UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Month of May, 2015

Commission File Number 001-33085

RR Media Ltd.
(Translation of registrant’s name into English)

RR Media Building
Hanegev Street
POB 1056
Airport City 70100
 Israel (Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F T   Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨   No T

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_

 
 

 

 
RR Media Ltd.
 
On May 11, 2015 the registrant issued a press release "RR Media Reports First Quarter Results; ESS acquisition closed". A copy of the press release is attached as Exhibit 99.1 to this report and is incorporated herein by reference.
 
Exhibit
 
Exhibit 99.1.    Press release of the registrant, dated May 11, 2015 "RR Media Reports First Quarter Results; ESS acquisition closed".
 
 
2

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
RR Media LTD.

By:
/S/ ORNA NAVEH
Name:
Orna Naveh
Title:
General Counsel and Company Secretary

Date: May 11, 2015
 
 
3

 
 

Exhibit Index

Exhibit 99.1.    Press release of the registrant, dated May 11, 2015 "RR Media Reports First Quarter Results; ESS acquisition closed".

4






Exhibit 99.1
 
For immediate release
 
RR Media Reports First Quarter Results;
ESS acquisition closed
 
Revenues of $30.5 million and Adjusted EBITDA of $3.6 Million,
Consistent with April 10 Update

Airport City Business Park, Israel  (May 11, 2015) – RR Media (NASDAQ: RRM), a leading provider of global digital media services to the broadcast industry, today announced financial results for the first quarter ended March 31, 2015.
 
First Quarter Highlights
 
·
ESS acquisition closed on April 29th  and integration is underway
 
·
Revenues of $30.5 million, down 7.1% year-over-year including a negative impact of approximately $492,000 due to the Euro/Dollar exchange rate. Main decline in revenue due to economic issues in Russia, impacting RRM customers
 
·
Gross margin of 23.6%, down from 24.4% in Q1 2014 due to decline in revenue
 
·
Non-GAAP net income of $0.07 per basic and diluted share
 
·
GAAP net income of $0.05 per basic and diluted share
 
·
Board declared a cash dividend of $0.07 per share, an aggregate amount of approximately $1.2 million, representing an annual dividend yield of 3.9%.
 
(In Thousands)
 
Q1 2015
   
Q1 2014
 
   
Content Mgmt. & Distribution Services
   
MSS
   
Total
   
Content Mgmt. & Distribution Services
   
MSS
   
Total
 
Revenues
  $ 27,567     $ 2,963     $ 30,530     $ 29,980     $ 2,877     $ 32,857  
Gross profit
  $ 6,876     $ 315     $ 7,191     $ 7,577     $ 458     $ 8,035  
Gross margin
    24.9 %     10.6 %     23.6 %     25.3 %     15.9 %     24.4 %
 
Avi Cohen, CEO of RR Media, commented, “We continued our aggressive efforts to diversify our revenues, especially geographic diversification, with the acquisition of Eastern Space Systems (ESS) in Romania, a combination which will expand our access to a rapidly growing and strategically important region with more than 17 million TV households in Central, Eastern and Nordic Europe. The importance of this diversification was underscored by the issues in Russia, as the rapid decline in the value of the Ruble created significant issues for our Russian customers, impacting our first quarter revenue and backlog. We are taking specific steps to address this issue, including decreasing relevant satellite capacity commitments. While this event and the continued foreign exchange rate headwinds, created short-term challenges, we are increasingly confident that we are on the right path strategically and the ESS acquisition will only accelerate our efforts.”
 
 
 

 
 
“We continue to move upstream with customers, further penetrating our customers with higher value-added services and acquiring additional business with our new and broader offering,” continued Mr. Cohen. “In the last few weeks, we have signed new multi-year agreements with several major tier one customers for content management services.  In addition, we have added new customers for OTT delivery of 10’s of linear channels including a major U.S. Pay-TV provider, all of which is serving as the foundation for predictable growth in the future.”

