Juniper Content Corporation (OTCBB: JNPC; "Juniper Content") today announced its financial results for the quarter ended March 31, 2008. Juniper Content’s net sales for the first quarter of 2008 were $577,754, as compared to net sales of $621,677 (on a Non-GAAP combined basis) for the quarter ended March 31, 2007, representing a decrease of $43,923, or 7%. The Company reported a net loss of $2.5 million, or $(0.44) per share, for the quarter ended March 31, 2008, as compared to a net loss of $1.5 million (on a Non-GAAP combined basis) for the quarter ended March 31, 2007.
As of February 29, 2008, the most recently available data, Sorpresa!, the Company’s 24/7 Spanish language children’s television network and digital community, had approximately 1.1 million subscribers, a subscriber base gain of 33% from February 2007. Sorpresa! is now available in 22 out of the top 25 Hispanic DMAs with its March 2008 launch on Comcast’s Fresno system.
“We are committed to making Sorpresa! the leading brand for Hispanic kids and families and made important strides to accelerate the expansion of our subscriber base, our online presence, and our advertising relationships,” commented Stuart B. Rekant, Chairman and CEO of Juniper Content Corporation. “During the first quarter of 2008, Sorpresa! continued to execute on its growth plan, completing a successful refresh of the brand, premiering an exciting new programming line-up, and further developing its online platform, Sorpresatv.com. Subscriber growth remains steady, with advertising sales activity gaining momentum since we surpassed the 1 million subscriber mark.”
First quarter 2008 Television Network sales increased 24% (on a Non-GAAP combined basis) from the first quarter of 2007, equaling $339,492, or 59% of total sales. Within this total, subscriber revenue increased 131%, reflecting the increase in the average number of subscribers over the prior year’s first quarter, and a 2.5% growth in the affiliate fee rate. Sorpresa! experienced growth in existing systems, and added five new local cable systems in the quarter, including Liberty Cablevision of Puerto Rico. First quarter 2008 Network Operations revenue on a Non-GAAP combined basis decreased approximately 32% from the first quarter of 2007 as the number and scope of projects and services were lower than last year’s level. In the first quarters of 2008 and 2007, the Company reported minimal production revenue.
The US Hispanic population has passed the 45 million mark, and is the youngest and fastest growing population segment. “Sorpresa! offers advertisers unique access to the dynamic Hispanic youth market,” Mr. Rekant continued. “Earlier this month, we expanded our digital community’s interactive capability, broadening our cross-platform audience reach and potential for online revenue generation. We also launched a grassroots outreach program with Major League Soccer (MLS) in an innovative youth soccer campaign that promotes active and healthy lifestyles.”
Non-GAAP Measures
Since Juniper Content merged with privately held Firestone Communications, Inc. (“Firestone"), Juniper Content’s historical results for the three months ended March 31, 2007 include the results of operations of Firestone for the period preceding the January 19, 2007 acquisition date. As such, the 2008 reported results are not comparable with Firestone’s historical results. To provide a basis for comparison, in addition to reported results for the three months ended March 31, 2008, Juniper Content is presenting unaudited Non-GAAP combined results for 2008 and 2007 as if the merger with Firestone had been consummated as of January 1, 2007. Non-GAAP combined information is the arithmetic combination of the historical results of Firestone and Juniper Content for the three months ended March 31, 2007.
About Juniper Content Corporation
Juniper Content is a media and entertainment company focused on branded content services in high growth markets operating across multiple distribution channels. The Company owns and operates Sorpresa!, the nation's first Hispanic children's television network and digital community. The Company plans to build on Sorpresa!'s status in Hispanic Children's programming to secure a significant position in the expanding U.S. Hispanic media marketplace and to acquire niche content providers to allow the Company to participate in the accelerating growth of digital media in the general media marketplace.
Sorpresa! is offered on Cablevision, Charter, Comcast, NCTC, Cox, Time Warner, Verizon FiOs and in Puerto Rico on Liberty Cablevision, Choice Cable TV and OneLink. Sorpresa! content is also available through third party multiplatforms, including: MobiTV, the provider of Spanish language video services to Alltel Wireless, AT&T and Sprint, and Brightcove, the exclusive broadband video player on Sorpresatv.com.
