Reservoir Media, Inc. Form 8-K Summary
Business Context and Reporting Period
Reservoir Media, Inc. filed this Current Report on August 5, 2021 under Item 9.01 in connection with its previously disclosed agreement to acquire Tommy Boy Music, LLC, a U.S.-based record label and music publishing company. Reservoir Holdings, Inc., a wholly owned subsidiary, entered into the purchase agreement on June 2, 2021.
The filing provides audited financial statements for Tommy Boy for the years ended December 31, 2020 and 2019, and unaudited pro forma condensed combined financial information for Reservoir as of March 31, 2021 and for the year ended March 31, 2021.
Financial Metrics
The filing text provided does not include the underlying financial statements or pro forma schedules and therefore does not provide clear values for revenue, net income, cash flow, margins, debt, liquidity, or other financial metrics.
- Tommy Boy audited balance sheets and statements of income, members’ equity, and cash flows are included in Exhibit 99.1.
- Reservoir’s unaudited pro forma condensed combined financial information is included in Exhibit 99.2.
Material Changes Versus the Prior Comparable Period
The filing does not present a narrative comparison of operating results. It furnishes Tommy Boy’s audited financial statements for 2020 and 2019 and pro forma combined information reflecting the proposed acquisition as of and for the periods specified.
Outlook, Risks, Contingencies, and Unusual Items
The pro forma information is expressly presented for illustrative purposes only. Reservoir states that it is not necessarily indicative of the actual financial condition or results that would have occurred had the acquisition taken place on the indicated dates, nor is it indicative of future results.
The filing does not provide acquisition purchase-price details, financing terms, management guidance, or additional transaction contingencies in the supplied text.
Facts Investors Should Verify
- Review Exhibit 99.1 for Tommy Boy’s audited 2019 and 2020 revenue, profitability, cash flows, assets, liabilities, and equity.
- Review Exhibit 99.2 for the pro forma impact of the Tommy Boy acquisition on Reservoir’s March 31, 2021 financial position and fiscal-year results.
- Verify the acquisition’s consideration, funding sources, closing status, accounting treatment, and purchase-price allocation in the transaction and subsequent filings.
- Assess the limitations of the pro forma presentation, which is illustrative and not predictive of future performance.