Creative Realities Reports Fiscal 2024 Second Quarter Results

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Creative Realities
Creative Realities

43% Year-over-Year Top Line Growth; Refinancing Complete

LOUISVILLE, Ky., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX), a leading provider of digital signage and media solutions, today announced its financial results for the fiscal second quarter ended June 30, 2024.

Highlights:

  • Record second quarter revenue of $13.1 million, up 43% from $9.2 million in the prior-year period

  • Gross profit of $6.8 million for the three months ended June 30, 2024 versus $4.3 million in the second quarter of fiscal 2023

  • Adjusted EBITDA* of $1.5 million for the second quarter of 2024 versus $0.3 million in the prior-year period

  • Annual recurring revenue (“ARR”) of approximately $18.0 million at the end of the second quarter versus $17.7 million as of March 31, 2024

  • On May 28, Creative Realities completed the previously-announced agreement with First Merchants Bank (“FMB”) for a $22.1 million senior secured revolving credit facility (the “Revolver”) with a $5 million accordion feature; the Revolver was used to pay off all of the Company’s $13.6 million of existing indebtedness

“Second quarter results exceeded the first, as momentum and accelerating demand continue to drive us towards a solid finish for fiscal 2024,” said Rick Mills, Chief Executive Officer. “Revenue grew 43% year-over-year, reflecting positive trends across all parts of the business, and gross margins rose to 51.8% as we realized economies of scale and improved asset utilization. At the same time, our annual recurring revenue climbed to approximately $18.0 million at the end of the quarter – positioning us well to reach prior guidance – and the Company generated over $2 million of operating cash during the period.

“We also completed our previously-announced debt refinancing in May, consisting of a $22.1 million Revolver with a $5 million accordion, ending the quarter with $13.8 million in debt. We remain committed to a strategy of using operating cash flow to reduce overall indebtedness and strengthen the balance sheet, leading to reduced leverage and increased financial flexibility to explore strategic transactions. We’re well on our way to record performance this year, with the tools in place for even greater results – and increased shareholder value – heading into fiscal 2025 and beyond.”

*Adjusted EBITDA is a non-GAAP financial measure. A reconciliation is provided in the tables of this press release.

2024 Second Quarter Financial Results
Sales were $13.1 million for the fiscal 2024 second quarter, an increase of $3.9 million, or 43%, as compared to the same period in fiscal 2023. Hardware revenue was $5.0 million, versus $3.4 million in the prior-year period, while service revenue rose to $8.1 million from $5.8 million in fiscal 2023. Both areas of the business saw substantial growth year-over-year due to strong demand and higher installations.