Juniper Content Corporation (OTCBB: JNPC; "Juniper Content") today announced its financial results for the year ended December 31, 2007. The Company’s net sales in 2007 were $2.22 million, as compared to net sales of $2.40 million (on a Non-GAAP combined basis) for the year ended December 31, 2006, representing a decrease of $180,000, or 8%. Juniper Content reported a net loss of $6.32 million, or $(1.14) per share, for the year ended December 31, 2007, as compared to a net loss of $2.43 million (on a Non-GAAP combined basis) for the year ended December 31, 2006.
Sorpresa!, the Company’s 24/7 Spanish language children’s television network and digital community, grew its average subscriber base by 42% in 2007, leaving the year with over 987,000 subscribers, representing a 38% year-over-year increase. Sorpresa! is now available in 22 out of the top 25 Hispanic DMAs with its launch this month on Comcast’s Fresno system. The Company’s television network sales increased by 65% (on a Non-GAAP combined basis) from 2006, primarily as a result of its cable affiliate fee revenue, while network operations center revenue decreased by 30% (on a Non-GAAP combined basis) and production services revenue decreased by $63,000 (on a Non-GAAP combined basis) in 2007 as the number and scope of projects and services were lower than last year’s level.
“Our growth strategy is well underway as our recent accomplishments suggest. Sorpresa! has surpassed its one million subscriber milestone, significantly advancing our efforts to win the attention of large national advertisers and gain greater access to Hispanic ad spending, which continues to outpace the general market,” commented Stuart B. Rekant, Juniper Content’s Chairman and CEO, and CEO of Sorpresa!. “Our goal is to accelerate the level of subscriber growth in the current year and continue to extend our advertising relationships as we grow Sorpresa!’s revenue base and brand awareness. Recently, Wal-Mart and FOX Searchlight have joined Chuck E. Cheese among our national advertisers.”
Mr. Rekant continued, “We are dedicated to making Sorpresa! the leading brand for Hispanic kids and families. We made significant progress in 2007, building our management team, enhancing our programming efforts, increasing our cable distribution and ad sales capabilities, and furthering the awareness of the Sorpresa! brand. Late last year we inaugurated Sorpresa!’s new tagline – “El Mundo que Imaginas” – “The World You Imagine” – and launched its brand refresh in February, both on-air and online, timed to correspond to premieres of a number of new programs. We also added to our capital base, completing a $2.2 million private placement this month, at substantially above our current market value, providing additional capital for our working capital needs, and we continue to explore potential areas of additional financing. In addition, we are looking at ways to leverage Juniper Content’s operations to expand our content relationships and to acquire niche content providers that will broaden Juniper Content’s participation in the digital media space.”
Non-GAAP Measures
Since Juniper Content merged with privately held Firestone Communications, Inc. (“Firestone"), Juniper Content’s historical results for the twelve months ended December 31, 2007 include the results of operations of Firestone for the period from the January 20, 2007 acquisition date through December 31, 2007. As such, the 2007 reported results are not comparable with Firestone’s historical results. To provide a basis for comparison, in addition to reported results for the twelve months ended December 31, 2007, Juniper Content is presenting unaudited Non-GAAP combined results for 2007 and 2006 as if the Firestone merger had been consummated as of January 1, 2006. Non-GAAP combined information is the arithmetic combination of the historical results of Firestone and Juniper Content for the twelve months ended December 31, 2007 and 2006.
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 to http://www.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.
