Creative Realities, Inc. (“Creative Realities,” “CRI,” or the
“Company”) (NASDAQ: CREX, CREXW), a leading provider of digital
signage and media solutions, announced its financial results for
the three and six months ended June 30, 2023.
Rick Mills, Chief Executive Officer, commented
“I am pleased to report second quarter 2023 revenue of $9.2
million, with $4.3 million in gross profit, which equates to a
second quarter gross profit margin of 46.7% – a 406 basis-point
improvement over the second quarter of last year – continuing the
improved year-over-year trend in our margins that was evident in
the first quarter. This brings the Company’s gross profit to a
record $9.4 million for the first six months of the year at a
record gross profit margin for the first half of any year of 49.0%,
the latter of which is an approximately 960 basis-point improvement
over 2022.”
Mr. Mills continued, “We continue to focus on
critical path actions to grow both our customer base and,
importantly, our annual SaaS subscription revenue contracts, or
ARR, the latter of which now exceeds a $15.2 million run-rate. CRI
continues to win in the marketplace, having now successfully
converted approximately 69% of our RFP opportunities over the past
12 months. Our new customer acquisition momentum, combined with
continued growth in our ARR, has strengthened our expectations for
the near and long-term prospects of this business. We are actively
competing in a significant number of new customer engagements for
which an award of business is currently pending.
“The current quarter has met our expectations.
We have had a shift in the revenue ramp associated with the Bowling
deployment due to unexpected supply chain delays for certain
route/switch equipment, which was being procured and delivered by a
third-party, that have since been alleviated in full. We expect
that these delays could ultimately impact our full year revenue
results, however we believe the revenues from this project have not
vanished but have instead experienced a shift in timing. The
associated revenues will be realized, and we continue to project a
step-function change in run-rate revenue on a go-forward basis
beginning in the third quarter, with an increasing effect in
subsequent quarters thereafter for the foreseeable future. The
Company expects to generate between $60 million and $80 million in
revenue for the next twelve-month period beginning in third quarter
2023, but expects that generating an $80 million run-rate may take
an additional quarter or two as we catch up on the third-party
supply chain delays that were recently resolved,” Mr. Mills
added.
“Importantly, we also project ongoing
improvements in profitability associated with both scale and new
deployments, the latter of which drive SaaS and other downstream
recurring and services revenue at significantly more favorable
margins. We are demonstrating the improvements in profitability
already and, as we realize our backlog of $110 million, EBITDA and
free cash flow will follow. These effects are running in parallel
with accelerated debt service as we simultaneously reduce debt and
grow profit into an optimal leverage ratio.”
Mr. Mills encouraged investors to attend the
Company’s earnings release call, “In addition to providing
additional context to our second quarter earnings, we will convey
several important announcements and updates relating to new
customer acquisitions and the scaling of our CMS platforms.”
Revenue backlog is primarily related to
projected network deployments and project work, which upon
execution will result in additional ARR. The Company’s backlog
calculation is comprised of the full rollout of projects that have
been communicated to us by our current customers under contract,
and includes all revenues to be received by the Company by
deploying all of our products and services necessary to service
such stated projects, including projected revenues that are not
currently subject to binding purchase orders or firm
commitments.
2Q 2023 Financial Overview
All references to current year and prior year
represent references to the three months ended June 30, 2023 and
2022, respectively.
Key Highlights:
- Revenue in-line with previously
communicated expectations for second quarter 2023, between $9 - $10
million.
- Expansion of gross margin
percentage to 46.7% in the current year from 42.7% in the prior
year.
- Expansion of Annualized Recurring
Revenue to forward run-rate of ~$15.2 million.
Revenue, gross profit, and gross margin:
- Revenue in the current year were
$9,196, representing a decrease of $1,727, or 16%, as compared
to prior year. Hardware revenues were $3,437 in the current year,
a decrease of $2,230, or 39%, as compared to the prior
year. Hardware revenues generated in the prior year were
driven by two customers which refreshed their digital hardware
throughout their entire geographic footprint. These refresh
activities are cyclical in nature and no current customer executed
a similar large-scale refresh during the current year. Those
refresh activities represented $2,418 in incremental hardware
revenue during the prior year.
