Reservoir Media Announces Second Quarter Fiscal 2025 Results
Reservoir Media (NASDAQ:RSVR) reported strong Q2 fiscal 2025 results with revenue increasing 6% to $40.7 million. Music Publishing revenue grew 10% to $28.6 million, while Recorded Music revenue slightly decreased by 1% to $10.7 million. Operating Income rose significantly to $10.1 million, up 65% year-over-year. The company raised its fiscal 2025 outlook, projecting revenue of $150M-$153M (5% growth) and Adjusted EBITDA of $59M-$62M (9% growth). Notable developments include new publishing deals with Snoop Dogg and k.d. lang, contributing to Reservoir's position in Billboard's Top 10 market share.
Reservoir Media (NASDAQ:RSVR) ha riportato risultati solidi per il secondo trimestre dell'esercizio fiscale 2025, con un aumento del fatturato del 6%, arrivando a 40,7 milioni di dollari. I ricavi dalla gestione musicale sono aumentati del 10%, raggiungendo 28,6 milioni di dollari, mentre i ricavi dalla musica registrata sono leggermente diminuiti dell'1%, arrivando a 10,7 milioni di dollari. L'utile operativo è aumentato significativamente a 10,1 milioni di dollari, con un incremento del 65% rispetto all'anno precedente. L'azienda ha rivisto al rialzo le previsioni per l'esercizio fiscale 2025, prevedendo un fatturato tra 150 e 153 milioni di dollari (crescita del 5%) e un EBITDA rettificato tra 59 e 62 milioni di dollari (crescita del 9%). Tra i risultati notevoli ci sono nuovi contratti editoriali con Snoop Dogg e k.d. lang, che contribuiscono alla posizione di Reservoir nella Top 10 della quota di mercato di Billboard.
Reservoir Media (NASDAQ:RSVR) reportó resultados sólidos para el segundo trimestre del año fiscal 2025, con un aumento del 6% en los ingresos, alcanzando 40,7 millones de dólares. Los ingresos de Publicación Musical crecieron un 10%, alcanzando 28,6 millones de dólares, mientras que los ingresos de Música Grabada disminuyeron ligeramente un 1%, sumando 10,7 millones de dólares. El Ingreso Operativo aumentó significativamente a 10,1 millones de dólares, un incremento del 65% en comparación con el año anterior. La compañía elevó su perspectiva para el año fiscal 2025, proyectando ingresos entre 150 y 153 millones de dólares (crecimiento del 5%) y un EBITDA ajustado entre 59 y 62 millones de dólares (crecimiento del 9%). Entre los desarrollos notables se incluyen nuevos contratos de publicación con Snoop Dogg y k.d. lang, contribuyendo a la posición de Reservoir en el Top 10 de participación de mercado de Billboard.
Reservoir Media (NASDAQ:RSVR)는 2025 회계연도 2분기 강력한 실적을 보고했으며, 수익이 6% 증가하여 4,070만 달러에 달했습니다. 음악 출판 수익은 10% 증가하여 2,860만 달러에 이르렀고, 녹음 음악 수익은 1% 감소하여 1,070만 달러를 기록했습니다. 운영 소득은 작년 대비 65% 증가하여 1,010만 달러로 크게 상승했습니다. 이 회사는 2025 회계연도 전망을 상향 조정하여 수익을 1억 5천만 달러에서 1억 5천 3백만 달러(5% 성장)으로, 조정된 EBITDA를 5천9백만 달러에서 6천2백만 달러(9% 성장)으로 예상하고 있습니다. Snoop Dogg와 k.d. lang과의 새로운 출판 계약이 주요 발전 사항으로, Reservoir의 Billboard Top 10 시장 점유율에 기여하고 있습니다.
