– Receives $2.7 Million in Net Proceeds Subsequent to Quarter End –
– Improves Net Loss to $573,000, Compared to Net Loss of $1.3 Million in the Third Quarter 2015 –
CARLSBAD, Calif., November 8, 2016 — NTN Buzztime, Inc. (NYSE MKT: NTN), reported financial results for the third quarter ended September 30, 2016.
“During the third quarter, our business fundamentals gained momentum,” said Ram Krishnan, NTN Buzztime CEO. “Our overall average revenue per unit (ARPU) continued to climb; our advertising revenue grew; our gross margins continued to be healthy; and our Gen III tablets continued to deploy well into the field. As a result, Buzztime delivered another quarter of bottom line improvement. Further, in November, management along with new and existing investors demonstrated confidence in our plan by infusing $2.7 million in capital into the company for general operations and growth investments. We are very excited about our prospects.”
Financial Results for the Third-Quarter Ended September 30, 2016
Total revenues were $5.4 million for the third quarter of 2016, stable compared to $5.4 million for the second quarter of 2016 and down compared to $6.1 million for the third quarter of 2015 primarily reflecting expected lower sales-type lease arrangements that offset increases in subscription revenues. Direct costs were $1.7 million, down from $3.2 million for the same period in 2015 due to the lower sales-type lease revenue levels as well as reduced production costs and lower scrap and repair costs. As a result, gross margin increased to 68%, up from 47% in the prior year quarter. Selling, general and administrative expenses were $4.0 million for the third quarter of 2016 compared to $4.1 million for the third quarter of 2015. Net loss was $573,000, or $0.31 per share, which improved from $1.3 million, or $0.73 per share, for the third quarter of 2015. EBITDA was $288,000, which improved from an EBITDA loss of $526,000 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 third 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.
Metric Review for the Quarter Ended September 30, 2016
The site count was 2,848 venues and, as expected, decreased compared to 2,859 as of June 30, 2016. Management anticipates the net count will continue to fluctuate. As of September 30, 2016, BEOND platform installations increased to 1,968 locations, or 69% of the installed base, compared to 1,922, or 67% of the installed base, as of June 30, 2016.
Liquidity
Cash and cash equivalents were $3.0 million at September 30, 2016, compared to $3.2 million as of December 31, 2015. On November 4th, the company raised $2.7 million in net proceeds in a registered direct offering to including new and existing shareholders as well as management. The company sold 412,071 shares of its common stock to the investors at a per share purchase price of $6.64, which was the closing price of the common stock on October 31, 2016.
Conference Call
Management will review the results on a conference call with a live question and answer session today, November 8, 2016, at 4:30 p.m. ET. To access the call, please use passcode 9183970 and dial:
- (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 https://www.buzztime.com. The replay of the call will be available until November 15, 2016.
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 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 and changes in the law, 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:
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 115 million games were played in 2015 alone. For more information, please visit https://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