POMPANO BEACH, Fla.,
Aug. 14, 2012 /PRNewswire/ --
Onstream Media Corporation (NASDAQ: ONSM), a leading online service
provider of live and on-demand corporate audio and web
communications, virtual event technology and social media
marketing, reported today its financial results for the third
quarter of fiscal 2012, the nine and three months ended
June 30, 2012.
Third Quarter Highlights
- Revenues for the three months ended June
30, 2012 were over $4.8
million, representing a record for Onstream Media. Third
quarter revenues, which were approximately 4% higher than the third
quarter of fiscal 2011, also represented the eighth consecutive
quarter where revenues increased from the corresponding quarter of
the previous fiscal year.
- Revenues from the Audio and Web Conferencing Services Group
improved by 8.8% to $2.7 million
during the fiscal 2012 third quarter, versus the comparable
year-ago period.
- Revenues for the three months ended June
30, 2012, were sufficient to fund operating cash
expenditures plus all capital expenditures and major debt service
expenditures (as defined) for that period.
- Onstream's EBITDA, as adjusted, for the three months ended
June 30, 2012 was approximately
$245,000, an approximately 227%
improvement as compared to EBITDA, as adjusted, of approximately
$75,000 for the third quarter of
fiscal 2011.
Management Commentary
Randy Selman, President and Chief
Executive Officer of Onstream Media, stated, "We are pleased to
report a new revenue record for the most recently completed fiscal
quarter, continuing such records achieved over our past seven
quarters. We were also pleased to continue to report positive cash
flow from operating activities (before changes in current assets
and liabilities other than cash) for the first nine months of this
fiscal year, continuing and exceeding the pace set in fiscal 2011
when we reported our first full fiscal year having positive cash
provided by operating activities (before changes in current assets
and liabilities other than cash). In addition, we were especially
glad to report not only positive operating cash flow, but for the
first time in the Company's history, positive operating cash flow
sufficient to cover all capital expenditures and major debt service
expenditures (as defined) for that period."
Mr. Selman added, "Looking forward to the remainder of fiscal
2012, we believe that our core businesses, including conferencing
and webcasting, are well positioned to continue to drive our
revenue growth, allowing for the seasonality we usually see in the
fourth fiscal quarter. Although webcasting revenues are running
behind the prior year, we believe that the future of this division
will be favorably impacted by the comprehensive update to our
webcasting platform which we expect to release during the first
quarter of fiscal 2013. In addition, we recently implemented a new
MarketPlace365 (MP365) pricing model that establishes
MarketPlace365 as a value-added platform to assist the customer in
using our webcasting services and more particularly, our webinar
services. In addition, our new model enables various components of
the platform to be used separately opening up new opportunities for
MarketPlace365."
Financial Discussion
Three Months Results
Our consolidated revenues of over $4.8
million for the three months ended June 30, 2012 represented a new record high for
Onstream Media. Those revenues represented an increase of
approximately $182,000, or 3.9%, over
our revenues for the three months ended June
30, 2011, with such increase due to higher sales from the
Company's Audio and Web Conferencing Services Group. Those
consolidated revenues of approximately $4.8
million for the three months ended June 30, 2012 also represented an increase of
$151,000, or 3.3%, over our revenues
for the immediately preceding quarter, the three months ended
March 31, 2012.
Audio and Web Conferencing Services Group revenues were
approximately $2.7 million for the
three months ended June 30, 2012, an
increase of approximately $216,000,
or 8.8%, from the corresponding quarter of the prior fiscal year,
primarily due to an increase in the Infinite division's audio
conferencing revenues.
Digital Media Services Group revenues were approximately
$2.1 million for the three months
ended March 31, 2012, a decrease of
approximately $33,000, or 1.5%, from
the corresponding period of the prior fiscal year, primarily due to
a decrease in webcasting division revenues, partially offset by an
increase in DMSP and hosting revenues.
