CARLSBAD, Calif., Nov. 13, 2013 /PRNewswire/ -- NTN Buzztime,
Inc. (NYSE MKT: NTN) today announced results for the quarter ended
September 30, 2013. The Company
also announced the signing of a multi-year service agreement with
Buffalo Wild Wings, Inc. (NASDAQ: BWLD).
(Logo:
http://photos.prnewswire.com/prnh/20120117/LA36540LOGO)
"During the third quarter, we continued to aggressively invest
in product and platform development while still managing to
generate cash flow. This coupled with the $2.4 million in gross proceeds raised in a
private placement disclosed earlier today gives us the ability to
execute more aggressively on our growth plans. These growth
plans are centered around our new Buzztime BEOND platform that was
recently launched commercially, including the new agreement with
Buffalo Wild Wings, a leader in the retail technology space," said
Buzztime CEO, Jeffrey Berg.
"Buffalo Wild Wings has a publicly stated goal of growing to
over 2,000 locations over the coming years, and we are excited to
be a fundamental part of their future. This partnership
confirms our ongoing mission of entertaining consumers in ways that
bring long-term value to our merchant partners," continued Mr.
Berg.
Results for the Third Quarter Ended September 30, 2013
Revenues for the third quarter of 2013 were $5.5 million compared to $6.1 million for the same period in 2012.
Gross margin as a percentage of revenue decreased to 72% for the
third quarter of 2013 from 75% for the same period of 2012. Direct
costs remained flat at $1.5 million
for the third quarter of 2013 compared to the same period of
2012.
Selling, general and administrative expenses decreased
$0.2 million, or 4%, to $4.1 million for the third quarter of 2013 from
$4.3 million for the same period in
2012.
Net loss for the third quarter of 2013 was $0.2 million, or $0.00 per share, compared to net income of
$0.1 million or $0.00 per share in the same period a year
ago.
The Company ended the third quarter of 2013 with 3,220
subscribing venues, compared to 3,739 at September 30, 2012.
Multi-Year Agreement with Buffalo Wild Wings
The Company and Buffalo Wild Wings (BWW) entered into a
multi-year agreement following the successful conclusion of an
extensive trial of Buzztime's entertainment and marketing services
in Buffalo Wild Wing restaurants. Buffalo Wild Wings will
install Buzztime's new BEOND platform as an integral part of the
chain's new retail technology platform that is being launched
throughout the chain's 955 locations. The new platform
combines a differentiated customer entertainment experience,
offering trivia, poker, arcade style games and more, all integrated
with the Buffalo Wild Wings' dining experience to deliver improved
customer satisfaction and increased revenue.
Conference Call
Management will review the third quarter financial results in a
conference call today, November 13,
2013, at 4:30 p.m. ET.
To access the conference call, please dial (877) 307-1373, if
calling from the United States or
Canada, or (678) 224-7873, if
calling internationally, and use passcode 98762342. A replay
of the call will be available until November
20, 2013, which can be accessed by dialing (855) 859-2056,
if calling from the United States
or Canada, or (404) 537-3406, if
calling internationally. Please use passcode 98762342 to access the
replay.
The call will also be accompanied live by webcast over the
Internet and accessible at the Company's Web site at
http://www.buzztime.com.
About Buzztime
NTN Buzztime, Inc. (NYSE MKT: NTN) is a leading bar and
restaurant social entertainment and integrated marketing platform.
Trusted by over 3,200 bars and restaurants in North America since 1985, Buzztime integrates
trivia, card and sports games with in- and out-of-venue messaging
and communication tools. With over 4.2 million player registrations
on the Buzztime platform and over 52 million games played each
year, Buzztime players spread the word and invite friends and
family to their favorite Buzztime location to enjoy an evening of
fun and competition. With Buzztime entertainment and marketing
solutions, bars and restaurants can turn casual visitors into
regulars, and give guests a reason to stay longer. For the most
up-to-date information on NTN Buzztime, please visit
www.buzztime.com or follow us on Facebook or Twitter.
