Rentrak Reports Fiscal 2009 Second Quarter Financial Results

Rentrak Reports Fiscal 2009 Second Quarter Financial Results

- TV Essentials(TM) on Track for Commercial Launch in First Calendar Quarter of 2009 -

- Rentrak's Solid Balance Sheet and Cash Flow Generation Provide Flexibility and Stability in an Uncertain Economy -

PORTLAND, Ore., Nov. 4 /PRNewswire-FirstCall/ -- Rentrak Corp. (NASDAQ:RENT) today announced financial results for its fiscal second quarter ended September 30, 2008.

Consolidated revenues grew 7 percent to $24.3 million in the second quarter of fiscal 2009 from $22.8 million in the second quarter of fiscal 2008.

-- Revenues in the company's Advanced Media Information (AMI) segment increased 23 percent to $3.1 million from $2.5 million in the second quarter of fiscal 2008. The increase primarily reflects incremental revenues generated from new and existing customers of the company's Essentials Suite(TM) of media measurement services. The AMI segment represented approximately 13 percent of consolidated revenues and contributed approximately 30 percent of consolidated gross margin dollars in the second quarter of fiscal 2009.

-- Revenues in the company's Pay-Per-Transaction(R) (PPT) segment grew 5 percent to $21.2 million, from $20.3 million in last year's comparable quarter, primarily reflecting higher volumes of units shipped during the quarter.

Selling and administrative expenses were $6.7 million, or 28 percent of revenues, in the second quarter of fiscal 2009, compared with $6.3 million, or 28 percent of revenues, during last year's fiscal second quarter. Operating income was $1.3 million for the second quarter of fiscal 2009, versus $1.6 million in the same period last year.

Net income totaled $842,000, or $0.08 per diluted share, in the second quarter of fiscal 2009, compared with $1.1 million, or $0.10 per diluted share, in last year's comparable period.

Rentrak's cash, cash equivalents and marketable securities balance grew to $36.8 million at September 30, 2008, from $31.8 million at March 31, 2008. Through the first six months of fiscal 2008, the company generated $6.1 million in cash from operating activities, compared with $2.6 million in cash from operating activities in the prior-year six month period.

Recent Operating Highlights

-- TV Essentials, the company's revolutionary linear TV measurement solution, on-target for first calendar quarter 2009 commercial launch. Industry feedback on TV Essentials is overwhelmingly positive;

-- Selected by Virgin Media as content measurement partner for its first video on demand (VOD) dynamic advertising trial. Provides major positive implications for U.S. VOD business and validates unique ability to deliver accurate, census-level measurement data across all systems and technologies;

-- Issued the State of VOD report, providing valuable insight into the fast growing, dynamic On Demand Television market.

"We are proud that Rentrak's business continues to show stability in this very difficult environment. Our second quarter results were solid, our balance sheet remains very strong, and we are continuing to generate the cash flow necessary to invest in and grow Rentrak's future," said Rentrak Chairman and Chief Executive Officer Paul Rosenbaum. "There are many exciting things happening at Rentrak every single day, especially as we move closer to the commercial launch of TV Essentials. We are one-hundred percent on track with this important initiative, which will have a substantial impact on our industry by significantly improving the accuracy of measuring television viewing habits."

Conference Call

Rentrak has scheduled a conference call for 2:00 p.m. (PT) November 4, 2008 to discuss the company's second quarter financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 800-638-5495 from the U.S. or Canada, or 617-614-3946 from international locations, passcode 15769138. This call is being webcast and can be accessed at Rentrak's web site at http://www.rentrak.com/ where it will be archived through November 4, 2009. An audio replay of the conference call is available through midnight November 11 by dialing 888-286-8010 from the U.S. or Canada, or 617-801-6888 from international locations, passcode 51574927.

About Rentrak Corporation

Rentrak Corporation, based in Portland, Oregon, is an information management company serving clients in the media, entertainment, retail, advertising and manufacturing industries. The company's near-term focus centers on its Entertainment Essentials(TM) suite of services that is redefining measurement in the digital media era. Available by subscription, each Entertainment Essentials service provides customers with near-real-time, actionable insight into performance of content distributed over a wide variety of modern media technologies allowing executives to analyze detailed industry- wide and title-specific data to make decisions that enhance the bottom line and provide competitive advantage. For further information, please visit Rentrak's corporate Web site at http://www.rentrak.com/.

