The Bridges Initiatives Inc -
9mo results
The Bridges Initiatives Inc
BIT
Shares issued 8,496,250
1998-10-05 close $0.53
Wednesday Oct 7 1998
Mr. Doug Manning reviews the company
For the first nine months ending Aug. 31, 1998, Bridges had a net income of
$602,270 resulting in earnings of seven cents per share. Revenues of $2,118,689
were reported, with expenses of $1,252,358 and amortization of $264,061. This
compares to a reported net loss of $42,124 on revenues of $1,059,050 for the
first nine months of 1997.
Although the increases in revenue and net income were anticipated, Bridges
generated revenues from two surprising sources in the third quarter. Almost
$578,000 was earned from the sale of 420 new site subscriptions - more than
double original projections in a traditionally slow quarter. In addition, the
increased value of the U.S. dollar provided a welcome source of additional
revenues.
The third quarter was Bridges' most impressive sales quarter ever - with 420 new
site sales. Bridges now has 2,178 subscribing sites, representing approximately 6
per cent of the North American middle and secondary school market.
Bridges also recorded its first million dollar quarter, declaring revenues of
$1,082,649. Impressive new site sales, high rates of resubscription, and strong
returns on U.S. site purchases drove the strong performance.
The company also forged a relationship with Industry Canada in the third quarter -
signing two agreements that will facilitate development of Bridges' on-line career
portfolio. Bridges has agreed to produce a daily labour market news for the
National Graduate Register. In addition, Bridges and Industry Canada will
co-promote the use of Bridges' on-line portfolio, a resource that may provide a
diversity of revenue opportunities in the future.
Finally, North Carolina became the first U.S. state to purchase a regional version
of CX-98. With 150 site licences contracted for the state, North Carolina will
provide a sales beachhead in the American market.
Bridges will focus on four corporate goals during the fourth quarter of 1998:
Continued Ambitious New Site Sales
More than 250 new site sales are targeted for the quarter, bringing the number of
Bridges CX subscribers to 7 per cent of the North American middle and
secondary school market. This is projected to push final quarter new site earnings
to over $300,000.
Continued High Rates of Resubscription
More than 250 sites will be re-billed in the quarter, generating over $300,000 in
resubscription revenues. The service and administrative teams are dedicated to
maintaining the current 90 plus per cent rate of resubscription.
Development of New Products
Bridges will begin development of two new resources in the fourth quarter. The
on-line portfolio will be developed and marketed through CX-98 and Industry
Canada promotions. An adult career information resource will begin development
in the fourth quarter, planned for distribution in early 1999. These two new
resources will further diversify revenue sources in 1999.
1999 Strategic Planning
Bridges' board, management and staff will finalize strategic plans for 1999 - the
second year of Bridges' three-year growth plan. By the end of 2000, Bridges
intends to provide on-line career information services to at least 20 per cent of
North American middle and secondary schools. These plans will be posted on the
corporate web site (bridges.com) in early December.
STATEMENT OF EARNINGS
Nine months ended August 31
1998 1997
Revenue
On-line services $1,855,323 $ 764,491
Other services 256,555 294,559
---------- ----------
2,111,878 1,059,050
Interest income 6,811 -
---------- ----------
2,118,689 1,059,050
Expenses
Content develop-
ment & delivery 426,730 257,893
General, selling
& admin 825,628 580,915
---------- ----------
1,252,358 838,808
---------- ----------
Income before
amortization 866,331 220,242
Amortization of
deferred develop-
ment costs 231,616 218,138
Amortization of
capital assets 32,445 44,228
---------- ----------
264,061 262,366
---------- ----------
Net income (loss) $ 602,270 $ (42,124) |
