10% Top-line development pushed by sturdy Digital and Synchronization demand
Raises full 12 months steerage throughout the board
Continues to execute towards capital deployment goal of $100 million for M&A in fiscal 2023
NEW YORK, Nov. 08, 2022 (GLOBE NEWSWIRE) — Reservoir Media, Inc. (NASDAQ: RSVR) (“Reservoir” or the “Company”), an award-winning unbiased music firm, at the moment introduced monetary outcomes for the second fiscal quarter of 2023 ended September 30, 2022.
Recent Highlights:
- Revenue of $33.3 million, elevated 6% organically, or 10% together with acquisitions year-over-year
- Music Publishing income elevated 9% year-over-year
- Recorded Music income elevated by 11% year-over-year
- Operating Income of $6.6 million, decreased 15% year-over-year, pushed by increased administrative prices and better amortization on Acquired belongings
- OIBDA (“Operating Income Before Depreciation & Amortization”) of $12.0 million, a lower of 5% year-over-year, because of increased administrative prices
- Net Income of $4.5 million elevated 3% year-over-year
- Earnings per share of $0.07 versus $0.08 within the second quarter of fiscal 2022
- Adjusted EBITDA of $12.8 million, up 1% year-over-year
- Closed key publishing and recorded music catalog acquisitions together with Louis Prima and Voice of Beirut
- Signed a number of publishing and future offers together with KayGee of Naughty By Nature, Nick Lee, and Brit Taylor
- Expanded frontline recorded music roster with The Wandering Hearts
Management Commentary:
“Our second fiscal quarter financial results are a testament to the strength and consistency of our business model, and we have raised guidance for the year to reflect our momentum. We delivered double-digit top-line growth while also signing multiple high-profile creators to our talented roster and catalog across both our Recording and Publishing segments,” stated Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir. “The music industry continues to experience strong secular tailwinds, which should allow it to overcome any impacts from the macroeconomic downturn. We’re seeing a vibrant resurgence in live performances, growing opportunities for synchronization, and an increase in subscribers to streaming content services. Our value enhancement initiatives, combined with our diversified portfolio of award-winning songwriters and artists, strategically positions Reservoir to continue to benefit from industry momentum, while we concurrently work to generate considerable long-term value for our roster and shareholders. Our strategy continues to support strong, consistent financial performance, and we expect to execute on accretive business development opportunities that will further bolster our roster, leverage our scale, and create value for our shareholders.”
Second Quarter Fiscal 2023 Financial Results
| Summary Financials | Q2 FY23 | Q2 FY22 | Change | ||
| Total Revenue | $33.3 | $30.3 | 10% | ||
| Music Publishing Revenue | $24.1 | $22.1 | 9% | ||
| Recorded Music Revenue | $8.9 | $8.0 | 11% | ||
| Operating Income | $6.6 | $7.8 | (15)% | ||
| OIBDA | $12.0 | $12.5 | (5)% | ||
| Net Income | $4.5 | $4.4 | 3% | ||
| Adjusted EBITDA | $12.8 | $12.7 | 1% | ||
| (Table Notes: $ in tens of millions; Quarters ended September thirtieth; Unaudited; NM = Not significant) | |||||
Total income within the second quarter of fiscal 2023 elevated 10% to $33.3 million, in comparison with $30.3 million within the second quarter of fiscal 2022. The enhance was primarily pushed by sturdy development in each segments, highlighted by 11% development within the Recorded Music phase, inclusive of the acquisitions of varied catalogs.
Operating revenue within the second quarter of fiscal 2023 was $6.6 million in comparison with working revenue of $7.8 million within the second quarter of fiscal 2022. OIBDA within the second quarter of fiscal 2023 decreased 5% to $12.0 million, in comparison with $12.5 million within the prior 12 months quarter. The decreases in working revenue and OIBDA had been primarily pushed by increased administrative bills in comparison with the 12 months in the past interval. Adjusted EBITDA within the second quarter of fiscal 2023 was up 1% to $12.8 million, as sturdy income development from each segments was partially offset by increased administration bills, excluding non-cash bills like stock-based compensation. See beneath for calculations and reconciliations of OIBDA and Adjusted EBITDA to working revenue and web revenue, respectively.
