Reservoir Media, Inc.
For the period ended Dec 31, 2024. Filed Feb 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 5, 2025
RSVR$10.21-1.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001410578-24-001717
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-05.
0001410578-25-000076
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 141 previous paragraphs and 146 current paragraphs.
83 unchanged; 49 reworded; 14 added; 6 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 30 previous and 30 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Recorded Music revenues increased by $1,965 thousand, or 20%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The primary driver of the increase in Recorded Music revenue was a royalty recovery related to underreported usage for a music catalog (the “royalty recovery”). In addition to the royalty recovery, Recorded Music revenue also benefited from continued growth at music streaming services and price increases at multiple music streaming services , and the acquisition of new catalogs.
Current report
Nine Months Ended December 31, 2024 vs. Nine Months Ended December 31, 2023
Current report
Total administration expenses increased by $1,576 thousand, or 17%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, driven by increases in the Music Publishing segment and Other administration expenses. Expressed as a percentage of revenues, administration expenses were 26% for the three months ended December 31, 2024 and the three months ended December 31, 2023.
Current report
Other administration expenses increased by $840 thousand, or 45%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to selling expenses associated with our artist management business, consisting mostly of manager compensation.
Current report
Other administration expenses increased by $920 thousand, or 26%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to selling expenses associated with our artist management business, consisting mostly of manager compensation.
Current report
Interest expense was relatively flat during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023.
Current report
Gain (Loss) on Fair Value of Swaps
Current report
Other income (expense), net
Current report
Other income, net during the three months ended December 31, 2024 consisted of a $104 thousand gain recorded on the disposal of an equity investment during the period (the “investment gain”) and the Company’s share of proceeds related to underreported usage for an acquired music catalog that pertained to periods prior to the Company’s acquisition of the music catalog, which amounted to $405 thousand (the “recovery income”). Other expense, net during the three months ended December 31, 2023 consisted primarily of a $991 thousand impairment to write-down an equity investment to its estimated fair value (the “investment write-down”). See Note 14 to the accompanying condensed consolidated financial statements for discussion about the investment gain and investment write-down.
Current report
Other income, net during the nine months ended December 31, 2024 consisted of the investment gain and the recovery income, partially offset by the Company’s share of loss recorded by an equity method investment (the “EMI loss”). Other income (expense), net during the nine months ended December 31, 2023 consisted primarily of the investment write-down.
Current report
Income Tax Expense (Benefit)
Current report
Net income was $5,312 thousand during the three months ended December 31, 2024 compared to a net loss $2,861 thousand during the three months ended December 31, 2023. The change in net income (loss) was driven primarily by the change in gain (loss) on fair value of swaps and improved gross margin, partially offset by the change in income tax expense (benefit) in the current period.
Current report
Recorded Music OIBDA increased by $1,744 thousand, or 37% during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Expressed as a percentage of revenue, Recorded Music OIBDA Margin increased to 53% during the three months ended December 31, 2024 from 47% during the three months ended December 31, 2023, primarily driven by revenue growth and higher gross margin.
Current report
Recorded Music OIBDA increased by $2,579 thousand, or 19% during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Expressed as a percentage of revenue, Recorded Music OIBDA Margin increased to 50% during the nine months ended December 31, 2024 from 44% in the nine months ended December 31, 2023, primarily driven by revenue growth and higher gross margin.
Removed paragraphs (6)
Previous report
Total administration expenses decreased by $1,787 thousand, or 9%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023, driven by decreases in the Music Publishing segment and the Recorded Music segment. The decrease in total administration expenses reflects the nonrecurrence of $2,700 thousand related to the Recoupable legal fee write-off. Expressed as a percentage of revenues, administration expenses decreased to 25% for the six months ended September 30, 2024 from 30% for the six months ended September 30, 2023, primarily due to the nonrecurrence of the Recoupable legal fee write-off.
Previous report
Interest expense decreased by $473 thousand, or 5%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023, driven primarily by the nonrecurrence of approximately $620 thousand incurred in connection with settlement of the Royalty Dispute, partially offset by changes in average borrowings and Term SOFR.
Previous report
Income Tax (Benefit) Expense
Previous report
Net income was $152 thousand during the three months ended September 30, 2024 compared to $682 thousand during the three months ended September 30, 2023. The decrease in net income was driven primarily by the loss on fair value of swaps, partially offset by the nonrecurrence of the Recoupable legal fee write-off and related interest associated with the Royalty Dispute, improved gross margin and an income tax benefit in the current period.
Previous report
Recorded Music OIBDA decreased by $124 thousand, or 2% during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Expressed as a percentage of revenue, Recorded Music OIBDA Margin was 51% during the three months ended September 30, 2024 and 2023.
