Rentrak Reports Fiscal 2009 Third Quarter Financial Results
TV Essentials™ Now Tracking Anonymous Linear Data from 9 Million Set Top Boxes
Cross-Platform Media Measurement Gaining Significant Traction
PORTLAND, Ore., Feb 3, 2009 --
Rentrak Corp. (NASDAQ: RENT) today announced financial results for its fiscal third quarter ended December 31, 2008.Consolidated revenues were $23.0 million in the third quarter of fiscal 2009, compared with $23.9 million in the comparable prior year period.
- Revenues in the company's Advanced Media Information (AMI) segment rose 20.1 percent to $3.2 million from $2.7 million for the third quarter of fiscal 2008. The increase primarily reflects incremental revenues generated from new and existing customers of the company's Essentials Suite™ of media measurement services. The AMI segment grew to approximately 14 percent of consolidated revenues and contributed approximately 33 percent of consolidated gross margin dollars in the third quarter of fiscal 2009.
- Revenues in the company's Pay-Per-Transaction® (PPT) segment were $19.7 million, compared with $21.2 million in last year's comparable quarter, primarily the result of fewer rental transactions on non-guaranteed titles.
Selling and administrative expenses were $6.7 million, or 29.4 percent of revenues, in the third quarter of fiscal 2009, compared with $6.3 million, or 26.5 percent of revenues, for last year's fiscal third quarter. The increase primarily reflects Rentrak's continued focus on the development and launch of its TV Essentials™ service. Operating income was $475,000 for the third quarter of fiscal 2009, versus $619,000 in the same period last year.
Net income totaled $1.2 million, or $0.11 per diluted share, for the third quarter of fiscal 2009, including a tax benefit of $375,000 related to available federal Research and Experimentation credits, earnings on investments in tax exempt municipal bonds and favorable 2008 tax return adjustments. Net income was $547,000, or $0.05 per diluted share, for the third quarter of fiscal 2008.
Rentrak's cash, cash equivalents and marketable securities balance grew to $34.3 million at December 31, 2008, from $31.8 million at March 31, 2008. Through the first nine months of fiscal 2009, the company generated $6.1 million in cash from operating activities, compared with $3.1 million in cash from operating activities in the prior-year nine month period.
Recent Operating Highlights
- Rentrak signed a milestone agreement with DISH Network®, the nation's third largest network operator and Rentrak's first satellite operator customer, and the leader in digital television, to deliver anonymous click-stream television data from millions of DISH set top boxes, including second-by-second television programming and advertising information;
- Rentrak entered into a multi-year agreement to provide NBC Universal (NBCU) with the ability to view and analyze anonymous mobile data for the consumption of video and other downloads, text messaging, games, and more, in one comprehensive application through the first of its kind Mobile Essentials™ measurement service;
- Furthering its commitment to providing best-in-class, cross-platform media measurement services, Rentrak expects to commercially launch its Digital Download Essentials™ service, which collects, processes, audits and reports on paid entertainment content delivered over the Internet, in the very near future.
“Our third quarter results remained stable, although we were not immune to the challenges presented by a difficult economic environment,” said Rentrak Chairman and Chief Executive Officer, Paul Rosenbaum. “Given the current economy, we are more focused than ever on stringent cost management and are taking care to insure we are running our business as efficiently possible. These initiatives, combined with our healthy balance sheet, should allow for maximum flexibility and should position Rentrak for successful long-term growth and prosperity.”
Rosenbaum continued, “Over the last several months we have produced several important new and expanded relationships, including for our pioneering TV Essentials service. Just 18 months ago we began by processing anonymous linear data from 20,000 set top boxes. Today, we are tracking four hundred fifty times that amount of data from 9 million linear set top boxes. Content providers, networks, advertisers and advertising agencies are requiring the type of granular data that only Rentrak can provide and by effectively meeting the needs of a rapidly evolving industry, we are poised to become the world's most trusted independent provider of cross-screen media measurement.”
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Conference Call
Rentrak has scheduled a conference call for 2:00 p.m. (PT) February 3, 2009 to discuss the company's third quarter financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 866-383-7998 from the U.S. or Canada, or 617-597-5329 from international locations, passcode 68767292. This call is being webcast and can be accessed at Rentrak's web site at www.rentrak.com where it will be archived through February 3, 2010. An audio replay of the conference call is available through midnight February 10, 2009 by dialing 888-286-8010 from the U.S. or Canada, or 617-801-6888 from international locations, passcode 59281727.
About Rentrak Corporation (Nasdaq: RENT)
Rentrak Corporation is an industry-advancing media measurement and research company, serving the most recognizable names in the entertainment industry. Reaching across numerous platforms including box office, home entertainment, on-demand and linear television, broadband and mobile, Rentrak provides unique and actionable insight for our clients and partners. From the introduction of our revolutionary Pay-Per-Transaction® distribution and revenue-sharing system, which equipped Rentrak with the intelligence and ability to deal with large, complex data streams, to the company's exclusive Essentials™ suite of services, Rentrak has redefined digital audience measurement. Rentrak is headquartered in Portland, Oregon, with additional offices in Los Angeles, New York City and Miami/ Ft. Lauderdale. For more information on any of Rentrak's services, please visit www.rentrak.com.
Safe Harbor Statement
When used in this discussion, the words “anticipates,” “expects,” “intends” and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the company's ability to successfully manage expenses and run its business as efficiently as possible; the ability to successfully grow revenues, effectively manage costs, steadily generate cash and maintain strong and flexible balance sheet; the ability for Rentrak to create new and valuable products and services that best serve the company's customers and industry; the company's ability to monetize and reach the full potential of its development activities; and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect Rentrak's financial results include customer demand for movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers and retain existing customers, the company's success in maintaining its relationships with studios and other product suppliers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's customers continuing to comply with the terms of their agreements. Additional factors that could affect Rentrak's financial results are described in Rentrak's March 31, 2008 annual report on Form 10-K and subsequent quarterly reports filed with the Securities and Exchange Commission. Results of operations in any past period should not be considered indicative of the results to be expected for future periods.
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