Net revenue attributable to widespread stockholders within the second quarter of fiscal 2023 was $4.5 million, or $0.07 per share, in comparison with a web revenue attributable to widespread stockholders of $4.4 million, or $0.08 per share, within the year-ago quarter. The slight enhance in web revenue was pushed by increased income and beneficial properties on the truthful worth of swaps offset by increased value of income, increased promoting and administrative bills, in addition to increased amortization, curiosity expense, and revenue tax bills.
Second Quarter Fiscal 2023 Segment Review
| Music Publishing | Q2 FY23 | Q2 FY22 | Change | ||
| Revenue by Type | |||||
| Digital | $13.2 | $11.6 | 15% | ||
| Performance | $4.4 | $4.3 | 1% | ||
| Synchronization | $4.4 | $4.1 | 6% | ||
| Mechanical | $1.0 | $1.0 | 4% | ||
| Other | $1.0 | $1.1 | (6)% | ||
| Total Revenue | $24.1 | $22.1 | 9% | ||
| Operating Income | $3.1 | $5.4 | (43)% | ||
| OIBDA | $7.1 | $8.7 | (18)% | ||
| (Table Notes: $ in tens of millions; Quarters ended September thirtieth; Unaudited; NM = Not significant) | |||||
Music Publishing income within the second quarter of fiscal 2023 was $24.1 million, a rise of 9% in comparison with $22.1 million in final fiscal 12 months’s second quarter. Growth was pushed by sturdy efficiency in Digital and Synchronization revenues.
In the second quarter of fiscal 2023, Music Publishing OIBDA decreased 18% to $7.1 million, in comparison with $8.7 million within the 12 months in the past interval. Music Publishing OIBDA margin within the second quarter decreased from 39% to 29%. The decline in Music Publishing OIBDA margin was primarily pushed by increased administration bills together with non-cash bills.
| Recorded Music | Q2 FY23 | Q2 FY22 | Change | ||
| Revenue by Type | |||||
| Digital | $6.3 | $4.7 | 35% | ||
| Physical | $0.9 | $2.5 | (66%) | ||
| Neighboring Rights | $0.7 | $0.5 | 60% | ||
| Synchronization | $1.0 | $0.3 | 224% | ||
| Total Revenue | $8.9 | $8.0 | 11% | ||
| Operating Income | $3.5 | $2.4 | 46% | ||
| OIBDA | $4.8 | $3.8 | 27% | ||
| (Table Notes: $ in tens of millions; Quarters ended September thirtieth; Unaudited; NM = Not significant) | |||||
Recorded Music income within the second quarter of fiscal 2023 was $8.9 million, a rise of 11% in comparison with $8.0 million in final 12 months’s second quarter. This enchancment was largely pushed by belongings below the Tommy Boy label, and powerful Digital and Synchronization income development, however was partially offset by decrease Physical income.
In the second quarter of fiscal 2023, Recorded Music OIBDA elevated 27%, to $4.8 million, in comparison with $3.8 million within the second quarter of fiscal 2022. Recorded Music OIBDA margin within the second quarter elevated from 48% to 54%. The enhance in Recorded Music OIBDA margin was pushed by a shift in the direction of Digital and Synchronization revenues which carry decrease prices.
Balance Sheet and Liquidity
For the six months ended September 30, 2022, money offered by working actions was $11.6 million, a rise of $10.2 million in comparison with the identical interval final fiscal 12 months. The elevated money offered by working actions was primarily attributable to decreases in money used for working capital, together with royalty advances (web of recoupments) and better earnings.
