Creative Realities Reports Fiscal 2024 Fourth Quarter Results
Creative Realities (NASDAQ: CREX) reported its Q4 and full-year 2024 financial results, showing mixed performance. Q4 revenue decreased to $11.0 million from $14.5 million year-over-year, primarily due to lower hardware revenue from project timing. Service revenue grew 6% to $7.2 million.
Key Q4 metrics include gross profit of $4.9 million (44.2% margin), down from $7.5 million (51.8% margin) in Q4 2023. The company reported a net loss of $2.8 million or $(0.27) per share, compared to net income of $1.4 million or $0.14 per share in the prior year. Adjusted EBITDA was $0.5 million versus $2.8 million year-over-year.
Annual Recurring Revenue (ARR) reached $16.8 million, up from $16.3 million at end of 2023. The company's cash position was $1.0 million with outstanding debt of $13.0 million as of December 31, 2024. CRI launched its new AdLogic CPM+ platform, aiming to enhance in-store media experience and generate additional SaaS revenue.
Creative Realities (NASDAQ: CREX) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, mostrando una performance mista. I ricavi del quarto trimestre sono diminuiti a 11,0 milioni di dollari rispetto ai 14,5 milioni di dollari dell'anno precedente, principalmente a causa di una riduzione dei ricavi hardware dovuta alla tempistica dei progetti. I ricavi da servizi sono aumentati del 6% a 7,2 milioni di dollari.
I principali indicatori del quarto trimestre includono un utile lordo di 4,9 milioni di dollari (margine del 44,2%), in calo rispetto ai 7,5 milioni di dollari (margine del 51,8%) del quarto trimestre 2023. L'azienda ha riportato una perdita netta di 2,8 milioni di dollari, ovvero $(0,27) per azione, rispetto a un utile netto di 1,4 milioni di dollari, ovvero $0,14 per azione nell'anno precedente. L'EBITDA rettificato è stato di 0,5 milioni di dollari rispetto ai 2,8 milioni di dollari dell'anno precedente.
Il fatturato annuale ricorrente (ARR) ha raggiunto 16,8 milioni di dollari, in aumento rispetto ai 16,3 milioni di dollari alla fine del 2023. La posizione di cassa dell'azienda era di 1,0 milione di dollari con un debito in sospeso di 13,0 milioni di dollari al 31 dicembre 2024. CRI ha lanciato la sua nuova piattaforma AdLogic CPM+, mirata a migliorare l'esperienza dei media in-store e generare ulteriori ricavi SaaS.
Creative Realities (NASDAQ: CREX) informó sus resultados financieros del cuarto trimestre y del año completo 2024, mostrando un rendimiento mixto. Los ingresos del cuarto trimestre disminuyeron a $11.0 millones desde $14.5 millones en comparación con el año anterior, principalmente debido a menores ingresos por hardware por la programación de proyectos. Los ingresos por servicios crecieron un 6% a $7.2 millones.
Las métricas clave del cuarto trimestre incluyen una ganancia bruta de $4.9 millones (margen del 44.2%), por debajo de $7.5 millones (margen del 51.8%) en el cuarto trimestre de 2023. La compañía reportó una pérdida neta de $2.8 millones o $(0.27) por acción, en comparación con una ganancia neta de $1.4 millones o $0.14 por acción en el año anterior. El EBITDA ajustado fue de $0.5 millones frente a $2.8 millones año tras año.
Los Ingresos Anuales Recurrentes (ARR) alcanzaron $16.8 millones, un aumento desde $16.3 millones a finales de 2023. La posición de efectivo de la empresa era de $1.0 millón con una deuda pendiente de $13.0 millones al 31 de diciembre de 2024. CRI lanzó su nueva plataforma AdLogic CPM+, con el objetivo de mejorar la experiencia de medios en la tienda y generar ingresos adicionales de SaaS.
Creative Realities (NASDAQ: CREX)는 2024년 4분기 및 연간 재무 결과를 발표하며 혼합된 성과를 보였습니다. 4분기 수익은 지난해 1450만 달러에서 1100만 달러로 감소했으며, 이는 주로 프로젝트 일정에 따른 하드웨어 수익 감소 때문입니다. 서비스 수익은 6% 증가하여 720만 달러에 달했습니다.
