Chicken Soup for the Soul Entertainment Ramps Up Video Content Production, Targeting 2017 Revenue of $20 Million and EBITDA ...
August 21 2017 - 9:36AM
Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”)
(Nasdaq:CSSE), a fast-growing provider of positive and entertaining
video content, today announced that the successful completion of
its IPO provides the financing necessary to ramp up production of
its television programming, including having already begun
production on three series, as well as new online and other video
content.
Based on the company’s post-IPO production
schedule, CSS Entertainment is targeting 2017 revenue of $20
million and EBITDA of $10 million.
The IPO also provides CSS Entertainment with the
capital resources to enhance its 2018 business plan, projected to
result in approximate revenue of $36 million and EBITDA of $18
million.
“While working to complete our IPO, our
operating team was preparing to ramp up production of television
programming and other video content immediately upon closing,”
stated William J. Rouhana, Jr., chairman and chief executive
officer. “We have already begun production on three
series.”
These three series will air on major broadcast
and/or cable networks. The series will be included in their
respective networks’ announcements for their upcoming programming
lineups. These series will also be distributed through CSS
Entertainment’s online distribution channels, including through
Aplus.com and its online network.
“Each of these three series is consistent with
the company’s strategy of having a sponsor committed to funding a
series prior to production,” said Scott W. Seaton, vice chairman
and chief strategy officer. “The company anticipates going
into production on additional series in the coming months using
this same approach.”
In addition to building its video content
library through the production of original content, the company
intends to pursue acquisitions of third-party video content
libraries that are consistent with the Chicken Soup for the Soul
brand, as well as other opportunistic acquisitions.
“Our IPO proceeds and public shares position us
to make strategic acquisitions,” stated Mr. Rouhana.
The company is already engaged in ongoing
discussions with strategic acquisition targets. The outcome
of such discussions with strategic acquisition targets may impact
operating results.
ABOUT CHICKEN SOUP FOR THE SOUL
ENTERTAINMENT
Chicken Soup for the Soul Entertainment, Inc. is
a fast-growing provider of positive and entertaining video content
that brings out the best of the human spirit. The Company is
aggressively growing its business through a combination of organic
growth, licensing and distribution arrangements, acquisitions, and
strategic relationships. Chicken Soup for the Soul Entertainment is
also expanding its partnerships with sponsors, television networks
and independent producers. The Company will make its video content
available to consumers globally through television and online
networks, including its online affiliate APlus.com. The company is
a subsidiary of Chicken Soup for the Soul, LLC.
FORWARD LOOKING STATEMENTS
This press release includes forward-looking
statements that involve risks and uncertainties. Forward
looking statements are statements that are not historical
facts. Such forward-looking statements are subject to risks
(including those set forth in the offering circular) and
uncertainties which could cause actual results to differ from the
forward looking statements. The company expressly disclaims
any obligations or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the company’s expectations with respect
thereto or any change in events, conditions or circumstances on
which any statement is based. Investors should realize that if our
underlying assumptions for the projections contained herein prove
inaccurate or that known or unknown risks or uncertainties
materialize, actual results could vary materially from our
expectations and projections.
Use of Non-GAAP Financial
Measures
This press release contains a non-GAAP financial
measure (EBITDA), which is not recognized under GAAP, as a
supplemental indicator of our operating performance. This non-GAAP
financial measure is provided to enhance the readers understanding
of our historical and current financial performance. EBITDA means
earnings before interest, taxes, depreciation and amortization.
Management believes EBITDA to be a meaningful indicator of our
performance that provides useful information to investors regarding
our financial condition and results of operations. The most
comparable GAAP measure is operating income.
MEDIA CONTACT:
Jeanene Timberlake
RooneyPartners LLC
jtimberlake@rooneyco.com
(646) 770-8858
INVESTOR RELATIONS
Jody Burfening/Sanjay M. Hurry
LHA
CSSEnt@lhai.com
(212) 838-3777
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