Reservoir Media (NASDAQ:RSVR) a annoncé de solides résultats pour le deuxième trimestre de l'exercice 2025, avec des revenus en hausse de 6%, atteignant 40,7 millions de dollars. Les revenus d'édition musicale ont augmenté de 10%, atteignant 28,6 millions de dollars, tandis que les revenus de la musique enregistrée ont légèrement diminué de 1%, pour s'établir à 10,7 millions de dollars. Le résultat opérationnel a considérablement augmenté pour atteindre 10,1 millions de dollars, soit une hausse de 65% par rapport à l'année précédente. L'entreprise a relevé ses prévisions pour l'exercice 2025, projetant des revenus compris entre 150 et 153 millions de dollars (croissance de 5%) et un EBITDA ajusté entre 59 et 62 millions de dollars (croissance de 9%). Parmi les développements notables figurent de nouveaux contrats d'édition avec Snoop Dogg et k.d. lang, contribuant à la position de Reservoir dans le Top 10 de la part de marché de Billboard.
Reservoir Media (NASDAQ:RSVR) hat starke Ergebnisse für das 2. Quartal des Geschäftsjahres 2025 gemeldet, mit einem Umsatzanstieg von 6% auf 40,7 Millionen US-Dollar. Die Einnahmen aus Musikverlag stiegen um 10% auf 28,6 Millionen US-Dollar, während die Einnahmen aus Aufnahmemusik leicht um 1% auf 10,7 Millionen US-Dollar sanken. Der Betriebsgewinn stieg erheblich auf 10,1 Millionen US-Dollar, was einem Anstieg von 65% im Jahresvergleich entspricht. Das Unternehmen hat seinen Ausblick für das Geschäftsjahr 2025 angehoben und prognostiziert einen Umsatz von 150 bis 153 Millionen US-Dollar (5% Wachstum) sowie ein bereinigtes EBITDA von 59 bis 62 Millionen US-Dollar (9% Wachstum). Zu den bemerkenswerten Entwicklungen gehören neue Verlage mit Snoop Dogg und k.d. lang, die zur Position von Reservoir im Billboard Top 10 Marktanteil beitragen.
- Revenue increased 6% to $40.7 million
- Music Publishing revenue grew 10% year-over-year
- Operating Income increased 65% to $10.1 million
- Adjusted EBITDA up 11% to $17.6 million
- Digital revenue in Music Publishing increased 22%
- Raised fiscal 2025 guidance for both revenue and Adjusted EBITDA
- Recorded Music revenue declined 1% year-over-year
- Net income decreased from $0.7 million to $0.2 million
- Physical recorded music revenue dropped 21%
Insights
Reservoir Media delivered a solid Q2 FY25 with notable financial improvements.
The company's strategic acquisitions and partnerships, particularly with Snoop Dogg and Death Row Records, strengthen its catalog value. With
The strategic expansion of Reservoir's portfolio through high-profile acquisitions shows excellent market positioning. The Snoop Dogg partnership is particularly significant, bringing legendary catalog rights that historically perform well in streaming and licensing. The company's diverse roster additions across multiple genres (k.d. lang, Travis Heidelman, Jack Douglas) create multiple revenue streams and reduce concentration risk.
The shift in revenue mix toward digital (
Robust Activity in Music Publishing Grew Top-Line by
Expanded Margins and Strong Cost Discipline Support Strong Profitability Growth
Raises Fiscal 2025 Financial Outlook for Both Top-Line and Adjusted EBITDA
NEW YORK, NY / ACCESSWIRE / October 30, 2024 / Reservoir Media, Inc. (NASDAQ:RSVR) ("Reservoir" or the "Company"), an award-winning independent music company, today announced financial results for the second quarter of fiscal 2025 ended September 30, 2024.
Recent Highlights:
Revenue of
$40.7 million , increased5% organically, or6% including acquisitions year-over-yearMusic Publishing revenue rose
10% year-over-yearRecorded Music revenue decreased by
1% year-over-year
Operating Income of
$10.1 million , increased by$4.0 million year-over-yearOIBDA ("Operating Income Before Depreciation & Amortization") of
$16.6 million , an increase of34% year-over-yearNet Income of
$0.2 million , or$0.00 per share, compared to a net income of$0.7 million , or$0.01 per shareAdjusted EBITDA of
$17.6 million , up11% year-over-yearPartnered with rap icon and multifaceted entertainer and entrepreneur, Snoop Dogg, as well as Snoop's Death Row Records in a new publishing deal, which includes Snoop's legendary catalogue and Death Row hits.
