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Qumu Announces First Quarter 2019 Results, Reiterates Confidence in Annual Guidance
Reading Time: 7 minutes
Company reports record gross margins, growing revenues and second
consecutive quarter of positive adjusted EBITDA
Conference Call Wednesday, May 1, 2019 at 10:00 a.m. ET
MINNEAPOLIS–(BUSINESS WIRE)–Qumu Corporation (NASDAQ: QUMU) today reported financial results for the
first quarter ended March 31, 2019. The Company reported first quarter
revenue of $7.1 million, a net loss of $(950,000) and adjusted EBITDA, a
non-GAAP measure, of $210,000, ending the quarter with cash of $8.6
million.
“Qumu has delivered a strong start to 2019, building on momentum from
the second half of 2018. Given our growing revenue, strong sales
pipeline, solid balance sheet and positive adjusted EBITDA for three of
the last four quarters, we have a high degree of confidence in our 2019
annual financial guidance,” said Vern Hanzlik, Qumu’s President and CEO.
“Convergence of the Enterprise Video market with the Web and Video
Conferencing market traditionally dominated by firms like Zoom, Cisco,
Microsoft, and Google is happening as we speak—and Qumu is directly
benefiting from it.”
For the three months ended March 31, 2019, revenue was $7.1 million,
compared to $4.8 million last year, and net loss was $(950,000), or
$(0.10) per diluted share, compared to $(4.5) million, or $(0.48) per
diluted share, for the first quarter 2018. For the three months ended
March 31, 2019, adjusted EBITDA was $210,000, compared to adjusted
EBITDA of $(2.9) million for the first quarter 2018.
Other Financial Highlights
-
Operating loss decreased by $3.3 million in the three months ended
March 31, 2019, compared to corresponding 2018 period. -
Gross margin for the first quarter 2019 was 78.3%, compared to 56.3%
for first quarter 2018. -
Cash and cash equivalents totaled $8.6 million as of March 31, 2019,
compared to $8.6 million as of December 31, 2018. -
Software license and appliance revenue was $1.0 million and $451,000
for the three months ended March 31, 2019 and 2018, respectively. -
Subscription, maintenance and support revenue was $5.6 million and
$4.0 million for the three months ended March 31, 2019 and 2018,
respectively. -
Operating expenses decreased $503,000 during the three months ended
March 31, 2019, compared to the corresponding 2018 period, reflecting
the impact of the Company’s improved operating efficiencies.
Business Outlook
The Company is reiterating its financial guidance for 2019:
-
Annual contract value bookings growth is expected to be 20% to 25% in
2019 compared to 2018. -
Revenue for 2019 is expected to be approximately $27 million. Gross
margin percentage is expected to be in the high 60s to low 70s. -
Net loss for 2019 is expected to be approximately $(5.1) million.
Adjusted EBITDA for 2019 is expected to be approximately $(1.5)
million. Forecasted adjusted EBITDA for 2019 excludes forecasted
interest expense of approximately $1.0 million, income tax benefit of
approximately $(0.2) million, depreciation expense of
approximately $0.3 million, amortization of acquired intangible assets
of approximately $1.2 million, stock-based compensation of
approximately $0.9 million, and increase in warrant liability of
approximately $0.4 million.
Conference Call
The Company has scheduled a conference call and webcast to review its
first quarter 2019 results tomorrow, May 1, 2019 at 10:00 a.m. Eastern
Time. The dial-in number for the conference call is 877-456-6914 for
domestic participants and 929-387-3794 for international participants.
Investors can also access a webcast of the live conference call by
linking through the Investor Relations section of the Qumu website, https://qumu.com/en/investor-relations/.
Webcasts will be archived on Qumu’s website.
