Highlights and Recent Developments
- Total revenues for the year ended
March 31, 2021 were$81.8 million , which represented an increase of 28% year-over-year, and were higher than previously forecasted. - Revenues for the first quarter 2022 increased by 23% to
$16.7 million as compared to the first quarter endedJune 30, 2020 (the “first quarter 2021”) and were consistent with the Company’s expectations:- Music Publishing revenues increased by 8% to
$12.3 million as compared to the first quarter 2021, mainly driven by existing catalog and catalog acquisitions, plus growth and contribution from streaming services for music consumption; and - Recorded Music revenues increased by 94% to
$4.2 million as compared to the first quarter 2021, largely due to strong physical sales on the Chrysalis catalog, the continued growth of streaming services and the acquisition ofTommy Boy Music, LLC during the first quarter 2022.
- Music Publishing revenues increased by 8% to
- For the first quarter 2022, operating income was
$282.0 million and OIBDA, defined as operating income before depreciation and amortization, was$4.4 million . Adjusting for the impact of the one-time$617.0 million benefit of the forgiveness of the Company’s loan under the Paycheck Protection Program during the first quarter 2021, OIBDA increased by 6% even with the additional costs during the first quarter 2022 associated with preparing to be a public company.(i) - Reservoir completed several acquisitions during the first quarter 2022, including an acquisition of the legendary independent hip-hop and electronic label
Tommy Boy Music, LLC onJune 2, 2021 for approximately$100.0 million . - Reservoir completed business combination with
Roth CH Acquisition II Co. , a special purpose acquisition company onJuly 28, 2021 , adding over$142 million after closing costs to the Company’s balance sheet.
“Our financial and operational accomplishments during the first quarter 2022 were indicative of the impressive team and momentum we have built at Reservoir,” said
About
Reservoir also represents a multitude of recorded music through Chrysalis Records,
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, including statements with respect to the financial condition, results of operations, earnings outlook and prospects of Reservoir. Forward-looking statements are based on the current expectations and beliefs of the management of Reservoir and are inherently subject to a number of risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual financial condition, results of operations, earnings and/or prospects to be materially different from those expressed or implied by these forward-looking statements. Any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements in this press release may include, among others:
- expectations regarding Reservoir’s strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures;
- Reservoir’s ability to invest in growth initiatives and pursue acquisition opportunities;
- the ability to achieve the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of Reservoir to grow and manage growth profitably and retain its key employees;
- the inability to maintain the listing of Reservoir’s common stock on the
Nasdaq Stock Market LLC and limited liquidity and trading of Reservoir’s securities;
- geopolitical risk and changes in applicable laws or regulations;
- the possibility that Reservoir may be adversely affected by other economic, business and/or competitive factors;
- risks related to the organic and inorganic growth of Reservoir’s business and the timing of expected business milestones;
- risk that the COVID-19 pandemic, and local, state and federal responses to addressing the COVID-19 pandemic, may have an adverse effect on Reservoir’s business operations, as well as its financial condition and results of operations; and
- litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on Reservoir’s resources.
Should one or more of these risks or uncertainties materialize or should any of the assumptions made by the management of Reservoir prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Except to the extent required by applicable law or regulation, Reservoir undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. For a more detailed discussion of risks and other factors that might impact forward-looking statements, see the Company’s filings with the
Source:
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(i) OIBDA
Reservoir’s management uses operating income before depreciation and amortization (“OIBDA”) to evaluate Reservoir’s operations, measure its performance and make strategic decisions. Reservoir believes that the use of OIBDA provides useful information to investors and others in understanding and evaluating Reservoir’s results of operations and trends in the same manner as Reservoir’s management. However, OIBDA is not a financial measure calculated in accordance with
The table below sets forth the reconciliation of OIBDA to operating income for the three months ended
For the Three Months Ended | ||||||||||||||
2021 vs. 2020 | ||||||||||||||
2021 | 2020 | $ Change | % Change | |||||||||||
Operating income | $ | 282 | $ | 1,306 | $ | (1,024 | ) | (78 | )% | |||||
Amortization expense | 4,048 | 3,374 | 674 | 20 | % | |||||||||
Depreciation expense | 31 | 56 | (25 | ) | (45 | )% | ||||||||
OIBDA | $ | 4,361 | $ | 4,736 | $ | (375 | ) | (8 | )% |
Media ContactReservoir Media, Inc. Suzy Arrabito Vice President,Marketing & Communications sa@reservoir-media.com www.reservoir-media.com Investor ContactAlpha IR Group Jackie Marcus orMike Dwyer RSVR@alpha-ir.com
Source:
2021 GlobeNewswire, Inc., source