4분기 주요 지표로는 490만 달러의 총 이익(44.2% 마진)이 있으며, 이는 2023년 4분기의 750만 달러(51.8% 마진)에서 감소한 수치입니다. 회사는 280만 달러의 순손실 또는 주당 $(0.27)을 기록했으며, 이는 전년도 140만 달러의 순이익 또는 주당 $0.14와 비교됩니다. 조정된 EBITDA는 50만 달러로 지난해 280만 달러에 비해 감소했습니다.
연간 반복 수익(ARR)은 1680만 달러에 도달했으며, 2023년 말 1630만 달러에서 증가했습니다. 회사의 현금 보유액은 100만 달러였으며, 2024년 12월 31일 기준으로 미지급 부채는 1300만 달러입니다. CRI는 매장 내 미디어 경험을 향상하고 추가 SaaS 수익을 창출하기 위해 새로운 AdLogic CPM+ 플랫폼을 출시했습니다.
Creative Realities (NASDAQ: CREX) a annoncé ses résultats financiers pour le quatrième trimestre et l'année complète 2024, montrant des performances mitigées. Les revenus du quatrième trimestre ont diminué à 11,0 millions de dollars contre 14,5 millions de dollars l'année précédente, principalement en raison d'une baisse des revenus matériels liée à la planification des projets. Les revenus de services ont augmenté de 6 % pour atteindre 7,2 millions de dollars.
Les principaux indicateurs du quatrième trimestre incluent un bénéfice brut de 4,9 millions de dollars (marge de 44,2 %), en baisse par rapport à 7,5 millions de dollars (marge de 51,8 %) au quatrième trimestre 2023. L'entreprise a enregistré une perte nette de 2,8 millions de dollars ou $(0,27) par action, contre un bénéfice net de 1,4 million de dollars ou $0,14 par action l'année précédente. L'EBITDA ajusté était de 0,5 million de dollars contre 2,8 millions de dollars d'une année sur l'autre.
Les revenus récurrents annuels (ARR) ont atteint 16,8 millions de dollars, en hausse par rapport à 16,3 millions de dollars à la fin de 2023. La position de trésorerie de l'entreprise était de 1,0 million de dollars avec une dette en cours de 13,0 millions de dollars au 31 décembre 2024. CRI a lancé sa nouvelle plateforme AdLogic CPM+, visant à améliorer l'expérience des médias en magasin et à générer des revenus SaaS supplémentaires.
Creative Realities (NASDAQ: CREX) hat seine finanziellen Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht und zeigt eine gemischte Leistung. Die Einnahmen im vierten Quartal sanken auf 11,0 Millionen Dollar von 14,5 Millionen Dollar im Vorjahr, hauptsächlich aufgrund geringerer Hardware-Einnahmen aufgrund der Projektzeitplanung. Die Service-Einnahmen stiegen um 6% auf 7,2 Millionen Dollar.
Wichtige Kennzahlen für das vierte Quartal sind ein Bruttogewinn von 4,9 Millionen Dollar (44,2% Marge), ein Rückgang von 7,5 Millionen Dollar (51,8% Marge) im vierten Quartal 2023. Das Unternehmen berichtete von einem Nettoverlust von 2,8 Millionen Dollar oder $(0,27) pro Aktie, verglichen mit einem Nettogewinn von 1,4 Millionen Dollar oder $0,14 pro Aktie im Vorjahr. Das bereinigte EBITDA betrug 0,5 Millionen Dollar im Vergleich zu 2,8 Millionen Dollar im Vorjahr.
Der wiederkehrende Jahresumsatz (ARR) erreichte 16,8 Millionen Dollar, ein Anstieg von 16,3 Millionen Dollar Ende 2023. Die Liquiditätsposition des Unternehmens betrug 1,0 Millionen Dollar bei einer ausstehenden Verschuldung von 13,0 Millionen Dollar zum 31. Dezember 2024. CRI hat seine neue AdLogic CPM+ Plattform eingeführt, die darauf abzielt, das Medienerlebnis im Geschäft zu verbessern und zusätzliche SaaS-Einnahmen zu generieren.
