CARLSBAD, Calif., May 7, 2015 — NTN Buzztime, Inc. (NYSE MKT: NTN), reported financial results for the first-quarter ended March 31, 2015.
“Our technology transformation continues to progress well,” said Ram Krishnan, NTN Buzztime CEO. “In the first quarter, we launched Jackpot Trivia (JPT) on our new game platform. JPT is tracking solidly as is the early testing for our new sports line-up, which is also utilizing our new game platform. In addition, our initiative for tableside ordering and closeout is advancing. We are currently launching self-service dining with long-time partner Arooga’s.
“At March 31, 2015, we increased the BEOND platform to 43% of our installed base from 37% at December 31, 2014. The previously discussed delay in tablet cases is impacting installations in the first half of 2015. We expect the installation rate to accelerate toward the latter half of the year. Our key initiatives include converting our installed base from Classic Playmaker to the BEOND platform; launching new games that entertain and engage; expanding our footprint into new brands; and increasing our revenue through premium services. In May, to increase focus on these objectives, we realigned our business via operational and staffing changes. We believe these actions will help ensure we can deliver value to our customers in the shortest time possible while reducing our spend.
“Furthermore, we increased liquidity by securing a credit facility with an institutional lending partner. We intend to use our expanded financial flexibility and strengthened balance sheet to fund future growth,” concluded Mr. Krishnan.
Results for the First-Quarter Ended March 31, 2015
Revenues were $5.7 million, compared to $6.4 million for the same period in 2014, due to expected decreases in site count associated with the tablet transition and to fewer installations associated with the delay in case production. Direct costs were $2.6 million including a scrap expense of $162,000 compared to $2.5 million for the same period in 2014. Selling, general and administrative expenses were $5.2 million, compared to $4.4 million for the same period in 2014, reflecting the investment in key personnel and marketing initiatives, which were offset by a decrease in professional fees and consulting. Net loss was $2.3 million, or $0.02 per share, compared to $0.6 million, or $0.01 per share, in the same period a year ago.
Metric Review: Quarter Ended March 31, 2015 Compared to December 31, 2014
The company ended the first quarter of 2015 with 2,908 subscribing venues, compared to 2,956 as of December 31, 2014. At March 31, 2015, BEOND installations increased to 1,236 locations, or 43% of the installed base compared to 37% at December 31, 2014. At March 31, 2015, the BEOND platform conversion for Buffalo Wild Wings, the largest customer, increased to 788 sites from 710 at the end of the fourth quarter.
At March 31, 2015, cash and cash equivalents were $7.2 million, compared to $7.2 million at December 31, 2014. In April, the company closed a three-year revolving credit agreement with East West Bank for up to $10.0 million dollars, in addition to maintaining the current equipment lender relationship.
Management will review the results on a conference call today, May 7, 2015, at 4:30 p.m. ET. To access the call, please use passcode 37391270 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 https://www.buzztime.com. The replay of the call will be available until May 14, 2015.
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, launches and usage, new revenue and the effect of cost control measures, acceptance in the marketplace, customer development, 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.
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 7 million player registrations on the Buzztime platform and over 80 million games played in 2014, 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.