RLJ Entertainment Posts $1.7 Million Q4 Profit10 Apr, 2013 By: Erik Gruenwedel
Distributor representing Acorn Media and Image Entertainment projects 10% revenue and earnings growth in 2013
RLJ Entertainment April 10 reported fourth-quarter (ended Dec. 31) net income of $1.7 million on revenue of $59.5 million.
Bethesda, Md.-based RLJ Entertainment was launched Oct. 3, 2012, following the acquisitions of Image Entertainment and Acorn Media Group by RLJ Companies, which is owned and operated by Black Entertainment Television (BET) founder Robert L. Johnson.
For the fiscal year, RLJ Entertainment reported a pro forma net loss of $20.7 million on revenue of $181 million. The pro forma adjusted pre-tax results for the full year 2012 were driven by lower net revenue and, to a lesser extent, higher bad debt related to the HMV bankruptcy filing in the United Kingdom in January 2013.
Revenue included higher contributions from Acorn Media in the wholesale and direct-to-consumer businesses and merchandise, offset by lower revenue at Image Entertainment due to smaller slate of film releases in 2012 versus 2011.
Prior to merger, Acorn Media and its subsidiaries (excluding Image) reported a net loss of $5.3 million from Jan. 1 to Oct. 2, 2012, on revenue of $57.8 million.
“While our results in 2012 did not meet our expectations, they are not representative of what we believe is the future potential of the company,” CEO Miguel Penella said in a statement. “We are in the early stages of building a business that we believe will capitalize on the significant transformation that is taking place in the video content industry.”
Penella said RLJ Entertainment recognized $6.2 million in pro forma costs synergies in 2012 through the combination of businesses. The company expects to generate 10% increase in revenue and net income in 2013.
“We believe we have a very strong pipeline of releases scheduled for [the year], and our direct-to-consumer digital channel, Acorn TV, saw a significant increase in subscribers over the course of the year,” he said. “Acorn TV is a terrific blueprint for how we will develop and monetize additional niche channels, which we believe will be a strong growth engine for our business going forward.”
RLJ Entertainment brands include Acorn (British TV), Image (stand-up comedy, feature films), One Village (urban), Acacia (fitness), Slingshot (faith), Athena (educational), Criterion (art films) and Madacy (gift sets).
A library of more than 5,000 titles is distributed in multiple formats, including DVD, Blu-ray Disc, digital download, digital streaming, broadcast television (including satellite and cable), theatrical and non-theatrical.