Chicken Soup for the Soul Entertainment’s Recently Acquired Screen Media Assets Appraised at Over $31 Million
January 17 2018 - 9:04AM
Popcornflix® Direct-to-Consumer Online
Video Service Comprised of Five Networks with Over 15 Million
Active Users
Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”)
(Nasdaq:CSSE), a fast-growing provider of positive and entertaining
video content, has filed with the Securities and Exchange
Commission a Form 8-K/A, as required, updating the Form 8-K filed
on November 6, 2017 and providing audited and additional financial
information relating to CSS Entertainment’s acquisition of Screen
Media Ventures, LLC (“Screen Media”).
The value of all the recently acquired assets,
as set forth in an independent, third-party valuation opinion dated
January 11, 2018 (the “Valuation Opinion”), is approximately $31.4
million. The Valuation Opinion places a value on the Popcornflix
direct-to-consumer online video service and associated content
rights and the Screen Media TV and film library assets of
approximately $27.9 million.
“Screen Media is comprised of an extraordinary
collection of assets,” said William J. Rouhana, Jr., chairman and
chief executive officer. “We are extremely fortunate to have had
the opportunity to acquire these assets at such a substantial
discount not only to their appraised value, but also to their
intrinsic value and replacement cost.”
Reflecting the excess of the net appraised value
of the assets over their purchase price as set forth in the
Valuation Opinion, CSS Entertainment will recognize a non-cash gain
in its Statement of Operations for the year ended December 31, 2017
of approximately $22.2 million.
“The appraised value of the Screen Media assets
substantially exceeds our initial estimates,” stated Scott W.
Seaton, vice chairman and chief strategy officer. “Consistent with
our prior expectations, Screen Media generated more than $12
million in net revenue and $5 million in Adjusted EBITDA in 2017.
We anticipate Screen Media’s 2018 net revenue and Adjusted EBITDA
to substantially exceed its 2017 results.”
Mr. Rouhana added, “We continue to pursue
additional transformative opportunities that would complement our
growing portfolio of assets and further drive growth in revenues,
profits and shareholder value.”
The Popcornflix direct-to-consumer online video
service is comprised of five ad-supported networks with rights to
over 3,000 films and approximately 60 television series
(representing approximately 1,500 episodes) and is available in 56
countries. The Popcornflix app has been downloaded approximately 25
million times and has approximately 15 million active users.
The Screen Media content library is comprised of
over 1,200 television series and feature films and is one of the
largest, independently-owned libraries of filmed entertainment in
the world. Through direct worldwide relationships, this content is
distributed across all media, including theatrical, home video,
pay-per-view, free cable and paid television, video-on-demand and
existing and emerging video platforms.
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. The company owns Screen Media Ventures,
LLC, a leading global independent television and film distribution
company with one of the largest independently owned television and
film libraries. The company also owns Popcornflix®, an ad-based
direct-to-consumer online video service with five networks and
thousands of television episodes and movies. Chicken Soup for the
Soul Entertainment makes its video content available to consumers
globally through television and online networks, including its
online affiliate APlus.com. The company is also expanding its
partnerships with sponsors, television networks and independent
producers. Chicken Soup for the Soul Entertainment is a subsidiary
of Chicken Soup for the Soul, LLC.
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.
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.
MEDIA CONTACT
Jeanene TimberlakeRooneyPartners
LLCjtimberlake@rooneyco.com(646) 770-8858
INVESTOR RELATIONS
Sanjay M. Hurry/Jody BurfeningLHA Investor
RelationsCSSEnt@lhai.com(212) 838-3777
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