As of September 30, 2022, Reservoir had money and money equivalents of $18.8 million and $67.4 million obtainable for borrowing below its revolving credit score facility, for complete obtainable liquidity of $86.2 million. Total debt was $278.0 million (web of $4.6 million of deferred financing prices) and Net Debt was $259.2 million (outlined as complete debt, much less money and equivalents and deferred financing prices). This compares to money and money equivalents of $17.8 million and $74.4 million obtainable for borrowing on the revolving credit score facility, for complete obtainable liquidity of $92.2 million, complete debt of $269.9 million (web of $5.8 million of deferred financing prices), and Net Debt of $252.0 million as of March 31, 2022. The Company’s leverage ratio at September 30, 2022 was 5.7x utilizing the trailing twelve month professional forma adjusted EBITDA of $47.3 million which displays the measurement per its credit score settlement.
Fiscal 2023 Outlook
Reservoir raised its monetary outlook vary for fiscal 12 months 2023, and expects the monetary outcomes for the 12 months ending March 31, 2023, to be as follows:
| Outlook | Guidance | Growth (at mid-point) |
| Revenue | $118 million – $122 million | 11% |
| Adjusted EBITDA | $45 million – $47 million | 11% |
Jim Heindlmeyer, Chief Financial Officer of Reservoir, commented “We are pleased with the financial performance and execution against our strategic initiatives in the second fiscal quarter. As a result of our strong execution and expected growth going forward, we are raising both revenue and adjusted EBITDA guidance for the full fiscal year. We will also continue to execute against our capital deployment target of $100 million toward strategic M&A for the year and will remain disciplined as we evaluate future accretive business development opportunities.”
Accounting Note
The second quarter and 6 months year-to-date fiscal 2022 outcomes included on this launch replicate the revisions described in Note 19 of the fiscal 2022 monetary statements filed on Form 10-Okay.
Conference Call Information
Reservoir is internet hosting a convention name for analysts and traders to debate its monetary outcomes for the second quarter of fiscal 2023 ended September 30, 2022, and its business outlook at 10:00 a.m. ET at the moment, on November 8, 2022. The convention name could be accessed through webcast within the investor relations part of the Company’s web site at https://investors.reservoir-media.com/news-and-events/events-and-presentations.
Interested events may additionally take part within the name utilizing the next registration hyperlink: https://register.vevent.com/register/BI5802bcfa7a1d4f2cb62bb6c36c6195fc. Once registered, individuals will obtain a dial-in quantity in addition to a PIN to enter the occasion. Participants might re-register for the convention name within the occasion of a misplaced dial-in quantity or PIN. Shortly after the conclusion of the convention name, a replay of the audio webcast can be obtainable within the investor relations part of Reservoir’s web site for 30 days after the occasion.
About Reservoir Media, Inc.
Reservoir is an unbiased music firm primarily based in New York City and with places of work in Los Angeles, Nashville, Toronto, London, and Abu Dhabi. Reservoir is the primary female-founded and led publicly traded unbiased music firm within the U.S. Founded as a family-owned music writer in 2007, Reservoir has grown to symbolize over 140,000 copyrights and 36,000 grasp recordings with titles relationship way back to 1900 and lots of of #1 releases worldwide. Reservoir incessantly holds an everyday Top 10 U.S. Market Share in response to Billboard’s Publishers Quarterly, was twice named Publisher of the Year by Music Business Worldwide’s The A&R Awards, and gained Independent Publisher of the Year at each the 2020 and 2022 Music Week Awards.
Reservoir additionally represents a mess of recorded music by Chrysalis Records, Tommy Boy Records, and Philly Groove Records and manages artists by its ventures with Blue Raincoat Music and Big Life Management.