Signed publishing deals with Grammy and Juno award-winning singer-songwriter k.d. lang, Top 10 Billboard country writer-producer Travis Heidelman, in-demand, Nashville-based songwriter Jon Decious, dance writer-producer Kes Kamara, and multi-genre writer-producer Ben Stancombe.
Acquired publishing catalog of acclaimed Elvis songwriter the late Billy Strange and rights to the producer catalog of celebrated rock producer Jack Douglas.
Management Commentary:
"From Snoop Dogg to k.d. lang to Jack Douglas and more, this quarter represented a period of notable growth for our roster. Reservoir has proven again its capability to attract top-tier talent who help define their various music genre landscapes, popular culture, and beyond," said Golnar Khosrowshahi, Founder and Chief Executive Officer of Reservoir Media. "Meanwhile, our existing roster of talent continued to deliver chart-topping music, earning accolades and acclaim across the industry and contributing to Reservoir's position on Billboard's Top 10 market share evaluation."
Second Quarter Fiscal 2025 Financial Results
Summary Financials |
| Q2 FY25 |
|
| Q2 FY24 |
|
| Change |
|
|
| |||
Total Revenue |
| $ | 40.7 |
|
| $ | 38.4 |
|
|
| 6 | % |
|
|
Music Publishing Revenue |
| $ | 28.6 |
|
| $ | 25.9 |
|
|
| 10 | % |
|
|
Recorded Music Revenue |
| $ | 10.7 |
|
| $ | 10.8 |
|
|
| (1 | %) |
|
|
Operating Income |
| $ | 10.1 |
|
| $ | 6.1 |
|
|
| 65 | % |
|
|
OIBDA |
| $ | 16.6 |
|
| $ | 12.4 |
|
|
| 34 | % |
|
|
Net Income |
| $ | 0.2 |
|
| $ | 0.7 |
|
|
| (78 | %) |
|
|
Adjusted EBITDA |
| $ | 17.6 |
|
| $ | 15.9 |
|
|
| 11 | % |
|
|
(Table Notes: $ in millions; Quarters ended September 30th; Unaudited)
Total revenue in the second quarter of fiscal 2025 increased
Operating income in the second quarter of fiscal 2025 was
Net income in the second quarter of fiscal 2025 was
Second Quarter Fiscal 2025 Segment Review
Music Publishing |
| Q2 FY25 |
|
| Q2 FY24 |
|
| Change |
|
|
| |||
Revenue by Type |
|
|
|
|
|
|
|
|
|
|
| |||
Digital |
| $ | 15.6 |
|
| $ | 12.8 |
|
|
| 22 | % |
|
|
Performance |
| $ | 5.1 |
|
| $ | 6.5 |
|
|
| (22 | %) |
|
|
Synchronization |
| $ | 5.8 |
|
| $ | 4.5 |
|
|
| 30 | % |
|
|
Mechanical |
| $ | 1.1 |
|
| $ | 1.3 |
|
|
| (13 | %) |
|
|
Other |
| $ | 1.0 |
|
| $ | 0.9 |
|
|
| 8 | % |
|
|
Total Revenue |
| $ | 28.6 |
|
| $ | 25.9 |
|
|
| 10 | % |
|
|
Operating Income |
| $ | 6.5 |
|
| $ | 1.4 |
|
|
| NM |
|
|
|
OIBDA |
| $ | 11.0 |
|
| $ | 6.2 |
|
|
| 77 | % |
|
|
(Table Notes: $ in millions; Quarters ended September 30th; Unaudited; NM = Not meaningful)
Music Publishing Revenue in the second quarter of fiscal 2025 was
In the second quarter of fiscal 2025, Music Publishing OIBDA increased
Recorded Music |
| Q2 FY25 |
|
| Q2 FY24 |
|
| Change |
|
|
| |||
Revenue by Type |
|
|
|
|
|
|
|
|
|
|
| |||
Digital |
| $ | 7.2 |
|
| $ | 7.3 |
|
|
| (1 | %) |
|
|
Physical |
| $ | 1.5 |
|
| $ | 1.9 |
|
|
| (21 | %) |
|
|
Neighboring Rights |
| $ | 1.1 |
|
| $ | 0.8 |
|
|
| 35 | % |
|
|
Synchronization |
| $ | 0.9 |
|
| $ | 0.9 |
|
|
| 3 | % |
|
|
Total Revenue |
| $ | 10.7 |
|
| $ | 10.8 |
|
|
| (1 | %) |
|
|
Operating Income |