First Quarter 2015 Financial Results
 
Revenues: First quarter 2015 revenues were $30.5 million down 7.1% from $32.9 million in the first quarter of 2014. Content Management and Distribution Services revenue, excluding non-core revenue from MSS, was $27.6 million, down 8.0% from $30.0 million in the first quarter last year. First quarter 2015 revenues were reduced by approximately $492,000 related to the impact of the Euro/U.S. Dollar exchange rate, and geopolitical issues, primarily in the Russia, negatively impacted revenues.
 
Gross profit: First quarter 2015 gross profit and gross margin were $7.2 million and 23.6% respectively, compared to $8.0 million and 24.4%, respectively, for the first quarter of 2014. Content Management and Distribution Services gross margin was 24.9%, compared to 25.3% last year.
 
Non-GAAP operating income & operating margin, excluding non-cash stock based compensation, amortization of acquisition-related intangibles, acquisition related expenses and amortization of acquisition related prepaid compensation expenses, but inclusive of foreign currency impact was $1.7 million and 5.5% respectively during the first quarter of 2015, compared to $2.8 million and 8.5% respectively in the first quarter of 2014.

Non-GAAP net income for the first quarter was $1.2 million, compared to $2.1 million in the first quarter of 2014. Non-GAAP net income per share on a fully diluted basis was $0.07 for the first quarter of 2015, compared to $0.12 in first quarter last year.
 
GAAP net income for the first quarter of 2015 was $0.9 million, compared to $1.7 million in the first quarter of 2014. GAAP net income per share on a fully diluted basis was $0.05 for the first quarter of 2015 compared to $0.10 in the first quarter of 2014.
 
Adjusted EBITDA for the first quarter of 2015 was $3.6 million compared to $5.1 million in the first quarter of 2014.
 
Backlog to be delivered in the next 12 months decreased to $76 million, down from $94 million in the first quarter of 2014 and down from $86 Million in the end of the fourth quarter of 2014.
 
Cash, cash equivalents and marketable securities as of March 31, 2015 totaled $19.5 million compared with $22 million as of December 31, 2014.
 
Quarterly Dividend
 
In accordance with the Company’s dividend policy, the Board of Directors declared a cash dividend in the amount of $0.07 per ordinary share and in the aggregate amount of approximately $1.2 million, representing an annual dividend yield of 3.9%. The dividend is payable on June 10, 2015 to all of the Company's shareholders of record at the end of the trading day on NASDAQ on May 25, 2015.

Full Year 2015 Guidance
 
On February 23, 2015, management issued full-year 2015 expectations of total revenues of $135 million to $139 million, with Adjusted EBITDA of $19.5 million to $20.5 million. At this time, the Company is not changing its guidance. Management will continue to evaluate its financial performance and pipeline, and expects to provide updates to its full-year outlook, accounting for acquisitions, as the year progresses.
 
 
 

 
 
Management continues to expect some level of variation in mix from quarter to quarter leading to some fluctuations in revenues and gross margin between quarters.
 
Conference Call Information
 
Management will host a conference call to discuss the results at 9 a.m. ET and 4 p.m. in Israel on Monday, May 11, 2015.

Details are as follows:
 
 
·
Dial-in number from within the United States: 1-877-857-6149
 
 
·
Dial-in number from Israel: 1 80 925 8243
 
 
·
Dial-in number from the UK: 0 808 101 7162
 
 
·
Dial-in number (other international): 1-719-325-4805
 
 
·
Playback, available until May 18, 2015 by calling 1-877-870-5176 (United States) or 1-858-384-5517 (international). Please use pin number 9969156 for the replay.
 
 
·
A live webcast is accessible at http://public.viavid.com/index.php?id=113925.

