PLAINVIEW, NY — (Marketwire) — 03/08/13 — NeuLion, Inc. (TSX: NLN), a leading enabler and provider of live and on-demand content to Internet-connected devices, today announced financial results for the three months and year ended December 31, 2012 (all amounts are in U.S. dollars).
Non-GAAP Adjusted EBITDA (as defined below) was $0.8 million, an improvement of $1.7 million, as compared to the same period a year ago, and Consolidated Net Loss improved by $2.0 million, or 69%, as compared to the same period a year ago.
Cost of revenue, exclusive of depreciation and amortization, as a percentage of total revenue, improved to 31% in the fourth quarter of 2012, as compared to 42% in the fourth quarter of 2011.
Revenue was $10.5 million in the fourth quarter of 2012, as compared to $10.7 million in the fourth quarter of 2011, a decrease of $0.2 million, or 2%.
Non-GAAP Adjusted EBITDA (as defined below) was $(3.3) million, an improvement of $3.6 million, or 52%, as compared to the same period a year ago, and Consolidated Net Loss improved by $4.3 million, or 30%, as compared to the same period a year ago.
Cost of revenue, exclusive of depreciation and amortization, as a percentage of total revenue, improved to 35% in fiscal 2012, as compared to 41% in fiscal 2011.
Revenue was $39.0 million in fiscal 2012, as compared to $39.7 million in fiscal 2011, a decrease of $0.7 million, or 2%.
“Management is extremely pleased with the positive results in the fourth quarter. The Company-s substantial improvement in quarter-over-quarter Non-GAAP Adjusted EBITDA was a result of our continued emphasis on closely monitoring costs and de-emphasizing non-core business initiatives,” said Nancy Li, Chief Executive Officer of the Company. “We continue to build on our unique strengths in the new and evolving IPTV marketplace. Our customers- recognition of NeuLion-s technological leadership in this rapidly expanding field has put NeuLion at the forefront of online video delivery. We fully expect our customers- requirements, and NeuLion-s role, to continue to grow as the adoption of TV over the Internet accelerates.”
Interactive video experience delivering live and on-demand video
Delivered live and on-demand streaming of select games throughout the 2013 International Ice Hockey Federation World Junior Championship Tournament from Russia.
Partnered with the Barclays Center to live stream the Brooklyn Hoops Holiday Invitational; the first ever live video of a sporting event at Barclays.
Launched the Portland Trailblazers live streaming experience for fans to watch all game broadcasts.
Extended partnership with the Professional Bowlers Association for additional multi-year terms to power PBA Xtra Frames.
The American Hockey League implemented NeuLion-s Video Replay System into their officiating process for the start of the 2012-2013 season to allow referees to review goals during live games.
Athletic portal and online destination for fans
Launched newly designed Official Athletics website for the Oregon Ducks, goducks.com, bringing video to the forefront.
Designed brand new CAA Gameday, a one stop digital destination for schedules, scores, videos, live stats and more across every school in the Colonial Athletic Association.
Partnered with Horizon Media to deliver Capital One-s 2013 Mascot Challenge Campaign across NeuLion NCAA sites.
Addressed the Sports Business Journal Intercollegiate Athletics Forum audience on the topic of maximizing revenue through intellectual property.
Multi-device content delivery
Partnered with the WWE to deliver the Rolling Stones 50th Anniversary Concert on multiple devices worldwide.
Launched UVideos with Univision Communications, a bilingual digital network for Hispanic America offering one of the most fully integrated, comprehensive social experiences available in any language in the U.S.
Partnered with Shaw Communications to deliver Shaw Go NFL Sunday Ticket on iPad.
Powered an enhanced V.2 release of BTN2Go with more HD video, live stats, dynamic ad insertion and social media integration on multiple devices.
Revenue was $10.5 million, as compared to $10.7 million for the three months ended December 31, 2011, a decrease of $0.2 million, or 2%.
Cost of revenue, exclusive of depreciation and amortization, was $3.2 million (31% of revenue), as compared to $4.5 million (42% of revenue) for the three months ended December 31, 2011, marking a period-over-period improvement of 11%.
Consolidated net loss was $0.9 million, which includes $1.7 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $0.8 million, as compared to a consolidated net loss of $2.9 million, which includes $2.0 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(0.9) million for the three months ended December 31, 2011, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $1.7 million.
Revenue was $39.0 million, as compared to $39.7 million for the year ended December 31, 2011, a decrease of $0.7 million, or 2%.
Cost of revenue, exclusive of depreciation and amortization, was $13.7 million (35% of revenue), as compared to $16.4 million (41% of revenue) for the year ended December 31, 2011, marking a year-over-year improvement of 6%.
Consolidated net loss was $10.1 million, which includes $6.8 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(3.3) million, as compared to a consolidated net loss of $14.4 million, which includes $7.5 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(6.9) million for the year ended December 31, 2011, marking a year-over-year improvement in Non-GAAP Adjusted EBITDA of $3.6 million, or 52%.
As of December 31, 2012, we had $11.1 million in cash and cash equivalents.
We report Non-GAAP Adjusted EBITDA because it is a key measure used by management to evaluate our results and make strategic decisions about our Company, including potential acquisitions. Non-GAAP Adjusted EBITDA represents consolidated net loss before interest, income taxes, depreciation and amortization, stock-based compensation, investment income, loss on dissolution of majority-owned subsidiary and foreign exchange gain/loss. This measure does not have any standardized meaning prescribed by U.S. generally accepted accounting principles (U.S. GAAP) and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.
The below table reconciles our Non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure, consolidated net loss:
NeuLion, Inc. (TSX: NLN) offers the true end-to-end solution for delivering live and on-demand content to Internet-enabled devices. NeuLion enables content owners and distributors, cable operators and telecommunications companies to capitalize on the massive consumer demand for viewing video content on PCs, smartphones, iPads and other similar devices. NeuLion-s customers include major entertainment, sports, global content and news companies. NeuLion is based in Plainview, NY. For more information about NeuLion, visit .
Certain statements herein are forward-looking statements and represent NeuLion-s current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,””should,” “could,” or “might” occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion-s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers- subscriber levels and financial health; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the “Risk Factors” section of NeuLion-s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which is available on and filed on .
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