Creative Realities, Inc. (“Creative Realities,” “CRI,” or the
“Company”) (NASDAQ: CREX, CREXW), a leading provider of digital
signage and media solutions, successfully closed its previously
announced public common stock offering on August 21, 2023, and is
pleased to provide information about the offering.
On August 17, 2023, the Company announced a
public offering of $6 million in common stock, with no warrant
coverage, to institutional and retail investors with use of the net
proceeds for general corporate purposes, which may include
repayment of principal on the Company’s indebtedness, capital
expenditures and funding working capital.
Creative Realities CEO Rick Mills commented “The
Company experienced unprecedented revenue growth in 2022 and is
poised for further revenue and profitability enhancements moving
forward.” Mr. Mills continued, “The completion of this offering
will significantly reduce our leverage ratio – the net offering
proceeds are earmarked to repay principal on the Company’s
amortizing notes – and supports continued conversion of the
tremendous growth in opportunities we are experiencing in the
marketplace through enhanced working capital. By addressing our
capital structure, we have fundamentally reduced the risk profile
of the Company and provided sufficient runway to realize value
creation for investors as we expect to demonstrate performance
against our plan.”
Mr. Mills stated, “Through the public offering,
we have brought on valuable new institutional investors vested in
supporting our value creation plan and who we believe are
positioned to continue to support the Company as we scale.” Mr.
Mills concluded, “Let me be clear, the value that we have created
is unimpacted. On the contrary, this transaction provides fuel to
aggressively advance available opportunities for the benefit of all
our shareholders, with significant focus on continuing the growth
in our $15 million-plus SaaS-based annual recurring revenue
base.”
The Company repaid approximately $3.2 million in
short-term, amortizing debt principal in 2023 through August 21,
2023. The Company anticipates using the net proceeds of the
offering to service the Company’s short-term amortizing debt,
reducing the balance to approximately $3.8 million by March 2024,
and prospectively reducing the 2024 exit net debt leverage ratio to
a projected 2.0x by the end of 2024.
Net debt leverage ratio is a key financial
measure used by management to assess the borrowing capacity of the
Company. The Company has defined its net debt leverage ratio
as net debt (total principal debt outstanding less
unrestricted cash) divided by Adjusted EBITDA for the trailing
twelve-month period.
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, 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 (NASDAQ:CREX)
過去 株価チャート
から 5 2024 まで 6 2024
Creative Realities (NASDAQ:CREX)
過去 株価チャート
から 6 2023 まで 6 2024