ENDS

About RR Media

RR Media (NASDAQ: RRM) works in partnership with the world’s leading media players to create the richest possible media and entertainment experiences for the world’s consumers. RR Media’s complete ecosystem of digital media services maximize the potential of media and entertainment content, covering four main areas: smart global content distribution network with an optimized combination of satellite, fiber and the internet; content management and channel origination; sports, news & live events; and online video services. RR Media provides scalable, converged digital media services to more than 650 channels and to leagues and right holders of over 100,000 hours of sports and live events yearly. The company delivers content to 95% of the world’s population reaching viewers of multiplatform operators, VOD platforms, online video and direct-to-home services. Visit the company's website www.rrmedia.com
 
Safe Harbor Statement
 
This press release contains 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. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements, including the risks indicated in our filings with the Securities and Exchange Commission (SEC). For more details, please refer to our SEC filings and the amendments thereto, including our Annual Report on Form 20-F for the year ended December 31, 2014 and our Current Reports on Form 6-K.
 
Company Contact:
Shmulik Koren, CFO
Tel: +972 3 928 0777
Email: investors@rrmedia.com

Investor Contact:
Hayden/ MS - IR
Brett Maas/ Miri Segal-Scharia
Tel: 646-536-7331 / 917-607-8654
 
 
 

 
 
RR Media Ltd.
 
Interim Condensed Consolidated Statements of Income


In thousands, except share data

   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Revenues
                 
Content Mgmt. & distribution services
    27,567       29,980       119,750  
Mobile satellite services
    2,963       2,877       11,476  
Total revenues
  $ 30,530     $ 32,857     $ 131,226  
                         
Cost of revenues
                       
Content Mgmt. & distribution services
    20,691       22,403       91,215  
Mobile satellite services
    2,648       2,419       9,961  
Total cost of revenues
    23,339       24,822       101,176  
                         
Gross profit
    7,191       8,035       30,050  
                         
Operating expenses
                       
                         
Sales and marketing
    3,629       2,995       13,329  
                         
General and administrative
    2,252       2,531       9,308  
                         
Reorganization expenses
    -       -       236  
                         
Total operating expenses
    5,881       5,526       22,873  
                         
Operating income
    1,310       2,509       7,177  
                         
Financial expenses, net
    109       170       541  
                         
Income before taxes on Income
    1,201       2,339       6,636  
                         
Income taxes
    289       615       1,581  
                         
Net Income
    912       1,724       5,055  
Net Profit (loss) attributable to non-controlling interest
                       
      (14 )     (72 )     (95 )
Net income attributable to shareholders
  $ 926     $ 1,796     $ 5,150  
                         
Earnings per ordinary share attributable to shareholders
                       
                         
Basic earnings per share
    0.05       0.10       0.30  
Diluted earnings per share
    0.05       0.10       0.29  
                         
Weighted average number of shares used to compute:
                       
                         
Basic earnings per share
    17,392,072       17,346,561       17,365,608  
Diluted earnings per share
    17,657,516       17,645,977       17,671,975  
 
 
 

 
 
RR Media Ltd.
Interim Condensed Consolidated Statements of Income


In thousands

   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Reconciliation of GAAP  Net Income to Non-GAAP Net Income:
                 
GAAP Net income attributable to shareholders
  $ 926     $ 1,796     $ 5,150  
Adjustments to reconcile GAAP net income
                       
 to non-GAAP net income:
                       
Non-cash equity-based compensation charge
    175       163       694  
Amortization of acquisition related intangible assets
    148       197       671  
Changes in fair value of currency conversion derivatives
    -       41       (345 )
Amortization of acquisition related prepaid
                       
 compensation expenses
    42       42       168  
Income tax effect of non-GAAP adjustments
    (58 )     (81 )     (160 )
Contingent consideration in respect of acquisition
    -       -       (270 )
Reorganization expenses
    -       -       236  
                         
Non-GAAP  net income attributable to shareholders
  $ 1,233     $ 2,158     $ 6,144  
 
   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Reconciliation of GAAP Operating Income
                 
 to non GAAP operating income:
                 
Operating income
  $ 1,310     $ 2,509     $ 7,177  
                         
Adjustments to reconcile GAAP operating
                       
 income to non-GAAP operating income:
                       
Non-cash equity-based compensation charge
    175       163       694  
Amortization of acquisition related intangible assets
    148       197       671  
Cost of sales related changes in fair value of
                       
embedded currency conversion derivatives
    -       (113     (239 )
Amortization of acquisition related prepaid
                       
 compensation expenses
    42       42       168  
Contingent consideration in respect of acquisition
            -       (530 )
Reorganization expenses
    -       -       236  
                         
Non-GAAP operating income attributable to shareholders
  $ 1,675     $ 2,798     $ 8,177  

 
 

 
 
RR Media Ltd.
 
