March 30, 2017
Irvine, California – March 30, 2017. Propel Media, Inc. (OTCPink: PROM), a performance focused digital media and advertising company, today announced its financial results for the fourth quarter and full year ended December 31, 2016.
The Company generated a combined $23.3 million in cash flows from operating activities in 2016 and 2015. The Company expects to comply with all loan covenants in 2017 and to continue to pay down the principal amount of the term loan as scheduled.
“We closed out 2016 on a very strong note. The fourth quarter was the 3rd consecutive quarter of Adjusted EBITDA growth, bringing our full year Adjusted EBITDA to $21.9 million,” said Marv Tseu, Chief Executive Officer. “This robust performance has continued into the first quarter of 2017. I’m very pleased to see all of our teams working efficiently together to drive strong operating performance,” said Mr. Tseu.
Propel Media’s 2016 financial results, including the quarter-over-quarter Adjusted EBITDA growth, are a direct reflection of the Company working at high levels of efficiency to refocus its efforts towards media buying to grow its owned and operated properties. The Company has worked through the downward pressure of the revenue decline from third party partners, which it believes has bottomed out and stabilized in the fourth quarter of 2016. The Company is committed to continuing to focus on its owned and operated user audience, providing a platform for continued positive performance into 2017.
“In the fourth quarter of 2016, our media buying efforts contributed 82% of overall revenue, as compared to 32% in the first quarter of 2015. This new direction has been a driving force behind our stability and success,” said Mr. Tseu. “The fourth quarter was our best quarter in 2016, and we believe that this achievement has positioned Propel Media for continued strong performance in 2017,” added Mr. Tseu.
Further details concerning the results of operations for the fourth quarter and year ended December 31, 2016 are contained in the Annual Report on Form 10-K that Propel Media filed today with the Securities and Exchange Commission.
Propel Media connects digital marketers with unique audiences through intent-based technology that delivers superior performance with measurable results. We ‘Do Digital Differently™’ with a distinctive approach to digital powered by proprietary contextualization technology and a unique supply of ad inventory. Headquartered in Irvine, California, Propel Media is distinguished by its ability to deliver consistent results and its commitment to providing the highest level of client services to its 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 statements regarding Propel Media’s capital structure, ability to execute its operating plan, anticipated financial flexibility and future financial performance and any other statements that are not statements of historical fact. 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 Propel Media’s actual results to differ materially are: loss of key advertising customers; inability to acquire new advertising customers; limitations on its ability to acquire new users profitably or at all; 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.
In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, we present Adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA, which is based upon the adjusted EBITDA which we report to our lenders, is a key measurement monitored by management, and is determined by taking net (loss) income (the nearest GAAP measure) 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 onetime 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.