| $ | 3.5 |
|
| $ | 4.1 |
|
|
| (15 | %) |
|
|
OIBDA |
| $ | 5.4 |
|
| $ | 5.5 |
|
|
| (2 | %) |
|
|
(Table Notes: $ in millions; Quarters ended September 30th; Unaudited)
Recorded Music Revenue in the second quarter of fiscal 2025 was
In the second quarter of fiscal 2025, Recorded Music OIBDA decreased
Balance Sheet and Liquidity
For the six months ended September 30, 2024, cash provided by operating activities was
As of September 30, 2024, Reservoir had cash and cash equivalents of
Fiscal Year 2025 Outlook
Given the strong results over the first half of the year, Reservoir is narrowing and raising its previously provided financial outlook for fiscal 2025. Reservoir expects the financial results for the year ending March 31, 2025, to be as follows:
Outlook |
| Guidance |
|
| Growth (at mid-point) |
|
|
| ||
Revenue |
|
|
|
|
| 5 | % |
|
| |
Adjusted EBITDA |
|
|
|
|
| 9 | % |
|
|
Jim Heindlmeyer, Chief Financial Officer of Reservoir, stated, "Our ability to refine our revenue guidance range is reflective of our confidence in the portfolio of assets created by our Reservoir-associated artists, while internal efforts to control costs and thus expand margins enable our increased Adjusted EBITDA outlook. This continuation of robust cash flows allows us to opportunistically utilize our available debt to identify additional productive deals for the foreseeable future. We see a clear path to achieving our adjusted fiscal year 2025 financial guidance."
Conference Call Information
Reservoir is hosting a conference call for analysts and investors to discuss its financial results for the second quarter of fiscal year ending March 31, 2025 at 10:00 a.m. EDT today, October 30, 2024. The conference call can be accessed via webcast in the investor relations section of the Company's website at https://investors.reservoir-media.com/news-and-events/events-and-presentations.
Interested parties may also participate in the call using the following registration link:Here.Once registered, participants will receive a webcast link to enter the event. Alternatively, participants may dial into the call using the following phone number: +1 201-389-0921 (Toll-free: +1 877-407-0989). Shortly after the conclusion of the conference call, a replay of the audio webcast will be available in the investor relations section of Reservoir's website for 30 days after the event.
About Reservoir Media, Inc.
Reservoir is an independent music company based in New York City and with offices in Los Angeles, Nashville, Toronto, London, and Abu Dhabi. Reservoir is the first female-founded and led publicly traded independent music company in the U.S. Founded as a family-owned music publisher in 2007, Reservoir has grown to represent over 150,000 copyrights and 36,000 master recordings with titles dating as far back as 1900 and hundreds of #1 releases worldwide. Reservoir frequently holds a Top 10 U.S. Market Share according to Billboard's Publishers Quarterly, was twice named Publisher of the Year by Music Business Worldwide's The A&R Awards, and won Independent Publisher of the Year at the 2020 and 2022 Music Week Awards.
