Rentrak Reports Fiscal 2008 Fourth Quarter and Year-End Financial Results
Linear TV Measurement Trials Surpass 2 Million Set Top Boxes
PORTLAND, Ore., Jun 10, 2008 --
Rentrak Corp. (NASDAQ: RENT) today announced financial results for the fiscalfourth quarter and full year ended March 31, 2008.
Fiscal 2008 Fourth Quarter Results
Consolidated revenues totaled $22.3 million in the fourth quarter of fiscal 2008, compared with $28.1 million in the year-ago period.
- Revenues in the company's Advanced Media Information (AMI) segment grew 29.0 percent to $2.8 million from $2.2 million in the fourth quarter of fiscal 2007 and increased five percent from $2.7 million in the third quarter of fiscal 2008. The increases primarily reflect incremental revenues generated from new and existing customers of the company's Essentials Suite™ of media measurement services. The AMI segment represented approximately 13 percent of consolidated revenues and contributed approximately 28 percent of consolidated gross margin dollars in the fourth quarter of fiscal 2008.
- Revenues in the company's Pay-Per-Transaction® (PPT) segment totaled $19.5 million, compared with $25.9 million in last year's comparable quarter and $21.2 million in the third quarter of fiscal 2008. The declines primarily reflect lower volumes of units shipped and fewer rental transactions during the quarter, in part as the result of the previously announced loss of the company's former fifth and sixth largest product suppliers.
Selling and administrative expenses totaled $6.6 million, or 29.8 percent of revenues, in the fourth quarter of fiscal 2008, compared with $6.9 million, or 24.7 percent of revenues, during last year's fiscal fourth quarter. Operating income was $1.6 million in the fourth quarter of fiscal 2008, versus $2.3 million in the same period last year.
Net income was $1.7 million, or $0.15 per diluted share in the fourth quarter of fiscal 2008, compared with $1.6 million, or $0.14 per diluted share, in last year's comparable period. Fiscal 2008 fourth quarter net income included favorable tax adjustments of approximately $560,000, or $0.05 per diluted share, primarily the result of cumulative tax research and experimentation credits available to Rentrak, related mostly to internally developed software for the company's Essentials multimedia measurement services.
Fiscal 2008 Full-Year ResultsConsolidated revenues totaled $93.2 million in fiscal 2008, compared with $105.7 million last year.
- AMI segment revenues grew 32.7 percent to $10.4 million in fiscal 2008, from $7.8 million in fiscal 2007.
- PPT segment revenues were $82.8 million in fiscal 2008, compared with $97.9 million in fiscal 2007, in part as the result of the previously announced loss of the company's former fifth and sixth largest product suppliers during fiscal 2007.
Selling and administrative expenses totaled $25.7 million, or 27.6% of revenues, compared with $25.2 million, or 23.8% of revenues, in fiscal 2007. The increase in selling and administrative expenses is primarily due to continued, planned investments in the development of Rentrak's Essentials Suite of media measurement services. Operating income was $5.6 million in fiscal 2008, compared with $8.3 million in fiscal 2007.
Net income was $4.6 million, or $0.41 per diluted share, in fiscal 2008, compared with $5.9 million, or $0.53 per diluted share, in fiscal 2007.
Rentrak had cash, cash equivalents and marketable securities of $31.8 million at March 31, 2008, compared with $33.5 million at March 31, 2007. The company generated $3.1 million in cash from operating activities in fiscal 2008 versus $5.9 million in fiscal 2007.
“Our fiscal 2008 financial results were in line with our expectations,” said Rentrak Chairman and Chief Executive Officer, Paul Rosenbaum. “We generated the cash flows necessary to strategically invest in future growth opportunities, continued operating our businesses in an efficient manner and completed the year in a very strong financial position.”
Recent Operating Highlights- AMI division continued substantial growth trend;
- Inked multi-year video on demand (VOD) measurement agreement with Cox Communications, the third-largest cable television company in the United States;
- Expanded VOD capabilities outside the U.S. with the addition of Rogers Cable in Canada;
- Now providing aggregated, census-level on demand television data for all of the major MSOs in the cable industry;
- Amassed 100 percent on demand measurement market penetration, processing data representing 54 million set-top boxes from 28 MSOs and used by more than 100 content provider partners every day to help them make advertising and programming decisions critical to their businesses;
- On track for commercial launch of linear TV measurement product, TV Essentials™, in the first quarter of calendar 2009;
- Linear TV measurement trials surpass 2 million set top boxes;
- Identifying additional revenue streams through the development of video measurement applications for broadband and mobile; and
- Well positioned to provide independent third party measurement system for dynamic advertising through Ad Essentials product.
“We remain confident in Rentrak's ability to meet the evolving needs of the entertainment industry and are well positioned to drive increasing value to all of our stakeholders through continued innovation, hard work and determination,” concluded Rosenbaum.
Conference Call
Rentrak has scheduled a conference call for 2:00 p.m. (PDT) June 10, 2008 to discuss the company's fourth quarter and full year financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 866-271-0675 from the U.S. or Canada, or 617-213-8892 from international locations, passcode 94846109. This call is being webcast and can be accessed at Rentrak's web site at www.rentrak.com where it will be archived through June 10, 2009. An audio replay of the conference call is available through midnight June 17 by dialing 888-286-8010 from the U.S. or Canada, or 617-801-6888 from international locations, passcode 68731859.
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.
