Reservoir Media(US:RSVR)2025-11-04 21:06Revenue Performance - Revenues for the three months ended September 30, 2025, were $45,435,000, representing a 12% increase from $40,667,000 in the same period of 2024[77]. - For the six months ended September 30, 2025, revenues increased by 10% to $82,599,000 from $74,984,000 in 2024[77]. - Total revenues increased by $4,768 thousand, or 12%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by an 8% increase in Music Publishing revenues and a 21% increase in Recorded Music revenues[78]. - Total revenues for the six months ended September 30, 2025, increased by $7,615 thousand, or 10%, compared to the same period in 2024[85]. Income and Profitability - Operating income for the three months ended September 30, 2025, was $10,687,000, a 6% increase compared to $10,122,000 in 2024[77]. - Net income attributable to Reservoir Media, Inc. for the three months ended September 30, 2025, was $2,258,000, compared to $185,000 in the same period of 2024, marking a significant increase[77]. - Net income was $2,204 thousand for the three months ended September 30, 2025, compared to $152 thousand for the same period in 2024[124]. - OIBDA for the three months ended September 30, 2025, increased by $1,691 thousand, or 10%, totaling $18,243 thousand, while the OIBDA Margin decreased to 40% from 41%[132]. - For the six months ended September 30, 2025, OIBDA increased by $3,106 thousand, or 11%, compared to the same period in 2024, reaching $31,004 thousand[135]. Revenue Sources - The Music Publishing segment generates revenue from five main sources, including digital, performance, synchronization, mechanical, and other[72]. - The Recorded Music segment's revenues are derived from digital, physical, neighboring rights, and synchronization sources[76]. - Digital revenues rose by $1,964 thousand, or 9%, during the three months ended September 30, 2025, representing 55% of total revenues[80]. - Music Publishing revenues increased by $2,279 thousand, or 8%, during the three months ended September 30, 2025, primarily due to a $2,404 thousand increase in performance revenue[81]. - Recorded Music revenues increased by $2,290 thousand, or 21%, during the three months ended September 30, 2025, mainly due to a $1,477 thousand increase in digital revenue[83]. Costs and Expenses - The cost of revenue for the three months ended September 30, 2025, was $16,532,000, an 11% increase from $14,831,000 in 2024[77]. - Administration expenses for the three months ended September 30, 2025, rose by 15% to $10,659,000 from $9,284,000 in 2024[77]. - Cost of revenue increased by $1,701 thousand, or 11%, during the three months ended September 30, 2025, with a cost of revenue as a percentage of revenues at 36%[92]. - Writer royalties and other publishing costs increased by $1,265 thousand, or 11%, during the three months ended September 30, 2025, with costs as a percentage of Music Publishing revenues rising to 42%[93]. - Artist royalties and other recorded music costs for the Recorded Music segment increased by $547 thousand, or 10%, with costs as a percentage of revenues decreasing to 27% from 28%[97]. Debt and Financing - As of September 30, 2025, total outstanding debt was $425,828 thousand, with remaining borrowing availability under the Senior Credit Facility at $124,172 thousand[151]. - The Senior Credit Facility was amended to increase the revolving credit commitment from $450,000 thousand to $550,000 thousand[153]. - The maturity date of the loans under the Senior Credit Facility is December 16, 2027, with an interest rate based on either a base rate plus a margin or SOFR plus a margin[154]. - Cash provided by financing activities was $31,491 thousand for the six months ended September 30, 2025, compared to $(8,338) thousand in 2024, reflecting increased borrowings[148]. Cash Flow - Cash provided by operating activities for the six months ended September 30, 2025, was $25,305 thousand, up $3,433 thousand or 16% from the same period in 2024[146]. - Cash used for investing activities increased to $50,018 thousand for the six months ended September 30, 2025, compared to $10,702 thousand in 2024, primarily due to acquisitions of music catalogs[147]. Internal Controls and Compliance - A material weakness in internal controls over financial reporting was identified, affecting the effectiveness of disclosure controls and procedures as of September 30, 2025[172]. - Three out of four material weaknesses have been successfully remediated, but the weakness related to the third-party Recorded Music royalty system remains unremediated as of September 30, 2025[173]. - The company is actively taking steps to remediate the identified material weakness, including training and enhancing relevant policies and controls[174]. - There have been no changes in internal control over financial reporting that materially affected the company's internal control during the three months ended September 30, 2025[176].