Previous report
Recorded Music OIBDA increased by $834 thousand, or 9% during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Expressed as a percentage of revenue, Recorded Music OIBDA Margin increased to 48% during the six months ended September 30, 2024 from 43% in the six months ended September 30, 2023, driven primarily by the change in the mix of revenue by type to a lower percentage of physical sales.
Reworded paragraphs (49)
Previous wording
This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are not historical facts, and are intended to be covered by the safe harbor created thereby. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “predict,” “project,” “target,” “goal,” “intend,” “continue,” “could,” “may,” “might,” “shall,” “should,” “will,” “would,” “plan,” “possible,” “potential,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. In addition, any statements that refer to expectations, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current expectations, projections and beliefs based on information currently available. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the Company that may cause its actual business, financial condition, results of operations, performance and/or achievements to be materially different from any future business, financial condition, results of operations, performance and/or achievements expressed or implied by these forward-looking statements. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 30, 2024 and the Company’s other filings with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website atwww.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Current wording
This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are not historical facts, and are intended to be covered by the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “predict,” “project,” “target,” “goal,” “intend,” “continue,” “could,” “may,” “might,” “shall,” “should,” “will,” “would,” “plan,” “possible,” “potential,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. In addition, any statements that refer to expectations, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current expectations, projections and beliefs based on information currently available. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about the Company that may cause its actual business, financial condition, results of operations, performance and/or achievements to be materially different from any future business, financial condition, results of operations, performance and/or achievements expressed or implied by these forward-looking statements. Because some of these risks and uncertainties cannot be predicted or quantified, you should not rely on our forward-looking statements as predictions of future events. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 30, 2024 and the Company’s other filings with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website atwww.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should read this Quarterly Report with the understanding that actual…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Our Recorded Music business consists of three primary areas of sound recording ownership. First is the active marketing, promotion, distribution, sale and licensing of newly created frontline sound recordings from Current Artists that we own and control. This is a new area of focus for us and does not yet produce significant revenue. The second is the active marketing, promotion, distribution, sale and license of previously recorded and subsequently acquired Catalog recordings. The third is acquisition of full or partial interests in existing record labels, sound recording catalogs or income rights to a royalty stream associated with an established recording artist or producer contract in connection with existing sound recordings. Acquisition of these income participation interests are typically in connection with recordings that are owned, controlled, and marketed by other record labels.
Current wording
Our Recorded Music business consists of three primary areas of sound recording ownership. First is the active marketing, promotion, distribution, sale and licensing of newly created frontline sound recordings from current artists that we own and control (“Current Artist”). This is a new area of focus for us and does not yet produce significant revenue. The second is the active marketing, promotion, distribution, sale and license of previously recorded and subsequently acquired catalog recordings. The third is acquisition of full or partial interests in existing record labels, sound recording catalogs or income rights to a royalty stream associated with an established recording artist or producer contract in connection with existing sound recordings. Acquisition of these income participation interests are typically in connection with recordings that are owned, controlled, and marketed by other record labels.
Previous wording
Our Current Artist and Catalog recorded music businesses are both primarily managed by our Chrysalis Records label based in London and our Tommy Boy record label based in New York City. We also manage some select Catalog recorded music under our Philly Groove Records and Reservoir Records labels. We also own income participation interests in recordings by The Isley Brothers, The Commodores, Wisin and Yandel, Alabama and Travis Tritt, and an interest in the Loud Records catalog containing recordings by the Wu-Tang Clan. Our core Catalog includes recordings under the Chrysalis Records label by artists such as Sinéad O’Connor, The Specials, Generation X and The Waterboys, and De La Soul, as well as recordings under the Tommy Boy record label by artists such as House of Pain, Naughty By Nature, and Queen Latifah.
Current wording
Our Current Artist and catalog recorded music businesses are both primarily managed by our Chrysalis Records label based in London and our Tommy Boy record label based in New York City. We also manage some select Catalog recorded music under our Philly Groove Records and Reservoir Recordings labels. We also own income participation interests in recordings by The Isley Brothers, The Commodores, Wisin and Yandel, Alabama and Travis Tritt, and an interest in the Loud Records catalog containing recordings by the Wu-Tang Clan. Our core Catalog includes recordings under the Chrysalis Records label by artists such as Sinéad O’Connor, The Specials, Generation X and The Waterboys, and De La Soul, as well as recordings under the Tommy Boy record label by artists such as House of Pain, Naughty By Nature, and Queen Latifah.
Previous wording
Total revenues increased by $2,270 thousand, or 6%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023, driven by a 10% increase in Music Publishing revenue, partially offset by a 1% decrease in Recorded Music revenue. Music Publishing revenues represented 70% and 67% of total revenues for the three months ended September 30, 2024 and the three months ended September 30, 2023, respectively. Recorded Music revenues represented 26% and 28% of total revenues for the three months ended September 30, 2024 and the three months ended September 30, 2023, respectively. U.S. and international revenues represented 58% and 42%, respectively, of total revenues for the three months ended September 30, 2024. U.S. and international revenues represented 57% and 43%, respectively, of total revenues for the three months ended September 30, 2023.