- Services and other revenues in the
current year were $5,759, an increase of $503, or 10%, as compared
to prior year driven primarily by increases in installation
services revenue and growth in managed services
revenue. Managed services revenue, which includes both
software-as-a-service (“SaaS”), help desk technical subscription
services, and other services revenues. While those managed services
revenues were effectively flat at $3,835, the prior year figure
included the last remaining software license contracts associated
with Safe Space Solutions, which were discontinued earlier in
2023.
- Gross profit decreased by $364, or
8% in the current year as compared to prior year driven by an
increase in installation services revenue.
- Gross profit margin
increased to 47% during the current year, from 43% in the
prior year driven by (1) favorable revenue mix during the three
months ended June 30, 2023 as managed services, which
includes higher margin SaaS and other services revenues,
increased to 42% of total revenue in the current year as compared
to 35% of total revenues in the prior year, and (2) margin
expansion in hardware, partially offset by reduced revenue in the
current year.
Operating expenses:
- Sales and marketing expenses
generally include the salaries, taxes, and benefits of our sales
and marketing personnel, as well as trade show activities, travel,
and other related sales and marketing costs. Sales and marketing
expenses increased by $82, or 7%, in the current year as compared
to the prior year driven primarily by the Company’s enhanced
investments into sales and marketing activities. Following the
Company’s merger with Reflect Systems, Inc. (the “Merger”), the
Company adopted certain tools, technology, and processes –
particularly with respect to lead generation and brand marketing –
that were historically undercapitalized by the Company and have
since accelerated new customer acquisition. Through completion of
the Merger, the Company also acquired a media sales business unit
that serves to monetize customer networks via the direct sale of
advertising to be displayed on digital advertising networks
owned by those customers. This business utilizes internal and
third-party sales agents - the salaries and commissions of which
are included within Sales and Marketing Expense within the
Condensed Consolidated Statement of Operations. We expect the
sales and marketing expenses of the Company for the three months
ended June 30, 2023 to adequately reflect normal spend in these
areas in future reporting periods.
- Research and development
expenses generally include personnel and development tools costs
associated with the continued development of the Company’s content
management systems and other related application development. The
Company capitalizes certain of these expenses and amortizes those
costs through the Condensed Consolidated Statement of Operations on
a straight-line basis over the economic useful life of the software
feature or functionality. Research and development expenses
decreased by $41, or 10%, in the current year as compared to prior
year driven primarily by an elevated level of capitalized activity
during the current quarter associated with a customer-facing
opportunity.
- General and administrative expenses
were effectively flat, increasing $33, or 1%, in the current
year as compared to prior year driven by reductions (1) of $203 in
stock compensation expense as outstanding performance awards were
fully expensed as of December 31, 2022, and (2) in certain
expenses following completion of integration
activities/projects completed during 2022 following the Reflect
Merger (including but not limited to consolidation of CMS tools,
cloud hosting environments, IT tools) that materialized through the
balance of 2022. These decreases were offset by increases of $278
in personnel costs in the current year as a result of higher
headcount following the Merger and scaled up operations in response
to an increase in customer acquisitions.
Operating loss, net loss, and EBITDA:
- Operating loss was $0.7 million for
the current year ended as compared to breakeven in the prior year,
inclusive of approximately $0.8 and $0.5 million in non-cash
amortization of fixed and intangible assets in the current and
prior year, respectively.
- Net loss was $1.4 million for the
current period as compared to net income of $1.3 million for the
same period in 2022, which was driven in the prior year by a
non-cash gain of $2.5 million on mark-to-market liabilities no
longer included in the Company’s condensed consolidated balance
sheet.
- Adjusted EBITDA was approximately
$0.3 million in the current period as compared to $0.9 million in
the prior period, with Adjusted EBITDA margin percentage of 3.2% in
the current period as compared to 8.3% in the prior period. See the
appendix for a description of these non-GAAP financial measures and
reconciliation to our net income.
A reconciliation of the GAAP-basis net
income/(loss) to Adjusted EBITDA is provided in a table at the end
of this press release.
Other notes:
- Cash: The
Company’s cash on hand as of June 30, 2023 increased to $3.3
million from $1.6 million as of December 31, 2022 as a result of
collections on accounts receivable, annual billings associated with
our SaaS-based contracts, and increases in customer deposits on
future deployments, partially offset by investments in software
development projects and repayment of debt.
