LOUISVILLE, Ky., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (NASDAQ: CREX,), a leading provider of digital signage and media solutions, is proud to announce its strategic momentum and growth in the Sports and Entertainment (S&E) vertical. Creative Realities has been pivotal in transforming stadium and arena technology solutions and the way sports and entertainment venues engage with their audiences. Leveraging its advanced digital signage and CMS platform solutions, the company is providing ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Another valuation metric that we should highlight is CREX's P/B ratio of 1.74. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total lia ...

Company Overview - Creative Realities, Inc. (CRI) is a leading provider of digital signage and media solutions, recently added to the Russell Microcap® Index effective July 1, 2024, as part of the 2024 Russell indexes reconstitution [1][12]. Industry Context - Russell indexes are widely utilized by investment managers and institutional investors, serving as benchmarks for approximately $10.5 trillion in assets as of December 2023 [2]. - FTSE Russell, a prominent global index provider, has been instrumental in the design and governance of these indexes for over 40 years, ensuring they accurately reflect market segments [4][15]. Strategic Implications - The inclusion in the Russell Microcap Index is seen as a recognition of the company's successful value creation strategy and improved performance, potentially increasing stock exposure to a broader range of funds and institutional investors [12]. - This designation is expected to create new opportunities for accelerating shareholder value and expanding the base of accredited investors interested in the company [12]. Market Position - The Russell US Indexes reconstitution captures the 4,000 largest US stocks, ranking them by total market capitalization, with membership in the Russell Microcap Index lasting for one year [13]. - Creative Realities operates across various vertical markets, including retail, automotive, digital-out-of-home advertising, convenience stores, foodservice, gaming, theater, and stadium venues, providing recurring SaaS and support services [14].

LOUISVILLE, Ky., June 10, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (NASDAQ: CREX, CREXW), a leading provider of digital signage solutions, is proud to announce the appointment of David Schultz as Vice President, New Business Development, to its leadership team. David brings over 25 years of experience in sales and business development, having held leadership roles at notable companies including Appspace, Cisco Systems, NEC Corporation, Hitachi America, Toshiba Display Solutions and, most recently, ...

Core Points - Creative Realities, Inc. is set to join the Russell Microcap Index effective July 1, 2024, reflecting its growing stature in the industry and improving performance [1][3] - Membership in the Russell Microcap Index provides automatic inclusion in relevant growth and value style indexes, enhancing visibility among funds that track Russell indexes [2][3] Company Overview - Creative Realities specializes in digital signage and media solutions, helping clients achieve business objectives such as increased revenue and improved customer experiences [4] - The company designs, develops, and deploys digital signage experiences for enterprise-level networks and offers recurring SaaS and support services across various sectors, including retail, automotive, and digital-out-of-home advertising [4] Industry Context - The Russell reconstitution captures the 4,000 largest US stocks, ranked by total market capitalization, which is a significant benchmark for investors [2] - FTSE Russell, the organization behind the Russell indexes, provides essential benchmarking and analytics tools for investors, enhancing market transparency [5]

LOUISVILLE, Ky., June 04, 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 that it is set to join the Russell Microcap Index at the conclusion of the 2024 Russell annual reconstitution, effective at the open of equity markets on Monday, July 1, according to a preliminary list of additions posted Friday, May 24. The annual Russell reconstitution captures the 4,000 larges ...

LOUISVILLE, Ky., May 28, 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 that it and First Merchants Bank ("FMB") executed a credit agreement implementing the previouslyannounced $22.1 million senior secured revolving credit facility (the "Revolver") with a $5 million accordion feature. At closing, the Revolver was utilized to pay off all existing indebtedness of the Co ...

LOUISVILLE, Ky., May 15, 2024 (GLOBE NEWSWIRE) -- Creative Realities, Inc. ("Creative Realities") (NASDAQ:CREX) a leading provider of cutting-edge digital signage and media solutions in North America, announces its development of a channel program tailored and targeted to the EMEA marketplace. As the global digital signage and IT market is generally moving to a predominantly SaaS business model, Creative Realities is well-positioned to appeal to EMEA digital signage integrators in need of enterprise-level C ...

