10-Q
RLJ ENTERTAINMENT, INC. filed this Form 10-Q on 11/09/2017
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RLJ Entertainment, Inc.

 

Notes To Consolidated Financial Statements

(Unaudited)

 

Major classes of line items constituting loss from discontinued operations, net of income taxes are:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues

 

$

 

 

$

626

 

 

$

 

 

$

7,769

 

Cost of Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Royalty expense

 

 

 

 

 

(40

)

 

 

 

 

 

(195

)

Manufacturing and fulfillment

 

 

 

 

 

(532

)

 

 

 

 

 

(6,223

)

Selling expenses

 

 

 

 

 

(129

)

 

 

 

 

 

(2,280

)

General and administrative expenses

 

 

 

 

 

(561

)

 

 

 

 

 

(986

)

Depreciation and amortization

 

 

 

 

 

(94

)

 

 

 

 

 

(1,067

)

Loss on disposal of fixed assets

 

 

 

 

 

(187

)

 

 

 

 

 

(187

)

Loss before provision for income taxes

 

 

 

 

 

(917

)

 

 

 

 

 

(3,169

)

Provision for income taxes

 

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of

   income taxes

 

$

 

 

$

(917

)

 

$

 

 

$

(3,169

)

 

There are no income taxes allocable to the discontinued operations as the discontinued operations reside in the U.S. for which there is no tax provision as a result of the overall U.S. operating loss for tax purposes.

Operating and investing cash flows of the discontinued operations are as follows:

 

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2017

 

 

2016

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss from discontinued operations

 

$

 

 

$

(3,169

)

Adjustments to reconcile net loss to net cash used in operating

   activities of discontinued operations:

 

 

 

 

 

 

 

 

Royalty expense

 

 

 

 

 

195

 

Depreciation and amortization

 

 

 

 

 

1,067

 

Loss on disposal of assets

 

 

 

 

 

 

187

 

Stock-based compensation expense

 

 

 

 

 

35

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

 

 

 

937

 

Inventories, net

 

 

 

 

 

2,417

 

Investments in content, net

 

 

 

 

 

(195

)

Prepaid expenses and other assets

 

 

 

 

 

1,011

 

Accounts payable and accrued liabilities

 

 

 

 

 

(5,635

)

Deferred revenue

 

 

 

 

 

(697

)

Net cash used in operating activities of

   discontinued operations

 

$

 

 

$

(3,847

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Capital expenditures

 

$

 

 

$

(5

)

Net cash used in investing activities of

   discontinued operations

 

$

 

 

$

(5

)

 

 

13


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