Forward-Looking Statements
This press launch accommodates forward-looking statements throughout the which means of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, together with statements with respect to the monetary situation, outcomes of operations, earnings outlook and prospects of Reservoir. Forward-looking statements are primarily based on the present expectations and beliefs of the administration of Reservoir and are inherently topic to numerous dangers, uncertainties and assumptions and their potential results. There could be no assurance that future developments can be these which were anticipated. These forward-looking statements contain numerous dangers, uncertainties or different assumptions which will trigger precise monetary situation, outcomes of operations, earnings and/or prospects to be materially completely different from these expressed or implied by these forward-looking statements. Any statements that seek advice from projections, forecasts or different characterizations of future occasions or circumstances, together with any underlying assumptions, are forward-looking statements. In addition, forward-looking statements are usually recognized by phrases equivalent to “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and different comparable phrases and expressions, however the absence of those phrases doesn’t imply {that a} assertion will not be forward-looking. The forward-looking statements on this press launch might embody, amongst others:
- expectations concerning Reservoir’s methods and future monetary efficiency, together with its future business plans or targets, potential efficiency and alternatives and opponents, revenues, merchandise, pricing, working bills, market developments, liquidity, money flows and makes use of of money, capital expenditures;
- Reservoir’s potential to spend money on development initiatives and pursue acquisition alternatives;
- the flexibility to attain the anticipated advantages of the business mixture, which can be affected by, amongst different issues, competitors and the flexibility of Reservoir to develop and handle development profitably and retain its key workers;
- the lack to take care of the itemizing of Reservoir’s widespread inventory on the Nasdaq Stock Market LLC and restricted liquidity and buying and selling of Reservoir’s securities;
- geopolitical threat and modifications in relevant legal guidelines or laws;
- the likelihood that Reservoir could also be adversely affected by different financial, business and/or aggressive elements;
- dangers associated to the natural and inorganic development of Reservoir’s business and the timing of anticipated business milestones;
- threat that the COVID-19 pandemic, and native, state and federal responses to addressing the COVID-19 pandemic, might have an adversarial impact on Reservoir’s business operations, in addition to its monetary situation and outcomes of operations; and
- litigation and regulatory enforcement dangers, together with the diversion of administration time and a spotlight and the extra prices and calls for on Reservoir’s sources.
Should a number of of those dangers or uncertainties materialize or ought to any of the assumptions made by the administration of Reservoir show incorrect, precise outcomes might range in materials respects from these projected in these forward-looking statements.
Except to the extent required by relevant regulation or regulation, Reservoir undertakes no obligation to replace these forward-looking statements to replicate occasions or circumstances after the date of this press launch or to replicate the incidence of unanticipated occasions. For a extra detailed dialogue of dangers and different elements that may affect forward-looking statements, see Reservoir’s filings with the SEC obtainable on the SEC’s web site at www.sec.gov or Reservoir’s web site at www.reservoir-media.com.
Reservoir Media, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
Three and Six Months Ended September 30, 2022 versus September 30, 2021
(Unaudited)
(Expressed in U.S. {dollars})
