The BEOND Platform Reaches 1,106 Sites, 37% of the Installed Base at Q4 2014 Close
CARLSBAD, Calif., March 26, 2015 — NTN Buzztime, Inc. (NYSE MKT: NTN), reported financial results for the fourth-quarter and full-year ended December 31, 2014.
“In 2014, we began our technology transformation with the BEOND platform rollout and made significant strides,” said Ram Krishnan, NTN Buzztime CEO. “We started the year with only 4% of our installed base using the BEOND platform and ended the year at 37%, or 1,106 sites, 710 of which are Buffalo Wild Wings. We expect to close the first quarter with the BEOND platform installed at 41% of our locations. Also, we recently achieved a milestone releasing the next version of our trivia platform with Jackpot Trivia. This game and others in our pipeline are broadening our player base.
“The restaurant industry is ripe for change, and our BEOND platform meets these needs by creating unique social entertainment with mobile tablets that engage patrons throughout their experience from arrival to departure; creating affinity for our venues when patrons are thinking about where to go next time; and yielding operational efficiencies when seamlessly integrated with point-of-sale technology. 2015 will be a year of transition. While we expect the Classic Playmaker churn to exceed the increases in the BEOND platform installations in the near term, we are executing initiatives to create long-term value. We are focused on converting Buffalo Wild Wings to the BEOND platform. Our product team will continue to build proprietary, interactive games targeted for specific demographics that expand our audience, gameplay and premium engagement. As we scale the business, our sales team is targeting more experience-focused brands to broaden our marketplace. In addition, we are increasing premium services and extending revenue streams for our customers and Buzztime alike. Overall, the company is aligned to fulfill our objective of monetizing consumer entertainment, and I am excited about the future.”
Results for the Fourth-Quarter Ended December 31, 2014
Revenues grew 3% to $6.8 million, compared to $6.6 million for the same period in 2013, reflecting increased equipment revenue under sales-type lease agreements associated with the BEOND platform conversion. Direct costs were $3.6 million, compared to $2.7 million for the same period in 2013, up primarily due to costs related to the BEOND platform deployment. Selling, general and administrative expenses were $4.6 million, compared to $4.0 million for the same period in 2013, reflecting the investment in key personnel. Net loss was $1.7 million, or $0.02 per share, compared to $0.4 million, or $0.00 per share, in the same period a year ago.
At December 31, 2014, cash and cash equivalents were $7.2 million, compared to $5.5 million at December 31, 2013.
The Company ended the fourth quarter of 2014 with 2,956 subscribing venues, compared to 3,204 as of December 31, 2013. At December 31, 2014, BEOND installations increased to 1,106 locations, or 37% of the installed base compared to 4% at December 31, 2013. At December 31, 2014, the BEOND platform conversion for Buffalo Wild Wings, the largest customer, increased to 710 sites from 530 at the end of the third quarter.
Results for the Full-Year Ended December 31, 2014
Revenues for the year grew 10% to $26.0 million, compared to $23.7 million for the same period in 2013. Net loss was $5.0 million, or $0.06 per share, including expenses to support the BEOND platform rollout and $668,000 in non-cash capitalized software impairment charges. This compares to a 2013 net loss of $1.1 million, or $0.01 per share, which included less equipment rollout expenses and non-cash capitalized software impairment charges of $230,000.
Conference Call
Management will review the results on a conference call today, March 26, 2015, at 4:30 p.m. ET. To access the call, please use passcode 96658489 and dial:
- (877) 307-1373 for the live call and (855) 859-2056 for the replay, if calling from the United States or Canada
- (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 www.buzztime.com. The replay of the call will be available until April 2, 2015.
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 statements about our growth plans, product and platform development, new revenue, acceptance in the marketplace, customer development, growth plans, improved customer and consumer satisfaction and the number of locations, players and games. 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 the risks of unsuccessful execution or launch of products, platforms or brands, risks associated with customer retention and growth plans, the impact of alternative entertainment options and technologies and competitive products, brands, technologies and pricing, adverse economic conditions, the regulatory environment, failure of customer and/or player acceptance or demand for new or existing products, lower market acceptance or appeal of both existing and new products and services by particular demographic groups or audiences as a whole, termination of partnership and contractual relationships and technical problems or outages. 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
NTN Buzztime, Inc. (NYSE MKT: NTN) is a leading bar and restaurant social entertainment and integrated marketing platform. Trusted by bars and restaurants in North America since 1985, Buzztime integrates trivia, card and sports games with in- and out-of-venue messaging and communication tools. With over 6 million player registrations on the Buzztime platform and over 60 million games played each year, Buzztime players spread the word and invite friends and family to their favorite Buzztime locations to enjoy evenings of fun and competition. With Buzztime entertainment and marketing solutions, bars and restaurants can turn casual visitors into regulars, and give patrons a reason to stay longer. For the most up-to-date information on NTN Buzztime, please visit https://www.buzztime.com or follow us on Facebook or Twitter @buzztime.
IR AGENCY CONTACT
Kirsten Chapman/Becky Herrick, LHA
buzztime@lhai.com
415-433-3777