Rent the Runway (NASDAQ:RENT)
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- TV Essentials(TM) Now Tracking Anonymous Linear Data from 9 Million Set Top Boxes -
PORTLAND, Ore., Feb. 3 /PRNewswire-FirstCall/ -- 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(TM) 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(R) (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(TM) 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(R), 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(TM) measurement service;
-- Furthering its commitment to providing best-in-class, cross-platform
media measurement services, Rentrak expects to commercially launch its
Digital Download Essentials(TM) 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."
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 http://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
Rentrak Corporation, based in Portland, Oregon, is an information management company serving clients primarily in the media, entertainment, retail and advertising. The company's near-term focus centers on its Entertainment Essentials(TM) suite of services that is redefining measurement in the digital media era. Available by subscription, each Entertainment Essentials service provides customers with near-real-time, actionable insight into performance of content distributed over a wide variety of modern media technologies allowing executives to analyze detailed industry-wide and title-specific data to make decisions that enhance the bottom line and provide competitive advantage. For further information, please visit Rentrak's corporate Web site at http://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 generate long-term growth and prosperity; the ability for Rentrak to become the world's most trusted independent provider of cross-screen media measurement; the company's development efforts pertaining to new media measurement services and the timing of the commercial launch of those services; and anticipated customer acceptance of the company's new media measurement services; 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.
CONTACT:
Investors
PondelWilkinson Inc.
Laurie Berman
310-279-5962
(Financial Tables Follow)
Rentrak Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
December 31, March 31,
2008 2008
----------- -----------
Assets
Current Assets:
Cash and cash equivalents $4,835 $26,862
Marketable securities 29,496 4,986
Accounts receivable, net of allowances for
doubtful accounts of $643 and $572 18,110 15,032
Note receivable 436 396
Advances to program suppliers, net of program
supplier reserves of $14 and $17 82 95
Taxes receivable and prepaid taxes 2,210 1,455
Deferred income tax assets 103 253
Other current assets 735 1,296
----------- -----------
Total Current Assets 56,007 50,375
Property and equipment, net of accumulated
depreciation of $8,978 and $7,731 6,337 6,145
Other assets 566 629
----------- -----------
Total Assets $62,910 $57,149
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $9,619 $6,768
Accrued liabilities 520 671
Deferred rent, current portion 90 90
Accrued compensation 1,094 930
Deferred revenue 1,566 873
----------- -----------
Total Current Liabilities 12,889 9,332
Deferred rent, long-term portion 944 989
Deferred income tax liabilities 676 226
Taxes payable, long-term 2,189 1,965
Notes payable 748 965
----------- -----------
Total Liabilities 17,446 13,477
Commitments and Contingencies - -
Stockholders' Equity:
Preferred stock, $0.001 par value; 10,000
shares authorized; none issued - -
Common stock, $0.001 par value; 30,000
shares authorized; shares issued and
outstanding:
10,507 and 10,605 11 11
Capital in excess of par value 46,420 47,189
Accumulated other comprehensive income
(loss) (385) 170
Accumulated deficit (582) (3,698)
----------- -----------
Total Stockholders' Equity 45,464 43,672
----------- -----------
Total Liabilities and Stockholders'
Equity $62,910 $57,149
=========== ===========
Rentrak Corporation and Subsidiaries
Condensed Consolidated Income Statements
(Unaudited)
(In thousands, except per share amounts)
For the Three For the Nine
Months Ended Months Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
------- ------- ------- -------
Revenue $22,973 $23,875 $72,653 $70,890
Cost of sales 15,752 16,937 48,915 47,827
------- ------- ------- -------
Gross margin 7,221 6,938 23,738 23,063
Selling and administrative 6,746 6,319 20,303 19,036
------- ------- ------- -------
Income from operations 475 619 3,435 4,027
Other income (expense):
Interest income 388 399 764 1,216
Interest expense - (3) (2) (7)
------- ------- ------- -------
388 396 762 1,209
------- ------- ------- -------
Income before income taxes 863 1,015 4,197 5,236
Provision (benefit) for
income taxes (375) 468 1,081 2,331
------- ------- ------- -------
Net income $1,238 $547 $3,116 $2,905
======= ======= ======= =======
Basic net income per share $0.12 $0.05 $0.29 $0.27
======= ======= ======= =======
Diluted net income per share $0.11 $0.05 $0.28 $0.26
======= ======= ======= =======
Shares used in per share
calculations:
Basic 10,538 10,757 10,587 10,747
======= ======= ======= =======
Diluted 10,994 11,280 11,104 11,263
======= ======= ======= =======
DATASOURCE: Rentrak Corporation
CONTACT: Investors, Laurie Berman of PondelWilkinson Inc.,
+1-310-279-5962, , for Rentrak Corporation
Web Site: http://www.rentrak.com/