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||
| 2022 | 2021 | % Change | 2022 | 2021 | % Change | |||||||||||||||||
| Revenues | $ | 33,265,711 | $ | 30,273,164 | 10 | % | $ | 57,544,481 | $ | 46,905,795 | 23 | % | ||||||||||
| Costs and bills: | ||||||||||||||||||||||
| Cost of income | 13,940,035 | 12,091,903 | 15 | % | 23,915,166 | 19,784,290 | 21 | % | ||||||||||||||
| Amortization and depreciation | 5,384,341 | 4,757,128 | 13 | % | 10,745,844 | 8,816,851 | 22 | % | ||||||||||||||
| Administration bills | 7,373,880 | 5,654,840 | 30 | % | 14,995,490 | 10,319,670 | 45 | % | ||||||||||||||
| Total prices and bills | 26,698,256 | 22,503,871 | 19 | % | 49,656,500 | 38,920,811 | 28 | % | ||||||||||||||
| Operating revenue | 6,567,455 | 7,769,293 | (15 | )% | 7,887,981 | 7,984,984 | (1 | )% | ||||||||||||||
| Interest expense | (3,504,818 | ) | (2,728,825 | ) | (6,480,878 | ) | (5,507,877 | ) | ||||||||||||||
| Gain on international trade | 173,343 | 193,260 | 280,686 | 174,939 | ||||||||||||||||||
| Gain on truthful worth of swaps | 2,932,443 | 677,730 | 4,502,780 | 1,225,218 | ||||||||||||||||||
| Interest and different revenue | 34 | 287 | 47 | 355 | ||||||||||||||||||
| Income earlier than revenue taxes | 6,168,457 | 5,911,745 | 6,190,616 | 3,877,619 | ||||||||||||||||||
| Income tax expense | 1,682,369 | 1,539,883 | 1,687,707 | 1,012,738 | ||||||||||||||||||
| Net revenue | 4,486,088 | 4,371,862 | 4,502,909 | 2,864,881 | ||||||||||||||||||
| Net loss attributable to noncontrolling pursuits | 50,845 | 77,508 | 110,063 | 131,491 | ||||||||||||||||||
| Net revenue attributable to Reservoir Media, Inc. | $ | 4,536,933 | $ | 4,449,370 | $ | 4,612,972 | $ | 2,996,372 | ||||||||||||||
| Earnings per widespread share: | ||||||||||||||||||||||
| Basic | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.06 | ||||||||||||||
| Diluted | $ | 0.07 | $ | 0.08 | $ | 0.07 | $ | 0.06 | ||||||||||||||
| Weighted common widespread shares excellent: | ||||||||||||||||||||||
| Basic | 64,349,375 | 53,641,984 | 64,286,797 | 41,159,228 | ||||||||||||||||||
| Diluted | 64,789,384 | 58,992,972 | 64,786,947 | 52,231,699 | ||||||||||||||||||
Reservoir Media, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 2022 versus March 31, 2022
(Unaudited)
(Expressed in U.S. {dollars})
| September 30, 2022 |
March 31, 2022 |
|||||||
| Assets | ||||||||
| Current belongings | ||||||||
| Cash and money equivalents | $ | 18,821,264 | $ | 17,814,292 | ||||
| Accounts receivable | 26,392,359 | 25,210,936 | ||||||
| Current portion of royalty advances | 13,885,373 | 12,375,420 | ||||||
| Inventory and pay as you go bills | 5,951,766 | 4,041,471 | ||||||
| Total present belongings | 65,050,762 | 59,442,119 | ||||||
| Intangible belongings, web | 558,986,522 | 571,383,855 | ||||||
| Equity methodology and different investments | 2,128,854 | 3,912,978 | ||||||
| Royalty advances, web of present portion | 48,584,246 | 44,637,334 | ||||||
| Property, plant and tools, web | 413,908 | 342,080 | ||||||
| Operating lease proper of use belongings, web | 2,040,424 | – | ||||||
| Fair worth of swap belongings | 8,494,582 | 3,991,802 | ||||||
| Other belongings | 839,551 | 559,922 | ||||||
| Total belongings | $ | 686,538,849 | $ | 684,270,090 | ||||
| Liabilities | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 4,032,800 | $ | 4,436,943 | ||||
| Royalties payable | 25,079,061 | 21,235,815 | ||||||
| Accrued payroll | 705,786 | 1,938,281 | ||||||
| Deferred income | 3,624,611 | 1,103,664 | ||||||
| Other present liabilities | 3,746,378 | 12,272,577 | ||||||
| Income taxes payable | 1,772,228 | 77,496 | ||||||
| Total present liabilities | 38,960,864 | 41,064,776 | ||||||
| Secured line of credit score | 278,007,879 | 269,856,169 | ||||||
| Deferred revenue taxes | 23,573,739 | 24,884,170 | ||||||
| Operating lease liabilities, web of present portion | 1,491,606 | – | ||||||
| Other liabilities | 898,885 | 1,012,651 | ||||||
| Total liabilities | 342,932,973 | 336,817,766 | ||||||
| Contingencies and commitments | ||||||||
| Shareholders’ Equity | ||||||||