Reservoir also represents a multitude of recorded music through Chrysalis Records, Tommy Boy Music, and Philly Groove Records and manages artists through its ventures with Blue Raincoat Music and Big Life Management.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. Forward-looking statements are typically identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "outlook," "plan," "possible," "potential," "predict," "project," "should," "target," "would" and other similar words and expressions. Forward-looking statements in this press release relate to, among other things: Reservoir's anticipated financial condition, results of operations and performance, expected growth, plans and objectives for future operations, business prospects and market conditions. Forward-looking statements are based on the current expectations and beliefs of management and information currently available to management. These statements are inherently subject to a number of risks, uncertainties and assumptions, many of which are outside of our control and could cause future events or results to be materially different from those stated or implied in this press release, including the risk factors that are described in Reservoir's Annual Report on Form 10-K for the year ended March 31, 2024 and our other filings with the SEC available on the SEC's website at www.sec.gov or Reservoir's website at www.reservoir-media.com. Any forward-looking statement made in this press release speaks only as of the date on which it is made and Reservoir undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Reservoir Media, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
Three and Six Months Ended September 30, 2024 versus September 30, 2023
(Unaudited)
(Expressed in U.S. dollars)
| Three Months Ended |
|
|
|
|
| Six Months Ended |
|
|
|
| |||||||||||||
| 2024 |
|
| 2023 |
|
| % Change |
|
| 2024 |
|
| 2023 |
|
| % Change | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues |
| $ | 40,667,393 |
|
| $ | 38,397,300 |
|
|
| 6 | % |
| $ | 74,984,236 |
|
| $ | 70,233,886 |
|
|
| 7 | % |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
| 14,831,371 |
|
|
| 14,442,666 |
|
|
| 3 | % |
|
| 28,112,487 |
|
|
| 27,914,263 |
|
|
| 1 | % |
Amortization and depreciation |
|
| 6,430,019 |
|
|
| 6,214,540 |
|
|
| 3 | % |
|
| 12,814,776 |
|
|
| 12,270,108 |
|
|
| 4 | % |
Administration expenses |
|
| 9,283,977 |
|
|
| 11,595,004 |
|
|
| (20 | )% |
|
| 18,973,414 |
|
|
| 20,759,504 |
|
|
| (9 | )% |
Total costs and expenses |
|
| 30,545,367 |
|
|
| 32,252,210 |
|
|
| (5 | )% |
|
| 59,900,677 |
|
|
| 60,943,875 |
|
|
| (2 | )% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Operating income |
|
| 10,122,026 |
|
|
| 6,145,090 |
|
|
| 65 | % |
|
| 15,083,559 |
|
|
| 9,290,011 |
|
|
| 62 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Interest expense |
|
| (4,960,408 | ) |
|
| (5,759,506 | ) |
|
|
|
|
|
| (10,019,806 | ) |
|
| (10,493,039 | ) |
|
|
|
|
Loss on foreign exchange |
|
| (36,348 | ) |
|
| (40,156 | ) |
|
|
|
|
|
| (95,811 | ) |
|
| (70,092 | ) |
|
|
|
|
(Loss) gain on fair value of swaps |
|
| (5,126,907 | ) |
|
| 628,091 |
|
|
|
|
|
|
| (5,617,202 | ) |
|
| 2,473,478 |
|
|
|
|
|
Other income (expense), net |
|
| 1,033 |
|
|
| 474 |
|
|
|
|
|
|
| (98,489 | ) |
|
| 536 |
|
|
|
|
|
(Loss) income before income taxes |
|
| (604 | ) |
|
| 973,993 |
|
|
|
|
|
|
| (747,749 | ) |
|
| 1,200,894 |
|
|
|
|
|
Income tax (benefit) expense |
|
| (152,593 | ) |
|
| 291,638 |
|
|
|
|
|
|
| (446,561 | ) |
|
| 353,986 |
|
|
|
|
|
Net income (loss) |
|
| 151,989 |
|
|
| 682,355 |
|
|
|
|
|
|
| (301,188 | ) |
|
| 846,908 |
|
|
|
|
|
Net loss (income) attributable to noncontrolling interests |
|
| 33,026 |
|
|
| (146,965 | ) |
|
|
|
|
|
| 139,548 |
|
|
| (34,185 | ) |
|
|
|
|
Net income (loss) attributable to Reservoir Media, Inc. |
| $ | 185,015 |
|
| $ | 535,390 |
|
|
|
|
|
| $ | (161,640 | ) |
| $ | 812,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | - |
|
| $ | 0.01 |
|
|
|
|
|
| $ | - |
|
| $ | 0.01 |
|
|
|
