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Digital place-based media firm rVue wraps leaky 2015, looks forward to better 2016

Digital signage ad platform company rVue Holdngs Inc. last week announced its financial results for the fourth quarter and full year period ended Dec. 31, 2015. The company addressed a challenging Q4 and expressed optimism for 2016.

March 7, 2016

Digital signage ad platform company rVue Holdngs Inc. last week announced its financial results for the fourth quarter and full year period ended Dec. 31, 2015. The company addressed a challenging Q4 and expressed optimism for 2016.

"The fourth quarter was challenging, continuing the trend we felt during the third quarter of last year, as both the industry and rVue, in particular, were left vulnerable to a slowing economy," President and CEO Mark Pacchini said in the announcement. "However, we remain optimistic about the category, which is showing promise due to both agencies and clients taking a harder look at digital location video … Equally important, after several months of restructuring, expanding and training within our organization, and raising capital, we have begun to see our three key initiatives — 1. Network Partnerships/Intelligence, 2. Technology Platform and 3. New Business — starting to manufacture strong leads. Both the number and size of proposals has increased significantly recently."

Q4 highlights:

• Fourth quarter core revenue decreased 55 percent to $224,300 compared to $499,900 in the year ago quarter.
• Total revenue decreased 52 percent to $255,800 from $531,400 in the prior year fourth quarter. 
• SG&A expense increased 12 percent to $454,600 from $405,700 in the year ago quarter. The company said this increase was a result of legal and accounting fees, valuation costs and interest expense related to raising of capital and specifically the convertible notes.
• Total expenses were $653,300, down 20 percent compared to $816,500 in the year-ago quarter. This was due to a drop in network costs which parallels revenue. 
• Net loss for the fourth quarter was ($383,800) or less than 1 cent per share, compared to a net loss of ($35,600) or less than 1 cent per share in the fourth quarter of last year. The difference was driven by an insurance payment of $249,500 in Q4 of 2014 and the above-mentioned legal, accounting and valuation fees, as well as interest expense related to raising of capital and specifically the convertible notes in Q4 of 2015, the company said.

2015 full-year results:

• Core revenue was $973,600 for the 12 months ended Dec. 31, 2015, down 15 percent from $1.14 million last year.
• Total revenue was $1.1 million for the 12 months ended Dec. 31, 2015, down 14 percent from $1.3 million last year.
• SG&A expenses increased 12 percent to $1.6 million from $1.5 million a year ago. Again, the company said, this increase was a result of legal, accounting and valuation fees and interest expense related to raising of capital and specifically the convertible notes.
• Total expenses were $2.5 million, up 3 percent compared to $2.4 million a year ago. 
• Net loss for 2015 was ($1.4 million) or less the 1 cent per share, an increase of 52 percent compared to a loss of ($921,600) in 2014. That loss was driven by a decline in revenue and the above-mentioned legal, accounting and valuation fees and interest expense related to raising of capital and specifically the convertible notes. The difference was also driven by an insurance payment of $249,500 in 2014.

"The first quarter of 2016 is off to a solid start and we believe this will be a strong year for rVue ... pushing us even closer to break-even fundamental levels," Pacchini said. "We're also proud to have been chosen to be the primary or secondary sales group for a couple of networks and increasingly, our network partnerships are growing in numbers, reinforcing our confidence in long-term, sustainable growth."

"We made a lot of progress with our technology platform during the quarter, continuing our commitment to continual upgrades on a regular basis," CTO David Esser said. "Our team continues to upgrade rVue's proprietary platform every four to eight weeks, recently adding new functional capabilities, network data integration options and usability improvements."