Cosmo DeNicola Companies News

Wednesday, May 16, 2018

Chicken Soup for the Soul Entertainment Releasing Label Launched

DENVER, May 14, 2018 /PRNewswire/ -- Fans of the world's most recognized storyteller Chicken Soup for the Soul can now experience their favorite inspirational series on the big screen. A new line-up of cinema events from Fathom Events and Chicken Soup for the Soul Entertainment's Screen Media Ventures ("Screen Media") will begin with "One Last Thing," starring Wendell Pierce, Jurnee Smollett-Bell and Joanne Froggatt, this June. The companies anticipate additional titles will be announced soon and will follow later this year. In addition to the feature content, audiences will also enjoy exclusive bonus content paired with each film.

Tickets for "One Last Thing" can be purchased at www.FathomEvents.com and at participating theater box offices.

Fathom Events and Screen Media will present "One Last Thing" on Wednesday, June 13 at 7:00 p.m. local time through Fathom's Digital Broadcast Network (DBN) as the first Chicken Soup for the Soul branded cinema event. A complete list of theater locations will be available May 11 on the Fathom Events website (theaters and participants are subject to change).

In "One Last Thing," Dylan Derringer (Wendell Pierce, the upcoming Jack Ryan series, TV's The Wire), a lonely dentist in Florida, is reunited with his long-lost daughter Lucy (Jurnee Smollett-Bell, TV's Friday Night Lights and Underground) after years apart. This sends him on an eventful and ultimately life-changing journey of discovery that includes the person closest to him, Jamie (Joanne Froggatt, TV's Downton Abbey). Directed and written by Tim Rouhana, the film illustrates the importance of fatherhood and the true meaning of family.

"One Last Thing" is the first movie to be released under Screen Media's new Chicken Soup for the Soul Entertainment Releasing banner, which brings inspirational, entertaining and uplifting stories to movie audiences everywhere.

"Screen Media is excited to be part of the Chicken Soup for the Soul Entertainment family. This programming initiative and the launch of a second theatrical releasing label for our company are examples of the kind of exciting expansion opportunities available to us at Screen Media as a result of our being acquired by Chicken Soup for the Soul Entertainment," President of Screen Media David Fannon said. "We expect this will become a long-running series, and Fathom Events is the perfect theatrical partner for this content."

"We're excited to partner with Screen Media to launch this inspirational new series," Fathom Events CEO Ray Nutt said. "Now more than ever, we see the need to deliver positive messages to as many people as possible, and we hope to do that with this series."

For artwork/photos related to "One Last Thing," visit the Fathom Events press site.

For original article, visit: https://www.prnewswire.com/news-releases/fathom-events-and-chicken-soup-for-the-soul-entertainments-screen-media-ventures-bring-new-branded-series-to-movie-theaters-in-2018-300647776.html

Monday, April 30, 2018

Chicken Soup for the Soul Entertainment Closes on a $7.5 Million Bank Loan From Patriot Bank

Chicken Soup for the Soul Entertainment, Inc. ("CSS Entertainment") (Nasdaq:CSSE), a growing media company building online video on-demand ("VOD") networks that provide positive and entertaining video content for all screens, today announced that it has closed on a previously announced commercial credit proposal from Patriot Bank, N.A. for $7.5 million. The financing consists of a 5-year, $5.0 million term loan and a 3-year, $2.5 million revolving credit facility.

"This term loan and credit facility provides CSS Entertainment with up to $7.5 million in increased borrowing capacity for acquisitions and general corporate purposes, giving us increased flexibility to execute on our business plan," said Scott W. Seaton, Vice Chairman & Chief Strategy Officer of CSS Entertainment.

"CSS Entertainment is on the cutting edge of the growing on-demand content delivery sector, with robust assets and a clear strategic plan moving forward," said Richard A. Muskus, Jr., President of Patriot Bank, N.A. "Patriot Bank is excited to support this innovative consumer brand as it continues to achieve impressive market expansion and delivers further value to its customers and shareholders."

$1.7 million of the proceeds will be used to repay the company's existing credit line which will be replaced by this new credit facility.

Wednesday, March 28, 2018

Chicken Soup for the Soul Entertainment Announces FY 2017 Results

Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”) (Nasdaq:CSSE), a fast-growing provider of positive and entertaining video content, today announced its financial results for the three and 12-month periods ended December 31, 2017.

