CARLSBAD, Calif., May 3, 2017 /PRNewswire/ -- NTN Buzztime,
Inc. (NYSE MKT: NTN) reported financial results for the first
quarter ended March 31, 2017.
"We are very excited about 2017 as we leverage our unique
technology, player base and enhanced guest experience to expand our
customers, invest in our technology and grow our distribution
channels," said Ram Krishnan, NTN Buzztime CEO. "In March, we
achieved a significant milestone winning the Buffalo Wild Wings
award to deliver order and pay with EMV functionality where we beat
the competition in a head-to-head trial. Also during the quarter,
we launched Spaceteam throughout our entire network and it has
exceeded expectations with strong engagement and group
gaming. Our plan is to introduce the Buzztime Effect into
adjacent vertical markets, which we expect will diversify our
revenue streams over time. Combined with our successful equity
financings to fund working capital and growth, we are executing our
plan to generate long-term shareholder value."
Operational Highlights
- Expanded relationship with Buffalo Wild Wings to include menu,
order & EMV functionality.
- Launched Spaceteam, an award-winning multi-player game that
creates social engagement between guests at the table, leveraging
Buzztime's unique form factor.
- Closed financing, positioning the company to increase
shareholder equity to a level that management believes will enable
the company to regain NYSE MKT listing compliance.
Financial Results for the First Quarter Ended March 31, 2017
Total revenues were
$5.2 million for the first quarter of
2017, compared to $5.5 million for
the first quarter of 2016. The modest decline reflects lower site
count, partially offset by increases in other revenues. Direct
costs were $1.8 million, down from
$2.0 million for the same period in
2016 due to the lower sales-type lease revenues as well as reduced
depreciation expense, offset by increased repair expense. Gross
margin increased to 65%, up from 63% in the prior year quarter.
Selling, general and administrative expenses were $4.1 million, compared to $4.2 million for the same period in 2016. Net
loss, which included non-recurring other income of $750,000, was $90,000, or $0.04
per share, compared to $1.0 million,
which included other expense of $154,000, or $0.57
per share, for the first quarter of 2016. EBITDA was positive
at $654,000, up from an EBITDA loss
of $138,000 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
first quarter of 2017, 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.
Metric Review for the Quarter Ended March 31, 2017
The site count was 2,788
venues and, as expected, decreased compared to 2,814 as of
December 31, 2016. Management
anticipates the net site count will continue to fluctuate. As of
March 31, 2017, BEOND platform
installations increased to 2,057 locations, or 74% of the installed
base, compared to 1,996 locations, or 71% of the installed base, as
of December 31, 2016.
Liquidity
Cash and cash equivalents were $6.1 million at March 31,
2017, compared to $5.7 million
at December 31, 2016, reflecting
$1.6 million of net proceeds raised
in an equity offering that closed in March
2017. Working capital, as of March
31, 2017 was $1.1 million
compared to $4.0 million as of
December 31, 2016.
Due to an equity raise of approximately $219,000, net of expenses, that closed in April,
NTN Buzztime believes it will regain compliance with the NYSE MKT
continued listing standard of $6
million in shareholders' equity. However, NYSE
Regulation will need to make such determination, which will then be
disclosed publicly.
Conference Call
Management will review the results on
a conference call with a live question and answer session today,
May 3, 2017, at 4:30 p.m. ET. To access the call, please use
passcode 10875098:
- (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 May 10, 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, the expansion of our
partnership with Buffalo Wild Wings, delivery of order and payment
technology, diversification of revenue streams and the value of our
product to our customers and their guests. 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
|
(unaudited)
|
(In thousands,
except par value amount)
|
|
ASSETS
|
March
31, 2017
|
|
December
31, 2016
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
6,113
|
|
$
5,686
|
Accounts receivable,
net
|
1,765
|
|
928
|
Site equipment to be
installed
|
2,568
|
|
2,998
|
Prepaid expenses and
other current assets
|
1,189
|
|
1,050
|
Total current
assets
|
11,635
|
|
10,662
|
|
|
|
|
Fixed assets,
net
|
2,910
|
|
3,101
|
Software development
costs, net
|
1,065
|
|
970
|
Deferred
costs
|
851
|
|
904
|
Goodwill
|
946
|
|
937
|
Intangible assets,
net
|
17
|
|
29
|
Other assets
|
110
|
|
92
|
|
|
|
|
Total
assets
|
$
17,534
|
|
$
16,695
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
513
|
|
$
247
|
Accrued
compensation
|
519
|
|
1,060
|
Accrued
expenses
|
561
|
|
697
|
Sales taxes
payable
|
101
|
|
142
|
Income taxes
