StreamTrack, Inc. (PINKSHEETS: STTK) ("StreamTrack" or the
"Company"), a digital media technology services company operating
within the internet radio and streaming media sectors, today
announced its results of operations for the six and three months
ended February 28, 2013, respectively.
Second Quarter Fiscal Year 2013 Financial
Highlights: (Six Months Ended February 28, 2013 Versus Period From
Inception, November 30, 2011, Through February 29, 2012
Results)
- Revenues increased 44% to $866,214, compared with $602,657
- Non-GAAP gross margin was 20%
- Operating loss increased 336% to $1,167,286, compared with
$267,945
- Net loss attributable to shareholders increased 549% to
$1,881,118
- Net loss per share attributable to shareholders increased to
$8.06 per share, compared to $3.52 per share
- Non-GAAP net loss attributable to shareholders for the six
months ended February 28, 2013 totaled $779,664
- Non-GAAP net loss per share attributable to shareholders for
the six months ended February 28, 2013 was $3.34 per share
Second Quarter Fiscal Year 2013 Financial
Highlights: (Three Months Ended February 28, 2013 Versus February
29, 2012 Results)
- Revenues decreased 37% to $381,177, compared with $602,657
- Non-GAAP gross margin increased over the prior quarterly
reporting period to 26%
- Operating loss increased 95% to $523,285, compared with
$267,945
- Net loss attributable to shareholders increased 233% to
$964,200
- Net loss per share attributable to shareholders increased to
$3.60 per share, compared to $2.71 per share
- Non-GAAP net loss attributable to shareholders for the six
months ended February 28, 2013 totaled $335,246
- Non-GAAP net loss per share attributable to shareholders for
the six months ended February 28, 2013 was $1.44 per share
Michael Hill, Chairman and Chief Executive Officer of
StreamTrack, stated, "Although our results for the year thus far
have been modest, the past six months have been critical to our
development and deployment as a globally-focused service provider
within the internet radio and streaming media sectors. We are now
one of the few service providers for internet radio companies that
operate on a global scale. Recently announced, we have entered into
agreements with both One World Media and China Mobile Entertainment
to begin to service the Asian region. We have recently deployed our
testing environment with a large publisher in the region. During
the first two quarters of fiscal 2013 we witnessed strong continued
listening across our broadcaster network. We will continue to
commit our capital to growing and retaining our current listener
capacity level, with our existing technology infrastructure
allowing us to grow to approximately 15 million listener hours per
month without additional capital investment. We began working
closer with new partners in Asia, Europe and the U.S during the
past quarter. Because of our unique patent-pending technologies, we
believe our growth in the coming months and years will not be
limited to just the U.S. domestic marketplace. We are confident and
extremely excited about our growth prospects within the global
marketplace both in 2013 and beyond."
Pro Forma Results of Operations
The following table contains selected statements of operations
information, which is unaudited and should be read in conjunction
with our financial statements and related notes included elsewhere
in the Company's Form 10-Q filed with the SEC on April 23, 2013.
The Company's financial statements filed on Form 10-Q for the
quarterly period ended February 28, 2013 ("10Q") are prepared in
accordance with generally accepted accounting principles in the
United States of America ("GAAP"). The unaudited pro forma
information included herein reflects adjustments to the Company's
GAAP-based financial statements included within the 10-Q to present
the Net Loss Attributable to Common Shareholders on a non-GAAP
basis, whereby the effect of all noncash accounting adjustments for
each period presented for the change in the fair value of
derivatives, accretion of debt discount, bad debt expense,
depreciation and stock based compensation are net to -0- in order
to calculate the pro forma adjusted Net Loss Attributable to Common
Shareholders. The pro forma adjustments have also been used to
calculate the pro forma basic and diluted earnings per share. The
Non-GAAP pro forma operating results for the periods presented
herein are not necessarily indicative of results for any future
periods. Management is providing this calculation to clarify the
Company's operations and monthly capital needs on a non-GAAP cash
only basis.
