RLJ Entertainment loses $8MN in Q2
| 17 August 2015
Media content distributor RLJ Entertainment has reported that it lost $8 million in revenue for the second quarter compared with the same period last year. The company's net loss was $546,000, compared to a net loss of $2.3 million for the quarter last year.
The culprit? In the second quarter of 2015, the US wholesale segment released 19 titles compared to the release of 35 titles in the second quarter of 2014.
But it expects to make that up somewhat. Its content release calendar has 54 titles planned to be released in the back half of the year, compared to 2014, when 46 titles were released.
"We generally acquire film or television content approximately six months ahead of the planned release date due to the time necessary to prepare marketing materials and meet our distribution partner's scheduling requirements," the company explained. "The shift in timing of releases for 2015 is primarily the result of our prior year's limited access to working capital while refinancing our secured debt during the second and third quarters of 2014."
Executives were bullish for the prospects of the offer. "As founder and chairman of RLJ Entertainment, I continue to have total confidence in management in implementing a business strategy that will de-lever the company's debt and deploy the recently invested capital to create significant growth and shareholder value," said Robert Johnson, chairman of the company.
"My recent investment of $15 million was based on my belief that the company has a bright future as one of the largest independent distributors of content and because of its strategy to grow its proprietary digital channels Acorn TV and UMC – Urban Movie Channel and Acacia TV."
Miguel Penella, CEO, added: "RLJ Entertainment is in a much stronger financial position following our recently completed $31 million equity offering and $18.5 million reduction of debt. We continue our ongoing diligent efforts to tightly manage costs and efficiently allocate capital to content. With this improved financial profile, we remain committed to improving our balance sheet, expanding our margins, and increasing our return on invested capital through content acquisitions, as well as growing our proprietary digital streaming channels."