Interim Condensed Consolidated Statement of Income


In thousands

   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Reconciliation of GAAP Operating Income to EBITDA:
                 
                   
Operating income
  $ 1,310     $ 2,509     $ 7,177  
Adjustments to reconcile GAAP operating
                       
 income to EBITDA:
                       
Non-cash equity-based compensation charge
    175       163       694  
Depreciation and amortization
    2,109       2,425       9,675  
Acquisition related expenses
    -       -       -  
Cost of sales related changes in fair value of
                       
currency conversion derivatives
    -       (113 )     (239 )
Amortization of acquisition related prepaid
                       
 compensation expenses
    42       42       168  
                         
EBITDA
  $ 3,636     $ 5,026     $ 17,475  
 
   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Reconciliation of Non-GAAP operating income to adjusted EBITDA:
                 
                   
Non-GAAP operating income
  $ 1,675     $ 2,798     $ 8,177  
Adjustments to reconcile Non-GAAP operating
                       
 income to EBITDA:
                       
Depreciation and amortization
    1,961       2,228       9,004  
                         
Adjusted EBITDA
  $ 3,636     $ 5,026     $ 17,181  

 
 

 

RR Media Ltd.
 
Interim Condensed Consolidated Statements of Income (non-GAAP results)


In thousands, except share data

   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Revenues
                 
Content Mgmt. & distribution services
    27,567       29,980       119,750  
Mobile satellite services
    2,963       2,877       11,476  
Total revenues
  $ 30,530     $ 32,857     $ 131,226  
                         
Cost of revenues
                       
Content Mgmt. & distribution services
    20,677       22,508       91,397  
Mobile satellite services
    2,648       2,419       9,961  
Total cost of revenues
    23,324       24,927       101,358  
                         
Gross profit
    7,206       7,930       29,868  
                         
Operating expenses
                       
                         
Sales and marketing
    3,405       2,735       12,416  
                         
General and administrative
    2,126       2,397       9,275  
                         
Total operating expenses
    5,531       5,132       21,691  
                         
Operating income
    1,675       2,798       8,177  
                         
Financial expenses, net
    109       16       387  
                         
Income before taxes on income
    1,566       2,782       7,790  
                         
Income taxes
    347       696       1,741  
                         
Net income
  $ 1,219     $ 2,086     $ 6,049  
                         
Net Profit (loss) attributable to non-controlling interest
    (14 )     (72 )     (95 )
                         
Net income attributable to shareholders
  $ 1,233     $ 2,158     $ 6,144  
Earnings per ordinary share attributable to shareholders
                       
                         
Basic earnings per share
    0.07       0.12       0.35  
Diluted earnings per share
    0.07       0.12       0.35  
                         
Weighted average number of shares used to compute:
                       
                         
Basic earnings per share
    17,392,072       17,346,561       17,365,608  
Diluted earnings per share
    17,657,516       17,645,977       17,671,975  
 
 
 

 

 
RR Media Ltd.
 