Financial Data and Key Metrics Changes - The company reported record first-quarter revenue of $12.3 million, a 23.5% increase from $9.9 million in the prior year [18] - Gross profit for the first quarter was $5.8 million, up from $5.1 million in 2023 [18] - Adjusted EBITDA was approximately $0.8 million compared to $1 million last year [18] - Annual recurring revenue (ARR) reached an all-time high of approximately $17.7 million, an increase of $1.4 million from the end of 2023 [20] Business Line Data and Key Metrics Changes - Service revenue grew by 45% year-over-year, driven by higher installations, although this led to slightly lower gross margins [9] - The company expects that increased installation activity will lead to higher subscription revenue in the future [9] Market Data and Key Metrics Changes - The company is experiencing strong demand in the quick-service restaurant (QSR) sector, particularly for drive-thru solutions [44] - Engagement with professional sports teams for large stadium overhauls is also significant, with ongoing discussions with 10 to 15 teams [44] Company Strategy and Development Direction - The company is focused on disciplined debt deleveraging and has secured a new $20 million senior revolving credit facility to enhance financial flexibility and support growth [34][35] - The management is optimistic about the potential for acquisitions, given the new financing capacity, while maintaining a focus on reasonable valuations [68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a revenue target of $60 million for the year, despite some slower ramp-up in certain projects [31] - The company anticipates a return to a higher mix of hardware sales in the upcoming quarters, which should positively impact EBITDA margins [32] Other Important Information - The company is on track for an ERP transition to NetSuite on July 1, which is expected to improve operational efficiency [42] - The backlog remains significant, although slightly reduced from previous figures, indicating ongoing demand [71] Q&A Session Summary Question: Can you talk about business development and demand in verticals? - Management highlighted strong activity in the QSR space and ongoing engagements with professional sports teams for large projects [44] Question: Is there any change to the revenue guidance range? - Management confirmed that they are still firm on the $60 million revenue guidance and expect to make up for any slower ramp in other business areas [31] Question: What is the status of the Panera relationship? - The company is fully integrated with Panera's point of sale and expects to open 40 to 60 new locations annually [48][77] Question: How are you deepening relationships with existing customers? - Management noted that existing customers are expanding their services, leading to increased revenue from previously acquired customers [54] Question: What is the competitive environment like? - Management indicated that they are winning about 70% of engagements and are increasingly invited to participate in proposals [51][58]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%201.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements show reduced net loss, negative working capital, and going concern doubt due to debt maturities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show decreased assets and liabilities, with long-term debt reclassified to current, resulting in negative working capital Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $16,317 | $18,610 | | **Total Assets** | $68,206 | $70,777 | | **Total Current Liabilities** | $38,735 | $20,197 | | **Total Liabilities** | $39,357 | $41,946 | | **Total Shareholders' Equity** | $28,849 | $28,831 | - The company reported **negative working capital of $22.4 million** as of March 31, 2024, primarily due to the reclassification of long-term debt and contingent consideration to current liabilities ahead of their February 2025 maturity[9](index=9&type=chunk)[27](index=27&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total sales increased 24% to $12.3 million, significantly reducing net loss to $109 thousand, aided by a gain on contingent consideration Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total Sales** | $12,285 | $9,944 | | **Gross Profit** | $5,764 | $5,089 | | **Operating Loss** | $(76) | $(90) | | **Net Loss** | $(109) | $(1,000) | | **Diluted Loss Per Share** | $(0.01) | $(0.14) | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $1.9 million, with net cash used in investing and financing activities, ending with $2.9 million cash Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,938 | $3,868 | | **Net cash used in investing activities** | $(830) | $(1,034) | | **Net cash used in financing activities** | $(1,119) | $(562) | | **Cash and Cash Equivalents, end of period** | $2,899 | $3,905 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, going concern uncertainty due to debt maturities, revenue recognition, and customer concentration - The company's financial statements are prepared under a going concern assumption, but management identified conditions raising substantial doubt, including negative working capital and upcoming debt maturities totaling **$10.0 million** (Acquisition Term Loan) and **$10.6 