| Preferred inventory | – | – | ||||||
| Common inventory | 6,437 | 6,415 | ||||||
| Additional paid-in capital | 336,959,175 | 335,372,981 | ||||||
| Retained earnings | 16,826,491 | 12,213,519 | ||||||
| Accumulated different complete loss | (11,133,631 | ) | (1,198,058 | ) | ||||
| Total Reservoir Media, Inc. shareholders’ fairness | 342,658,472 | 346,394,857 | ||||||
| Noncontrolling curiosity | 947,404 | 1,057,467 | ||||||
| Total shareholders’ fairness | 343,605,876 | 347,452,324 | ||||||
| Total liabilities and shareholders’ fairness | $ | 686,538,849 | $ | 684,270,090 | ||||
Supplemental Disclosures Regarding Non-GAAP Financial Measures
This press launch consists of sure monetary info, equivalent to OIBDA, OIBDA margin, EBITDA, Adjusted EBITDA, Pro Forma Adjusted EBITDA and Net Debt, which has not been ready in accordance with United States usually accepted accounting ideas (“GAAP”). Reservoir’s administration makes use of these non-GAAP monetary measures to guage Reservoir’s operations, measure its efficiency and make strategic choices. Reservoir believes that using these non-GAAP monetary measures gives helpful info to traders and others in understanding Reservoir’s outcomes of operations and developments in the identical method as Reservoir’s administration and in evaluating Reservoir’s monetary measures as in comparison with the monetary measures of different comparable firms, lots of which current comparable non-GAAP monetary measures. However, these non-GAAP monetary measures are topic to inherent limitations as they replicate the train of judgments by Reservoir’s administration about which gadgets are excluded or included in figuring out these non-GAAP monetary measures and, subsequently, shouldn’t be thought-about as an alternative to web revenue, working revenue or another working efficiency measures calculated in accordance with GAAP. Using such non-GAAP monetary measures in isolation to investigate Reservoir’s business would have materials limitations as a result of the calculations are primarily based on the subjective willpower of Reservoir’s administration concerning the character and classification of occasions and circumstances. In addition, though different firms in Reservoir’s trade might report measures titled OIBDA, OIBDA margin, Adjusted EBITDA and Net Debt, or comparable measures, such non-GAAP monetary measures could also be calculated in a different way from how Reservoir calculates such non-GAAP monetary measures, which reduces their general usefulness as comparative measures. Because of those limitations, such non-GAAP monetary measures must be thought-about alongside different monetary efficiency measures and different monetary outcomes introduced in accordance with GAAP. You can discover the reconciliation of those non‐GAAP monetary measures to the closest comparable GAAP measures within the tables beneath.
OIBDA
Reservoir evaluates working efficiency primarily based on a number of elements, together with its main monetary measure of working revenue earlier than non-cash depreciation of tangible belongings and non-cash amortization of intangible belongings (“OIBDA”). Reservoir considers OIBDA to be an essential indicator of the operational strengths and efficiency of its companies and believes this non-GAAP monetary measure gives helpful info to traders as a result of it removes the numerous affect of amortization from Reservoir’s outcomes of operations. However, a limitation of using OIBDA as a efficiency measure is that it doesn’t replicate the periodic prices of sure capitalized tangible and intangible belongings utilized in producing revenues in Reservoir’s companies and different non-operating revenue (loss). Accordingly, OIBDA must be thought-about along with, not as an alternative to, working revenue, web revenue attributable to us and different measures of economic efficiency reported in accordance with GAAP. In addition, our definition of OIBDA might differ from equally titled measures utilized by different firms. OIBDA Margin is outlined as OIBDA as a proportion of income.
