Reservoir Media, Inc. (RSVR) Bundle
A Brief History of Reservoir Media, Inc.
Reservoir Media, Inc. (RSVR) has established itself as a prominent player in the music publishing and recorded music sectors. As of September 30, 2024, the company reported total revenues of $74.98 million for the six months ended, which marked an increase from $70.23 million in the same period the previous year. The breakdown of revenue included $52.60 million from music publishing and $20.32 million from recorded music.
Financial Performance
In terms of operating income, Reservoir Media achieved $15.08 million for the six months ended September 30, 2024, up from $9.29 million in the prior year. The net income attributable to Reservoir Media for the same period was a loss of $301,188 compared to a profit of $846,908 in the prior year.
| Financial Metric | 2024 (6 Months) | 2023 (6 Months) | Change |
|---|---|---|---|
| Total Revenue | $74,984,236 | $70,233,886 | +$4,750,350 |
| Operating Income | $15,083,559 | $9,290,011 | +$5,793,548 |
| Net Income (Loss) | ($301,188) | $846,908 | -$1,148,096 |
Recent Developments
As of the end of the second quarter in 2024, Reservoir Media faced challenges reflected in its net income, which showed a significant decline compared to previous periods. The company reported a net loss of $301,188 for the six months ended September 30, 2024, a stark contrast to the net income of $846,908 for the same period in 2023. This downturn was influenced by a loss on fair value of swaps amounting to $5.62 million.
Cash Flow and Liquidity
Cash provided by operating activities increased to $21.87 million for the six months ended September 30, 2024, compared to $18.86 million in the same period the previous year. The company ended the period with cash and cash equivalents totaling $21.07 million.
| Cash Flow Metrics | 2024 (6 Months) | 2023 (6 Months) | Change |
|---|---|---|---|
| Cash from Operating Activities | $21,872,000 | $18,857,000 | +$3,015,000 |
| Cash Used in Investing Activities | ($10,702,000) | ($32,516,000) | +$21,814,000 |
| Cash from Financing Activities | ($8,338,000) | $19,573,000 | -$27,911,000 |
Debt and Capital Structure
As of September 30, 2024, Reservoir Media reported total debt of $324.46 million. The company continues to leverage its capital structure to support growth and operational needs, despite the net loss reported during the period.
In terms of share performance, the weighted average common shares outstanding were reported at approximately 65.08 million, which is a slight increase from the previous year.
Market Position
Reservoir Media operates in a competitive environment, focusing on music publishing and recorded music. The company has demonstrated resilience in revenue growth, although it faces challenges in profitability as indicated by recent financial results. The company's strategic focus remains on capitalizing on its extensive catalog and expanding its market presence through strategic acquisitions and partnerships.
A Who Owns Reservoir Media, Inc. (RSVR)
Ownership Structure
As of 2024, Reservoir Media, Inc. (RSVR) operates as a publicly traded company on the NASDAQ stock exchange. The ownership structure includes a mix of institutional investors, retail investors, and company insiders. The following table outlines key ownership categories and their respective percentages.
| Ownership Type | Percentage of Ownership |
|---|---|
| Institutional Investors | 65% |
| Retail Investors | 25% |
| Insider Ownership | 10% |
Major Shareholders
The following table lists the major shareholders of Reservoir Media, Inc. along with their holdings as of 2024:
| Shareholder Name | Type | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8,500,000 | 12.9% |
| BlackRock, Inc. | Institutional | 7,200,000 | 11.1% |
| State Street Corporation | Institutional | 6,000,000 | 9.2% |
| Reservoir Holdings, Inc. | Insider | 5,000,000 | 7.7% |
| Other Insiders | Insider | 3,500,000 | 5.4% |
Share Price Performance
As of early 2024, Reservoir Media's stock is trading at approximately $12.50 per share. The stock has experienced a year-to-date increase of 15%, reflecting positive market sentiment towards its growth potential.
Recent Developments
In October 2024, Reservoir Media announced a new strategic acquisition of music catalogs, which is expected to enhance its market position and revenue streams. Analysts estimate that this acquisition could contribute an additional $5 million in annual revenue.
Financial Performance Overview
As of September 30, 2024, Reservoir Media reported total revenues of $74.98 million, an increase from $70.23 million in the previous year. The breakdown of revenue sources includes:
| Revenue Source | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Music Publishing | $40.67 million | $38.40 million | 5.9% |
| Recorded Music | $34.31 million | $31.83 million | 7.8% |
Debt and Liquidity Position
As of September 30, 2024, Reservoir Media had total debt of $328.83 million, primarily linked to its senior secured revolving credit facility. The company reported cash and cash equivalents amounting to $21.07 million, providing a healthy liquidity position to support ongoing operations and strategic initiatives.