Pro Forma, Six Months Ended
February 28, 2013
----------------------------------------
GAAP Adjustments Non-GAAP
------------ ------------ ------------
Revenue $ 866,214 $ - $ 866,214
Costs of Sales 949,448 256,481 692,967 (1)
------------ ------------ ------------
Gross Profit (83,234) (256,481) 173,247
Gross Profit % -10% - 20%
Operating Expenses 1,084,052 (167,092) 916,960 (2)
------------ ------------ ------------
Operating Loss (1,167,286) (423,573) (743,713)
Other Income and Expenses (662,905) (626,954) (35,951) (3)
Provision for Income Taxes - - -
------------ ------------ ------------
Net Loss (1,830,191) (1,050,527) (779,664)
Deemed Dividend (50,927) (50,927) -
------------ ------------ ------------
Net Loss Attributable to
Shareholders $ (1,881,118) $ (1,101,454) $ (779,664)
============ ============ ============
Loss Per Share $ (8.06) $ (3.34)
============ ============
Weighted Average Shares 233,322 233,322
============ ============
(1) Adjustment includes $256,481 of depreciation and amortization
(2) Adjustment includes $18,050 of bad debt expense and $147,248 of stock
based compensation and $1,794 of depreciation and amortization
(3) Adjustment includes $377,981 for the change in fair value of derivatives
and $248,973 for the accretion of debt discount
Pro Forma, Three Months Ended
February 28, 2013
----------------------------------------
GAAP Adjustments Non-GAAP
------------ ------------ ------------
Revenue $ 381,177 $ - $ 381,177
Costs of Sales 411,818 128,241 283,577 (1)
------------ ------------ ------------
Gross Profit (30,641) (128,241) 97,600
Gross Profit % -8% - 26%
Operating Expenses 492,644 (75,928) 416,716 (2)
------------ ------------ ------------
Operating Loss (523,285) (204,169) (319,116)
Other Income and Expenses (440,915) (424,785) (16,130) (3)
Provision for Income Taxes - - -
------------ ------------ ------------
Net Loss (964,200) (628,954) (335,246)
Deemed Dividend - - -
------------ ------------ ------------
Net Loss Attributable to
Shareholders $ (964,200) $ (628,954) $ (335,246)
============ ============ ============
Loss Per Share $ (3.60) $ (1.44)
============ ============
Weighted Average Shares 267,640 233,322
============ ============
(1) Adjustment includes $128,241 of depreciation and amortization
(2) Adjustment includes $7,283 of bad debt expense and $67,748 of stock
based compensation and $897 of depreciation and amortization
(3) ustment includes $384,079 for the change in fair value of derivatives
and $40,706 for the accretion of debt discount
About StreamTrack, Inc. StreamTrack, Inc.
(the "Company") is a digital media and technology services company.
The Company provides audio and video streaming and advertising
services through its RadioLoyalty™ Platform (the "Platform") to
over 1,300 internet and terrestrial radio stations and other
broadcast content providers. The Platform consists of a web-based
and mobile player that manages streaming audio and video content,
social media engagement, display and video ad serving within the
web player and is also capable of replacing audio ads with video
ads within the web player in a live or on-demand environment. The
Company offers the Platform directly to its broadcasters and
integrates or white labels its technologies with web-based internet
radio guides and other web-based content providers. The Company is
also continuing development of WatchThis™, a patent-pending
technology to provide web, mobile and IP television streaming
services that are e-commerce enabled within streamed content.
For more information visit: http://www.streamtrack.com or
http://www.radioloyalty.com
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations, estimates and projections about StreamTrack's
industry, management's beliefs and certain assumptions made by
management. Readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and
uncertainties, the actual results and performance of the Company
may differ materially from the results expressed or implied by such
forward-looking statements. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with
the Securities and Exchange Commission.
Contact: StreamTrack, Inc. Michael Hill Chairman and
Chief Executive Officer ir@streamtrack.com +1 805-308-9151