05/09/12 -- NeuLion, Inc. (TSX:NLN), the true end-to-end technology service provider fordelivering live and on-demand content to any Internet-enableddevice, today announced financial results for the three monthsended March 31, 2012. Revenue grew to $10.4 million for the threemonths ended March 31, 2012. (All amounts are in U.S. dollars.) First Quarter Financial Highlights: Revenue increased by $0.5 million, or 5%, as compared to the sameperiod a year ago.
Non-GAAP Adjusted EBITDA Loss (as defined below) improved by $0.1million, or 5%, as compared to the same period a year ago, andConsolidated Net Loss improved by $0.4 million, or 10%, as comparedto the same period a year ago. "Management is pleased with the continued expansion of thecompany's footprint in the burgeoning market of video contentstreaming," said Nancy Li, Chief Executive Officer of the Company."Driven by the proliferation of Internet-connected devices and thefundamental shift in video consumption habits, we continue to buildour proprietary technology and deliver targeted solutions inprofessional sports, TV Everywhere and college athletics. We fullyexpect our digital solutions to exploit the massive consumer demandfor viewing video content anytime, anywhere, especially as adoptionof interactive TV over the Internet accelerates." First Quarter Operational Highlights: Professional Sports Interactive video experience delivering live and on-demand video Launched NBA.TV, a new online video destination for internationalfans featuring the 24/7 NBA TV linear channel, complete live gamecoverage with interactive features and VOD content including fullgame replays, highlights and condensed game packages Launched a digital video portal and embeddable video players forthe Back9Network that features shows, interviews, travel, andlifestyle videos for golf fans. Partnered with the Canadian Broadcasting Corporation to deliver keyNHL highlight packages, including goal highlights and three-minuteend-game recaps for Hockey Night In Canada, starting with the 2012Stanley Cup Playoffs. College Athletics Scholastic athletic portal and online destination for fans Extended partnerships with Mississippi State and the University ofPennsylvania and provided those schools with enhanced digitalinitiatives, including HD video, video integration on Facebook,live highlight editing and additional mobile applications.
Announced multi-year partnership with Indiana University - PurdueUniversity Fort Wayne to provide a campus-wide ticketing platformwith a user-friendly experience, allowing students to purchasetickets, make donations and manage their accounts via a unique,single login, online destination. TV Everywhere Multi-device content delivery Created an authenticated online viewing experience for TorontoRaptors games that includes access to all the live action onmultiple devices for Rogers Sportsnet and Sportsnet ONEsubscribers. Delivered Internet-based pay-per-view service for the Major LeagueFishing Challenge Cup. As an extension of the Outdoor Channel, theonline service provided twice the coverage available on traditionalTV, including additional videos with commentary and uneditedreactions from competitors throughout the event.
Financial Results for the Three Months Ended March 31, 2012: Revenue was $10.4 million, as compared to $9.9 million for thethree months ended March 31, 2011, marking a period-over-periodincrease of $0.5 million, or 5%. Cost of revenue, exclusive of depreciation and amortization, was$4.5 million (43% of revenue), as compared to $4.0 million (40% ofrevenue) for the three months ended March 31, 2011, marking aperiod-over-period change of $0.5 million (3% of revenue). Consolidated net loss was $3.5 million, which includes $1.6 millionof non-cash and/or non-operating charges, netting a non-GAAPAdjusted EBITDA Loss of $1.9 million, as compared to a consolidatednet loss of $3.9 million, which includes $1.9 million of non-cashand/or non-operating charges, netting a non-GAAP Adjusted EBITDALoss of $2.0 million for the three months ended March 31, 2011,marking a period-over-period improvement in non-GAAP AdjustedEBITDA Loss of $0.1 million, or 5%. Non-cash and/or non-operatingcharges consist of depreciation and amortization, stock-basedcompensation, interest income, deferred income taxes and foreignexchange loss.
As of March 31, 2012, we had $9.3 million in cash and cashequivalents. Use of Non-GAAP Measures We report non-GAAP Adjusted EBITDA Loss because it is a key measureused by management to evaluate our results and make strategicdecisions about our company, including potential acquisitions.Non-GAAP Adjusted EBITDA Loss represents consolidated net lossbefore interest, income taxes, depreciation and amortization,stock-based compensation, unrealized gain/loss on derivatives,investment income, non-controlling interests, loss on dissolutionof majority-owned subsidiary and foreign exchange gain/loss. Thismeasure does not have any standardized meaning prescribed by U.S.generally accepted accounting principles (U.S. GAAP) and thereforeis unlikely to be comparable to the calculation of similar measuresused by other companies, and should not be viewed as an alternativeto measures of financial performance or changes in cash flowscalculated in accordance with U.S. GAAP.
