Networks North Inc. Increases Revenue 52% and Reports Record Quarterly Net Income
NASDAQ:NETN
(There will be a teleconference call today at 4:15 p.m. Eastern time to discuss the results for quarter ended November 30, 1999. To join the call, dial 1-800-374-6564 and refer to Conference No. C361430 or to Networks North).
TORONTO, Jan. 18 /CNW-PRN/ - Networks North Inc. (NASDAQ: NETN) announced its results for the quarter ended November 30, 1999. Including revenue of $1,836,000 from recently acquired GalaVu Entertainment Network Inc., total revenue for the quarter was $5,535,596, a 52% increase over the $3,636,117 reported a year earlier. Excluding the revenue from GalaVu, the total revenue reported for the quarter ended November 30, 1999 was 2% ahead of the amount reported in the previous year. Income before taxes and minority interest reported for the quarter ended November 30, 1999 was $556,812, 108% higher than the $268,253 reported for the previous year. Net income for the quarter was $262,607, the highest net income ever reported by the company for a quarter, which was an increase of 38% over the previous year.
For the Qtr. Ended For the Qtr. Ended
Nov. 30, 1999 Nov. 30, 1998
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Total Revenue $5,535,596 $3,636,117
Income before income taxes
and minority interest 556,812 268,253
Net Income 262,607 190,951
Earnings per Common Share 0.09 0.07
As at November 30, 1999 As at August 31, 1999
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Total Current Assets $7,169,198 $5,909,181
Total Assets 18,895,376 14,802,021
Total Current Liabilities 3,030,959 1,872,121
Total Liabilities 7,544,642 4,009,254
Shareholders' Equity 11,350,734 10,792,767
"The acquisition of GalaVu has, as expected, added immediately to our profitability and has been a strategic fit in the Entertainment Division of Networks North," commented Peter Rona, President and CEO. "Our strategy is to grow profitably both from within and through acquisition. The performance of GalaVu and the entire company in the first quarter indicates that we are definitely achieving our strategic objectives."
The other core business units, NTN hospitality division and Magic Lantern Communications experienced strong quarters with increased revenue and profits compared to the previous year. Including a licensing sale for 240 hours of programming for over $290,000 to The Canadian Learning Television Network, Magic Lantern's revenue for the quarter of $1,402,000 was an increase of 26% over the previous year.
As reported previously, the company, through its wholly owned subsidiary Interlynx Multimedia Inc., has been investing in the marketing and development of Profis, a sophisticated software program that facilitates web-based training. During the quarter ended November 30, 1999 Interlynx incurred a loss of $250,000 compared to a loss of $32,000 in the similar period the previous year. The loss is included in the consolidated results reported for the quarter ended November 30, 1999.
Networks North Inc.'s operating units include wholly owned NTN Interactive Network Inc., Magic Lantern Communications Ltd., Interlynx Multimedia Inc. and GalaVu Entertainment Network Inc. NTNIN is the exclusive licensee of NTN Communications, Inc. (AMEX: NTN) a leading producer and programmer of interactive television, on-line and Internet entertainment. The NTN Entertainment Network distributes programming to more than 15 million participants per month at restaurants, sports bars, and other group viewing locations throughout North America, including 525 in Canada with over 3.1 million participants. Magic Lantern is Canada's premier distributor of educational media resources, with exclusive rights to over 14,000 titles in English and French. Magic subsidiaries provide MPEG encoding, DVD authoring, video duplication, and fulfillment services for broadcasters. Interlynx Multimedia Inc. is a developer of web-based interactive software in the areas of training, knowledge management and e-business. GalaVu Entertainment Network Inc. is a technology-based entertainment provider of interactive in-room entertainment systems for over 200 hotels in Canada.
Financial Statements in this press release other than historical facts are "forward-looking" statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements are subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.
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SOURCE: Networks North Inc.
CONTACT: Peter Rona, President, Networks North Inc., Tel: 416-675-6666, Email: prona@ntnc.com; Ira Miller, I.W. Miller Group Inc, Tel: 949-833-9001, Email: fortune@mindspring.com |