Juniper Content Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and future performance of Juniper Content Corporation. These statements are based on management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of Juniper Content’s business. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Juniper Content Securities and Exchange Commission filings. For a description of certain factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release, refer to documents that Juniper Content files from time to time with the Securities and Exchange Commission. Juniper Content is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
| Juniper Content Corporation | ||||||||||
| Balance Sheet | ||||||||||
| March 31, | December 31, | |||||||||
| 2008 | 2007 | |||||||||
| ASSETS | (Unaudited) | |||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 5,106,504 | $ | 5,251,163 | ||||||
| Accounts receivable, net | 284,896 | 232,621 | ||||||||
| Programming rights | 199,987 | 153,392 | ||||||||
| Prepaid expenses and other current assets | 191,511 | 150,348 | ||||||||
| Total current assets | 5,782,898 | 5,787,524 | ||||||||
| Programming assets, net | 17,810 | 19,591 | ||||||||
| Property and equipment, net | 2,594,822 | 2,715,515 | ||||||||
| Restricted cash | 94,524 | 94,092 | ||||||||
| Intangible assets, net | 9,496,130 | 10,160,342 | ||||||||
| Goodwill | 157,166 | 157,166 | ||||||||
| Other assets | 57,495 | 57,495 | ||||||||
| Programming rights long term | 264,770 | 125,644 | ||||||||
| Total assets | $ | 18,465,615 | $ | 19,117,369 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued expenses | $ | 1,196,931 | $ | 1,190,158 | ||||||
| Deferred revenue | 47,341 | 44,847 | ||||||||
| Programming obligations | 327,990 | 177,642 | ||||||||
| Income taxes payable | - | 38,803 | ||||||||
| Total current liabilities | 1,572,262 | 1,451,450 | ||||||||
| Long term liabilities: | ||||||||||
| Long term debt, related party, net of debt discount of $356,092 | 2,665,075 | 2,642,585 | ||||||||
| - | 37,125 | |||||||||
| Deferred rent | 13,141 | 9,199 | ||||||||
| Deferred tax liability, net | 578,274 | 947,343 | ||||||||
| Total liabilities | 4,828,752 | 5,087,702 | ||||||||
| Commitments | ||||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity: | ||||||||||
| Preferred stock, par value $.0001 per share, 2,000 shares authorized, 0 shares issued | ||||||||||
| - | - | |||||||||
| Series A Preferred stock, par value $.0001 per share, 3,000 shares authorized, 668.75 shares issued | ||||||||||
| - | - | |||||||||
| Common stock, par value $.0001 per share, 35,000,000 shares authorized, 5,618,127 shares issued and outstanding | ||||||||||
| 562 | 562 | |||||||||
| Additional paid-in-capital | 22,237,910 | 20,174,023 | ||||||||
| Accumulated deficit | (8,601,609) | (6,144,918) | ||||||||
| Total stockholders' equity | 13,636,863 | 14,029,667 | ||||||||
| Total liabilities and stockholders' equity | $ | 18,465,615 | $ | 19,117,369 | ||||||
| Juniper Content Corporation | |||||||||||||||||||
| Statements of Operations | |||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | Predecessor For the Nineteen Day Period Ended | |||||||||||||||||
| March 31, 2008 | March 31, 2007 | January 19, 2007 | |||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||
| Revenues | $ | 577,754 | $ | 504,985 | $ | 116,692 | |||||||||||||
| Expenses: | |||||||||||||||||||
| Operating cost of services | 873,818 | 512,294 | 105,768 | ||||||||||||||||
| Selling, general and administrative | 1,668,975 | 1,163,554 | 93,091 | ||||||||||||||||
| Advertising | 66,134 | 46,250 | - | ||||||||||||||||
| Depreciation and amortization | 759,223 | 472,461 | 25,845 | ||||||||||||||||
| Loss from operations | (2,790,396 | ) | (1,689,574 | ) | (108,012 | ) | |||||||||||||
| Other income (expenses): | |||||||||||||||||||
| Other income, net | - | 10,478 | 82,621 | ||||||||||||||||
| Interest income | 24,609 | 122,850 | - | ||||||||||||||||
| Interest expense | (59,974 | ) | (30,463 | ) | (21,946 | ) | |||||||||||||
| Total other income (expense) | (35,365 | ) | 102,865 | 60,675 | |||||||||||||||
| Loss before provision (benefit) for income taxes | (2,825,761 | ) | (1,586,709 | ) | (47,337 | ) | |||||||||||||
| Benefit for income taxes | (369,069 | ) | (134,736 | ) | - | ||||||||||||||
| Net loss | $ | (2,456,692 | ) | $ | (1,451,973 | ) | $ | (47,337 | ) | ||||||||||


