Cumulus Media (CMLS) – Q3 Gives Credence To Its Favorable 2022 Outlook

Thursday, November 04, 2021

Cumulus Media (CMLS)
Q3 Gives Credence To Its Favorable 2022 Outlook

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Favorable Q3 results. While revenues were in line with expectations ($237.7 million versus our estimate of $237.0 million), adj. EBITDA was much better than we thought ($48.5 million versus our estimate of $36.0 million). But, the stand out in the quarter, was the better than expected EBITDA , which reflected aggressive cost reductions. Management indicated that Q3 fixed expenses were reduced by an impressive $10 million. This accounted for virtually all of the upside EBITDA variance.

    Reiterates favorable 2022 adj.  EBITDA outlook. In spite of some near term revenue headwinds, management appeared sanguine about delivering $175 million to $200 million in adjusted EBITDA for full year 2022. Notably, management plans to deliver more than $70 million in fixed cost reductions in 2022 compared with its 2019 baseline expenses. We believe that the positive upside in EBITDA in Q3 is a …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Townsquare Media (TSQ) – Another Beat And Raise Quarter

Wednesday, November 03, 2021

Townsquare Media (TSQ)
Another Beat And Raise Quarter

Townsquare Media Inc is an entertainment and media company offering digital marketing solutions in the United States and Canada. It owns and operates radio stations, social media properties focusing the small and mid-cap companies. Services offered to the clients include live events, local advertising, digital advertising, e-commerce offerings, few others. The segments through which the company operates its businesses are classified into Local marketing solutions and Entertainment segments. Revenues are generated from commercials through broadcasts and sale of internet based advertisements.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Strong Q3. Total company revenues of $111.3 million beat our estimate of $107.8 million. The largest variance from our estimate was in its Local Marketing Solutions segment, driven by strong growth in its programmatic, Ignite business, and advertising on its own websites and apps, called Amped. Adj. EBITDA increased a strong 66.5% to $29.1 million, above our $27.5 million estimate. In addition, the company’s Townsquare Interactive segment increased revenues a strong 16.5%. Digital accounted for 47% of total company revenues in the quarter.

    Fast paced recovery.  The recent results were extraordinary given that the company has virtually recovered to pre-Covid levels. In the latest quarter, the company’s revenues were 99% of Q3 2019 levels. Notably, in the latest quarter, adj. EBITDA was 101% of Q3 2019 levels. For the full year, the company expects that adj. EBITDA will be as much as 103% of pre-Covid levels …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Cumulus Media (CMLS) – Quarterly Preview Throttling Back Expectations Somewhat

Friday, October 29, 2021

Cumulus Media (CMLS)
Quarterly Preview: Throttling Back Expectations Somewhat

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    2021-Q3 appears in line. The upcoming third quarter results are expected to reflect a a continuation of the advertising rebound reflected in the second quarter. Total company revenues are expected to be up roughly 20% to $237.0 million, with adj. EBITDA of $36.0 million, up 15%. The company is expected to report its third quarter end September 30 results on November 3rd.

    Feeling the pinch.  We believe that supply chain issues and labor shortages are beginning to affect the overall health of the U.S. economy, which is more evident in the larger markets than the smaller. In addition, chip shortages continue to plague the important auto category. As such, we are throttling back our fourth quarter revenue and adj. EBITDA estimate. We are lowering our Q4 revenue estimate …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Cumulus Media (CMLS) – Quarterly Preview: Throttling Back Expectations Somewhat

Friday, October 29, 2021

Cumulus Media (CMLS)
Quarterly Preview: Throttling Back Expectations Somewhat

CUMULUS MEDIA, Inc. (NASDAQ: CMLS) is a leading audio-first media and entertainment company delivering premium content to over a quarter billion people every month — wherever and whenever they want it. CUMULUS MEDIA engages listeners with high-quality local programming through 428 owned-and-operated stations across 87 markets; delivers nationally-syndicated sports, news, talk, and entertainment programming from iconic brands including the NFL, the NCAA, the Masters, the Olympics, the GRAMMYS, the American Country Music Awards, and many other world-class partners across nearly 8,000 affiliated stations through Westwood One, the largest audio network in America; and inspires listeners through its rapidly growing network of original podcasts that are smart, entertaining and thought-provoking. CUMULUS MEDIA provides advertisers with local impact and national reach through on-air, digital, mobile, and voice-activated media solutions, as well as access to integrated digital marketing services, powerful influencers, and live event experiences. CUMULUS MEDIA is the only audio media company to provide marketers with local and national advertising performance guarantees.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    2021-Q3 appears in line. The upcoming third quarter results are expected to reflect a a continuation of the advertising rebound reflected in the second quarter. Total company revenues are expected to be up roughly 20% to $237.0 million, with adj. EBITDA of $36.0 million, up 15%. The company is expected to report its third quarter end September 30 results on November 3rd.

    Feeling the pinch.  We believe that supply chain issues and labor shortages are beginning to affect the overall health of the U.S. economy, which is more evident in the larger markets than the smaller. In addition, chip shortages continue to plague the important auto category. As such, we are throttling back our fourth quarter revenue and adj. EBITDA estimate. We are lowering our Q4 revenue estimate …



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

Release – Harte Hanks Hires Elliott Peterson As Chief Technology Officer


Harte Hanks Hires Elliott Peterson As Chief Technology Officer

 

Former Advantage Solutions Executive Joins Leadership Team

AUSTIN, Texas
Oct. 26, 2021 /PRNewswire/ — 

Harte Hanks
, a leading global customer experience company, announced today that it has named well-respected technology executive  Elliott Peterson as the company’s new Chief Technology Officer.

Peterson joins 
Harte Hanks from Advantage Solutions where he recently served as the interim CIO and Sr. VP of Global Information Technology. He will report directly to  Brian Linscott, CEO, 
Harte Hanks.  

In his new role, Peterson will be responsible for overseeing the company’s global technology operations which include eleven offices in five countries and over 2,000 employees. Peterson will work closely with the company’s leadership team to ensure its technology provides best-in-class solutions in the company’s core business areas of Marketing Services, Customer Care, and Fulfillment and Logistics for its broad portfolio of clients.

“Elliott is an incredibly accomplished technology and business leader who has worked with a wide variety of leading corporations and industries,” says  Brian Linscott
Harte Hanks. “He brings a wealth of experience and knowledge along with a proven track record as a highly innovative leader in digital transformation and business change. He will be a tremendous asset to our team as we continue to focus on profitable growth while expanding our client service capabilities.”

Peterson’s background also includes senior technology executive leadership roles with a diversity of companies in industries ranging from aerospace to retail, entertainment, and transportation including HireRight, 
Westfield LLC, Beats by Dre, PaperlinX, Transit Air Cargo, and NASA among others. 


