Page 1

STINGRAY First Quarter Highlights Stingray Reports First Quarter 2022 Results • Revenues increased 23.9 % to $ 64.8 million from $ 52.3 million , reflecting the gradual easing of COVID - 19 restrictions and the return to normal commercial operations • • Organic growth of close to 2.0 % in Broadcast and Recurring Commercial Music revenues ( ¹ ) , excluding the impact of foreign exchange , and strong organic growth of 11.6 % in the United States Adjusted EBITDA ( 2 ) decreased slightly to $ 24.2 million from $ 25.5 million • Cash flow from operating activities decreased 57.0 % to $ 16.3 million compared to $ 38.0 million • Adjusted free cash flow ( 4 ) decreased 16.8 % to $ 15.0 million , or $ 0.21 per share , compared to $ 18.0 million or $ 0.25 per share • Net debt to Pro Forma Adjusted EBITDA ( 5 ) ratio of 2.88x • 643,000 shares repurchased and cancelled during the quarter for a total of $ 4.7 million 572,000 streaming subscribers , up 31.2 % over Q1 2021 MONTREAL , Aug. 03 , 2021 ( GLOBE NEWSWIRE ) Stingray Group Inc. ( TSX : RAY.A ; RAY.B ) ( the " Corporation " ; " Stingray " ) , a leading distributor of audio and video music brands in the world , today announced its financial results for the first quarter of Fiscal 2022 , ended June 30 , 2021 . Financial Highlights ( in thousands of dollars , except per share data ) Revenues Adjusted EBITDA ( 2 ) Net income Per share - diluted ( $ ) Adjusted Net income ( 3 ) Per share - diluted ( $ ) ( 3 ) Cash flow from operating activities Adjusted free cash flow ( 4 ) Three months ended Q1-2022 64,808 June 30 Q1-2021 52,293 23.9 % 24,155 25,481 ( 5.2 ) 4,200 0.06 11,238 7,021 ( 40.2 ) 0.10 ( 40.0 ) 13,509 ( 16.8 ) 0.16 0.18 ( 11.1 ) 16,337 37,993 ( 57.0 ) 15,007 18,045 ( 16.8 ) 1. Recurring Commercial Music revenues include subscriptions and usage in addition to fixed fees charged to our customers on a monthly , quarterly and annual basis for continuous music services and excludes credits to clients related to the COVID - 19 pandemic . Non - recurring revenues mainly include advertising , support , installation , equipment , one - time fees and discontinued operations . 2. Adjusted EBITDA is a non - IFRS measure and is defined as net income ( loss ) before net finance expense ( income ) , change in fair value of investments , income taxes , depreciation and write - off of property and equipment , depreciation of right - of - use assets , amortization of intangible assets , share - based compensation , performance and deferred share unit expense , and acquisition , legal , restructuring and other expenses ( income ) . 3. Adjusted Net income is a non - IFRS measure and is defined as net income before change in fair value of investments , mark - to - market losses ( gains ) on derivative instruments , amortization of intangible assets , share - based compensation , performance and deferred share unit expense , and acquisition , legal , restructuring and other expenses ( income ) , net of related income taxes . 4. Adjusted free cash flow is a non - IFRS measure and is defined as cash flow from operating activities less capital expenditures , interest paid and repayment of lease liabilities , plus acquisition , legal , restructuring and other expenses ( income ) , and adjusted for unrealized gain or loss on foreign exchange and for the net change in non - cash working capital items . 5. Pro Forma Adjusted EBITDA is calculated as the Corporation's last twelve months Adjusted EBITDA , plus synergies and pro forma Adjusted EBITDA for the months prior to the acquisitions which are not already reflected in the results Reporting on Q1 results , Stingray's President , co - founder and CEO Eric Boyko was very pleased , stating : " This quarter was marked by a strong 24 % increase in revenue correlated with a gradual return to normal commercial operations , particularly in Radio . Overall organic growth for the quarter was close to 2 % while the U.S. segment reached an impressive 11.6 % . The diminishing favourable impact of the Canada Emergency Wage Subsidy ( " CEWS " ) and a return to more sustainable operating expenses this quarter when compared to the successful implementation of significant cost saving measures last year translated into a slight decrease in Adjusted EBITDA to $ 24.2 million .