- Debt: Through June
30, 2023, the Company has repaid in excess of $2.5 million in
principal on debt, reducing the Company’s leverage ratio. The
Company anticipates that starting on September 1, 2023, it will
begin making principal debt payments of approximately $399. In
response to these conditions, management plans to either refinance
or recapitalize its debt should the Company not produce sufficient
cash flows to continue to make repayments of principal.
Conference Call Details
The Company will host a conference call to
review the results of the Company’s second quarter 2023, and
provide additional commentary about the Company’s recent
performance, on Friday, August 4, 2023 at 9:00 am Eastern Time.
Prior to the call, participants should register
at http://bit.ly/CRIearnings2023Q2. Once registered, participants
can use the dial-in information provided in the registration email
to listen to the Company’s prepared remarks and participate in the
live question and answer session. An archived edition of the
conference call will also be posted on our website at www.cri.com
later that same day and will remain available to interested parties
via the same link for one year.
About Creative Realities,
Inc.
Creative Realities helps clients use place-based
digital media to achieve business objectives such as increased
revenue, enhanced customer experiences, and improved productivity.
The Company designs, develops and deploys digital signage
experiences for enterprise-level networks, and is actively
providing recurring SaaS and support services across diverse
vertical markets, including but not limited to retail, automotive,
digital-out-of-home (DOOH) advertising networks, convenience
stores, foodservice/QSR, gaming, theater, and stadium venues.
With its recent acquisition of Reflect Systems,
Inc. (“Reflect”), a leading provider of digital signage software
platforms, the Company is poised to extend its product and service
offering and accelerate growth in SaaS revenue. While Reflect
provided a broad range of digital signage solutions, Reflect’s
flagship products are the market-leading ReflectView digital
signage platform and Reflect AdLogic ad management platform.
ReflectView is the industry’s most comprehensive, scalable,
enterprise-grade digital signage platform, powering enterprise
customer networks. Meanwhile, Reflect AdLogic has become the
benchmark for digital signage powered ad networks, delivering
nearly 50 million ads daily. The acquisition of Reflect also
brought to the Company a media sales division with the expertise
and relationships to help any digital signage venue owner develop
and execute a monetization plan for their network.
Use of Non-GAAP Measures
Creative Realities, Inc. prepares its
consolidated financial statements in accordance with United States
generally accepted accounting principles (“GAAP”). In addition to
disclosing financial results prepared in accordance with GAAP, the
Company discloses information regarding “EBITDA” and “Adjusted
EBITDA.” CRI defines “EBITDA” as earnings before interest, income
taxes, depreciation and amortization of intangibles. CRI defines
“Adjusted EBITDA” as EBITDA excluding stock-based compensation,
fair value adjustments and both cash and non-cash non-recurring
gains and charges. EBITDA and Adjusted EBITDA are not measures of
performance defined in accordance with GAAP. However, EBITDA and
Adjusted EBITDA are used internally in planning and evaluating the
Company’s operating performance. Accordingly, management believes
that disclosure of these metrics offers investors, bankers and
other stakeholders an additional view of the Company’s operations
that, when coupled with the GAAP results, provides a more complete
understanding of the Company’s financial results.
EBITDA and Adjusted EBITDA should not be
considered as an alternative to net income/(loss) or to net cash
used in operating activities as measures of operating results or
liquidity. Our calculation of EBITDA and Adjusted EBITDA may not be
comparable to similarly titled measures used by other companies,
and the measures exclude financial information that some may
consider important in evaluating the Company’s performance. A
reconciliation of GAAP net income/(loss) to EBITDA and Adjusted
EBITDA is included in the accompanying financial schedules.
For further information, please refer to
Creative Realities, Inc.’s filings available online at www.sec.gov,
including its Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 30, 2023.