Harte Hanks has an incredible track record of delivering the best in technology solutions and results for its clients,” says Peterson. “I am thrilled to be joining the organization during this exciting and rapidly accelerating time for the customer experience industry. I’m looking forward to working with them to ensure they have the most effective technology resources and systems in the marketplace.”

About Harte Hanks


Harte Hanks
 (OTCMKTS: HRTH) is a global customer experience company whose mission is to work with clients to provide them with strategy, analytics and insights combined with seamless program execution to better understand, attract, and engage their customers.

Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, 
Harte Hanks has a proven track record of driving results for some of the world’s premier brands including 
Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, 
Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in 
Austin, Texas
Harte Hanks has over 2,000 employees in offices across the 
Americas
Europe and 
Asia Pacific.

For more information visit hartehanks.com

For media inquiries contact:  Patrick Taylor, 59Media, patricktaylor0103@gmail.com

SOURCE 
Harte Hanks, Inc.

Release – Digerati Technologies Reports 142 Revenue Growth to $3.787 Million for Fourth Quarter FY2021


Digerati Technologies Reports 142% Revenue Growth to $3.787 Million for Fourth Quarter FY2021

 

– Non-GAAP Operating EBITDA of $0.910 Million –
– Gross Profit of $2.360 Million –
– Strong Gross Margin Improvement to 62.3% –

SAN ANTONIO, Texas, Oct. 27, 2021 (GLOBE NEWSWIRE) — Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, announced today financial results for the three and twelve months ended July 31, 2021, the Company’s fourth quarter and annual year end for its Fiscal Year 2021.

Key Financial Highlights for the Fourth Quarter Fiscal Year 2021 (Ended July 31, 2021)

  • Revenue increased by 142% to $3.787 million compared to $1.567 million for Q4 FY2020.
  • Gross profit increased 170% to $2.360 million compared to $0.875 million for Q4 FY2020.
  • Gross margin increased to 62.3% compared to 55.8% for Q4 FY2020.
  • Non-GAAP Adjusted EBITDA income improved to $0.525 million, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA income of $0.062 million for Q4 FY2020.
  • Non-GAAP operating EBITDA (OPCO EBITDA) improved to income of $0.910 million, excluding corporate expenses, compared to a non-GAAP operating EBITDA of $0.342 million for Q4 FY2020.

Arthur L. Smith, CEO of Digerati, commented, “We enjoyed a very productive and successful fiscal year 2021, highlighted by the closing of our acquisitions of Nexogy and ActivePBX. We accomplished key objectives related to these acquisitions during FY2021 and now have a strong and significant platform in Florida and Texas that serves as a foundation for continued growth. We will remain focused on targeting annual organic growth of 10% that is complemented by accretive acquisitions as we seek to increase our profitability and enhance shareholder value. With an acquisition financing partner, Post Road Group, that shares our vision for strategic acquisitive growth, we will seek to capitalize on the opportunities in a very fragmented market that has created a healthy pipeline of prospective acquisitions.”

Antonio Estrada, CFO of Digerati, stated, “We exited our fiscal year end July 31, 2021 in a much-improved financial position with annual run-rates of $15.148 million in revenue, $2.100 million in Non-GAAP Adjusted EBITDA and $3.640 million in Non-GAAP operating EBITDA. Our team has successfully integrated the acquisitions of Nexogy and ActivePBX and we are now seeing the financial reward. We proved that our operating and financial teams could execute on our acquisition strategy and look forward to replicating this success with additional targeted accretive acquisitions in the future.”

Fiscal Year Ended July 31, 2021 Accomplishments:

  • Closed acquisition of Nexogy. Over the years, the Nexogy team has developed a channel sales program that has proven to be effective and resulted in Nexogy’s recognition as one of the fastest growing technology companies in South Florida and nomination by the Miami Minority Chamber of Commerce as “High Tech Company of the Year 2016”.

  • Closed acquisition of ActivePBX. Over the years, ActivePBX has placed a strong emphasis on integrating its cloud communication platform with Customer Relationship Management (“CRM”) systems and most recently achieved the ‘Built for NetSuite’ status with its proven ActiveCRM CTI (Computer Telephony Integration) solution. This integration, built for Oracle NetSuite’s SuiteCloud Platform, allows organizations to pass CRM data seamlessly, easily, and conveniently between ActivePBX’s cloud system and Oracle NetSuite.

  • As a combined business, Nexogy, ActivePBX, and Digerati’s operating subsidiary, T3 Communications, Inc., serves over 2,600 business customers and approximately 28,000 users. The business model of the combined entities is supported by strong and predictable recurring revenue with high gross margins under contracts with business customers in various industries including banking, healthcare, financial services, legal, insurance, hotels, real estate, staffing, municipalities, food services, and education.

  • Closed a $20 million senior secured credit facility with Post Road Group. The Facility enables continued expansion of Digerati’s U.S. operations through organic growth efforts and targeted acquisitions. Post Road Group shares in Digerati’s strategic vision of combining organic growth with accretive acquisitions in building a formidable UCaaS provider for the small and medium-sized business market. With investing expertise in the Technology, Media, and Telecommunications (“TMT”) industries and a culture that aligns with that of the Company, Post Road Group is an ideal financial partner for Digerati during this key phase of its evolution. The initial funding of $14 million from the $20 million multi-draw facility was used to close the Company’s acquisitions of Nexogy, Inc. (Nexogy.com) and ActivePBX (ActivePBX.com), and refinance existing debt. Future draws may be used to fund additional acquisitions within the Company’s robust M&A pipeline of UCaaS providers that meet key financial, technical, and operational criteria, and have excelled at customer service and satisfaction when serving regional businesses. The Facility will support a more streamlined approach to the Company’s acquisition process, accelerating its consolidation strategy in the highly-fragmented UCaaS marketplace.

  • Entered a strategic partnership with Sandler Partners to expand access to America’s fastest-growing master agent and distributor of connectivity and cloud services. Nexogy’s UCaaS and CCaaS (Unified Communications as a Service and Contact Center as a Service) platform will allow Sandler to provide its partners with additional fully integrated solutions. Sandler’s more than 8,000 partners, 200 telecom, cloud, and data providers, and extensive network of expert agents will now be able to distribute Nexogy’s fully integrated suite of cloud communication services.

  • As a result of its acquisition of ActivePBX, the Company achieved the “Built for NetSuite” status for its operating subsidiary, T3 Communications, Inc. The SuiteApp, built for Oracle NetSuite’s SuiteCloud Platform, allows organizations to seamlessly, easily, and conveniently pass CRM data between the company’s cloud PBX and Oracle NetSuite, thus increasing productivity, reducing data entry time, and improving information accuracy across multiple agent touchpoints.

