Big Stick Media Corporation Announces Financial Results for Quarter Ended February 28, 2010
April 12 2010 - 11:17AM
Marketwired
Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:
BSM) announces today its financial results for the quarter ended
February 28, 2010.
For the quarter ended February 28, 2010, the Company incurred a
net loss of $7.97 million versus net income of $435,000 for the
quarter ended February 28, 2009. The results for the first quarter
of fiscal 2010 were adversely impacted by a goodwill impairment
charge of $8.2 million that was taken in recognition of the
decreased revenues and profitability of a division of the company.
The net income or loss figures include various non-cash accounting
items including amortization expense, stock option compensation
expense, accredited interest expense, gains or losses on asset
impairments and dispositions and net foreign exchange gains or
losses. Excluding the effects of the non-cash charges as well as
income tax expense and cash interest expense, the modified EBITDA
for the first fiscal quarters of 2010 and 2009 were $1.071 million
and $2.041 million respectively.
The financial results for the quarter ended February 28, 2010
reflect the fact that the Las Vegas call center operation
previously operated by the Company is now dormant. Accordingly,
previously deferred revenue is now being systematically recognized
without mitigation from associated costs. As such, the reported
accounting income for this division is significant whereas no
operational cash flow is currently being produced.
"Q1 of fiscal 2010 was a transitional quarter for BSM. Our core
revenues fell in comparison to the corresponding quarter in 2009
and thereby necessitated the goodwill write-down", stated
Christopher Kape, President and CEO. "We are continuing with the
discussions with the holders of the secured debentures in respect
of which we are currently in arrears. We hope to be able to table a
proposal to such lenders in the near future."
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 consolidated
financial statements and management discussion and analysis for the
quarter ended February 28, 2010 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 and
publications. 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
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