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.
ADAPTIVE MEDIAS,
INC.
Consolidated Statements of Operations
|
|
|
For the years
ended
|
|
December
31,
|
|
2014
|
|
2013
|
|
|
|
|
|
|
Revenue
|
$
|
5,075,226
|
|
$
|
1,030,267
|
|
|
|
|
|
|
Cost of
revenue
|
|
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
|
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
|
ADAPTIVE MEDIAS,
INC.
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
December
31,
|
|
December 31,
|
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
2,255,784
|
|
$
|
22,188
|
Accounts receivable, net of allowance of $242,632 and
$15,393, at December 31, 2014 and 2013, respectively
|
|
|
1,754,893
|
|
|
609,993
|
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
|
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.