Full Year 2017 and Subsequent Business Highlights

Completed $30.0 million IPO in August 2017
Completed acquisition of Screen Media Ventures, LLC (“Screen Media”), substantially transforming the company from primarily production to a top-tier player in the exploding direct-to-consumer entertainment market
Obtained sponsors for four series: Chicken Soup for the Soul’s Hidden Heroes, Being Dad, Vacation Rental Potential and The New Americans
Board approved a $5.0 million Share Repurchase Program
Secured an independent, third-party valuation opinion that the newly acquired assets from Screen Media are valued at approximately $31.4 million, with the Popcornflix^® direct-to-consumer online video service and associated content rights and the Screen Media TV and film library assets
As a result of this valuation, the Company recognized a non-recurring gain on bargain purchase of $24.1 million, recorded in the fourth quarter of 2017
Expanded management team by promoting Elana Sofko to the new position of chief operating officer, naming Susan Kravitz as executive vice president of sales and strategic sponsorships, and appointing Lou Occhicone as its senior vice president of business affairs and distribution
Agreed to a commercial credit proposal from a bank for $7.5 million consisting of a 5-year $5.0 million term loan and a 3-year $2.5 million revolving credit facility which is expected to close shortly
Reiterated 2018 outlook of approximately $36.0 million in revenue and $18.0 million in Adjusted EBITDA

William J. Rouhana, Jr., chairman and chief executive officer, stated “The milestone acquisition of Screen Media in November has meaningfully enhanced our trajectory and mitigated the risk to our business. This single transaction provides us with a significant asset base independently appraised at more than $31.0 million in the form of a library of more than 1,200 television series and feature films and Popcornflix: five additional ad-supported video-on-demand, or VOD, networks with more than 15 million active users and rights to an additional 1,800 movies and 1,500 TV episodes. With a purchase price of only 1X EBITDA, we effectively created more than twice as much shareholder value based on Adjusted EBITDA as we expected to create from operations for 2017. Our goal has always been to develop, launch and grow online VOD networks that are both advertising-supported and subscription-based. Our historical production activity has always been designed to subsidize this effort by producing original content and generating revenue and profits. Now, we have two of our lines of business, Production and Distribution, that generate revenue and profits, both of which subsidize our third line of business, the VOD business.”

Rouhana continued, “We have already increased the value of the Screen Media assets and continue to see opportunities for additional growth. In the first two months of 2018, Screen Media’s revenue is up 67% on a stand-alone basis compared to its revenue in the first two months last year, and Screen Media’s Adjusted EBITDA increased 96% during the same period year-over-year. In addition, the advertising rates we charge for Popcornflix are up over 10% compared to this time last year, before the addition of analytics and the impact of direct sales efforts. Additionally, app downloads since January 1, 2018 have exceeded 3.8 million, which is more app installs than in all of 2017.”

“We are reiterating our full-year 2018 outlook of $36.0 million in revenue and $18.0 million in Adjusted EBITDA,” said Scott W. Seaton, Vice Chairman. “In addition, we expect to generate between $5.5 million and $6.2 million in revenue, and $1.5 million to $2.0 million in Adjusted EBITDA, in the first quarter of 2018 compared to $1.4 million of revenue and $670,000 of Adjusted EBITDA in the same quarter last year. While the Screen Media acquisition has significantly reduced the percentage of overall annual revenue generated in the fourth quarter, we still expect the fourth quarter to represent our highest revenue quarter in 2018. A portion of our anticipated first quarter results are related to revenue that was expected to be recognized in the fourth quarter of 2017 but shifted into early 2018 as we focused on Screen Media’s integration and laying the groundwork for 2018. The balance is due to strong performance by each of our three revenue areas: online networks, distribution and production. We expect to generate approximately $1 million in revenue from our online networks in the first quarter, up from just over $150,000 in the first quarter last year. Production revenue will increase by more than 50% year-over-year, and we have added distribution as a new revenue area.”

Q4 2017 Financial Summary

Net income for the three months ended December 31, 2017 was $24.1 million compared to $1.6 million for the year-ago period.

