in greater numbers and for broader Sound, Sight and Social/Mobile solutions.
“Furthermore, we are ahead of plan regarding 2016 Wave 5 initiatives and now expect annualized savings of more than $5 million
and we have increased our expectation for 2017 Wave 6 plans to $6.0 million, from $3.0 million previously. The upsized Wave 5 and 6
reductions will raise to $33.0 million the total savings from our integration and synergy program since its inception in 2013.
“Importantly, improved sales performance combined with strong ongoing contributions from our integration programs enabled Mood
to achieve positive free cash flow generation in 2016 of $2.8 million. For 2017, we project another year of positive free cash flow
as we advance our plan to make Mood the recognized global leader in elevating Customer Experiences.
“Mood’s transformation is achieving the important milestones along its trajectory to positive growth in recurring revenues,
improved margins and continued generation of free cash flow. Our global efficiency gains have been encouraging, and we believe
those efficiencies coupled with new sales momentum and enhanced operating performance put us on track to further our gains in the
future,” concluded Mr. Richards.
2016 Financial Results
(In thousands of US dollars)
The composition of revenue in 2016 was as follows:
|
|
|
2016 |
|
|
2015 |
Recurring |
|
|
$ |
243,338 |
|
|
$ |
246,714 |
Equipment |
|
|
|
148,136 |
|
|
|
148,322 |
Installation and services |
|
|
|
45,388 |
|
|
|
49,254 |
Other |
|
|
|
28,412 |
|
|
|
30,826 |
|
|
|
$ |
465,274 |
|
|
$ |
475,116 |
|
|
|
|
|
|
|
The Company reported 2016 revenues of $465.3 million and Adjusted EBITDA of $93.2 million compared with revenues of $475.1
million and Adjusted EBITDA of $98.4 million in 2015. 2016 revenues declined by 2.1% or $9.8 million relative to prior year, with a
$3.5 million decrease from underlying operations (including an $8.1 million decrease in revenues related to Technomedia), a $3.8
million decrease from foreign exchange translation and a $2.6 million decrease related to the sale of its French speaker
manufacturing business.
The Company’s recurring revenues represent its subscription and partnership revenue streams associated with its In-Store Media
operations in its North American and International divisions. The $2.0 million, 0.8%, underlying decrease in 2016 recurring
revenues relative to the prior year compares favorably to the 4.0% underlying decrease in 2015 recurring revenues. Recurring
revenue improvements have been driven by improved sales and operations activities as evidenced in improved gross site activations,
which rose by 10% in 2016 relative to 2015, and improved monthly churn rate of 0.9% in 2016 vs. 1.0% in 2015.
Equipment revenues rose by 2.5% or $3.6 million in 2016 relative to prior year on an underlying basis. The In-Store Media
divisions in North America and International grew their underlying equipment revenues by 11.6% in 2016 relative to prior year on
increased new client installations and higher gross site additions. However, these gains were partially offset by a $5.3 million
decline in equipment revenues at Technomedia.
Installation and services revenues relate to the addition of new client locations and the service and maintenance of existing
sites. Installation and services revenues declined by $3.2 million on an underlying basis in 2016 relative to 2015, of which $3.9
million was attributable to Technomedia.
Other revenues relate to royalties, advertising and miscellaneous revenue streams. Other revenues declined by $2.0 million on an
underlying basis relative to prior year, attributable to Technomedia.
In 2016, the Company’s underlying cost of sales decreased by $4.2 million relative to the prior year. Decreases were experienced
primarily at Technomedia, while North America experienced an increase owing to higher sales and installation activity and sales
mix, content expansion and partnership investment.
The Company’s operating expenses were $149.7 million in 2016, for an increase of $4.7 million relative to the prior year on an
underlying basis. The increase in operating expenses was primarily attributable to higher investments in sales and marketing
activities, higher sales commissions driven by higher equipment revenues and improved recurring revenue performance, and the timing
of specific non-repeating gains recorded in the prior period.
