SFX Entertainment, Inc. Reports Unaudited Earnings Results for the Third Quarter and Nine Months Ended September 30, 2015
Nov 9 15
SFX Entertainment, Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2015. For the quarter, the company reported revenue of USD 133.232 million compared to USD 143.552 million a year ago. Operating loss was USD 41.505 million compared to USD 20.852 million a year ago. Loss before income taxes was USD 54.326 million compared to USD 9.982 million a year ago. Net loss was USD 54.242 million compared to net income of USD 5.078 million a year ago. Net loss attributable to the company was USD 54.471 million compared to net income attributable to the company of USD 4.936 million a year ago. LBITDA was USD 12.359 million compared to EBITDA of USD 1.618 million a year ago.
For the nine months, the company reported revenue of USD 306.473 million compared to USD 258.500 million a year ago. Operating loss was USD 99.195 million compared to USD 84.608 million a year ago. Loss before income taxes was USD 143.771 million compared to USD 94.887 million a year ago. Net loss was USD 143.724 million compared to USD 86.117 million a year ago. Net loss attributable to the company was USD 144.040 million compared to USD 86.371 million a year ago. LBITDA was USD 41.913 million compared to USD 27.624 million a year ago.
SFX Entertainment, Inc. Not In Compliance With NASDAQ Listing Requirements
Nov 5 15
On October 30, 2015, SFX Entertainment, Inc. received a letter from the Listing Qualifications Department of The Nasdaq Stock Market (NASDAQ) notifying the company that the Staff has determined that the company violated the shareholder approval requirements of Listing Rules 5635(c) and 5635(d)(2). Listing Rule 5635(c) requires shareholder approval prior to the issuance of securities when a stock option or purchase plan is to be established or materially amended or other equity compensation arrangement made or materially amended, pursuant to which stock may be acquired by officers, directors, employees or consultants. Listing Rule 5635(d)(2) requires shareholder approval prior to the sale, issuance or potential issuance by the company of common stock (or securities convertible into common stock) equal to 20% or more of the common stock or 20% or more of the voting power outstanding before the issuance for less than the greater of book or market value of the stock. On September 17, 2015, the company issued shares of Series A preferred stock to an affiliate of Robert F. X. Sillerman, the company’s Chairman and Chief Executive Officer. The Staff concluded that because dividends on the Series A Shares may be paid in shares of common stock to Mr. Sillerman at a price determined in the future, this transaction constitutes a form of equity compensation arrangement requiring shareholder approval under Listing Rule 5635(c) prior to the issuance of the Series A Shares. Also on September 17, 2015, the company issued shares of Series B convertible preferred stock to certain investors. The Staff concluded that because the terms of the Certificate of Designation of Series B Convertible Preferred Stock of the company provide for the conversion price of the Series B Shares to be reduced in the event of certain future issuances, but sets no limit on such reduction, the number of shares of common stock issuable as a result of conversions could result in the issuance of the maximum number of shares of common stock issuable pursuant to the terms of the Series B Certificate. The Staff also concluded that because the presence of an anti-dilution provision could cause the conversion price to be reduced to below the market value immediately before entering into a binding agreement, this could result in a transaction occurring at a discounted issuance. Finally, because the number of shares of common stock issuable as dividends on the Series A Shares and upon conversion of Series B Shares could, in the aggregate, result in the issuance of shares of common stock in excess of 19.99% of the shares of common stock outstanding prior to these transactions, the Staff concluded that the company was required to obtain shareholder approval prior to the issuance of the Series A Shares and Series B Shares. The Letter has no current effect on the listing of the company’s common stock. The company has 45 days from the date of the Letter to submit a plan to regain compliance with NASDAQ listing requirements to NASDAQ. If the plan is accepted, NASDAQ can grant an extension of up to 180 calendar days from the date of the Letter to evidence compliance. The company intends to regain compliance in the short-term, and is working with the preferred shareholders to develop a plan to regain compliance to be submitted to NASDAQ promptly.
SFX Entertainment Receives Takeover Interest
Oct 22 15
The Special Committee of the board of SFX Entertainment, Inc. (NasdaqGS:SFXE) announced that it has received preliminary indications of interests from parties interested in acquiring the company, including a preliminary bid from Robert F.X. Sillerman, the company's Chairman and Chief Executive Officer. The committee is not disclosing the terms contained in these preliminary indications of interest at this time.