RLJ ENTERTAINMENT, INC.

CIK:0001546381|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues	$ 21,474	$ 18,833	$ 40,056	$ 32,720
Type of Revenue [Extensible List]	rlje:ProductAndServiceMember	rlje:ProductAndServiceMember	rlje:ProductAndServiceMember	rlje:ProductAndServiceMember
Cost of sales
Total cost of sales	$ 10,240	$ 9,090	$ 20,022	$ 18,210
Gross profit	11,234	9,743	20,034	14,510
Selling expenses	4,776	2,875	9,041	5,159
General and administrative expenses	5,093	4,716	10,404	9,239
Depreciation and amortization	705	904	1,590	1,777
Total operating expenses	10,574	8,495	21,035	16,175
INCOME (LOSS) FROM OPERATIONS	660	1,248	(1,001)	(1,665)
Equity earnings of affiliate	1,288	869	2,072	1,420
Interest expense, net	(2,362)	(2,152)	(4,653)	(4,038)
Change in fair value of stock warrants and other derivatives	(471)	(491)	(3,438)	(3,383)
(Loss) Gain on extinguishment of debt		(425)		470
Other (expense) income, net	(1,414)	161	(1,591)	445
LOSS FROM OPERATIONS BEFORE BENEFIT (PROVISION) FOR INCOME TAXES	(2,299)	(790)	(8,611)	(6,751)
Benefit (Provision) for income taxes	285	(76)	145	(237)
NET LOSS	(2,014)	(866)	(8,466)	(6,988)
Accretion on preferred stock	(193)	(379)	(386)	(756)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (2,207)	$ (1,245)	$ (8,852)	$ (7,744)
Net loss per common share attributable to common shareholders:
Basic and diluted net loss per common share attributable to common shareholders	$ (0.15)	$ (0.20)	$ (0.60)	$ (1.36)
Weighted average shares outstanding:
Basic and diluted	15,031	6,196	14,730	5,691
Content Amortization And Royalties
Cost of sales
Total cost of sales	$ 7,562	$ 6,261	$ 14,258	$ 12,329
Manufacturing And Fulfillment
Cost of sales
Total cost of sales	$ 2,678	$ 2,829	$ 5,764	$ 5,881

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (8,466,000)	$ (6,988,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity earnings of affiliate	(2,072,000)	(1,420,000)
Content amortization and royalties	14,258,000	12,329,000
Depreciation and amortization	1,590,000	1,777,000
Foreign currency exchange loss (gain)	388,000	(475,000)
Fair value adjustment of stock warrant and other derivative liabilities	3,438,000	3,383,000
Non-cash interest expense	4,653,000	3,221,000
Deferred tax liability	(145,000)	(239,000)
Gain on extinguishment of debt		(470,000)
Stock-based compensation expense	1,327,000	512,000
Dividends received from affiliate	3,133,000	1,243,000
Changes in assets and liabilities:
Accounts receivable, net	7,893,000	8,859,000
Inventories, net	(196,000)	416,000
Investments in content, net	(23,237,000)	(25,584,000)
Prepaid expenses and other assets	171,000	(494,000)
Accounts payable and accrued liabilities	(3,078,000)	(373,000)
Deferred revenue	(528,000)	31,000
Net cash used in operating activities	(871,000)	(4,272,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(969,000)	(816,000)
Net cash used in investing activities	(969,000)	(816,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants		28,000
Dividend payments to preferred stockholders	(708,000)	0
Repayment of debt		(8,618,000)
Payment of debt modification costs		(71,000)
Net cash (used in) provided by financing activities	(708,000)	9,339,000
Effect of exchange rate changes on cash	(214,000)	162,000
NET (DECREASE) INCREASE IN CASH:	(2,762,000)	4,413,000
Cash at beginning of period	6,215,000	7,834,000
Cash at end of period	$ 3,453,000	12,247,000
Senior Debt [Member]
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds received from AMC		$ 18,000,000