CARLSBAD, Calif., May 14 /PRNewswire-FirstCall/ -- NTN Buzztime,
Inc. (NYSE Amex: NTN) today announced results for the fiscal year
2009 first quarter ended March 31, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080331/CLM183LOGO) "Our
first-quarter results and recent strategic initiatives show that we
are fulfilling our commitments to stabilize and grow our site
count, reduce expenses, expand our reach in out-of-home advertising
- including promotions and advertiser-sponsored events - and
introduce our popular games into the online and mobile arena,"
commented NTN Buzztime CEO Terry Bateman. "Our net site count grew
by 18 sites during the first quarter of 2009. We have reduced
payroll by approximately $700,000 compared to the same quarter last
year and cut overall SG&A expenses from approximately $7.3
million in last year's first quarter to $4.8 million in the 2009
first quarter. We have definitely made progress on our planned
turnaround and are working to keep the momentum growing." Mr.
Bateman continued, "On the business-building side of the equation,
we have jump-started our planned expansion into mobile and online
games through our April acquisition of iSports, supporting our
plans to launch this exciting new platform by the third quarter of
this year. This month, we have purchased the assets of the i-am TV
out-of-home advertising network from Instant Access Media. We
believe this acquisition will contribute to the growth and value of
our network allowing us to offer powerful media and sponsorship
opportunities to major national advertisers. We are especially
pleased to have made both of these strategic acquisitions with
equity instead of cash or debt." Results for the Quarter Ended
March 31, 2009 Revenues decreased by $986,000 or 14% to $6.2
million for the first quarter of 2009, compared to revenues of $7.2
million for the first quarter of 2008, primarily due to a planned
decline in the average revenue per unit (ARPU) as the Company moved
more aggressively into high-traffic locations in top 30 designated
market areas. The Company ended the first quarter of 2009 with
3,764 subscribing venues compared to 3,777 at March 31, 2008 and
3,746 at December 31, 2008. For the first quarter of 2009
installations were up approximately 15% while terminations were
down 25% compared with the first quarter of 2008. Customer churn
improved to 6.7% for the quarter from 8.8% in the prior year
period. Total site counts Q1 Q1 Increase and churn percentages 2009
2008 (Decrease) Site Count - Beginning of Quarter 3,746 3,877 (131)
Q1 Installations 270 235 35 Q1 Terminations (252) (335) (83) Site
Count - End of Quarter 3,764 3,777 (13) Churn Percentage 6.7% 8.8%
(2.1) Gross margin as a percentage of revenue improved to 76% for
the first quarter of 2009 compared to 71% for the first quarter of
2008. Quarterly selling, general and administrative expenses
decreased year over year by $2.4 million or 33% to $4.8 million for
the first quarter of 2009 from approximately $7.3 million for the
first quarter of 2008. Net loss for the first quarter of 2009
totaled $255,000, or less than one cent per share. This represented
a reduction in net loss of approximately $2.3 million or 90% as
compared to the net loss of approximately $2.6 million, or 5 cents
per share, recorded for the first quarter of 2008. For the quarter
ended March 31, 2009, results from continuing operations reflected
solely the results from the Entertainment division, following the
discontinuation of the Hospitality division. Discontinued
Operations Discontinued operations generated no net income in the
first quarter of 2009 compared to a net loss from discontinued
operations of $291,000 in the 2008 first quarter. Conference Call
Management will review these results in a conference call today,
May 14, 2009, at 4:30 p.m. Eastern Time. To access the conference
call, please dial 1-866-360-7027 if calling from the United States
or Canada, or 1-706-643-3291 if calling internationally. Please
dial in several minutes prior to start time for registration
purposes. A replay will be available until May 21, 2009, which can
be accessed by dialing 1-800-642-1687 if calling from the United
States or Canada or 1-706-645-9291 if calling internationally.