- Service revenue grew 6% year-over-year to $7.2M
- ARR increased to $16.8M from $16.3M year-over-year
- Hardware gross margin improved to 26.3% from 22.5%
- Sales and marketing expenses decreased to $1.4M from $1.6M
- Debt reduced to $13.0M from $15.1M at start of fiscal year
- Q4 revenue declined 24% to $11.0M from $14.5M
- Net loss of $2.8M compared to net income of $1.4M year-over-year
- Adjusted EBITDA decreased to $0.5M from $2.8M
- Service gross margin dropped to 53.9% from 85.2%
- Cash position decreased to $1.0M from $2.9M year-over-year
- Operating loss of $0.7M versus operating income of $2.0M in prior year
Insights
Creative Realities' Q4 2024 results reflect significant headwinds with
The revenue decline primarily stems from hardware sales timing issues, dropping to
The balance sheet shows mixed signals - cash decreased to
While management emphasizes the recent AdLogic CPM+ platform launch and projects 2025 as a record year, investors should approach this guidance cautiously given the significant Q4 performance declines across multiple metrics. The company's transition toward higher-margin SaaS and advertising revenue represents the right strategic direction, but execution in the hardware-to-services transition remains challenging.
Creative Realities' shift toward a software-centric model through its AdLogic CPM+ platform launch represents a technically sound strategic pivot. This integrated digital advertising solution targets critical industry pain points - delivering targeted campaigns at reduced costs while creating additional revenue streams through advertising and SaaS components.
The
The digital signage and AdTech market continues evolving toward integrated solutions combining hardware, software, and analytics. Creative Realities' platform approach aligns with this trend, but faces intense competition from both established players and nimble startups. Their technology must deliver demonstrable ROI advantages to overcome sales cycle challenges evident in the recent hardware deployment delays.
The technical architecture combining digital signage with advertising technology creates potential data monetization opportunities beyond traditional service revenue. However, the company needs to address several critical technology challenges: scalability at reduced cost structures, integration capabilities with diverse retail systems, and development of AI-enhanced targeting to maximize advertising value.
This technology pivot requires significant R&D investment precisely when financial results are pressured. The success of AdLogic CPM+ will depend on both technical execution and market development capabilities during a challenging transitional period where the company must simultaneously innovate and stabilize financial performance.
Record Year of Performance; Company on Track for Growth Acceleration
LOUISVILLE, Ky., March 14, 2025 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a leading provider of digital signage, media and AdTech solutions, today announced its financial results for the fiscal fourth quarter and year ended December 31, 2024.
Highlights:
- Fourth quarter revenue of
$11.0 million versus$14.5 million in the prior-year period - Gross profit of
$4.9 million for the three months ended December 31, 2024 versus$7.5 million in the fourth quarter of fiscal 2023 - Adjusted EBITDA* of
$0.5 million for the fourth quarter of 2024 versus$2.8 million in the prior-year period - Annual recurring revenue (“ARR”) of approximately
$16.8 million at the end of the fourth quarter versus$16.3 million at December 31, 2023
“As anticipated, our fourth quarter hardware revenue was down due to the deployment timing of certain projects, while service revenue grew
*Adjusted EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release.
2024 Fourth Quarter Financial Results
Sales were
Consolidated gross profit was
Sales and marketing expenses in the fourth quarter fell to
The Company posted an operating loss of approximately
Adjusted EBITDA (defined later in this release) was
Balance Sheet
As of December 31, 2024, the Company had cash on hand of approximately
Conference Call Details
The Company will host a conference call to review the results of the fourth quarter and full year of 2024, and provide additional commentary about recent performance, Monday, March 17, at 9:00 am Eastern Time, which will include prepared remarks and materials from management, followed by a live Q&A. The call will be hosted by Rick Mills, Chief Executive Officer, George Sautter, Chief Strategy Officer, and Ryan Mudd, Interim Chief Financial Officer.
Prior to the call, participants should register at https://bit.ly/CREXearnings2024Q4. Once registered, participants can use the weblink provided in the registration email to participate in the live webcast. An archived edition of the earnings conference call will also be posted on the Company’s website later today and will remain available for one year.