Current wording
Total revenues increased by $6,828 thousand, or 19%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, driven by a 16% increase in Music Publishing revenue, a 20% increase in Recorded Music revenue and a 48% increase in Other revenue related to the Company’s artist management business. Music Publishing revenues represented 64% and 65% of total revenues for the three months ended December 31, 2024 and the three months ended December 31, 2023, respectively. Recorded Music revenues represented 28% of total revenues for the three months ended December 31, 2024 and the three months ended December 31, 2023. U.S. and international revenues represented 62% and 38%, respectively, of total revenues for the three months ended December 31, 2024. U.S. and international revenues represented 61% and 39%, respectively, of total revenues for the three months ended December 31, 2023.
Previous wording
Total digital revenues increased by $2,779 thousand, or 14%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to price increases at multiple music streaming services, as well as the impact of catalog acquisitions. Total digital revenues represented 56% and 52% of consolidated revenues for the three months ended September 30, 2024 and the three months ended September 30, 2023, respectively.
Current wording
Total digital revenues increased by $4,277 thousand, or 21%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to price increases at multiple music streaming services, as well as the impact of catalog acquisitions. Total digital revenues represented 59% and 58% of consolidated revenues for the three months ended December 31, 2024 and the three months ended December 31, 2023, respectively.
Previous wording
Music Publishing revenues increased by $2,688 thousand, or 10%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. This increase in Music Publishing revenue was mainly driven by acquisitions of catalogs and revenue from the existing catalog, which benefitted from price increases at multiple music streaming services that contributed to an increase in digital revenue. Additionally, synchronization revenue increased during the three months ended September 30, 2024, driven primarily by the timing of licenses. These factors were partially offset by decreases in performance revenue, partially due to the timing of hit songs, and mechanical revenue.
Current wording
Music Publishing revenues increased by $3,749 thousand, or 16%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. This increase in Music Publishing revenue was mainly driven by revenue from the existing catalog, which benefitted from price increases at multiple music streaming services that contributed to an increase in digital revenue, and the acquisitions of new catalogs. Additionally, mechanical revenue increased during the three months ended December 31, 2024, driven primarily by the strength of physical sales of controlled compositions as well as the acquisition of new catalogs.
Previous wording
On a geographic basis, U.S. Music Publishing revenues represented 56% of total Music Publishing revenues for the three months ended September 30, 2024 compared to 55% for the three months ended September 30, 2023. International Music Publishing revenues represented 44% of total Music Publishing revenues for the three months ended September 30, 2024 compared to 45% for the three months ended September 30, 2023.
Current wording
On a geographic basis, U.S. Music Publishing revenues represented 62% of total Music Publishing revenues for the three months ended December 31, 2024 compared to 61% for the three months ended December 31, 2023. International Music Publishing revenues represented 38% of total Music Publishing revenues for the three months ended December 31, 2024 compared to 39% for the three months ended December 31, 2023.
Previous wording
On a geographic basis, U.S. Recorded Music revenues represented 57% of total Recorded Music revenues for the three months ended September 30, 2024 compared to 54% for the three months ended September 30, 2023. International Recorded Music revenues represented 43% of total Recorded Music revenues for the three months ended September 30, 2024 compared to 46% for the three months ended September 30, 2023.
Current wording
On a geographic basis, U.S. Recorded Music revenues represented 49% of total Recorded Music revenues for the three months ended December 31, 2024 compared to 53% for the three months ended December 31, 2023. International Recorded Music revenues represented 51% of total Recorded Music revenues for the three months ended December 31, 2024 compared to 47% for the three months ended December 31, 2023.
Previous wording
Total revenues increased by $4,750 thousand, or 7%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023, driven by a 13% increase in Music Publishing revenue, partially offset by a 4% decrease in Recorded Music revenue. Music Publishing revenues represented 70% and 66% of total revenues for the six months ended September 30, 2024 and the six months ended September 30, 2023, respectively. Recorded Music revenues represented 27% and 30% of total revenues for the six months ended September 30, 2024 and the six months ended September 30, 2023, respectively. U.S. and international revenues represented 58% and 42%, respectively, of total revenues for the six months ended September 30, 2024. U.S. and international revenues represented 59% and 41%, respectively, of total revenues for the six months ended September 30, 2023.