Please use passcode 98631328 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 3,760 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)
477-9800, ext. 117 (financial tables follow) NTN BUZZTIME, INC. AND
SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In
thousands, except share data) March 31, December 31, 2009 2008
ASSETS Current assets: Cash and cash equivalents $3,311 $3,362
Accounts receivable, net of allowances of $401 and $298,
respectively 614 636 Investments available-for-sale 76 58 Prepaid
expenses and other current assets 695 611 Total current assets
4,696 4,667 Broadcast equipment and fixed assets, net 3,375 3,428
Software development costs, net 949 860 Deferred costs 1,346 1,383
Goodwill 1,009 1,032 Intangible assets, net 171 185 Other assets
112 107 Total assets $11,658 $11,662 LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Accounts payable $482 $219 Accrued
expenses 1,232 1,169 Sales tax payable 676 958 Accrued salaries 325
383 Accrued vacation 336 381 Income tax payable 5 18 Obligation
under capital lease-current portion 77 8 Deferred revenue 675 657
Total current liabilities 3,808 3,793 Sales tax payable, excluding
current portion 225 - Obligations under capital lease, excluding
current portion 103 32 Deferred revenue, excluding current portion
92 91 Total liabilities 4,228 3,916 Commitments and contingencies
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 March
31, 2009 and December 31, 2008 1 1 Common stock, $.005 par value,
84,000,000 shares authorized; 55,727,000 shares issued and
outstanding at March 31, 2009 and December 31, 2008, respectively
277 277 Treasury stock, at cost, 503,000 shares at March 31, 2009
and December 31, 2008 (456) (456) Additional paid-in capital
113,306 113,267 Accumulated deficit (105,606) (105,351) Accumulated
other comprehensive income (92) 8 Total shareholders' equity 7,430
7,746 Total shareholders' equity and liabilities $11,658 $11,662
NTN BUZZTIME, INC. AND SUBSIDIARIES Condensed Consolidated
Statements of Operations (Unaudited) (In thousands, except per
share data) Three months ended March 31, March 31, 2009 2008
Revenues $6,196 $7,182 Operating expenses: Direct operating costs
(includes depreciation and amortization of $493 and $719 for the
three months ended March 31, 2009 and 2008, respectively 1,502
2,096 Selling, general and administrative 4,832 7,265 Depreciation
and amortization (excluding depreciation and amortization included
in direct operating costs) 127 122 Total operating expenses $6,461
$9,483 Operating loss $(265) $(2,301) Other income (expense):
Interest income 43 59 Interest expense (2) - Total other income $41
$59 Loss from continuing operations before income taxes $(224)
$(2,242) Provision for income taxes 31 41 Loss from continuing
operations $(255) $(2,283) Loss from discontinued operations -
(291) Net loss $(255) $(2,574) Net loss per common share Loss from
continuing operations, basic and diluted $(0.00) $(0.04) Loss from
discontinued operations, basic and diluted $- $(0.01) Net loss
$(0.00) $(0.05) Weighted average shares outstanding Basic and
diluted 55,224 55,187 NTN BUZZTIME, INC. AND SUBSIDIARIES Condensed
Consolidated Statements of Cash Flows (Unaudited) (In thousands)
Three months ended March 31, March 31, 2009 2008 Cash flows
provided by (used in) operating activities: Net loss $(255)
$(2,574) Loss from discontinued operations, net of tax - 291 Loss
from continuing operations $(255) $(2,283) Adjustments to reconcile
net loss to net cash provided by (used in) operating activities
Depreciation and amortization 620 841 Provision for doubtful
accounts 31 180 Stock-based compensation 39 122 Loss from
disposition of equipment and capitalized software 39 231 Changes in
operating assets and liabilities: Accounts receivable (12) 68
Prepaid expenses and other assets (91) 80 Accounts payable and
accrued expenses 169 10 Income taxes payable (14) 22 Deferred costs
33 21 Deferred revenue 19 (170) Net cash provided by (used in)
operating activities from continuing operations 578 (878)
Discontinued operations - (360) Net cash provided by (used in)
operating activities 578 (1,238) Cash flows (used in) provided by
investing activities: Purchases of broadcast equipment and fixed
assets (338) (778) Software development expenditures (200) (218)
Proceeds from sale of equipment and other assets - 78 Restricted
cash - 16 Net cash used in investing activities from continuing
operations (538) (902) Discontinued operations - - Net cash used in
investing activities (538) (902) Cash flows used in financing
activities: Principal payments on capital lease (9) (2) Net cash
used in financing activities (9) (2) Net increase (decrease) in
cash and cash equivalents 31 (2,142) Effect of exchange rate on
cash (82) (277) Cash and cash equivalents at beginning of period
3,362 10,273 Cash and cash equivalents at end of period $3,311
$7,854 Supplemental disclosures of cash flow information: Cash paid
during the period for: Interest $1 $- Income taxes $90 $ 21
Supplemental disclosure of non-cash investing and financing
activities: Unrealized holding gain (loss) on investments
available-for-sale $18 $(125) Equipment acquired under capital
lease $149 $-
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 Mark Collinson, Partner of CCG Investor
Relations, +1-310-477-9800, ext. 117, for NTN Buzztime, Inc. Web
Site: http://www.ntn.com/
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