Interim Condensed Consolidated Balance Sheets


In thousands

   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Current assets
                 
Cash and cash equivalents
  $ 10,517     $ 15,004     $ 13,001  
 Marketable securities and short term investments
    9,015       9,416       8,970  
Trade receivable,(net of provision for doubtful accounts
                       
Of $5,173, $6,785 and $6,423 as of March 31, 2015, 2014 and December 31, 2014, respectively)
    24,689       24,103       23,457  
Other receivable
    2,365       2,919       2,343  
Deferred taxes
    2,006       2,170       2,038  
Prepaid expenses
    2,730       2,772       2,839  
                         
Total current assets
    51,322       56,384       52,648  
                         
Long-term assets
                       
Long-term prepaid expenses
    2,489       2,490       3,156  
Long-term land lease prepaid expenses
    7,358       7,398       7,380  
Assets held for employee severance payments
    1,671       2,150       1,892  
Fixed assets, net
    46,442       45,794       45,669  
Goodwill
    10,953       11,277       11,286  
Intangible assets, at cost, less accumulated amortization
    5,143       6,003       5,528  
                         
Total long-term assets
    74,056       75,112       74,911  
                         
Total assets
  $   125,378     $ 131,496     $ 127,559  

 
 

 


RR Media Ltd.
 
Interim Condensed Consolidated Balance Sheets (cont’d)


In thousands, except share data

   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Liabilities and shareholders’ equity
                 
                   
Current liabilities
                 
Account payable:
                 
 Trade
  $ 15,938     $ 17,956     $ 18,414  
 Other
    5,066       6,016       5,482  
Deferred income
    6,463       8,090       4,867  
                         
Total current liabilities
    27,467       32,062       28,763  
                         
Long-term liabilities
                       
Deferred income
    7,846       8,051       7,714  
Liability in respect of employee severance payments and others
    2,291       2,327       2,993  
Contingent consideration in respect of acquisition
    3,550       3,930       3,550  
Deferred taxes
    3,769       4,346       3,702  
                         
Total long-term liabilities
    17,456       18,654       17,959  
                         
Total liabilities
    44,923       50,716       46,722  
                         
Shareholders’ equity
                       
Share capital
                       
Ordinary share NIS 0.01 par value each (27,000,000  authorized as of
March 31, 2015, December 31, 2014 and March 31, 2014,
                       
17,392,072 shares issued and fully paid as of  March 31, 2015,
17,365,608 shares issued and fully paid as of December 31, 2014
and 17,346,561 shares issued and fully paid as of March 31, 2014)
    40       40       40  
Treasury Stock
    (146 )     -       (146 )
Additional paid in capital
    54,747       54,042       54,572  
Retained earnings
    27,109       26,478       27,400  
Accumulated other comprehensive gain
    (1,186 )     292       (934 )
Total shareholders’ equity
  $ 80,564     $ 80,852     $ 80,932  
                         
Non-controlling interest
    (109 )     (72 )     (95 )
                         
Total equity
  $ 80,455     $ 80,780     $ 80,837  
                         
Total liabilities and equity
  $ 125,378     $ 131,496     $ 127,559  

 
 

 
 
RR Media Ltd.
 
Interim Condensed Consolidated Statements of Cash Flows

 
In thousands
 
   
Three months ended
   
Year ended
 
   
March 31
   
March 31
   
December 31
 
   
2015
   
2014
   
2014
 
   
(unaudited)
   
(unaudited)
   
(audited)
 
Net income
  $ 912     $ 1,724     $ 5,055  
                         
Adjustments required to reconcile net income to net cash provided by operating activities
    3,404       2,275       11,449  
Changes in assets and liabilities
    (2,289 )     (2,005 )     (6,011 )
                         
Net cash provided by operating activities
    2,027       1,994       10,493  
                         
Investment in fixed assets
    (2,909 )     (1,161 )     (8,389 )
                         
Other investing activities
    62       -       1,261  
Cash flows from investing activities
    (2,847 )     (1,161 )     (7,128 )
                         
Purchase of treasury stock
    -       -       (146 )
Dividends Paid
    (1,217 )     -       (3,473 )
Cash flows from financing activities
    (1,217 )     -       (3,619 )
                         
Translation adjustment on cash and cash equivalents
    (447 )     6       (910 )
                         
Increase (decrease) in cash and cash Equivalents
    (2,484 )     839       (1,164 )
                         
Balance of cash and cash equivalents at beginning of period
    13,001       14,165       14,165  
                         
Balance of cash and cash equivalents at end of period
    10,517       15,004       13,001  



 
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