Hmmm... I'll guess a $0.06 profit due to the sale of IWN, which I forgot about.
Well, I cheated....
11/02 11:07 NTN Reports Third Quarter Financial Results
<NTN.A>
NTN Reports Third Quarter Financial Results
CARLSBAD, Calif.--(BUSINESS WIRE)--Nov. 2, 1999--NTN
Communications Inc. (AMEX:NTN), an Internet games provider and
interactive television network operator, today reported total revenue for
the three months ended Sept. 30, 1999 of $5.9 million, compared to
revenue of $5.8 million during the same period of 1998.
The company's net income for the quarter was $507,000 or $0.02 per
common share, compared to a net loss of $322,000 or $0.01 per
common share for the same quarter last year. Net income for the third
quarter of this year included a one-time gain of $2.3 million from the
sale of the assets of a subsidiary. Without this one-time gain, net loss
for the quarter would have been $1.7 million or $0.06 per common
share.
NTN's third quarter 1999 earnings before interest, taxes, depreciation
and amortization ("EBITDA") were $124,000 (excluding the gain on the
sale of the subsidiary assets), versus $1.0 million for the third quarter
of 1998.
During the quarter, the ongoing conversion of the Hospitality Network to
Digital Interactive TV (DITV) brought about additional revenues, but also
higher direct operating costs. The company installed 596 Hospitality
sites (196 new sales and 400 conversions) versus 221 sites during the
same quarter last year. The Online business reflected the phase-out of
online agreements that reduced revenues, combined with additional
staffing expenses incurred to prepare for the Internet launch of the
company's products. Year 2000 consultants, increased depreciation
and increased interest costs also contributed to quarterly expenses.
"Operating results were in line with our expectations," said Stanley B.
Kinsey, chief executive officer and chairman of NTN Communications
Inc. "At this date, we have converted 43% of our Hospitality Network to
DITV, have been successfully staffing for our Internet launch and have
spent far less on Y2K readiness than anticipated. I remain pleased with
the company's position as it ventures into the Internet and Interactive
TV delivery platforms for its unique and proven content."
NTN Communications has scheduled a telephone conference call to
discuss the third quarter 1999 results on Tuesday, November 2, at
1:15 p.m. Pacific/4:15 p.m. Eastern. Interested individuals may
participate in the question and answer period following the discussion
by calling 800/281-0845 up to 15 minutes prior to the scheduled time
the day of the conference, and mention the NTN conference call led by
NTN Communications Chairman and CEO Kinsey.
Third quarter 1999 news from NTN includes:
Arlen and Carrino Appointed to NTN Board
During the third quarter of 1999, Gary Arlen, a leading interactive media
analyst and founder of the industry group now known as The Internet
Alliance, and Vince Carrino, founder and president of Brookhaven
Capital Management, were appointed to the NTN Board of Directors.
The NTN board also includes Bob Bennett, chairman of a broadcast
television firm involved with syndicated sports and specialty
programming; Barry Bergsman, a pioneer in the use of the telephone
with interactive technology; Donald C. Klosterman, who brings to NTN
a background that includes NFL football general manager and coach;
Esther Rodriguez, former vice president of worldwide sales for
telecommunications giant General Instrument; and Chairman Kinsey,
CEO of NTN Communications Inc.
NTN Appoints R.L. Anderson As New President Of NTN Networks
NTN Communications, operator of the nation's largest interactive
television network for hospitality venues, announced that Robert L.
Anderson had been appointed to the newly created post of
president/NTN Networks, the firm's hospitality division. The NTN
Networks division encompasses two interactive television networks
broadcasting sports games and trivia competitions to hospitality
venues including restaurants, sports bars and taverns. NTN
Communications also operates NTN Studios, the creator of original
multi-player games that are distributed to the NTN Networks, NTN
Internet areas and strategic partners.
NTN Secures $4 Million Line Of Credit
NTN reported in September that it had secured a $4 million revolving
line of credit from Coast Business Credit, a wholly owned subsidiary of
Southern Pacific Bank. The line of credit will be used primarily for
capital expenses related to the launch of NTN's new Digital Interactive
TV network. Bennigan's and BW-3 Endorse NTN Digital Interactive TV
During the third quarter of 1999, NTN announced that Bennigan's(R)
Irish American Grill & Tavern agreed to feature NTN's new Digital
Interactive TV network in a minimum of 100 of the chain's 248
restaurants within 12 months. This rollout includes both corporate and
franchise Bennigan's locations that stretch across 30 states. In
addition, NTN's Digital Interactive TV network will be installed in all 21 of
the bw-3/Buffalo Wild Wings corporate locations. NTN has received
contracts to install Digital Interactive TV in 63 of the total 95
bw-3/Buffalo Wild Wings locations nationwide.
NTN Sells Assets Of Wholly-Owned Subsidiary IWN Inc.
NTN announced in August that it had sold the assets of its
wholly-owned subsidiary, IWN Inc., to eBet Limited (ASX:EBT) in
exchange for approximately $1.3 million in cash and 4,000,000 shares
of publicly-traded eBet stock. The sale of the IWN assets, which
included a 25% interest in eBet Online Limited -- formerly IWN
Australasia Limited -- and certain Internet gaming technology,
generated a one-time pre-tax gain to NTN of approximately $2.3 million.
NTN And Midway Games Sign Three-Year License Deal
NTN Communications Inc. and Midway Games Inc. (NYSE:MWY), a
leading designer and publisher of interactive entertainment software for
all major video game platforms, announced an agreement in which
NTN branded trivia games will be featured on selected Midway
coin-operated video game machines.
NTN's QB1 Enhanced TV Application Integrated Into NFL.com For
1999 Season
Avid football fans can now predict the play live on the Internet, all
season long, with the premiere of QB1(R) on NFL.com in August 1999.
QB1 is the popular football strategy game produced by NTN
Communications. QB1.com, NTN's enhanced TV play-along site, is
highlighted and linked from the front screen of NFL.com on Sundays
and Monday nights. The official Web site of the National Football
League is expected to attract more than 500,000 unique visitors on
game days this fall. The alliance between NTN and the NFL calls for
both parties to share advertising and e-commerce revenue around the
QB1 application.
NTN Signs Warsteiner Beer As Network Advertiser And Sponsor Of
Oktoberfest
During the third quarter of 1999, NTN announced that the Warsteiner
Importers Agency Inc. (WIA), importers of Warsteiner Beer, had
purchased a five-month advertising package on NTN's hospitality
network. Warsteiner also purchased the primary sponsorship of NTN's
annual Oktoberfest program, reaching more than 17.7 million NTN
players each month at almost 3,000 U.S. restaurants and taverns that
subscribe to the NTN sports and trivia games network. |