|
|
Diluted |
| $ | - |
|
| $ | 0.01 |
|
|
|
|
|
| $ | - |
|
| $ | 0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 65,186,357 |
|
|
| 64,783,974 |
|
|
|
|
|
|
| 65,079,114 |
|
|
| 64,684,082 |
|
|
|
|
|
Diluted |
|
| 65,837,273 |
|
|
| 65,085,654 |
|
|
|
|
|
|
| 65,079,114 |
|
|
| 65,031,488 |
|
|
|
|
|
Reservoir Media, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, 2024 versus March 31, 2024
(Unaudited)
(Expressed in U.S. dollars)
|
| September 30, |
|
| March 31, |
| ||
|
|
|
|
|
|
| ||
Assets |
|
|
|
|
|
| ||
Current assets |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 21,067,735 |
|
| $ | 18,132,015 |
|
Accounts receivable |
|
| 36,241,121 |
|
|
| 33,227,382 |
|
Current portion of royalty advances |
|
| 13,014,904 |
|
|
| 13,248,008 |
|
Inventory and prepaid expenses |
|
| 6,688,006 |
|
|
| 6,300,915 |
|
Total current assets |
|
| 77,011,766 |
|
|
| 70,908,320 |
|
|
|
|
|
|
|
|
|
|
Intangible assets, net |
|
| 637,401,193 |
|
|
| 640,222,000 |
|
Equity method and other investments |
|
| 1,564,432 |
|
|
| 1,451,924 |
|
Royalty advances, net of current portion and reserves |
|
| 52,562,668 |
|
|
| 56,527,557 |
|
Property, plant and equipment, net |
|
| 490,244 |
|
|
| 551,410 |
|
Operating lease right of use assets, net |
|
| 6,495,572 |
|
|
| 6,988,340 |
|
Fair value of swap assets |
|
| 1,050,383 |
|
|
| 5,753,488 |
|
Other assets |
|
| 1,655,577 |
|
|
| 1,131,529 |
|
Total assets |
| $ | 778,231,835 |
|
| $ | 783,534,568 |
|
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
| $ | 4,238,471 |
|
| $ | 9,015,939 |
|
Royalties payable |
|
| 44,780,706 |
|
|
| 40,395,205 |
|
Accrued payroll |
|
| 1,200,794 |
|
|
| 2,043,772 |
|
Deferred revenue |
|
| 2,776,323 |
|
|
| 1,163,953 |
|
Other current liabilities |
|
| 2,950,555 |
|
|
| 7,313,615 |
|
Income taxes payable |
|
| 100,792 |
|
|
| 439,152 |
|
Total current liabilities |
|
| 56,047,641 |
|
|
| 60,371,636 |
|
|
|
|
|
|
|
|
| |
Secured line of credit |
|
| 324,463,180 |
|
|
| 330,791,607 |
|
Deferred income taxes |
|
| 30,536,467 |
|
|
| 30,471,978 |
|
Operating lease liabilities, net of current portion |
|
| 6,120,859 |
|
|
| 6,720,287 |
|
Fair value of swap liability |
|
| 1,035,471 |
|
|
| 121,374 |
|
Other liabilities |
|
| 762,665 |
|
|
| 572,705 |
|
Total liabilities |
|
| 418,966,283 |
|
|
| 429,049,587 |
|
|
|
|
|
|
|
|
|
|
Contingencies and commitments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shareholders' Equity |
|
|
|
|
|
|
|
|
Preferred stock |
|
| - |
|
|
| - |
|
Common stock |
|
| 6,523 |
|
|
| 6,483 |
|
Additional paid-in capital |
|
| 342,679,813 |
|
|
| 341,388,351 |
|
Retained earnings |
|
| 15,236,017 |
|
|
| 15,397,657 |
|
Accumulated other comprehensive loss |
|
| (7,476 | ) |
|
| (3,797,733 | ) |
Total Reservoir Media, Inc. shareholders' equity |
|
| 357,914,877 |
|
|
| 352,994,758 |
|
Noncontrolling interest |
|
| 1,350,675 |
|
|
| 1,490,223 |
|
Total shareholders' equity |
|
| 359,265,552 |
|
|
| 354,484,981 |
|
Total liabilities and shareholders' equity |
| $ | 778,231,835 |
|
| $ | 783,534,568 |
|
Supplemental Disclosures Regarding Non-GAAP Financial Measures
This press release includes certain financial information, such as OIBDA, OIBDA margin, EBITDA, Adjusted EBITDA, and Net Debt, which has not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). Reservoir's management uses these non-GAAP financial measures to evaluate Reservoir's operations, measure its performance and make strategic decisions. Reservoir believes that the use of these non-GAAP financial measures provides useful information to investors and others in understanding Reservoir's results of operations and trends in the same manner as Reservoir's management and in evaluating Reservoir's financial measures as compared to the financial measures of other similar companies, many of which present similar non-GAAP financial measures. However, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by Reservoir's management about which items are excluded or included in determining these non-GAAP financial