Total revenue for the three months ended December 31, 2017 was $8.7 million, up 53% compared to $5.7 million for the year-ago period. The increase was primarily driven by the acquisition of Screen Media in November 2017. Revenue was generated as follows:

Online networks, which include A Plus and Popcornflix, generated $570,000 in revenue in the fourth quarter of 2017 compared to $398,000 in the fourth quarter last year.
Television and film distribution generated $2.9 million in the fourth quarter.
Television and short-form video production generated $5.2 million in the fourth quarter, compared to $5.3 million in the fourth quarter last year.

Gross profit for the three months ended December 31, 2017 was $5.8 million, or 66% of total revenue, compared to $3.6 million, or 64% of total revenue, for the year-ago period.

Operating income for the three months ended December 31, 2017 was $3.3 million compared to $2.9 million for the year-ago period.

Full Year 2017 Financial Summary

Net income for the 12 months ended December 31, 2017 was $22.8 million, which includes the one-time pretax gain on the purchase of Screen Media, compared to $781,000 for the year-ago period.

Total revenue for the 12 months ended December 31, 2017 was $11.0 million, up 35% compared to $8.1 million for the year-ago period. The increase was primarily driven by the acquisition of Screen Media in November 2017.

Gross profit for the 12 months ended December 31, 2017 was $7.2 million (excluding film library amortization), or 66% of total revenue compared to $5.0 million, or 61% of total revenue for the year-ago period.

Operating income for the 12 months ended December 31, 2017 was $3.0 million (excluding film library amortization) compared to $1.8 million for the year-ago period.

Adjusted EBITDA for the 12 months ended December 31, 2017 was $28.3 million compared to $3.8 million for the year-ago period.

As of December 31, 2017 the company had $2.2 million of cash and cash equivalents, up $1.7 million, compared to $500,000 as of December 31, 2016.

The company had outstanding debt of $1.5 million as of December 31, 2017 compared to $5.9 million outstanding as of December 31, 2016.

The company will be filing an annual report on Form 10-K with the SEC with respect to its financial results.

Q1 and Full Year 2018 Outlook

For Q1 2018, the company expects to report:

Revenue between $5.5 million and $6.2 million compared to $1.4 million for the prior year
Adjusted EBITDA, a non-GAAP measure, between $1.5 million and $2.0 million compared to $670,000 for the prior year

On a pro forma basis in 2017, the company (including Screen Media as if it had been owned for the full year) had revenue of $19.8 million and Adjusted EBITDA of $7.3 million.

Building on this base, for the full-year 2018, the company expects to report:

Revenue of approximately $36.0 million
Adjusted EBITDA of approximately $18.0 million

On March 27, 2018, the company’s Board of Directors approved a $5 million share repurchase program, authorizing the company to repurchase its own outstanding common shares from time to time in open market transactions in compliance with SEC Rule 10b-18 or privately-negotiated transactions. The share repurchase program may be suspended or terminated by the Board of Directors at any time. The company anticipates repurchases, if any, will be funded by cash on hand.

The company agreed to a commercial credit proposal from a bank on March 10, 2018 for $7.5 million consisting of a 5-year $5.0 million term loan and a 3-year $2.5 million revolving credit facility that may be used for working capital and general corporate purposes, including acquisitions. This financing is expected to close shortly.

For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"), see "Note Regarding Use of Non-GAAP Financial Measures" below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures.

The company presents non-GAAP measures such as Adjusted EBITDA and Pro Forma Adjusted EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the Company's operating performance.

Wednesday, January 17, 2018

Chicken Soup for the Soul Entertainment's Recently Acquired Screen Media Assets Appraised At Over $31 Million

Chicken Soup for the Soul Entertainment, Inc., a fast-growing provider of positive and entertaining video content, has filed with the Securities and Exchange Commission a Form 8-K/A, as required, updating the Form 8-K filed on November 6, 2017 and providing audited and additional financial information relating to CSS Entertainment’s acquisition of Screen Media Ventures, LLC (“Screen Media”).

The value of all the recently acquired assets, as set forth in an independent, third-party valuation opinion dated January 11, 2018 (the “Valuation Opinion”), is approximately $31.4 million. The Valuation Opinion places a value on the Popcornflix direct-to-consumer online video service and associated content rights and the Screen Media TV and film library assets of approximately $27.9 million.

