CARLSBAD, Calif., March 6, 2017 /PRNewswire/ -- NTN Buzztime, Inc.
(NYSE MKT: NTN) reported financial results for the fourth quarter
and year ended December 31, 2016.
Also, after a thorough evaluation and competitive pilot, Buffalo
Wild Wings has selected Buzztime to provide menu, order and pay
functionality, including EMV, for guests at all of Buffalo Wild
Wings' domestic corporate and franchise locations, which will
expand the scope of the two companies' existing partnership.
"Fourth quarter provided a strong close to 2016, as significant
operational efforts throughout the year increased gross margin to
65% and improved the bottom line by $4.3
million," said Ram Krishnan, NTN Buzztime CEO. "Now, we are
excited Buffalo Wild Wings awarded Buzztime the order and pay with
EMV functionality. We have enjoyed a mutually beneficial
partnership with Buffalo Wild Wings throughout the years and are
thrilled to expand our relationship. We believe technology
used to improve entertainment and service is critical to the guest
experience. In 2017, we will continue investing in the platform as
well as driving revenue with our growing distribution channels. We
are excited to build upon our successes and generate shareholder
value."
Buzztime launched its ordering and payment technology in the
market close to two years ago and will now add Buffalo Wild Wings
to the growing list of customers adopting Buzztime's ordering,
payment and EMV technology. The Buzztime handheld form factor
invites multiple players at the table, and by using technology to
continually augment entertainment and service, it enhances the
guest experience. The guest-facing tablets provide valuable data
and insights to store management. Further, EMV payment
functionality provides security and fraud protection while enabling
payment at the table.
Financial Results for the Fourth Quarter Ended December 31, 2016
Total revenues were $6.0 million for
the fourth quarter of 2016. This was up compared to
$5.4 million for the third quarter of
2016 due to increases in sales-type lease and other revenue, but
down compared to $6.5 million for the
fourth quarter of 2015 reflecting expected lower sales-type lease
revenue, partially offset by increases in other revenues. Direct
costs were $2.1 million, down 38%
from $3.3 million for the same period
in 2015 due to the lower sales-type lease revenues as well as
reduced scrap and repair costs. As a result, gross margin increased
to 65%, up from 49% in the prior year quarter. Selling, general and
administrative expenses were $4.1
million for the fourth quarter of 2016, compared to
$4.0 million for the same period in
2015. Net loss was $459,000, or
$0.22 per share, improving from
$990,000, or $0.54 per share, for the fourth quarter of
2015. EBITDA was $390,000, up
from $52,000 in the same period last
year.
EBITDA is defined as earnings before interest, taxes,
depreciation and amortization and is not intended to represent a
measure of performance in accordance with accounting principles
generally accepted in the United
States (GAAP). Although EBITDA is positive for the
fourth quarter of 2016, EBITDA may not be positive in future
quarters. A detailed description and reconciliation of EBITDA and
management's reasons for using this measure is set forth at the end
of this press release.
Financial Results for the Year Ended December 31, 2016
Total revenues were $22.3 million for
2016, compared to $24.5 million for
2015 reflecting expected lower sales-type lease revenue that offset
increases in other revenues. Direct costs were $7.7 million, down 39% from $12.6 million for 2015 due to the lower
sales-type lease revenues as well as reduced scrap and repair
costs. As a result, gross margin also increased to 65%, up from 49%
in 2015. Selling, general and administrative expenses were
$16.5 million, down 9% compared to
2015. Net loss was $2.9 million, or
$1.54 per share, improving
$4.3 million from $7.2 million, or $3.93 per share, for 2015. EBITDA was
$578,000, compared to an EBITDA loss
of $3.6 million in 2015.
Metric Review for the Quarter Ended December 31, 2016
The site count was 2,814 venues and, as expected, decreased
compared to 2,848 as of September 30,
2016. Management anticipates the net count will continue to
fluctuate. As of December 31, 2016,
BEOND platform installations increased to 1,996 locations, or 71%
of the installed base, compared to 1,968 or 69% of the installed
base, as of September 30, 2016.
Liquidity
Cash and cash equivalents were $5.7
million at December 31, 2016,
compared to $3.2 million as of
December 31, 2015, reflecting
$2.7 million raised in November 2016. Working capital, as of
December 31, 2016, was $4.0 million, flat from December 31, 2015.
Subsequent to quarter close, the company signed an amendment
to its credit facility with its primary lender, East West Bank, providing flexibility with
short-term working capital..
Conference Call
Management will review the results on a conference call with a live
question and answer session today, March 6,
2017, at 4:30 p.m. ET. To
access the call, please use passcode 76178694:
- (877) 307-1373 for the live call and (855) 859-2056 for the
replay, if calling from the United
States or Canada; or
- (678) 224-7873 for the live call and (404) 537-3406 for the
replay, if calling internationally.
The call will also be accompanied live by webcast over the
Internet and accessible at the company's website at
http://www.buzztime.com. The replay of the call will be
available until March 16, 2017.
Forward-looking Statements
This release contains forward-looking statements which reflect
management's current views of future events and operations.
