Redbox Owner Posts 75% Q1 Revenue Decline, $53 Million Loss

Chicken Soup for the Soul Entertainment disclosed in a May 15 filing that it posted a net loss of $53 million on revenue of $27 million for the fiscal quarter ended March 31.

The company, which owns and operates Redbox rental kiosks and branded free ad-supported streaming television channels and related entertainment businesses, said quarterly revenue plummeted about 75% from $108 million in the previous-year period.

Chicken Soup attributed the worsening fiscal results to insufficient working capital and lack of new rental content this year. The company said it would be unable to formally file its first quarter fiscal results in full due to the ongoing management focus on “certain important strategic efforts” it has been undertaking, including a forbearance agreement with its largest creditor.

Chicken Soup’s annual 10K fiscal report for 2023 was filed on April 19.

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Redbox Owner Raises $175 Million in Working Capital, Adds Two Board Members

Chicken Soup for the Soul Entertainment, the owner/operator of Redbox, has entered into an agreement with two financial partners that allows it to raise $175 million of additional working capital prior to June 6.

Robert H. Warshauer

The company said it would use the funds to sublicense select “video content assets” and for one or more sales leaseback transactions. CSSE said it would also spend $75 million to pay down amounts owed under a credit agreement with HPS Investment Partners.

John T. Young Jr.

As part of the additional funding, CSSE is expanding its board of directors from nine members to 11, with the addition of independent members John T. Young Jr., managing partner at Neinda Advisors LLC, and Robert H. Warshauer, managing director of Imperial Capital.

According to CSSE, Young has “deep experience” in restructuring advisory matters, including serving as a chief restructuring officer of, or restructuring advisor to, numerous gas, oil and utility companies. Warshauer is an experienced executive with decades of experience providing operational, financial and investment banking expertise to public and private companies.

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Redbox Owner CSSE Posts $636.6 Million Loss in 2023 Despite Big Gains in Kiosk Rental, Licensing Revenue

Chicken Soup for the Soul Entertainment, owner and operator of Redbox DVD rental kiosks and related VOD and ad-supported VOD channels, posted a net loss of $636.6 million on revenue of $294.4 million in 2023, widened from a net loss of $111.3 million on revenue of $252.8 million in 2022, according to an April 19 fiscal 10K regulatory filing.

CSSE, which operates about 40,000 Redbox kiosks nationwide after acquiring the brand in August 2022, reported that the kiosk business saw a 66% increase in revenue to $112.7 million, from revenue of $67.7 million in 2022. VOD revenue declined 28% to $104 million, from $144.5 million in 2022. Licensing revenue increased 91% to $77.6 million, from $40.6 million in 2022.

CSSE reported that it ended 2023 with fiscal debt of $562.4 million, which includes outstanding credit facilities and bond debt.

In the report, CSSE said it does not currently have “adequate sources of liquidity” to meet its anticipated requirements for working capital, capital expenditures, cash dividend payments on its 9.75% Series A preferred stock, and cash interest payments on outstanding bond notes, credit facilities, and other debt obligations.

Indeed, CSSE said the reduced the liquidity would contribute an expected “lower level of kiosk rentals into the future” until it could afford to stock DVD titles “of consequence” on a consistent basis.

“The inability to obtain additional financing resources, will likely require us to diminish or halt operations and seek protection under applicable bankruptcy laws,” read the 10K report.

Also in the filing, CSSE said it had entered into a “mutual forbearance period” with its principal lender, giving it upwards of 60 days to pursue separate fiscal transactions, which include a $50 million sublicense agreement, a $125 million deal with a third party comprised of a $65 million line of credit and a $60 million equipment lease to Redbox secured by assets owned by the kiosk rental company.

The forbearance prohibits the lender from “exercising any [fiscal] remedies” against CSSE under previous terms of the credit facility.

Earlier this month CSSE, in a separate regulatory filing, said it would make a special payment on April 30 of more than $1.07 million due for accrued and unpaid interest that was previously owed to a bond holder.

The company is also seeking an extension with the Nasdaq to regain $1-per-share minimum compliance for its publicly traded stock. CSSE shares are currently trading around 14 cents per share.

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Redbox Owner Seeks SEC Hearing to Avoid NASDAQ Delisting

Redbox owner Chicken Soup for the Soul Entertainment is seeking a hearing with the Securities Exchange Commission to get an extended 180-day period (until Aug. 6) to regain compliance with the trading board’s $1-per-share minimum stock valuation.

Failure to maintain the minimum stock valuation can result in delisting from NASDAQ, making it difficult to solicit stock-based funding.

CSSE last September received notice from the SEC that its stock price had failed to meet the minimum value threshold for at least 10 business days. The company was given 180 days to become compliant, but as of March 20, 2024, the stock was still below the threshold.

