NTN Buzztime, Inc. Announces Third Quarter 2013 Results and Multi-Year Agreement with Buffalo Wild Wings

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.



RELATED LINKS
http://www.buzztime.com/

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.