Adjusted EBITDA for Fourth Quarter Expected to
Improve 25%
Viggle Inc. (Nasdaq:VGGL) expects its fiscal 2015 full-year
revenue for the period ended June 30, 2015 will be approximately
$25.6 million, and approximately $6.9 million for the fiscal fourth
quarter, representing a 42% and 30% increase over the prior year
and quarter, respectively. The company also expects to report an
Adjusted EBITDA loss for fiscal 2015 of approximately $29.6
million, and approximately $6.2 million for the fiscal fourth
quarter. The company expects to report full-year financial results
no later than September 28, 2015.
John Small, Chief Financial Officer of Viggle, said, “Increased
advertising on the Viggle app led to our substantial growth in
revenue this quarter. Our aggressive and consistent marketing
efforts over the past year helped to drive those advertising
revenues to the current levels. Adjusted EBITDA for the quarter
improved year-over-year, but decreased for the full year because of
those increased marketing expenses.”
Key metrics for the fiscal fourth quarter ended June 30, 2015
were:
- Average monthly total reach for F4Q
2015 was 23.6 million, compared with 17.7 million in the year-ago
quarter, a 33% increase, and 25.7 million for the quarter ended
March 31, 2015.
- Average active reach in the quarter was
10.2 million compared with 6.4 million for F4Q 2014, an increase of
60%, and compared with 10.6 million in F3Q 2015.
- Almost 600,000 new users registered on
the Viggle platform, bringing net registered users to more than 9.5
million, compared with 5.4 million net registered users as of the
end of the year-ago fourth quarter, an increase of 78 percent.
- As of June 30, 2015, Viggle users have
cumulatively checked into more than 504 million TV programs and
matched more than 188 million songs using the Viggle Music service.
Overall, users’ average time in the Viggle app has been nearly 65
minutes per session.
- As of June 30, 2015, users have
cumulatively redeemed more than 64 billion points for approximately
5 million rewards, an average of 12,940 points per reward
redemption. The total retail value of rewards redeemed through June
30, 2015 is approximately $26 million.
Non-GAAP Adjusted Rewards Costs and Adjusted EBITDA
The Company provides a non-GAAP measure for adjusted rewards
costs as an alternative view of the Company’s cost of providing
rewards to its users. The Company reports rewards costs in its
Consolidated Statement of Operations in both cost of watchpoints
and engagement points and in selling, general and administrative
expenses. Management believes that a useful financial measure for
investors is to provide to them the amount of cash the Company has
actually paid to provide rewards to its users. Therefore, the
Company adjusts cost of watchpoints and engagement points as
reported, which represents the cost of points earned by users
during the period, to the cost of actual rewards redeemed by users
during the period. Selling, general and administrative expenses as
reported are likewise adjusted as certain point costs are
classified as marketing. The Company also presents Adjusted EBITDA.
Adjusted EBITDA is a non-GAAP measure that represents operating
loss (as reported) plus depreciation and amortization, stock based
compensation and adjustment to rewards costs. Management believes
these non-GAAP measures enhance investors’ understanding of the
Company’s financial performance. The information on adjusted
rewards costs and Adjusted EBITDA should be considered in addition
to, but not in lieu of operating income prepared in accordance with
generally accepted accounting principles in the United States
(GAAP). Since adjusted reward costs and Adjusted EBITDA are not
measures determined in accordance with GAAP, they have no
standardized meaning prescribed by GAAP and therefore, may not be
comparable to the calculation of similar measures of other
companies. A reconciliation between GAAP financial measures and
non-GAAP financial measures is as follows.
Reconciliation of rewards cost to
adjusted rewards cost and selling, general and
administrative expenses to adjusted selling, general and
administrative expenses (amounts in thousands)
QuarterEndedJune 30,2015
QuarterEndedJune 30,2014
12 MonthsEndedJune 30,2015
12 MonthsEndedJune 30,2014
Cost of watchpoints and engagement points as reported $ (2,626 ) $
(801 ) $ (9,574 ) $ (2,310 ) Adjustment to cost of watchpoints and
engagement points 358
(273 ) 3,090
(2,594 ) Adjusted cost of watchpoints and engagement
points (2,268 ) (1,074 )
(6,484 ) (4,904 )
Selling, general and administrative expenses as reported
(19,989 ) (21,853 ) (90,704 ) (81,534 ) Adjustment to selling,
general and administrative expenses 2,328
(31 ) 3,501
(283 ) Adjusted selling, general and
administrative expenses $ (17,661 ) $ (21,884
) $ (87,203 ) $ (81,817 )
Reconciliation of operating loss to
Adjusted EBITDA (amounts in thousands)
QuarterEndedJune 30,2015
QuarterEndedJune 30,2014
12 MonthsEndedJune 30,2015
12 MonthsEndedJune 30,2014
Revenue $ 6,899 $ 5,308 $ 25,584 $ 17,985 Operating loss as
reported (15,716 ) (16,444 ) $ (74,694 ) (65,859 ) Add: Stock
compensation costs 5,345 6,862 32,439 36,704 Adjustment to cost of
watchpoints and engagement points 358 (273 ) 3,090 (2,594 )
Adjustment to Selling, general and administrative expenses 2,328
(420 ) 3,501 (1,459 ) Depreciation and amortization costs
1,482 1,851
6,040 5,894
Adjusted EBITDA * $ (6,203 ) $ (8,424 )
$ (29,624 ) $ (27,314 )
* Adjusted EBITA is a non-GAAP measure,but
shown above it represents operatingloss plus depreciation and
amortization,stock based compensation, interest(expense) income,
net, certain one-timeselling, general and administrative costs,and
adjustment to rewards costs
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve
inherent risks and uncertainties that could cause actual results to
differ materially from those projected or anticipated. All
information provided in this press release is as of the date of
this release. Except as required by law, Viggle Inc. undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events.
About Viggle
Viggle is an entertainment marketing and rewards platform whose
app rewards its members for watching TV shows and discovering new
music. The Viggle Platform had an average monthly total reach of
23.6 million for the three months ended June 30, 2015, including
nearly 10 million Viggle registered users. Since its launch, Viggle
members have redeemed over $26 million in rewards for watching
their favorite TV programs and listening to music. Members can use
Viggle’s store, accessible through the Viggle app or on Viggle.com,
to redeem their Viggle Points for TV show, movie, and music
downloads. In addition, Viggle operates Wetpaint, which offers
entertainment and celebrity news online; NextGuide, maker of
technology that helps consumers search for, find, and set reminders
for TV shows and movies; and Choose Digital, a digital marketplace
platform that allows companies to incorporate digital content into
existing rewards and loyalty programs in support of marketing and
sales initiatives. For more information, visit www.viggle.com or
follow us on Twitter @Viggle.
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version on businesswire.com: http://www.businesswire.com/news/home/20150723005462/en/
For Viggle:Investors:John C. Small,
1-646-738-3220CFOjohn@viggle.comorMedia Relations:Dian Griesel
InternationalLaura Radocaj, 212-825-3210lradocaj@dgicomm.com