CSSE shares closed April 1 at slightly more than 15 cents per share, giving the company a market valuation of $4.91 million. If the company can elevate its market valuation to $5 million for 10 consecutive business days, it would regain compliance. CSSE’s stock was trading at $15 per share following the merger between Redbox and CSSE in August 2022.

The company reported net revenue of $36 million in the most-recent fiscal quarter, ended Sept. 30, 2023, up more than 14% from revenue of $31.6 million in the previous-year period.

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Redbox Saw $4.5 Million Q3 Revenue Increase Despite Operating Loss

Chicken Soup for the Soul Entertainment reported that its Redbox business unit generated third-quarter (ended Sept. 30, 2023) net revenue of $36 million, up more than 14% from revenue of $31.6 million in the previous-year period. Through nine months of the fiscal year, kiosk revenue increased 254% to $90.7 million from $25.6 million in 2022 — just two months after the closure of Chicken Soup’s Redbox acquisition.

Redbox posted an operating loss of $393 million, up from an operating loss of $9.5 million during the previous-year period. The operating loss includes an asset impairment charge of $237.8 million and a goodwill impairment charge of $136.9 million.

Streaming and VOD revenue dropped almost 30% to $21.7 million from $30.9 million in the previous year. The decrease was primarily due to a $6.2 million decline in streaming licensee revenue by Screen Media Ventures compared to the prior year, as well as $2.8 million in lower ad revenue due to a lower volume of inventory available to sell.

Licensing and other revenue increased $600,000 to $16.4 million from $15.8 million in the prior year period. Chicken Soup attributed the fiscal bump to the modification of an existing intellectual property licensing agreement.

Despite the uptick in Redbox revenue, the legacy disc rental kiosks continue to be hampered by an inability to pay for and secure new movies — a reality the company says has strained relationships with creditors, including content providers. As a result, Chicken Soup said it was unable to pay for all the movies that were offered to it by distributors in the quarter.

With kiosk operating results failing to meet management’s expectations, and hampering its ability to operate Redbox efficiently, Chicken Soup said there is “substantial doubt as to the ability of the company to continue as a going concern.”

Chicken Soup’s stock price hovers around 20 cents per share, with a market capitalization of $6.56 million.

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Redbox, Still Lagging in Updating Inventory, Sees ‘Barbie’ Top Disc Rentals for Seventh Week

Warner’s Barbie remained No. 1 on the Redbox disc rental chart the week ended Dec. 3. This is the seventh consecutive week in the top spot for the blockbuster comedy based on the iconic doll brand, which was the top box office title of the year with more than $636 million domestically.

However, it seems Barbie‘s chart-topping streak may have less to do with its inherent popularity and is more about Redbox, the nation’s top rental outlet, not restocking its kiosks with the big new titles released in the past month such as Mission: Impossible — Dead Reckoning Part One, Gran Turismo, The Equalizer 3 and Oppenheimer.

Unsurprisingly, then, the top five titles on the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s thousands of red kiosks, remained the same as the previous week, though in a slightly different order, with all of them being older releases than Barbie.

No. 2 was again Universal’s Strays. The raunchy comedy follows a pack of foul-mouthed dogs as one of them seeks to return home to avenge his owner abandoning him.

Up a spot to No. 3 was Universal’s 2018 animated version of The Grinch, which pushed the same studio’s Fast X down a spot to No. 4. Lionsgate’s John Wick: Chapter 4 remained No. 5.

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The top title on the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions, was again Vertical’s The Retirement Plan, an actioner starring Nicolas Cage as a beach bum with a mysterious past who comes out of retirement to save his daughter and granddaughter from a crime boss.

The No. 2 digital title was Relativity Media’s Freelance, an action comedy about a former soldier (John Cena) who is hired to protect a journalist (Alison Brie) in a hostile country.

No. 3 was Vertical’s After Everything, the fifth chapter in the soapy “After” franchise about a pair of young lovers.

No. 4 was Paramount’s Fatman, starring Mel Gibson as a violent action-oriented Santa. It was the No. 7 disc rental.

The No. 5 digital title was MGM’s Tom Clancy’s Without Remorse, a 2021 actioner based on the novel of the same name starring Michael B. Jordan.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Dec. 3:

  1. Barbie — Warner
  2. Strays — Universal
  3. The Grinch — Universal
  4. Fast X — Universal
  5. John Wick: Chapter 4 — Lionsgate
  6. Violent Night — Universal
  7. Fatman — Paramount
  8. Kandahar — Universal
  9. The Ritual Killer — Screen Media
  10. Ruby Gillman, Teenage Kraken — Universal/DreamWorks

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Dec. 3:

  1. The Retirement Plan — Vertical
  2. Freelance — Relativity Media
  3. After Everything — Vertical
  4. Fatman — Paramount
  5. Tom Clancy’s Without Remorse — MGM
  6. Kevin Hart: Reality Check — Premiere
  7. On Fire — Cineverse
  8. Office Christmas Party — Paramount
  9. The Baker — Vertical

 

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‘Barbie’ Tops Redbox Disc Rental Chart for Sixth Week

Warner’s Barbie remained No. 1 on the Redbox disc rental chart the week ended Nov. 26.