measures and, therefore, should not be considered as a substitute for net income, operating income or any other operating performance measures calculated in accordance with GAAP. Using such non-GAAP financial measures in isolation to analyze Reservoir's business would have material limitations because the calculations are based on the subjective determination of Reservoir's management regarding the nature and classification of events and circumstances. In addition, although other companies in Reservoir's industry may report measures titled OIBDA, OIBDA margin, Adjusted EBITDA, and Net Debt, or similar measures, such non-GAAP financial measures may be calculated differently from how Reservoir calculates such non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, such non-GAAP financial measures should be considered alongside other financial performance measures and other financial results presented in accordance with GAAP. You can find the reconciliation of these non‐GAAP financial measures to the nearest comparable GAAP measures in the tables below.
OIBDA
Reservoir evaluates operating performance based on several factors, including its primary financial measure of operating income before non-cash depreciation of tangible assets and non-cash amortization of intangible assets ("OIBDA"). Reservoir considers OIBDA to be an important indicator of the operational strengths and performance of its businesses and believes this non-GAAP financial measure provides useful information to investors because it removes the significant impact of amortization from Reservoir's results of operations. However, a limitation of the use of OIBDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in Reservoir's businesses and other non-operating income (loss). Accordingly, OIBDA should be considered in addition to, not as a substitute for, operating income, net income attributable to us and other measures of financial performance reported in accordance with GAAP. In addition, our definition of OIBDA may differ from similarly titled measures used by other companies. OIBDA Margin is defined as OIBDA as a percentage of revenue.
EBITDA and Adjusted EBITDA
EBITDA is defined as earnings (net income or loss) before net interest expense, income tax (benefit) expense, non-cash depreciation of tangible assets and non-cash amortization of intangible assets and is used by management to measure operating performance of the business. Adjusted EBITDA, in addition to adjusting net income to exclude income tax expense, interest expense and depreciation and amortization, further adjusts net income by excluding items or expenses such as, among others, (1) any non-cash charges (including any impairment charges and to write-down an equity investment to its estimated fair value), (2) any net gain or loss on foreign exchange, (3) any net gain or loss resulting from interest rate swaps, (4) equity-based compensation expense and (5) certain unusual or non-recurring items.
Adjusted EBITDA is a key measure used by Reservoir's management to understand and evaluate operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. However, certain limitations on the use of Adjusted EBITDA include, among others, (1) it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue for Reservoir's business, (2) it does not reflect the significant interest expense or cash requirements necessary to service interest or principal payments on Reservoir's indebtedness and (3) it does not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments. In particular, Adjusted EBITDA measure adds back certain non-cash, unusual or non-recurring charges that are deducted in calculating net income; however, these are expenses that may recur, vary greatly and are difficult to predict. In addition, Adjusted EBITDA is not the same as net income (loss) or cash flow provided by operating activities as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs.
Net Debt
Reservoir defines Net Debt as total debt, less cash and equivalents and deferred financing costs.