The below table reconciles our non-GAAP Adjusted EBITDA Loss to itsmost directly comparable U.S. GAAP measure, consolidated net loss: Consolidated Statement of Operations Reconciliation: Three monthsended, March 31, 2012 2011 $ $ ---------- ---------- Consolidatednet loss on a GAAP basis (3,544,363) (3,903,054) Depreciation andamortization 1,238,600 1,445,419 Stock-based compensation 233,424395,214 Income tax provision 127,000 0 Interest income and foreignexchange loss 11,635 24,186 ---------- ---------- Non-GAAP AdjustedEBITDA Loss (1,933,704) (2,038,235) ========== ========== About NeuLion Founded in 2000, NeuLion, Inc. (TSX: NLN) offers the trueend-to-end solution for delivering live and on-demand content toany Internet-enabled device. NeuLion enables content owners anddistributors, cable operators and telecommunications companies tocapitalize on consumer demand for viewing video content on PCs,smartphones, iPads and other similar devices. NeuLion's customersinclude major entertainment, sports, global content and newscompanies.
NeuLion is based in Plainview, NY. For more informationabout NeuLion, visit . Forward-Looking Statements Forward-looking statements involve significant risk, uncertaintiesand assumptions. Although the forward-looking statements containedin this release are based upon what management believes to bereasonable assumptions, we cannot assure readers that actualresults will be consistent with these forward-looking statements.These forward-looking statements are made as of the date of thisrelease and we assume no obligation to update or revise them toreflect new events or circumstances, except as required by law.Many factors could cause our actual results, performance orachievements to be materially different from any future results,performance or achievements that may be expressed or implied bysuch forward-looking statements, including: our ability to developand execute on our business plan, including further diversifyingour customer base; continuing to invest in and expand oursports-related business; our ability to increase revenue; generaleconomic and market segment conditions; our customers' subscriberlevels; the financial health of our customers; our ability topursue and consummate acquisitions in a timely manner; ourcontinued relationships with our customers; our ability tonegotiate favorable terms for contract renewals; competitoractivity; product capability and acceptance rates; technologychanges; regulatory changes; foreign exchange risk; interest raterisk; and credit risk.
These factors should be considered carefullyand readers should not place undue reliance on the forward-lookingstatements. A more detailed assessment of the risks that couldcause actual results to materially differ from current expectationsis contained in Item 1A, "Risk Factors," in our Annual Report onForm 10-K for the fiscal year ended December 31, 2011, which isavailable on www.sec.gov and filed on . NEULION, INC. CONSOLIDATED BALANCE SHEETS (Expressed in U.S.dollars, unless otherwise noted) March 31, December 31, 2012 2011(unaudited) $ $ ------------- ------------- ASSETS Current Cash andcash equivalents 9,333,193 12,346,882 Accounts receivable, net ofallowance for doubtful accounts of $55,434 and $64,132,respectively 2,861,605 3,494,077 Other receivables 275,455 309,764Inventory 891,928 797,436 Prepaid expenses and deposits 1,015,8361,189,311 Due from related parties 937,961 734,452 -------------------------- Total current assets 15,315,978 18,871,922 Property,plant and equipment, net 4,024,768 4,294,476 Intangible assets, net5,962,620 6,609,465 Goodwill 11,327,626 11,327,626 Other assets223,706 226,266 ------------- ------------- Total assets 36,854,69841,329,755 ============= ============= LIABILITIES AND EQUITYCurrent Accounts payable 9,522,300 9,597,359 Accrued liabilities5,823,442 5,314,308 Due to related parties 16,256 13,298 Deferredrevenue 4,958,670 6,624,693 ------------- ------------- Totalcurrent liabilities 20,320,668 21,549,658 Long-term deferredrevenue 1,008,207 1,050,495 Other long-term liabilities 412,125432,159 Deferred tax liability 426,094 299,094 -------------------------- Total liabilities 22,167,094 23,331,406 -------------------------- Redeemable preferred stock, net (par value: $0.01;authorized: 50,000,000; issued and outstanding: 28,089,083) Class 3Preference Shares (par value: $0.01; authorized: 17,176,818; issuedand outstanding: 17,176,818) 10,000,000 10,000,000 Class 4Preference Shares (par value: $0.01; authorized; 10,912,265; issuedand outstanding: 10,912,265) 4,872,114 4,864,591 -------------------------- Total redeemable preferred stock 14,872,11414,864,591 ------------- ------------- Stockholders' equity Commonstock (par value: $0.01; authorized: 300,000,000; issued andoutstanding: 140,827,310 and 140,012,310, respectively) 1,408,2721,400,122 Additional paid-in capital 77,475,469 77,257,524Promissory notes receivable (209,250) (209,250) Accumulated deficit(78,859,001) (75,314,638) ------------- ------------- Total(deficit) equity (184,510) 3,133,758 ------------- -------------Total liabilities and equity 36,854,698 41,329,755 ========================== NEULION, INC. CONSOLIDATED STATEMENTS OF OPERATIONSAND COMPREHENSIVE LOSS (unaudited) (Expressed in U.S.
