SOURCE: RoomLinX

May 19, 2015 16:20 ET

Roomlinx Reports 2014 Year End Results

DENVER, CO--(Marketwired - May 19, 2015) - 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 year ended December 31, 2014.

In 2014, total revenue decreased 22% to $7.4 million from $9.4 million. Hospitality revenue in 2014 decreased 24% to $6.5 million compared to $8.6 million. However, in 2014 hospitality recurring revenue increased 4% to $5.2 million from $5.0 million. Residential revenue was down slightly to $829,000 in 2014 compared to $862,000 in 2013.

Total revenue in the fourth quarter of 2014 decreased 18% to $1.8 million, down from $2.2 million in the fourth quarter of 2013. Install volume was the primary driver representing a $585,000 decrease from the fourth quarter of 2013. Hospitality recurring revenue increased to $1.5 million in the fourth quarter of 2014 compared to $1.3 million in 2013. Residential revenue was up 16% to $235,000 in the fourth quarter of 2014 compared to $203,000 in the same period last year.

Total 2014 adjusted EBITDA (as defined below) was negative $139,000 versus negative $1.4 million for the year ending 2013, an improvement of approximately $1.2million.

The highlights and business developments for the year ended December 31, 2014 include the following:

  • Adjusted EBIDTA improved $1.2M or 90% year over year.
  • Reduced operations expense approximately 21% year over year.
  • Reduced product development expense approximately 33% year over year.
  • Reduced selling, general and administrative expense approximately 27% year over year.
  • Hospitality recurring revenue increased approximately $201,000 or 4% year over year.
  • Reduced operating loss by approximately $959,000 or 29%.

"The strategic initiatives and cost containment programs initiated in 2013 have allowed us to continue to efficiently operate the business through 2014, while executing a major strategic transaction. We intend to continue to foster a culture of cost containment, while leveraging our merger with SignalPoint Holdings. As the merged entities continue to integrate we look forward to providing updates on our progress," stated Michael S. Wasik, CEO of SignalShare Infrastructure.

In addition to the Company's results of operations determined in accordance with accounting principles generally accepted in the U.S. (GAAP), which are presented and discussed above, management also utilizes adjusted EBITDA, an unaudited financial measure that is not calculated in accordance with GAAP, to evaluate the Company's financial results and performance and to plan and forecast future periods. Adjusted EBITDA is considered a "non-GAAP" financial measure within the meaning of Regulation G promulgated by the SEC. Management believes that this non-GAAP financial measure reflects an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results, provides a more complete understanding of the Company's results of operations and the factors and trends affecting its business. Management believes adjusted EBITDA provides meaningful supplemental information regarding the Company's performance because (i) it allows for greater transparency with respect to key metrics used by management in its financial and operational decision-making; (ii) it excludes the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company's core operating performance and that may obscure trends in the Company's core operating performance. However, adjusted EBITDA and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the Company and the manner in which they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP financial measures used by other companies, including the Company's competitors.

The Company defines adjusted EBITDA as net income (loss) excluding the effects of interest, taxes, depreciation, amortization, stock-based compensation, loss on asset impairment, loss from discontinued operations, non-cash gains or losses resulting from the forgiveness of debt and, if any and when specified, other non-recurring income or expense items. The Company believes that the most directly comparable GAAP financial measure to adjusted EBITDA is net loss. Adjusted EBITDA has limitations and should not be considered as an alternative to gross profit or net loss as a measure of operating performance or to net cash provided by (used in) operating, investing or financing activities as a measure of ability to meet cash needs.

The following is a reconciliation of adjusted EBITDA to the most comparable GAAP measure, net loss, for the year ended December 31, 2014 and 2013 (in thousands):

    
  For the year ended December 31, 2014  For the year ended December 31, 2013
Net loss $(2,671,020)  $(4,153,816)
Interest Expense  598,756   642,813
Interest income  (115,853)   (180,220)
Depreciation  207,954   247,706
Loss on asset impairment  1,162,941   832,429
Amortization of debt discount  342,026   342,026
Stock-based compensation  456,938   493,291
Loss from discontinued operations  6,131   422,503
Settlement of liabilities  (127,259)   -
Adjusted EBITDA $(139,386)  $(1,353,268)
      

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 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, 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.

Contact Information