payable
|
(17)
|
|
4
|
Current portion of
long-term debt
|
7,306
|
|
2,988
|
Current portion of
obligations under capital leases
|
155
|
|
155
|
Current portion of
deferred revenue
|
1,037
|
|
1,059
|
Other current
liabilities
|
347
|
|
291
|
Total current
liabilities
|
10,522
|
|
6,643
|
|
|
|
|
Long-term
debt
|
446
|
|
5,123
|
Obligations under
capital leases
|
220
|
|
259
|
Deferred
revenue
|
179
|
|
219
|
Deferred
rent
|
326
|
|
371
|
Other
liabilities
|
13
|
|
12
|
Total
liabilities
|
11,706
|
|
12,627
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Series A convertible
preferred stock, $0.005 par value, $156 liquidation preference,
5,000 shares designated; 156 shares issued and outstanding at March
31, 2017 and December 31, 2016
|
1
|
|
1
|
Common stock, $0.005
par value, 168,000 shares authorized at March 31, 2017 and December
31, 2016; 2,484 and 2,261 shares issued and outstanding at March
31, 2017 and December 31, 2016, respectively
|
12
|
|
11
|
Treasury stock, at
cost, 10 shares at March 31, 2017 and December 31, 2016
|
(456)
|
|
(456)
|
Additional paid-in
capital
|
134,149
|
|
132,315
|
Accumulated
deficit
|
(128,116)
|
|
(128,026)
|
Accumulated other
comprehensive income
|
238
|
|
223
|
Total shareholders'
equity
|
5,828
|
|
4,068
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
17,534
|
|
$
16,695
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(unaudited)
|
(In thousands,
except per share data)
|
|
|
Three months
ended March
31,
|
|
|
2017
|
|
2016
|
|
Revenues
|
|
|
|
|
Subscription
revenue
|
$
4,226
|
|
$
4,374
|
|
Sales-type lease
revenue
|
185
|
|
396
|
|
Other
revenue
|
820
|
|
712
|
|
Total
revenues
|
5,231
|
|
5,482
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Direct operating costs
(includes depreciation and amortization)
|
1,843
|
|
2,036
|
|
Selling, general and
administrative
|
4,134
|
|
4,200
|
|
Depreciation and
amortization (excluding depreciation and amortization included in
direct costs
|
88
|
|
114
|
|
Total operating
expenses
|
6,065
|
|
6,350
|
|
Operating
loss
|
(834)
|
|
(868)
|
|
Other income
(expense), net
|
750
|
|
(154)
|
|
Loss before income
taxes
|
(84)
|
|
(1,022)
|
|
Provision for income
taxes
|
(6)
|
|
(19)
|
|
Net loss
|
$
(90)
|
|
$
(1,041)
|
|
|
|
|
|
|
Net loss per common
share – basic and diluted
|
$
(0.04)
|
|
$
(0.57)
|
|
|
|
|
|
|
Weighted average
shares outstanding – basic and diluted
|
2,255
|
|
1,839
|
|
|
|
|
|
|
Comprehensive
loss:
|
|
|
|
|
Net loss
|
$
(90)
|
|
$
(1,041)
|
|
Foreign currency
translations adjustment
|
15
|
|
113
|
|
Total comprehensive
loss
|
$
(75)
|
|
$
(928)
|
|
NTN BUZZTIME, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(unaudited)
|
(In
thousands)
|
|
|
Three months
ended March
31,
|
|
2017
|
|
2016
|
Cash flows used in
operating activities:
|
|
|
|
Net loss
|
$
(90)
|
|
$ (1,041)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
579
|
|
757
|
Provision for doubtful
accounts
|
26
|
|
24
|
Excess and obsolete
site equipment to be installed expense
|
--
|
|
25
|
Stock-based
compensation
|
118
|
|
113
|
Amortization of debt
issuance costs
|
12
|
|
10
|
Issuance of common
stock in lieu of cash payment for bonus compensation
|
164
|
|
--
|
Loss from disposition
of equipment
|
--
|
|
5
|
Changes in assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(863)
|
|
126
|
Site equipment to be
installed
|
208
|
|
(115)
|
Prepaid expenses and
other liabilities
|
(148)
|
|
(76)
|
Accounts payable and
accrued expenses
|
(450)
|
|
(209)
|
Income taxes
payable
|
(22)
|
|
(1)
|
Deferred
costs
|
53
|
|
29
|
Deferred
revenue
|
(62)
|
|
(7)
|
Deferred
rent
|
(45)
|
|
(40)
|
Other
liabilities
|
55
|
|
(104)
|
Net cash used in
operating activities
|
(466)
|
|
(504)
|
|
|
|
|
Cash flows used in
investing activities:
|
|
|
|
Capital
expenditures
|
(97)
|
|
(177)
|
Software development
expenditures
|
(152)
|
|
(99)
|
Net cash used in
investing activities
|
(249)
|
|
(276)
|
|
|
|
|
Cash flows provided
by financing activities:
|
|
|
|
Net proceeds from
issuance of common stock related to registered direct offering
|
1,554
|
|
--
|
Proceeds from
long-term debt
|
--
|
|
2,114
|
Payment on long-term
debt
|
(359)
|
|
(1,035)
|
Debit issuance costs
of long-term deb
|
(22)
|
|
(5)
|
Principal payments on
capital lease
|
(38)
|
|
(21)
|
Net cash provided by
financing activities
|
1,135
|
|
1,053
|
|
|
|
|
Net increase in cash
and cash equivalents
|
420
|
|
273
|
Effect of exchange
rate on cash
|
7
|
|
53
|
Cash and cash
equivalents at beginning of period
|
5,686
|
|
3,223
|
Cash and cash
equivalents at end of period
|
6,113
|
|
3,549
|
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 March
31,
|
|
2017
|
|
2016
|
Net loss per
GAAP
|
$
(90)
|
|
$
(1,041)
|
Interest expense,
net
|
159
|
|
127
|
Income tax
provision
|
6
|
|
19
|
Depreciation and
amortization
|
579
|
|
757
|
Total
EBITDA
|
$
654
|
|
$
(138)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ntn-buzztime-inc-reports-first-quarter-2017-results-300450875.html
SOURCE NTN Buzztime, Inc.