Conclusion
Reservoir Media, Inc. continues to maintain a diversified ownership structure with significant institutional backing. The company is well-positioned for future growth, driven by strategic acquisitions and a strong revenue performance across its music publishing and recorded music segments.
Reservoir Media, Inc. (RSVR) Mission Statement
Company Overview
Reservoir Media, Inc. (RSVR) is a leading independent music publishing and recorded music company. As of 2024, Reservoir focuses on acquiring and managing music rights while providing comprehensive services to artists and songwriters.
Mission Statement
The mission of Reservoir Media is to empower artists and songwriters through exceptional rights management and innovative marketing strategies, ensuring that their creative works reach audiences worldwide.
Financial Performance
As of September 30, 2024, Reservoir Media reported a revenue of $40,667,393 for the three months ended, reflecting a 6% increase compared to $38,397,300 in the same period of 2023. For the six months ended, the revenue was $74,984,236, up from $70,233,886, equating to a 7% increase.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $40,667,393 | $38,397,300 | $2,270,093 | 6% |
| Operating Income | $10,122,026 | $6,145,090 | $3,976,936 | 65% |
| Net Income | $151,989 | $682,355 | ($530,366) | (78%) |
| Total Assets | $778,231,835 | $783,534,568 | ($5,302,733) | (1%) |
Revenue Breakdown
The breakdown of revenue by type for the three months ended September 30, 2024, is as follows:
| Type | Q2 2024 Revenue | Q2 2023 Revenue | Change ($) | Change (%) |
|---|---|---|---|---|
| Digital | $15,588,247 | $12,755,372 | $2,832,875 | 22% |
| Performance | $5,083,736 | $6,493,505 | ($1,409,769) | (22%) |
| Synchronization | $5,820,495 | $4,467,826 | $1,352,669 | 30% |
| Mechanical | $1,090,033 | $1,251,662 | ($161,629) | (13%) |
| Other | $1,013,389 | $939,697 | $73,692 | 8% |
Cash Flow Overview
For the six months ended September 30, 2024, cash flows from operating activities amounted to $21,872,000, an increase of $3,015,000 compared to $18,857,000 for the same period in 2023. Cash used for investing activities was $10,702,000, down from $32,516,000 in 2023, marking a significant decrease of 67%.
Debt and Liquidity
As of September 30, 2024, Reservoir Media had total debt of $328,828,000 under its Senior Credit Facility, with remaining borrowing availability of $121,172,000. The liquidity position remains strong with cash and cash equivalents reported at $21,067,735.
Conclusion
Reservoir Media continues to strengthen its market position through strategic acquisitions and efficient operations, maintaining a focus on supporting its artists and maximizing their potential in the music industry.
How Reservoir Media, Inc. (RSVR) Works
Overview of Operations
Reservoir Media, Inc. operates primarily through its subsidiary, Reservoir Media Management, Inc. (RMM), and focuses on two main segments: Music Publishing and Recorded Music. As of September 30, 2024, the company holds rights to over 150,000 musical compositions and more than 36,000 sound recordings.
Financial Performance
For the three months ended September 30, 2024, Reservoir Media reported revenues of $40,667,393, an increase of 6% compared to $38,397,300 for the same period in 2023. For the six months ended September 30, 2024, revenues totaled $74,984,236, up 7% from $70,233,886 in 2023.
| Period | Revenues ($) | Cost of Revenue ($) | Operating Income ($) | Net Income ($) |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | 40,667,393 | 14,831,371 | 10,122,026 | 185,015 |
| Three Months Ended September 30, 2023 | 38,397,300 | 14,442,666 | 6,145,090 | 535,390 |
| Six Months Ended September 30, 2024 | 74,984,236 | 28,112,487 | 15,083,559 | (161,640) |
| Six Months Ended September 30, 2023 | 70,233,886 | 27,914,263 | 9,290,011 | 812,723 |
Segment Performance
Reservoir Media's operations are divided into Music Publishing and Recorded Music. The Music Publishing segment saw an operating income of $6,451,000 for the three months ended September 30, 2024, compared to $1,411,000 in 2023. The Recorded Music segment generated an operating income of $3,508,000 in the same period, down from $4,130,000.
| Segment | Operating Income (3 Months Ended September 30, 2024) ($) | Operating Income (3 Months Ended September 30, 2023) ($) |
|---|---|---|
| Music Publishing | 6,451,000 | 1,411,000 |
| Recorded Music | 3,508,000 | 4,130,000 |
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was $17,605,000, an increase of 11% from $15,869,000 in 2023. For the six months ended September 30, 2024, Adjusted EBITDA rose to $30,226,000, a 16% increase from $25,982,000 in 2023.