Revenues for the three months ended June
30, 2012, were sufficient to fund operating cash
expenditures plus all capital expenditures and major debt service
expenditures for that period. Major debt service expenditures
is defined as the monthly principal and interest payments on a
major scheduled note owed by Onstream plus interest payable in cash
on all other debts.
Gross margin of approximately $3.2
million for the three months ended June 30, 2012, representing 66.6% of total
revenues, was an increase of 0.4% as compared to the year-ago
quarter.
Onstream's third quarter fiscal 2012 net loss of approximately
$244,000, or $(0.02) per share, was based on approximately
12.3 million weighted average shares outstanding and represented a
49.8% decrease from the third quarter fiscal 2011 net loss of
approximately $486,000, or
$(0.05) per share, which was based on
approximately 10.3 million weighted average shares outstanding.
These losses included non-cash expenses for depreciation and
amortization (approximately $340,000
and $364,000, for the three months
ended June 30, 2012 and 2011,
respectively) as well as other non-cash expenses, which are
discussed in more detail below.
Onstream's EBITDA, as adjusted, for the three months ended
June 30, 2012 was approximately
$245,000, an approximately 227%
improvement as compared to EBITDA, as adjusted, of approximately
$75,000 for the third quarter of
fiscal 2011.
Cash flow from operating activities (before changes in current
assets and liabilities other than cash) for the three months ended
June 30, 2012 was approximately
$372,000, compared to cash provided
by operating activities of approximately $328,000 for the three months ended June 30, 2011.
Nine Months Results
Onstream's consolidated revenues were approximately $14.0 million for the nine months ended
June 30, 2012 representing an
increase of approximately $626,000,
or 4.7%, over our revenues for the nine months ended June 30, 2012. This increase was due to higher
sales from the Company's Audio and Web Conferencing Services Group,
and in particular the Infinite division.
Gross margin of approximately $9.2
million for the nine months ended June 30, 2012, representing 66.0% of total
revenues, was an increase of 2.9% versus the comparable year-ago
period.
Onstream's net loss of approximately $1.6
million, or $(0.13) per share,
for the first nine months of fiscal 2012 was based on approximately
12.1 million weighted average shares outstanding and represented a
39.5% decrease from the net loss for the first nine months of
fiscal 2011 of approximately $2.7
million, or $(0.28) per share,
which was based on approximately 9.5 million weighted average
shares outstanding. These losses included non-cash expenses for
depreciation and amortization (approximately $1.1 million, for each of the nine months ended
June 30, 2012 and 2011) as well as
other non-cash expenses, which are discussed in more detail
below.
Onstream's EBITDA, as adjusted, for the nine months ended
June 30, 2012 was negative by
approximately $44,000, an
approximately 93% improvement as compared to EBITDA, as adjusted,
for the comparable year-ago period, which was negative by
approximately $611,000.
Onstream's net loss of approximately $1.6
million for the nine months ended June 30, 2012 included approximately $2.2 million of non-cash items (non-cash
expenses, net of non-cash income), resulting in approximately
$552,000 positive cash flow from
operating activities (before changes in current assets and
liabilities other than cash) for that period. The primary non-cash
expenses included in that net loss were depreciation and
amortization and certain items (employee compensation, professional
fees and interest) paid with equity. The $552,000 positive cash flow from operating
activities (before changes in current assets and liabilities other
than cash) for the nine months ended June
30, 2012 represented an improvement of approximately
$268,000, as compared to cash
provided by operating activities of approximately $284,000 in the corresponding period of the
previous fiscal year. Cash flow from operating activities (before
changes in current assets and liabilities other than cash) was
positive for all three quarters of fiscal 2012.