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 statements about our growth
plans, product and platform development, new agreement(s), customer
growth plans, long term value, customer platforms, improved
customer satisfaction, increased revenue and the number of
locations, players and games. 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 risks of unsuccessful
execution or launch of products, platforms or brands, the impact of
alternative entertainment options and technologies and competitive
products, brands, technologies and pricing, adverse economic
conditions, failure of customer and/or player acceptance or demand
for new or existing products, lower market acceptance or appeal of
both existing and new products and services by particular
demographic groups or audiences as a whole, termination of
partnership and contractual relationships and technical problems or
outages. 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.
(financial tables follow)
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In thousands,
except par value amount)
|
|
|
|
|
ASSETS
|
September
30,
2013
|
December
31,
2012
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,168
|
$
2,721
|
|
Accounts
receivable, net
|
514
|
610
|
|
Prepaid expenses and
other current assets
|
1,192
|
898
|
|
|
|
|
Total current
assets
|
3,874
|
4,229
|
|
Broadcast equipment
and fixed assets, net
|
3,227
|
3,783
|
|
Software development
costs, net
|
2,343
|
1,980
|
|
Deferred
costs
|
395
|
600
|
|
Goodwill
|
1,222
|
1,265
|
|
Intangible assets,
net
|
259
|
579
|
|
Other
assets
|
310
|
220
|
|
|
|
|
Total
assets
|
$
11,630
|
$
12,656
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
995
|
$
1,087
|
|
Accrued
compensation
|
813
|
598
|
|
Sales taxes
payable
|
141
|
197
|
|
Income taxes
payable
|
71
|
79
|
|
Obligations under
capital leases—current portion
|
25
|
100
|
|
Deferred
revenue
|
496
|
919
|
|
Other current
liabilities
|
345
|
408
|
|
|
|
|
Total current
liabilities
|
2,886
|
3,388
|
|
Obligations under
capital leases, excluding current portion
|
64
|
67
|
|
Deferred revenue,
excluding current portion
|
248
|
188
|
|
Deferred
rent
|
861
|
949
|
|
Other
liabilities
|
329
|
170
|
|
|
|
|
Total
liabilities
|
4,388
|
4,762
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Series A 10%
cumulative convertible preferred stock, $.005
par value,
$156
liquidation preference, 5,000 shares authorized; 156 issued
and
outstanding at
September 30, 2013 and December 31, 2012
|
1
|
1
|
|
|
|
|
Common stock, $.005
par value, 84,000 shares authorized; 71,773
and
71,123 shares issued and outstanding at September 30,
2013
and December
31, 2012, respectively
|
359
|
355
|
|
Treasury stock, at
cost, 503 shares at September 30, 2013 and
December 31,
2012
|
(456)
|
(456)
|
|
Additional paid-in
capital
|
119,077
|
118,956
|
|
Accumulated
deficit
|
(112,440)
|
(111,730)
|
|
Accumulated other
comprehensive income
|
701
|
768
|
|
|
|
|
Total shareholders'
equity
|
7,242
|
7,894
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
11,630
|
$
12,656
|
|
|
|
|
|
|
|
|
|
|
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(In thousands, except
per share data)
|
|
|
|
|
Three Months
Ended
September 30,
|
Nine Months
Ended
September 30,
|
|
2013
|
2012
|
2013
|
2012
|
|
Revenues
|
$
5,526
|
$
6,050
|
$
17,174
|
$
18,131
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Direct operating
costs (includes depreciation
and
amortization)
|
1,532
|
1,519
|
5,017
|
4,690
|
|
Selling, general and
administrative
|
4,053
|
4,257
|
12,318
|
14,442
|
|
Depreciation and
amortization (excluding
depreciation
and amortization included in
direct
costs)
|
177
|
175
|
556
|
540
|
|
|
|
|
|
|
Total operating
expenses
|
5,762
|
5,951
|
17,891
|
19,672
|
|
|
|
|
|
|
Operating (loss)
income
|
(236)
|
99
|
(717)
|
(1,541)
|
|
Other income
