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Buzztime - Business Bar Trivia by Buzztime

CARLSBAD, Calif., August 6, 2015 — NTN Buzztime, Inc. (NYSE MKT: NTN), reported financial results for the second quarter ended June 30, 2015.

“Second quarter revenue grew 8% sequentially, reflecting positive trends in site count, reduced attrition and continued conversions to our BEOND platform,” said Ram Krishnan, NTN Buzztime CEO. “Site count achieved two milestones: increasing sequentially for the first time in more than 13 quarters and reaching 50% of our installed base with the BEOND platform. We are working diligently to further growth by investing in functionality critical to chain restaurants and by increasing our entertainment options.

“During the quarter, we launched self-service dining while simultaneously expanding our relationship with Arooga’s. Tableside payment is unfolding smoothly, which we plan to enhance with EMV chip reading capability when we release our third generation BEOND tablet platform. In entertainment, Jackpot Trivia is thriving. We are introducing additional features, and our data indicates we are achieving our objective of increasing the number of younger players.

“Furthermore, upon analyzing feedback, we identified the opportunity to create another competitive advantage by providing restaurants the option to offer free-to-consumer arcade. While this change will delay our premium arcade general availability, we expect to command higher prices, which we anticipate will translate into an increase in subscription revenue. Also, to reduce production costs and scrap exposure, we are outsourcing the production of our third generation BEOND tablet platform and accelerating delivery to the end of 2015.

“In addition to expanding our revenue streams, investing to increase the scalability of our business and improving operating efficiencies, we strengthened our balance sheet by securing a credit agreement. We remain comfortable with our liquidity position. In aggregate, we believe these actions will drive top line growth and lower our cash flow breakeven threshold,” concluded Mr. Krishnan.

Financial Results for the Second-Quarter Ended June 30, 2015

Total revenues were $6.2 million, compared to $5.7 million in the first quarter of 2015 and $6.9 million for the same period in 2014. Sequential improvements reflect the increase in adoption of the BEOND platform. The expected year-over-year decrease was due to fewer installations of customers under sales-type lease arrangements and lower total site count. Direct costs were $3.4 million including a $444,000 write-off for obsolete components and a $174,000 increase in equipment and production costs, compared to $2.8 million for the same period in 2014. Selling, general and administrative expenses were $4.9 million, compared to $4.6 million for the same period in 2014 reflecting the investment in key personnel and severance, which was offset by a decrease in professional fees and consulting. Net loss was $2.6 million, or $0.03 per share, compared to $1.3 million, or $0.02 per share, in the same period a year ago.

Metric Review for Quarter Ended June 30, 2015 Compared to March 31, 2015

The company ended the second quarter of 2015 with 2,942 subscribing venues, compared to 2,908 as of March 31, 2015. As of June 30, 2015, BEOND installations increased to 1,459 locations, or 50% of the installed base, compared to 43% as of March 31, 2015. As of June 30, 2015, the BEOND platform conversion for Buffalo Wild Wings, the company’s largest customer, increased to 911 sites from 788 at the end of the first quarter. The Buzztime network reached eight million registered players.

Liquidity at June 30, 2015

In April, the company closed a three-year revolving credit agreement with East West Bank for up to $10.0 million, in addition to maintaining its equipment lender relationship. As of June 30, 2015, cash and cash equivalents were $5.4 million, compared to $7.2 million as of December 31, 2015. Working capital remained stable at $4.9 million, compared to $5.0 million as of March 31, 2015.

Conference Call

Management will review the results on a conference call today, August 6, 2015, at 4:30 p.m. ET. To access the call, please use passcode 92279026 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 August 13, 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, 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.

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 eight  million player registrations on the Buzztime platform and over 80 million games played last 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

 

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