“Screen Media is comprised of an extraordinary collection of assets,” said William J. Rouhana, Jr., chairman and chief executive officer. “We are extremely fortunate to have had the opportunity to acquire these assets at such a substantial discount not only to their appraised value, but also to their intrinsic value and replacement cost.”

Reflecting the excess of the net appraised value of the assets over their purchase price as set forth in the Valuation Opinion, CSS Entertainment will recognize a non-cash gain in its Statement of Operations for the year ended December 31, 2017 of approximately $22.2 million.

“The appraised value of the Screen Media assets substantially exceeds our initial estimates,” stated Scott W. Seaton, vice chairman and chief strategy officer. “Consistent with our prior expectations, Screen Media generated more than $12 million in net revenue and $5 million in Adjusted EBITDA in 2017. We anticipate Screen Media’s 2018 net revenue and Adjusted EBITDA to substantially exceed its 2017 results.”

Mr. Rouhana added, “We continue to pursue additional transformative opportunities that would complement our growing portfolio of assets and further drive growth in revenues, profits and shareholder value.”

The Popcornflix direct-to-consumer online video service is comprised of five ad-supported networks with rights to over 3,000 films and approximately 60 television series (representing approximately 1,500 episodes) and is available in 56 countries. The Popcornflix app has been downloaded approximately 25 million times and has approximately 15 million active users.

The Screen Media content library is comprised of over 1,200 television series and feature films and is one of the largest, independently-owned libraries of filmed entertainment in the world. Through direct worldwide relationships, this content is distributed across all media, including theatrical, home video, pay-per-view, free cable and paid television, video-on-demand and existing and emerging video platforms.

Friday, January 12, 2018

Chicken Soup for the Soul Entertainment to Present at the 20th Annual Needham Growth Conference on January 18

Chicken Soup for the Soul Entertainment, a fast-growing provider of positive and entertaining video content, today announced that management will attend the 20^th Annual Needham Growth Conference in New York City on January 17-18, 2018. The Needham Growth Conference provides institutional, private equity and venture capital investors with access to over 320 growth companies from a broad range of industries.

Chairman and chief executive officer William J. Rouhana, Jr. is scheduled to present on January 18 at 4:50 p.m. ET. Mr. Rouhana will be joined by vice chairman and chief strategy officer Scott Seaton to host one-on-one and small group meetings throughout both days of the conference.

Management's presentation will be webcast live and available for replay on the Event Calendar section of the Company’s Investor Relations website.

Tuesday, November 28, 2017

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT TO PARTICIPATE IN THE GLOBAL MIZUHO INVESTOR CONFERENCE

Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”) (Nasdaq: CSSE), a fast-growing provider of positive and entertaining video content, today announced that chairman and chief executive officer, William J. Rouhana, Jr., and vice chairman and chief strategy officer, Scott W. Seaton, will participate in The Global Mizuho Investor Conference on December 4th in New York City. Messrs. Rouhana and Seaton to host one-on-one and small group meetings throughout the day.

Monday, November 6, 2017

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT COMPLETES MILESTONE ACQUISITION OF SCREEN MEDIA

Chicken Soup for the Soul Entertainment, Inc. (“CSS Entertainment”) (Nasdaq: CSSE), a fast-growing provider of positive and entertaining video content, today announced the completion of the acquisition of Screen Media Ventures, LLC (“Screen Media”). The transaction was completed after the market close on Friday, November 3, 2017.

The Screen Media acquisition dramatically enhances the value of CSS Entertainment’s portfolio of assets, as well as CSS Entertainment’s capacity to drive revenue and profit growth.

“Screen Media’s assets are an extraordinary addition to our growing portfolio of highly-valuable media assets,” said William J. Rouhana, Jr., chairman and chief executive officer. “As we have regularly communicated to the investment community, our intention has always been to identify potentially transformative opportunities that enable us to achieve our ambitious growth plans.”

The Screen Media content library of over 1,200 television series and feature films is one of the largest, independently-owned libraries of filmed entertainment in the world. Through direct worldwide relationships, this content is distributed across all media, including theatrical, home video, pay-per-view, free cable and paid television, video-on-demand and existing and emerging video platforms.

