Troika Media Group Inc. Accelerates its Business Transformation and Reports Record Revenue of $85.4 million and Adjusted EBITDA of $5.6 million in its Fourth Quarter and Fiscal Year 2022 Results

NEW YORK, Sept. 29, 2022 /PRNewswire/ — Troika Media Group, Inc. ( Nasdaq: TRKA) (“TMG”), a client engagement and buyer acquisition group right this moment introduced monetary outcomes for its fiscal fourth quarter and monetary 12 months ended June 30, 2022. TMG is knowledgeable providers firm that architects and builds enterprise worth in client dealing with manufacturers to generate scalable efficiency pushed income progress. The Firm delivers three options pillars: we CREATE manufacturers and experiences and CONNECT customers by rising expertise merchandise and ecosystems to ship PERFORMANCE based mostly measurable enterprise outcomes.

The fiscal fourth quarter is highlighted by the next:

• Reported for the fourth quarter 2022 file income of $85.4 million. 
• Adjusted EBITDA of $5.6 million for the fourth quarter 2022.

For the fiscal 12 months ended June 30, 2022, the corporate reported revenues of $116.4 million, a 619% improve in income over the outcomes for the previous fiscal 12 months.

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We’re excited to share TMG’s fourth quarter outcomes, that are consultant of the primary full quarter of operations for the reason that acquisition of Converge earlier this 12 months. As we glance ahead, we’re targeted on making certain that our firm is well-positioned to drive ongoing progress and worth for our shareholders. Whereas this was the primary full quarter of operations for the corporate reflecting the mixing of the Converge enterprise, we’ve made important progress on TMG’s subsequent chapter.

“The monetary outcomes show nice progress since our acquisition of Converge. We’ve activated our new built-in operational mannequin to ship buyer acquisition options that empower companies to amass, develop, and retain clients extra effectively and sustainably. We underwent a enterprise transformation which has been a catalyst for progress as we’ve altered the course of the enterprise following adjustments in administration, governance, operations, and income technique. The velocity and magnitude of change now units us up for a future enhance to income, GAAP optimistic earnings, and ongoing progress potential. I’m extraordinarily happy with the velocity by which we’ve been in a position to ship the reorganization in operations and the efforts of our administration crew throughout this era. Importantly, we’ve divested and restructured a number of legacy components of the Troika enterprise and repositioned our sources to gasoline progress.” stated Sid Toama, Chief Government Officer of TMG.

“We at the moment are in a position to make the most of a disruption in digital and offline media channels and assist companies reevaluate their buyer acquisition and retention investments. Our various efficiency enterprise mannequin may also assist shoppers mitigate their enterprise uncertainties as they proceed to attempt to develop their buyer base. We’re persevering with to assist our shoppers in dwelling providers, skilled providers, insurance coverage, and authorized providers to supply worth choices to customers by our efficiency advertising and marketing options mannequin. As an extra worth proposition, we’re well-positioned to assist our shoppers measure the influence of their buyer acquisition investments by our information and enterprise intelligence options at a time when return on funding is paramount.”

“We’ve additionally redefined our model technique and built-in our information, expertise, and buyer acquisition capabilities to create a sturdy providing for our present and potential shoppers following the acquisition of Converge. Our outlook for the now built-in Converge enterprise stays optimistic, enhancing TMG’s worth to shoppers and delivering efficiency outcomes by agile inventive, progressive expertise, and adaptive intelligence to ship monetary targets.”

“We’re keenly targeted on constructing built-in capabilities throughout the companies to optimize operational efficiencies to drive income and margin, whereas streamlining inside company capabilities. To assist this, we’ve relocated our Company headquarters to New York the place we’ve been constructing our shared providers groups. Extra focus factors embody eradicating from the enterprise any legacy preparations that aren’t in keeping with these core aims.” stated Erica Naidrich, Chief Monetary Officer of TMG. “We’re extraordinarily happy with what we’ve completed on this fourth quarter of the fiscal 12 months, whereas working to mitigate the prices and take away the inefficiencies of the Firm’s legacy enterprise mannequin, a few of which can proceed to burden efficiency till we will report a full 4 quarters of outcomes integrating Converge enterprise. We at the moment are poised and prepared directionally for the place the enterprise goes. The outcomes replicate the early phases of the methods and ways we’ve applied to chart a brand new course for the Firm.”

