IRVINE, Calif., March 30, 2018 (GLOBE NEWSWIRE) -- Propel Media, Inc. (OTCPink:PROM), a performance focused digital
media and advertising company, today announced its financial results for the fourth quarter and full year ended December 31, 2017.
In 2017, the Company generated $88.7 million in revenue and $34.5 million of adjusted EBITDA.
Performance Highlights for the Year Ended December 31, 2017:
- Revenue of $88.7 million, as compared to $61.2 million for 2016
- Operating income of $29.9 million, as compared to $16.7 million for 2016
- Adjusted EBITDA of $34.5 million, as compared to $21.9 million for 2016
- Continued to invest in DeepIntent, an integrated data and programmatic buying platform acquired by the Company in 2017
Performance Highlights for the Fourth Quarter 2017:
- 12th consecutive positive adjusted EBITDA quarter since becoming a publicly-traded company in January 2015
- Revenue of $26.3 million, as compared to $16.6 million in the fourth quarter of 2016
- Operating income of $6.6 million, as compared to $6.3 million in the fourth quarter of 2016
- Adjusted EBITDA of $8.6 million, as compared to $7.0 million in the fourth quarter of 2016
“We set the bar high with aggressive goals for 2017 and I’m proud to report that the team exceeded expectations. It was terrific
to see everyone work together in order to achieve such strong results,” said Marv Tseu, Chief Executive Officer of Propel
Media.
“This year, we will continue to dedicate resources to grow our audience and invest in DeepIntent’s cutting edge software
development and go-to-market strategy,” continued Tseu. “We believe that DeepIntent’s artificial intelligence-based platform will
give it a meaningful competitive advantage by allowing it to deliver contextually relevant audiences in a brand safe environment to
its advertisers.”
Further details concerning the results of operations for the year ended December 31, 2017 is set forth in the Company’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2018.
About Propel Media
Propel Media connects digital marketers with unique audiences through intent-based technology that delivers superior performance
with measurable results. We “Do Digital Differently” with a distinctive approach to digital powered by proprietary
contextualization technology and a unique supply of ad inventory. Headquartered in Irvine, California, Propel Media is
distinguished by its ability to deliver consistent results and its commitment to providing the highest level of client services to
its partners.
For more information visit: www.propelmedia.com
Forward-Looking Statements:
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995, including those statements regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated
financial flexibility and future financial performance and any other statements that are not statements of historical fact. These
statements may be identified, without limitation, by the use of forward-looking terminology such as “anticipates”, “expects,”
“will” or comparable terms or the negative thereof. Such statements are based on management’s current estimates, assumptions that
management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof.
Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are
beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors
described from time to time in Propel Media’s reports filed with the SEC. Among the factors that could cause Propel Media’s actual
results to differ materially are: loss of key advertising customers; inability to acquire new advertising customers; limitations on
its ability to acquire new users profitably or at all; inability to protect its intellectual property; inability to comply with the
covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new
institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to
effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations;
continued compliance with government regulations; and general economic conditions. Further, investors should keep in mind that
Propel Media’s financial results in any particular period may not be indicative of future results. Propel Media is under no
obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of
new information, future events, changes in assumptions or otherwise, except as required by law.
Use of Non-GAAP Financial Information
In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, we present Adjusted
EBITDA, which is a non-GAAP measure. Adjusted EBITDA, which is based upon the adjusted EBITDA which we report to our lenders, is a
key measurement monitored by management, and is determined by taking net (loss) income (the nearest GAAP measure) and adding
interest, taxes, depreciation, amortization, impairment charges, stock based compensation, bank fees, losses from extraordinary,
unusual or nonrecurring items, including board of director fees paid during the year ended December 31, 2017, noncash items, merger
and other onetime expenses and severance. We believe that this non-GAAP measure, viewed in addition to and not in lieu of our
reported GAAP results, provides useful information to investors by providing a more focused measure of operating results, enhances
the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to
key metrics used by management in its financial and operational decision making. The non-GAAP measure presented herein may not be
comparable to similarly titled measures presented by other companies. Adjusted EBITDA has been reconciled to the nearest GAAP
measure in the table following the financial statements attached to this press release.