Mood’s Adjusted EBITDA in 2016 was $93.2 million, or a reduction of $4.0 million relative to the prior year on an underlying
basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Revenue and Adjusted EBITDA Movements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
Foreign |
|
|
Asset |
|
|
|
|
|
Reported |
($000) |
|
|
2015 |
|
|
Exchange |
|
|
Disposals |
|
|
Underlying |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring |
|
|
246,714 |
|
|
(1,410 |
) |
|
|
- |
|
|
|
(1,966 |
) |
|
|
243,338 |
Equipment |
|
|
148,322 |
|
|
(1,233 |
) |
|
|
(2,579 |
) |
|
|
3,626 |
|
|
|
148,136 |
Installation & Service |
|
|
49,254 |
|
|
(649 |
) |
|
|
- |
|
|
|
(3,217 |
) |
|
|
45,388 |
Other |
|
|
30,826 |
|
|
(463 |
) |
|
|
- |
|
|
|
(1,951 |
) |
|
|
28,412 |
Total revenues |
|
|
475,116 |
|
|
(3,754 |
) |
|
|
(2,579 |
) |
|
|
(3,509 |
) |
|
|
465,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
229,946 |
|
|
(2,209 |
) |
|
|
(1,110 |
) |
|
|
(4,231 |
) |
|
|
222,396 |
Gross margin |
|
|
245,170 |
|
|
(1,546 |
) |
|
|
(1,469 |
) |
|
|
723 |
|
|
|
242,878 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
146,783 |
|
|
(559 |
) |
|
|
(1,228 |
) |
|
|
4,689 |
|
|
|
149,685 |
Adjusted EBITDA |
|
|
98,387 |
|
|
(987 |
) |
|
|
(241 |
) |
|
|
(3,966 |
) |
|
|
93,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses totaled $12.4 million in 2016 compared with $10.3 million in the prior year. Other expenses in 2016 included a
$3.7 million loss on the sale of the Company’s speaker manufacturing business.
Net loss per share in 2016 was $(0.31) compared with a net loss per share of $(0.44) in the prior year. The reduction in net
loss per share relative to prior year was attributable primarily to lower foreign exchange losses on financing transactions and
reduced impairment charges related to goodwill.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 Segment Revenue & Profit Information |
In thousands of US dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-store media
North America
|
|
|
In-store media
International
|
|
|
BIS |
|
|
Other |
|
|
Consolidated
Group
|
Revenue |
|
|
$ |
257,693 |
|
|
$ |
110,205 |
|
|
$ |
58,241 |
|
|
$ |
39,135 |
|
|
|
$ |
465,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
115,481 |
|
|
|
44,092 |
|
|
|
35,308 |
|
|
|
27,515 |
|
|
|
|
222,396 |
Operating expenses |
|
|
|
67,050 |
|
|
|
48,907 |
|
|
|
19,030 |
|
|
|
14,698 |
|
|
|
|
149,685 |
Segment profit (loss) (i) |
|
|
$ |
75,162 |
|
|
$ |
17,206 |
|
|
$ |
3,903 |
|
|
$ |
(3,078 |
) |
|
|
$ |
93,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 Segment Revenue & Profit Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In-store media
North America
|
|
|
In-store media
International
|
|
|
BIS |
|
|
Other |
|
|
Consolidated
Group
|
Revenue |
|
|
$ |
256,858 |
|
|
$ |
113,589 |
|
|
$ |
57,468 |
|
|
$ |
47,201 |
|
|
$ |
475,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
|
112,994 |
|
|
|
47,327 |
|
|
|
35,504 |
|
|
|
34,121 |
|
|
|
229,946 |
Operating expenses |
|
|
|
65,523 |
|
|
|
50,095 |
|
|
|
18,285 |
|
|
|
12,880 |
|
|
|
146,783 |
Segment profit (i) |
|
|
$ |
78,341 |
|
|
$ |
16,167 |
|
|
$ |
3,679 |
|
|
$ |
200 |
|
|
$ |
98,387 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS |
Unaudited |
|
For the year ended December 31, 2016 |
|
In thousands of US dollars except per share information and weighted average number of shares
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
Revenue |
|
|
$ |
465,274 |
|
|
|
$ |
475,116 |
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
Cost of sales |
|
|
|
222,396 |
|
|
|
|
229,946 |
|
Operating expenses |
|
|
|
149,685 |
|
|
|
|
146,783 |
|
Depreciation and amortization |
|
|
|
63,585 |
|
|
|
|
66,648 |
|
Impairment of goodwill |
|
|
|
3,575 |
|
|
|
|
25,000 |
|
Share-based compensation |
|
|
|
478 |
|
|
|
|
1,264 |
|
Other expenses |
|
|
|
12,429 |
|
|
|
|
10,305 |
|
Foreign exchange loss on financing transactions |
|
|
|
10,975 |
|
|
|
|
20,356 |
|
Finance costs, net |
|
|
|
57,774 |
|
|
|
|
57,216 |
|
Loss for the year before income taxes |
|
|
|
(55,623 |
) |
|
|
|
(82,402 |
) |
|
|
|
|
|
|
|
Income tax charge (recovery) |
|
|
|
2,058 |
|
|
|
|
(2,439 |
) |
Loss for the year |
|
|
|
(57,681 |
) |
|
|
|
(79,963 |
) |
|
|
|
|
|
|
|
Loss attributable to: |
|
|
|
|
|
|
Owners of the parent |
|
|
|
(57,786 |
) |
|
|
|
(80,022 |
) |
Non-controlling interests |
|
|
|
105 |
|
|
|
|
59 |
|
|
|
|
$ |
(57,681 |
) |
|
|
$ |
(79,963 |
) |
|
|
|
|
|
|
|
Loss per share attributable to shareholders |
|
|
|
|
|
|
Basic and diluted |
|
|
$ |
(0.31 |
) |
|
|
$ |
(0.44 |
) |
Weighted average number of shares outstanding – basic & diluted |
|
|
|
184,535 |
|
|
|
|
182,286 |
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance Indicators
As of December 31, 2016, the number of total Company-owned sites increased by 3,275 relative to September 30, and increased by
671 relative to the previous year end. Relative to prior quarter, the Company grew its number of audio sites by 2,339 and its
visual site count by 936.
