TORONTO, Ontario, February 28, 2014 – Mood Media Corporation (ISIN: CA61534J1057) (TSX: MM) (LSE AIM: MM) (“Mood Media” or the “Company”) today announced preliminary financial results for the fourth quarter and full year ended December 31, 2013. The Company also announced that it plans to host a conference call on March 6, 2014 at 8:30 a.m. EST to discuss the financial results for its fourth quarter and full year 2013.
For the fourth quarter of 2013, preliminary revenues are expected to total approximately $132 million, which is consistent with the $132 million in revenues that Mood Media reported for the fourth quarter of 2012 and a 5% improvement compared with third quarter 2013 revenues of $126 million. The sequential improvement in revenues was largely attributable to the Company’s improved performance for sale of goods revenues related to new audio/visual systems implementations.
Fourth quarter 2013 preliminary EBITDA is expected to be approximately $24 million compared with $28.0 million reported in the fourth quarter of 2012 and $25.9 million reported in the third quarter of 2013. EBITDA in the fourth quarter was impacted by more than $4 million in non-recurring expenses as well as by lower equipment gross margins resulting from a high level of large-systems installations that were sold in prior periods and installed in the fourth quarter. The Company has since de-emphasized this equipment activity.
In addition, the previously announced agreement between the Company and its U.S. affiliates that was entered into in July 2013 in order to permit the integration of Muzak and DMX led to higher than anticipated expenses in the fourth quarter and will recur in future quarters. These incremental expenses reflect the costs related to transferring certain revenues to independent Muzak affiliates. Going forward, Mood expects to incur a quarterly incremental expense of approximately $750 thousand for the DMX account base that has now migrated to independent affiliates.
Both preliminary revenues and EBITDA are subject to Mood Media’s normal year-end accounting procedures and audit adjustments. Steve Richards, President and CEO of Mood Media, commented “Our entire organization has been focused on driving the significant change at Mood necessary to build a strong foundation for future growth. We strongly believe that Mood is making swift and important progress in implementing its operating strategy to better position the business for long-term growth and profitability. We look forward to realizing the benefit of these changes and efficiencies in the back half of 2014 and believe that these efforts, coupled with the continued execution of our Wave Programs and other operating initiatives, position Mood for enhanced performance.”
The Company also announced that it will hold a conference call to discuss its fourth quarter and full year 2013 financial results with the investment community on Thursday March 6 at 8:30 a.m. EST.
Participants will include Steve Richards, President & Chief Executive Officer, and Tom Garrett, Executive Vice-President and Chief Financial Officer.
To participate, please dial 416-764-8658 or toll free at 1-888-886-7786. A replay will be available following the teleconference by dialing 416-764-8691 or toll free at 1-877-674-6060 and entering passcode 035960.