  • Improved balance sheet.

  • Reduced potential equity dilution.

Three Months ended July 31, 2021 Compared to Three Months ended July 31, 2020

Revenue for the three months ended July 31, 2021 was $3.787 million, an increase of $2.220 million or 142% compared to $1.567 million for the three months ended July 31, 2020. The increase in revenue between periods is primarily attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX during the period.

The total number of customers increased from 731 for the three months ended July 31, 2020 to 2,655 customers for the three months ended July 31, 2021.

Gross profit for the three months ended July 31, 2021 was $2.360 million, resulting in a gross margin of 62.3%, compared to $0.875 million and 55.8% for the three months ended July 31, 2020. The increase in gross margin is primarily due to the addition of high-margin revenue associated with Nexogy’s and ActivePBX’s UCaaS product line.  

Selling, General and Administrative expenses (excluding legal and professional fees) for the three months ended July 31, 2021 increased by $1.301 million, or 174%, to $2.050 million compared to $0.749 million for the three months ended July 31, 2020. The increase in SG&A is attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX.

Operating loss for the three months ended July 31, 2021, was $0.420 million, an increase of $0.150 million or 56%, compared to $0.270 million for the three months ended July 31, 2020.

Adjusted EBITDA income for the three months ended July 31, 2021, was $0.525 million, an improvement of $0.463 million, compared to an adjusted EBITDA income of $0.062 million for the three months ended July 31, 2020. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the three months ended July 31, 2021: Company recognition of stock-based compensation and warrant expense of $0.066 million and depreciation and amortization expense of $0.545 million. Gain on derivative instruments was $0.925 million for the three months ended July 31, 2021.

Non-GAAP operating EBITDA (OPCO EBITDA) for the three months ended July 31, 2021 improved to income of $0.910 million, excluding corporate expenses, compared to a non-GAAP operating income of $0.342 million for the three months ended July 31, 2020.

Net loss for the three months ended July 31, 2021, was $1.219 million, an increase of $0.895 million, as compared to a net loss of $0.324 million, for the three months ended July 31, 2020. The resulting EPS for the three months ended July 31, 2021 was a loss of ($0.01), as compared to a loss of ($0.00) for the three months ended July 31, 2020.

At July 31, 2021, Digerati had $1.489 million of cash.

Twelve Months ended July 31, 2021 Compared to Twelve Months ended July 31, 2020

Revenue for the twelve months ended July 31, 2021 was $12.416 million, an increase of $6.137 million or 98% compared to $6.279 million for the twelve months ended July 31, 2020. The increase in revenue between periods is primarily attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX during the period.

The total number of customers increased from 731 for the three months ended July 31, 2020 to 2,655 customers for the twelve months ended July 31, 2021.

Gross profit for the twelve months ended July 31, 2021 was $7.281 million, resulting in a gross margin of 58.6%, compared to $3.244 million and 51.7% for the twelve months ended July 31, 2020. The increase in gross margin is primarily due to the addition of high-margin revenue associated with Nexogy’s and ActivePBX’s UCaaS product line.  

Selling, General and Administrative expenses (excluding legal and professional fees) for the twelve months ended July 31, 2021 increased by $2.913 million, or 71%, to $7.019 million compared to $4.106 million for the twelve months ended July 31, 2020. The increase in SG&A is attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX.

Operating loss for the twelve months ended July 31, 2021, was $2.398 million, an increase of $0.286 million or 14%, compared to $2.112 million for the twelve months ended July 31, 2020.

Adjusted EBITDA income for the twelve months ended July 31, 2021, was $1.155 million, an improvement of $1.162 million, compared to an adjusted EBITDA loss of $0.007 million for the twelve months ended July 31, 2020. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the twelve months ended July 31, 2021: Company recognition of stock-based compensation and warrant expense of $0.972 million and depreciation and amortization expense of $1.749 million. Loss on derivative instruments was $9.935 million for the twelve months ended July 31, 2021.

Non-GAAP operating EBITDA (OPCO EBITDA) for the twelve months ended July 31, 2021 improved to income of $2.221 million, excluding corporate expenses, compared to a non-GAAP operating income of $0.883 million for the twelve months ended July 31, 2020.

Net loss for the twelve months ended July 31, 2021, was $16.703 million, an increase of $13.307 million, as compared to a net loss of $3.396 million, for the twelve months ended July 31, 2020. The increase in net loss is due primarily to the additional loss on derivative instruments of $10.198 million, a non-cash expense. The resulting EPS for the twelve months ended July 31, 2021 was a loss of ($0.13), as compared to a loss of ($0.06) for the twelve months ended July 31, 2020.

Use of Non-GAAP Financial Measurements

The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used in the cloud communications industry to evaluate companies on the basis of operating performance and leverage. Adjusted EBITDA provides an adjusted view of EBITDA that takes into account certain significant non-recurring transactions, if any, such as impairment losses and expenses associated with pending acquisitions, which vary significantly between periods and are not recurring in nature, as well as certain recurring non-cash charges such as changes in fair value of the Company’s derivative liabilities and stock-based compensation. The Company also believes that Adjusted EBITDA provides investors with a measure of the Company’s operational and financial progress that corresponds with the measurements used by management as a basis for allocating resources and making other operating decisions. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. Non-GAAP operating EBITDA (OPCO EBITDA) is useful to investors because it reflects EBITDA for the core operation of the business excluding corporate expenses, non-cash expenses and transactional expenses. EBITDA, Adjusted EBITDA, and Non-GAAP operating EBITDA are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

About Digerati Technologies, Inc.

Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries T3 Communications (T3com.com) and Nexogy (Nexogy.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™.  For more information, please visit www.digerati-inc.com or follow DTGI on LinkedIn, Twitter and Facebook.

Forward-Looking Statements

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements such as annual run-rates of $15.148 million in revenue, $2.100 million in Non-GAAP Adjusted EBITDA and $3.640 million in Non-GAAP operating EBITDA and our ability to secure synergistic, strategic, and accretive acquisitions, are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, our inability to source suitable acquisition targets, failure to execute growth strategies, lack of product development and related market acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.

Facebook: Digerati Technologies, Inc.
Twitter: @DIGERATI_IR
LinkedIn: Digerati Technologies, Inc.