Non-GAAP Information
To supplement the Company’s condensed consolidated financial statements
presented on a GAAP basis, the Company uses adjusted EBITDA, a non-GAAP
measure, which excludes certain items from net income (loss), a GAAP
measure. Adjusted EBITDA excludes items related to interest income and
expense, the impact of income-based taxes, depreciation and
amortization, stock-based compensation, change in fair value of warrant
liabilities, foreign currency gains and losses, and other non-operating
income and expenses.
The Company uses both GAAP and non-GAAP measures when planning,
monitoring, and evaluating the Company’s performance. The Company
believes that adjusted EBITDA is useful to investors because it provides
supplemental information that allows investors to review the Company’s
results of operations from the same perspective as management and the
Company’s board of directors. Non-GAAP results are presented for
supplemental informational purposes only for understanding our operating
results. The non-GAAP results should not be considered a substitute for
financial information presented in accordance with generally accepted
accounting principles, and may be different from non-GAAP measures used
by other companies.
See the attached Supplemental Financial Information for a reconciliation
of net loss, a GAAP measure, to adjusted EBITDA, a non-GAAP measure, for
the three months ended March 31, 2019 and 2018.
Forward-Looking Statements
This press release contains forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Any statements contained in this press
release that are not statements of historical fact may be deemed to be
forward-looking statements. Without limiting the foregoing, words such
as “may,” “will,” “expect,” “believe,” “anticipate,” or “estimate” or
comparable terminology are intended to identify forward-looking
statements. Such forward-looking statements include, for example,
statements about: the Company’s future revenue and operating
performance, cash balances, future product mix or the timing of
recognition of revenue and the demand for the Company’s products or
software. The statements made by the Company are based upon management’s
current expectations and are subject to certain risks and uncertainties
that could cause the actual results to differ materially from those
described in the forward-looking statements. These risks and
uncertainties include the risk factors described in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2018 and other
factors set forth in the Company’s filings with the Securities and
Exchange Commission.
About Qumu
Qumu (Nasdaq: QUMU) is the leading provider of best-in-class tools to
create, manage, secure, distribute and measure the success of live and
on-demand video for the enterprise. Backed by the most trusted and
experienced team in the industry, the Qumu platform enables global
organizations to drive employee engagement, increase access to video,
and modernize the workplace by providing a more efficient and effective
way to share knowledge.
|
QUMU CORPORATION |
||||||||
|
Condensed Consolidated Statements of Operations |
||||||||
|
(unaudited – in thousands, except per share data) |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenues: | ||||||||
| Software licenses and appliances | $ | 1,005 | $ | 451 | ||||
| Service | 6,093 | 4,380 | ||||||
| Total revenues | 7,098 | 4,831 | ||||||
| Cost of revenues: | ||||||||
| Software licenses and appliances | 311 | 335 | ||||||
| Service | 1,226 | 1,777 | ||||||
| Total cost of revenues | 1,537 | 2,112 | ||||||
| Gross profit | 5,561 | 2,719 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,674 | 1,903 | ||||||
| Sales and marketing | 2,352 | 2,180 | ||||||
| General and administrative | 1,746 | 2,181 | ||||||
| Amortization of purchased intangibles | 218 | 229 | ||||||
| Total operating expenses | 5,990 | 6,493 | ||||||
