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Creative Realities releases Q3, 9 months financial results

Retail technology company Creative Realities released financial results for Q3 and nine months ended Sept. 30, 2014.

December 3, 2014

Retail technology company Creative Realities released financial results for Q3 and nine months ended Sept. 30, 2014. 

Highlights for Q3 2014 include an interactive shopping experience the company deployed for a global fashion designer at a department store in New York City. The company also developed a kiosk that delivers predictive video experiences with push to mobile features. Additionally, the New York-based firm completed a 13-door pilot for interactive shopping kiosks with the ability to print and email coupons as well as redeem them while at the supermarket chain.

Paul Price, chief executive officer of Creative Realities, said in a company announcement, "Our third quarter results include only five weeks of the combined entity (the company merged with digital signage provider Wireless Ronin Technologies earlier this year), so while it may be hard to gauge our progress from our public filings, we believe we have made significant year-over-year and quarterly improvements. The combination of our software, consulting and design services, and the manner in which we deploy and support a broad range of marketing technology solutions has been a key differentiator and we've been successful in winning several competitive bids. Our fourth quarter is expected to be better, as we'll have a full quarter to show with both companies, and we expect to be at or near break-even by year-end. Our team is focused on realizing the synergies this merger brought, and through integration efforts thus far, we reduced our payroll related expenses by more than 25 percent, among other actions, with future additional savings to come as we continue to execute our plan. Every member of our team remains committed to our customers and enhancing value for all stakeholders."

A comparison of three months ended Sept. 30, 2014, shows a 7.7-percent increase in net sales at $4.4 million, with the same period a reported $4.1 million from the previous year. Gross profit margin increased 29.9 percent in the 2014 period compared to 14.3 percent in the 2013 period. The increase was driven by product shift mix and higher margin services associated with the WRT business and merger, the company said.

Operating expenses increased by $1.9 million at $2.8 million for three months ended Sept. 30, 2014, compared to $0.8 million for the same period in 2013.  

A comparison of nine months ended Sept. 30, 2014, reveals a 23.3-percent increase in net sales, at $9.7 million compared to $7.9 million for the same period in 2013. The increase was driven by higher deployment activities and improvements across several products, the company said.

Gross profit margin for the same nine months was 20 percent compared to 7.5 percent in 2013. Total operating expenses increased to $.4.9 million, up $2.2 million from the previous nine months ended Sept. 30, 2013, at $2.7 million. The increased was accounted for by increases in sales and marketing expenses, research and development expenses and higher depreciation and amortization expense for the comparable periods, the company reported. 

"From a financial perspective, our key near-term priorities are to increase our sales and pipeline; pursue higher-margin business; and lower expenses through integration and restructuring benefits and more efficient capital allocation," Price said. "Operationally, we are focused on productivity and ensuring that we have the best operations and infrastructure to support our clients. We are confident of a strong 2015 as our pipeline continues to grow. I believe that Creative Realities is better positioned to become the world leader in helping retailers and brands use the latest technologies to improve shopping experiences and look forward to updating our shareholders on our progress."