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STT, your long waffly messages fool nobody... meaningless drivel.
The management did the same at Yume, just before they announced the deal with rthm, so it wouldn't surprise me if they dressed up rthm before selling/merging...
Given the current industry challenges around Data Privacy - (GDPR, California Privacy Law) as well as Apple's ITP and fewer DSPs/SSPs being partnered with, I think M&A will accelerate.
The main difference with regards to a buy back is that it's entirely possible that the BoD are waiting to see what happens around GDPR, California Privacy Law and the costs involved before being able to commit to a buy back.
My 19th Jan post: - note Yume revenues were decreasing and looking at rthm H1 results, look like reduced again...
Referring to my 6th Jan post... I think rthm BoD will do similar to what happened at Yume... dress rthm up and sell..
Yume had falling revenues, had a $10m buyback.. plus special divi and then sold on for around similar sp as before the results and buy back..
Whether Singer does similar here and sells to or buys TAP or any other company is anybody's guess...
Rthm should prove their model and have solid figures and believable outlook before buying anything.
My 6th Jan post:
Just months before the rthm/Yume deal was announced, Yume also announced a $10m buy back.
For fy2016, their results were:
Revenue: $160m (2015 $173m)
Gross Margin 50% (2015 45%)
Cash (and equivalents) $65.7m
Their buy backs were around $3.61-$3.64..
https://www.businesswire.com/news/home/20170216006240/en/YuMe-Reports-Fourth-Quarter-Full-Year-2016
There was also a special divi of $1 a share, just before the rthm/Yume deal was announced...
Yume's last sp on Feb 1, before completion closed at $3.70. Compare that to the buy back prices!
https://finance.yahoo.com/quote/YUME/
Special Divi announcement:
https://www.businesswire.com/news/home/20170622005385/en/YuMe-Declares-Special-Dividend-Quarterly-Dividend
Obviously a buy back will also help INCREASE EPS, which Should come in handy when it comes to reporting "in line" forecast.
I think rthm will possibly follow a similar route.
I think the chances of a special dividend are around nil in the near-term. I only mentioned dividend because it is another form of capital distribution.
From what I understand that 1GW_ is saying,
R1 is sitting on enough cash to do both a buyback, on the strength of the consolidated balance sheet and a special dividend on the strength of retained earnings.
Both may well be subject to M&A negotiations and of course timing will always be a factor.
In terms of the timing of the announcement promised in the 13th December release, I have previously said that I thought they were pushing it a bit. i.e. the commitment was to "release full details on the program as soon as they are finalized" and the implication (to my reading) was that this effectively meant as soon as they had received the required consents and met the regulatory requirements. So I couldn't see that they would reasonably need more than 1 month for external consents, even over the Christmas / New Year period.
But I suppose an alternative reading is that their plan is not formally to finalize the details of the program until the board meeting at which they also approve a quarterly TU, even if they have all other consents in place before then.
So still a bit undecided on whether the apparent delay is more likely to be because they have now entered into some M&A discussions which make it difficult to finalize the details, or whether it's just a preferred timing issue and they want to finalize the details at the same time as they approve a TU.
The amount of the capital reduction is a bit of a red herring as far as the buyback is concerned.
As I understand it, a company is unable to make a capital distribution (dividend or buyback) unless it is showing retained earnings in the company balance sheet. If you look at the R1 company balance sheet in the full-year accounts it has gone from a retained deficit of £8m at 31st March 2017 to retained earnings of £137m at 31st March 2018, principally through the capital reduction.
i.e. it has gone from a position of legally not being able to execute a buyback to a position of legally being able to execute a buyback.
In terms of financially being able to execute a buyback, though, it is the consolidated balance sheet that is relevant (subject to the distributable reserves limit). So cash and equivalents of $22m at 30th September 2018, and as I understood what Bonney said on the webcast this had become $31m as of the then "latest full week cash report" and was expected to grow further from there as receivables from their seasonally strongest period of business were collected.
So in that context, a buyback program of "up to $10 million" should be eminently doable.
In other words, they can perform a buyback...
Tricky,
"I seem to remember in July 2017 RhythmOne's 'Reduction of Capital' raised around £140m, as a distributable reserve."
Do you also remember in my post last month I mentioned that I think the buy back had been planned for over a year and only just before the Yume deal was announced, they announced the 'capital reduction'? The Yume negotiations were going on at same time as the 'Capital Reduction'.
Coincidence??
My post 14th Dec 2018:
--------------------------------
I think the buy back had been planned for over a year and just before the Yume deal was announced. I think it was probably part of the Yume deal to have it in place...
The cancellation of the Share Premium account was announced in June 2017, just as they were negotiating the deal with Yume...
So they created $186m distributable reserves..