Monetary Outcomes for TMG

The outcomes of operations for the 12 months ended June 30, 2022, have been considerably impacted by the Converge acquisition. All monetary outcomes herein for the fiscal 12 months ended June 30, 2022, embody the outcomes of operations of the Converge corporations that are reflective of the interval March 22, 2022 (the acquisition deadline), by June 30, 2022.

Revenues for the 12 months ended June 30, 2022, elevated by roughly $100.2 million as in contrast with the prior 12 months interval, leading to a complete of roughly $116.4 million. The rise in income was primarily because of the contribution of the Converge enterprise; this accounted for roughly $90.3 million over a 101-day interval for the reason that deadline of the acquisition, and it’s consultant of 78% of the Firm’s whole income for fiscal 12 months 2022.

The $100.2 million improve in income is attributable to Managed Companies income of $51 million,   Efficiency Advertising income of $40 million, and 12 months over 12 months income improve of $8.9 million as a consequence of a rise in demand for the Firm’s branding and inventive options. 

TMG noticed a rise in demand for its buyer acquisition and efficiency options which led to a rise in income of $16 million, or 26%, for this income stream on 1 / 4 over quarter foundation. This improve was primarily powered by its dwelling enchancment {and professional} providers sectors

TMG’s Adjusted EBITDA for the fourth quarter 2022 was $5.6 million, which was primarily pushed by the rise in revenues because of the Converge acquisition as mentioned above mixed with the off-setting of  a number of one-time prices incurred on account of the continued restructuring and transformational efforts by administration. We’ve made expeditious restructuring choices with a purpose to keep away from distraction by enterprise issues that won’t contribute to the transformational restructuring of the enterprise to make sure that our firm is nicely positioned to drive ongoing progress and worth for our shareholders.

The fourth quarter contained a number of non-recurring or non-cash prices together with $3.9 million in non-cash inventory compensation expense (that are mirrored in promoting, normal and administrative bills), internet impairment fees totaling $7.7 million, restructuring and different associated fees totaling $5.6 million, inclusive of $3.3 million of inventory compensation regarding the Redeeem transaction, and loss contingencies on fairness issuance of $3.6 million.

TMG entered into revised phrases for our Collection E Most well-liked Inventory to attenuate the influence of investor dilution and make our inventory extra enticing to new traders following our file monetary outcomes. The Firm is intending on repurchasing all excellent shares of the Collection E Most well-liked Inventory which we anticipate will give traders confidence as we construct on the momentum that we’ve reported right this moment. We’re at present in a transformational stage with our major concentrate on integrating the enterprise, whereas creating efficiencies with a purpose to scale for robust income upside to ship sustainable profitability.

About Troika Media Group

TMG is a client engagement and buyer acquisition consulting and options group based mostly in New York and Los Angeles. We ship resilient model fairness, amplifying manufacturers by rising expertise to ship efficiency pushed enterprise progress. Troika’s experience is in Client Merchandise and Companies, Leisure and Media, Sports activities and Sports activities Betting, Monetary and Skilled, Training and eSports and Gaming sectors. Our shoppers embody Apple, Hulu, Riot Video games, Belvedere Vodka, Unilever, UFC, Leaf House, AT&T, Andersen Home windows, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos, IMAX, Netflix, Sony, Yahoo, and Coca-Cola. For extra info, go to www.thetmgrp.com.

Non-GAAP Monetary Measures

EBITDA and Adjusted EBITDA aren’t monetary measures below usually accepted accounting rules (GAAP). These metrics are efficiency measurement instruments utilized by our administration crew and you shouldn’t contemplate them in isolation or as an alternative choice to different monetary assertion information decided in accordance with GAAP. As well as, as a result of EBITDA and Adjusted EBITDA aren’t measures of monetary efficiency below GAAP and are inclined to various calculations, the measures introduced could differ from and might not be akin to equally titled measures utilized by different corporations.