Safe Harbor Statement

When used in this discussion, the words "anticipates," "expects," "intends" and similar expressions are intended to identify forward-looking statements. Such statements relate to, among other things, the revenues and results of operations for the company's PPT(R) and information services segments, the company's development efforts pertaining to new media measurement services and the timing of the commercial launch of those services; and anticipated customer acceptance of the company's new media measurement services; and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could affect Rentrak's financial results include customer demand for movies in various media formats subject to company guarantees, the company's ability to attract new revenue-sharing customers and retain existing customers, the company's success in maintaining its relationships with studios and other product suppliers, the company's ability to successfully develop and market new services to create new revenue streams, and Rentrak's customers continuing to comply with the terms of their agreements. Additional factors that could affect Rentrak's financial results are described in Rentrak's March 31, 2008 annual report on Form 10-K and subsequent quarterly reports filed with the Securities and Exchange Commission. Results of operations in any past period should not be considered indicative of the results to be expected for future periods.

    Contact:    Investors    PondelWilkinson Inc.    Laurie Berman    310-279-5962    lberman@pondel.com                          (Financial Tables Follow)                                        Rentrak Corporation and Subsidiaries                                     Condensed Consolidated Balance Sheets                                                    (Unaudited)                                     (In thousands, except per share amounts)                                                  September 30,      March 31,                                                      2008             2008    Assets   Current Assets:       Cash and cash equivalents                     $6,887          $26,862       Marketable securities                         29,878            4,986       Accounts receivable, net of        allowances for doubtful accounts        of $589 and $572                             16,998           15,032       Note receivable                                  448              396       Advances to program suppliers,        net of program supplier reserves of        $22 and $17                                      97               95       Taxes receivable and prepaid taxes             1,008            1,455       Deferred income tax assets                       352              253       Other current assets                             953            1,296           Total Current Assets                      56,621           50,375    Property and equipment, net of    accumulated depreciation of    $8,523 and $7,731                                 6,275            6,145   Other assets                                         584              629           Total Assets                             $63,480          $57,149    Liabilities and Stockholders' Equity   Current Liabilities:       Accounts payable                             $10,359           $6,768       Accrued liabilities                              460              671       Deferred rent, current portion                    90               90       Accrued compensation                             992              930       Deferred revenue                               1,621              873           Total Current Liabilities                 13,522            9,332    Deferred rent, long-term portion                     959              989   Deferred income tax liabilities                      426              226   Taxes payable, long-term                           2,012            1,965   Notes payable                                        748              965           Total Liabilities                         17,667           13,477    Commitments and Contingencies                        -                -    Stockholders' Equity:       Preferred stock, $0.001 par        value; 10,000 shares authorized;        none issued                                     -                -       Common stock, $0.001 par value;        30,000 shares authorized; shares        issued and outstanding:        10,621 and 10,605                                11               11       Capital in excess of par value                47,584           47,189       Accumulated other comprehensive income            38              170       Accumulated deficit                           (1,820)          (3,698)          Total Stockholders' Equity                 45,813           43,672          Total Liabilities and           Stockholders' Equity                     $63,480          $57,149                                        Rentrak Corporation and Subsidiaries                                   Condensed Consolidated Income Statements                                                  (Unaudited)                                   (In thousands, except per share amounts)                                        For the                 For the                                  Three Months Ended       Six Months Ended                                     September 30,           September 30,                                  2008         2007        2008       2007     Revenue                      $24,327      $22,777     $49,680    $47,015   Cost of sales                 16,351       14,926      33,163     30,890   Gross margin                   7,976        7,851      16,517     16,125    Selling and administrative     6,697        6,278      13,557     12,717   Income from operations         1,279        1,573       2,960      3,408    Other income (expense):       Interest income              206          410         376        817       Interest expense             -             (2)         (2)        (4)                                    206          408         374        813    Income before income taxes     1,485        1,981       3,334      4,221   Provision for income taxes       643          871       1,456      1,863   Net income                      $842       $1,110      $1,878     $2,358    Basic net income per share     $0.08        $0.10       $0.18      $0.22    Diluted net income per share   $0.08        $0.10       $0.17      $0.21    Shares used in per share    calculations:     Basic                       10,614       10,759      10,611     10,743     Diluted                     11,166       11,260      11,153     11,271  

First Call Analyst:
FCMN Contact:

Source: Rentrak Corporation

CONTACT: Investors, Laurie Berman of PondelWilkinson Inc.,
+1-310-279-5962, lberman@pondel.com, for Rentrak Corporation

Web site: http://www.rentrak.com/

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Profile: International Entertainment