(COMTEX) B: BigStar Reports Second Quarter 1999 Financial Results; Re
B: BigStar Reports Second Quarter 1999 Financial Results; Revenues Increase
106.5% over First Quarter 1999
NEW YORK, Aug 26, 1999 (BUSINESS WIRE) -- BigStar Entertainment Inc.
(Nasdaq: BGST), which operates BigStar.com, the leading online filmed
entertainment superstore dedicated exclusively to filmed entertainment
products, today announced financial results for the second quarter of
1999. In August 1999, BigStar completed its initial public offering of
2.5 million shares of common stock.
For the quarter ended June 30, 1999, the Company reported net revenues
of $3,001,546 compared to $14,925 for the quarter ended June 30, 1998.
For the quarter ended June 30, 1999, net revenues included $283,612 in
barter advertising. The Company did not have advertising revenues in
previous quarters. Sequentially, revenues increased 106.5% from the $1,
453,780 for the quarter ended March 31, 1999. For the quarter ended
June 30, 1999 gross profit increased to $444,915, resulting in a gross
margin of 14.8%. The gross profit increased $244,974, with the related
gross margin increasing 1%, from the $199,941 gross profit and 13.8%
gross margin reported for the quarter ended March 31, 1999. BigStar's
net loss was $4,821,842 for the second quarter of 1999 compared to a
net loss of $247,135 for the second quarter of 1998. Basic and diluted
net loss per share was $0.82 for the second quarter of 1999 compared to
$0.10 for the second quarter of 1998.
For the six months ended June 30, 1999, revenues were $4,455,326. For
the six months ended June 30, 1999 gross profit was $644,856, resulting
in a gross margin of 14.5%. For the six months ended June 30, 1999,
BigStar's net loss was $7,787,609 compared to a net loss of $275,618
for the six months ended June 30, 1998. Basic and diluted net loss per
share was $1.60 per share for the six months ended June 30, 1999
compared to $0.12 per share for the six months ended June 30, 1998.
BigStar Entertainment, Inc. (http://www.bigstar.com) is the leading
online filmed entertainment superstore based on customer traffic to its
websites, that is exclusively dedicated to filmed entertainment
products. BigStar sells videos, digital videodiscs, or DVDs, and
laserdiscs.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: BigStar Entertainment, Inc. has included in this press
release certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 concerning BigStar's
business, operations and financial condition. The words or phrases "can
be", "expects", "may affect", "may depend", "believes", "estimate",
"project" and similar words and phrases are intended to identify such
forward-looking statements. Such forward-looking statements are subject
to various known and unknown risks and uncertainties and BigStar
cautions you that any forward-looking information provided by or on
behalf of BigStar is not a guarantee of future performance. Actual
results could differ materially from those anticipated in such
forward-looking statements due to a number of factors, some of which
are beyond BigStar's control, in addition to those discussed in
BigStar's other press releases, public filings and statements by
BigStar's management, including (i) the volatile and competitive nature
of the Internet industry, (ii) changes in domestic and foreign economic
and market conditions, (iii) the effect of federal, state and foreign
regulation on BigStar's business, (iv) failure of BigStar, its vendors
or other third parties to achieve Year 2000 compliance and (v) the
effect of any future acquisitions. All such forward-looking statements
are current only as of the date on which such statements were made.
BigStar does not undertake any obligation to publicly update any
forward-looking statement to reflect events or circumstances after the
date on which any such statement is made or to reflect the occurrence
of unanticipated events.
Bigstar Entertainment
Balance Sheets as of June 30, 1999
and December 31, 1998
June 30, December 31,
1999 1998
-----------------------------
(unaudited)
Assets:
Cash and cash equivalents $ 4,594,382 $ 363,124
Cash held in escrow - 453,000
Accounts receivable, net of allowance 296,090 61,121
Prepaids and other current assets 243,708 8,711
-----------------------------
Total current assets 5,134,180 885,956
Property and equipment, net 910,835 452,134
Deferred registration costs 858,618 -
Other assets 27,111 -
-----------------------------
Total assets 6,930,744 1,338,090
=============================
Liabilities:
Accounts payable 1,344,724 380,540
Accrued expenses 2,170,824 1,197,776
Accrued payroll costs 90,000 243,240
Current portion of capital lease
obligation 829 2,226
-----------------------------
Total current liabilities 3,606,377 1,823,782
-----------------------------
Long term portion of
capital lease obligation 7,209 8,805
Stockholders' Equity (Deficit):
Preferred stock - -
Common stock 6,041 3,022
Additional paid-in capital 14,892,105 2,361,716
Subscribed stock - 453,000
Deferred compensation (545,558) (64,414)
Accumulated Deficit (11,035,430) (3,247,821)
-----------------------------
Total stockholders'
equity (deficit) 3,317,158 (494,497)
-----------------------------
Total liabilities and
stockholders' equity
(deficit) $6,930,744 $1,338,090
=============================
BIGSTAR ENTERTAINMENT, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Six months Three months Six months Three months
ended ended ended ended
June 30, June 30, June 30, June 30,
1999 1999 1998 1998
--------------------------------------------------
NET SALES $ 4,455,326 $ 3,001,546 $ 14,925 $ 14,925
COST OF SALES 3,810,469 2,556,630 8,963 8,963
--------------------------------------------------
Gross profit 644,856 444,915 5,962 5,962
OPERATING EXPENSES
Sales and marketing 5,091,867 3,366,235 40,086 40,086
General and
administrative 1,542,757 867,555 114,294 101,013
Web site and software
development 1,868,320 1,085,922 127,200 111,998
--------------------------------------------------
Total operating
expenses 8,502,944 5,319,712 281,580 253,097
--------------------------------------------------
Loss from
operations (7,858,087) (4,874,796) (275,618) (247,135)
INTEREST INCOME, net 70,478 52,954 - -
================================================== Net
Loss $ (7,787,609) $ (4,821,842) $(275,618) $(247,135)
==================================================
PER SHARE INFORMATION:
Net loss per share -
Basic and diluted $ (1.60) $ (0.82) $ (0.12) $ (0.10)
==================================================
Weighted average common
shares outstanding -
Basic and diluted 4,862,962 5,851,330 2,290,224 2,360,463
==================================================
Copyright (C) 1999 Business Wire. All rights reserved.
-0-
CONTACT: Bigstar Entertainment
Robert S. Yingling CFO,
(212) 981-6311
or
Barry Kluger (973) 714-2369
Thad Marsh (212) 741-5106 X13
WEB PAGE: businesswire.com
GEOGRAPHY: NEW YORK
INDUSTRY CODE: ENTERTAINMENT
BANKING
COMPUTERS/ELECTRONICS
COMED
INTERACTIVE/MULTIMEDIA/INTERNET
EARNINGS
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