Record consolidated revenue of $54.4 M; up 4% over the prior quarter
Record Adjusted EBITDA of $14.2 M; up 9% over the prior quarter
Mood Media Corporation (ISIN: CA61534J1057) (TSX:MM / LSE AIM:MM) (“Mood Media” or the “Company”), one of the world’s leading in-store media solution providers, announced today its results for the three and twelve months ended December 31, 2010.
Lorne Abony, Chairman and CEO of Mood Media, comments: “We are exceptionally pleased with our Q4 results. Our revenue and EBITDA growth speaks both to the utility of our products and services to retailers, as well as our execution on fundamental business practices of sales, customer retention, and a disciplined focus on integration and cost containment. We are particularly pleased to have been able to follow our strong Q3 with an even stronger Q4. 2010 was a transformative year for Mood Media, and we have closed the year with tremendous momentum in all of our businesses.”
In-Store Media Division
Q4’s in-store media division results are a testament to the significant value which Mood Media offers to its retail and hospitality clients. Revenue in Q4 grew by 9% over the prior quarter, fuelled by the long list of new client wins in both 2010 and in Q4, which included Dairy Queen, Toys R Us, Fruits & Passion, Guess, An Post and Carter’s.
Retail Point-of-Purchase
Mood Media’s retail point-of-purchase division (“RPOP”), enjoyed a strong quarter, with record sales at Costco and Walmart Canada during the holiday season. Demand from retailers for Mood Media’s unique product offerings remains strong, and Q4 saw this division continue to expand its distribution network, launching into 1,100 Michael’s stores in the USA and Canada. In Q4, Mood Media’s RPOP division made a number of significant strides towards its goal of re-positioning itself as an international multi-media entertainment business providing products and services that enhance leisure time for its core female demographic, including:
- Expanding its digital business by launching digital music stores with Walmart and Billboard;
- Launching new fitness programs at Walmart and Shopper’s Drug Mart;
- Launching into audio-books with unique content from proven brands/performers – Harlequin, Bob Newhart, Fisher Price;
- Launched into the Mexican market through a distributor, DICSA, giving this division access to leading Mexican retailers including Walmart Mexico and Soriana
Financial Summary
(1) Reconciliations of Adjusted EBITDA (earnings before financing charges, income taxes, non-controlling interest, amortization, stock-based compensation and other non-recurring charges), as reported above, to net loss for the three-month and twelve-month periods ended December 31 2009 and 2010 calculated under generally accepted accounting principles (“GAAP”), are shown below (all numbers expressed in millions).
(1) Mood Media Corporation presents Adjusted EBITDA information as a supplemental figure because management believes it provides useful information regarding operating performance. Adjusted EBITDA is not a recognized measure under Canadian GAAP, does not have standardized meaning, and is unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that Adjusted EBITDA should not be construed as an alternative to net earnings or (loss) determined in accordance with GAAP as an indicator of the financial performance of the Company or as a measure of the Company’s liquidity and cash flows.
About Mood Media Corporation
Mood Media is a leading in-store media specialist that uses a mix of music, visual and scent media to help its clients communicate with consumers with a view to driving incremental sales at the point-of-purchase. Operating through its two principal divisions, In-Store Media and Retail Point-of-Purchase, Mood Media works with more than 800 retail chains in more than 30 countries throughout North America, Europe, Asia and Australia.
Management believes that Mood Media’s services can have a direct impact on consumer purchasing decisions which makes in-store media an effective marketing tool. Management believes that in-store media services can enhance branding in real-time and influence shopper decisions by improving the shopping experience for consumers.
The in-store media division generates revenue via sales of its multi-sensory services to businesses; the retail point-of-purchase division sells specialty compilations through its retail clients. Mood Media has also compiled an extensive rights-included music library with over 1.8 million tracks.
Mood Media operates an international in-store media and music retail business with an extensive geographic footprint and a broad client base including several multinational blue chip organizations.
For further information about Mood Media, please visit www.moodmedia.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words “believe”, “expect”, “anticipate”, “estimate”, “intend”, “may”, “will”, “would” and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect.
Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in the Risk Factors section of Mood Media’s management discussion and analysis dated March 7, 2011 and the risk factors identified in the short form prospectus of Mood Media dated September 23, 2010, both of which are available on www.sedar.com.
Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media.
Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.
For further information:
Lorne Abony
CEO & Chairman
+1 416 510 2800
Dominic Morley
Panmure Gordon
+44 207 459 3600
Source: Mood Media Corporation
