EXHIBIT 99.1

CORRECTING and REPLACING Cinedigm Announces Third Quarter Fiscal 2016 Financial Results

Total revenues increase 11% and Content & Entertainment revenues increase 23% from the previous quarter

Correction...by Cinedigm Corp.

LOS ANGELES (February 9, 2015) - Date in the third table should read: December 31 (instead of September 30).  The corrected release reads:

Cinedigm Corp. (NASDAQ: CIDM) today announced financial results for the third quarter of fiscal 2016, which ended December 31, 2015.

Financial Summary



Consolidated revenues were $30.7 million, an increase of $3.0 million or 11% from the previous quarter

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Non-deployment (Entertainment and Services) revenues were $17.5 million, an increase of $2.7 million or 18% from the previous quarter

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Content and entertainment revenues were $14.4 million, an increase of $2.7 million or 23% from the previous quarter

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Consolidated adjusted EBITDA was $14.5 million, an increase of $3.1 million or 27.2% from the previous quarter

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Non-deployment adjusted EBITDA was $1.9 million, an increase of $2.8 million from the previous quarter

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Consolidated revenues were down $0.6 million or 2% versus the prior year quarter due mainly to a reduced content sales pipeline



Consolidated EBITDA was down $1.2 million or 8% versus the prior year quarter due mainly to a reduced content sales pipeline and continued investment in OTT, particularly the Company's increased ownership in CONtv

Highlights

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The Company now has nearly 1.8 million app installs across all three Over-The-Top (OTT) channels, (Docurama, CONtv, Dove)

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To date, app installs increased 43% from the previous quarter across all channels

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The Company has an estimated 316,000 registered users across all channels

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Dove Channel, launched last September, and already has over 515,000 installations on Android, iOS and Roku, more than 188,000 registered users and more than 22,000 active subscribers



In December 2015, all three of Cinedigm's OTT channels (Dove Channel, CONtv and Docurama) became available to Amazon Prime members as part of Amazon's new Streaming Partners Program.   With an estimated 40 million households currently using Amazon Prime, or nearly 40% of all American households, this distribution arrangement significantly expands the potential subscriber base of Cinedigm's OTT channels. Registered users have increased 47% in the last 60 days

 

"We are very pleased with the accelerating momentum of our OTT business, particularly the successful launch and early consumer adoption of the Dove Channel, which has far exceeded all of our performance expectations," said Chris McGurk, Chairman and CEO. "Our recently announced Amazon Streaming Partners Program has already been very successful and signals additional opportunities to rapidly expand our user and subscriber base across all of our channels.  As we look to the future, we continue to pursue key strategic partnerships and related capital raise opportunities at the Corporate, subsidiary and OTT level to support our strategic plan."

Third Quarter Fiscal 2016 Detailed Results

Although total revenues were down $0.6 million or 2% versus the prior year quarter, revenues in Phase I and Phase II Deployment businesses were up 5%, reflecting the wide release of 35 titles in three months ended December 31, 2015 compared to 33 such titles in the December 31, 2014 period. In addition, two blockbuster titles released in the three months ended December 31, 2015, accounted for the increase over the prior period in which no blockbuster films were released on our deployed systems. Revenues generated by our Services segment also increased 2% compared to the prior year quarter as a result of the higher VPFs earned by our Phase I and II deployment businesses.

Revenues at our Content & Entertainment segment decreased compared to the third quarter of last year, due mainly to a reduced content sales pipeline. However, revenues were up 23% versus the previous quarter. We continue to shift our strategy toward developing a portfolio of narrowcast OTT channels. At the end of fiscal year 2015, we launched CONtv in cooperation with Wizard World, Inc., and in the second quarter of fiscal year 2016 we launched the Dove Channel, which targets families and kids seeking high quality and family friendly content approved by the Dove Foundation. We continue to invest behind the growth of our OTT business.

Adjusted EBITDA (including the results of Phase 1 and Phase II Deployments segments) decreased 8% compared to the three months ended December 31, 2014. Adjusted EBITDA from our non-deployment businesses was $1.9 million during the three months ended December 31, 2015, compared to $3.7 million for the three months ended December 31, 2014. The decrease in EBITDA is primarily related to increased investment in our OTT business.

The Company made principal payments of $48.7 million on its long-term debt arrangements and made payments (net of borrowings) under the revolving credit facility of $2.4 million in the nine months ended December 31, 2015.

"The consolidated business on a revenue and EBITDA basis continued to perform well during this quarter, while we continued to review and rationalize costs and product mix in our base business," said Jeffrey Edell, Chief Financial Officer. "Importantly, product returns in our base business are well within our guidelines given our more disciplined and careful approach to sales placement and returns management. We continue to make prudent investments in our OTT channels to support rapid user and subscriber growth."