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
statements about our growth plans, delivery of order and
payment technology, value of our product to our customers and their
guests, security and fraud protection for our customers and their
guests, future investments in our product platform and expansion of
partnership. 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.
About Buzztime
Buzztime (NYSE MKT: NTN) delivers interactive entertainment and
innovative dining technology to bars and restaurants in
North America. Venues license
Buzztime's customizable solution to differentiate themselves via
competitive fun by offering guests trivia, card, sports and arcade
games, nationwide competitions, personalized menus and self-service
dining features. Buzztime's platform improves operating
efficiencies, creates connections among the players and venues, and
amplifies guests' positive experiences. Founded in 1984, Buzztime
has accumulated over 9 million player registrations and over 136
million games were played in 2016 alone. For more information,
please visit http://www.buzztime.com or follow us on Facebook or
Twitter @buzztime.
IR AGENCY CONTACT:
Kirsten Chapman/Becky Herrick, LHA Investor Relations
buzztime@lhai.com
415-433-3777
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
Consolidated
Balance Sheets
|
(In thousands,
except par value amount)
|
|
ASSETS
|
December
31,
2016
|
|
December
31,
2015
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
5,686
|
|
$
3,223
|
Accounts receivable,
net
|
928
|
|
919
|
Site equipment to be
installed
|
2,998
|
|
3,990
|
Prepaid expenses and
other current assets
|
1,050
|
|
978
|
Total current
assets
|
10,662
|
|
9,110
|
|
|
|
|
Fixed assets,
net
|
3,101
|
|
3,915
|
Software development
costs, net
|
970
|
|
943
|
Deferred
costs
|
904
|
|
1,328
|
Goodwill
|
937
|
|
909
|
Intangible assets,
net
|
29
|
|
79
|
Other
assets
|
92
|
|
124
|
|
|
|
|
Total
assets
|
$
16,695
|
|
$
16,408
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
247
|
|
$
211
|
Accrued
compensation
|
1,060
|
|
1,024
|
Accrued
expenses
|
697
|
|
670
|
Sales taxes
payable
|
142
|
|
192
|
Income taxes
payable
|
4
|
|
22
|
Current portion of
long-term debt
|
2,988
|
|
1,072
|
Current portion of
obligations under capital leases
|
155
|
|
78
|
Current portion of
deferred revenue
|
1,059
|
|
1,214
|
Other current
liabilities
|
291
|
|
639
|
Total current
liabilities
|
6,643
|
|
5,122
|
|
|
|
|
Long-term
debt
|
5,123
|
|
6,366
|
Obligations under
capital leases
|
259
|
|
138
|
Deferred
revenue
|
219
|
|
393
|
Deferred
rent
|
371
|
|
541
|
Other
liabilities
|
12
|
|
--
|
Total
liabilities
|
12,627
|
|
12,560
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Series A 10%
cumulative convertible preferred stock, $0.005 par value, $156
liquidation preference, 5,000 shares authorized; 156 shares issued
and outstanding at December 31, 2016 and 2015
|
1
|
|
1
|
Common stock, $0.005
par value, 168,000 shares authorized at December 31, 2016 and 2015;
2,261 and 1,849 shares issued and outstanding at December 31, 2016
and 2015, respectively
|
11
|
|
9
|
Treasury stock, at
cost, 10 shares at December 31, 2016 and 2015
|
(456 )
|
|
(456 )
|
Additional paid-in
capital
|
132,315
|
|
129,209
|
Accumulated
deficit
|
(128,026 )
|
|
(125,087 )
|
Accumulated other
comprehensive income
|
223
|
|
172
|
Total shareholders'
equity
|
4,068
|
|
3,848
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
16,695
|
|
$
16,408
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(In thousands,
except per share data)
|
|
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
|
|
Subscription
revenue
|
$
4,356
|
|
$
4,392
|
|
$
17,463
|
|
$ 17,062
|
Sales-type lease
revenue
|
427
|
|
1,127
|
|
1,266
|
|
4,202
|
Other
revenue
|
1,197
|
|
1,002
|
|
3,583
|
|
3,255
|
Total
revenues
|
5,980
|
|
6,521
|
|
22,312
|
|
24,519
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Direct operating costs
(includes depreciation and amortization)
|
2,087
|
|
3,346
|
|
7,710
|
|
12,570
|
Selling, general and
administrative
|
4,098
|
|
3,954
|
|
16,458
|
|
18,060
|
Impairment of
capitalized software
|
--
|
|
--
|
|
--
|
|
295
|
Depreciation and
amortization (excluding depreciation and amortization included in
direct costs
|
95
|
|
124
|
|
422
|
|
489
|
Total operating
expenses
|
6,280
|
|
7,424
|
|