Teleconference
Management will hold a conference call on Wednesday, August 15, 2012 at 4:30 p.m. ET to discuss our financial results for
the nine and three months ended June 30,
2012, as well as provide an outlook for the remainder of
fiscal 2012. Management discussion will be followed by an open
Q&A session. Interested parties may listen to the presentation
live online at http://www.visualwebcaster.com/event.asp?id=88713 or
by calling 1-888-645-4404 or 201-604-0169. It is recommended to
dial in approximately 10 to 15 minutes prior to the scheduled start
time. An audio rebroadcast of the conference call will be archived
for one year online at
http://www.visualwebcaster.com/event.asp?id=88713.
About Onstream Media
Onstream Media Corporation (NASDAQ:ONSM) is a leading online
service provider of live and on-demand corporate audio and web
communications, virtual event technology and social media
marketing. Onstream Media's innovative Digital Media Services
Platform (DMSP) provides customers with cost effective tools for
encoding, managing, indexing, and publishing content via the
Internet. The company's MarketPlace365® solution enables
publishers, associations, tradeshow promoters and entrepreneurs to
rapidly and cost effectively self deploy their own online virtual
marketplaces. In addition, Onstream Media provides live and
on-demand webcasting, webinars, web and audio conferencing
services. To date, almost half of the Fortune 1000 companies and
78% of the Fortune 100 CEOs and CFOs have used Onstream Media's
services. Select Onstream Media customers include: AAA, Dell,
Disney, Georgetown University, National
Press Club, PR Newswire, Shareholder.com (NASDAQ), Sony Pictures
and the U.S. Government. Onstream Media's strategic relationships
include Akamai, BT Conferencing and Trade Show News Network (TSNN).
For more information, visit Onstream Media at
http://www.onstreammedia.com or call 954-917-6655.
Cautionary Note Regarding Forward
Looking Statements
Certain statements in this document and elsewhere by
Onstream Media are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
information includes, without limitation, the business outlook,
assessment of market conditions, anticipated financial and
operating results, strategies, future plans, contingencies and
contemplated transactions of the company. Such forward-looking
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties and other factors which
may cause or contribute to actual results of company operations, or
the performance or achievements of the company or industry results,
to differ materially from those expressed, or implied by the
forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere herein, risks,
uncertainties and other factors that could cause or contribute to
actual results differing materially from those expressed or implied
for the forward- looking statements include, but are not limited to
fluctuations in demand; changes to economic growth in the U.S.
economy; government policies and regulations, including, but not
limited to those affecting the Internet. Onstream Media undertakes
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Actual results, performance or achievements could differ materially
from those anticipated in such forward-looking statements as a
result of certain factors, including those set forth in Onstream
Media Corporation's filings with the Securities and Exchange
Commission.
Media
Relations:
|
Investor Relations:
|
Chris
Faust
|
Wolfe
Axelrod Weinberger Associates, LLC
|
FastLane
Communications
|
Donald C.
Weinberger; Adam Lowensteiner
