Creative Realities, a leading force in digital signage and media solutions, has unveiled projections indicating a substantial boost in revenue for the second half of 2023. This disclosure was made during a conference call detailing results for the three and nine months concluding on September 30, 2023.
In the wake of this announcement, Creative Realities witnessed a surge in its stock value.
At the time of this publication, Creative Realities Inc stock (CREX) has witnessed a surge.
CREX
Creative Realities Inc
Current Price: $1.73
Change : +0.36
Change (%): (26.23%)
Volume: 87.1K
Source: Tomorrow Events Market Data
The company projects an unprecedented surge in revenues, with expectations set between $11.3 million and $12.3 million for the third quarter, and between $16.0 million and $17.0 million for the fourth quarter of 2023. These projections align seamlessly with analyst consensus estimates for the combined latter half of the year. This foretells a historic second half and fiscal year in terms of revenues, ranging between $27.3 million and $29.3 million, and between $46.4 million and $48.4 million, respectively.
Rick Mills, Chief Executive Officer of Creative Realities, conveyed his confidence in the company’s performance, stating, “As we approach the end of the fiscal year, we have enhanced visibility and confidence into our anticipated full year results, which we anticipate will meet consensus analyst expectations for the second half and full year 2023 despite a previously disclosed shift in timing of revenue recognition on installation activities associated with the deployment of a large media network for an experiential leisure client. The revenue ramp associated with that particular contract shifted as installation activities began in October 2023 following resolution of a prior supply chain issue. The total revenue commitment of this engagement remains intact – it is just timing that has changed.”
Furthermore, Mills reaffirmed the company’s earlier projection of forward 12-month revenues, spanning from the third quarter of 2023 to the second quarter of 2024, to be in the range of $60 million to $80 million. He emphasized that they expect notable enhancements in profit margins, synergizing with their debt reduction plan to yield substantial free cash flow and a reduction in their leverage ratio.
As of September 30, 2023, Creative Realities reported a cash balance of $8.4 million, signifying a notable increase of $5.1 million from the preceding June 30, 2023 position of $3.3 million. The company bolstered its financial standing by raising net proceeds of approximately $5.4 million through a public offering of common stock on August 17, 2023. The lion’s share of these proceeds is earmarked for debt repayment. In the course of 2023, Creative Realities has already retired around $4.4 million in debt principal, in line with its declared strategy to trim its debt and enhance its leverage ratio.
Looking ahead, Creative Realities is set to furnish updated guidance on Adjusted EBITDA and Backlog for the remainder of the year, in addition to issuing fresh guidance for Revenue and Adjusted EBITDA for 2024. This information will be disseminated during the earnings conference call for the three and nine months concluded on September 30, 2023. The call is scheduled for Friday, November 10, 2023, commencing at 9:00 am Eastern Time. The proceedings will comprise prepared remarks and materials from company management, followed by a live Q&A session, and will be overseen by Rick Mills, Chief Executive Officer, and Will Logan, Chief Financial Officer.