July 2017:
"The amount standing to the credit of the Company's share premium account has been cancelled and the Reduction of Capital has created distributable reserves of approximately GBP142,825,734 (equivalent to approximately $186,359,256 at the prevailing spot foreign exchange rate as at approximately 4.00 p.m. (BST) on 26 July 2017).
The Reduction of Capital is a legal and accounting adjustment and is not expected to have any direct impact on the market value of the ordinary shares of the Company, or the number of ordinary shares in issue.
The creation of this distributable reserve as result of the Reduction of Capital will afford the Company more flexibility to make distributions to its shareholders, if thought fit by the Directors."
https://investor.rhythmone.com/newsroom/2017/07/27/confirmation-of-reduction-of-capital
fy 2018:
"On 26 July 2017 RhythmOne completed a UK High Court approved capital reduction. A copy of the order confirming the capital reduction has been registered by the Registrar of Companies and as such the capital reduction has become effective. All share premium and merger reserve attaching to the Company's ordinary shares has consequently been cancelled. The purpose of capital reduction was to create distributable reserves to provide the Company some flexibility should it wish to undertake the payment of dividends or undertake a share buy-back program in the future."
https://investor.rhythmone.com/assets/pdf/RhythmOne_FY2018_Results_140618.pdf
Reduction of share premium account
Share premium account
Reduced (or cancelled) by means of a reduction of capital. In accordance with article 3 of the Companies (Reduction of Share Capital) Order (SI 2008/1915), the reserve created on such reduction can be treated as a realised profit and, therefore, it may be distributed to shareholders or used to buy back shares.
Share premium account | Practical Law
https://uk.practicallaw.thomsonreuters.com/1-107-7253
I seem to remember in July 2017 RhythmOne's 'Reduction of Capital' raised around £140m, as a distributable reserve.
Could some of this be used or is it all 'ring-fenced' for a special dividend one day?
I'd rather have the cash sooner rather than later if that is the case, it seems a lot of money just to be sitting there.
Assuming it is not just an accounting adjustment...
Where do they get the money? 31m in cash, 10m buyback proposed.
Most of the shares are held by institutional investors who would presumably want R1 to offer a premium to part with them. If R1 does indeed offer a premium them the sp should rise.
Such a fixed price tender offer to the Institutional investors would show that the company believes the shares are undervalued.
But where do R1 get the money from? By increasing debt?
It would be even better if they also had a plan to get rid of that stinking troll who is determined to destroy this company
It will be very odd if there isn’t a clear plan for the buyback in the quarterly update.
I'm hoping details announced with the TU (assuming we get one in the next week or so) and they start buying the following day. Share your concerns re acquisition activity wagas.
When is this buy-back happening??! This share is so depressing. I thought under American management we'd be slicker than this but announcing a buy-back and not doing it is Brian's level! I really hope we are not going to buy something. The share price is less than half what it was before we bought YuMe, I can't face it halving again.
sorry can't say a thing has the last 3 messages have been take down by lse for saying thanks
TV is still the undisputed leader, specifically in brand advertising campaigns.
Search advertising (which is a huge chunk of what is called “digital”) isn’t like advertising at all, it’s physical availability.
Google and eBay are not traditional Brand Advertisers.
Television is still the most-used medium for brand advertising specifically and for media spends in general.
TV is nowhere close to dying, which might prove even more true as GDPR takes effect and limits the use of consumer-tracking and marketing surveillance, as a backlash is mounting against profiling consumers for the purposes of targeted direct response ads.
has found another negative article.
What a loser, spending all of his life trolling a company. Amazingly he never finds anything positive.
Low life scumbag. No doubt this will be deleted, but I dont know why because its the truth. If the moderators look at this perhaps they will kindly look at the persistent posting of dross from stt1 and realise he has an agenda.
Digital Ad Marketplaces Don't Work For TV
https://www.mediapost.com/publications/article/331061/digital-ad-marketplaces-dont-work-for-tv.html
Any stock this morning. Never had that issue before, tried several times. Any ideas?
Have to agree that any sort of bad news is firmly off the agenda.
Interesting to see if they actually go higher in their TU. Last years 1st qtr (which is always a bit slow) was impacted by
Yume/Rone integration problems as much as the usual 1st qtr fall off. No chance of the former this time.
Some nice links Brass. Ta.
adding in ads.txt rankings..
1k sites. 16th/30th - up from 19th when I last reported...
5k sites - 21st/30th - unchanged since last reported...
10k/30k - 23rd/30th - unchanged since last reported...
https://adstxt.firstimpression.io/
Yes tardis, it’s either boom time or this is now an irrelevant and unreliable indicator right up until the next time it declines a bit
Like it Brass. RhythmOne hits Boomtime.
Brassneck,
"I see after all the fuss made on ADVFN over the last quarter 'decline of 50%'
What id do you use on that BB?