May 13, 2016
Propel Media, Inc. (OTCBB: PROM), a performance focused digital media company bringing together online video, display and mobile advertising technology and solutions to advertisers, app developers and publishers, today announced 2016 first quarter results. The Company achieved revenue of $15.3 million and adjusted EBITDA of $3.2 million in its 2016 first quarter.
On April 26, 2016, the Company announced an operational restructuring and cost reduction initiative. This action was part of a strategic plan designed to improve overall cost efficiency and profitability by increasing the focus of the business on areas of strength to drive growth and revenue. As part of this restructuring effort, Marv Tseu was named Chief Executive Officer, replacing Bob Regular.
“Our performance remains strong and we are extremely optimistic about the future,” said Marv Tseu, Chief Executive Officer of Propel Media. “Our restructuring efforts provide us with an opportunity to get back to the basic strategy and business model that has been so successful for us in the past. We are confident these changes will yield positive results, and we remain focused on growing the business in 2016 and beyond.” Mr. Tseu added, “Bob Regular was a tremendous asset for the business and we wish him well in his future endeavors.”
Further details concerning the results of operations for the first quarter ended March 31, 2016 is set forth in the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 13, 2016.
Propel Media is a performance focused digital media company bringing together online video, display and mobile advertising technology and solutions to advertisers, app developers and publishers. Headquartered in Irvine, California, our mission is to provide exceptional performance for our partners.
For more information visit: www.propelmedia.com
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated financial flexibility and other statements that are not statements of historical fact, are forward-looking statements within the meaning of federal securities laws. These statements may be identified, without limitation, by the use of forward-looking terminology such as “anticipates”, “expects,” “will” or comparable terms or the negative thereof. Such statements are based on management’s current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof.
Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Propel Media and not all of which are known to Propel Media, including, without limitation those risk factors described from time to time in Propel Media’s reports filed with the SEC.
Among the factors that could cause actual results to differ materially are Propel Media’s: loss of key advertising customers; inability to acquire new advertising customers; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions.
Further, investors should keep in mind that Propel Media’s financial results in any particular period may not be indicative of future results. Propel Media is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by law.
To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Propel Media reports Adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is determined by taking net income (loss) and adding interest, taxes, depreciation, amortization, impairment charges, stock-based compensation, bank fees, losses from extraordinary, unusual or nonrecurring items, noncash items, merger and other one-time expenses and severance.
We believe that this non-GAAP measure, viewed in addition to and not in lieu of our reported GAAP results, provides useful information to investors by providing a more focused measure of operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies. Adjusted EBITDA has been reconciled to the nearest GAAP measure in the table following the financial statements attached to this press release.