Total gross site activations in 2016 were 47,180, which is an increase of 10% relative to 2015. In 2016, the number of audio
gross site activations rose by 9% relative to prior year to 43,273 while the number of visual gross site activations rose by 15%,
or 3,907 higher relative to prior year. Mood Media recorded increases in gross site activations in both its International and North
American In-Store Media segments. Overall in 2016, the Company recorded its highest number of gross site activations since
2012.
Total monthly churn was 0.8% in the fourth quarter versus 0.9% in the fourth quarter of 2015. In total, the number of churn
sites in 2016 decreased by 12% relative to 2015. This improvement was experienced in both its audio and visual segments as well as
in both its North American and International In-Store Media segments.
Blended ARPU in the fourth quarter of 2016 was $40.78, or a reduction of 3.5% relative to the prior year’s fourth quarter. When
adjusted for foreign exchange translation, blended ARPU declined by 2.3% relative to the prior year. This ARPU performance is
consistent with recent performance and compares very favorably to previous trends from 2013 to 2015, when underlying ARPU declined
by approximately 4% on average each year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1.15 |
|
|
Q2.15 |
|
|
Q3.15 |
|
|
Q4.15 |
|
|
Q1.16 |
|
|
Q2.16 |
|
|
Q3.16 |
|
|
Q4.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audio sites |
|
|
|
402,690 |
|
|
|
|
401,428 |
|
|
|
|
398,745 |
|
|
|
|
398,773 |
|
|
|
|
395,596 |
|
|
|
|
393,869 |
|
|
|
|
394,881 |
|
|
|
|
397,220 |
|
Visual sites |
|
|
|
12,872 |
|
|
|
|
13,050 |
|
|
|
|
13,437 |
|
|
|
|
13,759 |
|
|
|
|
14,095 |
|
|
|
|
14,363 |
|
|
|
|
15,047 |
|
|
|
|
15,983 |
|
Total sites |
|
|
|
415,562 |
|
|
|
|
414,478 |
|
|
|
|
412,182 |
|
|
|
|
412,532 |
|
|
|
|
409,691 |
|
|
|
|
408,232 |
|
|
|
|
409,928 |
|
|
|
|
413,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audio ARPU |
|
|
$ |
41.71 |
|
|
|
$ |
41.70 |
|
|
|
$ |
40.97 |
|
|
|
$ |
41.10 |
|
|
|
$ |
40.77 |
|
|
|
$ |
41.30 |
|
|
|
$ |
40.43 |
|
|
|
$ |
39.47 |
|
Visual ARPU |
|
|
$ |
78.76 |
|
|
|
$ |
81.93 |
|
|
|
$ |
82.26 |
|
|
|
$ |
75.12 |
|
|
|
$ |
72.10 |
|
|
|
$ |
79.52 |
|
|
|
$ |
78.71 |
|
|
|
$ |
74.11 |
|
Blended ARPU |
|
|
$ |
42.90 |
|
|
|
$ |
42.96 |
|
|
|
$ |
42.29 |
|
|
|
$ |
42.24 |
|
|
|
$ |
41.83 |
|
|
|
$ |
42.63 |
|
|
|
$ |
41.81 |
|
|
|
$ |
40.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audio gross additions |
|
|
|
8,625 |
|
|
|
|
10,136 |
|
|
|
|
9,850 |
|
|
|
|
10,947 |
|
|
|
|
9,800 |
|
|
|
|
11,789 |
|
|
|
|
10,022 |
|
|
|
|
11,662 |
|
Visual gross additions |
|
|
|
1,006 |
|
|
|
|
698 |
|
|
|
|
829 |
|
|
|
|
876 |
|
|
|
|
786 |
|
|
|
|
973 |
|
|
|
|
875 |
|
|
|
|
1,273 |
|
Total gross additions |
|
|
|
9,631 |
|
|
|
|
10,834 |
|
|
|
|
10,679 |
|
|
|
|
11,823 |
|
|
|
|
10,586 |
|
|
|
|
12,762 |
|
|
|
|
10,897 |
|
|
|
|
12,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audio monthly churn |
|
|
|
1.2 |
% |
|
|
|
0.9 |
% |
|
|
|
1.1 |
% |
|
|
|
0.9 |
% |
|
|
|
1.1 |
% |
|
|
|
1.1 |
% |
|
|
|
0.8 |
% |
|
|
|
0.8 |
% |
Visual monthly churn |
|
|
|
5.2 |
% |
|
