Cineverse reports Q4 EPS ($1.10), may not compare to consensus (28c)

Reports Q4 revenue $9.9M, consensus $10.75M. During Q4, the company recorded a $14.0M non-cash, non-recurring impairment to Goodwill. CEO Chris McGurk stated, “Our focus this year has been a concerted drive toward sustainable profitability for the company. Our full year and fourth quarter results reflect the results of those efforts, with vastly improved operating margins and significantly streamlined cost structure generating positive and growing adjusted EBITDA and accelerating a rapid trend toward positive annual net income. Excluding the key non-cash Goodwill Impairment and non-operating Metaverse investment loss, we reduced our net loss by $4.8M or by 58% to $3.4M for the full year and were virtually break even on net income in this most recent reported quarter. We generated adjusted EBITDA of $4.4M, an increase of $4.3M, despite losing significant revenues from the runoff of our legacy Digital Cinema equipment business and lapping the success last year of the horror phenomenon Terrifier 2. Our direct operating margins improved significantly, to 61% versus 47% in the prior year, reflecting major SG&A cost savings from our Cineverse Services India organization, a unique competitive advantage for us where now we operate with more than half of our total workforce.”