SILVER SPRING, Md., March 14, 2017 /PRNewswire/ -- RLJ Entertainment Inc., ("RLJ Entertainment," "RLJE" or "the Company") (NASDAQ: RLJE), today reported certain preliminary and estimated unaudited financial information for the fiscal year ended December 31, 2016.  Investors are cautioned that these estimates are preliminary in nature and based only upon information available to the Company as of the date of this release.  The Company has not yet completed its financial closing procedures for the fiscal year ended December 31, 2016. The Company's independent registered public accounting firm has not audited or reviewed and does not express an opinion with respect to this data. Accordingly, such preliminary financial and operating data may change, and such changes may be material. Therefore, investors are cautioned not to place undue reliance on these estimates and the amounts presented below.

Digital Channels Subscriber Growth

• Including Acorn TV and UMC, as of December 31, 2016, RLJE exceeded 450,000 in paying subscribers compared to 200,000 as of December 31, 2015
• Also including Acorn TV and UMC, as of February 28, 2017, paying subscribers exceeded 500,000

Full Year 2016 Preliminary Results

The Company estimates that for the year ended December 31, 2016:

• Total revenues are expected to be $79.0 to $80.0 million
• Net loss, which includes discontinued operations, is expected to be $21.7 to $22.1 million
• Adjusted EBITDA is expected to be $12.8 to $13.0 million

Fourth Quarter 2016 Preliminary Results

The Company estimates that for the fourth quarter ended December 31, 2016:

• Total revenues are expected to be $27.1 to $28.1 million
• Net loss, which includes discontinued operations, is expected to be $4.1 to $4.5 million
• Adjusted EBITDA is expected to be $10.8 to $11.0 million

Miguel Penella, Chief Executive Officer of RLJ Entertainment, stated, "Half a million subscribers is a major milestone for us and we are very excited by Acorn TV and UMC's continued growth prospects.  As we expand our original and exclusive content and enhance our subscribers' experience through improved apps and new platforms, we are confident that audiences will increasingly see Acorn TV as the primary destination for British and International mysteries and dramas, and that Urban and African American viewers will see UMC as a must-have subscription."

Conference Call Information.  RLJE will release its fourth quarter and year end 2016 financial results before the market opens on Thursday, March 23, 2017. In conjunction with the release, RLJE will hold a conference call on Thursday, March 23, 2017, at 11:30 a.m. ET to discuss its results for the fourth quarter and year ended December 31, 2016.  To participate in the live conference call, interested parties may dial +1.844.348.1685 (+1.213.358.0890 outside the U.S. and Canada) and provide conference ID number 85261255, or via webcast at RLJEntertainment.com.  The webcast will be archived in the investors section of RLJE's website.

About RLJ Entertainment, Inc.

RLJ Entertainment, Inc. (NASDAQ: RLJE) is an entertainment content distribution company in primarily North America, the United Kingdom, and Australia. RLJ Entertainment's titles are distributed in multiple formats including broadcast television (including satellite and cable), theatrical and non-theatrical, DVD, Blu-Ray, digital download, and digital streaming.

With its popular OTT branded channels, Acorn TV (British TV) and UMC (Urban Movie Channel), RLJ Entertainment targets distinct, premium audiences and Urban niche audiences. The company grows its proprietary digital channels through development, acquisition, and distribution of exclusive rights of program franchises and feature film content.

Through Acorn Media Enterprises, its UK development arm, RLJE owns all rights to the hit UK mystery series Foyle's War and is developing new programs. RLJE owns 64% of Agatha Christie Limited, which manages the intellectual property and publishing rights to some of the greatest works of mystery fiction, including stories of the iconic sleuths Miss Marple and Poirot.

For more information, please visit RLJEntertainment.com, Acorn.tv, and UMC.tv.

About Non-GAAP Financial Measures

We present Adjusted EBITDA in this press release to provide a supplemental measure of our operating performance. We define Adjusted EBITDA as earnings before interest expense, income tax, depreciation, amortization (including content impairments and step up amortization in connection with fair value purchase accounting), loss on extinguishment of debt, goodwill impairments, non-recurring expenses including restructuring charges, severance costs and transaction fees, costs to modify debt, change in fair value of stock, warrants and other derivatives, stock-based compensation, basis-difference amortization in equity earnings of affiliate, and the greater of wholly owned subsidiary accounted for using the equity method of accounting or the amount of dividends or distribution actually paid in cash.

We believe that Adjusted EBITDA is a useful performance measure used by us to facilitate a comparison of our operating performance and earnings on a consistent basis from period-to-period and to provide for a more complete understanding of factors and trends affecting our business than measures under generally accepted accounting principles in the United States of America (GAAP) can provide alone. Our board and management also use Adjusted EBITDA as one of the primary methods for planning and forecasting overall expected performance and for evaluating on a quarterly and annual basis actual results against such expectations, and as a performance evaluation metric in determining achievement of certain compensation programs and plans for Company management. In addition, the financial covenants in our senior secured credit facility are based on Adjusted EBITDA, as presented in this press release, subject to certain other addbacks permitted by our senior secured credit facility. This non-GAAP financial measure may have limitations as an analytical tool, and this measure should not be considered in isolation as a substitute for analysis of our results as reported under GAAP.

The following table is a reconciliation of our expected net loss to our expected Adjusted EBITDA for 2016 (unaudited and subject to change):

Forward Looking Statements

This press release may include "forward looking statements" within the meaning of the "safe harbor" provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Other than statements of historical fact, all statements made in this press release are forward-looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future results and condition.  In some cases, forward-looking statements may be identified by words such as "will," "should," "could," "may," "might," "expect," "plan," "possible," "potential," "predict," "anticipate," "believe," "estimate," "continue," "future," "intend," "project" or similar words. 

Forward-looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions.  Factors that might cause such differences include, but are not limited to:

• Our financial performance, including our ability to achieve improved results from operations, and Adjusted EBITDA;
• The effects of limited cash liquidity on operational performance;
• Our obligations under the credit agreement;
• Our ability to satisfy financial ratios;
• Our ability to generate sufficient cash flows from operating activities;
• Our ability to raise additional capital to reduce debt, improve liquidity and fund capital requirements;
• Our ability to fund planned capital expenditures and development efforts;
• Our inability to gauge and predict the commercial success of our programming;
• Our ability to maintain relationships with customers, employees and suppliers, including our ability to enter into revised payment plans, when necessary, with our vendors that are acceptable to all parties;
• Delays in the release of new titles or other content;
• The effects of disruptions in our supply chain;
• The loss of key personnel;
• Our public securities' limited liquidity and trading; or
• Our ability to meet the NASDAQ Capital Market continuing listing standards and maintain our listing.

You should carefully consider and evaluate all of the information in this press release, including the risk factors listed above and in our Form 10-K filed with the Securities Exchange Commission (or SEC), including "Item 1A.  Risk Factors."  If any of these risks occur, our business, results of operations, and financial condition could be harmed, the price of our common stock could decline and you may lose all or part of your investment, and future events and circumstances could differ significantly from those anticipated in the forward-looking statements contained in this press release.  Unless otherwise required by law, we undertake no obligation to release publicly any updates or revisions to any such forward-looking statements that may reflect events or circumstances occurring after the date of this press release.

Readers are referred to the most recent reports filed with the SEC by RLJ Entertainment. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: 
Traci Otey Blunt, 301-830-6204 
RLJ Entertainment, Inc. 
tblunt@rljentertainment.com 

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SOURCE RLJ Entertainment, Inc.