| |
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| |
|
| Propel Media, Inc. and
Subsidiaries |
|
| Consolidated Balance Sheets |
|
| |
|
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|
|
| |
As of December 31, |
|
| Assets |
|
2017 |
|
|
|
2016 |
|
|
| |
|
|
|
|
| Current assets |
|
|
|
|
| Cash |
$ |
5,081,000 |
|
|
$ |
2,823,000 |
|
|
| Accounts receivable, net |
|
9,502,000 |
|
|
|
6,595,000 |
|
|
| Prepaid expenses and other current assets |
|
1,157,000 |
|
|
|
564,000 |
|
|
| Total current assets |
|
15,740,000 |
|
|
|
9,982,000 |
|
|
| |
|
|
|
|
| Property and equipment, net |
|
3,315,000 |
|
|
|
1,594,000 |
|
|
| Intangible assets |
|
1,201,000 |
|
|
|
20,000 |
|
|
| Goodwill |
|
6,028,000 |
|
|
|
2,869,000 |
|
|
| Deferred tax assets, net |
|
18,932,000 |
|
|
|
31,691,000 |
|
|
| Other assets |
|
137,000 |
|
|
|
89,000 |
|
|
| Total assets |
$ |
45,353,000 |
|
|
$ |
46,245,000 |
|
|
| |
|
|
|
|
| Liabilities and Stockholders’ Deficit |
|
|
|
|
| Current liabilities |
|
|
|
|
| Accounts payable |
$ |
4,419,000 |
|
|
$ |
1,861,000 |
|
|
| Accrued expenses |
|
4,252,000 |
|
|
|
3,914,000 |
|
|
| Advertiser deposits |
|
2,137,000 |
|
|
|
1,832,000 |
|
|
| Current portion of long-term debt |
|
6,181,000 |
|
|
|
6,089,000 |
|
|
| Total current liabilities |
|
16,989,000 |
|
|
|
13,696,000 |
|
|
| |
|
|
|
|
| Long-term debt, less current portion, net |
|
60,725,000 |
|
|
|
65,999,000 |
|
|
| Obligations to transferors, net |
|
15,203,000 |
|
|
|
14,569,000 |
|
|
| Other non-current liabilities |
|
- |
|
|
|
142,000 |
|
|
| Total liabilities |
|
92,917,000 |
|
|
|
94,406,000 |
|
|
| |
|
|
|
|
| Stockholders' Deficit |
|
|
|
|
| Preferred Stock, $0.0001 par value, authorized 1,000,000 shares, |
|
- |
|
|
|
- |
|
|
| no shares issued or outstanding |
|
|
|
|
| Common Stock, $0.0001 par value, authorized 500,000,000 shares, |
|
|
|
|
| issued and outstanding 250,010,162 at December 31, 2017 and 2016 |
|
25,000 |
|
|
|
25,000 |
|
|
| Additional paid-in capital |
|
3,717,000 |
|
|
|
2,757,000 |
|
|
| Accumulated deficit |
|
(51,306,000 |
) |
|
|
(50,943,000 |
) |
|
| Total stockholders’ deficit |
|
(47,564,000 |
) |
|
|
(48,161,000 |
) |
|
| Total liabilities and stockholders' deficit |
$ |
45,353,000 |
|
|
$ |
46,245,000 |
|
|
| |
|
|
|
|
| |
|
|
|
|
| Propel Media, Inc. and
Subsidiaries |
| Consolidated Statements of
Income |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
For the Three Months
Ended December 31, |
|
For the Years Ended
December 31, |
| |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
| Revenues |
|
$ |
26,313,000 |
|
|
$ |
16,637,000 |
|
|
$ |
88,667,000 |
|
|
$ |
61,226,000 |
|
| Cost of revenues |
|
|
10,226,000 |
|
|
|
5,280,000 |
|
|
|
32,800,000 |
|
|
|
21,710,000 |
|
| Gross profit |
|
|
16,087,000 |
|
|
|
11,357,000 |
|
|
|
55,867,000 |
|
|
|
39,516,000 |
|
| |
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Salaries, commissions, benefits and related expenses |
|
|
4,675,000 |
|
|
|
3,622,000 |
|
|
|
14,986,000 |
|
|
|
14,123,000 |
|
| Technology, development and maintenance |
|
|
1,366,000 |
|
|
|
402,000 |
|
|
|
4,021,000 |
|
|
|
3,488,000 |
|
| Sales and marketing |
|
|
82,000 |
|
|
|
49,000 |
|
|
|
143,000 |
|
|
|
118,000 |
|
