Business
RLJ Entertainment reports financial results for Q3 ending September 30, 2013
Net loss for the three months ended September 30, 2013 totaled US$8.5 million, compared to net loss of US$482,000 for the three months ended September 30, 2012. For the nine months ended September 30, 2013, net loss totaled US$29.0 million, compared to net loss of US$194,000 for the nine months ended September 30, 2012.
Proforma Financial Results
The Company is presenting financial information for the three and nine month’s ended September 30, 2013 and pro forma financial information for three and nine months ended September 30, 2012 due to the closing of the business combination among RLJ Entertainment, Image Entertainment and Acorn Media on October 3, 2012. Unaudited pro forma financial information reflects the 2012 operating results of RLJ Entertainment as if Image Entertainment and Acorn Media were acquired as of the beginning of 2012.
These combined results are not necessarily indicative of the results that may have been achieved had the combined companies been combined as of such date or period, or of RLJ Entertainment’s future operating results.
For the three months ended September 30, 2013, RLJ Entertainment net revenue declined US$6.4 million to US$32.7 million compared to pro forma net revenue of US$39.1 million for the three months ended September 30, 2012.
The decrease in revenue was primarily driven by a decrease in the company’s wholesale distribution segment as follows:
(i) the timing release of one high-profile title (“The Tall Man”) released in 2012 with no equivalent release in 2013 (the Company has three high-profile titles releasing in the fourth quarter of 2013 consisting of “The Colony,” “Paradise” and “Doc Martin 6”),
(ii) a significant reduction in rebates and sales return reserves in 2012 that did not repeat in the same quarter of the current year, and
