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| 8-K - CURRENT REPORT - Liberated Syndication Inc. | lsyn_8k.htm |
Exhibit
99.1
Liberated
Syndication Reports Increased Revenue and Earnings for First
Quarter
Updated Guidance for Full Year 2018 Provided
Pittsburgh,
PA – May 18, 2018 – Liberated Syndication Inc. (OTCQB:
LSYN) announced in its 10-Q filing on May 15th and on the related
earnings conference call on May 16th that revenue for
the first quarter of 2018 had increased by 103% over the first
quarter in 2017 to $5.1 million. This increase was driven primarily
by the revenue addition from the acquisition of Pair Networks and
from a 15% growth in Libsyn’s Podcasting
subsidiary.
Operating
expenses for the first quarter of 2018 were $3.7 million versus
$3.3 million from the previous year’s first quarter,
resulting in net income of approximately $533,000. From a non-GAAP
perspective, taking non-cash expense into consideration, adjusted
EBITDA for the first quarter was $1.7 million versus $1.0 million
in the previous year’s first quarter.
With
the requirements of GAAP to value
deferred revenue from the acquisition at fair market value, the
Company modified its full year revenue projection to $20.0 million
from $23.0 million. A reduction of approximately $3 million in
deferred revenue, which would have been recognized by Pair
pre-acquisition, will not be recognized as revenue post acquisition
due to GAAP accounting rules.
The Company stated that it was continuing to project full year
EBITDA of $7.0 million.
Liberated
Syndication saw a strong increase in cash of $1.4 million during
the first quarter of 2018, which included $490,000 for the
repayment of debt and interest. The Company’s cash balance as
of March 31st was $6.6 million
and Management expects to see continued cash growth throughout
2018.
“Management expects podcasts to continue to grow in
popularity as they have become an integral part of brand strategy
along with websites, blogs and social media outlets,”
commented Chris Spencer, Liberated Syndication CEO. “We
expect 2018 to be a very good year for Liberated
Syndication’s podcast hosting business and with the addition
of Pair Networks, we anticipate strong growth across all aspects of
our business.”
Further
details about the Company's financial results are available in its
quarterly report on Form 10-Q which is available on the website of
the Securities and Exchange Commission at www.sec.gov. To
listen to a replay of the earnings conference call from May
16th,
please click here.
About Liberated Syndication
Libsyn is one of the world’s leading podcast hosting network
and has been providing publishers with distribution and
monetization services since 2004. In 2017 Libsyn delivered over 7.2
Billion downloads. We host over 3.96 Million media files for more
than 44,000 podcasts, including typically around 35% of the top 200
podcasts in iTunes. Podcast producers choose Libsyn to measure
their audience, deliver popular audio and video episodes,
distribute their content through smartphone Apps (iOS, and
Android), and monetize via premium subscription services and
advertising. We are a Pittsburgh based company with a world-class
team. Visit us on the web at www.libsyn.com.
Pair Networks, founded in 1996, is one of the oldest and most
experienced Internet hosting company providing a full range of
fast, powerful and reliable Web hosting services. Pair offers a
suite of Internet services from shared hosting to virtual private
servers to customized solutions with world-class 24x7 on-site
customer support. Based in Pittsburgh, Pair serves
businesses, bloggers, artists,
musicians, educational institutions and non-profit organizations
around the world. Visit us on the web at www.pair.com.
Investor Relations Contact
https://investor.libsyn.com
Art Batson
Arthur Douglas & Associates, Inc.
407-478-1120
Use of Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation, non-cash expense and
amortization ("Adjusted EBITDA") is not a measure of financial
performance under GAAP. Management believes Adjusted EBITDA, in
addition to operating profit, net income and other GAAP measures,
is a useful indicator of the Company's financial and operating
performance and its ability to generate cash flows from operations
that are available for taxes, capital expenditures and debt
service. A reconciliation of historical net income as reported in
accordance with GAAP to adjusted EBITDA is provided at the end of
this news release. The Company only provides EBITDA guidance on a
non-GAAP basis and does not provide reconciliations of such
forward-looking non-GAAP measures to GAAP due to the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliations, including adjustments that
could be made for restructuring, integration and
acquisition-related expenses, share-based compensation amounts,
adjustments to inventory and other charges, the amount of which,
based on historical experience, could be significant.
Legal Notice
“Forward-looking Statements” as defined in the Private
Securities litigation Reform Act of 1995 may be included in some of
the information or materials made available on this website. These
statements relate to future events or our future financial
performance. These statements are only predictions and may differ
materially from actual future results or events. We disclaim any
intention or obligation to revise any forward-looking statements
whether as a result of new information, future developments or
otherwise, except as required by law. There are important risk
factors that could cause actual results to differ from those
contained in forward-looking statements, including, but not limited
to, risks associated with our change in business strategy towards
more heavy reliance upon on our new talent segment and wholesale
channels, actions of regulators concerning our business operations
or trading markets for our securities, the extent to which we are
able to develop new services and markets for our services, our
significant reliance on third parties to distribute our content,
the level of demand and market acceptance of our services and the
"Risk Factors" set forth in our most recent SEC
filings.
LIBERATED SYNDICATION INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(Unaudited)
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Three Months
Ended
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March 31,
2018
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March 31,
2017
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|
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|
|
|
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Net Income
(loss)
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$532,915
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$(758,394)
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Add: Interest
expense
|
100,596
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--
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|
Income
tax expense
|
--
|
--
|
|
Non-cash
expenditures
|
318,000
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1,752,000
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Depreciation
and Amortization
|
766,900
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4,304
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Adjusted
EBITDA
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$1,718,411
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$997,910
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