We outline EBITDA as internet revenue (loss) earlier than (i) depreciation, amortization and impairments of property and tools, goodwill and different intangible property, (ii) curiosity expense, and  (iii) tax expense.

We outline Adjusted EBITDA as EBITDA earlier than (i) share-based compensation expense or profit, (ii) restructuring fees or credit, (iii) merger and acquisition-related prices, together with litigation bills, (vii) positive aspects or losses on gross sales or inclinations of companies and related settlements, and (iv) the influence of buy accounting changes associated to enterprise acquisitions. We consider that the exclusion of share-based compensation expense or profit permits traders to raised observe the efficiency of our enterprise with out regard to the settlement of an obligation that’s not anticipated to be made in money. We eradicate merger and acquisition-related prices as a result of the Firm doesn’t contemplate such prices to be indicative of the continued working efficiency of the Firm as they outcome from an occasion that’s of a non-recurring nature, thereby enhancing comparability.

We consider Adjusted EBITDA is an acceptable measure for evaluating the working efficiency of our enterprise and the Firm on a consolidated foundation. Adjusted EBITDA and related measures with related titles are widespread efficiency measures utilized by traders and analysts to investigate our efficiency. Internally, we use revenues and gross margin as crucial indicators of our enterprise efficiency, and consider administration’s effectiveness with particular reference to those indicators. Adjusted EBITDA must be used as a complement to and never an alternative choice to working revenue (loss), internet revenue (loss), money flows from working actions, and different measures of efficiency and/or liquidity introduced in accordance with GAAP. For a reconciliation of internet revenue (loss) to Adjusted EBITDA, please see web page 6 of this launch.

Ahead-Wanting Statements
This press launch could include statements that represent forward-looking statements throughout the which means of the Personal Securities Litigation Reform Act of 1995. These forward-looking statements embody, with out limitation, statements about future progress and progress charges and different info concerning future efficiency and methods and seem all through this press launch. These forward-looking statements embody, with out limitation, statements about future progress and progress charges and different info concerning future efficiency and methods and seem all through this press launch. Traders are cautioned that any such forward-looking statements aren’t ensures of future efficiency or outcomes and contain dangers and uncertainties, and that precise outcomes, developments or occasions could differ materially from these within the forward-looking statements on account of numerous components, together with monetary neighborhood perceptions of the Firm and its enterprise, operations, monetary situation and the industries by which it operates, the influence of the COVID-19 pandemic and the components described within the Firm’s filings with the Securities and Alternate Fee, together with the sections titled “Danger Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” within the Firm’s Annual Report on Kind 10-Okay within the Firm’s Annual Report on Kind 10-Okay. The Firm disclaims any obligation to replace any forward-looking statements contained herein. Readers are cautioned to not place undue reliance on these forward-looking statements, which replicate administration’s opinions solely as of the date hereof.

Investor Relations Contact:

Sid Toama
President and Chief Government Officer
Troika Media Group, Inc.
(323) 297-8100

The next is an outline of the changes to internet revenue (loss) in arriving at adjusted EBITDA as described on this earnings launch:

• Curiosity Expense.
• Earnings Tax Expense.
• Depreciation and amortization. This adjustment eliminates depreciation and amortization of property and tools and intangible property in all durations.
• Impairment and different (positive aspects) losses, internet. This adjustment eliminates non-cash impairment fees and the influence of positive aspects or losses from the disposition of property or companies in all durations.
• Enterprise acquisition prices. This adjustment eliminates prices associated to acquisitions in all durations.
• Restructuring fees. This adjustment eliminates prices associated to termination advantages offered to workers as a part of the Firm’s full-time workforce reductions.
• Loss Contingency on Fairness Issuance.
• Share-based compensation. This adjustment eliminates the compensation expense regarding restricted inventory models and inventory choices granted below the Troika Media Group Inventory Plan.
• Buy accounting changes. This adjustment eliminates the influence of varied buy accounting changes associated to enterprise acquisitions, primarily favorable / unfavorable lease agreements of the acquiree.

SOURCE Troika Media Group