The blockbuster comedy based on the iconic doll brand was the top box office title of the year with more than $636 million domestically and has now topped the rental chart six consecutive weeks.

However, it should be noted that Barbie‘s rental run at No. 1 may have less to do with the popularity of the film and more to do with Redbox, the nation’s top rental outlet, not restocking its kiosks with the big new titles released in the past month such as Mission: Impossible — Dead Reckoning Part One, Gran Turismo, The Equalizer 3 and Oppenheimer.

The No. 2 title on the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s thousands of red kiosks, was Universal’s Strays. The raunchy comedy follows a pack of foul-mouthed dogs as one of them seeks to return home to avenge his owner abandoning him.

The No. 3 disc rental was Universal’s Fast X, followed at No. 4 by Universal’s 2018 animated version of The Grinch, and at No. 5 by Lionsgate’s John Wick: Chapter 4.

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The top title on the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions, was Vertical’s The Retirement Plan, an actioner starring Nicolas Cage as a beach bum with a mysterious past who comes out of retirement to save his daughter and granddaughter from a crime boss.

The No. 2 digital title was Paramount’s Fatman, starring Mel Gibson as a violent action-oriented Santa.

No. 3 was Vertical’s After Everything, the fifth chapter in the soapy “After” franchise about a pair of young lovers.

The No. 4 digital title was Cineverse’s On Fire, a thriller about an ordinary man (Peter Facinelli) who finds his world is suddenly torn apart as devastating wildfires rip through the surrounding countryside and he must rescue his son and pregnant wife.

No. 5 was Angel Studios’ surprise summer hit Sound of Freedom, from Premiere Digital Services. The film stars Jim Caviezel as a former U.S. federal agent who dedicates his life to freeing children from traffickers.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Nov. 26:

  1. Barbie — Warner
  2. Strays — Universal
  3. Fast X — Universal
  4. The Grinch — Universal
  5. John Wick: Chapter 4 — Lionsgate
  6. Ruby Gillman, Teenage Kraken — Universal/DreamWorks
  7. Kandahar — Universal
  8. Us or Them — Screen Media
  9. The Ritual Killer — Screen Media
  10. Plane — Lionsgate

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Nov. 26:

  1. The Retirement Plan — Vertical
  2. Fatman — Paramount
  3. After Everything — Vertical
  4. On Fire — Cineverse
  5. Sound of Freedom — Angel Studios
  6. Free Birds — Relativity
  7. Tom Clancy’s Without Remorse — MGM
  8. The Exorcists — Asylum
  9. Dog — MGM
  10. The Dirty South — Cineverse

 

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Redbox Owner Receives Nasdaq Delisting Warning for Not Filing Quarterly Fiscal Result

Chicken Soup for the Soul Entertainment, parent of Redbox, Nov. 22 announced it has received notice from the Nasdaq indicating it is not in compliance with the stock trading board’s listing rules.

Specifically, Nasdaq said Chicken Soup has not filed its Form 10-Q for the fiscal period ended Sept. 30, 2023, with the Securities and Exchange Commission (“SEC”). The Notice does not immediately affect the listing or trading of the company’s securities. According to Nasdaq, the Chicken Soup was required to file Form 10-Q by Nov. 14, 2023.

Under Nasdaq rules, Chicken Soup has 60 calendar days from receipt of the notice to submit a plan to regain compliance. If Nasdaq accepts the plan, then it may grant an exception of up to 180 calendar days (May 20, 2024) to regain compliance. If Nasdaq does not accept Chicken Soup’s plan, it can appeal the decision to a Nasdaq hearings panel.

Chicken Soup said it is working diligently to complete the Form 10-Q and anticipates filing the Form 10-Q as soon as possible. Separately, the company’s stock valuation currently sits at 29 cents per share, well below Nasdaq’s $1-per-share minimum.

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‘Barbie’ Tops Redbox Disc Rental Chart for Fifth Week

Warner’s Barbie remained No. 1 on the Redbox disc rental chart the week ended Nov. 19.

The blockbuster comedy based on the iconic doll brand was the top box office title of the year with more than $636 million domestically and has now topped the rental chart five consecutive weeks.

The No. 2 title on the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s thousands of red kiosks, was again Universal Pictures’ The Last Voyage of the Demeter. The film is based on the chapter from Bram Stoker’s Dracula novel in which the vampire travels via a ship from Transylvania to London. It earned $13.6 million from U.S. theaters. It also moved to No. 1 on the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions.

