Rentrak Reports 4th Qtr. Earnings Jump; Fiscal 2001 Ends With $7.6 Million Loss5 Jun, 2001 By: Hive News
Portland, Oregon-based Rentrak Corporation reports consolidated net earnings of $1.5 million, or $0.12 per diluted share for the quarter ended March 31, 2001, compared with $193,149 or$0.02 per diluted share in the same period last year.
Total revenues for the fourth quarter were $30.5 million, up 3.4% from $29.5 million in the comparable quarter of the prior year.
Quarterly revenues for the company's core entertainment business included therecognition of revenue from Movie Gallery related to theamendment of the supply agreement between the two parties.
For the fiscal year ended March 31, 2001, the company reported a consolidated net loss of $7.6 million or $0.63 per diluted share, comparedwith consolidated net earnings of $3.4 million or $0.32 per diluted share inthe prior fiscal year.
The fiscal 2001 loss was driven by the previouslyannounced net loss of $9.6 million recorded in the company's second quarterended September 30, 2000. Total revenues for the year were $116.4 million, up2.6% from $113.4 million last year.
Paul Rosenbaum, Rentrak's chairman and c.e.o., said in a press release, "We are very pleased with the company's solid overall fourth quarter performance, especially that of Rentrak's core business, which produced excellent financial results. Excluding non-recurring items, Rentrak's core entertainment business produced a profit from continuing operations for the year."
Rosenbaum continued, "The current board of directors, elected on Sept. 19, 2000, has taken aggressive steps to improve the financialperformance of the company and improve its balance sheet. We believe thefourth quarter results demonstrate that the company is on the right track,particularly since this is the second straight quarter of substantially improved results following the losses for the quarter that ended the previous board's tenure.
"For the current fiscal year, which ends March 31, 2002, we presently anticipate earnings per diluted share in the $0.80 to $0.85 range. Theprojection includes the financial impact of the previously announcedrestructuring of Rentrak's relationship with its joint venture partner, Rentrak Japan," Rosenbaum added.
"We intend to stay very focused on the company's core business and leverage our information management competencies into the exciting new arena of electronic delivery of entertainment software with DigiTrak," Rosenbaum said.
Rentrak's DigiTrak is a software solution aimed at movie studios and other digital content providers with an online system to trackvideo-on-demand (VOD) movie and other software rentals, whether delivered through cable, telephone, satellite, private network or the Internet.
Rosenbaum continued, "We have made substantial progress in defining the reporting specifications and standards, and we look forward to workingwith content providers to develop a system that meets their managementinformation needs."
At its most recent meeting, the board of directors electedStanford C. Stoddard as a director. Stoddard is a financial consultantwith offices in Southfield, Michigan. In his 30-year banking career, Stoddard was president of Michigan National Bank of Detroit, chairman of the outstate Michigan National Bank, and founder/president and chairman of Michigan National Corporation, the parent bank holding company.
The board of directors also set August 16, 2001 as the date for the annual shareowners meeting.
Fourth-quarter revenues for 3PF, the company's third-party fulfillment subsidiary, increased to $6.9 million (including inter-company sales), up from $3.6 million for the same quarter in the previous year. 3PF reported anet loss of $282,538 or $0.02 per diluted Rentrak share for the most recent quarter.
Rentrak's fiscal 2001 results also include a net loss of$2.2 million or $0.18 per diluted share attributable to 3PF, due to investmentin infrastructure to support the fulfillment business. For the 12-month period ended March 31, 2001, revenues for 3PF were $23.4 million(including inter-company sales), up 102% from $11.6 million in the prior period. One of 3PF's major clients filed for Chapter 11 bankruptcy during May 2001, which, says Rentrak, may negatively impact 3PF's financial results duringfiscal 2002.