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Juniper Content Corporation |
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Balance Sheet |
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| December 31, | ||||||
| 2007 | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 5,251,163 | ||||
| Accounts receivable, net | 232,621 | |||||
| Programming rights | 153,392 | |||||
| Prepaid expenses and other current assets | 150,348 | |||||
| Total current assets | 5,787,524 | |||||
| Programming assets, net | 19,591 | |||||
| Property and equipment, net | 2,715,515 | |||||
| Restricted cash | 94,092 | |||||
| Intangible assets, net | 10,160,342 | |||||
| Goodwill | 157,166 | |||||
| Other assets | 57,495 | |||||
| Programming rights long term | 125,644 | |||||
| Total assets | $ | 19,117,369 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued expenses | $ | 1,190,158 | ||||
| Deferred revenue | 44,847 | |||||
| Programming obligations | 177,642 | |||||
| Income taxes payable | 38,803 | |||||
| Total current liabilities | 1,451,450 | |||||
| Long term liabilities: | ||||||
| Long term debt, related party, net of debt discount of $356,092 | 2,642,585 | |||||
| Programming obligations | 37,125 | |||||
| Deferred rent | 9,199 | |||||
| Deferred tax liability, net | 947,343 | |||||
| Total liabilities | 5,087,702 | |||||
| Commitments | ||||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Preferred stock, par value $.0001 per share, | ||||||
| 5,000 shares authorized, 0 shares issued | - | |||||
| Common stock, par value $.0001 per share, | ||||||
| 35,000,000 shares authorized, 5,618,127 shares | ||||||
| issued and outstanding | 562 | |||||
| Common stock, Class B, par value $.0001 per share, | ||||||
| 5,000,000 shares authorized, 0 shares issued | ||||||
| and outstanding | - | |||||
| Additional paid-in-capital | 20,174,023 | |||||
| Accumulated deficit | (6,144,918 | ) | ||||
| Total stockholders' equity | 14,029,667 | |||||
| Total liabilities and stockholders' equity | $ | 19,117,369 | ||||
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Juniper Content Corporation |
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Statements of Operations |
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| For the Year Ended | For the Year Ended | ||||||||
| December 31, 2007 | December 31, 2006 | ||||||||
| Revenues | $ | 2,224,803 | $ | - | |||||
| Expenses | |||||||||
| Operating | 2,902,840 | - | |||||||
| Selling, general and administrative | 5,655,508 | 469,269 | |||||||
| Advertising | 443,694 | - | |||||||
| Depreciation and amortization | 2,900,115 | - | |||||||
| Loss from operations | (9,677,354 | ) | (469,269 | ) | |||||
| Other income (expenses): | |||||||||
| Other income, net | 1,782 | - | |||||||
| Rental income | - | - | |||||||
| Forgiveness of debt | - | - | |||||||
| Interest income | 369,694 | 719,539 | |||||||
| Interest expense | (228,408 | ) | - | ||||||
| Total other income (expense) | 143,068 | 719,539 | |||||||
| Income (loss) before provision for income taxes | (9,534,286 | ) | 250,270 | ||||||
| Provision (benefit) for income taxes | (3,209,938 | ) | 86,000 | ||||||
| Net income (loss) | $ | (6,324,348 | ) | $ | 164,270 | ||||
| Accretion of Trust Fund relating to Class B | |||||||||
| common stock subject to possible conversion | - | (140,963 | ) | ||||||
| Net income (loss) attributable to other Class B stockholders | |||||||||
| and common stockholders | $ | (6,324,348 | ) | $ | 23,307 | ||||
| Class B common shares outstanding | |||||||||
| subject to possible conversion | - | 574,713 | |||||||
| Net income per Class B common share subject to possible | |||||||||
| conversion, basic and diluted | - | $ | 0.25 | ||||||
| Weighted average number of shares outstanding, | |||||||||
| basic and diluted | 5,563,920 | 2,848,387 | |||||||
| Net (loss) income per share, basic and diluted | $ | (1.14 | ) | $ | 0.01 | ||||
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Juniper Content Corporation |
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Predecessor Statements of Operations |
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| Predecessor | |||||||||
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For the Nineteen Day Period Ended |
Predecessor For the Year Ended |
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| January 19, 2007 | December 31, 2006 | ||||||||
| Revenues | $ | 116,692 | $ | 2,399,267 | |||||
| Expenses: | |||||||||
| Operating | 105,768 | 2,423,507 | |||||||
| Selling, general and administrative | 93,091 | 1,934,115 | |||||||
| Advertising | - | 22,340 | |||||||
| Depreciation and amortization | 25,845 | 505,331 | |||||||
| Loss from operations | (108,012 | ) | (2,486,026 | ) | |||||
| Other income (expenses): | |||||||||
| Other income, net | 82,621 | 119,596 | |||||||
| Rental income | - | 86,150 | |||||||
| Forgiveness of debt | - | 92,013 | |||||||
| Interest income | - | - | |||||||
| Interest expense | |||||||||


