NTN Buzztime, Inc. News
NTN Buzztime, Inc. Announces First Quarter 2008 Results
"The multifaceted turnaround that we have set in motion at NTN Buzztime continues, and we still expect to see positive results from it in the second quarter," commented NTN Buzztime's President and Chief Executive Officer,
Mr. Santana continued, "Our subscriber base of approximately 3,800 restaurants, sports bars and pubs positions us strongly in a market for out-of-home advertising that industry analyst Frost & Sullivan has estimated will reach
Results for the First Quarter
Revenue from continuing operations decreased by
Gross margin as a percentage of revenue remained the same at 71% in the first quarter of 2008 compared to the first quarter of 2007.
Selling, general and administrative expenses increased
"We expect that during the second quarter of 2008, we will begin to realize the benefits of several important initiatives launched during the last year," commented Mr. Santana. "The second quarter is when we expect to see an increase in new advertising deals as we convert our pipeline to bookings. During the second quarter, we also expect to begin realizing gains from our field marketing initiatives and our program to enhance retention of 'rookie' subscribers. Also during the second quarter, we will receive updated audience and player data, which we believe will show that Buzztime is more attractive to a larger number of people than ever before; audience survey data will help us win new subscribers, retain existing ones and increase our advertising revenue. Finally, we plan to launch new games and content upgrades and revamp our web site. As we complete the wind down of discontinued operations during the second quarter, we believe that new and attractive opportunities for our company will become apparent."
For the quarter ended
Discontinued Operations
Discontinued operations of the Company's Hospitality Division consisted of two segments, Wireless and Software Solutions. On
Discontinued operations generated a loss of
The Company continues to wind down the professional help desk and support and maintenance services as it fulfills its obligations under existing customer agreements which is expected to be substantially complete by
Conference Call
Management will review these results today at
A replay will be available until
The call will also be accompanied live by webcast over the Internet and accessible at NTN Buzztime's web site at http://www.buzztime.com.
About NTN Buzztime, Inc.
NTN Buzztime, Inc., a leader in multi-point social interactive entertainment for more than 20 years, is based in
Buzztime is a proud member of the OVAB |Out-of-home Video Advertising Bureau.
Buzztime is a registered trademark of Buzztime Entertainment, Inc. and Playmaker is a registered trademark of NTN Buzztime, Inc.
Forward-looking Statements
This release contains forward-looking statements which reflect management's current views of future events and operations including but not limited to estimates of financial performance and cash flows, trends in subscriber preference and engagement and results of marketing strategies. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the risk of changing economic conditions, failure of product demand or market acceptance of both existing and new products and services and the impact of competitive products and pricing. Please see NTN Buzztime, Inc.'s recent filings with the Securities and Exchange Commission for information about these and other risks that may affect the Company. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and NTN Buzztime, Inc. does not undertake to publicly update or revise any of its forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized.
NTN BUZZTIME, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except per share data) March 31, December 31, 2008 2007 ASSETS Current Assets: Cash and cash equivalents $7,854 $10,273 Restricted cash 37 55 Accounts receivable, net of allowances of $304 and $396, respectively 1,100 1,354 Investment available-for-sale 139 264 Prepaid expenses and other current assets 663 745 Assets held for sale 20 212 Total current assets $9,813 $12,903 Broadcast equipment and fixed assets, net 4,113 4,101 Software development costs, net of accumulated amortization of $1,160 and $1,071, respectively 731 895 Deferred costs 1,179 1,204 Goodwill 1,233 1,285 Intangible assets, net 284 318 Other assets 149 154 Total assets $17,502 $20,860 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $1,054 $838 Accrued expenses 914 901 Sales tax payable 999 982 Accrued salaries 110 357 Accrued vacation 447 447 Income tax payable 57 36 Deferred revenue 797 972 Liabilities of discontinued operations 411 672 Total current liabilities $4,789 $5,205 Deferred revenue, excluding current portion 89 87 Total liabilities $4,878 $5,292 Commitments and contingencies Shareholders' equity: Series A 10% cumulative convertible preferred stock, $.005 par value, $161 liquidation preference, 5,000,000 shares authorized; 161,000 shares issued and outstanding at March 31, 2008 and December 31, 2007 1 1 Common stock, $.005 par value, 84,000,000 shares authorized; 55,640,000 shares issued and outstanding, at March 31, 2008 and December 31, 2007. 