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NTN Buzztime, Inc. Announces Second Quarter 2013 Results

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CARLSBAD, Calif., Aug. 14, 2013 /PRNewswire/ -- NTN Buzztime, Inc. (NYSE MKT: NTN) today announced results for the second quarter ended June 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20120117/LA36540LOGO)

"In the second quarter, we focused on translating our pilot program and product development advancements into preparation for commercial launch of our new platform. Engagement metrics from our pilot program have given us encouragement about the pending launch of our new Buzztime BEOND platform. We believe Buzztime BEOND, or buzztime entertainment on demand, is a best of breed platform which should attract bars and restaurants looking for technology-driven solutions to their entertainment and marketing needs," said Mr. Berg, the Company's interim CEO.  "On a financial note, we reduced our cash burn while at the same time spending aggressively against product, platform and the plan to launch them.  On that note, our year over year EBITDA swing was a positive $500,000 and $1.2 million for the quarter and first half, respectively," added Mr. Berg. 

Results for the Second Quarter Ended June 30, 2013

Revenues for the second quarter of 2013 were $5.5 million compared to $6.0 million for the same period in 2012.  Gross margin as a percentage of revenue decreased to 73% for the second quarter of 2013 from 74% for the same period of 2012. Direct costs decreased $0.1 million, or 4%, to $1.5 million for the second quarter of 2013 from $1.6 million for the same period of 2012. 

Selling, general and administrative expenses decreased $0.9 million, or 19%, to $4.0 million for the second quarter of 2013 from $4.9 million for the same period in 2012 primarily related to reduced payroll and related expenses.  

Net loss for the first quarter of 2013 was $0.1 million, or $0.00 per share, compared to net loss of $0.6 million or $0.01 per share in the same period a year ago.

The Company ended the second quarter of 2013 with 3,352 subscribing venues, compared to 3,775 at June 30, 2012.

Conference Call

Management will review these results in a conference call today, August 14, 2013, at 4:30 p.m. ET.

To access the conference call, please dial (877) 790-8271, if calling from the United States or Canada, or (954) 320-7648, if calling internationally, and use passcode 29935665.  A replay of the call will be available until August 21, 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 29935665 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 3,300 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 3.8 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 product development, new product platform and launch, metrics, attracting bars and restaurants 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 and pricing, adverse economic conditions, failure of customer and/or player acceptance or demand for new or existing products, increased expenses, 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.

COMPANY CONTACT:
Kendra Berger
Chief Financial Officer
NTN Buzztime, Inc.
(760) 438-7400

(financial tables follow)

 

NTN BUZZTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except par value amount)


ASSETS

June 30,

2013

December 31, 2012

Current Assets:



Cash and cash equivalents

$         1,973

$         2,721

Accounts receivable, net

478

610

Prepaid expenses and other current assets

1,135

898




  Total current assets

3,586

4,229

Broadcast equipment and fixed assets, net

3,305

3,783

Software development costs, net

2,171

1,980

Deferred costs

448

600

Goodwill

1,197

1,265

Intangible assets, net

363

579

Other assets

307

220




  Total assets

$       11,377

$       12,656




LIABILITIES AND SHAREHOLDERS' EQUITY






Current Liabilities:



Accounts payable and accrued expenses

$            896

$         1,087

Accrued compensation

616

598

Sales taxes payable

145

197

Income taxes payable

65

79

Obligations under capital leases—current portion

34

100

Deferred revenue

546

919

Other current liabilities

340

408




  Total current liabilities

2,642

3,388

Obligations under capital leases, excluding current portion

54

67

Deferred revenue, excluding current portion

189

188

Deferred rent

893

949

Other liabilities

233

170




  Total liabilities

4,011

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 June 30, 2013 and December 31, 2012

1

1




Common stock, $.005 par value, 84,000 shares authorized; 71,604 and 71,123 shares issued and outstanding at June 30, 2013 and December 31, 2012, respectively

358

355

Treasury stock, at cost, 503 shares at June 30, 2013 and December 31, 2012

(456)

(456)

Additional paid-in capital

119,007

118,956

Accumulated deficit

(112,206)

(111,730)

Accumulated other comprehensive income

662

768




  Total shareholders' equity

7,366

7,894




  Total liabilities and shareholders' equity

$       11,377

$       12,656











 

NTN BUZZTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)



Three Months Ended
June 30,

Six Months Ended
June 30,


2013

2012

2013

2012

Revenues

$        5,532

$        6,015

$      11,648

$      12,081






Operating expenses:





Direct operating costs (includes depreciation and amortization)

1,485

1,554

3,485

3,171

Selling, general and administrative

3,982

4,913

8,265

10,185

Depreciation and amortization (excluding depreciation and amortization included in direct costs)

180

191

379

365






Total operating expenses

5,647

6,658

12,129

13,721






Operating loss

(115)

(643)

(481)

(1,640)

Other income (expense), net

21

(2)

26

(34)






Loss before income taxes

(94)

(645)

(455)

(1,674)

  (Provision) benefit for income taxes

(5)

12

(13)

(4)






Net loss

$           (99)

$         (633)

(468)

(1,678)











Net loss per common share – basic and diluted

$        (0.00)

$        (0.01)

$        (0.01)

$        (0.02)






Weighted average shares outstanding – basic and diluted

71,062

70,506

70,962

67,512






 

NTN BUZZTIME, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

(In thousands)





Six months ended

June 30,


2013

2012

Cash flows provided by (used in) operating activities:



Net loss

$          (468)

$        (1,678)

Adjustments to reconcile net loss to net cash provided by operating activities:



  Depreciation and amortization

1,483

1,473

  Provision for doubtful accounts

11

39

  Stock-based compensation

53

137

  Loss from disposition of equipment and capitalized software

92

1

  Changes in assets and liabilities:



    Accounts receivable

120

71

    Prepaid expenses and other assets

(325)

62

    Accounts payable and accrued liabilities

(333)

(229)

    Income taxes payable

(10)

12

    Deferred costs

151

385

    Deferred revenue

(372)

113

    Deferred rent

(56)

211




    Net cash provided by operating activities

346

597

Cash flows (used in) provided by investing activities:



Capital expenditures

(285)

(819)

Software development expenditures

(794)

(718)

Acquisitions

(50)

Changes in restricted cash

50




    Net cash used in investing activities

(1,079)

(1,537)

Cash flows provided by (used in) financing activities:



Proceeds from rights offering, net

2,310

Proceeds from notes payable

128

Payments on note payable

(20)

(19)

Principal payments on capital leases

(72)

(172)

Tax withholding related to net-share settlements of restricted stock units

(7)




    Net cash provided by financing activities

29

2,119




Net (decrease) increase in cash and cash equivalents

(704)

1,179




Effect of exchange rate on cash

(44)

(4)




Cash and cash equivalents at beginning of period

2,721

1,374




Cash and cash equivalents at end of period

$         1,973

$         2,549




 

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
June 30,

Six Months Ended
June 30,


2013

2012

2013

2012

Net loss per GAAP

$          (99)

$        (633)

$        (468)

$     (1,678)

Interest expense, net

5

11

12

24

Income taxes

5

(12)

13

4

Depreciation and amortization

694

750

1,483

1,473






EBITDA

$            605

$            116

$         1,040

$         (177)






SOURCE NTN Buzztime, Inc.



RELATED LINKS
http://www.ntn.com

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