Chicken Soup For The Soul Entertainment, Inc. (CSSE) 10-Q Quarterly Report Wed Aug 11 2021

– Chicken Soup for the Soul Entertainment, Inc. (Nasdaq: CSSE), one of the largest operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced its financial results for the first quarter ended March 31, 2021.

“Our first quarter results are a good start on our growth plans for the year, and we’ve made outstanding progress on our strategy so far in 2021,” said William J. Rouhana Jr., chairman and chief executive officer of Chicken Soup for the Soul Entertainment. “Our performance is starting to show the power of our now fully integrated business model focused on delivering original and exclusive content to our growing AVOD networks, reflected in strong growth in net revenue and EBITDA.

“In just over five months’ time, we will have significantly expanded our content library while greatly expanding our capabilities to create and deliver new content,” Rouhana continued. “We’ve also announced a new company-branded AVOD network and our new television production unit, Halcyon, and continued to aggressively implement our viewership growth strategy, which will include the launch of an enhanced user experience and platform over the summer. At the same time, we continue to grow our fully-owned library through our strong pipeline of original and exclusive content. With these developments in place, 2021 is shaping up to be a game-changing year for Chicken Soup for the Soul Entertainment.”

First Quarter 2021 Financial Summary

Net revenue of $23.2 million, compared to $20.2 million in the seasonally high fourth quarter of 2020, and $13.2 million in the year-ago period. The 75% year-over-year growth was driven by strong performances of original content releases and international and advertising sales.

Net loss of $9.2 million compared to a net loss of $10.1 million in the fourth quarter of 2020, and a net loss of $11.4 million in the year-ago period; $6.9 million net loss before preferred dividends, compared to $8.9 million net loss in the fourth quarter 2020, and $10.5 million net loss in the year-ago period.

Adjusted EBITDA of $4.6 million, compared to $2.8 million in the fourth quarter 2020, and $2.0 million in the year-ago period. The 124% year-over-year growth was enhanced by efficiencies and cost savings associated with the fully integrated business model.

Recent Business Highlights

First company produced film, Willy’s Wonderland, was ranked as the #1 horror movie on Amazon for a period in the first quarter.

Crackle Plus viewership in March 2021 reached its highest level since the shelter-in-place peak of April 2020.

Announced the largest content deal in company history with the pending acquisition of the Sonar Entertainment assets, which, when consummated, will add IP rights to 372 television series with 1,825 episodes and over 700 films, to an already-robust library.

The following information was filed by Chicken Soup For The Soul Entertainment, Inc. (CSSE) on Thursday, May 13, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Chicken Soup For The Soul Entertainment, Inc.'s 10-Q Quarterly Report:

Financial - Expense Highlight
Amortization and depreciation expense decreased by $3.9 million for the three months ended June 30, 2021 compared to 2020.

Financial - Expense Highlight
36 Amortization and depreciation expense decreased by $7.9 million for the six months ended June 30, 2021 compared to 2020.
Financial - Dividend Highlight
This increase was primarily due to the $21.4 million in net proceeds related to the January 2021 common stock private placement, $3.4 million in net proceeds from the at-the-market common stock offerings during the period, $2.4 million in proceeds from the exercise of stock options and warrants offset by a $4.2 million payment of dividends to preferred stockholders, the $2.5 million repayment of the outstanding principal under the revolving credit facility with Cole Investments VII, LLC, a $2.5 million payment on our film acquisition advance and a $0.7 million payment on our revolving loan.
Financial - Income Highlight
28 We define Adjusted EBITDA as consolidated operating income (loss) adjusted to exclude interest, taxes, depreciation, amortization (including tangible and intangible assets), acquisition-related costs, consulting fees related to acquisitions, dividend payments, non-cash share-based compensation expense, and adjustments for other unusual and infrequent in nature identified charges, including transition related expenses.
Revenue - Product Highlight
This increase is primarily driven by a $1.6 million increase in Ad Rep revenue driven by growing relationships with several Ad Rep partners, a $1.9 million increase in TVOD and internet streaming revenue primarily driven by the strong performances from Willy's Wonderland and Skyfire, a $0.9 million increase in product integration revenue driven by the premiere of Going From Broke Season 2 on Crackle and a $0.8 million increase in Crackle direct revenue driven by strong viewership during the period.
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This increase in licensing and...Read more
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Licensing and other revenue increased...Read more
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Due to the significance of...Read more
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M & A - Other
We operate Crackle Plus, a...Read more
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Public company expenses increased $0.4...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Chicken Soup For The Soul Entertainment, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: CSSE
CIK: 1679063
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-21-011277
Submitted to the SEC: Wed Aug 11 2021 4:01:57 PM EST
Accepted by the SEC: Wed Aug 11 2021
Period: Wednesday, June 30, 2021
Industry: Allied To Motion Picture Production