SAN FRANCISCO, May 11, 2017 /CNW/ -- Frankly Inc. (TSX
VENTURE: TLK) (Frankly), a leader in transforming local TV
broadcast and media companies by enabling them to publish and
monetize their digital content across multiple platforms, has filed
an amendment to its Form S-1 Registration Statement relating to the
proposed public offering of its common shares in the United States (the "Offering").
As part of the amendment to its Form S-1 Registration Statement,
Frankly reported certain preliminary results for its first quarter
ended March 31, 2017. Based on
preliminary unaudited information, Frankly expects to report
revenue for the first quarter of 2017 in the range of US$6.3 million to US$6.4 million, representing an
increase of 21% to 23% compared to the same year-ago period.
Frankly also expects to report net loss for the first quarter of
2017 in the range of US$(1.7) million to
US$(1.4) million, representing a decrease of 6% to an
increase of 13% compared to the same year-ago period. Frankly also
expects to report adjusted EBITDA for the first quarter of 2017 in
the range of US$0.2 million to US$0.5
million, representing a significant increase from adjusted
EBITDA of US$3,000 reported in the
same year-ago period. Actual results for the first quarter of 2017
may differ from these preliminary estimates as a result of the
completion of the company's quarterly audit and the filing of the
company's Form 10-Q.
"Our preliminary first quarter results reflect the continued
growth of revenues across various product lines," said company CEO
Steve Chung. "We saw a healthy
increase in usage and professional services fees, specifically
around our phased web development work with Raycom Media, involving
expanding certain components of our industry-leading CMS platform,
which we will be able to leverage with other customers. In
addition, we saw increases in our advertising revenue, primarily
due to contractual changes to the company's advertising program
requiring the company to recognize gross revenues beyond
commissions. Overall, we are happy with the growth of our
business and we continue to make positive progress in upselling
products to our existing customers.
"We are continuing to build on our operational momentum in the
current quarter and remain confident in our ability to execute on
the strategic growth catalysts that will scale our business:
data-driven advertising, mobile and OTT apps, and strategic channel
partnerships. Going forward, continued execution on these key
initiatives will help drive growth both in 2017 and the years
ahead. Our success on a broader level will establish Frankly as the
de facto platform in traditional media's multi-billion-dollar
transformation to multi-screen content distribution."
Frankly plans to report complete first quarter 2017 financial
results by the end of May.
In terms of the Offering, it is currently anticipated that
2,400,000 common shares will be issued by Frankly as part of the
Offering, assuming an offering price of US$5.25 which is the midpoint of the price range
of US$4.50 to US$6.00 per common
share (the "Offering Price") included in the registration
statement. In addition, Frankly intends to grant the underwriters
for the Offering a 45-day option to acquire up to an additional
360,000 common shares assuming an offering price of US$5.25 (the midpoint of the price range included
in the registration statement) at the Offering Price, solely for
the purpose of covering over-allotments, if any. These terms
are preliminary and subject to change.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such an
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
About Frankly
Frankly (TSX VENTURE: TLK) builds an
integrated software platform for media companies to create,
distribute, analyze and monetize their content across all of their
digital properties on web, mobile and TV. Its customers
include NBC, ABC, CBS and FOX affiliates, as well as other leading
media organizations. Collectively, Frankly reaches nearly 60
million monthly users in the United
States. The company is headquartered in San Francisco with major offices in
New York. To learn more, visit
www.franklyinc.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Non-GAAP Measures
The Company reports earnings before
interest, taxes, depreciation and amortization ("EBITDA") and
Adjusted EBITDA, which are not financial measures calculated and
presented in accordance with Generally Accepted Accounting
Principles ("GAAP") and therefore may not be comparable to similar
measures presented by other issuers. EBITDA and Adjusted EBITDA
should not be considered in isolation or as a substitute to net
income (loss) or any other financial measures of performance or
liquidity calculated and presented in accordance with GAAP. The
Company defines Adjusted EBITDA as EBITDA, adjusted to exclude
certain non-cash charges and other items that we do not believe are
reflective of our ongoing operating results. The Company utilizes
Adjusted EBITDA internally for purposes of forecasting, determining
compensation, and assessing the performance of our business,
therefore, we believe this measure provides useful supplemental
information that may assist investors in assessing an investment in
the Company.
Below is a reconciliation of net loss to adjusted EBITDA for the
three-month period ended March 31,
2017:
All amounts in
U.S. dollars
|
|
Three Months
Ended
March 31, 2017
Range (in millions)
|
|
|
Low
|
|
High
|
Net Loss
|
|
$
(1.7)
|
|
$
(1.4)
|
Interest expense,
net
|
|
0.6
|
|
0.6
|
Income tax
expense
|
|
-
|
|
-
|
Depreciation and
amortization
|
|
1.1
|
|
1.1
|
Stock-based
compensation
|
|
0.2
|
|
0.2
|
Adjusted
EBITDA
|
|
$
0.2
|
|
$
0.5
|
Notice Regarding Forward-Looking
Statements
This release includes forward-looking
statements regarding Frankly and their respective businesses.
Forward-looking events and circumstances discussed in this release,
may not occur by certain specified dates or at all and could differ
materially as a result of known and unknown risk factors and
uncertainties affecting the parties. No forward-looking statement
can be guaranteed. In particular, there can be no assurance as to
the timing of the Offering, that the Offering will be consummated,
or, if the company's stock is listed, that the company will be able
to maintain minimum listing requirements with the NASDAQ Capital
Market. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and Frankly undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/frankly-files-amendment-to-form-s-1-registration-statement-300456576.html
SOURCE Frankly Inc.