million** (contingent consideration) in February 2025, with insufficient cash to meet these obligations[27](index=27&type=chunk) - Management's plans to refinance these obligations are not yet finalized and cannot be deemed probable, thus the substantial doubt about the company's ability to continue as a going concern is not alleviated[28](index=28&type=chunk) - On March 27, 2023, the company executed a **1-for-3 reverse stock split**, with all share and per-share data retroactively adjusted to reflect this split[22](index=22&type=chunk) Disaggregated Revenue by Source (in thousands) | Revenue Source | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Hardware | $4,144 | $4,322 | | Managed Services | $4,774 | $4,072 | | Installation Services | $2,160 | $947 | | Other Services | $1,207 | $603 | | **Total Revenue** | **$12,285** | **$9,944** | - The company has significant customer concentration, with four customers accounting for **13%, 12%, 11%, and 10% of revenue** for the three months ended March 31, 2024[92](index=92&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, highlighting a 24% sales increase driven by services, and reiterates liquidity challenges and going concern uncertainty due to significant debt maturities [Overview](index=21&type=section&id=Overview) Creative Realities provides end-to-end digital signage solutions across various market segments, offering a full portfolio from hardware to recurring SaaS platforms - The company provides end-to-end digital signage solutions for market segments such as Retail, QSRs, Convenience Stores, and Corporate Communications[98](index=98&type=chunk)[100](index=100&type=chunk) - Primary revenue sources include hardware sales, services (design, installation, support, media sales), and recurring subscription licensing (SaaS) revenue from proprietary software platforms like ReflectView and AdLogic[102](index=102&type=chunk)[103](index=103&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2024 sales grew 24% to $12.3 million, driven by a 45% increase in services revenue, leading to a significantly improved net loss despite a lower gross margin Comparison of Results of Operations (in thousands) | Line Item | Q1 2024 | Q1 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Sales** | $12,285 | $9,944 | $2,341 | 24% | | **Gross Profit** | $5,764 | $5,089 | $675 | 13% | | **Operating Loss** | $(76) | $(90) | $14 | 16% | | **Net Loss** | $(109) | $(1,000) | $891 | 89% | - The **24% sales increase** was primarily driven by a **$2.5 million (45%) increase in services and other revenues**, with installation services revenue growing **128%** due to significant deployment activity, and managed services (SaaS and support) revenue growing **17%**[109](index=109&type=chunk) - The annual recurring run rate of subscription license revenue grew from **$16.3 million** at year-end 2023 to **$17.7 million** as of March 31, 2024[109](index=109&type=chunk) - Gross profit margin decreased from **51% to 47%** year-over-year, attributed to a shift in revenue mix towards lower-margin installation services, which constituted **18% of total revenue** in Q1 2024 versus 10% in Q1 2023[111](index=111&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces significant liquidity constraints with a $2.9 million cash balance and substantial debt maturities totaling over $20 million in February 2025, raising going concern doubts - Net cash provided by operating activities was **$1.9 million** for Q1 2024, compared to **$3.9 million** for Q1 2023[121](index=121&type=chunk) - Net cash used in financing activities was **$1.1 million** in Q1 2024, primarily due to repayments on the Consolidation Term Loan[123](index=123&type=chunk) - The company's ability to continue as a going concern is in doubt due to upcoming maturities of its Acquisition Term Loan (**$10.0 million**), Consolidation Term Loan, and contingent consideration (**$10.6 million**) on February 17, 2025, with insufficient cash on hand to make these repayments[27](index=27&type=chunk)[120](index=120&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[125](index=125&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[126](index=126&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings, other than routine litigation incidental to its business - The company reports no material legal proceedings[84](index=84&type=chunk)[129](index=129&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) The company faces intense competition from rivals with greater resources and from hardware manufacturers bundling basic software, which could impact market share and margins - The company faces intense competition from rivals with significantly greater financial, technical, and marketing resources, which puts it at a competitive disadvantage[131](index=131&type=chunk) - A specific competitive threat is noted from hardware manufacturers, such as Samsung, who are including customizable display software in their screens, which could be a sufficient solution for some customers despite being less comprehensive[131](index=131&type=chunk) - Failure to invest sufficiently in R&D, sales, and marketing to keep pace with competitors could lead to price reductions, reduced margins, and loss of market share[132](index=132&type=chunk)