Use of Non-GAAP Measures
Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.” CRI defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. CRI defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges. EBITDA and Adjusted EBITDA are not measures of performance defined in accordance with GAAP. However, EBITDA and Adjusted EBITDA are used internally in planning and evaluating the Company’s operating performance. Accordingly, management believes that disclosure of these metrics offers investors, bankers and other stakeholders an additional view of the Company’s operations that, when coupled with the GAAP results, provides a more complete understanding of the Company’s financial results. EBITDA and Adjusted EBITDA should not be considered as an alternative to net income/(loss) or to net cash used in operating activities as measures of operating results or liquidity. Our calculation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures used by other companies, and the measures exclude financial information that some may consider important in evaluating the Company’s performance. A reconciliation of GAAP net income/(loss) to EBITDA and Adjusted EBITDA is included in the accompanying financial schedules. For further information, please refer to Creative Realities, Inc.’s filings available online at www.sec.gov, including its Annual Report on Form 10-K for 2024 filed with the Securities and Exchange Commission.
About Creative Realities, Inc.
Creative Realities designs, develops and deploys digital signage-based experiences for enterprise-level networks utilizing its Clarity™, ReflectView™, and iShowroom™ Content Management System (CMS) platforms. The Company is actively providing recurring SaaS and support services across diverse vertical markets, including but not limited to retail, automotive, digital-out-of-home (DOOH) advertising networks, convenience stores, foodservice/QSR, gaming, theater, and stadium venues. In addition, the Company assists clients in utilizing place-based digital media to achieve business objectives such as increased revenue, enhanced customer experiences, and improved productivity. This includes the design, deployment, and day to day management of Retail Media Networks to monetize on-premise foot traffic utilizing its AdLogic™ and AdLogic CPM+™ programmatic advertising platforms.
Cautionary Note on Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and includes, among other things, discussions of our business strategies, product releases, future operations and capital resources. Words such as "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance, conditions or results. They are based on the opinions, estimates and beliefs of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties, assumptions and other factors, many of which are outside of our control, that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Some of these risks are discussed in the “Risk Factors” section contained in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, and the Company’s subsequent filings with the U.S. Securities and Exchange Commission. Important factors, among others, that may affect actual results or outcomes include: our strategy for customer retention, growth, product development, market position, financial results and reserves, our ability to execute on our business plan, our ability to retain key personnel, our ability to remain listed on the Nasdaq Capital Market, our ability to realize the revenues included in our future guidance and backlog reports, our ability to satisfy our upcoming debt obligations and other liabilities, the ability of the Company to continue as a going concern, potential litigation, supply chain shortages, and general economic and market conditions impacting demand for our products and services. Readers should not place undue reliance upon any forward-looking statements. We assume no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Contacts
Media:
Christina Davies
cdavies@ideagrove.com
Investor Relations:
Chris Witty
cwitty@darrowir.com
646-438-9385
ir@cri.com
https://investors.cri.com/
CREATIVE REALITIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) | ||||||||
December 31, | December 31, | |||||||
2024 | 2023 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 1,037 | $ | 2,910 | ||||
Accounts receivable, net | 10,605 | 12,468 | ||||||
Inventories, net | 1,995 | 2,567 | ||||||
Prepaid expenses and other current assets | 859 | 665 | ||||||
Total Current Assets | 14,496 | 18,610 | ||||||
Property and equipment, net | 321 | 499 | ||||||
