Executive Summary

Convention revenue grew 17.9% year over year to $6.10M, but the quarter swung to a net loss of $(0.98)M as margins compressed and operating costs rose with show expansion .
Gross margin fell to 25% from 37% YoY; average revenue per event halved due to four additional shows in new, developing markets ($871.6K vs. $1.72M YoY) .
Losses included $(0.43)M from the CONtv joint venture launched in March; management highlighted new revenue streams (CONtv, ComicConBox) and a China partnership as strategic growth drivers .
No formal numerical guidance was issued; the tour targeted 24 cities in 2015 alongside an expectation to produce 27 live events, positioning content and subscription launches as potential stock catalysts .

What Went Well and What Went Wrong

What Went Well
- Expanded schedule: seven events in Q1 (vs. three YoY) driving revenue growth to $6.10M; management cited “ventur[ing] into new and exciting markets” and on-track execution to “take Wizard World to the next level” .
- New monetization: CONtv launched Mar 3 bringing exclusive digital content; ComicConBox launched Apr 21 and first edition sold out within a week, indicating strong fan engagement .
- International expansion: China pop culture convention announced (May 30–June 1) via FansTang partnership—first venture outside North America .
What Went Wrong
- Unit economics deteriorated: average revenue per event fell to $871.6K from $1.72M YoY with added shows in developing markets; gross margin compressed to 25% from 37% .
- Cost escalation: operating expenses rose to $2.07M (vs. $1.22M YoY) on staffing growth (53 vs. 27 employees YoY) and higher advertising/marketing per event .
- Profitability turned negative: loss from operations $(0.55)M (vs. $0.69M income YoY) and net loss $(0.98)M (EPS $(0.02)), including $(0.43)M CONtv JV losses as the platform launched .

Financial Results

Year over Year (Q1 2014 → Q1 2015)

Metric	Q1 2014	Q1 2015
Revenue ($USD)	$5,173,198	$6,101,429
Gross Profit ($USD)	$1,913,171	$1,519,265
Gross Margin (%)	37%	25%
Operating Income ($USD)	$692,202	$(550,465)
Net Income ($USD)	$692,041	$(981,941)
EPS (Basic/Diluted, $)	$0.01 / $0.01	$(0.02) / $(0.02)

Sequential (Prior quarter Q3 2014 → Q1 2015)

Metric	Q3 2014	Q1 2015
Revenue ($USD)	$6,863,125	$6,101,429
Gross Profit ($USD)	$2,381,108	$1,519,265
Gross Margin (%)	35%	25%
Operating Income ($USD)	$668,174	$(550,465)
Net Income ($USD)	$537,804	$(981,941)
EPS (Basic/Diluted, $)	$0.01 / $0.01	$(0.02) / $(0.02)

Operational KPIs

KPI	Q1 2014	Q3 2014	Q1 2015
Events Hosted (count)	3	5	7
Avg Revenue per Event ($USD)	$1,724,399	$1,372,625	$871,633
Operating Expenses ($USD)	$1,220,969	$1,712,934	$2,069,730
Cash & Equivalents ($USD)	$3,463,632	$6,016,408	$5,290,924
Cash from Operations ($USD)	$(156,230)	n/a (nine months only)	$(104,001)

Note: Consensus estimates were unavailable via S&P Global for this period; attempts to fetch returned errors, so estimate comparison is not provided.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Live Events Planned	FY 2015	“Expect to produce 27 live events”	“24 cities in 2015 tour (subject to change)”	Schedule updated; expansion maintained
Digital Platform	FY 2015	n/a	CONtv launched Mar 3, 2015; premium $6.99/month	New initiative
Subscription Box	FY 2015	n/a	ComicConBox launched Apr 21, 2015; first edition sold out	New initiative

No formal numerical guidance on revenue, margins, OpEx, OI&E, or tax rate was issued in Q1 2015 .

Earnings Call Themes & Trends

No Q1 2015 earnings call transcript was available for PROP; themes reflect MD&A and press releases.

Topic	Previous Mentions (Q3 2014 and FY 2014)	Current Period (Q1 2015)	Trend
Digital/CONtv	JV formed Aug 2014; $(460,747) loss FY14; focus on OTT distribution	CONtv launched; $(431,476) JV loss in Q1 during launch	Scaling; near-term drag
International Expansion	U.S. footprint growth across major cities	FansTang partnership; first China convention announced	Expanding internationally
Marketing/Advertising Intensity	Increased costs with more conventions; margin down (35% in Q3)	Higher per-event spend; gross margin at 25%	Pressure persists
Staffing & OpEx	Headcount and G&A increases in 2014	Employee count 53 vs. 27 YoY; OpEx up to $2.07M	Rising to support scale
Subscription Commerce	n/a	ComicConBox launched; initial sell-out	Emerging revenue stream
Liquidity	YE 2014 working capital $3.84M	Q1 2015 working capital $2.50M; cash $5.29M	Adequate but declining WC

Management Commentary

“This is truly an exciting time for our Company as we venture into new and exciting markets… both CONtv and ComicConBox are additional revenue streams above our 27 events this year.” — John Macaluso, CEO .
“We believe that China is a stepping stone for many more opportunities in international markets…” — John Macaluso, CEO .
The Company emphasized seven Q1 events, new market entries, and subscription product momentum (ComicConBox sell-out) .

Q&A Highlights

No Q1 2015 earnings call transcript was available; therefore, analyst Q&A themes and clarifications are not applicable for this period (no transcript found) [ListDocuments: earnings-call-transcript returned none].

Estimates Context

Wall Street consensus (S&P Global) for Q1 2015 EPS and revenue was unavailable; tool attempts returned daily limit errors, so actual vs. consensus comparisons could not be provided for this quarter.

Key Takeaways for Investors

The growth strategy (more events, new markets) lifted revenue but materially compressed margins and impaired per-event economics; near term profitability is pressured by expansion and launch costs .
Digital and subscription initiatives (CONtv, ComicConBox) are strategic, with early engagement signals, but currently a drag on earnings (CONtv loss) until scale and monetization improve .
Average revenue per event declined sharply as the mix shifted to developing markets; focusing on maturation and sponsorship mix per show is key to restoring unit economics .
Liquidity remains solid (cash $5.29M; working capital $2.50M), but WC fell vs. YE 2014, warranting disciplined cost control and careful capital allocation as the tour ramps .
Tactical catalysts: content pipeline and subscription momentum (ComicConBox), international expansion (China), and improved per-event marketing ROI; watch for margin trajectory and JV losses normalization .
Medium-term thesis hinges on converting fan engagement into sustainable digital/subscription ARPU while optimizing the event portfolio to improve gross margins and opex efficiency .

Prairie Operating Co. (PROP)·Q1 2015 Earnings Summary