Current wording
Total revenues increased by $11,578 thousand, or 11%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023, driven by a 14% increase in Music Publishing revenue and a 3% increase in Recorded Music revenue. Music Publishing revenues represented 68% and 66% of total revenues for the nine months ended December 31, 2024 and the nine months ended December 31, 2023, respectively. Recorded Music revenues represented 28% and 30% of total revenues for the nine months ended December 31, 2024 and the nine months ended December 31, 2023, respectively. U.S. and international revenues represented 60% and 40%, respectively, of total revenues for the nine months ended December 31, 2024. U.S. and international revenues represented 59% and 41%, respectively, of total revenues for the nine months ended December 31, 2023.
Previous wording
Total digital revenues increased by $6,449 thousand, or 17%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023, primarily due to price increases at multiple music streaming services, as well as the impact of catalog acquisitions. Total digital revenues represented 59% and 53% of consolidated revenues for the six months ended September 30, 2024 and the six months ended September 30, 2023, respectively.
Current wording
Total digital revenues increased by $10,726 thousand, or 18%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023, primarily due to price increases at multiple music streaming services, as well as the impact of catalog acquisitions. Total digital revenues represented 59% and 55% of consolidated revenues for the nine months ended December 31, 2024 and the nine months ended December 31, 2023, respectively.
Previous wording
Music Publishing revenues increased by $5,897 thousand, or 13%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. This increase in Music Publishing revenue was mainly driven by acquisitions of catalogs and revenue from the existing catalog, which benefitted from price increases at multiple music streaming services that contributed to an increase in digital revenue. Additionally, synchronization revenue increased during the six months ended September 30, 2024, driven primarily by the timing of licenses. These factors were partially offset by a decrease in performance revenue, partially due to the timing of hit songs.
Current wording
Music Publishing revenues increased by $9,646 thousand, or 14%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. This increase in Music Publishing revenue was mainly driven by revenue from the existing catalog, which benefitted from price increases at multiple music streaming services that contributed to an increase in digital revenue, and acquisitions of new catalogs. Additionally, synchronization revenue increased during the nine months ended December 31, 2024, driven primarily by the timing of licenses. These factors were partially offset by a decrease in performance revenue, partially due to the timing of hit songs.
Previous wording
On a geographic basis, U.S. Music Publishing revenues represented 57% of total Music Publishing revenues for the six months ended September 30, 2024 compared to 59% for the six months ended September 30, 2023. International Music Publishing revenues represented 43% of total Music Publishing revenues for the six months ended September 30, 2024 compared to 41% for the six months ended September 30, 2023.
Current wording
On a geographic basis, U.S. Music Publishing revenues represented 59% of total Music Publishing revenues for the nine months ended December 31, 2024 and the nine months ended December 31, 2023. International Music Publishing revenues represented 41% of total Music Publishing revenues for the nine months ended December 31, 2024 and the nine months ended December 31, 2023.
Previous wording
Recorded Music revenues decreased by $889 thousand, or 4%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. The decrease in Recorded Music revenue reflects a decrease in physical revenue after robust sales of new De La Soul releases in 2023. The decrease in physical revenue was partially offset by continued growth at music streaming services and price increases at multiple music streaming services, as well as increases in neighboring rights revenue and synchronization revenue.
Current wording
Recorded Music revenues increased by $1,076 thousand, or 3%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. The increase in Recorded Music revenue reflects the royalty recovery, continued growth at music streaming services and price increases at multiple music streaming services, as well as increases in neighboring rights revenue and synchronization revenue. These increases were partially offset by a decrease in physical revenue after robust sales of new De La Soul releases in 2023.
Previous wording
On a geographic basis, U.S. Recorded Music revenues represented 58% of total Recorded Music revenues for the six months ended September 30, 2024 compared to 54% for the six months ended September 30, 2023. International Recorded Music revenues represented 42% of total Recorded Music revenues for the six months ended September 30, 2024 compared to 46% for the six months ended September 30, 2023.
Current wording
On a geographic basis, U.S. Recorded Music revenues represented 55% of total Recorded Music revenues for the nine months ended December 31, 2024 compared to 54% for the nine months ended December 31, 2023. International Recorded Music revenues represented 45% of total Recorded Music revenues for the nine months ended December 31, 2024 compared to 46% for the nine months ended December 31, 2023.
Previous wording
Cost of revenues increased by $389 thousand, or 3%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Cost of revenues as a percentage of revenues decreased to 36% for the three months ended September 30, 2024 from 38% for the three months ended September 30, 2023.
Current wording
Cost of revenues increased by $1,846 thousand, or 14%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Cost of revenues as a percentage of revenues decreased to 36% for the three months ended December 31, 2024 from 37% for the three months ended December 31, 2023, reflecting a gross margin increase for Recorded Music and an increase in Other revenue.
Previous wording
Writer royalties and other publishing costs for the Music Publishing segment increased by $514 thousand, or 5%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Writer royalties and other publishing costs as a percentage of Music Publishing revenues decreased to 41% for the three months ended September 30, 2024 from 43% for the three months ended September 30, 2023. The increase in gross margin was due to the change in the mix of revenue by type and songwriting clients with their specific contractual royalty rates being applied to the revenues.