Goodwill | 26,453 | 26,453 | ||||||
Other intangible assets, net | 22,841 | 24,062 | ||||||
Operating lease right-of-use assets | 787 | 1,041 | ||||||
Other non-current assets | 312 | 112 | ||||||
Total Assets | $ | 65,210 | $ | 70,777 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 6,354 | $ | 7,876 | ||||
Accrued expenses and other current liabilities | 3,210 | 3,761 | ||||||
Deferred revenues | 1,137 | 1,132 | ||||||
Customer deposits | 2,181 | 3,233 | ||||||
Current maturities of operating leases | 466 | 505 | ||||||
Short-term portion of related party term debt | - | 3,690 | ||||||
Short-term portion of contingent consideration, at fair value | 12,815 | - | ||||||
Total Current Liabilities | 26,163 | 20,197 | ||||||
Revolving credit facility | 13,044 | - | ||||||
Long-term related party term debt | - | 9,829 | ||||||
Long-term obligations under operating leases | 342 | 536 | ||||||
Long-term contingent consideration, at fair value | - | 11,208 | ||||||
Other non-current liabilities | 201 | 176 | ||||||
Total Liabilities | 39,750 | 41,946 | ||||||
Shareholders' Equity | ||||||||
Common stock, | 104 | 104 | ||||||
Additional paid in capital | 82,210 | 82,073 | ||||||
Accumulated deficit | (56,854 | ) | (53,346 | ) | ||||
Total Shareholders' Equity | 25,460 | 28,831 | ||||||
Total Liabilities and Shareholders' Equity | $ | 65,210 | $ | 70,777 | ||||
CREATIVE REALITIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) | ||||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Sales | ||||||||||||||||
Hardware | $ | 3,850 | $ | 7,697 | $ | 18,259 | $ | 20,303 | ||||||||
Services and other | 7,162 | 6,761 | 32,595 | 24,863 | ||||||||||||
Total sales | 11,012 | 14,458 | 50,854 | 45,166 | ||||||||||||
Cost of sales | ||||||||||||||||
Hardware | 2,839 | 5,966 | 13,521 | 15,280 | ||||||||||||
Services and other | 3,303 | 999 | 13,322 | 7,703 | ||||||||||||
Total cost of sales | 6,142 | 6,965 | 26,843 | 22,983 | ||||||||||||
Gross profit | 4,870 | 7,493 | 24,011 | 22,183 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | 1,360 | 1,581 | 6,015 | 5,247 | ||||||||||||
General and administrative expenses | 4,224 | 3,936 | 17,058 | 15,590 | ||||||||||||
Total operating expenses | 5,584 | 5,517 | 23,073 | 20,837 | ||||||||||||
Operating (loss) income | (714 | ) | 1,976 | 938 | 1346 | |||||||||||
Other expenses (income): | ||||||||||||||||
Interest expense, including amortization of debt discount | 296 | 668 | 1,775 | 2,992 | ||||||||||||
(Gain) loss on change in fair value of contingent consideration | 2,022 | (42 | ) | 1,608 | 1,419 | |||||||||||
Loss on debt extinguishment | - | - | 1,059 | - | ||||||||||||
Other expense (income) | (74 | ) | (79 | ) | (102 | ) | (211 | ) | ||||||||
Total other expenses (income) | 2,244 | 547 | 4,340 | 4,200 | ||||||||||||
Net (loss) income before income taxes | (2,958 | ) | 1,429 | (3,402 | ) | (2,854 | ) | |||||||||
Benefit (provision) for income taxes | 120 | (10 | ) | (106 | ) | (83 | ) | |||||||||
Net (loss) income | $ | (2,838 | ) | $ | 1,419 | $ | (3,508 | ) | $ | (2,937 | ) | |||||
Basic (loss) income per common share | $ | (0.27 | ) | $ | 0.14 | $ | (0.34 | ) | $ | (0.35 | ) | |||||
Diluted (loss) income per common share | $ | (0.27 | ) | $ | 0.14 | $ | (0.34 | ) | $ | (0.35 | ) | |||||
Weighted average shares outstanding - basic | 10,447 | 10,409 | 10,440 | 8,479 | ||||||||||||
Weighted average shares outstanding - diluted | 10,447 | 10,409 | 10,440 | 8,479 | ||||||||||||
CREATIVE REALITIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except share per share amounts) | ||||||||
For the Years Ended | ||||||||
December 31, | ||||||||
2024 | 2023 | |||||||
Operating Activities: | ||||||||
Net loss | $ | (3,508 | ) | $ | (2,937 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,078 | 3,221 | ||||||
Amortization of debt discount | 569 | 1,443 | ||||||
Amortization of stock-based compensation | 13 | 563 | ||||||
Amortization of deferred financing costs | 63 | - | ||||||
Loss on extinguishment of debt | 1,059 | - | ||||||
Bad debt expense | 13 | 153 | ||||||
Provision for inventory reserves | (43 | ) | 109 | |||||
Loss on change in fair value of contingent consideration | 1,608 | 1,419 | ||||||
Deferred income taxes | 61 | 44 | ||||||
Changes to operating assets and liabilities: | ||||||||
Accounts receivable | 1,850 | (4,358 | ) | |||||
Inventories | 615 | (409 | ) | |||||
Prepaid expenses and other current assets | (194 | ) | 952 | |||||
Accounts payable | (1,388 | ) | 4,486 | |||||