| Operating loss | (429 | ) | (3,774 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense, net | (205 | ) | (844 | ) | ||||
| Decrease (increase) in value of warrant liability | (289 | ) | 387 | |||||
| Other, net | (31 | ) | (387 | ) | ||||
| Total other expense, net | (525 | ) | (844 | ) | ||||
| Loss before income taxes | (954 | ) | (4,618 | ) | ||||
| Income tax benefit | (4 | ) | (88 | ) | ||||
| Net loss | $ | (950 | ) | $ | (4,530 | ) | ||
| Net loss per share – basic and diluted: | ||||||||
| Net income loss per share | $ | (0.10 | ) | $ | (0.48 | ) | ||
| Weighted average shares outstanding | 9,688 | 9,370 | ||||||
|
QUMU CORPORATION |
||||||||
|
Condensed Consolidated Balance Sheets |
||||||||
|
(unaudited – in thousands) |
||||||||
| March 31, | December 31, | |||||||
| Assets | 2019 | 2018 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 8,571 | $ | 8,636 | ||||
| Receivables, net | 4,380 | 6,278 | ||||||
| Contract assets | 1,661 | 485 | ||||||
| Income taxes receivable | 339 | 327 | ||||||
| Prepaid expenses and other current assets | 2,140 | 2,192 | ||||||
| Total current assets | 17,091 | 17,918 | ||||||
| Property and equipment, net | 680 | 545 | ||||||
| Right of use assets – operating leases | 1,128 | — | ||||||
| Intangible assets, net | 3,956 | 4,247 | ||||||
| Goodwill | 7,134 | 6,971 | ||||||
| Deferred income taxes, non-current | 53 | 55 | ||||||
| Other assets, non-current | 476 | 544 | ||||||
| Total assets | $ | 30,518 | $ | 30,280 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued liabilities | $ | 2,640 | $ | 2,838 | ||||
| Accrued compensation | 1,150 | 1,548 | ||||||
| Deferred revenue | 9,558 | 9,672 | ||||||
| Operating lease liabilities | 549 | — | ||||||
| Deferred rent | — | 45 | ||||||
| Term loan and other financing obligations | 3,690 | 152 | ||||||
| Warrant liability | 3,087 | 2,798 | ||||||
| Total current liabilities | 20,674 | 17,053 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, non-current | 1,425 | 1,672 | ||||||
| Income taxes payable, non-current | 568 | 563 | ||||||
| Deferred tax liability, non-current | — | 2 | ||||||
| Operating lease liabilities, non-current | 1,021 | — | ||||||
| Deferred rent, non-current | — | 302 | ||||||
| Term loan and other financing obligations, non-current | 146 | 3,488 | ||||||
| Other liabilities, non-current | — | 195 | ||||||
| Total long-term liabilities | 3,160 | 6,222 | ||||||
| Total liabilities | 23,834 | 23,275 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 98 | 96 | ||||||
| Additional paid-in capital | 69,266 | 69,072 | ||||||
| Accumulated deficit | (59,635 | ) | (58,875 | ) | ||||
| Accumulated other comprehensive loss | (3,045 | ) | (3,288 | ) | ||||
| Total stockholders’ equity | 6,684 | 7,005 | ||||||
| Total liabilities and stockholders’ equity | $ | 30,518 | $ | 30,280 | ||||
|
QUMU CORPORATION |
||||||||
|
Condensed Consolidated Statements of Cash Flows |
||||||||
|
(unaudited – in thousands) |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (950 | ) | $ | (4,530 | ) | ||
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
| Depreciation and amortization | 408 | 699 | ||||||
| Stock-based compensation | 231 | 210 | ||||||
| Accretion of debt discount and issuance costs | 128 | 746 | ||||||
| Gain on lease modification | (21 | ) | — | |||||
| Decrease in value of warrant liability | 289 | (387 | ) | |||||
| Deferred income taxes | — | (37 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables | 1,914 | 1,645 | ||||||
| Contract assets | (1,176 | ) | 14 | |||||
| Income taxes receivable / payable | (3 | ) | (62 | ) | ||||
| Prepaid expenses and other assets | 125 | (317 | ) | |||||
| Accounts payable and other accrued liabilities | (75 | ) | (444 | ) | ||||
| Accrued compensation | (405 | ) | — | |||||
| Deferred revenue | (424 | ) | 603 | |||||
| Deferred rent | — | (75 | ) | |||||
| Other non-current liabilities | (24 | ) | 186 | |||||