dollars,unless otherwise noted) Three months ended---------------------------- March 31, ----------------------------2012 2011 $ $ ------------- ------------- Revenue Services revenue9,831,354 9,563,930 Equipment revenue 537,162 382,068 -------------------------- 10,368,516 9,945,998 ------------- -------------Costs and Expenses Cost of services revenue, exclusive ofdepreciation and amortization shown separately below 4,047,5433,668,811 Cost of equipment revenue 466,693 311,562 Selling,general and administrative, including stock-based compensation6,464,858 6,911,413 Research and development 1,556,550 1,487,661Depreciation and amortization 1,238,600 1,445,419 -------------------------- 13,774,244 13,824,866 ------------- -------------Operating loss (3,405,728) (3,878,868) ------------- -------------Other income (expense) Loss on foreign exchange (13,881) (38,096)Interest income 2,246 13,910 ------------- ------------- (11,635)(24,186) ------------- ------------- Consolidated net andcomprehensive loss before income taxes (3,417,363) (3,903,054)Income tax provision (127,000) - ------------- -------------Consolidated net and comprehensive loss (3,544,363) (3,903,054) Netloss attributable to non-controlling interest - 9,754 -------------------------- Net and comprehensive loss attributable tocontrolling interest (3,544,363) (3,893,300) Adjustment to thecarrying amount of redeemable preferred stock - (267,656)------------- ------------- Net and comprehensive loss attributableto NeuLion, Inc. common stockholders (3,544,363) (4,160,956)============= ============= Net loss per weighted average number ofshares of common stock outstanding - basic and diluted $(0.03)$(0.03) ============= ============= Weighted average number ofshares of common stock outstanding - basic and diluted 140,173,684139,196,946 ============= ============= NEULION, INC. CONSOLIDATEDSTATEMENTS OF CASH FLOWS (unaudited) (Expressed in U.S. dollars,unless otherwise noted) Three months ended---------------------------- March 31, ----------------------------2012 2011 $ $ ------------- ------------- OPERATING ACTIVITIESConsolidated net loss (3,544,363) (3,903,054) Adjustments toreconcile net loss to cash used in operating activitiesDepreciation and amortization 1,238,600 1,445,419 Stock-basedcompensation 233,424 395,214 Deferred income taxes 127,000 -Changes in operating assets and liabilities Accounts receivable632,472 (97,568) Inventory (94,492) (147,302) Prepaid expenses,deposits and other assets 176,035 (326,337) Other receivables34,309 94,365 Due from related parties (203,509) (87,315) Accountspayable (75,059) (614,182) Accrued liabilities 509,328 283,266Deferred revenue (1,708,311) (1,596,708) Long-term liabilities(20,034) (2,679) Due to related parties 2,958 9,349 -------------------------- Cash used in operating activities (2,691,642)(4,547,532) ------------- ------------- INVESTING ACTIVITIESPurchase of property, plant and equipment, net (322,047) (299,286)------------- ------------- Cash used in investing activities(322,047) (299,286) ------------- ------------- Net decrease incash and cash equivalents during the period (3,013,689) (4,846,818)Cash and cash equivalents, beginning of period 12,346,88212,929,325 ------------- ------------- Cash and cash equivalents,end of period 9,333,193 8,802,507 ============= ============= Copyright @ Marketwire. I am Home & Garden writer, reports some information about dual coffee pot , spiked dog harness.
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