EBITDA and Adjusted EBITDA
EBITDA is outlined as earnings (web revenue or loss) earlier than web curiosity expense, revenue tax (profit) expense, non-cash depreciation of tangible belongings and non-cash amortization of intangible belongings and is utilized by administration to measure working efficiency of the business. Adjusted EBITDA, along with adjusting web revenue to exclude revenue tax expense, curiosity expense and depreciation and amortization, additional adjusts web revenue by excluding gadgets or bills equivalent to, amongst others, (1) any non-cash fees (together with any impairment fees), (2) any web acquire or loss on international trade, (3) any web acquire or loss ensuing from rate of interest swaps, (4) equity-based compensation expense and (5) sure uncommon or non-recurring gadgets.
Adjusted EBITDA is a key measure utilized by Reservoir’s administration to grasp and consider working efficiency, generate future working plans, and make strategic choices concerning the allocation of capital. However, sure limitations on using Adjusted EBITDA embody, amongst others, (1) it doesn’t replicate the periodic prices of sure capitalized tangible and intangible belongings utilized in producing income for Reservoir’s business, (2) it doesn’t replicate the numerous curiosity expense or money necessities essential to service curiosity or principal funds on Reservoir’s indebtedness and (3) it doesn’t replicate each money expenditure, future necessities for capital expenditures or contractual commitments. In explicit, Adjusted EBITDA measure provides again sure non-cash, uncommon or non-recurring fees which are deducted in calculating web revenue; nevertheless, these are bills which will recur, range drastically and are tough to foretell. In addition, Adjusted EBITDA will not be the identical as web revenue or money move offered by working actions as these phrases are outlined by GAAP and doesn’t essentially point out whether or not money flows can be enough to fund money wants.
Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA is outlined as Adjusted EBITDA plus the professional forma EBITDA of belongings acquired within the earlier 4 quarters representing the earnings of these belongings for the portion of the prior 4 quarters earlier than the Company’s acquisition of such belongings. This is the measurement outlined within the Company’s credit score settlement. The Company believes that together with the supplemental changes which are made to calculate Pro Forma Adjusted EBITDA gives further info to traders concerning the Company’s potential to adjust to its monetary covenants in addition to offering significant details about the historic earnings of acquired belongings. Pro Forma Adjusted EBITDA will not be outlined by GAAP. Pro Forma Adjusted EBITDA will not be a measure of economic situation, liquidity or profitability, and shouldn’t be thought-about as an alternative choice to web revenue decided in accordance with GAAP or working money flows decided in accordance with GAAP. Additionally, Pro Forma Adjusted EBITDA will not be meant to be a measure of free money move for administration’s discretionary use, because it doesn’t take note of sure gadgets equivalent to curiosity and principal funds on our indebtedness, depreciation and amortization expense (as a result of the Company makes use of capital belongings, depreciation and amortization expense is a mandatory component of our prices and talent to generate income), working capital wants, tax funds (as a result of the fee of taxes is a part of our operations, it’s a mandatory component of our prices and talent to function), non-recurring bills and capital expenditures.
Net Debt
Reservoir defines Net Debt as complete debt, much less money and equivalents and deferred financing prices.
