rlj entertainment inc (RLJE) Key Developments
RLJ Entertainment, Inc. Refinances Debt
Sep 11 14
RLJ Entertainment, Inc. announced that it has entered into a new $70 million, five year credit facility with a syndicate of lenders led by McLarty Capital Partners, as lead administrative agent. RLJ Entertainment used the proceeds from its new credit facility to pay off the outstanding borrowings under its previous credit facility totaling $56.1 million and the balance less closing fees for incremental working capital. The company's new credit facility reduces future debt service by approximately $11.2 million compared to the remaining three year term of the previous facility with the majority of the benefit in the next year and a half. The company anticipates utilizing the projected increased cash flow to increase its investment in content and expand its proprietary digital subscription video-on-demand (SVOD) channels. On September 11, 2014, RLJ Entertainment, Inc. and the majority of its subsidiaries entered into a syndicated Credit and Guaranty Agreement with certain lenders, McLarty Capital Partners SBIC, L.P. (McLarty), as Administrative Agent. The syndicate loan includes five lenders. The Credit Facility includes a term loan totaling $70 million with a final maturity of five years, at an interest rate equal to (a) LIBOR plus 10.64% for so long as the unpaid principal amount of the Credit Facility is greater than $65 million and (b) LIBOR plus 9.9% thereafter. The quarterly principal amortization is 3.5% year 1-2, 5% year three and 7.5% for remaining term with any unpaid balance due at maturity. The obligations under the Credit Facility are secured by a lien on substantially all of the assets of the Credit Parties, pursuant to the Pledge and Security Agreement, dated as of September 11, 2014, by and among the company, the participating subsidiaries and McLarty, as Collateral Agent. The initial debt service begins on December 31, 2014. The Credit Facility contains representations, financial and other affirmative and negative covenants, events of default and remedies typical for this type of facility. The facility is subject to compliance with a number of financial covenants, affirmative covenants and other restrictions on an ongoing basis.
RLJ Entertainment Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014
Aug 13 14
RLJ Entertainment Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. Revenue for the three months ended June 30, 2014 was $32.1 million, a decrease of $2.2 million compared to the three months ended June 30, 2013 revenue of $34.286 million. The decrease in revenue for the second quarter of 2014 was primarily driven by a $3.5 million decline in revenue in the Company's Wholesale segment. This decline is attributed to the terminated feature film output deal, which occurred in the third quarter of 2013 and whose sell-off period ended on March 31, 2014. Net loss for the three months ended June 30, 2014 and 2013, was $2.3 million and $16.9 million, respectively. The improvement in earnings in 2014 is mostly attributable to improved gross margins, which were impacted by increased impairment charges taken in 2013, and management's implementation of a required projected return on investments in content of 20%. Adjusted EBITDA was $3.034 million against $6.274 million a year ago. The improvement in the three-month period ended June 30, 2014 versus 2013 is primarily driven by a decline in the net operating loss as a result of improved operational activity and gross margin, a decline in amortization of content as result of less impairment charges, and the effects of certain aforementioned charges recognized in 2013. Loss from operations was $2.463 million against $15.546 million a year ago. Loss before provision for income taxes was $1.898 million against $16.359 million a year ago.
For the six months ended June 30, 2014 revenue decreased $12.2 million compared to the six months ended June 30, 2013. The decrease in revenue was primarily driven by (1) the timing of release of its Foyle's War franchise series between 2013 and 2014 and (2) the impact of the terminated feature film output deal. Net loss for the six months ended June 30, 2014 and 2013, was $12.3 million and $20.5 million, respectively. The improvement in earnings in 2014 is mostly attributable to improved gross margins, which were impacted by increased impairment charges taken in 2013, and management's implementation of a required projected return on investments in content of 20%. Loss from operations was $8.854 million against $16.124 million a year ago. Loss before provision for income taxes was $11.661 million against $19.491 million a year ago. Adjusted EBITDA was $3.688 million against $2.538 million a year ago.
RLJ Entertainment Inc. Announces Executive Changes
Jul 24 14
RLJ Entertainment Inc. has hired Stuart Shaw as its new Managing Director of RLJE International. Stuart will be overseeing the international licensing and distribution business for RLJ Entertainment. Stuart will join the company on September 1, 2014. Additionally, after nearly 20 years with the company, Lesley Fromant, Managing Director of RLJE Australia is retiring on January 15, 2015. At that time, Stuart will manage RLJE Australia and oversee all RLJE's distribution business outside of North America. Most recently, Stuart was the Director of International Sales & Marketing for Miramax's London office. Stuart is replacing Paul Holland, who has been managing the U.K. office since 2006.
RLJ Entertainment, Inc., Annual General Meeting, Aug 05, 2014
Jun 17 14
RLJ Entertainment, Inc., Annual General Meeting, Aug 05, 2014., at 11:00 US Eastern Standard Time. Location: Hyatt Regency Bethesda. Agenda: To elect three Class I directors nominated by the Board of Directors, each for a three-year term; to vote on an advisory basis upon the compensation of the named executive officers as disclosed in the accompanying proxy statement; to ratify the appointment of KPMG LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2014; and to discuss and resolve any other matters that properly come before the meeting.
RLJ Entertainment Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2014
May 15 14
RLJ Entertainment reported unaudited consolidated earnings results for the first quarter ended March 31, 2014. Revenues for the three months ended March 31, 2014 was $30.3 million, a decrease of $10.0 million compared to the three months ended March 31, 2013 of $40.3 million. The decline in revenue for the first quarter 2014 was primarily driven by a $7.6 million decrease in revenues in the company's IP Licensing segment. Net loss was $10 million or $0.81 basic and diluted loss per share against net loss of $3.6 million or $0.29 basic and diluted loss per share of prior year period. Adjusted EBITDA for the three months ended March 31, 2014 was a loss of $6.7 million compared to $3.7 million of earnings for the three months ended March 31, 2013. The decrease in Adjusted EBITDA of $10.5 million is attributable to: the timing of the release of Foyle's War franchise in the prior year versus the current year ($7.6 million), and the negative gross margin impact of approximately $3.1 million recognized during the current quarter on the close out of the terminated feature film output deal. Loss from operations was $6.4 million against $0.6 million of prior year period. Loss before provision for income taxes was $9.8 million against $3.1 million of prior year period.