|
973-582-3498
|
(212)
370-4500; (212) 370-4505
|
cfaust@fast-lane.net
|
don@wolfeaxelrod.com
|
|
adam@wolfeaxelrod.com
|
Financial Tables Follow
ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
Nine
months ended
June 30,
|
|
Three
months ended
June
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
(unaudited)
|
(unaudited)
|
REVENUE:
|
|
|
|
|
|
|
Audio and web
conferencing
|
$
6,393,755
|
|
$
5,598,118
|
|
$
2,131,118
|
|
$
1,947,602
|
Webcasting
|
4,539,336
|
|
4,694,866
|
|
1,601,266
|
|
1,686,296
|
DMSP and hosting
|
1,439,437
|
|
1,532,467
|
|
517,883
|
|
474,314
|
Network usage
|
1,472,305
|
|
1,442,542
|
|
523,190
|
|
495,432
|
Other
|
133,343
|
|
83,789
|
|
34,265
|
|
21,556
|
Total
revenue
|
13,978,176
|
|
13,351,782
|
|
4,807,722
|
|
4,625,200
|
|
|
|
|
|
|
|
|
COSTS OF
REVENUE:
|
|
|
|
|
|
|
|
Audio and web
conferencing
|
1,906,838
|
|
1,743,590
|
|
583,094
|
|
576,290
|
Webcasting
|
1,351,731
|
|
1,206,779
|
|
482,172
|
|
412,806
|
DMSP and hosting
|
758,965
|
|
727,251
|
|
297,231
|
|
210,651
|
Network usage
|
697,688
|
|
645,050
|
|
234,117
|
|
216,565
|
Other
|
41,970
|
|
71,367
|
|
7,235
|
|
17,430
|
Total costs of revenue
|
4,757,192
|
|
4,394,037
|
|
1,603,849
|
|
1,433,742
|
|
|
|
|
|
|
|
|
GROSS
MARGIN
|
9,220,984
|
|
8,957,745
|
|
3,203,873
|
|
3,191,458
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
General and
administrative:
|
|
|
|
|
|
|
|
Compensation
|
6,046,069
|
|
6,558,735
|
|
1,939,800
|
|
2,162,279
|
Professional fees
|
1,568,340
|
|
1,434,726
|
|
421,817
|
|
424,863
|
Other
|
1,692,581
|
|
1,629,460
|
|
610,145
|
|
571,877
|
Depreciation and
amortization
|
1,054,721
|
|
1,117,425
|
|
340,099
|
|
363,987
|
Total
operating expenses
|
10,361,711
|
|
10,740,346
|
|
3,311,861
|
|
3,523,006
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(1,140,727)
|
|
(1,782,601)
|
|
(107,988)
|
|
(331,548)
|
|
|
|
|
|
|
|
|
OTHER
EXPENSE, NET:
|
|
|
|
|
|
|
|
Interest expense
|
(565,795)
|
|
(1,024,117)
|
|
(180,598)
|
|
(480,265)
|
Gain from adjustment of
derivative
liability to fair value
|
46,818
|
|
81,138
|
|
31,867
|
|
283,144
|
Other income, net
|
42,210
|
|
51,627
|
|
12,657
|
|
42,958
|
|
|
|
|
|
|
|
|
Total
other expense, net
|
(476,767)
|
|
(891,352)
|
|
(136,074)
|
|
(154,163)
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(1,617,494)
|
|
$
(2,673,953)
|
|
$
(244,062)
|
|
$
(485,711)
|
|
|
|
|
|
|
|
|
Loss per
share – basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share
|
$
(0.13)
|
|
$
(0.28)
|
|
$
(0.02)
|
|
$
(0.05)
|
Weighted
average shares of common
stock outstanding – basic and diluted
|
12,064,398
|
|
9,514,683
|
|
12,344,727
|
|
10,307,645
|
|
|
|
|
|
|
|
|
|
ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO EBITDA AND EBITDA, AS
ADJUSTED
|
|
|
|
|
|
Nine
months ended
June
30,
|
|
Three
months ended
June
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(unaudited)
|
|
(unaudited)
|
Net
loss
|
$
(1,617,494)
|
|
$
(2,673,953)
|
|
$
(244,062)
|
|
$
(485,711)
|
Add:
Depreciation and amortization
|
1,054,721
|
|
1,117,425
|
|
340,099
|
|
363,987
|
Add:
Interest expense
|
565,795
|
|
1,024,117
|
|
180,598
|
|
480,265
|
EBITDA
|
$
3,022
|
|
$
(529,389)
|
|
$
276,635
|
|
$
358,541
|
|
|
|
|
|
|
|
|
EBITDA
|
$
3,022
|
|
$
(529,389)
|
|
$
276,635
|
|
$
358,541
|
Gain from
adjustment of derivative liability to fair value
|
(46,818)
|
|
(81,138)
|
|
(31,867)
|
|
(283,144)
|
EBITDA, as
adjusted
|
$
(43,796)
|
|
$
(610,527)
|
|
$
244,768
|
|
$
75,397
|
EBITDA is
defined as earnings before interest, depreciation, income taxes and
amortization.
