IRVINE, Calif., May 12, 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 results for its first quarter,
ended March 31, 2015.
First Quarter Revenues Increase 60%
First quarter revenues totaled a record $1.17 million, an increase of 60% from
$730,000 in the first 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. In addition, online advertising spend tends to
be lowest in the first quarter of any year, leading to the
sequential decline in revenues from fourth quarter 2014.
In the first quarter, adjusted EBITDA equaled ($6.3 million) compared with ($2.8 million) in the fourth quarter of 2014 and
($3.1 million) in the third quarter
of 2014. EBITDA in the first quarter was increased due to a
one-time settlement expense of $3.7
million. Adjusted EBITDA, excluding the aforementioned
settlement, and a one-time write-down of intangibles made during
the fourth quarter of 2014, continued to improve on a sequential
basis reflecting the Company's move from the development stage to
commercialization along with its commitment to expense
management.
"Adaptive Medias' first quarter reflects our commitment to
consistent execution. Our focus on strong revenue growth and
responsible spending allowed the company to improve its gross
margins sequentially and reduce its losses in the seasonally soft
first quarter for advertising spend," said Jim Waltz, Acting Chief Operating Officer.
"Additionally, we are seeing increased spending by existing
customers and an increase in the number of active customers
adopting our solution. We believe that these trends reflect growing
appreciation for our technology's efficacy, simplicity and
flexibility."
Company Raises Up to $4.5
Million in Private Placement
Waltz continued, "Adaptive Medias, Inc. is fortunate enough to
have a group of key, strategic investors that firmly believe in our
technology. As a result, on May 5,
2015, we signed an agreement for up to $4.5 million in additional growth capital to be
delivered in up to three rounds. These funds would enable us to
continue to invest in maintaining our best-in-class solution in a
highly fragmented digital video and mobile space."
In the first round of funding, the Company sold an aggregate of
1,183,432 shares of its common stock at $1.69 per share, for total gross proceeds of
$2.0 million. The Company may close
up to two additional private placement capital raises from the same
investor for $1 million and
$1.5 million, respectively, which
would take place at later dates. The additional placements are
contingent on closing conditions set forth in the purchase
agreement. Adaptive Media intends to use the funds to
continue to grow its leadership, sales, and engineering teams to
deliver innovative product enhancements to its all-in-one digital
monetization platform Media Graph.
Gross profit for the first quarter amounted to $197,000, or 17% of revenues compared to
$287,000, or 39% of revenues in the
first quarter of 2014. The decrease in gross profit margin in 2015
versus 2014 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. Despite the sequential decrease in
revenues and gross profit, gross profit margins increased on a
sequential basis in the first quarter from 9% in the fourth quarter
of 2014.
As a result of the expansion of business, operating expenses
increased to $6,937,025 for the three
months ended March 31, 2015, compared
to $1,427,564 in the comparable
period of 2014, an increase of $5,796,705 or 508%. This increase is due to a one
time settlement expense of $3,768,485
as discussed in footnote 10 of the Notes to Condensed Consolidated
Financial Statements within the Form 10Q filed for the period ended
March 31, 2015.
With the exception of the onetime settlement expense, general
and administrative expenses remained largely stable on a sequential
basis totaling $1.35 million in the
first quarter ended March 31, 2015,
compared with $1.31 million in the
fourth quarter ended December 31,
2014.
Conference Call Details
Adaptive Medias will host a conference call to discuss these
results today, May 12, 2015, at
1:00 pm ET. The conference call
dial-in number is 866-686-9686. The conference ID number for
the call is 38326429. Participants may access the live webcast via
the following link: Adaptive Media 1Q15 Conference Call.
Following the live call, a replay will be available on the
Company's website, www.adaptivem.com, under "Investors".
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. Follow the Company on
Twitter @adaptive_m.
Non-GAAP Financial Measures
The Company uses certain non-GAAP financial measures in this
release. Generally, a non-GAAP financial measure is a numerical
measure of a company's performance, financial position or cash
flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with generally
accepted accounting principles (GAAP).
