LAS VEGAS, March 30, 2017 /PRNewswire/ — Remark Media, Inc. (NASDAQ: MARK), a global digital media technology company, reported its financial results for the fourth quarter and full year 2016.

“Our fourth quarter performance provides a strong close to a very successful year for us,” said Kai-Shing Tao, Remark Media’s Chairman and CEO.  “We achieved several developmental and commercialization milestones related to our KanKan Data Intelligence Platform, including our expansion of KanKan from a social media network into a business-to-business solution and the introduction of new products. We are partnering with companies such as Alibaba Cloud and TenCent to deploy enterprise and precision marketing solutions that leverage our unprecedented data set.  In fact, our KanKan Open Artificial Intelligence Platform recently received the “best break-through technology” award from Alibaba.  Out of 400 companies invited to participate, KanKan was ranked the number one start-up affiliated with the Alibaba eco-system. In addition, we are introducing proprietary products – such as KanKan Social Credit Service – that utilize the KanKan Data Intelligence Platform to address unmet needs in the China marketplace.

“Our Vegas.com business is also performing well, highlighting the operational improvements we have made since the acquisition in 2015. In fact, in 18 months’ time, we have successfully turned around a business with no growth into a business with projected double-digit EBITDA growth on an annual basis. We continue to enhance the technologies and website features that reinforce Vegas.com’s position as the official website for Las Vegas entertainment.  In fact, of the top 20 show ticket sales days in Vegas.com history, 18 have occurred since Christmas Day of 2016, and all 20 have occurred since we acquired Vegas.com in September 2015.

“In addition, our acquisition of FansTang during the third quarter of 2016 provided us with a comprehensive digital media content platform and a prominent portfolio of partnerships with leading brands around the world.  We believe we have established a formidable set of synergistic assets, each of which presents significant monetization opportunities in the months and years ahead.  We are excited about our ability to accelerate our growth in 2017.”

Financial Results for the Three Months Ended December 31st:  2016 Compared to 2015
The company’s fourth quarter 2016 results reflect the acquisition of FansTang, which occurred in September 2016, whereas the prior year financials do not.

  • Net revenue was $15.0 million, compared to $11.8 million.
  • Total cost and expense was $23.5 million, compared to $19.0 million.
  • Operating loss was $8.6 million, compared to $7.2 million.
  • Net loss was $8.6 million, or $0.40 per diluted share, compared to $14.1 million, or $0.72 per diluted share.
  • At December 31, 2016, the cash and cash equivalents balance was $6.9 million, and total restricted cash was $11.7 million, bringing the total combined cash position to $18.5 million.

Financial Results for the Year Ended December 31st:  2016 Compared to 2015
The financial results for the full year 2016 period reflect the operating results of Vegas.com, which was acquired in September 2015.

  • Net revenue was $59.3 million, compared to $14.2 million.
  • Total cost and expense was $80.8 million, compared to $36.8 million.
  • Operating loss was $21.4 million, compared to $22.6 million.
  • Net loss was $31.7 million, or $1.54 per diluted share, and included a loss on extinguishment of debt of $9.2 million. This compared to $31.4 million, or $2.06 per diluted share for the year ended December 31, 2015.

Conference Call Information
Remark Media’s management team will hold a conference call today at 4:30 p.m. ET / 1:30 p.m. PT to discuss its fourth quarter and full year 2016 earnings results, review recent activity and answer questions. To access the call in the U.S. please dial 1-877-440-5787 and for international calls dial 1-719-325-2145 approximately 10 minutes prior to the start of the conference. The conference ID is 9327076. The conference call will also be broadcast live over the Internet and available for replay for one year at www.remarkmedia.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, U.S. callers may dial 1-844-512-2921, and international callers may dial 1-412-317-6671. Enter access code 9327076.

About Remark Media, Inc.
Remark Media, Inc. (NASDAQ: MARK) owns, operates and acquires innovative digital media properties across multiple verticals that deliver culturally relevant, dynamic content that attracts and engages users on a global scale.  The company leverages its unique digital media assets to target the Millennial demographic, which provides it with access to fast-growing, lucrative markets.  The company is headquartered in Las Vegas, Nevada, with additional operations in Los Angeles, California and in Beijing, Shanghai, Chengdu and Hangzhou, China.  For more information, please visit the company’s website at www.remarkmedia.com.