Cautionary Note on Forward-Looking
Statements
This press release contains "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995, and includes, among other things, discussions of our
business strategies, product releases, future operations and
capital resources. Words such as "estimates," "projected,"
"expects," "anticipates," "forecasts," "plans," "intends,"
"believes," "seeks," "may," "will," "should," "future," "propose"
and variations of these words or similar expressions (or the
negative versions of such words or expressions) are intended to
identify forward-looking statements. Forward-looking statements are
not guarantees of future performance, conditions or results. They
are based on the opinions, estimates and beliefs of management as
of the date such statements are made, and they are subject to known
and unknown risks, uncertainties, assumptions and other factors,
many of which are outside of our control, that may cause the actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Some of these risks are discussed in
the “Risk Factors” section contained in Item 1A of our Annual
Report on Form 10-K for the year ended December 31, 2022 and in our
Quarterly Report on Form 10-Q for the period ended June 30, 2023,
and the Company’s subsequent filings with the U.S. Securities and
Exchange Commission. Important factors, among others, that may
affect actual results or outcomes include: our ability to
effectively integrate Reflect’s business operations, our strategy
for customer retention, growth, product development, market
position, financial results and reserves, our ability to execute on
our business plan, our ability to retain key personnel, our ability
to remain listed on the Nasdaq Capital Market, our ability to
realize the revenues included in our future guidance and backlog
reports, our ability to satisfy our upcoming debt obligations and
other liabilities, the ability of the Company to continue as a
going concern, potential litigation, supply chain shortages, and
general economic and market conditions impacting demand for our
products and services, including those as a result of the COVID-19
pandemic. Readers should not place undue reliance upon any
forward-looking statements. We assume no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Contact
Christina Daviescdavies@ideagrove.com
Investor Relations:ir@cri.com
https://investors.cri.com/
CREATIVE REALITIES, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except
per share amounts) |
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,264 |
|
|
$ |
1,633 |
|
Accounts receivable, net |
|
|
6,496 |
|
|
|
8,263 |
|
Work-in-process and
inventories, net |
|
|
1,148 |
|
|
|
2,267 |
|
Prepaid expenses and other
current assets |
|
|
784 |
|
|
|
1,819 |
|
Total current assets |
|
$ |
11,692 |
|
|
$ |
13,982 |
|
Property and equipment,
net |
|
|
453 |
|
|
|
201 |
|
Operating lease right-of-use
assets |
|
|
1,356 |
|
|
|
1,584 |
|
Intangibles, net |
|
|
23,936 |
|
|
|
23,752 |
|
Goodwill |
|
|
26,453 |
|
|
|
26,453 |
|
Other assets |
|
|
44 |
|
|
|
43 |
|
TOTAL ASSETS |
|
$ |
63,934 |
|
|
$ |
66,015 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,892 |
|
|
$ |
3,757 |
|
Accrued expenses |
|
|
3,217 |
|
|
|
3,828 |
|
Deferred revenues |
|
|
2,827 |
|
|
|
1,223 |
|
Customer deposits |
|
|
3,985 |
|
|
|
2,478 |
|
Current maturities of
operating leases |
|
|
645 |
|
|
|
711 |
|
Short-term portion of Secured
Promissory Note |
|
|
833 |
|
|
|
1,248 |
|
Short-term portion of related
party Consolidation Term Loan, net of $747 and $745 discount,