Current wording
Writer royalties and other publishing costs for the Music Publishing segment increased by $1,592 thousand, or 16%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Writer royalties and other publishing costs as a percentage of Music Publishing revenues was 44% for the three months ended December 31, 2024 and the three months ended December 31, 2023.
Previous wording
Artist royalties and other recorded music costs for the Recorded Music segment decreased by $125 thousand, or 4%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Artist royalties and other recorded music costs as a percentage of recorded music revenues was 29% for the three months ended September 30, 2024 and 2023.
Current wording
Artist royalties and other recorded music costs for the Recorded Music segment increased by $254 thousand, or 8%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Artist royalties and other recorded music costs as a percentage of recorded music revenues decreased to 28% for the three months ended December 31, 2024 from 31% for the three months ended December 31, 2023. The increase in Recorded Music gross margin was due primarily to the royalty recovery, which did not have a corresponding cost of revenue.
Previous wording
Cost of revenues increased by $198 thousand, or 1%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Cost of revenues as a percentage of revenues decreased to 37% for the six months ended September 30, 2024 from 40% for the six months ended September 30, 2023.
Current wording
Cost of revenues increased by $2,045 thousand, or 5%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Cost of revenues as a percentage of revenues decreased to 37% for the nine months ended December 31, 2024 from 39% for the nine months ended December 31, 2023, primarily reflecting a gross margin increase for Recorded Music and an increase in Other revenue.
Previous wording
Writer royalties and other publishing costs for the Music Publishing segment increased by $1,645 thousand, or 8%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Writer royalties and other publishing costs as a percentage of Music Publishing revenues decreased to 43% for the six months ended September 30, 2024 from 44% for the three months ended September 30, 2023. The increase in gross margin was due to the change in the mix of revenue by type and songwriting clients with their specific contractual royalty rates being applied to the revenues.
Current wording
Writer royalties and other publishing costs for the Music Publishing segment increased by $3,237 thousand, or 10%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Writer royalties and other publishing costs as a percentage of Music Publishing revenues decreased to 43% for the nine months ended December 31, 2024 from 44% for the three months ended December 31, 2023. The increase in gross margin was due to the change in the mix of revenue by type and songwriting clients with their specific contractual royalty rates being applied to the revenues.
Previous wording
Artist royalties and other recorded music costs for the Recorded Music segment decreased by $1,446 thousand, or 20%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Artist royalties and other recorded music costs as a percentage of recorded music revenues decreased to 28% for the six months ended September 30, 2024 from 34% for the six months ended September 30, 2023. The decrease in artist royalties and other recorded music costs and increase in gross margin were due primarily to the decrease in physical sales and change in the mix of sales by type to a lower percentage of physical sales, which carry higher costs than other types of revenue.
Current wording
Artist royalties and other recorded music costs for the Recorded Music segment decreased by $1,192 thousand, or 12%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Artist royalties and other recorded music costs as a percentage of recorded music revenues decreased to 28% for the nine months ended December 31, 2024 from 33% for the nine months ended December 31, 2023. The decrease in artist royalties and other recorded music costs and increase in gross margin were due primarily to the decrease in physical sales and change in the mix of sales by type to a lower percentage of physical sales, which carry higher costs than other types of revenue.
Previous wording
Amortization and depreciation expense increased by $216 thousand, or 3%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to the acquisition of additional music catalogs.
Current wording
Amortization and depreciation expense increased by $371 thousand, or 6%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to the acquisition of additional music catalogs.
Previous wording
Amortization and depreciation expense increased by $545 thousand, or 4%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023, primarily due to the acquisition of additional music catalogs.
Current wording
Amortization and depreciation expense increased by $915 thousand, or 5%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023, primarily due to the acquisition of additional music catalogs.
Previous wording
Music Publishing administration expenses decreased by $1,591 thousand, or 11%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Expressed as a percentage of revenues, Music Publishing administration expenses decreased to 24% for the six months ended September 30, 2024 from 30% for the six months ended September 30, 2023, primarily due to the nonrecurrence of the Recoupable legal fee write-off.
Current wording
Music Publishing administration expenses increased by $770 thousand, or 15%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Expressed as a percentage of revenues, Music Publishing administration expenses decreased to 22% for the three months ended December 31, 2024 from 23% for the three months ended December 31, 2023.
Previous wording
Recorded Music administration expenses increased by $115 thousand, or 5%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Expressed as a percentage of revenue, Recorded Music administration expenses increased to 21% for the three months ended September 30, 2024 from 20% for the three months ended September 30, 2023.
Current wording
Recorded Music administration expenses decreased by $34 thousand, or 2%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Expressed as a percentage of revenue, Recorded Music administration expenses decreased to 19% for the three months ended December 31, 2024 from 23% for the three months ended December 31, 2023, primarily due to a decrease in marketing expenses in the current period.
