Rhythmone Share Discussion Threads

[barkboo] 05/3/2018 09:43

Gowlane - I have nothing against you calling me names, calling my wife name or ill-wish anyone to do with me on here...that is your choice and you dont have to like me or my family and friends.

Having said that - if you happen to call my wife names in front of me, I would knock you out!

I do however dislike any person that makes claims on my integrity - if I have pumped, I have been 9 years and yet to dump!

The very naughty sikhthetech claims to know I have ,"multi id confidence tricksters" I do not have multi id's and neither do any scaffolders, some of which gave their time and expertise for free in helping with the Queens 90th birthday celebrations...

ADVFN have made it clear to sikhthetech - and he still post those derogatory remarks as fact...he is being discussed.

Your comments and involving the word coffin - do you no favors my friend!

[gowlane] 05/3/2018 08:54

1gw, no doubt they could come up with some obscure formulation to defend themselves.

But pre-tax profit actually means something very specific in the accounts, so that excuse would be the case for the prosecution rather than the defence in my book.

But Aim has become wild west territory, and getting worse.

Anyway that's me off for now

[gowlane] 05/3/2018 08:45

Now that's a plan, include Burger King and KFC to encourage us all to gluttony.

ok then 1gw, we had best just agree to differ, for the moment anyway.

Right now I see these cost cuts as just running hard to stay in the same place, could easily see 3-5% revenue shrinkage in FY19 in my view.

[1gw] 05/3/2018 08:38

Gowlane - on the strange broker fy18 profit numbers, don't you think the most likely explanation is that they are talking about adjusted profit? ie the profit before acquisition and exceptional items

[1gw] 05/3/2018 08:13

This year's loss should be almost entirely down to acquisition & subsequent restructuring costs I think. So for the current business they should be both profitable and significantly cash generative next year. And if they do further big acquisitions they have the bank funds to go at.
So they should be in the clear now. But it does depend on how conservative their forecasts have been and how successfully they can execute on the integrations.

[alex1621] 05/3/2018 08:07

Would all that cash from July 2014 have been better spent on McDonald's franchises?

[gowlane] 05/3/2018 07:30

1gw, agreed that at this point our FY18 guesstimates seem curiously to be not so far apart, but a long way from Numis with their $4m pre-tax profit projection, and presumably likewise with the other broker material out there.

So we are left with a new entity that 13 months ago was made up of 4 separate loss-making companies, with the 1R group now heading for their fourth year in a row of hefty losses. It seems to require a lot of faith and hope to invest in at this stage.

Are you completely ruling out the possibility a share placing in the next 6 months?

[gowlane] 05/3/2018 07:12

Barky, I have nothing at all against your scaffolder friends as long as they are all back in their coffins before the sun comes up. After all they have provided us with much entertainment here.

Good luck with your legal case, but what is the basis of your claim? That you are getting paid to make these ramping posts and these nasty bulletin board posters have affected your earning power by disagreeing with you?

What a cheek. Sue them all I say, yes sue everybody!!

[1gw] 04/3/2018 23:34

And final post for tonight. If YuMe acquisition and restructuring costs were $10m as you suggested then you would be looking at $15m-$20m total loss for FY18 - so not too dissimilar from your guesstimate.

[1gw] 04/3/2018 23:28

So in summary, I could make a bridge something like:

$27m loss for calendar year 2017 on pro-forma R1+RadiumOne+Perk basis
-$5m Radium One loss up to 26th June when R1 acquired it
-$4m loss on disposal and loss on operations for discontinued ops calendar 1Q17
-$5m acquisition and exceptional costs related to Perk in 1Q17
-$3m+ pre-exceptionals loss from continuing operations calendar 1Q17
-----
$10m- loss for FY18 (excl YuMe-related costs)

Then I'm guessing there might also have been some Perk exceptionals taken before the acquisition closed which had to be added back into the pro-forma numbers.

So I think it's just about credible to reconcile the $27m calendar 2017 loss number with a $5m-$10m loss (excl YuMe costs) in FY18, and therefore a $13m or so adjusted EBITDA number for FY18.