| General and administrative |
|
|
2,716,000 |
|
|
|
408,000 |
|
|
|
4,103,000 |
|
|
|
1,641,000 |
|
| Professional services |
|
|
163,000 |
|
|
|
158,000 |
|
|
|
1,042,000 |
|
|
|
1,154,000 |
|
| Depreciation and amortization |
|
|
450,000 |
|
|
|
419,000 |
|
|
|
1,660,000 |
|
|
|
2,142,000 |
|
| Impairment of software and intangible assets |
|
|
- |
|
|
|
- |
|
|
|
20,000 |
|
|
|
183,000 |
|
| |
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
9,452,000 |
|
|
|
5,058,000 |
|
|
|
25,975,000 |
|
|
|
22,849,000 |
|
| |
|
|
|
|
|
|
|
|
| Operating income |
|
|
6,635,000 |
|
|
|
6,299,000 |
|
|
|
29,892,000 |
|
|
|
16,667,000 |
|
| |
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
(2,881,000 |
) |
|
|
(3,027,000 |
) |
|
|
(12,216,000 |
) |
|
|
(12,311,000 |
) |
| Gain from extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
106,000 |
|
| Other income |
|
|
106,000 |
|
|
|
(2,000 |
) |
|
|
106,000 |
|
|
|
16,000 |
|
| Total other expense |
|
|
(2,775,000 |
) |
|
|
(3,029,000 |
) |
|
|
(12,110,000 |
) |
|
|
(12,189,000 |
) |
| |
|
|
|
|
|
|
|
|
| Income before income tax expense |
|
|
3,860,000 |
|
|
|
3,270,000 |
|
|
|
17,782,000 |
|
|
|
4,478,000 |
|
| Income tax expense |
|
|
(12,984,000 |
) |
|
|
(2,010,000 |
) |
|
|
(18,145,000 |
) |
|
|
(3,897,000 |
) |
| Net (loss) income |
|
$ |
(9,124,000 |
) |
|
$ |
1,260,000 |
|
|
$ |
(363,000 |
) |
|
$ |
581,000 |
|
| |
|
|
|
|
|
|
|
|
| Net (loss) income per common share, basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
0.01 |
|
|
$ |
(0.00 |
) |
|
$ |
0.00 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average number of common shares outstanding, basic and diluted |
|
|
250,010,162 |
|
|
|
250,010,162 |
|
|
|
250,010,162 |
|
|
|
250,010,162 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Propel Media, Inc. and
Subsidiaries |
| Reconciliation of Adjusted
EBITDA |
| |
| |
|
|
|
|
|
|
|
| |
For the Three Months
Ended December 31, |
|
For the Years Ended
December 31, |
| |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
| Net Income (GAAP) |
$ |
(9,124,000 |
) |
|
$ |
1,260,000 |
|
|
$ |
(363,000 |
) |
|
$ |
581,000 |
| Add (subtract) the following items: |
|
|
|
|
|
|
|
| Depreciation and amortization |
|
450,000 |
|
|
|
419,000 |
|
|
|
1,660,000 |
|
|
|
2,142,000 |
| Impairment charges |
|
- |
|
|
|
- |
|
|
|
20,000 |
|
|
|
183,000 |
| Interest expense |
|
2,881,000 |
|
|
|
3,027,000 |
|
|
|
12,216,000 |
|
|
|
12,311,000 |
| Stock-based compensation |
|
243,000 |
|
|
|
229,000 |
|
|
|
960,000 |
|
|
|
1,640,000 |
| Tax expense (benefit) |
|
12,985,000 |
|
|
|
2,010,000 |
|
|
|
18,151,000 |
|
|
|
3,906,000 |
| Bank fees |
|
27,000 |
|
|
|
27,000 |
|
|
|
108,000 |
|
|
|
24,000 |
| Amortization of DeepIntent deferred purchase price |
|
287,000 |
|
|
|
- |
|
|
|
551,000 |
|
|
|
- |
| Merger and other one-time expenses |
|
(54,000 |
) |
|
|
(3,000 |
) |
|
|
267,000 |
|
|
|
224,000 |
| Board of Directors fees |
|
900,000 |
|
|
|
- |
|
|
|
900,000 |
|
|
|
- |
| Severance |
|
10,000 |
|
|
|
8,000 |
|
|
|
10,000 |
|
|
|
921,000 |
| Adjusted EBITDA (a non-GAAP measure) |
$ |
8,605,000 |
|
|
$ |
6,977,000 |
|
|
$ |
34,480,000 |
|
|
$ |
21,932,000 |
| |
|
|
|
|
|
|
|
Press Contact:
David Shapiro
Propel Media
press@propelmedia.com
