CARLSBAD, Calif., Nov. 12 /PRNewswire-FirstCall/ -- NTN Buzztime,
Inc. (NYSE Amex: NTN) today announced results for the third quarter
ended September 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080331/CLM183LOGO) The
Company ended the third quarter of 2009 with 4,051 Buzztime
subscribing sites which compares to 3,746 sites at the end of 2008
representing a year to date net increase of 305 sites. "Our 4,051
locations represent a tremendous reach into the 21 to 49 year old
demographic in the U.S. Our confidence in serving these locations
and their customers with high quality entertainment is growing,
along with our ability to operate at lower expense levels and
higher levels of productivity," said NTN Buzztime CEO Terry
Bateman. Results for the Quarter Ended September 30, 2009 Revenues
for the third quarter of 2009 were $6.7 million, compared to
revenues of $6.8 million for the same period of 2008. The slight
decline in revenue was largely due to a slight decrease in average
revenue generated per site related to a strategic reduction in
pricing, which was partially offset by a higher site count and an
increase in advertising revenue. The Company ended the third
quarter of 2009 with 4,051 subscribing venues, compared to 3,745 at
September 30, 2008, an increase of 8.2%. During the third quarter
of 2009, installations were up approximately 29% while terminations
were down 33% compared with the third quarter of 2008. Customer
churn improved to 4.9% for the quarter from 7.7% in the prior year
period. Total site counts Q3 Q3 Increase and churn percentages 2009
2008 (Decrease) ---- ---- --------- Site Count - Beginning of
Quarter 3,871 3,746 125 Q3 Installations 374 289 85 Q3 Terminations
(194) (290) (96) Site Count - End of Quarter 4,051 3,745 306 Churn
Percentage 4.9% 7.7% (2.8) Gross margin as a percentage of revenue
improved to 74% in the current quarter, compared to 71% in the
third quarter of 2008. Selling, general and administrative expenses
declined by $0.3 million, or 5%, to $5.5 million from $5.8 million
a year ago. Included in selling general and administrative expenses
for the third quarter of 2009 was an impairment charge of
approximately $222,000 relating to the write-down of capitalized
software expenses. Depreciation and amortization (excluding
depreciation and amortization included in direct operating costs)
increased $0.3 million to $0.4 million for the third quarter of
2009 compared to $0.1 million in the same quarter of 2008. This
increase is primarily due to the amortization of the intangible
assets acquired from Instant Access Media in May 2009. Loss from
continuing operations for the third quarter of 2009 was $768,000,
or one cent per share, compared to a loss from continuing
operations of $1,032,000, or two cents per share, for the same
period a year ago. For the quarter ended September 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 generated no net income in the third quarter of 2009,
compared to net income from discontinued operations of $175,000 in
the same quarter of 2008. Results for the Nine Months Ended
September 30, 2009 Revenue from continuing operations was $19.2
million in the first nine months of 2009, compared to revenue of
$21.0 million for the year-ago period. The decline in revenue was
largely due to a decrease in average revenue generated per site
related to a strategic reduction in pricing, which was partially
offset by higher site count and an increase in advertising revenue.
For the nine months ended September 30, 2009 installations were up
approximately 30% while terminations were down 26% compared to the
same period in the prior year. Customer churn improved to 16.2% for
the nine months ended September 30, 2009 from 22.4% in the prior
year period. Total site counts YTD YTD Increase and churn
percentages 2009 2008 (Decrease) ---- ---- --------- Site Count -
Beginning of Year 3,746 3,877 (131) YTD Installations 938 723 215
YTD Terminations (633) (855) (222) Site Count - End of Quarter
4,051 3,745 306 Churn Percentage 16.2% 22.4% (6.2) Gross margin as
a percentage of revenue improved to 75% from 71% in the first nine
months of 2008. Selling, general and administrative expenses
declined $4.9 million, or 24%, to $15.2 million in the first nine
months of 2009 from $20.0 million in the corresponding period of
the prior year. Depreciation and amortization (excluding
depreciation and amortization included in direct operating costs)
increased $0.4 million to $0.8 million for the first nine months of
2009 compared to $0.4 million in the same period of 2008. This
increase is primarily due to the amortization of the intangible
assets acquired from Instant Access Media in May 2009. For the nine
months ended September 30, 2009, results from continuing operations
solely reflected the results from the Entertainment division,
following the discontinuation of the Hospitality division. Loss
from continuing operations for the first nine months of 2009 was
$1,305,000, or two cents per share, compared to a loss from
continuing operations of $5,444,000 from the same period a year
ago. Discontinued Operations Discontinued operations generated no
net income in the first nine months of 2009, compared to net loss
from discontinued operations of $332,000 in the same period of
2008. Conference Call Management will review these results in a
conference call today, November 12, 2009, at 4:30 p.m. EST. 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 40060420. Please dial in several
minutes prior to start time for registration purposes. A replay
will be available until November 19, 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
40060420 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 4,100 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,
Playmaker and Buzztime iTV Network are registered trademarks 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, building the
business, new sites, access to particular demographics and expense
and productivity levels. 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 unfavorable economic and financing
conditions, failure of product demand or market acceptance of both
existing and new products and services generally and within
particular demographics, the impact of competitive products and