The actual loss would then also have to include the acquisition and exceptional costs related to the YuMe acquisition and subsequent restructuring which could be quite significant.

[1gw] 04/3/2018 23:13

I agree that it's a big gap from the $27m pro-forma loss for calendar year 2017 to what should have been say $5-$10m loss (excl yume-related costs) for fy18.

I think Radiumone might reasonably account for at least $5m (ie $5m loss in calendar 1H before R1 actually owned it) on the basis that the pro-forma accounts show $4.4m Radiumone loss in 1HFY18 (ie apr-sep). Pvmg probaby accounts for another $4m. (Loss on disposal plus 1q of operations). But that still leaves at least $8m to account for. In fy17 they had $5m of acquisition and exceptional costs from continuing operations, which presumably was mainly Perk and I would think most of this fell in calendar 1q17.

[barkboo] 04/3/2018 22:39

Gowlane - I see you stand to be corrected once again..if I was you, I would take a seat.

All us RTHM investors are getting rather tired of you helping us - you done all your money and watched it go swirling down the toilet...then in your efforts to get revenge on the company you are continually being forced to stand and be corrected by our resident acounts expert. lol

"RHYTHMONE - new Name, new Beginning??? - RTHM
JWoolley to answer your question, just once though.

Of course I was invested here for many years, exited completely just a few months ago and know this company well. Including the long term track record, management integrity and credibility or lack of it, organisation culture, all the soft issues that are so important.

Why are we still posting here? The answer is purely out of the goodness of our hearts. I am sure we have all benefited from the kindness of strangers from time to time, what would the world be like without that?"

Goodness of your armitage shanks?

[gowlane] 04/3/2018 21:33

1gw, nothing further to add from my perspective, my guesstimates remain the same.

If I understand you correctly, you are holding onto that $15.5m ebitda 'consensus' adjusted down to $13.5m for the full year, so $10m expected in H2?

Whereas I am simply taking that estimate of a $27m net loss for the calendar year as estimated by 1R themselves and presented to the SEC, and working back from there.

To me that $27m loss renders the ebitda claim redundant at that stage, I just don't know how those figures could be reconciled, but each to their own.

[gowlane] 04/3/2018 20:13

Yes I stand corrected on that first point 1gw, that should have read adding back $5m for half of Perk losses in H2 last year (not Yume), which in the absence of other information I would assume was included in the F-4 figure.

Let me go over your other points

[1gw] 04/3/2018 19:53

Not sure about that gowlane. The $27m loss was excluding YuMe I thought, but including RadiumOne and Perk from 1/1/17 (i.e. proforma for R1 + RadiumOne + Perk).

RadiumOne lost $17.5m before tax in calendar year 2016 and $5.6m adjusted EBITDA loss. So was the loss getting worse or better in 2017 and how much of the $17.5m was D&A that might not be incurred by R1 having taken on assets at "fair value" on 1/1/17? And for Perk, which came across in January, did they take write-downs ahead of sale (but after 1/1/17) which would have had to be included in the $27m loss figure?

So I prefer the sense-check method I think. We agree on the $8m H1 loss which came with $3m adjusted EBITDA profit. They originally seemed to be happy with the "consensus" $15.5m adjusted EBITDA profit estimate for the year, so might have expected $12m or so adjusted EBITDA in 2H. Reduce to say $10m given the apparent slight disappointment on delivering Radiumone integration cost savings.

$10m 2H adjusted EBITDA less D&A, share based payments, acquisition-related costs and restructuring costs (principally).

D&A presumably similar to 1H at say $8m (maybe a bit higher than H1 because a full half-year of RadiumOne amortisation). Share based payments $1m? So maybe $1m profit left before acquisition-related costs and restructuring costs. These came in at $6.6m in 1H which would have been mainly RadiumOne acquisition and restructuring. 2H may have had a bit more RadiumOne restructuring I imagine, plus YuMe acquisition plus YuMe restructuring.