Previous wording
Total administration expenses decreased by $2,311 thousand, or 20%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease in total administration expenses reflects the nonrecurrence of $2,700 thousand related to the write-off of recoupable legal expenses and attorneys’ fees incurred in connection with the Royalty Dispute during the three months ended September 30, 2023, as described in Note 15 to the accompanying condensed consolidated financial statements (the “Recoupable legal fee write-off”). Expressed as a percentage of revenues, administration expenses decreased to 23% for the three months ended September 30, 2024 from 30% for the three months ended September 30, 2023, primarily due to the nonrecurrence of the Recoupable legal fee write-off.
Current wording
Total administration expenses decreased by $211 thousand, or 1%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. The decrease in administration expenses reflects the nonrecurrence of $2,700 thousand related to the write-off of recoupable legal expenses and attorneys’ fees incurred in connection with the Royalty Dispute during the nine months ended December 31, 2023, as described in Note 15 to the accompanying condensed consolidated financial statements (the “Recoupable legal fee write-off”), partially offset by an increase in Other administration expenses. Expressed as a percentage of revenues, administration expenses decreased to 26% for the nine months ended December 31, 2024 from 29% for the nine months ended December 31, 2023, primarily due to the nonrecurrence of the Recoupable legal fee write-off.
Previous wording
Music Publishing administration expenses decreased by $2,585 thousand, or 31%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Expressed as a percentage of revenues, Music Publishing administration expenses decreased to 20% for the three months ended September 30, 2024 from 33% for the three months ended September 30, 2023, primarily due to the nonrecurrence of the Recoupable legal fee write-off.
Current wording
Music Publishing administration expenses decreased by $821 thousand, or 4%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Expressed as a percentage of revenues, Music Publishing administration expenses decreased to 23% for the nine months ended December 31, 2024 from 28% for the nine months ended December 31, 2023, primarily due to the nonrecurrence of the Recoupable legal fee write-off.
Previous wording
Recorded Music administration expenses decreased by $276 thousand, or 5%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Expressed as a percentage of revenue, Recorded Music administration expenses decreased to 23% for the six months ended September 30, 2024 from 24% for the six months ended September 30, 2023.
Current wording
Recorded Music administration expenses decreased by $310 thousand, or 4%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Expressed as a percentage of revenue, Recorded Music administration expenses decreased to 22% for the nine months ended December 31, 2024 from 23% for the nine months ended December 31, 2023.
Previous wording
Interest expense decreased by $799 thousand, or 14%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023, driven primarily by the nonrecurrence of approximately $620 thousand incurred in connection with settlement of the Royalty Dispute. The Company’s interest expense will increase on the portions of its borrowings that are hedged beginning in October 2024, as its previous swap contracts matured on September 30 2024, and new swap contracts became effective on the same date.
Current wording
Interest expense increased by $405 thousand, or 8%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, driven primarily by an increase in borrowings and an increase in effective interest rates. The Company’s interest expense increased on the portions of its borrowings that are hedged beginning in October 2024, as its previous swap contracts matured on September 30. 2024, and new swap contracts became effective on the same date.
Previous wording
Loss on foreign exchange decreased by $4 thousand for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. This change was due to fluctuations in the two foreign currencies we are directly exposed to, namely British pound sterling and euro.
Current wording
Loss on foreign exchange increased by $76 thousand for the three months ended December 31, 2024 compared to the three months ended December 31, 2023. This change was due to fluctuations in the two foreign currencies we are directly exposed to, namely British pound sterling and euro.
Previous wording
Loss on foreign exchange increased by $26 thousand for the six months ended September 30, 2024 compared to the six months ended September 30, 2023. This change was due to fluctuations in the two foreign currencies we are directly exposed to, namely British pound sterling and euro.
Current wording
Loss on foreign exchange increased by $102 thousand for the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. This change was due to fluctuations in the two foreign currencies we are directly exposed to, namely British pound sterling and euro.
Previous wording
Loss on fair value of swaps was $5,617 thousand for the six months ended September 30, 2024. Gain on the fair value of swaps for the six months ended September 30, 2023 was $2,473 thousand. This change was due to marking to market our interest rate swap hedges and was driven primarily by the September 2024 decrease in SOFR, as well as the time value of the swaps that expired on September 30, 2024.
Current wording
Gain on fair value of swaps was $3,085 thousand for the three months ended December 31, 2024. Loss on the fair value of swaps for the three months ended December 31, 2023 was $4,248 thousand. This change was due to marking to market our current interest rate swap hedges.