Investors

The Eversull Group
Jack Eversull
jack@theeversullgroup.com
(972) 571-1624

ClearThink
Brian Loper
bloper@clearthink.capital
(347) 413-4234


DIGERATI TECHNOLOGIES, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts, unaudited)  
           
    Three months ended July 31,   For the Years ended July 31,  
    2021   2020   2021   2020  
OPERATING REVENUES:                  
Cloud software and service revenue   $ 3,787     $ 1,567     $ 12,416     $ 6,279    
                   
Total operating revenues     3,787       1,567       12,416       6,279    
                   
OPERATING EXPENSES:                  
Cost of services (exclusive of depreciation and amortization)     1,427       692       5,135       3,035    
Selling, general and administrative expense     2,050       749       7,019       4,106    
Legal and professional fees     177       234       894       642    
Bad debt     8       14       17       (5 )  
Depreciation and amortization expense     545       148       1,749       613    
Total operating expenses     4,207       1,837       14,814       8,391    
                   
OPERATING LOSS     (420 )     (270 )     (2,398 )     (2,112 )  
                   
OTHER INCOME (EXPENSE):                  
Gain (loss) on derivative instruments     925       194       (9,935 )     263    
Gain (loss) on settlement of debt     213       (5 )     560       129    
Income tax benefit (expense)     (61 )     11       (183 )     33    
Other income (expense)     (294 )     116       (294 )     116    
Interest expense     (1,686 )     (340 )     (4,765 )     (1,853 )  
Total other income (expense)     (903 )     (24 )     (14,617 )     (1,312 )  
                   
NET LOSS INCLUDING NONCONTROLLING INTEREST     (1,323 )     (294 )     (17,015 )     (3,424 )  
                   
Less: Net loss attributable to the noncontrolling interests     109       (11 )     332       47    
                   
NET LOSS ATTRIBUTABLE TO DIGERATI’S SHAREHOLDERS     (1,214 )     (305 )     (16,683 )     (3,377 )  
                   
Deemed dividend on Series A Convertible preferred stock     (5 )     (19 )     (20 )     (19 )  
                   
NET LOSS ATTRIBUTABLE TO DIGERATI’S COMMON SHAREHOLDERS   $ (1,219 )   $ (324 )   $ (16,703 )   $ (3,396 )  
                   
LOSS PER COMMON SHARE – BASIC   $ (0.01 )   $ (0.00 )   $ (0.13 )   $ (0.06 )  
                   
LOSS PER COMMON SHARE – DILUTED   $ (0.01 )   $ (0.00 )   $ (0.13 )   $ (0.06 )  
                   
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – BASIC     137,950,308       90,792,574       129,411,947       53,883,966    
                   
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – DILUTED     137,950,308       90,792,574       129,411,947       53,883,966    
                   
See notes to consolidated unaudited financial statements  
                   
                   
Reconciliation of Net Income (Loss) to Adjusted EBITDA – OPCO, Net of Non-cash expenses & Transactional Costs  
                   
NET LOSS ATTRIBUTABLE TO DIGERATI’S SHAREHOLDERS, as reported   $ (1,214 )   $ (305 )   $ (16,683 )   $ (3,377 )  
                   
EXCLUDING NON-CASH ITEMS TRANSACTIONAL COSTS & CORP EXP              
ADJUSTMENTS:                  
Stock compensation & warrant expense     66       (5 )     972       1,127    
Corp Expenses net of stock compensation & Transactional cost     384       280       1,066       890    
Legal and professional fees – transactional costs     326       175       815       370    
Depreciation and amortization expense     545       148       1,749       613    
Loss on derivative instruments     (925 )     (194 )     9,935       (263 )  
Bad Debt     8       14       17       (5 )  
OTHER ADJUSTMENTS                  
Other income (expense)     294       (116 )     294       (116 )  
Interest expense     1,686       340       4,765       1,853    
Income tax     61       (11 )     183       (33 )  
Less: Net loss attributable to the noncontrolling interest     (109 )     11       (332 )     (47 )  
Gain (loss) on settlement of debt     (213 )     5       (560 )     (129 )  
                   
ADJUSTED EBITDA – OPCO   $ 910     $ 342     $ 2,221     $ 883    
ADD-BACKS Expenses                  
Corp Expenses net of stock compensation & Transactional cost     384       280       1,066       890    
                   
ADJUSTED EBITDA – Income (Loss)   $ 525     $ 62     $ 1,155     $ (7 )  
                   

 

Digerati Technologies Reports 142% Revenue Growth to $3.787 Million for Fourth Quarter FY2021


Digerati Technologies Reports 142% Revenue Growth to $3.787 Million for Fourth Quarter FY2021

 

– Non-GAAP Operating EBITDA of $0.910 Million –
– Gross Profit of $2.360 Million –
– Strong Gross Margin Improvement to 62.3% –

SAN ANTONIO, Texas, Oct. 27, 2021 (GLOBE NEWSWIRE) — Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, announced today financial results for the three and twelve months ended July 31, 2021, the Company’s fourth quarter and annual year end for its Fiscal Year 2021.

Key Financial Highlights for the Fourth Quarter Fiscal Year 2021 (Ended July 31, 2021)

  • Revenue increased by 142% to $3.787 million compared to $1.567 million for Q4 FY2020.
  • Gross profit increased 170% to $2.360 million compared to $0.875 million for Q4 FY2020.
  • Gross margin increased to 62.3% compared to 55.8% for Q4 FY2020.
  • Non-GAAP Adjusted EBITDA income improved to $0.525 million, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA income of $0.062 million for Q4 FY2020.
  • Non-GAAP operating EBITDA (OPCO EBITDA) improved to income of $0.910 million, excluding corporate expenses, compared to a non-GAAP operating EBITDA of $0.342 million for Q4 FY2020.

Arthur L. Smith, CEO of Digerati, commented, “We enjoyed a very productive and successful fiscal year 2021, highlighted by the closing of our acquisitions of Nexogy and ActivePBX. We accomplished key objectives related to these acquisitions during FY2021 and now have a strong and significant platform in Florida and Texas that serves as a foundation for continued growth. We will remain focused on targeting annual organic growth of 10% that is complemented by accretive acquisitions as we seek to increase our profitability and enhance shareholder value. With an acquisition financing partner, Post Road Group, that shares our vision for strategic acquisitive growth, we will seek to capitalize on the opportunities in a very fragmented market that has created a healthy pipeline of prospective acquisitions.”

Antonio Estrada, CFO of Digerati, stated, “We exited our fiscal year end July 31, 2021 in a much-improved financial position with annual run-rates of $15.148 million in revenue, $2.100 million in Non-GAAP Adjusted EBITDA and $3.640 million in Non-GAAP operating EBITDA. Our team has successfully integrated the acquisitions of Nexogy and ActivePBX and we are now seeing the financial reward. We proved that our operating and financial teams could execute on our acquisition strategy and look forward to replicating this success with additional targeted accretive acquisitions in the future.”

Fiscal Year Ended July 31, 2021 Accomplishments:

  • Closed acquisition of Nexogy. Over the years, the Nexogy team has developed a channel sales program that has proven to be effective and resulted in Nexogy’s recognition as one of the fastest growing technology companies in South Florida and nomination by the Miami Minority Chamber of Commerce as “High Tech Company of the Year 2016”.