Now for restructuring, R1 said in the YuMe acquisition announcement that they expected to deliver the approx. $10-12m cost savings with "associated one-off costs of no greater than US$1m". So on the face of it, after accounting for YuMe restructuring costs, that puts them at breakeven, with the YuMe acquisition costs and any remaining RadiumOne restructuring costs still to account for.

So optimistically, if we assume RadiumOne restructuring costs were all squeezed into 1H, the loss in 2H would be down just to the YuMe acquisition costs. Who knows how large these may have been - I suspect fairly significant? And on top of that there may have been some more RadiumOne restructuring costs and/or losses.

Errors excepted...

[gowlane] 04/3/2018 19:08

Here are a couple of ways you might estimate the out-turn for FY18.

Start with the -$27m forecast in the F-4, take out say $4.5m losses for Rad-1 for one quarter that we will not have (April-June), $5m losses for the PVMG disposal, and $5m for half of Yume H2 losses last year - which would have been included in the F-4 figures. Add back $2m for YuMe profit in Feb-Mar, and then deduct say $10m in acquisition and restructuring costs. That adds up to -$20.5m losses.

But a rough sense-check works out higher. The H1 loss was $8m, that equates to $11m in H2 after taking out $3m for that one-off revaluation credit. Allow $2m profit contribution from YuMe in Feb-March and deduct $10m for the YuMe acquisition and restructuring costs and we are back at -$27m in losses.

Correction: For the sense-check best deduct only $4m for the acquisition costs in H2 (and not $10m) as there was already $6m in there under that item in H1. So it is just $4m extra to make $10m in H2. The out-turn under the sense check then becomes -$21m.

So that is a range $20m-$21m, coming from the bottle half empty perspective maybe, but it sure is a long way from that Numis figure of $4m pre tax profit. I would love to know how they came up with that one.

[jonc] 04/3/2018 17:50

footers will be topping himself at £1.50.

[barkboo] 04/3/2018 16:24

Cranky - this aggressive behavior of those that do not like this company is very difficult to understand by those that do like the company.

I like to think of myself as a decent guy that wishes no financial hardship to any person.

If I did not like this company I would sell up, wish investors good luck and not use the thread anymore.

Those of you that have sold up - are not content with that normal approach? One has to ask why.

Instead you would like to bring the share price down further, and whats more you get great pleasure when that happens...those are not the actions of normal decent people, if you think it is - you are not normal, and certainly not decent!!

[kendonagasaki] 04/3/2018 15:49

Footy will you be topping up at £1.50?

[kendonagasaki] 04/3/2018 15:48

Thats it, bury your head in the sand Footy!

[kendonagasaki] 04/3/2018 15:47

I wonder why?

[sikhthetech] 04/3/2018 14:46

1R are no longer listed as a partner of DataXu.. after their legal action over fees..

[sikhthetech] 04/3/2018 14:42

Appnexus are a 1R partner. Their comments on fee transparency and ads.txt.


AU Marketers Must Continue to Demand More Transparency : Q&A with Samuel Tan, ANZ Market Development Director, AppNexus


"Both advertisers and publishers will look to only work with vendors that operate with transparency, focusing on how fees are distributed across the digital ecosystem, says Samuel Tan, AppNexus’ ANZ director of market development."


"Off the back of header bidding, we saw the emergence of Supply Path Optimisation as a mechanism for buyers to cut through unnecessary complexity and identify the most direct route to supply. As a result, intermediaries with non-transparent practices and high take-rates learnt very quickly that their business models were under serious threat. A number of SSPs have publicly announced they have eliminated buy-side fees."

"Keeping on the topic of transparency, it was pleasing to see participants embrace the IAB’s Ads.txt initiative. "

"This should come as no great surprise, but in 2018 transparency and trust will continue to be key themes for all involved in ad tech. You should expect an intense focus on fees taken by all parts of the digital ecosystem, with marketers and publishers seeking to only work with partners that add value in a transparent way."