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Bright Mountain Media Reports Financial Results for the 2nd Quarter and 6 months ended June 30, 2022; Revenues up 135% and 90%, respectively over the same periods.

·7-min read
Bright Mountain Media, Inc.
Bright Mountain Media, Inc.

Boca Raton, FL, Aug. 16, 2022 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTC Pink: BMTM), an end-to-end digital media and advertising services platform, today announced unaudited financial results for the second quarter and six months ended June 30, 2022.

Financial highlights:

  • 2nd Quarter 2022 revenue of $5.7M compared to $2.4M for the comparable prior period.

  • 6 months ended June 30, 2022 revenue of $9.2M compared to $4.8M for the comparable prior period.

  • Gross margins improved 25% for the 2nd Quarter 2022 compared to the comparable prior period; or from 39.3% to 49.3%.

  • Gross margins improved 21% for the six months ended June 30, 2022 compared to the prior period; or from 41.2% to 50.0%.

  • On an Adjusted Ebitda basis for the 2nd Quarter 2022, the Company earned $0.3M and for the six months ended June 30, 2022, the Company is essentially break-even.

“I am enthusiastic about the progress we have made as a company. We embarked on an aggressive plan for 2022 to reduce our costs while organically increasing both our audience and our revenue and we’ve achieved both of those objectives in a short time period.” said Matt Drinkwater, Chief Executive Officer of Bright Mountain Media. “Our investment into Mom Index, our first party data product, is paying dividends, both informing our editorial decisions and attracting advertisers. There is strong interest on the part of brands and agencies to connect with our powerful audience of Moms and household decision makers, evidenced by strong organic revenue growth.

“Looking ahead, we continue to seek potential acquisition candidates that fit our highly selective requirements, are accretive, reasonably valued and complementary to our core business. With a robust pipeline of product launches, the onboarding of multiple strategic partners, and the organic growth we are already experiencing, we are well positioned to drive our business forward for the remainder of 2022 and beyond,” concluded Drinkwater.

About Bright Mountain Media

Bright Mountain Media, Inc. (OTC Pink: 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. The Company’s publishing division, led by Wild Sky Media, offers significant global reach through engaging content and multicultural audiences, telling unique stories of our most diverse generation. The Company’s robust portfolio of websites includes Mom.com, CafeMom, LittleThings, MamásLatinas and many more. For more information, please visit www.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 successfully integrate acquisitions., and the realization of any expected benefits from such acquisitions 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, 2021 as filed with the Securities and Exchange Commission on June 13, 2022 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.

Contact:
Bright Mountain Media, Inc
(561) 998-2440, ext 1012
Maria Montiglio
Maria@brightmountainmedia.com
www.brightmountainmedia.com

BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2022

 

 

June 30, 2021

 

 

June 30, 2022

 

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

$

5,716,779

 

 

$

2,433,415

 

 

$

9,175,943

 

 

$

4,833,135

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

 

 

2,899,290

 

 

 

1,476,108

 

 

 

4,589,905

 

 

 

2,842,951

 

Gross profit

 

 

2,817,489

 

 

 

957,307

 

 

 

4,586,038

 

 

 

1,990,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

3,443,199

 

 

 

4,749,835

 

 

 

7,330,558

 

 

 

9,024,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(625,710

)

 

 

(3,792,528

)

 

 

(2,744,520

)

 

 

(7,034,085

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on forgiveness of PPP loan

 

 

295,600

 

 

 

-

 

 

 

1,137,140

 

 

 

1,706,735

 

Other income (expense)

 

 

39,059

 

 

 

(82,357

)

 

 

38,902

 

 

 

39,473

 

Interest expense

 

 

(722

)

 

 

(75,211

)

 

 

(735

)

 

 

(336,206

)

Interest expense - related party

 

 

(895,745

)

 

 

(539,215

)

 

 

(1,735,162

)

 

 

(574,503

)

Total other income (expense)

 

 

(561,808

)

 

