DENVER, CO--(Marketwired - April 01, 2014) - Roomlinx, Inc. (OTCBB: RMLX), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the year ended December 31, 2013.
Consistent with Generally Accepted Accounting Principles, certain items for the year ended December 31, 2012 have been reclassified as discontinued operation due to the Company's determination to cancel non-performing hospitality contracts serviced by Cardinal Hospitality Ltd, a wholly-owned subsidiary of the Company (details can be found in the Company's current SEC 10k filing).
In 2013, total revenue decreased 27% to $9.4 million from $13.0 million. Hospitality revenue in 2013 decreased 29% to $8.6 million compared to $12.1 million. However, in 2013 hospitality recurring revenue increased 65% to $5.0 million from $3.1 million. Residential revenue was down slightly to $862,000 in 2013 compared to $ 915,000 in 2012.
Total revenue in the fourth quarter of 2013 decreased 70% to $2.2 million, down from $7.3 million in the fourth quarter of 2012. Install volume was the primary driver representing a $5.4 million decrease from the fourth quarter of 2012. However, hospitality recurring revenue increased 31% in the fourth quarter of 2013 to $1.3 million from $1.0 million in the same period in 2012. Residential revenue was down slightly to $203,000 in the fourth quarter of 2013 compared to $224,000 in the same period last year.
Total 2013 adjusted EBITDA improved $3.3 million to negative $1.4 million for the year ending 2013 versus negative $4.7 million for the year ending 2012. This improvement was due to the cost reduction and containment program implemented at the beginning of 2013. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization expense adjusted for the loss on asset impairment, the loss on discontinued operations, non-cash charges for stock based compensation, and non-cash gains or losses resulting from the forgiveness of debt.
Roomlinx financial highlights for the year ended December 31, 2013 include the following:
- Improved Adjusted EBITDA $3.3 million year-over-year.
- Hospitality recurring revenue increased to $5.0 from $3.1 million or 65% year-over-year.
- Implemented company-wide cost containment program yielding approximately a $1.5 million decrease in costs year-over-year.
Basic and diluted weighted average shares outstanding for the year ended December 31, 2013 and 2012 were 6,407,484 and 5,809,406, respectfully.
"Although our revenue decreased $3.6 million, we improved our adjusted EBITDA $3.3 million year-over-year. This is attributable to our focus on cost containment and operational efficiencies. I firmly believe the structural changes made in 2013, as well as our planned strategic initiatives, position us well for profitable growth going forward," said Michael Wasik, Roomlinx Chairman and CEO.
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 www.roomlinx.com.
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, 2013 available through the web site maintained by the Securities and Exchange Commission at www.sec.gov. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.