Big Stick Media Corporation Announces Financial Results for Year-Ended November 30, 2009
March 22 2010 - 8:48AM
Marketwired
Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:
BSM) announces today its financial results for the year ended
November 30, 2009.
For the year ended November 30, 2009, the Company incurred a net
loss of $2.17 million versus a net loss of $3.94 million for the
year ended November 30, 2008. The net loss figures include various
non-cash accounting items including amortization expense, stock
option compensation expense, accredited interest expense, income
tax recoveries, losses on asset dispositions, write-downs on asset
impairments and net foreign exchange gains losses emanating from
the movement of U.S. dollar. Excluding the effects of the non-cash
charges, the one-time expense and cash interest expense, the
normalized EBITDA for fiscal 2009 was $3.52 million versus $2.26
million in fiscal 2008.
The financial results for the year-ended November 30, 2009
reflect the following pertinent information:
-- In October of 2009, the Company decided to close its Las Vegas call
center operation. While this closure led to a significant charge related
to impaired assets, it actually had a beneficial impact on the Company's
operating income given that the planned marketing campaign for the fall
of 2009 was truncated and the significant deferred revenue balance began
to be systematically recognized with no related costs there to mitigate
the income effect.
-- As part of the Don Best Sports acquisition, BSM became obligated to
effect two separate deferred purchase price instalments each in the
amount of US$2,045,000 due and payable on each of October 28, 2008 and
April 28, 2009. Each of those payments was made on the requisite due
date. However, in order to enable such payments, the Company borrowed a
new US$800,000 in April 2009 of which US$370,000 remained outstanding at
year end.
-- The company incurred significant legal fees related to litigation in
connection with the Don Best Sports division. While the litigation was
ultimately settled, the cost of such initiative had a meaningful adverse
effect on the Company's 2009 income.
"2009 was clearly a challenging year for BSM", stated
Christopher Kape, President and CEO. "We expended significant time,
energy and resources in order to salvage the Las Vegas call center
operations. However, having never seen positive cash flow on a full
year basis and with limited ability to foresee prospective positive
cash generation in this unit, we were forced to close the division.
Furthermore, the ongoing litigation and technology issues that
delayed the implementation of new products materially impacted upon
our cash position. As announced in January of 2010, we are
presently analyzing various alternatives designed to offer a
reasonable plan to our secured debenture holders in terms of
meeting our obligations to them. These creditors have granted BSM a
period of time until May 31, 2010 to issue such a proposal."
BSM is based in Vancouver, British Columbia and trades on the
TSX Venture Exchange under the trading symbol "BSM". Additional
information about BSM including the Company's annual consolidated
financial statements and management discussion and analysis for the
year-ended November 30, 2009 are available under the Company's
profile at www.sedar.com.
As at the date hereof BSM has 23,992,020 issued and outstanding
common shares.
About Big Stick Media Corporation
BSM owns and operates a portfolio of assets that provide
fact-based and opinion oriented information relevant to the sports
industry. These assets include websites, client-server software,
publications and call centers. BSM generates revenues in a number
of ways, including various direct to consumer services and direct
to business sales through a portfolio of websites, the most
significant of which are www.JimFeist.com, www.donbest.com, and
www.g-picks.com. BSM also operates the Don Best Sports real-time
sports information systems for serious sports enthusiasts,
handicappers and bettors.
Cautionary Statement
This press release may contain certain forward-looking
statements with respect to the Company. These forward-looking
statements, by their nature, involve risks and uncertainties that
could cause actual results to differ materially from those
contemplated. We consider the assumptions on which these
forward-looking statements are based to be reasonable, but caution
the reader that these assumptions regarding future events, many of
which are beyond our control, may ultimately prove to be incorrect.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
Big Stick Media Corporation's expectations are various risks
detailed from time to time in the filings made by Big Stick Media
Corporation with securities regulations.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy and
accuracy of this release.
Contacts: Big Stick Media Corporation Christopher S. Kape Chief
Executive Officer (604) 630-6550 ext. 111
chris@bigstickmedia.com
Big Stick Media Corp (TSXV:BSM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Big Stick Media Corp (TSXV:BSM)
Historical Stock Chart
From Jul 2023 to Jul 2024