CARLSBAD, Calif., Aug. 13 /PRNewswire-FirstCall/ -- NTN Buzztime,
Inc. (NYSE Amex: NTN) today announced results for the second
quarter ended June 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080331/CLM183LOGO) "Our
recent strategic initiatives continue to pay dividends. We added a
net 107 customer sites in the second quarter, ending the quarter
with 125 more than a year ago, and we reduced the amount of our
loss from continuing operations 88% by lowering selling, general
and administrative expenses," said NTN Buzztime CEO Terry Bateman.
"We are pleased by what we have been able to accomplish in a
relatively short period of time," Mr. Bateman continued. "We are
focused on the key objectives we have identified that can quickly
return the company to profitability. We believe we have the
groundwork in place to grow our network, which will be complemented
with Buzztime experiences delivered through mobile phones and
online. We feel progress is being made on all fronts, and we now
have a team in place that has the skills and experience to execute
on our growth strategy." Results for the Quarter Ended June 30,
2009 Revenues for the second quarter of 2009 were $6.3 million,
compared to revenues of $7.0 million for the same period of 2008,
primarily as a result of a decrease in average revenue generated
per site related to a strategic reduction in pricing. The Company
ended the second quarter of 2009 with 3,871 subscribing venues,
compared to 3,746 at June 30, 2008, and 3,777 at March 31, 2009.
During the second quarter of 2009, installations were up
approximately 48% while terminations were down 19% compared with
the second quarter of 2008. Customer churn improved to 4.9% for the
quarter from 6.1% in the prior year period. Total site counts Q2 Q2
Increase and churn percentages 2009 2008 (Decrease)
--------------------- ---- ---- ---------- Site Count - Beginning
of Quarter 3,764 3,777 (13) ------------------------- ----- -----
--- Q2 Installations 294 199 95 ---------------- --- --- -- Q2
Terminations (187) (230) (43) --------------- ---- ---- --- Site
Count - End of Quarter 3,871 3,746 125 ---------------------------
----- ----- --- Churn Percentage 4.9% 6.1% (1.2) ----------------
--- --- ---- Gross margin as a percentage of revenue improved to
76%, compared to 72% in the second quarter of 2008. Selling,
general and administrative expenses declined by $2.1 million, or
31%, to $4.9 million from $7.0 million a year ago. The improvement
was attributable to several factors including a $0.5 million
decline in salary expenses due to staffing reductions; a $0.5
million decline in severance expense due to the resignation of the
CEO in the prior year; a $0.5 million decline in marketing expense
related to a change in the Company's marketing strategy; and a $0.4
million decline in consulting services. Loss from continuing
operations for the second quarter of 2009 was $282,000, or less
than one cent per share, an improvement in the loss of
approximately $1.8 million from same period a year ago. For the
quarter ended June 30, 2009, results from continuing operations
reflected solely the results from the Entertainment division,
following the discontinuation of the Hospitality division.
Discontinued Operations Discontinued operations had no activity in
the second quarter of 2009, compared to a loss from discontinued
operations of $216,000 in the same quarter of 2008. Results for the
Six Months Ended June 30, 2009 Revenue from continuing operations
was $12.5 million in the first six months of 2009, compared to
revenue of $14.2 million for the year-ago period. Loss from
continuing operations for the first half of 2009 was $0.5 million,
compared to loss from continuing operations of $4.4 million a year
ago. Gross margin as a percentage of revenue improved to 76% from
71% in the first six months of 2008. Selling, general and
administrative expenses declined $4.6 million, or 32%, to $9.7
million in the first six months of 2009 from $14.3 million in the
corresponding period of the prior year. For the six months ended
June 30, 2009, results from continuing operations solely reflected
the results from the Entertainment division, following the
discontinuation of the Hospitality division. Conference Call
Management will review these results in a conference call today,
August 13, 2009, at 4:30 p.m. EDT. To access the conference call,
please dial (866) 360-7027 if calling from the United States or
Canada, or (706) 643-3291 if calling internationally, and use
passcode 23874047. Please dial in several minutes prior to start
time for registration purposes. A replay will be available until
August 20, 2009, which can be accessed by dialing (800) 642-1687 if
calling from the United States or Canada or (706) 645-9291 if
calling internationally. Please use passcode 23874047 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 NTN Buzztime, Inc. NTN Buzztime,
Inc., a leader in interactive entertainment for 25 years, is based
in Carlsbad, CA. Buzztime is distributed in-home and out-of-home
across broadband platforms including online, cable TV, satellite TV
and in approximately 3,900 restaurants, sports bars and pubs
throughout North America. Buzztime entertainment is also available
