BMTM - Bright Mountain Media Reports First Quarter 2020 Financial Results

June, 30 2020 05:51 PM Bright Mountain Media Inc

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

Company to Host Virtual Investor Webinar Tomorrow, Wednesday, July 1^st 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 1^st, 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 1^st, 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 1^st, 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

Company Name:	Bright Mountain Media Inc
Stock Symbol:	BMTM
Market:	OTC
Website:	brightmountainmedia.com

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