  • Closed acquisition of ActivePBX. Over the years, ActivePBX has placed a strong emphasis on integrating its cloud communication platform with Customer Relationship Management (“CRM”) systems and most recently achieved the ‘Built for NetSuite’ status with its proven ActiveCRM CTI (Computer Telephony Integration) solution. This integration, built for Oracle NetSuite’s SuiteCloud Platform, allows organizations to pass CRM data seamlessly, easily, and conveniently between ActivePBX’s cloud system and Oracle NetSuite.

  • As a combined business, Nexogy, ActivePBX, and Digerati’s operating subsidiary, T3 Communications, Inc., serves over 2,600 business customers and approximately 28,000 users. The business model of the combined entities is supported by strong and predictable recurring revenue with high gross margins under contracts with business customers in various industries including banking, healthcare, financial services, legal, insurance, hotels, real estate, staffing, municipalities, food services, and education.

  • Closed a $20 million senior secured credit facility with Post Road Group. The Facility enables continued expansion of Digerati’s U.S. operations through organic growth efforts and targeted acquisitions. Post Road Group shares in Digerati’s strategic vision of combining organic growth with accretive acquisitions in building a formidable UCaaS provider for the small and medium-sized business market. With investing expertise in the Technology, Media, and Telecommunications (“TMT”) industries and a culture that aligns with that of the Company, Post Road Group is an ideal financial partner for Digerati during this key phase of its evolution. The initial funding of $14 million from the $20 million multi-draw facility was used to close the Company’s acquisitions of Nexogy, Inc. (Nexogy.com) and ActivePBX (ActivePBX.com), and refinance existing debt. Future draws may be used to fund additional acquisitions within the Company’s robust M&A pipeline of UCaaS providers that meet key financial, technical, and operational criteria, and have excelled at customer service and satisfaction when serving regional businesses. The Facility will support a more streamlined approach to the Company’s acquisition process, accelerating its consolidation strategy in the highly-fragmented UCaaS marketplace.

  • Entered a strategic partnership with Sandler Partners to expand access to America’s fastest-growing master agent and distributor of connectivity and cloud services. Nexogy’s UCaaS and CCaaS (Unified Communications as a Service and Contact Center as a Service) platform will allow Sandler to provide its partners with additional fully integrated solutions. Sandler’s more than 8,000 partners, 200 telecom, cloud, and data providers, and extensive network of expert agents will now be able to distribute Nexogy’s fully integrated suite of cloud communication services.

  • As a result of its acquisition of ActivePBX, the Company achieved the “Built for NetSuite” status for its operating subsidiary, T3 Communications, Inc. The SuiteApp, built for Oracle NetSuite’s SuiteCloud Platform, allows organizations to seamlessly, easily, and conveniently pass CRM data between the company’s cloud PBX and Oracle NetSuite, thus increasing productivity, reducing data entry time, and improving information accuracy across multiple agent touchpoints.

  • Improved balance sheet.

  • Reduced potential equity dilution.

Three Months ended July 31, 2021 Compared to Three Months ended July 31, 2020

Revenue for the three months ended July 31, 2021 was $3.787 million, an increase of $2.220 million or 142% compared to $1.567 million for the three months ended July 31, 2020. The increase in revenue between periods is primarily attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX during the period.

The total number of customers increased from 731 for the three months ended July 31, 2020 to 2,655 customers for the three months ended July 31, 2021.

Gross profit for the three months ended July 31, 2021 was $2.360 million, resulting in a gross margin of 62.3%, compared to $0.875 million and 55.8% for the three months ended July 31, 2020. The increase in gross margin is primarily due to the addition of high-margin revenue associated with Nexogy’s and ActivePBX’s UCaaS product line.  

Selling, General and Administrative expenses (excluding legal and professional fees) for the three months ended July 31, 2021 increased by $1.301 million, or 174%, to $2.050 million compared to $0.749 million for the three months ended July 31, 2020. The increase in SG&A is attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX.

Operating loss for the three months ended July 31, 2021, was $0.420 million, an increase of $0.150 million or 56%, compared to $0.270 million for the three months ended July 31, 2020.

Adjusted EBITDA income for the three months ended July 31, 2021, was $0.525 million, an improvement of $0.463 million, compared to an adjusted EBITDA income of $0.062 million for the three months ended July 31, 2020. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the three months ended July 31, 2021: Company recognition of stock-based compensation and warrant expense of $0.066 million and depreciation and amortization expense of $0.545 million. Gain on derivative instruments was $0.925 million for the three months ended July 31, 2021.

Non-GAAP operating EBITDA (OPCO EBITDA) for the three months ended July 31, 2021 improved to income of $0.910 million, excluding corporate expenses, compared to a non-GAAP operating income of $0.342 million for the three months ended July 31, 2020.

Net loss for the three months ended July 31, 2021, was $1.219 million, an increase of $0.895 million, as compared to a net loss of $0.324 million, for the three months ended July 31, 2020. The resulting EPS for the three months ended July 31, 2021 was a loss of ($0.01), as compared to a loss of ($0.00) for the three months ended July 31, 2020.

At July 31, 2021, Digerati had $1.489 million of cash.

Twelve Months ended July 31, 2021 Compared to Twelve Months ended July 31, 2020

Revenue for the twelve months ended July 31, 2021 was $12.416 million, an increase of $6.137 million or 98% compared to $6.279 million for the twelve months ended July 31, 2020. The increase in revenue between periods is primarily attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX during the period.

The total number of customers increased from 731 for the three months ended July 31, 2020 to 2,655 customers for the twelve months ended July 31, 2021.

Gross profit for the twelve months ended July 31, 2021 was $7.281 million, resulting in a gross margin of 58.6%, compared to $3.244 million and 51.7% for the twelve months ended July 31, 2020. The increase in gross margin is primarily due to the addition of high-margin revenue associated with Nexogy’s and ActivePBX’s UCaaS product line.  

Selling, General and Administrative expenses (excluding legal and professional fees) for the twelve months ended July 31, 2021 increased by $2.913 million, or 71%, to $7.019 million compared to $4.106 million for the twelve months ended July 31, 2020. The increase in SG&A is attributed to the consolidation of the closed acquisitions of Nexogy and ActivePBX.

Operating loss for the twelve months ended July 31, 2021, was $2.398 million, an increase of $0.286 million or 14%, compared to $2.112 million for the twelve months ended July 31, 2020.

Adjusted EBITDA income for the twelve months ended July 31, 2021, was $1.155 million, an improvement of $1.162 million, compared to an adjusted EBITDA loss of $0.007 million for the twelve months ended July 31, 2020. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

Of note were the following non-cash expenses associated with the twelve months ended July 31, 2021: Company recognition of stock-based compensation and warrant expense of $0.972 million and depreciation and amortization expense of $1.749 million. Loss on derivative instruments was $9.935 million for the twelve months ended July 31, 2021.

