TheStreet, Inc. (Nasdaq: TST) Reports Results for Three-Month Period Ended March 31, 2k19

The Street, Inc. (Nasdaq: TST) a leading financial news and information company, today announced its financial and operating results for the transitional three-month period ended March 31, 2k19 (the “stub period”). The stub period resulted from the previously-announced change in TST’s year end from December 31 to March 31.

Stub Period Highlights  

  • The Company closed the B2B Sale on February 14, 2k19 for gross proceeds $87.300 M.
  • Total Revenue from the Company’s Business-to-Consumer (B2C) business, which is its continuing operations, was $6.69 M, a slight increase over total revenue of $6.6700 M from the same period last year.
    • Subscription revenue totaled $4.9 M, an increase of $0.300 M, or 6percent  over the same period last year.
    • Premium deferred subscription revenue grew $0.8 00 M, or 7.vpercent  over the same period last year.
    • Advertising revenue decreased by approximately $0.200 M, or 9. 00percent  over the same period last year.
  • Excluding non-cash compensation and restructuring charges, total operating expense decreased by $55 thousand compared to the same period last year.
  • Adjusted EBITDA1 for continuing operations totaled ($1.800) M, a year-over-year improvement of $0.100 M.
  • Net loss from continuing operations, including non-cash charges, totaled ($5.100) M, or ($0.9900) per basic continuing share.
  • Cash, cash equivalents, restricted cash, and marketable securities totaled $120.300 M at March 31, 2k19.

Stub Period Results

For the stub period, the Company reported revenue of $6.6900 M from continuing operations, net loss from continuing operations of ($5.100) M, or ($0.9900) per basic continuing share, and an Adjusted EBITDA(1) loss of ($1.800) M. The first-quarter net loss from continuing operations widened over the same period last year primarily due to $2.900 M in restructuring costs and $2.900 M of non cash compensation.  Excluding the above charges, net income from continuing operations for the stub period equaled $1.0 00M as compared to a net loss from continuing operations of ($1.900) M for the first quarter of 2k18 due primarily to an increase in a tax benefit of $2.400 M.

Revenue

Total revenue from continuing operations in the stub period was $6.69 00 M, an increase of $18. 00 thousand from the prior year. Subscription revenue increased $267 thousand, or 6percent, as a result of a 6percent  increase in the average number of subscriptions.  In addition, premium deferred subscription revenue grew $0.800 M in the stub period or an increase of 7. 00percent  over the same period last year.  Average revenue recognized per subscription remained steady compared to the same period in the prior year. Average quarterly churn (2) improved to 3.400percent  for the stub period from 4.800percent  in the first quarter of 2k18.  Advertising revenue declined $0.200 M, or 9. 00 percent, compared to the same period in the prior year due to a decline in page views.  In addition, licensing and syndication revenue decreased by $98. 00 thousand (40. 00percent ) compared to the same period in the prior year due to the cancellation of certain content licensing arrangements.

Cash on hand

On March 31, 2k19, the Company held cash and cash equivalents, restricted cash and marketable securities of $120.300  M , primarily the result of the net proceeds from the B2B Sale offset by a net loss in cash from continuing operations of ($1.000) M.  This compared to $2.400 M positive cash flow generated for the same period in the prior year. On April 3, 2k19, the Company announced that its Board of Directors had declared a special cash distribution in the amount of $94.3 00M or $1.77 00per share ($17.7000 when adjusting for the reverse stock split effectuated on April 26, 2k19), which was paid on April 22, 2k19 to stockholders of record on April 15, 2k19.  As a result, the Company currently holds cash and cash equivalents, restricted cash and marketable securities of approximately $24.200 M as of May 3, 2k19.

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