|
|
1.3 |
% |
|
|
|
0.8 |
% |
|
|
|
1.6 |
% |
|
|
|
1.1 |
% |
|
|
|
1.7 |
% |
|
|
|
0.4 |
% |
|
|
|
0.7 |
% |
Total monthly churn |
|
|
|
1.3 |
% |
|
|
|
1.0 |
% |
|
|
|
1.0 |
% |
|
|
|
0.9 |
% |
|
|
|
1.1 |
% |
|
|
|
1.2 |
% |
|
|
|
0.8 |
% |
|
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mood presents Adjusted EBITDA information as a supplemental figure because management believes it provides useful information
regarding operating performance. The Company recognizes that the term (i) is not a recognized measure under IFRS, (ii) does not
have a standardized meaning, and (iii) may not be comparable to similar measures used by other companies. Accordingly, investors
are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings or (loss) determined in accordance
with IFRS as an indicator of the financial performance of Mood Media or as a measure of Mood’s liquidity and cash flows.
|
|
|
|
|
|
|
Reconciliation of segment profit to Consolidated Group loss for the
period before income taxes |
In thousands of US dollars
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
Segment profit (i) |
|
|
$ |
93,193 |
|
|
|
$ |
98,387 |
|
Depreciation and amortization |
|
|
|
63,585 |
|
|
|
|
66,648 |
|
Impairment of goodwill |
|
|
|
3,575 |
|
|
|
|
25,000 |
|
Share-based compensation |
|
|
|
478 |
|
|
|
|
1,264 |
|
Other expenses |
|
|
|
12,429 |
|
|
|
|
10,305 |
|
Foreign exchange loss on financing transactions |
|
|
|
10,975 |
|
|
|
|
20,356 |
|
Finance costs, net |
|
|
|
57,774 |
|
|
|
|
57,216 |
|
Loss for the year before income taxes |
|
|
$ |
(55,623 |
) |
|
|
$ |
(82,402 |
) |
|
(i) Segment profit is a non-IFRS measure internally referred to by management as
Adjusted EBITDA and is prepared on a consistent basis. Adjusted EBITDA is considered by executive management as one of the key
drivers for the purpose of making decisions about performance assessment and resource allocation of each operating segment. It
is calculated by reducing revenue by cost of sales and operating expenses. The non-IFRS measure does not have a standardized
meaning and therefore is unlikely to be comparable to similarly titled measures reported by other companies. |
|
Free Cash Flow (“FCF”) is another non-IFRS measure that Mood uses to explain positive or negative net cash flows. The Company
defines FCF as the change in net debt from the end of the prior period to the end of the current period being reported. Contractual
debt less unrestricted cash is used to calculate net debt at the respective balance sheet dates. The Company uses the contractual
principal amount of its debt instruments and financing leases. Following is a table which sets forth the calculation of net debt
and FCF from December 31, 2015 to December 31, 2016. The Company cautions that net debt and free cash flow do not have standardized
meanings and may not be comparable to similar measures used by other companies. Accordingly, investors are cautioned that FCF and
change in net debt should not be construed as an alternative to net earnings or (loss) determined in accordance with IFRS as an
indicator of the financial performance of Mood or as a measure of Mood liquidity and cash flows.
