Redbox Entertainment Inc.

CIK:0001820201|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenue	$ 65,994	$ 69,390	$ 129,221	$ 146,120
Revenue from Contract with Customer, Product and Service [Extensible Enumeration]	us-gaap:EntertainmentMember	us-gaap:EntertainmentMember	us-gaap:EntertainmentMember	us-gaap:EntertainmentMember
Operating expenses:
Product cost	$ 28,755	$ 28,674	$ 56,045	$ 56,922
Direct operating	31,400	31,489	61,405	64,513
Marketing	3,102	3,557	7,124	6,841
Stock-based compensation expense	2,018	150	3,826	716
General and administrative	25,712	16,483	48,915	29,792
Depreciation and amortization	24,842	26,938	49,932	54,464
Total operating expenses	115,829	107,291	227,247	213,248
Operating loss	(49,835)	(37,901)	(98,026)	(67,128)
Interest and other income (expense), net:
Interest and other income (expense), net	(15,077)	(8,518)	(7,734)	(15,765)
Total interest and other income (expense), net	(15,077)	(8,518)	(7,734)	(15,765)
Loss before income taxes	(64,912)	(46,419)	(105,760)	(82,893)
Income tax expense (benefit)	88	(11,634)	114	(20,913)
Net loss	(65,000)	$ (34,785)	(105,874)	$ (61,980)
Net loss attributable to non-controlling interest	(42,508)		(81,938)
Net loss attributable to Class A common stockholders	$ (22,492)		$ (23,936)
Loss per share of Class A common stock:
Basic loss per share (Note 9)	$ (1.77)		$ (1.89)
Diluted loss per share (Note 9)	$ (1.75)		$ (1.87)
Weighted average shares of Class A common stock outstanding:
Basic	12,726,531		12,672,822
Diluted	12,726,531		12,672,822

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating activities:
Net loss	$ (105,874)	$ (61,980)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation	14,227	19,006
Amortization of intangible assets	35,715	35,716
Gain on sale/disposal of assets	(10)	(258)
Stock-based compensation expense	3,826	716
Deferred income taxes		(15,067)
Inter-Company Tax Payable Settlement		15,777
Amortization of deferred financing costs	421	66
PIK interest added to Senior Facilities	15,519	17,600
Change in fair value of warrant liability	(7,774)
Non-cash rent, interest and other	(18)	123
Cash flows from changes in net operating assets and liabilities:
Accounts receivable	(5,526)	(2,065)
Content library	(931)	1,462
Income tax receivable		(6,640)
Prepaid expenses and other current assets	(671)	453
Other assets	100	441
Trade payables	4,605	(3,527)
Change in due to/from related parties	(434)	2,600
Accrued and other liabilities	(2,564)	(20,504)
Net cash flows used in operating activities	(49,389)	(16,081)
Investing Activities:
Purchases of property and equipment	(5,830)	(6,760)
Proceeds from disposition of property and equipment	50	268
Net cash flows used in investing activities	(5,780)	(6,492)
Financing Activities:
Proceeds from Redbox's borrowings	46,352	27,493
Repayments of Redbox's debt obligations	(6,287)	(1,830)
Proceeds from exercise of warrants	11,520
Dividends paid		(90)
Principal payments on finance lease obligations	(1,363)	(1,575)
Net cash flows provided by financing activities	50,222	23,998
Change in cash, cash equivalents and restricted cash	(4,947)	1,425
Cash, cash equivalents and restricted cash:
Beginning of period	18,478	8,927
End of period	$ 13,531	$ 10,352

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current Assets:
Cash, cash equivalents and restricted cash	$ 13,531	$ 18,478
Accounts receivable, net of allowances of $225 at June 30, 2022 and $259 at December 31, 2021	16,393	10,856
Due from related parties, net (Note 15)	4,247	3,813
Content library	26,122	25,201
Prepaid expenses and other current assets	7,337	6,667
Total current assets	67,630	65,015
Property and equipment, net (Note 2)	32,517	40,624
Goodwill (Note 4)	147,523	147,523
Intangible assets, net (Note 4)	88,492	124,207
Operating lease right-of-use assets (Note 3)	7,502
Other long-term assets	563	663
Total assets	344,227	378,032
Current Liabilities:
Trade payables	36,578	32,266
Due to related parties, net (Note 15)	74	74
Operating lease liabilities, current portion (Note 3)	2,782
Accrued and other current liabilities (Note 5)	55,651	57,755
Current portion of long-term debt (Note 6)	49,730	34,211
Total current liabilities	144,815	124,306
Long-term debt, net (Note 6)	325,478	287,355
Warrant liability (Note 11)	8,447	17,821
Operating lease liabilities, non-current portion (Note 3)	4,936
Other long-term liabilities	10,067	11,501
Total liabilities	493,743	440,983
Commitments and contingencies (Note 13)
Shareholders' Equity
Additional paid-in-capital	319,002	302,455
Non-controlling interest	(111,632)	(32,456)
Accumulated deficit	(356,890)	(332,954)
Total equity	(149,516)	(62,951)
Total liabilities and shareholders' equity	344,227	378,032
Class A Common Stock
Shareholders' Equity
Common stock	1	1
Class B Common Stock
Shareholders' Equity
Common stock	$ 3	$ 3