Universal’s Strays remained the No. 3 disc rental. The raunchy comedy follows a pack of foul-mouthed dogs as one of them seeks to return home to avenge his owner abandoning him. It earned $24 million domestically and was also No. 4 on the Redbox On Demand chart.

No. 4 was Universal’s My Big Fat Greek Wedding 3. In the comedic romance drama, the Portokalos family travels to Greece to fulfill the final wish of their beloved patriarch.

The No. 5 disc rental was Universal’s Fast X, which was also No. 10 on the digital chart.

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The top title on the Redbox On Demand chart the previous four weeks, Vertical’s The Retirement Plan, slipped to No. 3. The actioner stars Nicolas Cage as a beach bum with a mysterious past who comes out of retirement to save his daughter and granddaughter from a crime boss.

The No. 2 digital title was Universal’s 2000 live-action How the Grinch Stole Christmas.

No. 5 was again Vertical’s After Everything, the fifth chapter in the soapy “After” franchise about a pair of young lovers.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Nov. 19:

  1. Barbie — Warner
  2. The Last Voyage of the Demeter — Universal
  3. Strays — Universal
  4. My Big Fat Greek Wedding 3 — Universal
  5. Fast X — Universal
  6. I Heard the Bells — Universal
  7. John Wick: Chapter 4 — Lionsgate
  8. The Grinch — Universal
  9. Us or Them — Screen Media
  10. Ruby Gillman, Teenage Kraken — Universal/DreamWorks

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Nov. 19:

  1. The Last Voyage of the Demeter — Universal
  2. How the Grinch Stole Christmas (2000) — Universal
  3. The Retirement Plan — Vertical
  4. Strays — Universal
  5. After Everything — Vertical
  6. The Hill — Universal
  7. Sound of Freedom — Angel Studios
  8. The Grinch — Universal
  9. On Fire — Cineverse
  10. Fast X — Universal

 

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‘Barbie’ Still No. 1 on Redbox Disc Rental Chart; ‘Retirement Plan’ Stays Atop Digital Titles for Fourth Week

Warner’s Barbie remained No. 1 on the Redbox disc rental chart the week ended Nov. 12.

The blockbuster comedy based on the iconic doll brand was the top box office title of the year with more than $636 million domestically.

The No. 2 title on the disc rental chart, which tracks DVD and Blu-ray Disc rentals at Redbox’s thousands of red kiosks, was again Universal Pictures’ The Last Voyage of the Demeter. The film is based on the chapter from Bram Stoker’s Dracula novel in which the vampire travels via a ship from Transylvania to London. It earned $13.6 million from U.S. theaters.

Universal’s Strays remained the No. 3 disc rental. The raunchy comedy follows a pack of foul-mouthed dogs as one of them seeks to return home to avenge his owner abandoning him. It earned $24 million domestically and was also No. 3 on the Redbox On Demand chart, which tracks digital VOD and sellthrough transactions.

No. 4 was Universal’s My Big Fat Greek Wedding 3. In the comedic romance drama, the Portokalos family travels to Greece to fulfill the final wish of their beloved patriarch.

The No. 5 disc rental was Universal’s Fast X.

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The top title on the Redbox On Demand chart was again Vertical’s The Retirement Plan, an actioner starring Nicolas Cage as a beach bum with a mysterious past who comes out of retirement to save his daughter and granddaughter from a crime boss.

The new No. 2 was Angel Studios’ surprise summer hit Sound of Freedom, from Premiere Digital Services. The film stars Jim Caviezel as a former U.S. federal agent who dedicates his life to freeing children from traffickers.

The No. 4 digital title was Universal’s 2000 live-action How the Grinch Stole Christmas.

No. 5 was Vertical’s After Everything, the fifth chapter in the soapy “After” franchise about a pair of young lovers.

Top DVD and Blu-ray Disc Rentals, Redbox Kiosks, Week Ended Nov. 12:

  1. Barbie — Warner
  2. The Last Voyage of the Demeter — Universal
  3. Strays — Universal
  4. My Big Fat Greek Wedding 3 — Universal
  5. Fast X — Universal
  6. Us or Them — Screen Media
  7. John Wick: Chapter 4 — Lionsgate
  8. Ocean Deep — Screen Media
  9. The Hill — Universal
  10. Ruby Gillman, Teenage Kraken — Universal/DreamWorks

 

Top Digital (VOD + Sellthrough), Redbox On Demand, Week Ended Nov. 12:

  1. The Retirement Plan — Vertical
  2. Sound of Freedom — Angel Studios
  3. Strays — Universal
  4. How the Grinch Stole Christmas (2000) — Universal
  5. After Everything — Vertical
  6. The Grinch — Universal
  7. The Super Mario Bros. Movie — Universal
  8. The Good Mother — Vertical
  9. Fast X — Universal
  10. Among Wolves — Shout! Studios

 

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