EBITDA, as
adjusted, represents EBITDA, as defined above, adjusted for gain
from adjustment of derivative liability to fair value.
EBITDA and
EBITDA, as adjusted, are non-U.S. GAAP financial
measures.
Management
believes EBITDA and EBITDA, as adjusted, to be meaningful
indicators of our performance that provides useful information to
investors regarding our financial condition and results of
operations. Presentation of EBITDA and EBITDA, as adjusted, is
commonly used by financial analysts and others who follow our
industry to measure operating performance. While management
considers EBITDA and EBITDA, as adjusted, to be an important
measure of comparative operating performance, it should be
considered in addition to, but not as a substitute for, net income
and other measures of financial performance reported in accordance
with U.S. Generally Accepted Accounting Principles (GAAP). EBITDA
and EBITDA, as adjusted, do not reflect cash available to fund cash
requirements. Not all companies calculate EBITDA or EBITDA, as
adjusted, in the same manner and the measure as presented may not
be comparable to similarly-titled measures presented by other
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
June
30,
2012
(unaudited)
|
|
September 30,
2011
|
ASSETS
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
362,724
|
|
$
290,865
|
Accounts receivable, net of
allowance for doubtful accounts
|
2,397,539
|
|
2,453,390
|
Prepaid expenses
|
367,487
|
|
580,185
|
Inventories and other current
assets
|
143,928
|
|
139,099
|
Total
current assets
|
3,271,678
|
|
3,463,539
|
PROPERTY
AND EQUIPMENT, net
|
2,709,828
|
|
2,714,676
|
INTANGIBLE
ASSETS, net
|
404,603
|
|
785,927
|
GOODWILL,
net
|
10,696,948
|
|
10,696,948
|
OTHER
NON-CURRENT ASSETS
|
146,215
|
|
104,274
|
Total
assets
|
$
17,229,272
|
|
$
17,765,364
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts payable
|
$
1,532,936
|
|
$
1,573,703
|
Accrued liabilities
|
1,359,212
|
|
1,193,473
|
Amounts due to directors and
officers
|
624,859
|
|
396,392
|
Deferred revenue
|
60,025
|
|
96,437
|
Notes and leases payable –
current portion, net of discount
|
1,837,984
|
|
1,533,966
|
Convertible debentures, net of
discount
|
432,379
|
|
407,790
|
Total
current liabilities
|
5,847,395
|
|
5,201,761
|
Notes and
leases payable, net of current portion
|
4,465
|
|
11,962
|
Convertible debentures, net of discount
|
807,784
|
|
1,031,870
|
Detachable
warrants, associated with sale of common shares
and Series A-14
Preferred
|
141,393
|
|
188,211
|
Total
liabilities
|
6,801,
037
|
|
6,433,804
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
Series
A-13 Convertible Preferred stock, par value $.0001 per
share, authorized
170,000 shares, 17,500 and 35,000 issued and
outstanding, respectively
|
2
|
|
3
|
Series
A-14 Convertible Preferred stock, par value $.0001 per
share, authorized
420,000 shares, 420,000 issued and
outstanding
|
42
|
|
42
|
Common
stock, par value $.0001 per share; authorized 75,000,000
shares, 12,492,217 and 11,779,521 issued and
outstanding,
respectively
|
1,248
|
|
1,177
|
Additional
paid-in capital
|
141,013,138
|
|
140,291,514
|
Unamortized discount
|
(62,536)
|
|
(146,418)
|
Accumulated deficit
|
(130,523,659)
|
|
(128,814,758)
|
Total
stockholders' equity
|
10,428,235
|
|
11,331,560
|
Total
liabilities and stockholders' equity
|
$
17,229,272
|
|
$
17,765,364
|
SOURCE Onstream Media Corporation