| Net cash provided by (used in) operating activities | 17 | (1,749 | ) | |||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (14 | ) | (2 | ) | ||||
| Net cash used in investing activities | (14 | ) | (2 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from term loan and warrant issuance | — | 10,000 | ||||||
| Principal payments on term loans | — | (8,000 | ) | |||||
| Payments for term loan issuance costs | — | (1,308 | ) | |||||
| Principal payments on financing obligations | (80 | ) | (99 | ) | ||||
| Common stock repurchases to settle employee withholding liability | (36 | ) | (19 | ) | ||||
| Net cash provided by (used in) financing activities | (116 | ) | 574 | |||||
| Effect of exchange rate changes on cash | 48 | 45 | ||||||
| Net decrease in cash and cash equivalents | (65 | ) | (1,132 | ) | ||||
| Cash and cash equivalents, beginning of period | 8,636 | 7,690 | ||||||
| Cash and cash equivalents, end of period | $ | 8,571 | $ | 6,558 | ||||
|
QUMU CORPORATION |
||||||||
|
Supplemental Financial Information |
||||||||
|
(unaudited – in thousands) |
||||||||
|
A summary of revenue is as follows: |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Software licenses and appliances | $ | 1,005 | $ | 451 | ||||
| Service | ||||||||
| Subscription, maintenance and support | 5,563 | 4,038 | ||||||
| Professional services and other | 530 | 342 | ||||||
| Total service | 6,093 | 4,380 | ||||||
| Total revenue | $ | 7,098 | $ | 4,831 | ||||
|
A reconciliation from GAAP results to adjusted EBITDA is as |
||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Net loss | $ | (950 | ) | $ | (4,530 | ) | ||
| Interest expense, net | 205 | 844 | ||||||
| Income tax benefit | (4 | ) | (88 | ) | ||||
| Depreciation and amortization expense: | ||||||||
| Depreciation and amortization in cost of revenues | — | 3 | ||||||
| Depreciation and amortization in operating expenses | 73 | 169 | ||||||
| Total depreciation and amortization expense | 73 | 172 | ||||||
| Amortization of intangibles included in cost of revenues | 117 | 298 | ||||||
| Amortization of intangibles included in operating expenses | 218 | 229 | ||||||
| Total amortization of intangibles expense | 335 | 527 | ||||||
| Total depreciation and amortization expense | 408 | 699 | ||||||
| EBITDA | (341 | ) | (3,075 | ) | ||||
| Increase (decrease) in fair value of warrant liability | 289 | (387 | ) | |||||
| Other expense, net | 31 | 387 | ||||||
| Stock-based compensation expense: | ||||||||
| Stock-based compensation included in cost of revenues | 8 | 10 | ||||||
| Stock-based compensation included in operating expenses | 223 | 200 | ||||||
| Total stock-based compensation expense | 231 | 210 | ||||||
| Adjusted EBITDA | $ | 210 | $ | (2,865 | ) | |||
Contacts
Dave Ristow
Chief Financial Officer
Qumu Corporation
[email protected]
+1.612.638.9045
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Cannabis
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TORONTO and GLIL YAM, Israel, April 16, 2024 /PRNewswire/ — IM Cannabis Corp. (CSE: IMCC) (NASDAQ: IMCC) (the “Company” or “IMC“), a leading medical cannabis company with operations in Israel and Germany, is announcing that, further to the news release dated January 12, 2024, the Company has decided not to make remaining installment payments installments (i.e. NIS 5,873K including interest or 2,154K CAD) by IMC Holdings Ltd., and as such will transfer the 51% shares held by IMC Holdings Ltd back to the seller.
“With the April 1st cannabis legalization in Germany, we are focusing our resources on the German market, where we expect to see the biggest growth potential,” said Oren Shuster, CEO of IMC. “With both of our core markets, Germany and Israel, currently undergoing rapid evolution, we need to assure that we allocate our resources to the growth opportunities where we expect the best return on investment.”
About IM Cannabis Corp.