|
|
|
|
|
|
|
|
|
|
Reconciliation of Consolidated Group Free Cash Flow |
In thousands of US dollars
|
|
|
|
|
|
|
|
|
|
|
Description |
|
|
Dec. 31, 2016 |
|
|
Dec. 31, 2015 |
|
|
Increase or
Decrease in
Debt & Cash
|
|
|
|
|
|
|
|
|
|
|
First lien credit facilities |
|
|
$ |
234,538 |
|
|
$ |
236,888 |
|
|
|
($2,350 |
) |
Senior unsecured notes |
|
|
|
350,000 |
|
|
|
350,000 |
|
|
$ |
0 |
|
MMG Notes |
|
|
|
50,000 |
|
|
|
50,000 |
|
|
$ |
0 |
|
Finance leases |
|
|
|
2,662 |
|
|
|
3,413 |
|
|
|
($751 |
) |
Total Contractual Principal of Debt |
|
|
$ |
637,200 |
|
|
$ |
640,301 |
|
|
|
($3,101 |
) |
Less: Unrestricted cash |
|
|
|
16,978 |
|
|
|
17,326 |
|
|
|
(348 |
) |
Net debt |
|
|
$ |
620,222 |
|
|
$ |
622,975 |
|
|
|
($2,753 |
) |
Free Cash Flow / (Increase) or Decrease in Net Debt |
|
|
|
|
|
|
|
|
$ |
2,753 |
|
|
|
|
|
|
|
|
|
|
|
Conference Call
As previously announced, the Company will hold a conference call on March 10, 2017, at 8:30 a.m. Eastern Time to discuss its
results and respond to questions from the investment community. To participate, please dial 416-764-8658 or toll free at
1-888-886-7786. A replay will be available within 24 hours following the teleconference by dialing 416-764-8691 or toll free at
1-877-674-6060 (passcode 268820#).
This earnings release, which is current as of March 9, 2017, is a summary of the Company’s 2016 results and should be read in
conjunction with the Company’s 2016 Management Discussion and Analysis, (“MD&A”), 2016 Consolidated Financial Statements and
Notes thereto and our other recent regulatory filings.
The financial information presented herein has been prepared on the basis of International Financial Reporting Standards
(“IFRS”) for consolidated financial statements and is expressed in United States dollars unless otherwise stated.
This news release includes certain non-IFRS financial measures. Mood uses these non-IFRS financial measures as supplemental
indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by
IFRS and therefore may not be comparable to the calculation of similar measures used by other companies, and should not be viewed
as alternatives to measures of financial performance calculated in accordance with IFRS.
Unless otherwise noted, all figures presented in this news release are in U.S. dollars.
In this earnings release, the terms "we," "us," "our," "Mood Media," “Mood” and "the Company" refer to Mood Media Corporation
and its subsidiaries.
About Mood Media Corporation
Mood Media Corporation (TSX:MM) is the global leader in elevating Customer Experiences. With more than 500,000 active client
locations around the globe, Mood combines sight, sound, scent, social mobile technology and systems to create greater emotional
connections between brands and consumers. Mood’s clients include businesses of all sizes and market sectors, from the world’s most
recognized retailers and hotels to quick-service restaurants, local banks and thousands of small businesses. For more
details: http://us.moodmedia.com/.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words "believe," "expect," "anticipate," "estimate," "intend,"
"may," "will," "would," “is planning” and similar expressions and the negative of such expressions are intended to identify
forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking
statements are subject to important assumptions, including the following specific assumptions: general industry and economic
conditions; and changes in regulatory requirements affecting the businesses of Mood. While Mood considers these factors and
assumptions to be reasonable based on information currently available, they are inherently subject to significant uncertainties and
contingencies and may prove to be incorrect.
Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking
statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions,
currency fluctuations as well as the risk factors identified in Mood’s Management Discussion and Analysis dated March 9, 2017 and
Mood’s annual information form dated March 30, 2016, both of which are available on www.sedar.com.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the
forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements
or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if
substantially realized, that they will have the expected consequences to, or effects on, Mood.
Forward-looking statements are given only as at the date hereof and Mood disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable
laws.
Mood Media Corporation
Investor Inquiries
Randal Rudniski, +1-512-592-2438
randal.rudniski@moodmedia.com
or
Media Inquiries
Scott Moore, +1-512-583-8686
scott.moore@moodmedia.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170309006380/en/