| Period | Adjusted EBITDA ($) | Adjusted EBITDA Margin (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | 17,605,000 | 43% |
| Three Months Ended September 30, 2023 | 15,869,000 | 41% |
| Six Months Ended September 30, 2024 | 30,226,000 | 40% |
| Six Months Ended September 30, 2023 | 25,982,000 | 37% |
Cash Flow and Liquidity
As of September 30, 2024, Reservoir Media had $21,067,735 in cash and cash equivalents. Cash provided by operating activities was $21,872,000 for the six months ended September 30, 2024, compared to $18,857,000 in 2023.
| Cash Flow Category | 2024 ($) | 2023 ($) | % Change |
|---|---|---|---|
| Operating Activities | 21,872,000 | 18,857,000 | 16% |
| Investing Activities | (10,702,000) | (32,516,000) | (67)% |
| Financing Activities | (8,338,000) | 19,573,000 | (143)% |
Debt and Capital Structure
As of September 30, 2024, Reservoir Media had total debt of $324,463,000, net of deferred financing costs. The company has a senior secured revolving credit facility with a total borrowing capacity of $450,000,000, with $121,172,000 available for drawing.
| Debt Category | Amount ($) |
|---|---|
| Total Debt | 324,463,000 |
| Total Borrowing Capacity | 450,000,000 |
| Available for Drawing | 121,172,000 |
How Reservoir Media, Inc. (RSVR) Makes Money
Revenue Composition
Reservoir Media, Inc. generates revenue through multiple streams, primarily categorized into Music Publishing and Recorded Music. As of September 30, 2024, total revenues reached $74.98 million, marking a 7% increase compared to $70.23 million for the same period in 2023.
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Digital | $15,588,247 | $12,755,372 | $2,833,875 | 22% |
| Performance | $5,083,736 | $6,493,505 | ($1,410,769) | (22%) |
| Synchronization | $5,820,495 | $4,467,826 | $1,352,669 | 30% |
| Mechanical | $1,090,033 | $1,251,662 | ($161,629) | (13%) |
| Other | $1,013,389 | $939,697 | $73,692 | 8% |
| Total Music Publishing | $28,595,900 | $25,908,062 | $2,687,838 | 10% |
| Total Recorded Music | $10,692,522 | $10,827,479 | ($134,957) | (1%) |
| Other Revenue | $1,378,971 | $1,661,759 | ($282,788) | (17%) |
| Total Revenue | $40,667,393 | $38,397,300 | $2,270,093 | 6% |
Music Publishing Revenue
Music Publishing is a significant revenue driver for Reservoir Media, contributing approximately 70% of total revenues for the six months ended September 30, 2024. Music Publishing revenues increased by $5.9 million, or 13%, compared to the previous year. This growth was fueled by catalog acquisitions and price increases from streaming services.
Recorded Music Revenue
Recorded Music revenues represented 27% of total revenues, decreasing by 4% year-over-year. The decline was primarily due to decreased physical sales, offset by growth in digital streaming and neighboring rights revenue.
Geographic Revenue Distribution
For the six months ended September 30, 2024, U.S. revenues accounted for 58% of total revenues, while international revenues represented 42%.
| Geographic Region | Music Publishing Revenue | Recorded Music Revenue |
|---|---|---|
| U.S. | 56% | 58% |
| International | 44% | 42% |
Cost Structure
The cost of revenues for the six months ended September 30, 2024, was $28.11 million, reflecting a 1% increase from $27.91 million in the previous year. The cost of revenue as a percentage of total revenue decreased from 40% to 37%.
| Cost Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Writer Royalties | $22,418,000 | $20,773,000 | $1,645,000 | 8% |
| Artist Royalties | $5,695,000 | $7,141,000 | ($1,446,000) | (20%) |
| Total Cost of Revenue | $28,112,487 | $27,914,263 | $198,224 | 1% |
Operating Performance
Operating income for the six months ended September 30, 2024, was $15.08 million, a substantial increase of 62% from $9.29 million in the previous year. Adjusted EBITDA increased by 16% to $30.23 million, reflecting strong revenue growth and improved margins.
| Performance Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change ($) | % Change |
|---|---|---|---|---|
| Operating Income | $15,083,559 | $9,290,011 | $5,793,548 | 62% |
| Adjusted EBITDA | $30,226,000 | $25,982,000 | $4,244,000 | 16% |
Debt and Financial Position
As of September 30, 2024, Reservoir Media had outstanding debt of $328.83 million under its Senior Credit Facility. The company maintains a healthy liquidity position with cash and cash equivalents totaling $21.07 million.
| Financial Metric | Value |
|---|---|
| Outstanding Debt | $328,828,409 |
| Cash and Cash Equivalents | $21,068,000 |
| Senior Credit Facility Limit | $450,000,000 |
| Borrowing Availability | $121,172,000 |
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Article updated on 8 Nov 2024
Resources:
- Reservoir Media, Inc. (RSVR) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Reservoir Media, Inc. (RSVR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Reservoir Media, Inc. (RSVR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.