respectively |
|
|
3,245 |
|
|
|
1,251 |
|
Short-term related party Term
Loan (2022) |
|
|
119 |
|
|
|
2,000 |
|
Total current liabilities |
|
|
17,763 |
|
|
|
16,496 |
|
Long-term Secured Promissory
Note |
|
|
- |
|
|
|
208 |
|
Long-term related party
Acquisition Term Loan, net of $1,139 and $1,484 discount,
respectively |
|
|
8,861 |
|
|
|
8,516 |
|
Long-term related party
Consolidation Term Loan, net of $469 and $840 discount,
respectively |
|
|
2,724 |
|
|
|
4,349 |
|
Long-term obligations under
operating leases |
|
|
711 |
|
|
|
873 |
|
Contingent acquisition
consideration, at fair value |
|
|
9,881 |
|
|
|
9,789 |
|
Other liabilities |
|
|
136 |
|
|
|
205 |
|
TOTAL LIABILITIES |
|
|
40,076 |
|
|
|
40,436 |
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value,
66,666 shares authorized; 7,409 and 7,266 shares issued and
outstanding, respectively |
|
|
74 |
|
|
|
72 |
|
Additional paid-in
capital |
|
|
76,618 |
|
|
|
75,916 |
|
Accumulated deficit |
|
|
(52,834 |
) |
|
|
(50,409 |
) |
Total shareholders’
equity |
|
|
23,858 |
|
|
|
25,579 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
63,934 |
|
|
$ |
66,015 |
|
|
|
CREATIVE REALITIES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware |
|
$ |
3,437 |
|
|
$ |
5,667 |
|
|
$ |
7,759 |
|
|
$ |
12,126 |
|
Services and other |
|
|
5,759 |
|
|
|
5,256 |
|
|
|
11,381 |
|
|
|
9,554 |
|
Total sales |
|
|
9,196 |
|
|
|
10,923 |
|
|
|
19,140 |
|
|
|
21,680 |
|
Cost of sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware |
|
|
2,724 |
|
|
|
4,610 |
|
|
|
5,930 |
|
|
|
9,992 |
|
Services and other |
|
|
2,174 |
|
|
|
1,651 |
|
|
|
3,823 |
|
|
|
3,134 |
|
Total cost of sales |
|
|
4,898 |
|
|
|
6,261 |
|
|
|
9,753 |
|
|
|
13,126 |
|
Gross profit |
|
|
4,298 |
|
|
|
4,662 |
|
|
|
9,387 |
|
|
|
8,554 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses |
|
|
1,229 |
|
|
|
1,147 |
|
|
|
2,365 |
|
|
|
1,854 |
|
Research and development
expenses |
|
|
377 |
|
|
|
418 |
|
|
|
743 |
|
|
|
659 |
|
General and administrative
expenses |
|
|
2,595 |
|
|
|
2,562 |
|
|
|
5,493 |
|
|
|
5,422 |
|
Depreciation and amortization
expense |
|
|
797 |
|
|
|
468 |
|
|
|
1,576 |
|
|
|
1,175 |
|
Deal and transaction
expenses |
|
|
- |
|
|
|
37 |
|
|
|
- |
|
|
|
428 |
|
Total operating expenses |
|
|
4,998 |
|
|
|
4,632 |
|
|
|
10,177 |
|
|
|
9,538 |
|
Operating income/(loss) |
|
|
(700 |
) |
|
|
30 |
|
|
|
(790 |
) |
|
|
(984 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, including
amortization of debt discount |
|
|
(787 |
) |
|
|
(750 |
) |
|
|
(1,590 |
) |
|
|
(1,199 |
) |
Change in fair value of
warrant liability |
|
|
- |
|
|
|
2,433 |
|
|
|
- |
|
|
|
7,902 |
|
Change in fair value of equity
guarantee |
|
|
(16 |
) |
|
|
(73 |
) |
|
|
(92 |
) |
|
|
(73 |
) |
Loss on debt waiver
consent |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,212 |
) |
Loss on warrant amendment |
|
|
- |
|
|
|
(345 |
) |
|
|
- |
|
|
|
(345 |
) |
Gain/(loss) on settlement of
obligations |
|
|
- |
|
|
|
21 |
|
|
|
- |
|
|
|
(274 |
) |
Other income (expense) |
|
|
123 |
|
|
|
(1 |
) |
|
|
135 |
|
|
|
5 |
|
Total other income
(expense) |
|
|
(680 |
) |
|
|
1,285 |
|
|
|
(1,547 |
) |
|
|
4,804 |
|
Net (loss) income before
income taxes |
|
|
(1,380 |
) |
|
|
1,315 |
|
|
|
(2,337 |
) |
|
|
3,820 |
|
Provision for income
taxes |
|
|
(45 |
) |
|
|
(53 |
) |
|
|
(88 |
) |
|
|
(56 |
) |
Net (loss) income |
|
$ |
(1,425 |
) |
|
$ |
1,262 |
|
|
$ |
(2,425 |
) |
|
$ |
3,764 |
|
Basic (loss) earnings per
common share |
|
$ |
(0.19 |
) |
|
$ |
0.17 |
|
|
$ |
(0.33 |