The Screen Media assets also include the direct-to-consumer Popcornflix online video platform. This platform is comprised of five digital streaming channels. The Popcornflix direct-to-consumer platform is available in 56 countries and has current rights to over 3,000 films and approximately 60 television series (representing 1,500 episodes). The Popcornflix app has been downloaded approximately 24 million times on iOS and Android smartphones and other devices. For the 12 months ended September 30, 2017, Popcornflix had 15 million active users.

“The Screen Media acquisition accomplishes numerous strategic objectives in a single transaction,” added Mr. Rouhana. “Objectives we have emphasized to investors include: building our portfolio of assets; expanding our content distribution capabilities; deploying our ad sales capabilities to maximize monetization of acquired content; expanding and diversifying our sources and timing of revenue (including realizing our revenue more evenly throughout all four quarters of the year); and accelerating tangible growth in shareholder value. We are thrilled to be checking all of these boxes in a single transaction.”

Screen Media is expected to generate approximately $12 million in revenue and approximately $5 million in EBITDA for the full year 2017. A 2017 appraisal valued the Screen Media library and Popcornflix direct-to-consumer platform at approximately $25 million. As required, CSS Entertainment is securing a new independent asset appraisal which will be reflected (along with additional financial information) in an amendment to the Form 8-K being filed today with the SEC. The amended Form 8-K/A is required be filed within 75 days of the closing of the Screen Media acquisition.

“We have been highly disciplined in reviewing numerous opportunities and pursuing those that can dramatically accelerate the implementation of our strategic plan and provide greater diversity of our revenue streams, allowing us to prioritize the timing of various initiatives,” said Scott W. Seaton, vice chairman and chief strategy officer. “Our recent IPO has provided us with the necessary capital resources to diversify our revenue both organically and through acquisitions.”

At September 30, 2017, as set forth in our quarterly report also being filed today with the SEC, CSS Entertainment had in excess of $15 million in liquidity and no debt.

Mr. Seaton added, “We continue to have a strong balance sheet with no debt and substantial liquidity, including cash on hand, an unused line of credit and positive operating cash flow. We now expect our Q4 2017 Adjusted EBITDA to substantially exceed $10 million.”

The purchase price of Screen Media was comprised of approximately $4.9 million in cash, the issuance of 35,000 shares of CSS Entertainment’s Class A common stock and CSS Entertainment’s Class Z warrants exercisable into 50,000 shares of CSS Entertainment’s Class A common stock at $12 per share.

“We are extremely fortunate to have had the opportunity to acquire Screen Media’s valuable assets at a significant discount to their appraised value, intrinsic value and replacement cost,” stated Mr. Rouhana. “We had been following Screen Media closely and were patient in waiting for an attractive opening to acquire these assets. Given our familiarity with Screen Media, our strong balance sheet with ample liquidity and no debt, we were well positioned to move forward quickly with the purchase.”

CSS Entertainment’s management will host a conference call this morning, November 6, 2017, at 8:30 a.m. ET. To participate on the conference call, please dial toll-free (833) 832-5128 approximately 10 minutes prior to the start of the conference call. International callers may dial (484) 747-6583. Please reference conference ID # 8672469.

The conference call is also being webcast with an accompanying presentation, which can be accessed through the investor relations section of CSS Entertainment’s website, http://www.cssentertainment.com/. Please access the website 15 minutes prior to the start of the conference call to download and install any necessary audio software and download the presentation.

An archived replay of the conference call will also be available through the investor relations section of CSS Entertainment’s website approximately one hour following the completion of the call and will be made available for a period of 12 months.

Thursday, October 12, 2017

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT LAUNCHES PRODUCTION OF THE NEW AMERICANS

The New Americans tells stories highlighting the positive contribution of immigrants to the United States. The series, comprised of 15 short-form videos, will be available in 2017 on APlus.com. It will also be featured as APlus Heroes within episodes of the company’s popular Chicken Soup for the Soul’s Hidden Heroes television series.

“Our proprietary online distribution channel, APlus.com, generates over 750 million content views per month,” stated William J. Rouhana, Jr, chairman and chief executive officer. “We are excited to use our extensive distribution to spread these compelling stories to such a wide audience.”

“The New Americans is a great example of our unique ability to maximize value for our sponsors by distributing our content across multiple platforms,” said Scott W. Seaton, vice chairman and chief strategy officer. “Such distribution enables us to attract sponsors for our series driving revenue and profit growth, as well as building the value of our content library.”