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Bright Mountain Media Reports First Quarter 2020 Financial Results

2020-06-30 17:51 ET - News Release

Company Expects Fiscal 2020 Revenues to Increase at Least 214% to at Least $22M

Company to Host Virtual Investor Webinar Tomorrow, Wednesday, July 1st at 11:30 a.m. Eastern Time

Boca Raton, FL, June 30, 2020 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM), an end-to-end digital media and advertising services platform, has provided its financial results for the first quarter ended March 31, 2020.

Management Commentary

“The first quarter of 2020 built upon our successes in 2019, where we successfully initiated our efforts to launch a fully integrated, end-to-end digital media and advertising services platform,” said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. “In the quarter, we saw advertisers hesitate in deploying ad dollars due to COVID related uncertainty. Despite these headwinds, Bright Mountain was able to grow revenues by 109% to $2.3 million in the first quarter of 2020, and in time, we expect these challenges to subside as we enter a more normalized environment in the back half of 2020.

“As we continue to capture more of the ad-dollar within the value chain, we create more value than the sum of our parts, allowing incredibly efficient demographic targeting with unique ad syndication capabilities. Most notably in June, we successfully acquired Wild Sky Media, an interactive media company that according to Google analytics reaches approximately 30 million monthly unique visitors through its hyper-engaging content, further strengthening our platform model. We seek to enable their robust, complimentary portfolio of websites to more efficiently create value from their niche, diverse audiences leveraging our proprietary content and ad delivery technologies.

“On the capital markets front, I am pleased to have started the process to uplist to a national exchange, which we believe will broaden our potential investor base and grow our brand reach, resulting in greater liquidity for our shareholders. We will continue to work closely with the national exchanges to execute upon this incredible milestone for our combined company.

“As we move into 2020, I am confident in our ability to execute upon the business opportunity facing us today. In fact, we expect revenues in fiscal 2020 of $22 million, an increase of 214% over fiscal 2019 revenues. I look forward to continued progress in the years ahead, creating sustainable long-term value for our shareholders,” concluded Speyer.

First Quarter 2020 Financial Summary

  • Total revenue for the first quarter of 2020, was $2.3 million, compared to revenue of $1.1 million in the same year-ago quarter. The increase in revenue was due to an increase in advertising revenue resulting from the acquisitions of Oceanside Media and MediaHouse, in spite of the negative influence of Covid-19 on the digital advertising market.
  • Selling, general and administrative expenses for the first quarter of 2020 were $4.0 million, compared to $0.9 million in the same year-ago quarter. The increase in selling, general and administrative expenses included $1.0 million of non-cash amortization of intangible assets, $0.4 million in non-cash expenses associated with an equity raise and $0.3 million of acquisition related audit and consulting fees.
  • Net loss for the first quarter of 2020 was $3.5 million, compared to a net loss of $0.7 million in the same year-ago quarter. The increase in net loss was primarily related to aforementioned non-cash operating expenses.
  • Cash and cash equivalents and short-term deposits were $1.3 million as of March 31, 2020, compared with $1.0 million as of March 31, 2019.
  • Cash used in operations for the first quarter of 2020 was $1.4 million, compared with cash used in operations of $0.6 million in the same year-ago quarter.    

Financial Guidance

Management expects revenues in fiscal 2020 to be at least $22.0 million, representing an increase of at least 214% when compared to revenues of $7.0 million in fiscal 2019.

Virtual Roadshow Webinar

The Company will host a virtual roadshow webinar tomorrow, July 1st, 2020 at 11:30 a.m. Eastern time, where Greg Peters, President and Chief Operating Officer of Bright Mountain Media, will present an overview of the business model and discuss recent growth initiatives, including the recent acquisition of Wild Sky Media. The webinar will be accompanied by a presentation and followed by a question and answer session, which can be accessed via the webcast link or dial-in numbers below.

To access the webinar, please use the following information:

Date: Wednesday, July 1st, 2020        
Time: 8:30 a.m. Pacific time (11:30 a.m. Eastern time)       
Dial-in: 1-888-204-4368         
International Dial-in: 1-323-994-2093           
Conference Code: 4978335   
Webcast: http://public.viavid.com/index.php?id=140018    

A telephone replay will be available approximately two hours after the call and will run through October 1st, 2020 by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 4978335. The replay can also be viewed through the webinar webcast link above.

About Bright Mountain Media

Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. Through the removal of middlemen in the advertising services process, Bright Mountain Media efficiently connects brands with targeted consumer demographics while maximizing revenue to publishers. Bright Mountain Media’s assets include the Bright Mountain Media ad network, MediaHouse (f/k/a NDN), Oceanside (f/k/a S&W Media), CL Media Holdings (d/b/a/ Wild Sky Media) and 24 owned and/or managed websites. For more information, please visit brightmountainmedia.com.

Forward-Looking Statements for Bright Mountain Media, Inc.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes, ” and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to close the proposed acquisition of Inform, Inc., any the realization of any expected benefits from such transaction if closed. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Bright Mountain Media, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on May 14, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.