Previous wording
Loss on fair value of swaps was $5,127 thousand for the three months ended September 30, 2024. Gain on the fair value of swaps for the three months ended September 30, 2023 was $628 thousand. This change was due to marking to market our interest rate swap hedges and was driven primarily by the September 2024 decrease in SOFR, as well as the time value of the swaps that expired on September 30, 2024.
Current wording
Loss on fair value of swaps was $2,532 thousand for the nine months ended December 31, 2024 compared to $1,774 thousand for the nine months ended December 31, 2023. This change was driven primarily by the September 2024 decrease in SOFR, as well as the time value of the swaps that expired on September 30, 2024, partially offset by marking to market our current interest rate swap hedges.
Previous wording
Income tax benefit was $153 thousand during the three months ended September 30, 2024 compared to income tax expense of $292 thousand during the three months ended September 30, 2023. Income tax benefit during the three months ended September 30, 2024 reflects excess tax benefits related to share-based compensation. Additionally, the change in income tax (benefit) expense reflects changes in the mix of income from multiple tax jurisdictions.
Current wording
Income tax expense was $1,987 thousand during the three months ended December 31, 2024 compared to income tax benefit of $1,227 thousand during the three months ended December 31, 2023. The change to income tax expense from income tax (benefit) was driven by the income before income taxes during the three months ended December 31, 2024. The effective income tax rate during the three months ended December 31, 2024 was 27.2% compared to 30.0% during the three months ended December 31, 2023. The change in effective income tax rate during these periods primarily reflects the amount and mix of income from multiple tax jurisdictions.
Previous wording
Income tax benefit was $447 thousand during the six months ended September 30, 2024 compared to income tax expense of $354 thousand during the six months ended September 30, 2023. Income tax benefit during the six months ended September 30, 2024 reflects excess tax benefits related to share-based compensation and an incremental tax benefit of approximately $103 thousand to the Company’s deferred tax liabilities related to certain international intangible assets. Additionally, the change in income tax (benefit) expense reflects changes in the mix of income from multiple tax jurisdictions.
Current wording
Income tax expense was $1,541 thousand during the nine months ended December 31, 2024 compared to income tax benefit of $(873) thousand during the nine months ended December 31, 2023. The change to income tax expense from income tax (benefit) was driven by the income before income taxes during the nine months ended December 31, 2024. The effective income tax rate during the nine months ended December 31, 2024 was 23.5% compared to 30.2% during the three months ended December 31, 2023. During the nine months ended December 31, 2024 the Company recorded excess tax benefits related to share-based compensation and an incremental tax benefit of approximately $103,000 related to certain international intangible assets. Additionally, the change in effective income tax rate during these periods also reflects the amount and mix of income from multiple tax jurisdictions.
Previous wording
Net loss was $301 thousand during the six months ended September 30, 2024 compared to the net income of $847 thousand during the six months ended September 30, 2023. The decrease in net income was driven primarily by the loss on fair value of swaps, partially offset by the nonrecurrence of the Recoupable legal fee write-off and related interest associated with the Royalty Dispute, improved gross margin and an income tax benefit in the current period.
Current wording
Net income was $5,010 thousand during the nine months ended December 31, 2024 compared to a net loss of $2,015 thousand during the nine months ended December 31, 2023. The change in net income (loss) was driven primarily by the nonrecurrence of the Recoupable legal fee write-off and related interest associated with the Royalty Dispute and improved gross margin, partially offset by the change in income tax expense (benefit) in the current period.
Previous wording
results of operations and trends in the same manner as our management and in evaluating our financial measures as compared to the financial measures of other similar companies, many of which present similar non-GAAP financial measures. However, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by our management about which items are excluded or included in determining these non-GAAP financial measures and, therefore, should not be considered as a substitute for net income, operating income or any other operating performance measures calculated in accordance with GAAP. Using such non-GAAP financial measures in isolation to analyze our business would have material limitations because the calculations are based on the subjective determination of our management regarding the nature and classification of events and circumstances. In addition, although other companies in our industry may report measures titled OIBDA, OIBDA margin, Adjusted EBITDA, and Adjusted EBITDA Margin, or similar measures, such non-GAAP financial measures may be calculated differently from how we calculate such non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, such non-GAAP financial measures should be considered alongside other financial performance measures and other financial results presented in accordance with GAAP. Reconciliations of OIBDA to operating income and EBITDA and Adjusted EBITDA to net income (loss) are provided below.