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Operating Income to OIBDA
Three and Six Months Ended September 30, 2024 versus September 30, 2023
(Unaudited)
(Dollars in thousands)
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Operating Income |
| $ | 10,122 |
|
| $ | 6,145 |
|
| $ | 15,084 |
|
| $ | 9,290 |
|
Amortization and Depreciation Expense |
|
| 6,430 |
|
|
| 6,215 |
|
|
| 12,815 |
|
|
| 12,270 |
|
OIBDA |
| $ | 16,552 |
|
| $ | 12,360 |
|
| $ | 27,898 |
|
| $ | 21,560 |
|
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Music Publishing Segment Reporting Operating Income to OIBDA
Three and Six Months Ended September 30, 2024 versus September 30, 2023 (Unaudited)
(Dollars in thousands)
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Operating Income |
| $ | 6,451 |
|
| $ | 1,411 |
|
| $ | 8,634 |
|
| $ | 2,807 |
|
Amortization and Depreciation Expense |
|
| 4,509 |
|
|
| 4,791 |
|
|
| 9,110 |
|
|
| 9,095 |
|
OIBDA |
| $ | 10,961 |
|
| $ | 6,202 |
|
| $ | 17,744 |
|
| $ | 11,902 |
|
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Recorded Music Segment Reporting Operating Income to OIBDA
Three and Six Months Ended September 30, 2024 versus September 30, 2023
(Unaudited)
(Dollars in thousands)
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Operating Income |
| $ | 3,508 |
|
| $ | 4,130 |
|
| $ | 6,200 |
|
| $ | 5,894 |
|
Amortization and Depreciation Expense |
|
| 1,896 |
|
|
| 1,399 |
|
|
| 3,656 |
|
|
| 3,128 |
|
OIBDA |
| $ | 5,405 |
|
| $ | 5,529 |
|
| $ | 9,856 |
|
| $ | 9,022 |
|
Reservoir Media, Inc. and Subsidiaries
Reconciliation of Net Income (Loss) to Adjusted EBITDA
Three and Six Months Ended September 30, 2024 versus September 30, 2023
(Unaudited)
(Dollars in thousands)
| For the Three Months Ended |
|
| For the Six Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
Net Income (Loss) |
| $ | 152 |
|
| $ | 682 |
|
| $ | (301 | ) |
| $ | 847 |
|
Income Tax (Benefit) Expense |
|
| (153 | ) |
|
| 292 |
|
|
| (447 | ) |
|
| 354 |
|
Interest Expense |
|
| 4,960 |
|
|
| 5,760 |
|
|
| 10,020 |
|
|
| 10,493 |
|
Amortization and Depreciation |
|
| 6,430 |
|
|
| 6,215 |
|
|
| 12,815 |
|
|
| 12,270 |
|
EBITDA |
|
| 11,390 |
|
|
| 12,949 |
|
|
| 22,087 |
|
|
| 23,964 |
|
Loss on Foreign Exchange(a) |
|
| 36 |
|
|
| 40 |
|
|
| 96 |
|
|
| 70 |
|
Loss (Gain) on Fair Value of Swaps(b) |
|
| 5,127 |
|
|
| (628 | ) |
|
| 5,617 |
|
|
| (2,473 | ) |
Non-cash Share-based Compensation(c) |
|
| 1,053 |
|
|
| 813 |
|
|
| 2,327 |
|
|
| 1,727 |
|
Recoupable Legal Fee Write-Off(d) |
|
| - |
|
|
| 2,695 |
|
|
| - |
|
|
| 2,695 |
|
Other (Income) Expense, Net(e) |
|
| (1 | ) |
|
| - |
|
|
| 98 |
|
|
| (1 | ) |
Adjusted EBITDA |
| $ | 17,605 |
|
| $ | 15,869 |
|
| $ | 30,226 |
|
| $ | 25,982 |
|
Reflects the loss on foreign exchange fluctuations.
Reflects the non-cash loss or (gain) on the mark-to-market of interest rate swaps.
Reflects non-cash share-based compensation expense related to the Reservoir Media, Inc. 2021 Omnibus Incentive Plan.
Reflects the write-off of recoupable legal expenses and attorneys' fees. This non-recurring item relates to the resolution of a matter, which began in 2017, that was settled through mediation requiring Reservoir to expense legal fees from prior years that the Company had previously expected to recoup, resulting in a one-time write-off of
$2,695 thousand .Reflects Reservoir's share of loss recorded by an equity method investment.
Media Contact
Reservoir Media, Inc.
Suzy Arrabito
Vice President, Marketing & Communications
sa@reservoir-media.com
www.reservoir-media.com
Investor Contact
Alpha IR Group
Jackie Marcus or Nathan Skown
RSVR@alpha-ir.com
###
SOURCE: Reservoir Media, Inc.
View the original press release on accesswire.com
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