November 14, 2013 11:06 ET

Roomlinx Reports 2013 Third Quarter Results Showing Positive Adjusted EBITDA

DENVER, CO--(Marketwired - November 14, 2013) - Roomlinx, Inc. (OTCQB: RMLX), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the three months ended September 30, 2013, demonstrating positive adjusted EBITDA, a measurement, not recognized under generally accepted accounting principles, which the Company assesses to evaluate operations. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization expense adjusted for non-cash charges for stock based compensation, asset impairment, and non-cash gains or losses resulting from the forgiveness of debt.

In the third quarter of 2013, total revenue increased 25% to $2.99 million compared to the third quarter of 2012. Hospitality revenue in the third quarter of 2013 increased 27% to $2.76 million, compared to $2.17 million in same period in 2012. This increase is primarily related to the increase in the Company's monthly recurring revenue associated with its revenue generating units ("RGUs"). 

An RGU is defined as a product or service for which the Company invoices the hotel monthly, including interactive television, video on demand, free to guest programming, and high speed internet access. As of September 30, 2013, the Company was servicing approximately 86,000 RGUs within the hospitality sector, a 65% increase over the number of RGUs being serviced as of September 30, 2012.

The hospitality segment consists of service revenue which is monthly recurring revenue attributable to RGUs and product, plus installation revenue which is one-time revenue. Hospitality service revenue increased to $1.36 million in the third quarter of 2013 compared to $0.91 million in the same period in 2012, a 49% increase, while hospitality product and installation revenue increased $0.10 million to $1.40 million. Residential revenue increased 1% to $0.22 million in the third quarter of 2013.

Basic and diluted weighted average shares outstanding for the three months ended September 30, 2013 were 6,407,630 compared to 6,404,631 in the year-earlier period. 

For the three months ended September 30, 2013, Roomlinx reported a net loss of $0.35 million, compared to a net loss of $2.55 million for the three months ended September 30, 2012, a reduction of net loss of $2.20 million. The decrease in net loss is attributable to an increase in quarterly hospitality recurring revenues of $0.45 million. In addition the Company's cost reduction and containment program resulted in a decrease in operating costs of $0.79 million. The Company also had a an asset impairment charge of $1.11 million in 2012, which it did not sustain in 2013. 

At the beginning of 2013, the Company embarked on a cost reduction and containment program, and as of September 30, 2013, measured progress realized quarter to quarter through adjusted EBITDA, as define above, for the nine months ended September 30, 2013. Quarterly adjusted EBITDA results are as follows: negative $1.09 million for Q1, negative $0.40 million for Q2 and positive $2,247 for Q3. In addition, adjusted EBITDA increased $1.90 million for the three months ended September 30, 2013 versus 2012, and $2.50 million for the nine months ended September 30, 2013 versus 2012.
Recent key accomplishments at Roomlinx include:

  1. Positive adjusted EBITDA.
  2. Reduced net loss by $2.90 million year over year.
  3. Increased hospitality recurring revenue by 67% year over year.
  4. Third quarter 2013 RGUs in service increased 65% compared to the third quarter of 2012.

Roomlinx CEO, Michael Wasik, summed up the third quarter results by stating, "I am very pleased with the results of the third quarter. Achieving positive adjusted EBITDA for the quarter is a testament to the team's hard work and focus on controlled spending and profitable growth. Though we have driven favorable impacts to the income statement, we will continue to focus on the income statement by driving operational efficiencies and smart growth."

About Roomlinx
Headquartered in Broomfield, Colorado, Roomlinx, Inc. develops interactive TV applications for the hospitality industry, serving hoteliers in the United States, Canada and selected global markets. The company delivers world-class in-room entertainment technology, allowing hotel guests to enjoy the best of HD TV, the Internet, PC functionality and Video on Demand. For more information, visit

Safe Harbor Cautionary Statement
This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the Company's successful implementation of new products and services (either generally or with specific key customers), the Company's ability to satisfy the contractual terms of key customer contracts, demand for the new products and services, the Company's ability to successfully compete against competitors offering similar products and services, general economic and business conditions; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies research and development activities; changes in, or failure to comply with, governmental regulations; the ability to obtain adequate financing in the future; the Company's ability to establish and maintain strategic relationships, including the risk that key customer contracts may be terminated before their full term; the possibility of product-related liabilities; the Company's ability to attract and retain qualified personnel; the Company's ability to maintain its intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers; the Company's ability to obtain, use or successfully integrate third-party licensed technology; breach of the Company's security by third parties; matters relating to the Company's Master Services Agreement with Hyatt; matters relating to the claims by Technology Integration Group; and the disclosure and risk factors detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2012 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 available through the web site maintained by the Securities and Exchange Commission at The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

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