Current wording
We use certain financial information, such as OIBDA, OIBDA Margin, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, which are non-GAAP financial measures, which means they have not been prepared in accordance with U.S. GAAP. Reservoir’s management uses these non-GAAP financial measures to evaluate our operations, measure its performance and make strategic decisions. We believe that the use of these non-GAAP financial measures provides useful information to investors and others in understanding our results of operations and trends in the same manner as our management and in evaluating our financial measures as compared to the financial measures of other similar companies, many of which present similar non-GAAP financial measures. However, these non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by our management about which items are excluded or included in determining these non-GAAP financial measures and, therefore, should not be considered as a substitute for net income, operating income or any other operating performance measures calculated in accordance with GAAP. Using such non-GAAP financial measures in isolation to analyze our business would have material limitations because the calculations are based on the subjective determination of our management regarding the nature and classification of events and circumstances. In addition, although other companies in our industry may report measures titled OIBDA, OIBDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin, or similar measures, such non-GAAP financial measures may be calculated differently from how we calculate such non-GAAP financial measures, which reduces their overall usefulness as comparative measures. Because of these limitations, such non-GAAP financial measures should be considered alongside other financial performance measures and other financial results presented in accordance with GAAP. Reconciliations of OIBDA to operating income and EBITDA and Adjusted EBITDA to net income (loss) are provided below.
Previous wording
Consolidated OIBDA increased by $4,192 thousand, or 34%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023, driven by a $4,758 thousand increase in Music Publishing OIBDA, which included the impact of the non-recurrence of the Recoupable legal fee write-off, partially offset by a $442 thousand decrease in Other OIBDA and a $124 thousand decrease in Recorded Music OIBDA. Expressed as a percentage of revenue, OIBDA Margin increased to 41% for the three months ended September 30, 2024 from 32% for the three months ended September 30, 2023.
Current wording
OIBDA increased by $3,407 thousand, or 26%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023, driven by a $1,744 thousand increase in Recorded Music OIBDA and a $1,388 thousand increase in Music Publishing OIBDA. Expressed as a percentage of revenue, OIBDA Margin increased to 38% during the three months ended December 31, 2024 from 36% during the three months ended December 31, 2023.
Previous wording
Music Publishing OIBDA increased by $4,759 thousand, or 77%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Expressed as a percentage of revenue, Music Publishing OIBDA Margin increased to 38% in the three months ended September 30, 2024 from 24% in the three months ended September 30, 2023. The increases in Music Publishing OIBDA and OIBDA Margin reflect the nonrecurrence of the Recoupable legal fee write-off in as well as revenue growth and improved gross margin.
Current wording
Music Publishing OIBDA increased by $1,388 thousand, or 18%, during the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Expressed as a percentage of revenue, Music Publishing OIBDA Margin was 34% during the three months ended December 31, 2024 and the three months ended December 31, 2023.
Previous wording
Consolidated OIBDA increased by $6,338 thousand, or 29%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023, driven by a $5,842 thousand increase in Music Publishing OIBDA and an $834 thousand increase in Recorded Music OIBDA. Expressed as a percentage of revenue, OIBDA Margin increased to 37% for the six months ended September 30, 2024 from 31% for the six months ended September 30, 2023.
Current wording
OIBDA increased by $9,745 thousand, or 28%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023, driven by a $7,231 thousand increase in Music Publishing OIBDA and a $2,579 thousand increase in Recorded Music OIBDA. Expressed as a percentage of revenue, OIBDA Margin increased to 38% for the nine months ended December 31, 2024 from 33% for the nine months ended December 31, 2023.
Previous wording
Music Publishing OIBDA increased by $5,842 thousand, or 49%, during the six months ended September 30, 2024 compared to the six months ended September 30, 2023. Expressed as a percentage of revenue, Music Publishing OIBDA Margin increased to 34% in the six months ended September 30, 2024 from 25% in the six months ended September 30, 2023. The increases in Music Publishing OIBDA and OIBDA Margin reflect the nonrecurrence of the Recoupable legal fee write-off, as well as revenue growth and improved gross margin.
Current wording
Music Publishing OIBDA increased by $7,231 thousand, or 37%, during the nine months ended December 31, 2024 compared to the nine months ended December 31, 2023. Expressed as a percentage of revenue, Music Publishing OIBDA Margin increased to 34% in the nine months ended December 31, 2024 from 28% in the nine months ended December 31, 2023. The increases in Music Publishing OIBDA and OIBDA Margin reflect the nonrecurrence of the Recoupable legal fee write-off, as well as revenue growth and improved gross margin.
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Recorded Music revenues decreased by $135 thousand, or 1%, during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. The decrease in Recorded Music revenue reflects a decrease in physical revenue after robust sales of new De La Soul releases in 2023. The decrease in physical revenue was partially offset by an increase in neighboring rights revenue.
Previous report — wording carried elsewhere
(Loss) Gain on Fair Value of Swaps
Previous report — wording carried elsewhere
We use certain financial information, such as OIBDA, OIBDA Margin, EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin, which are non-GAAP financial measures, which means they have not been prepared in accordance with U.S. GAAP. Reservoir’s management uses these non-GAAP financial measures to evaluate our operations, measure its performance and make strategic decisions. We believe that the use of these non-GAAP financial measures provides useful information to investors and others in understanding our