bought BGST 7 1/8, 7. mms took it down on no volumes in order to accmulate shares in anticipation of coverage next week.
They just release earnings. Yearly rev increases 2000%+ and sequential rev increases 106%+. Based on these numbers, I expect Prudential to come out with a Strong Buy next week.
(BSNS WIRE) BigStar Reports Second Quarter 1999 Financial Results; Reven
BigStar Reports Second Quarter 1999 Financial Results; Revenues Increase 106.5%
over First Quarter 1999
Business Editors
NEW YORK--(BUSINESS WIRE)--Aug. 26, 1999--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.
-0-
*T
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
==================================================
*T
--30--bh/ny* mjr
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