Non-GAAP operating EBITDA (OPCO EBITDA) for the twelve months ended July 31, 2021 improved to income of $2.221 million, excluding corporate expenses, compared to a non-GAAP operating income of $0.883 million for the twelve months ended July 31, 2020.

Net loss for the twelve months ended July 31, 2021, was $16.703 million, an increase of $13.307 million, as compared to a net loss of $3.396 million, for the twelve months ended July 31, 2020. The increase in net loss is due primarily to the additional loss on derivative instruments of $10.198 million, a non-cash expense. The resulting EPS for the twelve months ended July 31, 2021 was a loss of ($0.13), as compared to a loss of ($0.06) for the twelve months ended July 31, 2020.

Use of Non-GAAP Financial Measurements

The Company believes that EBITDA (earnings before interest, taxes, depreciation and amortization) is useful to investors because it is commonly used in the cloud communications industry to evaluate companies on the basis of operating performance and leverage. Adjusted EBITDA provides an adjusted view of EBITDA that takes into account certain significant non-recurring transactions, if any, such as impairment losses and expenses associated with pending acquisitions, which vary significantly between periods and are not recurring in nature, as well as certain recurring non-cash charges such as changes in fair value of the Company’s derivative liabilities and stock-based compensation. The Company also believes that Adjusted EBITDA provides investors with a measure of the Company’s operational and financial progress that corresponds with the measurements used by management as a basis for allocating resources and making other operating decisions. Although the Company uses Adjusted EBITDA as one of several financial measures to assess its operating performance, its use is limited as it excludes certain significant operating expenses. Non-GAAP operating EBITDA (OPCO EBITDA) is useful to investors because it reflects EBITDA for the core operation of the business excluding corporate expenses, non-cash expenses and transactional expenses. EBITDA, Adjusted EBITDA, and Non-GAAP operating EBITDA are not intended to represent cash flows for the periods presented, nor have they been presented as an alternative to operating income or as an indicator of operating performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In accordance with SEC Regulation G, the non-GAAP measurements in this press release have been reconciled to the nearest GAAP measurement, which can be viewed under the heading “Reconciliation of Net Loss to Adjusted EBITDA” in the financial table included in this press release.

About Digerati Technologies, Inc.

Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries T3 Communications (T3com.com) and Nexogy (Nexogy.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network. The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™.  For more information, please visit www.digerati-inc.com or follow DTGI on LinkedIn, Twitter and Facebook.

Forward-Looking Statements

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements such as annual run-rates of $15.148 million in revenue, $2.100 million in Non-GAAP Adjusted EBITDA and $3.640 million in Non-GAAP operating EBITDA and our ability to secure synergistic, strategic, and accretive acquisitions, are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, our inability to source suitable acquisition targets, failure to execute growth strategies, lack of product development and related market acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.

Facebook: Digerati Technologies, Inc.
Twitter: @DIGERATI_IR
LinkedIn: Digerati Technologies, Inc.

Investors

The Eversull Group
Jack Eversull
jack@theeversullgroup.com
(972) 571-1624

ClearThink
Brian Loper
bloper@clearthink.capital
(347) 413-4234


DIGERATI TECHNOLOGIES, INC. AND SUBSIDIARIES  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share amounts, unaudited)  
           
    Three months ended July 31,   For the Years ended July 31,  
    2021   2020   2021   2020  
OPERATING REVENUES:                  
Cloud software and service revenue   $ 3,787     $ 1,567     $ 12,416     $ 6,279    
                   
Total operating revenues     3,787       1,567       12,416       6,279    
                   
OPERATING EXPENSES:                  
Cost of services (exclusive of depreciation and amortization)     1,427       692       5,135       3,035    
Selling, general and administrative expense     2,050       749       7,019       4,106    
Legal and professional fees     177       234       894       642    
Bad debt     8       14       17       (5 )  
Depreciation and amortization expense     545       148       1,749       613    
Total operating expenses     4,207       1,837       14,814       8,391    
                   
OPERATING LOSS     (420 )     (270 )     (2,398 )     (2,112 )  
                   
OTHER INCOME (EXPENSE):                  
Gain (loss) on derivative instruments     925       194       (9,935 )     263    
Gain (loss) on settlement of debt     213       (5 )     560       129    
Income tax benefit (expense)     (61 )     11       (183 )     33    
Other income (expense)     (294 )     116       (294 )     116    
Interest expense     (1,686 )     (340 )     (4,765 )     (1,853 )  
Total other income (expense)     (903 )     (24 )     (14,617 )     (1,312 )  
                   
NET LOSS INCLUDING NONCONTROLLING INTEREST     (1,323 )     (294 )     (17,015 )     (3,424 )  
                   
Less: Net loss attributable to the noncontrolling interests     109       (11 )     332       47    
                   
NET LOSS ATTRIBUTABLE TO DIGERATI’S SHAREHOLDERS     (1,214 )     (305 )     (16,683 )     (3,377 )  
                   
Deemed dividend on Series A Convertible preferred stock     (5 )     (19 )     (20 )     (19 )  
                   
NET LOSS ATTRIBUTABLE TO DIGERATI’S COMMON SHAREHOLDERS   $ (1,219 )   $ (324 )   $ (16,703 )   $ (3,396 )  
                   
LOSS PER COMMON SHARE – BASIC   $ (0.01 )   $ (0.00 )   $ (0.13 )   $ (0.06 )  
                   
LOSS PER COMMON SHARE – DILUTED   $ (0.01 )   $ (0.00 )   $ (0.13 )   $ (0.06 )  
                   
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – BASIC     137,950,308       90,792,574       129,411,947       53,883,966    
                   
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING – DILUTED     137,950,308       90,792,574       129,411,947       53,883,966    
                   
See notes to consolidated unaudited financial statements  
                   
                   
Reconciliation of Net Income (Loss) to Adjusted EBITDA – OPCO, Net of Non-cash expenses & Transactional Costs  
                   
NET LOSS ATTRIBUTABLE TO DIGERATI’S SHAREHOLDERS, as reported   $ (1,214 )   $ (305 )   $ (16,683 )   $ (3,377 )  
                   
