rlj entertainment inc (RLJE) Key Developments
RLJ Entertainment Names Traci Otey Blunt as Executive Vice President of Marketing and Corporate Affairs
Nov 10 14
Traci Otey Blunt, a 1990 cum laude graduate of Tennessee State University, has been named executive vice president of marketing and corporate affairs at RLJ Entertainment Inc. In her new role, Blunt will oversee the company's marketing, public relations and investor relations, as well as the promotion of the newly launched RLJE Urban Movie Channel, a digital channel that will feature urban-themed movies showcasing drama, documentaries, comedies, horror and stage plays. For the last six years, Traci served as senior vice president of corporate communications and public affairs at The RLJ Companies, the holding company of RLJ Entertainment. Prior to joining RLJ Companies, the veteran media, political, and public affairs specialist served as a deputy communications director to former Secretary of State Hillary Clinton during the 2008 presidential campaign.
RLJ Entertainment, Inc. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014
Nov 7 14
RLJ Entertainment, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company's revenues were $37.1 million compared with $32.7 million a year ago. The increase was driven by increased revenue related to the release of the current season of the Foyle's War franchise, offset by a decrease in revenue in the Wholesale segment. Loss from operations was $2.45 million compared with $4.35 million a year ago. Loss before provision for income taxes was $7.96 million compared with $7.84 million a year ago. Net loss was $7.8 million or $0.62 per basic and diluted share compared with $8.51 million or $0.68 per basic and diluted share a year ago. Adjusted EBITDA was $6.6 million compared with $3.7 million a year ago. The increase is primarily driven by a decline in the net operating loss as a result of improved operational activities consisting of increased revenue and gross margin, partly due to the release of the current season of Foyle's War, and reduced operating expenses.
For the nine months, the company's revenues were $99.5 million compared with $107.3 million a year ago. The decrease in revenue was primarily due to a decrease in the company's Wholesale revenue of $9.0 million which is primarily from the terminated output deal. Loss from operations was $11.3 million compared with $20.5 million a year ago. Loss before provision for income taxes was $19.6 million compared with $27.3 million a year ago. Net loss was $20.1 million or $1.61 per basic and diluted share compared with $29.0 million or $2.33 per basic and diluted share a year ago. Adjusted EBITDA was $2.9 million compared with $1.2 million a year ago. The increase was primarily due to its improved gross margin and lower SG&A costs.
RLJ Entertainment, Inc. Announces Launch of UMC - Urban Movie Channel
Nov 5 14
RLJ Entertainment, Inc. announced the launch of UMC - Urban Movie Channel, RLJE's proprietary digital channel. UMC will feature urban-themed movies as an alternative to conventional subscription-based channels by showcasing the best drama, documentaries, comedies, horror, and stage plays. Programs previously released by RLJE under the One Village brand will be incorporated into UMC's library, which will also include titles from RLJE's existing Image independent feature film line. UMC will launch with a free trial period for subscribers through February 4, 2015 and with a suggested retail price of $4.99/month or $49.99/year thereafter, but with a special limited time introductory pricing of $2.99/month or $29.99/year to start. Among the titles launching are live stand-up performances featuring Kevin Hart, Jamie Foxx, and Charlie Murphy; documentaries Dark Girls and I Ain't Scared of You: A Tribute to Bernie Mac; the feature films All Things Fall Apart starring 50 Cent, Mario Van Peebles, and Ray Liotta; and The Suspect starring Mekhi Phifer. Bestsellers include the stage play production of What My Husband Doesn't Know by David E. Talbert.
RLJ Entertainment, Inc. Refinances Debt
Sep 11 14
RLJ Entertainment, Inc. announced that it has entered into a new $70 million, five year credit facility with a syndicate of lenders led by McLarty Capital Partners, as lead administrative agent. RLJ Entertainment used the proceeds from its new credit facility to pay off the outstanding borrowings under its previous credit facility totaling $56.1 million and the balance less closing fees for incremental working capital. The company's new credit facility reduces future debt service by approximately $11.2 million compared to the remaining three year term of the previous facility with the majority of the benefit in the next year and a half. The company anticipates utilizing the projected increased cash flow to increase its investment in content and expand its proprietary digital subscription video-on-demand (SVOD) channels. On September 11, 2014, RLJ Entertainment, Inc. and the majority of its subsidiaries entered into a syndicated Credit and Guaranty Agreement with certain lenders, McLarty Capital Partners SBIC, L.P. (McLarty), as Administrative Agent. The syndicate loan includes five lenders. The Credit Facility includes a term loan totaling $70 million with a final maturity of five years, at an interest rate equal to (a) LIBOR plus 10.64% for so long as the unpaid principal amount of the Credit Facility is greater than $65 million and (b) LIBOR plus 9.9% thereafter. The quarterly principal amortization is 3.5% year 1-2, 5% year three and 7.5% for remaining term with any unpaid balance due at maturity. The obligations under the Credit Facility are secured by a lien on substantially all of the assets of the Credit Parties, pursuant to the Pledge and Security Agreement, dated as of September 11, 2014, by and among the company, the participating subsidiaries and McLarty, as Collateral Agent. The initial debt service begins on December 31, 2014. The Credit Facility contains representations, financial and other affirmative and negative covenants, events of default and remedies typical for this type of facility. The facility is subject to compliance with a number of financial covenants, affirmative covenants and other restrictions on an ongoing basis.
RLJ Entertainment Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014
Aug 13 14
RLJ Entertainment Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. Revenue for the three months ended June 30, 2014 was $32.1 million, a decrease of $2.2 million compared to the three months ended June 30, 2013 revenue of $34.286 million. The decrease in revenue for the second quarter of 2014 was primarily driven by a $3.5 million decline in revenue in the Company's Wholesale segment. This decline is attributed to the terminated feature film output deal, which occurred in the third quarter of 2013 and whose sell-off period ended on March 31, 2014. Net loss for the three months ended June 30, 2014 and 2013, was $2.3 million and $16.9 million, respectively. The improvement in earnings in 2014 is mostly attributable to improved gross margins, which were impacted by increased impairment charges taken in 2013, and management's implementation of a required projected return on investments in content of 20%. Adjusted EBITDA was $3.034 million against $6.274 million a year ago. The improvement in the three-month period ended June 30, 2014 versus 2013 is primarily driven by a decline in the net operating loss as a result of improved operational activity and gross margin, a decline in amortization of content as result of less impairment charges, and the effects of certain aforementioned charges recognized in 2013. Loss from operations was $2.463 million against $15.546 million a year ago. Loss before provision for income taxes was $1.898 million against $16.359 million a year ago.
For the six months ended June 30, 2014 revenue decreased $12.2 million compared to the six months ended June 30, 2013. The decrease in revenue was primarily driven by (1) the timing of release of its Foyle's War franchise series between 2013 and 2014 and (2) the impact of the terminated feature film output deal. Net loss for the six months ended June 30, 2014 and 2013, was $12.3 million and $20.5 million, respectively. The improvement in earnings in 2014 is mostly attributable to improved gross margins, which were impacted by increased impairment charges taken in 2013, and management's implementation of a required projected return on investments in content of 20%. Loss from operations was $8.854 million against $16.124 million a year ago. Loss before provision for income taxes was $11.661 million against $19.491 million a year ago. Adjusted EBITDA was $3.688 million against $2.538 million a year ago.