IMC (Nasdaq: IMCC) (CSE: IMCC) is an international cannabis company that provides premium cannabis products to medical patients in Israel and Germany, two of the largest medical cannabis markets. The Company has recently exited operations in Canada to pivot its focus and resources to achieve sustainable and profitable growth in its highest value markets, Israel and Germany. The Company leverages a transnational ecosystem powered by a unique data-driven approach and a globally sourced product supply chain. With an unwavering commitment to responsible growth and compliance with the strictest regulatory environments, the Company strives to amplify its commercial and brand power to become a global high-quality cannabis player.
The IMC ecosystem operates in Israel through its commercial relationship with Focus Medical Herbs Ltd., which imports and distributes cannabis to medical patients, leveraging years of proprietary data and patient insights. The Company also operates medical cannabis retail pharmacies, online platforms, distribution centers, and logistical hubs in Israel that enable the safe delivery and quality control of IMC’s products throughout the entire value chain. In Germany, the IMC ecosystem operates through Adjupharm GmbH, where it distributes cannabis to pharmacies for medical cannabis patients. Until recently, the Company also actively operated in Canada through Trichome Financial Corp and its wholly owned subsidiaries, where it cultivated, processed, packaged, and sold premium and ultra-premium cannabis at its own facilities under the WAGNERS and Highland Grow brands for the adult-use market in Canada. The Company has exited operations in Canada and considers these operations discontinued.
Disclaimer for Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements under applicable Canadian and U.S. securities laws (collectively, “forward-looking statements”). All information that addresses activities or developments that we expect to occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. In the press release, such forward-looking statements include, but are not limited to, the occurrence of growth opportunities and the likelihood of growth potential.
Forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to: the development and introduction of new products; continuing demand for medical and adult-use recreational cannabis in the markets in which the Company operates; the Company’s ability to reach patients through both e-commerce and brick and mortar retail operations; the Company’s ability to maintain and renew or obtain required licenses; the effectiveness of its products for medical cannabis patients and recreational consumers; and the Company’s ability to market its brands and services successfully to its anticipated customers and medical cannabis patients.
The above lists of forward-looking statements and assumptions are not exhaustive. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated or implied by such forward looking statements due to a number of factors and risks. These include: any failure of the Company to maintain “de facto” control over Focus Medical in accordance with IFRS 10; the failure of the Company to comply with applicable regulatory requirements in a highly regulated industry; unexpected changes in governmental policies and regulations in the jurisdictions in which the Company operates; the effect of the reform on the Company; the Company’s ability to continue to meet the listing requirements of the Canadian Securities Exchange and the NASDAQ Capital Market; any unexpected failure to maintain in good standing or renew its licenses; the ability of the Company and Focus Medical (collectively, the “Group”) to deliver on their sales commitments or growth objectives; the reliance of the Group on third-party supply agreements to provide sufficient quantities of medical cannabis to fulfil the Group’s obligations; the Group’s possible exposure to liability, the perceived level of risk related thereto, and the anticipated results of any litigation or other similar disputes or legal proceedings involving the Group; the impact of increasing competition; any lack of merger and acquisition opportunities; adverse market conditions; the inherent uncertainty of production quantities, qualities and cost estimates and the potential for unexpected costs and expenses; risks of product liability and other safety-related liability from the usage of the Group’s cannabis products; supply chain constraints; reliance on key personnel; the risk of defaulting on existing debt and war, conflict and civil unrest in Eastern Europe and the Middle East
Any forward-looking statement included in this press release is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made.
The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Company Contacts:
Anna Taranko, Director Investor & Public Relations
IM Cannabis Corp.
+49 157 80554338
[email protected]
Oren Shuster, Chief Executive Officer
IM Cannabis Corp.
[email protected]
Logo – https://mma.prnewswire.com/media/1742228/IM_Cannabis_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/imc-to-transfer-its-oranim-pharmacy-shares-back-to-the-seller-302117984.html
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