Adjusted EBITDA is defined by the Company for the periods presented to be earnings before interest, taxes, depreciation and amortization, other income, net, goodwill impairment, litigation related expenses and recoveries, stock-based compensation and expenses, restructuring, transition and acquisitions expenses, net, and certain other items. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation in the tables attached to this release of adjusted EBITDA to loss from continuing operations calculated in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted EBITDA is not a measurement of financial performance under GAAP and

 

may not be comparable to other similarly titled measures of other companies. The Company calculated and communicated adjusted EBITDA in the tables because the Company's management believes it is of importance to investors and lenders by providing additional information with respect to the performance of its fundamental business activities. Management presents adjusted EBITDA because it believes that adjusted EBITDA is a useful supplement to net loss as an indicator of operating performance. Management also believes that adjusted EBITDA is an industry-wide financial measure that is useful both to management and investors when evaluating the Company's performance and comparing our performance with the performance of our competitors. Management also uses adjusted EBITDA for planning purposes, as well as to evaluate the Company's performance because it believes that adjusted EBITDA more accurately reflects the Company's results, as it excludes certain items, such as stock-based compensation charges, that management believes are not indicative of the Company's operating performance. The Company believes that adjusted EBITDA is a performance measure and not a liquidity measure. Adjusted EBITDA should not be considered as an alternative to operating or net loss as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity.  In addition, adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows.  The Company's calculation of adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view adjusted EBITDA as an alternative to the GAAP operating measure of net income (loss). In addition, adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. Management does not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

Conference Call

Cinedigm will host a conference call to discuss its financial results at 4:30 p.m. EST on February 9, 2016.

For those unable to participate during the live broadcast, a replay will be available beginning February 9, 2016 at 7:30 p.m. EST, through February 14, 2016 at 11:59 p.m. EST. To access the replay, dial (855) 859-2056 (U.S.) or (404) 537-3406 (International) and use passcode: 45371231.

About Cinedigm

Cinedigm is a leading independent content distributor in the United States, with direct relationships with thousands of physical retail storefronts and digital platforms, including Wal-Mart, Target, iTunes, Netflix, and Amazon, as well as the national Video on Demand platform on cable television. The company's library of films and TV episodes encompasses award-winning documentaries from Docurama Films®, next-gen Indies from Flatiron Film Company®, acclaimed independent films and festival picks through partnerships with the Sundance Institute and Tribeca Films and a wide range of content from brand name suppliers, including Scholastic, NFL, Shout Factory, Hallmark, Jim Henson and more.

 

Additionally, given Cinedigm's infrastructure, technology, content and distribution expertise, the Company has rapidly become a leader in the quickly evolving over-the-top digital network business. Cinedigm's first channel, DOCURAMA, launched in May 2014, and is currently available on iOS, Roku, Xbox and Samsung, with additional platforms currently being rolled out. Cinedigm launched CONtv, a Comic Con branded channel in partnership with WIZARD WORLD, on March 3, 2015. The Company's third OTT channel, DOVE CHANNEL, launched on September 15, 2015 and is a digital streaming subscription service targeted to families and kids seeking high quality and family friendly content approved by Dove Foundation.

Cinedigm™ and Cinedigm Digital Cinema Corp™ are trademarks of Cinedigm Corp. www.cinedigm.com. [CIDM-E]

Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cinedigm officials during presentations about Cinedigm, along with Cinedigm's filings with the Securities and Exchange Commission, including Cinedigm's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act''). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates,'' "intends,'' "plans,'' "could," "might," "believes,'' "seeks," "estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cinedigm's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its technology, economic and market factors and the industries in which Cinedigm does business, among other things. These statements are not guarantees of future performance and Cinedigm undertakes no specific obligation or intention to update these statements after the date of this release.

For more information:

Jill Newhouse Calcaterra

Cinedigm

jcalcaterra@cinedigm.com

310/466-5135

 

 

CINEDIGM CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

CINEDIGM CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except for share and per share data)

		For the Three Months Ended December 31,
($ in thousands)		2015				2014
Loss from continuing operations		$	(1,976	)		$	(1,933	)
Add Back:
Income tax expense		470				—
Depreciation and amortization of property and equipment		9,428				9,400
Amortization of intangible assets		1,463				1,462
Interest expense, net		5,158				4,929
Other income, net		(274		)		31
Change in fair value of interest rate derivatives		(34		)		106
Stock-based compensation and expenses		350				447
Restructuring, transition and acquisition expenses, net		576				487
Professional fees pertaining to activist shareholder proposals and compliance		56				190
Litigation settlement (recovery) net of expenses		(225		)		578
Net income attributable to noncontrolling interest		(487		)		—
Adjusted EBITDA		$	14,505			$	15,697
Adjustments related to the Phase I and Phase II Deployments:
Depreciation and amortization of property and equipment		$	(9,055	)		$	(9,018	)
Amortization of intangible assets		(12		)		(11		)
Income from operations		(3,574		)		(2,983		)
Adjusted EBITDA from non-deployment businesses		$	1,864			$	3,685