EXCLUDING NON-CASH ITEMS TRANSACTIONAL COSTS & CORP EXP              
ADJUSTMENTS:                  
Stock compensation & warrant expense     66       (5 )     972       1,127    
Corp Expenses net of stock compensation & Transactional cost     384       280       1,066       890    
Legal and professional fees – transactional costs     326       175       815       370    
Depreciation and amortization expense     545       148       1,749       613    
Loss on derivative instruments     (925 )     (194 )     9,935       (263 )  
Bad Debt     8       14       17       (5 )  
OTHER ADJUSTMENTS                  
Other income (expense)     294       (116 )     294       (116 )  
Interest expense     1,686       340       4,765       1,853    
Income tax     61       (11 )     183       (33 )  
Less: Net loss attributable to the noncontrolling interest     (109 )     11       (332 )     (47 )  
Gain (loss) on settlement of debt     (213 )     5       (560 )     (129 )  
                   
ADJUSTED EBITDA – OPCO   $ 910     $ 342     $ 2,221     $ 883    
ADD-BACKS Expenses                  
Corp Expenses net of stock compensation & Transactional cost     384       280       1,066       890    
                   
ADJUSTED EBITDA – Income (Loss)   $ 525     $ 62     $ 1,155     $ (7 )  
                   

 

Harte Hanks Hires Elliott Peterson As Chief Technology Officer


Harte Hanks Hires Elliott Peterson As Chief Technology Officer

 

Former Advantage Solutions Executive Joins Leadership Team

AUSTIN, Texas
Oct. 26, 2021 /PRNewswire/ — 

Harte Hanks
, a leading global customer experience company, announced today that it has named well-respected technology executive  Elliott Peterson as the company’s new Chief Technology Officer.

Peterson joins 
Harte Hanks from Advantage Solutions where he recently served as the interim CIO and Sr. VP of Global Information Technology. He will report directly to  Brian Linscott, CEO, 
Harte Hanks.  

In his new role, Peterson will be responsible for overseeing the company’s global technology operations which include eleven offices in five countries and over 2,000 employees. Peterson will work closely with the company’s leadership team to ensure its technology provides best-in-class solutions in the company’s core business areas of Marketing Services, Customer Care, and Fulfillment and Logistics for its broad portfolio of clients.

“Elliott is an incredibly accomplished technology and business leader who has worked with a wide variety of leading corporations and industries,” says  Brian Linscott
Harte Hanks. “He brings a wealth of experience and knowledge along with a proven track record as a highly innovative leader in digital transformation and business change. He will be a tremendous asset to our team as we continue to focus on profitable growth while expanding our client service capabilities.”

Peterson’s background also includes senior technology executive leadership roles with a diversity of companies in industries ranging from aerospace to retail, entertainment, and transportation including HireRight, 
Westfield LLC, Beats by Dre, PaperlinX, Transit Air Cargo, and NASA among others. 


Harte Hanks has an incredible track record of delivering the best in technology solutions and results for its clients,” says Peterson. “I am thrilled to be joining the organization during this exciting and rapidly accelerating time for the customer experience industry. I’m looking forward to working with them to ensure they have the most effective technology resources and systems in the marketplace.”

About Harte Hanks


Harte Hanks
 (OTCMKTS: HRTH) is a global customer experience company whose mission is to work with clients to provide them with strategy, analytics and insights combined with seamless program execution to better understand, attract, and engage their customers.

Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, 
Harte Hanks has a proven track record of driving results for some of the world’s premier brands including 
Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, 
Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in 
Austin, Texas
Harte Hanks has over 2,000 employees in offices across the 
Americas
Europe and 
Asia Pacific.

For more information visit hartehanks.com

For media inquiries contact:  Patrick Taylor, 59Media, patricktaylor0103@gmail.com

SOURCE 
Harte Hanks, Inc.

Release – Salem Media Group Schedules Third Quarter 2021 Earnings Release and Teleconference


Salem Media Group Schedules Third Quarter 2021 Earnings Release and Teleconference

IRVING, Texas–(BUSINESS WIRE)– Salem Media
Group, Inc.
 (NASDAQ: SALM) announced today that it plans to report its third quarter 2021 financial results after the market closes on November 4, 2021.

The company also plans to host a teleconference to discuss its results on November 4, 2021 at 4:00 P.M. Central Time. To access the teleconference, please dial (877) 524-8416, and then ask to be joined to the Salem Media Group Third Quarter 2021 call or listen to the webcast.

A replay of the teleconference will be available through November 18, 2021 and can be heard by dialing (877) 660-6853 – replay pin number 13722694, or on the investor relations portion of the company’s website, located at investor.salemmedia.com.

ABOUT SALEM MEDIA GROUP:

Salem Media Group is America’s leading multimedia company specializing in Christian and conservative content, with media properties comprising radio, digital media and book and newsletter publishing. Each day Salem serves a loyal and dedicated audience of listeners and readers numbering in the millions nationally. With its unique programming focus, Salem provides compelling content, fresh commentary and relevant information from some of the most respected figures across the Christian and conservative media landscape. Learn more about Salem Media Group, Inc. at www.salemmedia.comFacebook and Twitter.

View
source version on businesswire.com: 
https://www.businesswire.com/news/home/20211026005088/en/

Evan D. Masyr
Executive Vice President and Chief
Financial Officer
(805) 384-4512
evan@salemmedia.com

Source: Salem Media Group, Inc.

Released October 26, 2021

Release – Gray Announces Private Offering of Senior Notes


Gray Announces Private Offering of Senior Notes

ATLANTA, Oct. 25, 2021 (GLOBE NEWSWIRE) — Gray
Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN)
 announced today that a special purpose wholly owned subsidiary of Gray intends to offer up to $1,125 million aggregate principal amount of senior notes due 2031, subject to market conditions. The offering will be exempt from the registration requirements of the Securities Act of 1933 (the “Securities Act”).

The notes are being offered to finance, together with cash on hand and anticipated borrowings under Gray’s senior credit facility, Gray’s pending merger with Meredith Corporation (“Meredith”), pursuant to which Gray will acquire Meredith’s local media group, immediately after and subject to Meredith’s spin-off of its national media group to the Meredith shareholders (the “Meredith Merger”), which was previously announced on May 3, 2021. If the Meredith Merger is consummated and certain other conditions are satisfied, the net proceeds from the offering will be released from escrow to fund the Meredith Merger, and Gray will become the obligor under the notes (the “Assumption”).

Following the Assumption, the notes will be guaranteed, jointly and severally, by each existing and future restricted subsidiary of Gray that guarantees Gray’s existing senior credit facility.

The notes and related guarantees will be offered only to qualified institutional buyers under Rule 144A of the Securities Act, and to non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135c under the Act.

Cautionary Statements for Purposes
of the “Safe Harbor” Provisions of the Private Securities Litigation
Reform Act

This press release contains certain forward-looking statements that are based largely on Gray’s current expectations and reflect various estimates and assumptions by Gray. These statements are statements other than those of historical fact, and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray’s control, include Gray’s ability to complete its pending acquisition of Meredith Corporation’s local media group or other pending transactions on the terms and within the timeframe currently contemplated, any material regulatory or other unexpected requirements in connection therewith, and other future events. Gray is subject to additional risks and uncertainties described in Gray’s quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and management’s discussion and analysis of financial condition and results of operations sections contained therein, which reports are made publicly available via its website, www.gray.tv. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.