) |
|
$ |
0.62 |
|
Diluted (loss) earnings per
common share |
|
$ |
(0.19 |
) |
|
$ |
0.17 |
|
|
$ |
(0.33 |
) |
|
$ |
0.62 |
|
Weighted average shares
outstanding - basic |
|
|
7,406 |
|
|
|
7,234 |
|
|
|
7,379 |
|
|
|
6,060 |
|
Weighted average shares
outstanding - diluted |
|
|
7,406 |
|
|
|
7,234 |
|
|
|
7,379 |
|
|
|
6,060 |
|
|
|
CREATIVE REALITIES, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(In
thousands)(Unaudited) |
|
|
|
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(2,425 |
) |
|
$ |
3,764 |
|
Adjustments to reconcile net
(loss) income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
1,576 |
|
|
|
1,175 |
|
Amortization of debt
discount |
|
|
714 |
|
|
|
541 |
|
Amortization of stock-based
compensation |
|
|
493 |
|
|
|
1,014 |
|
Loss on debt waiver
consent |
|
|
- |
|
|
|
1,212 |
|
Loss on warrant amendment |
|
|
- |
|
|
|
345 |
|
Change on change in fair value
of warrants |
|
|
- |
|
|
|
274 |
|
Bad debt expense |
|
|
309 |
|
|
|
106 |
|
Gain on change in fair value
of warrants |
|
|
- |
|
|
|
(7,902 |
) |
Loss on change in fair value
of contingent consideration |
|
|
92 |
|
|
|
73 |
|
Deferred income taxes |
|
|
46 |
|
|
|
- |
|
Changes to operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
1,458 |
|
|
|
(4,035 |
) |
Work-in-process and
inventories |
|
|
1,119 |
|
|
|
(562 |
) |
Prepaid expenses and other
current assets |
|
|
1,035 |
|
|
|
(811 |
) |
Accounts payable |
|
|
(585 |
) |
|
|
2,487 |
|
Accrued expenses |
|
|
(559 |
) |
|
|
229 |
|
Deferred revenues |
|
|
1,604 |
|
|
|
1,178 |
|
Customer deposits |
|
|
1,507 |
|
|
|
809 |
|
Other |
|
|
(40 |
) |
|
|
40 |
|
Net cash provided by (used in)
operating activities |
|
|
6,344 |
|
|
|
(63 |
) |
Investing
activities |
|
|
|
|
|
|
|
|
Acquisition of business, net
of cash acquired |
|
|
- |
|
|
|
(17,186 |
) |
Purchases of property and
equipment |
|
|
(219 |
) |
|
|
(32 |
) |
Capitalization of labor for
software development |
|
|
(1,984 |
) |
|
|
(2,328 |
) |
Net cash used in investing
activities |
|
|
(2,203 |
) |
|
|
(19,546 |
) |
Financing
activities |
|
|
|
|
|
|
|
|
Principal payments on finance
leases |
|
|
(6 |
) |
|
|
- |
|
Proceeds from sale of common
stock in PIPE, net of offering expenses |
|
|
- |
|
|
|
1,814 |
|
Proceeds from sale &
exercise of pre-funded warrants in PIPE, net of offering
expenses |
|
|
- |
|
|
|
8,295 |
|
Proceeds from Acquisition
Loan, net of offering expenses |
|
|
- |
|
|
|
9,868 |
|
Repayment of Term Loan
(2022) |
|
|
(1,881 |
) |
|
|
- |
|
Repayment of Secured
Promissory Note |
|
|
(623 |
) |
|
|
(411 |
) |
Net cash (used in) provided by
financing activities |
|
|
(2,510 |
) |
|
|
19,566 |
|
Increase (decrease) in
Cash and Cash Equivalents |
|
|
1,631 |
|
|
|
(43 |
) |
Cash and Cash
Equivalents, beginning of period |
|
|
1,633 |
|
|
|
2,883 |
|
Cash and Cash
Equivalents, end of period |
|
$ |
3,264 |
|
|
$ |
2,840 |
|
|
|
RECONCILIATION OF GAAP NET LOSS TO
ADJUSTED EBITDA (in thousands,
unaudited)
Creative Realities, Inc. prepares its
consolidated financial statements in accordance with United States
generally accepted accounting principles (“GAAP”). In addition to
disclosing financial results prepared in accordance with GAAP, the
Company discloses information regarding “EBITDA” and “Adjusted
EBITDA.” CRI defines “EBITDA” as earnings before interest, income
taxes, depreciation and amortization of intangibles. CRI defines
“Adjusted EBITDA” as EBITDA excluding stock-based compensation,
fair value adjustments and both cash and non-cash non-recurring
gains and charges.