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Operating Income to OIBDA
Three and Six Months Ended September 30, 2022 versus September 30, 2021
(Unaudited)
(Dollars in 1000’s)
| For the Three Months Ended September 30, | For the Six Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating Income | $ | 6,567 | $ | 7,769 | $ | 7,888 | $ | 7,985 | ||||||||
| Amortization and Depreciation Expense | 5,384 | 4,757 | 10,746 | 8,817 | ||||||||||||
| OIBDA | $ | 11,951 | $ | 12,526 | $ | 18,634 | $ | 16,802 | ||||||||
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Music Publishing Segment Reporting Operating Income to OIBDA
Three and Six Months Ended September 30, 2022 versus September 30, 2021
(Unaudited)
(Dollars in 1000’s)
| For the Three Months Ended September 30, | For the Six Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating Income | $ | 3,074 | $ | 5,368 | $ | 2,813 | $ | 5,598 | ||||||||
| Amortization and Depreciation Expense | 4,010 | 3,309 | 7,964 | 6,478 | ||||||||||||
| OIBDA | $ | 7,084 | $ | 8,677 | $ | 10,777 | $ | 12,076 | ||||||||
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Recorded Music Segment Reporting Operating Income to OIBDA
Three and Six Months Ended September 30, 2022 versus September 30, 2021
(Unaudited)
(Dollars in 1000’s)
| For the Three Months Ended September 30, | For the Six Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Operating Income | $ | 3,476 | $ | 2,385 | $ | 5,058 | $ | 2,311 | ||||||||
| Amortization and Depreciation Expense | 1,353 | 1,423 | 2,737 | 2,289 | ||||||||||||
| OIBDA | $ | 4,829 | $ | 3,808 | $ | 7,795 | $ | 4,600 | ||||||||
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Net Income to Adjusted EBITDA
Three and Six Months Ended September 30, 2022 versus September 30, 2021
(Unaudited)
(Dollars in 1000’s)
| For the Three Months Ended September 30, | For the Six Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net Income | $ | 4,486 | $ | 4,372 | $ | 4,503 | $ | 2,865 | ||||||||
| Income Tax Expense | 1,682 | 1,540 | 1,688 | 1,013 | ||||||||||||
| Interest Expense | 3,505 | 2,729 | 6,481 | 5,508 | ||||||||||||
| Amortization and Depreciation | 5,384 | 4,757 | 10,746 | 8,817 | ||||||||||||
| EBITDA | 15,057 | 13,398 | 23,418 | 18,203 | ||||||||||||
| Gain on Foreign Exchange(a) | (173 | ) | (193 | ) | (281 | ) | (175 | ) | ||||||||
| Gain on Fair Value of Swaps(b) | (2,932 | ) | (678 | ) | (4,503 | ) | (1,225 | ) | ||||||||
| Non-cash Share-based Compensation(c) | 851 | 192 | 1,617 | 217 | ||||||||||||
| Adjusted EBITDA | $ | 12,803 | $ | 12,719 | $ | 20,251 | $ | 17,020 | ||||||||
(a) Reflects the (acquire) or loss on international trade fluctuations.
(b) Reflects the non-cash acquire on the mark-to-market of rate of interest swaps.
(c) Reflects non-cash share-based compensation expense associated to the Reservoir Media, Inc. 2022 Omnibus Incentive Plan.
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Net Income to Pro Forma Adjusted EBITDA
Twelve Months Ended September 30, 2022
(Unaudited)
(Dollars in 1000’s)
| TTM 9/30/22 | ||||
| Net Income | $ | 14,766 | ||
| Income Tax Expense | 4,927 | |||
| Interest Expense | 11,844 | |||
| Amortization and Depreciation | 20,951 | |||
| EBITDA | 52,488 | |||
| Gain on Foreign Exchange(a) | (436 | ) | ||
| Gain on Fair Value of Swaps(b) | (11,835 | ) | ||
| Non-cash Share-based Compensation(c) | 4,290 | |||
| Interest and Other Income | (11 | ) | ||
| Adjusted EBITDA | 44,496 | |||
| Pro forma EBITDA on Acquisitions(d) | 2,810 | |||
| Pro forma Adjusted EBITDA | $ | 47,306 | ||
(a) Reflects the acquire on international trade fluctuations.
(b) Reflects the non-cash acquire on the mark-to-market of rate of interest swaps.
(c) Reflects non-cash share-based compensation expense associated to the Reservoir Media, Inc. 2022 Omnibus Incentive Plan.
(d) Reflects the professional forma EBITDA on acquisitions for the portion of the prior twelve months that aren’t included in Reservoir’s monetary outcomes.
Source: Reservoir Media, Inc.