Forward-Looking Statements
This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” and similar expressions, as well as statements in future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Media’s Annual Report on Form 10-K and Remark Media’s other filings with the SEC. Any forward-looking statements reflect Remark Media’s current views with respect to future events, are based on assumptions and are subject to risks and uncertainties.  Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Media’s estimates and assumptions only as of the date hereof.  Except as required by law, Remark Media undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.

Investor Contact:
Douglas Osro
Remark Media, Inc.
dosrow@remarkmedia.com
702-701-9514 ext. 3025

Investor Relations Contact:
Becky Herrick/ Kirsten Chapman
LHA Investor Relations
remarkmedia@lhai.com
415-433-3777

[Tables to follow]

 

REMARK MEDIA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2016

December 31,

2016

2015

Assets

Cash and cash equivalents

$

6,893

$

5,422

Restricted cash

9,405

9,416

Trade accounts receivable, net

1,372

746

Prepaid expense and other current assets

3,323

2,637

Notes receivable, current

181

172

Total current assets

21,174

18,393

Restricted cash

2,250

2,250

Notes receivable

190

371

Property and equipment, net

15,531

17,338

Investment in unconsolidated affiliate

1,030

1,030

Intangibles, net

37,406

34,867

Goodwill

26,763

20,337

Other long-term assets

1,355

Total assets

$

105,699

$

94,586

Liabilities and Stockholders’ Equity

Accounts payable

$

16,546

$

14,422

Accrued expense and other current liabilities

14,967

11,827

Deferred merchant booking

6,991

6,997

Deferred revenue

4,072

3,262

Current maturities of long-term debt

100

100

Capital lease obligations

179

205

Total current liabilities

42,855

36,813

Long-term debt, less current portion and net of unamortized discount and debt issuance cost

37,825

23,616

Warrant liability

25,030

19,195

Other liabilities

2,589

2,904

Total liabilities

108,299

82,528

Commitments and contingencies

Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued

Common stock, $0.001 par value; 100,000,000 shares and 50,000,000 shares authorized; 22,232,004 and 19,659,362 shares issued and outstanding; each at December 31, 2016 and 2015, respectively

22

20

Additional paid-in-capital

190,507

173,477

Accumulated other comprehensive loss

(16)

(5)

Accumulated deficit

(193,113)

(161,434)

Total stockholders’ equity (deficit)

(2,600)

12,058

Total liabilities and stockholders’ equity

$

105,699

$

94,586

 

 

 

REMARK MEDIA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Periods Ended December 31, 2016

Quarter ended December 31,

Year Ended December 31,

2016

2015

2016

2015

Revenue, net

14,957

11,789

59,328

14,229

Cost and expense

Cost of revenue (excluding depreciation and amortization)

3,318

2,280

11,155

2,536

Sales and marketing

4,192

4,186

19,541

5,031

Technology and development

892

954

2,796

1,187

General and administrative

12,209

8,953

36,460

24,317

Depreciation and amortization

2,898

2,372

10,299

3,281

Other operating expense

9

265

515

454

Total cost and expense

23,518

19,010

80,766

36,806

Operating loss

(8,561)

(7,221)

(21,438)

(22,577)

Other income (expense) and gain (loss)

Debt conversion expense

(1,469)

Interest expense

(1,036)

(1,219)

(4,685)

(1,927)

Other income (loss), net

29

29

(50)

Loss on extinguishment of debt

(9,157)

Change in fair value of warrant liability

3,099

(5,673)

5,790

(5,432)

Other gain (loss)

(1,368)

2

(1,472)

8

Total other income (expense), net

695

(6,861)

(9,495)

(8,870)

Loss before income taxes

(7,866)

(14,082)

(30,933)

(31,447)

Provision for income taxes

(746)

(746)

Net loss

(8,612)

(14,082)

(31,679)

(31,447)

Weighted-average shares outstanding, basic and diluted

21,796

19,448

20,529

15,278

Net loss per share, basic and diluted

(0.40)

(0.72)

(1.54)

(2.06)

 

 

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SOURCE Remark Media, Inc.