Accrued expenses and other current liabilities | (395 | ) | (47 | ) | ||||
Deferred revenue | 5 | (91 | ) | |||||
Customer deposits | (1,052 | ) | 755 | |||||
Other, net | 27 | (136 | ) | |||||
Net cash provided by operating activities | 3,381 | 5,167 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (11 | ) | (306 | ) | ||||
Capitalization of labor for software development | (2,790 | ) | (3,721 | ) | ||||
Net cash used in investing activities | (2,801 | ) | (4,027 | ) | ||||
Financing activities | ||||||||
Proceeds from sale of common stock, net of offering expenses | - | 5,454 | ||||||
Proceeds from borrowings under revolving credit facility | 31,459 | - | ||||||
Repayment of borrowings under revolving credit facility | (18,415 | ) | - | |||||
Payment of deferred financings costs | (306 | ) | - | |||||
Repayment of term debt | (15,147 | ) | (5,294 | ) | ||||
Principal payments on finance leases | (44 | ) | (23 | ) | ||||
Net cash (used in) provided by financing activities | (2,453 | ) | 137 | |||||
Increase (decrease) in Cash and Cash Equivalents | (1,873 | ) | 1,277 | |||||
Cash and Cash Equivalents, beginning of year | 2,910 | 1,633 | ||||||
Cash and Cash Equivalents, end of year | $ | 1,037 | $ | 2,910 | ||||
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(in thousands, unaudited)
Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted accounting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding “EBITDA” and “Adjusted EBITDA.” CRI defines “EBITDA” as earnings before interest, income taxes, depreciation and amortization of intangibles. CRI defines “Adjusted EBITDA” as EBITDA excluding stock-based compensation, fair value adjustments and both cash and non-cash non-recurring gains and charges.
EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered as a substitute for net income (loss), operating income (loss) or any other performance measure derived in accordance with United States generally accepted accounting principles (“GAAP”) or as an alternative to net cash provided by operating activities as a measure of CRI’s profitability or liquidity. CRI’s management believes EBITDA and Adjusted EBITDA are useful financial metrics because they allow external users of CRI’s financial statements, such as industry analysts, investors, lenders and rating agencies, to more effectively evaluate CRI’s operating performance, compare the results of its operations from period to period and against CRI’s peers without regard to CRI’s financing methods, hedging positions or capital structure and because it highlights trends in CRI’s business that may not otherwise be apparent when relying solely on GAAP measures. CRI also presents EBITDA and Adjusted EBITDA because it believes EBITDA and Adjusted EBITDA are important supplemental measures of its performance that are frequently used by others in evaluating companies in its industry. Because EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income (loss) and may vary among companies, the EBITDA and Adjusted EBITDA CRI presents may not be comparable to similarly titled measures of other companies.
The following table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, CRI’s most directly comparable financial measure calculated and presented in accordance with GAAP.
Quarters Ended | ||||||||||||||||||||
Year Ended | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
Quarters ended | 2024 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
GAAP net (loss) income | $ | (3,508 | ) | $ | (2,838 | ) | $ | 54 | $ | (615 | ) | $ | (109 | ) | ||||||
Interest expense: | ||||||||||||||||||||
Amortization of debt discount | 569 | - | - | 209 | 360 | |||||||||||||||
Other interest, net | 1,206 | 296 | 303 | 304 | 303 | |||||||||||||||
Depreciation/amortization: | ||||||||||||||||||||
Amortization of intangible assets | 3,877 | 1,128 | 1,081 | 878 | 790 | |||||||||||||||
Amortization of employee share-based awards | 13 | 4 | 3 | 3 | 3 | |||||||||||||||
Depreciation of property and equipment | 201 | 49 | 51 | 52 | 49 | |||||||||||||||
Income tax expense (benefit) | 106 | (120 | ) | 192 | 25 | 9 | ||||||||||||||
EBITDA | $ | 2,464 | $ | (1,481 | ) | $ | 1,684 | $ | 856 | $ | 1,405 | |||||||||
Adjustments | ||||||||||||||||||||
Loss (Gain) on fair value of contingent consideration | 1,608 | 2,022 | 598 | (408 | ) | (604 | ) | |||||||||||||
Loss on debt extinguishment | 1,059 | - | - | 1,059 | - | |||||||||||||||
Other expense (income) | (102 | ) | (74 | ) | (11 | ) | 18 | (35 | ) | |||||||||||
Adjusted EBITDA | $ | 5,029 | $ | 467 | $ | 2,271 | $ | 1,525 | $ | 766 |
