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FAB Universal (NYSE MKT: FU), a worldwide distributor of digital media and entertainment, today announced financial results for the second quarter ending June 30, 2013.
“FAB Universal delivered its third consecutive quarter of EPS growth, led by continued gains from our fast-growing, high-margin digital segment, which includes our Intelligent Media Kiosk business. On a sequential basis, gross profit grew by 47.4%, outpacing the 41% revenue increase to reach a gross margin of 80.3%,” said Chris Spencer, CEO of FAB Universal. “We continued to expand our network of Intelligent Kiosks, adding over 2,000 for a total now of nearly 16,000, and intend to aggressively build out our network during the second half of the year.”
Spencer added, “Based on our performance to date, we remain confident that we will achieve revenue of $98.9 million to $102.6 million and net income of $19.3 million to $20.1 million for the full year. However, because we have experienced variances between reported results and our guidance for both the first and second quarter of 2013, reflecting variability in the timing of signing new kiosk contracts, we are revising our guidance policy and going forward will only offer revenue and EPS guidance on an annual basis. Our established media and entertainment distribution platform and the power of the FAB brand give us the fundamentals to continue to drive strong organic growth.”
Second Quarter and Year-to-Date Financial Review
FAB Universal acquired DEI Ltd. on September 26, 2012. Therefore year-over-year comparisons of the company’s financial results largely reflect the addition of DEI.
Total revenue for the second quarter ended June 30, 2013 was $25.9 million compared $0.9 million for the second quarter of 2012 and $22.6 million for the first quarter ended March 31, 2013, a sequential increase of 14.6%. Revenue for the wholesale business unit was $14.0 million for the second quarter of 2013 compared to none in the year ago period and $13.8 million for the first quarter of 2013. Revenue for the digital business unit was $9.6 million for the second quarter of 2013 compared to $0.9 million for the second quarter of 2012 and $6.9 million for the first quarter of 2013. Revenue for the retail business unit was $2.3 million for the second quarter of 2013 compared to none in the comparable period of 2012 and $2.0 million for the first quarter of 2013.