We report adjusted EBITDA because it is a key measure used by
our management and Board of Directors to understand and evaluate
our core operating performance and trends, to prepare and approve
our annual budget and to develop short- and long-term operational
plans. In particular, the exclusion of certain expenses in
calculating adjusted EBITDA can provide a useful measure for
period-to-period comparisons of our core business. Accordingly, we
believe that adjusted EBITDA provides useful information to
investors and others in understanding and evaluating our operating
results in the same manner as our management and Board of
Directors.
(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.
|
Condensed
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
1,167,719
|
|
$
|
731,604
|
|
Cost of
revenue
|
|
|
970,359
|
|
|
444,360
|
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
197,360
|
|
|
287,244
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Legal and
professional fees
|
|
|
353,419
|
|
|
122,816
|
|
Research and
development
|
|
|
156,972
|
|
|
139,888
|
|
General and
administrative expenses
|
|
|
1,752,127
|
|
|
537,319
|
|
Selling
expenses
|
|
|
275,187
|
|
|
188,625
|
|
Depreciation and
amortization
|
|
|
655,562
|
|
|
119,612
|
|
Stock compensation
expense
|
|
|
3,941,118
|
|
|
319,304
|
|
Total operating
expenses
|
|
|
7,134,385
|
|
|
1,427,564
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(6,937,025)
|
|
|
(1,140,320)
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Other
income
|
|
|
3,942
|
|
|
2,094
|
|
Gain (loss) on
extinguishment of debt
|
|
|
-
|
|
|
(79,014)
|
|
Interest
expense
|
|
|
(25,577)
|
|
|
-
|
|
Total other income
(expense)
|
|
|
(21,635)
|
|
|
(76,920)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(6,958,660)
|
|
$
|
(1,217,240)
|
|
|
|
|
|
|
|
|
|
Basic and dilutive
loss per common share
|
|
$
|
(0.50)
|
|
$
|
(0.23)
|
|
Weighted average
numbers of shares outstanding - basic and diluted
|
|
|
13,906,033
|
|
|
5,284,888
|
|
|
|
|
ADAPTIVE MEDIAS,
INC.
|
Condensed
Consolidated Balance Sheet
|
(Unaudited)
|
|
|
March
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash
|
|
$
|
209,450
|
|
$
|
2,255,784
|
Accounts receivable,
net
|
|
|
1,313,032
|
|
|
1,754,893
|
Prepaid
expenses
|
|
|
43,397
|
|
|
61,478
|
Total Current
Assets
|
|
|
1,565,879
|
|
|
4,072,155
|
|
|
|
|
|
|
|
Furniture and
fixtures, net
|
|
|
71,992
|
|
|
72,476
|
Intangible assets,
net
|
|
|
7,463,741
|
|
|
8,018,170
|
Deposits
|
|
|
10,793
|
|
|
34,843
|
Total Assets
|
|
$
|
9,112,405
|
|
$
|
12,197,644
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
|
7,982,779
|
|
$
|
4,686,991
|
Total
Liabilities
|
|
|
7,982,779
|
|
|
4,686,991
|
|
|
|
|
|
|
|
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; 14,049,731 and 13,869,771
shares issued and outstanding at March 31, 2015 and December 31,
2014, respectively
|
|
|
14,354
|
|
|
13,866
|
Additional paid-in
capital
|
|
|
48,246,648
|
|
|
47,669,503
|
Accumulated
deficit
|
|
|
(47,131,376)
|
|
|
(40,172,716)
|
Total Stockholders'
Equity
|
|
|
1,129,626
|
|
|
7,510,653
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
9,112,405
|
|
$
|
12,197,644
|
Investor Contact:
AJ Homayun
ahomayun@irpartnersinc.com
818-280-6800
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adaptive-medias-inc-announces-record-first-quarter-revenues-300081652.html
SOURCE Adaptive Medias, Inc.