(expense), net
|
5
|
(23)
|
31
|
(57)
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
(231)
|
76
|
(686)
|
(1,598)
|
|
Provision for income
taxes
|
(3)
|
(22)
|
(16)
|
(26)
|
|
|
|
|
|
|
Net (loss)
income
|
$
(234)
|
$
54
|
(702)
|
(1,624)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
common share – basic
|
$
(0.00)
|
$
0.00
|
$
(0.01)
|
$
(0.02)
|
|
|
|
|
|
|
Net (loss) income per
common share –
diluted
|
$
(0.00)
|
$
0.00
|
$
(0.01)
|
$
(0.02)
|
|
|
|
|
|
|
Weighted average
shares outstanding –
basic
|
71,202
|
70,876
|
71,043
|
68,537
|
|
|
|
|
|
|
Weighted average
shares outstanding –
diluted
|
71,202
|
71,373
|
71,043
|
68,537
|
|
|
|
|
|
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
Nine months
ended
September
30,
|
|
2013
|
2012
|
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
Net loss
|
$
(702)
|
$
(1,624 )
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,155
|
2,190
|
|
Provision for
doubtful accounts
|
3
|
101
|
|
Stock-based
compensation
|
87
|
163
|
|
Issuance of common
stock to consultant in lieu of cash payment
|
39
|
—
|
|
Loss from disposition
of equipment and capitalized software
|
115
|
1
|
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
92
|
(437 )
|
|
Prepaid expenses and
other assets
|
(384 )
|
(200 )
|
|
Accounts payable and
accrued liabilities
|
(83 )
|
(34 )
|
|
Income taxes
payable
|
(6 )
|
32
|
|
Deferred
costs
|
204
|
422
|
|
Deferred
revenue
|
(363 )
|
160
|
|
Deferred
rent
|
(88 )
|
220
|
|
|
|
|
Net cash provided by
operating activities
|
1,069
|
994
|
|
Cash flows (used in)
provided by investing activities:
|
|
|
|
Capital
expenditures
|
(521 )
|
(966 )
|
|
Software development
expenditures
|
(1,222 )
|
(1,061 )
|
|
Acquisitions
|
—
|
(50 )
|
|
Changes in restricted
cash
|
—
|
50
|
|
|
|
|
Net cash used in
investing activities
|
(1,743 )
|
(2,027 )
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
Proceeds from rights
offering, net
|
—
|
2,310
|
|
Proceeds from notes
payable
|
290
|
—
|
|
Payments on note
payable
|
(41 )
|
(29 )
|
|
Principal payments on
capital leases
|
(94 )
|
(247 )
|
|
Tax withholding
related to net-share settlements of restricted stock
units
|
(10 )
|
(1 )
|
|
|
|
|
Net cash provided by
financing activities
|
145
|
2,033
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(529 )
|
1,000
|
|
|
|
|
Effect of exchange
rate on cash
|
(24 )
|
31
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
2,721
|
1,374
|
|
|
|
|
Cash and cash
equivalents at end of period
|
$
2,168
|
$
2,405
|
|
|
|
EBITDA
A schedule reconciling the Company's consolidated net loss
calculated in accordance with GAAP to EBITDA is included in the
supplemental table below. EBITDA is not intended to represent a
measure of performance in accordance with GAAP, nor should EBITDA
be considered as an alternative to statements of cash flows as a
measure of liquidity. EBITDA is included herein because the Company
believes it is a measure of operating performance that financial
analysts, lenders, investors and other interested parties find to
be a useful tool for analyzing companies like Buzztime that carry
significant levels of non-cash depreciation and amortization
charges in comparison to their net income or loss calculation in
accordance with GAAP.
The following table reconciles our net
loss per GAAP (in thousands):
|
|
|
|
Three Months
Ended
September 30,
|
Nine Months
Ended
September 30,
|
|
2013
|
2012
|
2013
|
2012
|
|
Net (loss) earnings
per GAAP
|
$
(234)
|
$
54
|
$
(702)
|
$
(1,624)
|
|
Interest expense,
net
|
4
|
10
|
16
|
34
|
|
Income
taxes
|
3
|
22
|
16
|
26
|
|
Depreciation and
amortization
|
672
|
717
|
2,155
|
2,190
|
|
|
|
|
|
|
EBITDA
|
$
445
|
$
803
|
$
1,485
|
$
626
|
|
|
|
|
|
COMPANY CONTACT:
Kendra
Berger
Chief Financial Officer
NTN Buzztime, Inc.
(760) 438-7400
SOURCE NTN Buzztime, Inc.