EFTA01116401.pdf

REGANARTS May 2015 Performance Report July 7, 2015 EFTA01116401 Business Highlights ISIS and My Fight/Your Fight both appeared on the NY Times bestsellers lists, ReganArts' first national hits Rhonda Rousey (My Fight), featured on the cover of Sports Illustrated and ESPN Magazine, advanced more than 87,000 copies Pre-publication marketing is accelerating for a very exciting Fall list, especially for lead title Khloe Kardashian's Strong Looks Better Naked Other major Fall releases include: Linda Gray's The Road to Happiness (is Always Under Construction) Drone Warrior: The Untold Story of America's Most Secretive Fight Against Terror (subject to government approval) Empire: The Unofficial Untold Story Sold audio rights for 15 books for $66,000 and licensed 3 books into 24 languages for $80,000 Two major awards for cover designs to be announced in October EFTA01116402 Financial Highlights Sales are on track to meet budget Costs are under budget and forecasted to be +30% favorable Cash receipts impacted by unfavorable trading terms with S&S, but this is largely timing Bottom-line cash is $.8M - $1.0M better than forecasted ($4.2M) No substantial inventory or author advance write-off identified as yet EFTA01116403  Revenue performance REPORTED REVENUE JAN FEB MAR APR MAY YID FY FORECAST FY BUDGET Gross Revenue -- North America $ 32,375 $ 151,816 $ 670,291 $ 878,459 $ 1,352,677 $ 3,085,618 $ 7,200,000 $ 7,600,000 Returns -- North America $ 8,218 $ 24,127 $ 32,235 $ 21,214 $ 61,463 $ 147,257 $ 1,700,000 $ 1,748,000 Net Revenue -- North America $ 24,157 $ 127,689 $ 638,056 $ 857,245 $ 1,291,214 $ 2,938,361 $ 5,500,000 $ 5,852,000 Gross Units -- North America 4,186 18,259 53,674 64,450 95,007 235,576 Returns Units -- North America 667 1,727 2,389 1,586 4,722 11,091 eBook Sales $ 11,961 $ 34,588 $ 26,730 $ 46,126 $ 119,405 Titles published 1 5 6 6 18 43 FY Forecast Returns includes $755,000 reserve for returns EFTA01116404 Cash revenue forecast CASH REVENUE FORECAST (NET OF DISTRIBUTION/ALLOWANCES/RETURNS/DEDUCTIONS} Jan Feb Mar LtE May Jan - May Cash Revenue• $ 39,551 $ 180,967 $ 21,234 $ 36,094 $ 24,745 $ 302,591 Jun Jul iiii Seo $ 64,217 $ 700,000 $ 835,000 $ 165,000 Oct Nov Dec YID EST. BUDGET $ (150,000) $ 50,000 $ 745,000 $ 2,711,808 $ 5,149,760 S&S Payment Terms: Gross revenue paid 90 days end of month, less actual returns, 20% reserve for returns, commissions, and other fees deducted 30 days end of month EFTA01116405 Net Cash Flow JAN-MAY 2015 FY FORECAST BUDGET Cash Inflow $ 302,591 $ 2,711,808 $ 5,149,760 Inventory spend $ 472,236 $ 1,000,000 $ 1,064,000 Advances pa id $ 1,127,643 $ 2,100,000 $ 4,000,000 Direct expenses $ 1,171,068 $ 3,000,000 $ 4,200,000 Ca pEx $ 500,000 $ 240,000 Plant expense $ 169,989 $ 340,000 $ 750,000 Net Cash Flow $ (2,638,345) $ (4,228,192) $ (5,104,240) EFTA01116406 Bestsellers and key accounts Top titles My Fight, Your Fight $ 1,268,913 ISIS $ 303,081 Out Came the Sun $ 272,091 Top Accounts Barnes & Noble $ 1,147,820 Amazon $ 498,226 Baker & Taylor $ 314,705 *As of 6/30/12 EFTA01116407