Source: New Frontier Media, Inc.
(BOULDER, CO) — New Frontier Media, Inc. (Nasdaq: NOOF – news), a leader in the electronic distribution of adult entertainment, announced its fourth quarter and fiscal year results for the year ending March 31, 2001. The Company reported total gross revenue, before chargebacks and credits of $2.7 million, of $61 million, or a 25% increase over fiscal 2000 gross revenue of $49 million.
Fiscal 2001 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the Company and its subsidiaries, before one-time, non-recurring litigation expenses of $1.3 million, was reported as $8.0 million, or a 135% increase over fiscal 2000 EBITDA of $3.4 million.
On a subsidiary basis, the Company’s Subscription/PPV TV Group reported revenue of $25 million for the fiscal year ended March 31, 2001, or a 47% increase over fiscal 2000 revenue of $17 million, and EBITDA of $4.3 million versus an EBITDA loss of $.7 million in fiscal 2000. On a subsidiary basis, the Company’s Internet Group, including its associated Payment Service Provider Group, reported that gross revenue, before chargebacks and credits of $2.7 million, was $36 million for the fiscal year ended March 31, 2001, or a 13% increase over fiscal 2000 gross revenue of $32 million, and that EBITDA was $6.4 million, or an 8% increase over fiscal 2000 EBITDA of $5.9 million.
The Company also reported net income for the fiscal year ended March 31, 2001 of $3.3 million, which included a $4.1 million tax benefit from historical losses, a $2 million litigation reserve, and an investment write-down of $0.5 million, compared to net income of $1.1 million, which included a $0.8 million tax benefit, for the previous year. Earnings per share were reported as $.16 per basic share and $.14 per fully diluted share for the year, compared to $.06 per basic share and $.05 per fully diluted share a year ago.
Fourth Quarter Results
The Company reported net revenue of $15.9 million for the fourth quarter ended March 31, 2001 compared to net revenue of $12.9 million for the fourth quarter a year ago, representing an increase of 23%. EBITDA for the fourth quarter ended March 31, 2001 was $2.6 million compared to EBITDA of $2.0 million for the fourth quarter a year ago, representing an increase of 30%. Net income for the quarter ended March 31, 2001 was $5.4 million compared to net income of $1.6 million for the quarter ended March 31, 2000. Net income for the quarter ended March 31, 2001 includes a reduction in the Company’s legal reserve related to the J.P. Lipson lawsuit in the amount of $8 million and tax expense in the amount of $3.5 million. Net income for the quarter ended March 31, 2000 includes a tax benefit of $0.8 million. Earnings per share for the quarter were reported as $0.26 per basic share and $0.24 per fully diluted share compared to $0.08 per basic share and $0.07 per fully diluted share a year ago.
Consolidated Operating Results [statistics redacted]
The Condensed Statement of Operations should be read in conjunction with the Company’s Form 10-K that will be filed with the Securities and Exchange Commission. To obtain a copy, please contact the Investor Relations department at New Frontier Media, Inc.
(1) The acquisition of the Company’s Internet subsidiaries in October 1999 was accounted for using the pooling of interests method. Accordingly, the financial results reflected in the Company’s Form 10-K report includes a full year of financial results for these entities for fiscal 2000.
New Frontier Media will be conducting its conference call and webcast to discuss earnings today at 2:15 p.m. Mountain Time. The participant phone number for the conference call is (800) 218-4007. To participate in the webcast please log on to www.noof.com and click on Investor Relations and then Presentations. A replay of the conference call will be available for seven days after 5:15 p.m. Mountain Time on June 18th at (800) 405-2236, access code 354076. The replay will also be archived on the Corporate web site at www.noof.com.
ABOUT NEW FRONTIER MEDIA, INC.
New Frontier Media, Inc. is the fastest growing distributor of Adult Entertainment today. The Company delivers the most extensive lineup of quality programming over the broadest range of electronic means including cable, satellite, Internet, Broadband and video-on-demand.
The Erotic Networks, the umbrella brand for the Company’s subscription and pay television subsidiary, provides pay-per-view and subscription TV networks to over 25 million cable, DBS (direct broadcast satellite) and C-band households throughout North America. The Erotic Networks include Pleasure(TM), TeN(TM), ETC (Erotic Television Clips)(TM), Extasy(TM), True Blue(TM) and X-Cubed(TM). These networks represent the widest variety of editing standards available and are programmed without duplication to offer the most extensive selection of adult network programming under a single corporate umbrella.
IGallery, the Company’s Internet subsidiary, is a leader in the adult Internet market serving both the consumer and webmaster markets. IGallery designs and manages its own membership-based web sites for the consumer market. IGallery also offers a wide range of products and services to the webmaster market. Presently, IGallery owns over 1,500 Internet domain names and operates 50 thematically organized consumer sites. Collectively, these sites generate over 60 million visitors each month. IGallery’s own Internet network infrastructure enables the delivery of live and on-demand video events to millions of Internet users.
For more information contact Karyn Miller, Chief Financial Officer, at (303) 444-0900, extension 102, and please visit our web site at www.noof.com.
