The blended entity that is Creative Realities and Wireless Ronin has filed its 2014 revenues and announced the departure of longtime CRI CEO Paul Price.
“We thank Mr. Price for his service, wish him well in his new endeavors and have full confidence in the senior team at the company for a seamless transition,” says Alec Machiels, Chairman of the Board.
That board has appointed John Walpuck as Creative Realities’ Interim Chief Executive Officer. Walpuck has served as Chief Operating and Financial Officer of CRI since the company was blended with Ronin, and Walpuck came from Ronin.
“We are very enthusiastic about moving forward with our experienced senior leadership team and strong client relationships,” says Walpuck. “During the last half year, the company was awarded and has completed and / or expanded several new / recurring projects with leading venue operators, retailers and well-known brands.”
Price will hang around for awhile as part of a transition process.
The New York-based company has not yet done formal SEC filings, but says for the year ended December 31, 2014, it anticipates reporting net sales of approximately $14 million as compared to approximately $11.6 million reported for the previous year. That’s a 20% bump.
On a pro forma basis, taking into account the results of Creative Realities, Inc. and Wireless Ronin Technologies, Inc. (“WRT”), and assuming the merger took place on January 1, 2014, the Company would have reported pro forma revenues of approximately $17 million for the year ended December 31, 2014. The pro forma results are non-GAAP financial metrics and are not meant to be considered in isolation or as a substitute for the comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Since the merger was completed in August 2014, Creative Realities has worked to integrate three companies (Creative Realities, WRT and Broadcast International, Inc.) while lowering its burn rate. To improve operating efficiency the Company has focused on a variety of initiatives including:
- realignment of its sales & marketing, account management and service delivery organizations;
- reduction of its recurring fixed cost structure;
- unifying / streamlining processes;
- and, integration of an updated ERP and account system infrastructure.
As a result of these actions, the Company is expected to be better positioned to grow while delivering improved client service, lower operating expenses and increased operating efficiencies.