Investor Contact:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
949-259-4987
BMTM@mzgroup.us
www.mzgroup.us

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

  March 31, 2020  December 31, 2019 
  (unaudited)    
ASSETS        
Current Assets        
Cash and cash equivalents $1,270,023  $957,013 
Accounts receivable, net  3,207,560   3,997,475 
Note receivable, net  38,329   63,812 
Prepaid expenses and other current assets  485,074   752,975 
Current assets - discontinued operations  -   1,705 
         
Total Current Assets  5,000,986   5,772,980 
         
Property and equipment, net  25,413   30,666 
Website acquisition assets, net  35,316   48,928 
Intangible assets, net  18,671,791   19,610,801 
Goodwill  53,646,856   53,646,856 
Prepaid services/consulting agreements - long term  775,000   913,182 
Right of use asset  348,721   397,912 
Other assets  94,672   35,823 
Total Assets $78,598,755  $80,457,148 
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current Liabilities        
Accounts payable $8,152,462  $8,358,442 
Accrued expenses  893,540   3,228,328 
Accrued interest to related party  8,652   6,629 
Premium finance loan payable  125,453   179,844 
Deferred revenues  18,609   6,651 
Long term debt, current portion  165,163   165,163 
Operating lease liability, current portion  215,004   211,744 
Current liabilities - discontinued operations  -   591 
Total Current Liabilities  9,578,883   12,157,392 
         
Long term debt to related parties, net  29,179   25,689 
Deferred tax liability  516,941   581,440 
Operating lease liability, net of current portion  130,979   198,232 
Total Liabilities  10,255,982   12,962,753 
Commitments and Contingencies        
Shareholders’ Equity        
Convertible preferred stock, par value $0.01, 20,000,000 shares authorized,        
Series A-1, 2,000,000 shares designated, 1,200,000 and 1,200,000 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively  12,000   12,000 
Series B-1, 6,000,000 shares designated, 0 and 0 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively  -   - 
Series E, 2,500,000 shares designated, issued and outstanding at March 31, 2020 and December 31, 2019, respectively  25,000   25,000 
Series F, 4,344,017 shares designated, issued and outstanding at March 31, 2020 and December 31, 2019, respectively  43,440   43,440 
Common stock, par value $0.01, 324,000,000 shares authorized, 106,732,860 and 100,244,312 issued and 84,491,031 and 78,063,531 outstanding at March 31, 2020 and December 31, 2019, respectively  1,067,329   1,002,444 
Additional paid-in capital  91,099,013   86,856,500 
Accumulated deficit  (23,904,009)  (20,444,989)
Total shareholders’ equity  68,342,773   67,494,395 
Total Liabilities and Shareholders’ Equity $78,598,755  $80,457,148 

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  For the Three Months Ended March 31, 
  2020  2019 
       
Revenues        
Advertising $2,270,186  $1,085,456 
         
Cost of revenue        
Advertising  1,823,082   885,696 
Gross profit  447,104   199,760 
         
Selling, general and administrative expenses  3,979,378   915,954 
         
Loss from continuing operations  (3,532,274)  (716,194)
         
Other income (expense)        
Interest income  10,993   6,006 
Gain on settlement of liability  -   122,500 
Other expense  (215)  - 
Interest expense  -   (909)
Interest expense - related party  (2,023)  (6,201)
Total other income  8,755   121,396 
         
Net loss from continuing operations before tax  (3,523,519)  (594,798)
         
Loss from discontinued operations  -   (115,464)
         
Net loss before tax  (3,523,519)  (710,262)
         
Income tax benefit  64,499   - 
         
Net loss  (3,459,020)  (710,262)
         
Preferred stock dividends        
Series A-1, Series E, and Series F preferred stock  (118,252)  (74,171)
         
Net loss attributable to common shareholders $(3,577,272) $(784,433)
         
Basic and diluted net loss from continuing operations per share $(0.03) $(0.01)
Basic and diluted net loss from discontinued operations per share $0.00  $(0.00)
Basic and diluted net loss per share $(0.03) $(0.01)
Weighted average shares outstanding - basic and diluted  106,098,560   62,900,662 

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
March 31, 2020
(Unaudited)

  For the Three Months Ended March 31, 
  2020  2019 
Cash flows from operating activities:        
Net loss $(3,459,020) $(710,262)
Add back: loss attributable to discontinued operations  -   115,464 
Adjustments to reconcile net loss to net cash used in operations:        
Depreciation  5,253   2,352 
Amortization of debt discount  3,490   3,452 
Amortization  952,622   35,813 
Gain on settlement of liability  -   (122,500)
Stock option compensation expense  36,595   3,213 
Stock issued for services rendered  91,718   - 
Non-cash acquisition fee  275,000   - 
Change in deferred taxes  (64,499)  - 
Provision for bad debt  -   4,034 
Changes in operating assets and liabilities:        
Accounts receivable  789,915   (375,928)
Prepaid expenses and other current assets  314,015   29,361 
Prepaid services/consulting agreements  93,182   127,500 
Other assets  (58,849)  (4,703)
Right of use asset and lease liability  (14,802)  - 
Accounts payable  (205,980)  360,393 
Accrued expenses  (141,893)  (26,538)
Accrued interest – related party  2,023   - 
Deferred revenues  11,958   2,485 
Net cash (used in) continuing operations for operating activities  (1,369,272)  (555,864)
Net cash (used in) discontinued operations  -   (73,589)
Net cash (used in) operating activities  (1,369,272)  (629,453)
         
Cash flows from investing activities:        
Cash paid for website acquisition  -   (8,000)
Net cash (used in) investing activities  -   (8,000)
         
Cash flows from financing activities:        
Proceeds from issuance of common stock, net  1,734,937   873,950 
Payments of premium finance loan payable  (54,391)  (32,331)
Dividend payments  (23,747)  (74,171)
Principal payments received (funded) for notes receivable  25,483   (64,681)
Note receivable funded  -   (375,303)
Net cash provided by financing activities  1,682,282   327,464 
         
Net increase (decrease) in cash and cash equivalents including cash and cash equivalents classified within assets related to continuing operations  313,010   (309,989)
Net decrease in cash and cash equivalents classified within assets related to discontinued operations  -   (4,943)
Net increase (decrease) in cash and cash equivalents  313,010   (314,932)
Cash and cash equivalents at the beginning of period  957,013   1,042,457 
Cash and cash equivalents at end of period $1,270,023  $727,525 

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