Bridges.com nine-month results
Bridges.com Inc BIT
Shares issued 9,466,250 1999-09-29 close $2.9
Wednesday Sep 29 1999
Mr. Doug Manning reports
For the nine months ended Aug. 31, 1999, Bridges reported $1,376,654 in income before amortization and taxes, or 14 cents per share. This compares with $866,331 in income before amortization and taxes, or 10 cents per share, for the same period in 1998. For the first time, Bridges.com has included a tax consideration in an interim report. This has resulted in net income for the nine months of $724,768, or seven cents per share. This compares with $602,270, or seven cents per share in 1998. Revenues for the first nine months have reached an all-time high of $3,804,442, compared with $2,111,878 for the same period in 1998.
During the quarter, the company invested a portion of available funds to more aggressively pursue a greater market share during fiscal 2000. Twenty-four new staff members were added to the sales, technical, content, administrative and customer support teams during the quarter. The company currently employs 69 staff in Kelowna, B.C., and over 40 contracted writers and and trainers across North America.
Strong sales growth pushed the number of schools using Bridges.com's on-line career development system over the 4,200 mark. Third-quarter sales increased by 46 per cent, with 616 new site sales recorded in June, July and August (420 new site sales were recorded in the third quarter of 1998). Career Explorer is now used in 4,266 schools, representing 11.9 per cent of the North American middle and second school market.
Use of Bridges.com's resources continued to climb, with 3,689,622 page views recorded on Career Explorer during the third quarter. That compares with 1,108,446 page views over the same period last year. Schools also used the service more frequently -- the average number of page views per subscriber increased from 570 in the 1998 third quarter to 900 in the 1999 third quarter.
The company continues to widen the distribution of its on-line content, signing a state-wide distribution agreement with the South Carolina occupational information system, and finalizing plans to launch regional initiatives in West Virginia and Pennsylvania. Bridges.com was also contracted in the third quarter to provide a daily on-line educational information service to Canadians in conjunction with CanLearn, Human Resources Development Canada and CanWIN.
Outlook
Career Explorer sales, marketing and resubscriptions
Bridges' primary goal for the next 15 months is to distribute Career Explorer to more than 20 per cent of the North American middle and secondary school market. In order to be on track to achieve this goal, more than 4,500 schools (12.5 per cent) must be subscribing to the CX service by the end of the 1999 fourth quarter. New sales and resubscription sales initiatives to meet this goal will continue in the fourth quarter. In addition, a new sales project to examine the impact of state-endorsed distribution of CX will begin in Pennsylvania in September.
Portfolio Plus implementation and development
Bridges' innovative Portfolio Plus resource, designed to assist young people with career/life transitions, will be released to subscribing sites during the quarter. Development of new administrative tools and personalized news services for the portfolio will continue in the fourth quarter. The company will also continue to seek and develop partnerships to assist with Portfolio Plus distribution in 2000.
Technical platform development
Bridges will examine the purchase or development of more robust publishing software applications to support several new initiatives planned for 2000. In addition, integration of new accounting and contact management software will continue. Fourth quarter technical developments are designed to prepare for increased use of internal and external Bridges systems in 2000.
2000 strategic planning
In the fourth quarter, Bridges' board of directors, management team and staff, will finalize strategic plans for 2000. These will support the final year of a three-year plan designed to distribute Career Explorer to at least 20 per cent of the market by Nov. 30, 2000. The 2000 plan will also outline strategies that set the stage for new business development beyond next year.
STATEMENT OF OPERATIONS
Nine months ended Aug. 31
1999 1998
Revenue
On-line services $3,684,576 $1,855,323
Other services 119,866 256,555
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3,804,442 2,111,878
Interest income 19,776 6,811
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3,824,218 2,118,689
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Expenses
Content
development
and delivery 757,314 426,730
General,
selling and
administrative 1,690,250 825,628
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2,447,564 1,252,358
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Income before
amortization and
income taxes 1,376,654 866,331
Amortization of
capital assets 71,201 32,445
Amortization
of deferred
development costs 242,185 231,616
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313,386 264,061
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Income before
income taxes 1,063,268 602,270
Provision for
income taxes 338,500 -
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Net income
for the period $ 724,768 $ 602,270
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