EBITDA and Adjusted EBITDA are non-GAAP
financial measures and should not be considered as a substitute for
net income (loss), operating income (loss) or any other performance
measure derived in accordance with United States generally accepted
accounting principles (“GAAP”) or as an alternative to net cash
provided by operating activities as a measure of CRI’s
profitability or liquidity. CRI’s management believes EBITDA and
Adjusted EBITDA are useful financial metrics because they allow
external users of CRI’s financial statements, such as industry
analysts, investors, lenders and rating agencies, to more
effectively evaluate CRI’s operating performance, compare the
results of its operations from period to period and against CRI’s
peers without regard to CRI’s financing methods, hedging positions
or capital structure and because it highlights trends in CRI’s
business that may not otherwise be apparent when relying solely on
GAAP measures. CRI also presents EBITDA and Adjusted EBITDA because
it believes EBITDA and Adjusted EBITDA are important supplemental
measures of its performance that are frequently used by others in
evaluating companies in its industry. Because EBITDA and Adjusted
EBITDA exclude some, but not all, items that affect net income
(loss) and may vary among companies, the EBITDA and Adjusted EBITDA
CRI presents may not be comparable to similarly titled measures of
other companies.
The following table presents a reconciliation of
EBITDA and Adjusted EBITDA from net loss, CRI’s most directly
comparable financial measure calculated and presented in accordance
with GAAP.
|
|
Quarters Ended |
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
Quarters ended |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
GAAP net income (loss) |
|
$ |
(1,425 |
) |
|
$ |
(1,000 |
) |
|
$ |
(1,334 |
) |
|
$ |
(554 |
) |
|
$ |
1,262 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of debt
discount |
|
|
358 |
|
|
|
356 |
|
|
|
364 |
|
|
|
363 |
|
|
|
360 |
|
Other interest, net |
|
|
429 |
|
|
|
447 |
|
|
|
423 |
|
|
|
394 |
|
|
|
390 |
|
Depreciation/amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible
assets |
|
|
754 |
|
|
|
754 |
|
|
|
743 |
|
|
|
848 |
|
|
|
431 |
|
Amortization of employee
share-based awards |
|
|
151 |
|
|
|
225 |
|
|
|
448 |
|
|
|
456 |
|
|
|
316 |
|
Depreciation of property &
equipment |
|
|
43 |
|
|
|
25 |
|
|
|
30 |
|
|
|
37 |
|
|
|
37 |
|
Income tax
expense/(benefit) |
|
|
45 |
|
|
|
43 |
|
|
|
33 |
|
|
|
(10 |
) |
|
|
53 |
|
EBITDA |
|
$ |
355 |
|
|
$ |
850 |
|
|
$ |
707 |
|
|
$ |
1,534 |
|
|
$ |
2,849 |
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on fair value of warrant
liability |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,433 |
) |
Gain on settlement of
obligations |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(37 |
) |
|
|
(21 |
) |
Loss on warrant amendment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
345 |
|
(Gain)/loss on fair value of
equity guarantee |
|
|
16 |
|
|
|
76 |
|
|
|
(705 |
) |
|
|
(442 |
) |
|
|
73 |
|
Disposal of Safe Space
Solutions inventory |
|
|
- |
|
|
|
- |
|
|
|
909 |
|
|
|
- |
|
|
|
- |
|
Deal and transaction
expenses |
|
|
- |
|
|
|
- |
|
|
|
54 |
|
|
|
110 |
|
|
|
37 |
|
Other (income)/expense |
|
|
(123 |
) |
|
|
(12 |
) |
|
|
7 |
|
|
|
2 |
|
|
|
1 |
|
Stock-based compensation –
Director grants |
|
|
43 |
|
|
|
43 |
|
|
|
56 |
|
|
|
82 |
|
|
|
82 |
|
Adjusted EBITDA |
|
$ |
291 |
|
|
|
957 |
|
|
|
1,028 |
|
|
|
1,249 |
|
|
|
933 |
|
Creative Realities (NASDAQ:CREXW)
過去 株価チャート
から 5 2024 まで 6 2024
Creative Realities (NASDAQ:CREXW)
過去 株価チャート
から 6 2023 まで 6 2024