24,590
|
|
31,414
|
Operating
loss
|
(300 )
|
|
(903 )
|
|
(2,278 )
|
|
(6,895 )
|
Other (expense)
income:
|
|
|
|
|
|
|
|
Interest
income
|
--
|
|
--
|
|
--
|
|
3
|
Interest
expense
|
(146 )
|
|
(111 )
|
|
(576 )
|
|
(484 )
|
Other
income
|
(6 )
|
|
23
|
|
(31 )
|
|
162
|
Total other expense,
net
|
(152 )
|
|
(88 )
|
|
(607 )
|
|
(319 )
|
Loss before income
taxes
|
(452 )
|
|
(991 )
|
|
(2,885 )
|
|
(7,214 )
|
(Provision) benefit
for income taxes
|
(7 )
|
|
1
|
|
(38 )
|
|
(12 )
|
Net loss
|
$
(459 )
|
|
$
(990 )
|
|
$ (2,923
)
|
|
$ (7,226
)
|
|
|
|
|
|
|
|
|
Net loss per common
share – basic and diluted
|
$ (0.22
)
|
|
$ (0.54
)
|
|
$ (1.54
)
|
|
$ (3.93
)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding – basic and diluted
|
2,094
|
|
1,838
|
|
1,903
|
|
1,838
|
|
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
|
|
|
Net loss
|
$
(459 )
|
|
$
(990 )
|
|
$ (2,923
)
|
|
$ (7,226
)
|
Foreign currency
translations adjustment
|
(39 )
|
|
(56 )
|
|
51
|
|
(307 )
|
Total comprehensive
loss
|
$
(498 )
|
|
$ (1,046
)
|
|
$ (2,872
)
|
|
$ (7,533
)
|
|
|
|
|
|
|
|
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
Twelve months
ended
December
31,
|
|
2016
|
|
2015
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
Net loss
|
$ (2,923 )
|
|
$ (7,226 )
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,887
|
|
3,104
|
Provision for doubtful
accounts
|
74
|
|
12
|
Excess and obsolete
site equipment to be installed expense
|
63
|
|
797
|
Transfer of fixed
assets to sales-type lease
|
5
|
|
--
|
Stock-based
compensation
|
419
|
|
456
|
Amortization of debt
issuance costs
|
36
|
|
18
|
Issuance of common
stock to consultant in lieu of cash payment
|
--
|
|
1
|
Impairment of
capitalized software
|
--
|
|
295
|
Loss from disposition
of equipment
|
33
|
|
28
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(83 )
|
|
1,250
|
Site equipment to be
installed
|
(217 )
|
|
(1,394 )
|
Prepaid expenses and
other liabilities
|
121
|
|
(235 )
|
Accounts payable and
accrued expenses
|
47
|
|
(372 )
|
Income taxes
payable
|
(19 )
|
|
(72 )
|
Deferred
costs
|
425
|
|
(241 )
|
Deferred
revenue
|
(327 )
|
|
(608 )
|
Deferred
rent
|
(170 )
|
|
(152 )
|
Other
liabilities
|
(348 )
|
|
159
|
Net cash provided by
(used in) operating activities
|
23
|
|
(4,180 )
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
Capital
expenditures
|
(427 )
|
|
(991 )
|
Software development
expenditures
|
(413 )
|
|
(641 )
|
Proceeds from the sale
of equipment
|
--
|
|
9
|
Net cash used in
investing activities
|
(840 )
|
|
(1,623 )
|
|
|
|
|
Cash flows provided
by financing activities:
|
|
|
|
Net proceeds from issuance of common stock related
to registered direct offering
|
2,692
|
|
--
|
Proceeds from
long-term debt
|
2,502
|
|
6,737
|
Payment on long-term
debt
|
(1,829 )
|
|
(4,618 )
|
Debit issuance costs
of long-term deb
|
(9 )
|
|
(81 )
|
Principal payments on
capital lease
|
(81 )
|
|
(58 )
|
Payment to cashed-out
stockholders in connection with reverse/forward stock split
|
(3 )
|
|
--
|
Payment of preferred
stockholder dividends
|
(16 )
|
|
--
|
Net cash provided
by financing activities
|
3,256
|
|
1,980
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
2,439
|
|
(3,823 )
|
Effect of exchange
rate on cash
|
24
|
|
(139 )
|
Cash and cash
equivalents at beginning of period
|
3,223
|
|
7,185
|
Cash and cash
equivalents at end of period
|
5,686
|
|
3,223
|
Non-GAAP Information
A schedule reconciling the Company's consolidated net loss
calculated in accordance with GAAP to EBITDA is included in the
supplemental table below. The Company defines EBITDA as earnings
before interest, taxes, depreciation and amortization. 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) to EBITDA:
|
Three months
ended
December
31,
|
|
Twelve months
ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net loss per
GAAP
|
$
(459 )
|
|
$
(990 )
|
|
$ (2,923
)
|
|
$ (7,226 )
|
Interest expense,
net
|
146
|
|
111
|
|
576
|
|
481
|
Income tax
provision
|
7
|
|
(1 )
|
|
38
|
|
12
|
Depreciation and
amortization
|
696
|
|
932
|
|
2,887
|
|
3,104
|
Total
EBITDA
|
$
390
|
|
$
52
|
|
$
578
|
|
$ (3,629 )
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ntn-buzztime-inc-expands-partnership-with-buffalo-wild-wings-and-reports-fourth-quarter-and-year-end-2016-results-300418600.html
SOURCE NTN Buzztime, Inc.