pricing and our ability to foresee and manage expenses and
productivity. 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 share data) September
December 30, 31, 2009 2008 ------ ------ ASSETS Current assets:
Cash and cash equivalents $3,217 $3,362 Accounts receivable, net of
allowances of $328 and $298, respectively 1,106 636 Investments
available-for-sale 180 58 Prepaid expenses and other current assets
719 611 --- --- Total current assets 5,222 4,667 Broadcast
equipment and fixed assets, net 3,748 3,428 Software development
costs, net 1,001 860 Deferred costs 1,228 1,383 Goodwill 1,161
1,032 Intangible assets, net 1,601 185 Other assets 157 107
Deposits on broadcast equipment 41 - --- --- Total assets $14,159
$11,662 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Accounts payable $347 $219 Accrued expenses
1,489 1,169 Sales tax payable 772 958 Accrued salaries 241 383
Accrued vacation 399 381 Income tax payable - 18 Obligations under
capital lease 230 8 Deferred revenue 572 657 --- --- Total current
liabilities 4,050 3,793 Sales tax payable, excluding current
portion 181 - Obligations under capital lease, excluding current
portion 172 32 Deferred revenue, excluding current portion 99 91
Other long term liabilities 285 - --- --- Total liabilities 4,787
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 September 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 September 30, 2009 and December 31, 2008,
respectively 300 277 Treasury stock, at cost, 503,000 shares at
September 30, 2009 and December 31, 2008 (456) (456) Additional
paid-in capital 115,686 113,267 Accumulated deficit (106,664)
(105,351) Accumulated other comprehensive income 505 8 --- ---
Total shareholders' equity 9,372 7,746 ----- ----- Total
shareholders' equity and liabilities $14,159 $11,662 =======
======= NTN BUZZTIME, INC. AND SUBSIDIARIES Condensed Consolidated
Statements of Operations (Unaudited) (In thousands, except share
data) Three months ended Nine months ended --------------------
------------------- September September September September 30, 30,
30, 30, 2009 2008 2009 2008 ------- ------- -------- --------
Revenues $6,717 $6,772 $19,198 $20,971 Operating expenses: Direct
operating costs (includes depreciation and amortization of $570 and
$619 for the three months ended September 30, 2009 and 2008,
respectively, and depreciation and amortization of $1,573 and
$2,004 for the nine months ended September 30, 2009 and 2008,
respectively) 1,743 1,939 4,769 6,014 Selling, general and
administrative 5,474 5,756 15,165 20,022 Depreciation and
amortization (excluding depreciation and amortization included in
direct operating costs) 416 133 756 400 --- --- --- --- Total
operating expenses 7,633 7,828 20,690 26,436 ----- ----- ------
------ Operating loss (916) (1,056) (1,492) (5,465) ---- ------
------ ------ Other income (expense): Interest income 7 27 71 129
Interest expense (23) (4) (35) (4) Other income 155 69 155 69 ---
--- --- --- Total other income 139 92 191 194 --- --- --- --- Loss
from continuing operations before income taxes (777) (964) (1,301)
(5,271) (Benefit from) provision for income taxes (9) 68 4 173 ---
--- --- --- Loss from continuing operations (768) (1,032) (1,305)
(5,444) Loss from discontinued operations, net of tax - 175 - (332)
--- --- --- ---- Net loss $(768) $(857) $(1,305) $(5,776) -----
----- ------- ------- Net loss per common share Loss from
continuing operations, basic and diluted $(0.01) $(0.02) $(0.02)
$(0.10) ------ ------ ------ ------ Loss from discontinued
operations, basic and diluted $- $0.00 $- $(0.01) ---- ----- ----
------ Net loss $(0.01) $(0.02) $(0.02) $(0.11) ------ ------
------ ------ Weighted average shares outstanding Basic and diluted
59,845 55,196 57,628 55,195 ------ ------ ------ ------ NTN
BUZZTIME, INC. AND SUBSIDIARIES Condensed Consolidated Statements
of Cash Flows (Unaudited) (In thousands) Nine months ended
------------------------------ September 30, September 30, 2009
2008 ------------- ------------- Cash flows from operating
activities: Net loss $(1,305) $(5,776) Loss from discontinued
operations, net of tax - 332 --- --- Loss from continuing
operations $(1,305) $(5,444) Adjustments to reconcile net loss to
net cash provided by (used in) operating activities Depreciation
and amortization 2,329 2,404 Provision for doubtful accounts 94 471
Stock-based compensation 133 260 Loss from disposition of equipment
and capitalized software 266 378 Changes in operating assets and
liabilities: Accounts receivable (556) 16 Prepaid expenses and
other assets (106) 154 Accounts payable and accrued expenses 235
672 Income taxes payable (48) 25 Deferred costs 161 (198) Deferred
revenue (82) (162) ---- ---- Net cash provided by (used in)
operating activities from continuing operations 1,121 (1,424)
Discontinued operations - (807) --- ---- Net cash provided by (used
in) operating activities 1,121 (2,231) Cash flows from investing
activities: Purchases of broadcast equipment and fixed assets
(1,486) (1,759) Software development expenditures (660) (649)
Deposits on broadcast equipment (41) - Proceeds from sale of
equipment and other assets - 13 Restricted cash - 16 --- --- Net
cash used in investing activities from continuing operations
(2,187) (2,379) Discontinued operations - 7 --- --- Net cash used
in investing activities (2,187) (2,372) Cash flows from financing
activities: Principal payments on capital lease (94) (11) Proceeds
from the exercise of stock option and warrants 28 - Proceeds from
the sale of common stock 750 - Purchase of treasury stock - (12)
--- ---- Net cash provided by (used in) financing activities 684
(23) --- --- Net decrease in cash and cash equivalents (382)
(4,626) ---- ------ Effect of exchange rate on cash 237 (390) Cash
and cash equivalents at beginning of period 3,362 10,273 -----
------ Cash and cash equivalents at end of period $3,217 $5,257
====== ====== COMPANY CONTACT: Kendra Berger Chief Financial
Officer NTN Buzztime, Inc. (760) 438-7400 CCG CONTACT: Mark
Collinson Partner CCG Investor Relations (310) 954-1343
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, +1-310-954-1343, for NTN Buzztime, Inc. Web Site:
http://www.ntn.com/
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