Contact Data

 
www.gray.tv
Jim Ryan, Executive Vice President and Chief Financial Officer, 404-504-9828
Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333

Release – Esports Entertainment Group Announces Fan-Centered EGL ClubClash Program with Professional Sports Teams

 


Esports Entertainment Group Announces Fan-Centered EGL ClubClash Program with Professional Sports Teams

Newark, New Jersey–(Newsfile Corp. – October 21, 2021) – Esports Entertainment Group, Inc. (NASDAQ: GMBL) (NASDAQ: GMBLW) (or the “Company”) has partnered with a number of professional sports teams as their official esports tournament provider. Over the past year, fans of these organizations have enjoyed playing in one-off tournaments to see who is the best gamer. In an effort to provide fans more opportunities for interaction with one another and all of the participating teams, the Company is excited to unveil a brand new, immersive program titled “EGL ClubClash”, which gives fans the opportunity to play on their team’s behalf to prove which team has the greatest gamers.

As competitors play different games, they will earn team and individual points called “ClubClash Rep” which can be used to redeem everything from team merchandise to tickets. Some of the top prizes include tickets to a home game, signed and game worn memorabilia, video messages from players and more.

“With the unveiling of EGL ClubClash, we’re thrilled to bring a unique experience to sports and esports fans alike,” said Magnus Leppäniemi, President of Esports at Esports Entertainment Group. “Competitors will get to play their favorite games while also being able to earn exclusive experiences that bring them closer to the team they follow and represent during this program.”

Each professional team participating in EGL ClubClash will have their own leaderboards with constant updates on weekly and lifetime ranking in addition to where the team stands in the overall program standings. EGL Club Clash will have two distinct areas – Arena and Arcade – with arena being a more traditional competitive platform where players will vie for Rep and cash prizes through solo play and tournaments. Meanwhile, Arcade allows players to compete at any time to earn Rep.

EGL ClubClash’s Arena mode opens up preseason registration on October 25, 2021 with the preseason getting underway on November 24. The preseason finals will take place December 15-18. Madden, Fortnite, Rocket League and Valorant are the four games selected for the preseason. The first full season (arcade and arena) kicks off on January 3, 2022, with the finals taking place March 23-26.

About Esports Entertainment Group

Esports Entertainment Group is a full stack esports and online gambling company fueled by the growth of video-gaming and the ascendance of esports with new generations. Our mission is to help connect the world at large with the future of sports entertainment in unique and enriching ways that bring fans and gamers together. Esports Entertainment Group and its affiliates are well-poised to help fans and players to stay connected and involved with their favorite esports. From traditional sports partnerships with professional NFL/NHL/NBA/FIFA teams, community-focused tournaments in a wide range of esports, and boots-on-the-ground LAN cafes, EEG has influence over the full-spectrum of esports and gaming at all levels. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

Forward-Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations
RedChip Companies, Inc.
Dave Gentry
407-491-4498

dave@redchip.com

Media Inquiries
brandon.apter@esportsentertainmentgroup.com

Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

Release – Engine Media Announces Upcoming Name Change to Engine Gaming and Media, Inc.

 


Engine Media Announces Upcoming Name Change to Engine Gaming and Media, Inc.

NEW YORK, October 15, 2021 — Engine Media Holdings, Inc. (“Engine” or the “Company”; NASDAQ: GAME; TSX-V: GAME), an esports/sports gaming and next-generation media solutions company, is pleased to announce that it has filed with the TSX Venture Exchange (the “Exchange”) a notice of name change to “Engine Gaming and Media, Inc.”  The name change is expected to be effective at the start of trading on October 19, 2021, and the Company’s shares will continue to trade under the “GAME” symbol.

“For some time we have believed that our corporate name, Engine Media Holdings, didn’t fully capture the scope of our operations and the centrality of gaming in our company’s overall business model, given that, Engine’s WinView, UMG, Eden and Stream Hatchet units, are all gaming related businesses” noted Lou Schwartz, Engine’s CEO.  “While this update is minor, we believe it will be an important step in highlighting our gaming DNA to the various communities and marketplaces in which we operate.”  The foregoing name change remains subject to final TSXV acceptance.

About Engine Media Holdings, Inc.

Engine Media Holdings Inc. is traded publicly under the ticker symbol (NASDAQ: GAME) (TSX-V: GAME). Engine provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties while also providing these services to enable its clients and partners. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; Eden Games, a premium motorsport video game developer and publisher across console and mobile gaming; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; UMG, an end-to-end competitive esports platform powering and broadcasting major esports events, as well as daily community tournaments, matches, and ladders; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine Media generates revenue through a combination of direct-to-consumer and subscription fees, streaming technology and data SaaS-based offerings, programmatic advertising, and sponsorships.

Cautionary Statement on Forward-Looking Information

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In respect of the forward-looking information contained herein, including the name change described herein and the potential outcomes and benefits to be derived therefrom, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.

The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For Further Information:

Investors

Ryan Lawrence, ICR

Ryan.Lawrence@icrinc.com

332-242-4321

 

Media

James Goldfarb, Sloane & Company

jgoldfarb@sloanepr.com

212-446-1869

Gray Television (GTN) – Putting The Pieces Together To Close On Meredith

Thursday, October 21, 2021

Gray Television Inc. (GTN)
Putting The Pieces Together To Close On Meredith

Gray Television, Inc. operates as a television broadcast company in the United States. As of April 6, 2010, it operated 36 television stations in 30 markets, including 17 affiliated with CBS Inc.; 10 affiliated with the National Broadcasting Company, Inc.; 8 affiliated with the American Broadcasting Company (ABC); and 1 affiliated with FOX Entertainment Group, Inc. (FOX). The company also operated 39 digital second channels comprising 1 affiliated with ABC, 4 affiliated with FOX, 7 affiliated with CW Network, LLC, 18 affiliated with Twentieth Television, Inc., 2 affiliated with Universal Sports Network, and 7 local news/weather channels. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    Updates Q3 Guidance.  The updated Q3 guidance was an increase from original guidance that included the Quincy acquisition and divestitures on August 2. Total company revenues are expected to be in the range of $590 million to $600 million, an increase from the previous guidance range of $571 million to $581 million.

    Revise Q3 estimates upward.  We are increasing our Q3 revenue estimate from $579 million to $600 million at the higher end of the company’s guide. Based on expense guidance, we are tweaking upward our Adj. EBITDA from $177 million to…



This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.