 

(696,783

)

 

 

(559,855

)

 

 

835,499

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss before tax

 

 

(1,187,518

)

 

 

(4,489,311

)

 

 

(3,304,375

)

 

 

(6,198,586

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(1,187,518

)

 

 

(4,489,311

)

 

 

(3,304,375

)

 

 

(6,198,586

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series A, Series E, and Series F preferred stock

 

 

(1,247

)

 

 

(89,958

)

 

 

(2,480

)

 

 

(178,936

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common shareholders

 

$

(1,188,765

)

 

$

(4,579,269

)

 

$

(3,306,855

)

 

$

(6,377,522

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

$

16,709

 

 

$

(82,324

)

 

$

16,790

 

 

$

(113,613

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$

(1,172,056

)

 

$

(4,661,593

)

 

$

(3,290,065

)

 

$

(6,491,135

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.01

)

 

$

(0.04

)

 

$

(0.02

)

 

$

(0.05

)

Weighted average shares outstanding - basic and diluted

 

 

149,159,461

 

 

 

120,353,074

 

 

 

149,130,579

 

 

 

119,652,844

 

Non-GAAP financial measure

We report adjusted EBITDA as a supplemental measure to U.S. generally accepted accounting principles (“GAAP”). This measure is one of the primary metrics by which we evaluate the performance of our business, on which our internal budgets are based. We believe that investors have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results. We endeavor to compensate for the limitations of the non-GAAP measure presented by providing the comparable GAAP measure with equal or greater prominence and description of the reconciling items, including quantifying such items to derive the non-GAAP measure. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measure.

Our adjusted EBITDA is defined as operating income/loss excluding:

 

non-cash stock option compensation expense;

 

depreciation;

 

non-restructuring severance expenses

 

Non-recurring professional fees;

 

acquisition-related items consisting of amortization expense and impairment expense;

 

interest; and

 

amortization on debt discount.

We believe this measure is useful for analysts and investors as this measure allows a more meaningful year-to-year comparison of our performance. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole. The above items are excluded from adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, adjusted EBITDA corresponds more closely to the cash operating income/loss generated from our business. Adjusted EBITDA has certain limitations in that it does not take into account the impact to our statement of operations and comprehensive loss of certain expenses.

The following is an unaudited reconciliation of net loss to adjusted net loss and Adjusted EBITDA for the periods presented:

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss before tax

 

$

(1,187,518

)

 

$

(4,489,311

)

 

$

(3,304,375

)

 

$

(6,198,586

)

plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock compensation expense

 

 

30,115

 

 

 

128,342

 

 

 

175,780

 

 

 

298,390

 

Depreciation expense

 

 

8,468

 

 

 

16,487

 

 

 

11,853

 

 

 

34,534

 

Amortization expense

 

 

389,741

 

 

 

396,267

 

 

 

786,007

 

 

 

792,533

 

Nonrecurring professional fees

 

 

164,465

 

 

 

115,409

 

 

 

307,749

 

 

 

160,409

 

Amortization on debt discount

 

 

333,177

 

 

 

141,992

 

 

 

613,155

 

 

 

145,444

 

Bad debt (recovery)

 

 

(49,076

)

 

 

(147,166

)

 

 

222,279

 

 

 

(141,070

)

Non-restructuring severance expense

 

 

29,313

 

 

 

-

 

 

 

29,313

 

 

 

-

 

Interest expense, net

 

 

722

 

 

 

75,211

 

 

 

735

 

 

 

336,206

 

Interest expense – related party

 

 

562,568

 

 

 

393,772

 

 

 

1,122,007

 

 

 

429,060

 

Adjusted EBITDA

 

$

281,975

 

 

$

(3,368,997

)

 

$

(35,497

)

 

$

(4,143,080

)

For the three and six months ended June 30, 2022 and 2021, to disclose an adjusted EBITDA that accurately represents actual operations, we have excluded the PPP loan forgiveness from the calculation.