277 277 Treasury stock, at cost, 454,000 shares at March 31, 2008 and December 31, 2007 (444) (444) Additional paid-in capital 113,064 112,942 Accumulated deficit (101,444) (98,870) Accumulated other comprehensive income 1,170 1,662 Total shareholders' equity $12,624 $15,568 Total shareholders' equity and liabilities $17,502 $20,860 NTN BUZZTIME, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2008 2007 Revenues $7,182 $7,733 Operating expenses: Direct operating costs (includes depreciation of $719 and $841 for the three months ended March 31, 2008 and 2007, respectively) 2,096 2,213 Selling, general and administrative 7,232 5,691 Depreciation and amortization (excluding depreciation included in direct costs) 122 153 Research and development 33 36 Restructuring costs - 452 Total operating expenses $9,483 $8,545 Operating loss $(2,301) $(812) Other income (expense): Interest income 59 41 Interest expense - (13) Other income - 81 Total other income $59 $109 Loss from continuing operations before income taxes $(2,242) (703) Provision for income taxes 41 60 Loss from continuing operations $(2,283) $(763) Loss from discontinued operations, net of tax (including gain on sale of NTN Wireless of $396 for the three months ended March 31, 2007) (291) (4) Net loss $(2,574) $(767) Net loss per common share: Loss from continuing operations, basic and diluted $(0.04) $(0.01) Loss from discontinued operations, basic and diluted $(0.01) $(0.00) Net loss $(0.05) $(0.01) Weighted average shares outstanding: Basic and Diluted 55,187 54,754 NTN BUZZTIME, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 2008 2007 Cash flows provided by (used in) operating activities: Net loss $(2,574) $(767) Loss from discontinued operations, net of tax 291 4 Loss from continuing operations $(2,283) $(763) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 841 994 Provision for doubtful accounts 180 50 Stock-based compensation 122 179 Loss from disposition of equipment and capitalized software 231 7 Changes in assets and liabilities: Accounts receivable 68 725 Prepaid expenses and other assets 80 316 Accounts payable and accrued expenses 10 (400) Income taxes payable 22 (15) Deferred costs 21 120 Deferred revenue (170) (391) Net cash provided by (used in) continuing operations (878) 822 Discontinued operations (360) (571) Net cash used in operating activities (1,238) 251 Cash flows provided by (used in) investing activities: Capital expenditures (778) (40) Software development expenditures (218) (84) Deposits on broadcast equipment - (105) Proceeds from sale of equipment and other assets 78 - Restricted cash 16 13 Net cash used in investing activities by continuing operations (902) (216) Discontinued operations - 2,298 Net cash (used in) provided by investing activities (902) 2,082 Cash flows provided used in financing activities: Principal payments on capital leases (2) (107) Proceeds from exercise of warrants and options - 65 Net cash used in financing activities (2) (42) Net (decrease) increase in cash and cash equivalents (2,142) 2,291 Effect of exchange rate on cash (277) (13) Cash and cash equivalents at beginning of period 10,273 8,774 Cash and cash equivalents at end of period $7,854 $11,052
EBITDA
A detailed schedule reconciling net income and loss, the nearest GAAP measure, to EBITDA is included in the supplemental tables below. EBITDA is included herein because management believes that certain investors find it to be a useful tool for measuring a company's operating performance. EBITDA should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for, or superior to, GAAP results. Non-GAAP financial information such as EBITDA, by its nature, departs from traditional accounting conventions; accordingly, its use can make it difficult to compare Buzztime's current results with results from other reporting periods and with the results of other companies.
The following table reconciles our net loss per GAAP to EBITDA: Three Months Ended March 31, 2008 ($000) Discontinued Entertainment Operations Total EBITDA Calculation: Net loss per GAAP $(2,283,000) $(291,000) $(2,574,000) Interest income, net (59,000) - (59,000) Depreciation and amortization 841,000 - 841,000 Income taxes 41,000 - 41,000 EBITDA $(1,460,000) $(291,000) $(1,751,000) Three Months Ended March 31, 2007 ($000) Discontinued Entertainment Operations Total EBITDA Calculation: Net loss per GAAP $(763,000) $(4,000) $(767,000) Interest income, net (28,000) - (28,000) Depreciation and amortization 994,000 - 994,000 Income taxes 60,000 29,000 89,000 EBITDA $263,000 $25,000 $288,000 COMPANY CONTACT: Kendra Berger Chief Financial Officer NTN Buzztime, Inc. (760) 438-7400 CCG CONTACT: Sean Collins Senior Partner CCG Investor Relations (310) 477-9800, ext. 202 http://www.ccgir.com
SOURCE NTN Buzztime, Inc.
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