on electronic games and in books. For more information, please
visit http://www.buzztime.com/. Buzztime is a proud member of the
OVAB |Out-of-home Video Advertising Bureau. Buzztime is a
registered trademark of Buzztime Entertainment, Inc. and Playmaker
is a registered trademark of NTN Buzztime, Inc. 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 estimates of financial performance and
cash flows, new business initiatives and engagement and results of
marketing strategies. These statements are based on current
expectations and assumptions that are subject to risks and
uncertainties that could cause actual results to differ materially
from historical results or those expressed or implied by such
forward-looking statements. These risks and uncertainties include
risks associated with recent management changes, the Company's
ability to grow its out-of-home Buzztime iTV network and implement
other business strategies such as the planned launch of mobile and
wireless games, the risk of changing economic conditions, failure
of product demand or market acceptance of both existing and new
products and services and the impact of competitive products and
pricing. 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
CCG CONTACT: Mark Collinson Partner CCG Investor Relations (310)
954-1343 (financial tables follow) NTN BUZZTIME, INC. AND
SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In
thousands, except share data) June 30, December 31, 2009 2008 ----
---- ASSETS Current assets: Cash and cash equivalents $3,845 $3,362
Accounts receivable, net of allowances of $301 and $298,
respectively 774 636 Investments available-for-sale 96 58 Prepaid
expenses and other current assets 844 611 --- --- Total current
assets 5,559 4,667 Broadcast equipment and fixed assets, net 3,496
3,428 Software development costs, net 1,067 860 Deferred costs
1,295 1,383 Goodwill 1,091 1,032 Intangible assets, net 1,927 185
Other assets 143 107 Deposits on broadcast equipment 137 - --- ---
Total assets $14,715 $11,662 ======= ======= LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $722
$219 Accrued expenses 936 1,169 Sales tax payable 770 958 Accrued
salaries 355 383 Accrued vacation 406 381 Income tax payable - 18
Obligations under capital lease 223 8 Deferred revenue 631 657 ---
--- Total current liabilities 4,043 3,793 Sales tax payable,
excluding current portion 207 - Obligations under capital lease,
excluding current portion 232 32 Deferred revenue, excluding
current portion 93 91 Other long term liabilities 285 - --- ---
Total liabilities 4,860 3,916 ----- ----- Shareholders' equity:
Series A 10% cumulative convertible preferred stock, $.005 par
value, $161 liquidation preference, 5,000,000 shares authorized;
161,000 shares issued and outstanding at June 30, 2009 and December
31, 2008 1 1 Common stock, $.005 par value, 84,000,000 shares
authorized; 60,348,000 and 55,727,000 shares issued and outstanding
at June 30, 2009 and December 31, 2008, respectively 300 277
Treasury stock, at cost, 503,000 shares at June 30, 2009 and
December 31, 2008 (456) (456) Additional paid-in capital 115,639
113,267 Accumulated deficit (105,896) (105,351) Accumulated other
comprehensive income 267 8 --- --- Total shareholders' equity 9,855
7,746 ----- ----- Total shareholders' equity and liabilities
$14,715 $11,662 ======= ======= NTN BUZZTIME, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited) (In
thousands, except per share data) Three months ended Six months
ended ------------------ ------------------ June 30, June 30, June
30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Revenues
$6,285 $7,017 $12,481 $14,199 Operating expenses: Direct operating
costs (includes depreciation and amortization of $510 and $666 for
the three months ended June 30, 2009 and 2008, respectively, and
depreciation and amortization of $1,003 and $1,385 for the six
months ended June 30, 2009 and 2008, respectively) 1,524 1,980
3,026 4,076 Selling, general and administrative 4,859 7,000 9,691
14,265 Depreciation and amortization (excluding depreciation and
amortization included in direct operating costs) 213 145 340 267
--- --- --- --- Total operating expenses $6,596 $9,125 $13,057
$18,608 ------ ------ ------- ------- Operating loss $(311)
$(2,108) $(576) $(4,409) ----- -------- ------ ------- Other income
(expense): Interest income 21 43 64 102 Interest expense (10) -
(12) - --- --- --- --- Total other income $11 $43 $52 $102 --- ---
--- ---- Loss from continuing operations before income taxes $(300)
$(2,065) $(524) $(4,307) (Benefit from) provision for income taxes
(18) 64 13 105 --- --- --- --- Loss from continuing operations
$(282) $(2,129) $(537) $(4,412) Loss from discontinued operations,
net of tax - (216) - (507) --- ---- --- ---- Net loss $(282)
$(2,345) $(537) $(4,919) ===== ======== ====== ======= Net loss per
common share Loss from continuing operations, basic and diluted $-
$(0.04) $(0.01) $(0.08) === ====== ====== ====== Loss from
discontinued operations, basic and diluted $- $- $- $(0.01) === ===
=== ====== Net loss $- $(0.04) $(0.01) $(0.09) === ====== ======
====== Weighted average shares outstanding Basic and diluted 57,762
55,203 56,500 55,195 ====== ====== ====== ====== NTN BUZZTIME, INC.
AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows
(Unaudited) (In thousands) Six months ended ---------------- June
30, June 30, 2009 2008 ---- ---- Cash flows provided by (used in)
operating activities: Net loss $(537) $(4,919) Loss from
discontinued operations, net of tax - (507) Loss from continuing
operations $(537) $(4,412) ----- ------- Adjustments to reconcile
net loss to net cash provided by (used in) operating activities
Depreciation and amortization 1,343 1,652 Provision for doubtful
accounts 31 346 Stock-based compensation 85 219 Loss from
disposition of equipment and capitalized software 40 376 Changes in
operating assets and liabilities: Accounts receivable (163) (49)
Prepaid expenses and other assets (231) 233 Accounts payable and
accrued expenses 218 678 Income taxes payable (44) 52 Deferred
costs 88 73 Deferred revenue (26) (170) --- ---- Net cash provided
by (used in) operating Activities from continuing operations 804
(1,002) Discontinued operations - (789) --- ---- Net cash provided
by (used in) operating activities 804 (1,791) Cash flows (used in)
provided by investing activities: Purchases of broadcast equipment
and fixed assets (701) (1,119) Software development expenditures
(391) (512) Deposits on broadcast equipment (137) - Restricted cash
- 16 --- --- Net cash used in investing activities from continuing
operations (1,229) (1,615) Discontinued operations - 20 --- --- Net
cash used in operating activities (1,229) (1,595) Cash flows
provided by (used in) financing activities: Principal payments on
capital lease (41) (4) Proceeds from the exercise of stock option
and warrants 28 - Proceeds from the sale of common stock 750 - ---
--- Net cash provided by (used in) financing activities 737 (4) ---
-- Net increase (decrease) in cash and cash equivalents 312 (3,390)
--- ------- Effect of exchange rate on cash 171 (267) Cash and cash
equivalents at beginning of period 3,362 10,273 ----- ------ Cash
and cash equivalents at end of period $3,845 $6,616 ====== ======
Supplemental disclosures of cash flow information: Cash paid during
the period for: Interest $9 $- === === Income taxes $107 $94 ====
=== Supplemental disclosure of non-cash investing and financing
activities: Unrealized holding gain (loss) on investments
available-for-sale $38 $(119) === ===== Equipment acquired under
capital leases $457 $- ==== === Issuance of common stock in payment
of preferred dividends $8 $- === === Assumed obligations in
connection with the acquisition of intangible assets $64 $- === ===
Issuance of common stock in connection with the acquisition of
intangible assets $615 $- ==== === Issuance of warrants in
connection with the acquisition of intangible assets $908 $- ====
=== Earn-out in connection with the acquisition of intangible
assets $285 $- ==== ==
http://www.newscom.com/cgi-bin/prnh/20080331/CLM183LOGO
http://photoarchive.ap.org/ DATASOURCE: NTN Buzztime, Inc. CONTACT:
Kendra Berger, Chief Financial Officer of NTN Buzztime, Inc.,
+1-760-438-7400; or CCG Contact, Mark Collinson, Partner, CCG
Investor Relations, +1-310-954-1343 Web Site: http://www.ntn.com/
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