DENVER, CO--(Marketwired - May 14, 2014) - Roomlinx, Inc. (OTCQB: RMLX) (OTCQB: RMLXP), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the three months ended March 31, 2014.
In the first quarter of 2014, recurring monthly hospitality revenue increased 5.5% over the same period in 2013 while total revenue decreased 19% to $1.6 million compared to 2013. This decrease was primarily related to the decrease in new equipment and installation revenue which approximated $420,000 for the quarter ended March 31, 2014 vs. 2013.
As of March 31, 2014, the Company was servicing approximately 64,000 RGUs within the hospitality sector, a 10% increase over the number of RGUs being serviced as of March 31, 2013. 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.
For the three months ended March 31, 2014, Roomlinx reported a net loss of $0.5 million, compared to a net loss of $1.3 million for the three months ended March 31, 2013, a reduction of net loss of $0.8 million. The decrease in net loss is attributable to an increase in revenues less direct costs approximating $0.2 million and the effect of our cost reduction and containment program resulting in a decrease in operating costs of $0.6 million.
Adjusted EBITDA improved $0.8 million to negative $250,000 for the quarter ended March 31, 2014 versus negative $1.05 million for the same period in 2013. This improvement was due to the cost reduction and containment program implemented in 2013. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization expense adjusted for the loss on discontinued operations, non-cash charges for stock based compensation, and non-cash gains or losses resulting from the settlement of liabilities.
Roomlinx financial highlights for the quarter ended March 31, 2014 include the following:
- Improved Adjusted EBITDA $0.8 million year-over-year.
- Operating costs decreased $0.6 million year-over-year.
- Recurring monthly hospitality revenue increased 5.5% year-over-year.
Basic and diluted weighted average shares outstanding for the three months ended March 31, 2014 were 6,411,413 compared to 6,405,413 in the year-earlier period.
"We have worked diligently to grow our recurring revenue and decrease operating costs. We will continue to focus on smart growth, preserving cash, and improving our bottom line," stated Michael Wasik, 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 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, 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.