Exhibit 99.1
 
FOR IMMEDIATE RELEASE
March 30, 2010 
 
COMPANY CONTACT:
     Kendra Berger
     Chief Financial Officer
     NTN Buzztime, Inc.
     (760) 438-7400

CCG CONTACT:
     Mark Collinson
     Partner
     CCG Investor Relations
     (310) 954-1343

NTN Buzztime, Inc. Announces Fourth Quarter and Full Year 2009 Results
 
CARLSBAD, Calif., March 30/PRNewswire-FirstCall/ — NTN Buzztime, Inc. (NYSE AMEX: NTN) today announced results for the fourth quarter and fiscal year ended December 31, 2009.

“Our fourth quarter and full year 2009 financial results provide tangible evidence that the strategic initiatives we outlined at the outset of the year are gaining traction. Our vigilance on reducing costs coupled with reorganizing our sales and marketing efforts have yielded substantial improvements in our underlying operating performance. Perhaps most significantly, we grew our subscriber network 7.2%, or by 270 sites for the full year, while improving cash flow from operations by over $5 million.  Although we are pleased with these developments, we are also cognizant of the significant challenges that lie ahead and the continued need to address customer retention, as evidenced by a rise in that metric in the fourth quarter. Accordingly, we have launched and will launch a number of products, services and promotional programs that we believe will increase customer retention.  That, coupled with cost control and diligent execution of our business plan, gives us confidence that we can bring the business to sustainable levels of profitability,” said NTN Buzztime’s CEO Terry Bateman.

Results for the Fourth Quarter Ended December 31, 2009

Revenues for the fourth quarter of 2009 were $6.6 million, compared to revenues of $6.5 million for the same period of 2008.  The 1.4% increase in sales was due to an increase in advertising revenue of $122,000 in the fourth quarter of 2009 compared to the 2008 period.

The Company ended the fourth quarter of 2009 with 4,016 subscribing venues, compared to 3,746 at December 31, 2008.  During the fourth quarter of 2009, installations were up approximately 19% while terminations were up 32% compared with the fourth quarter of 2008.  Customer churn was 8.3% for the quarter, up from 6.8% in the prior year period.
 
 
Total site counts
Q4
Q4
Increase
 
 
   and churn percentages
2009
2008
(Decrease)
 
 
  Site Count – Beginning of Quarter
4,051
3,746
              305
 
 
  Q4 Installations
301
253
                48
 
 
  Q4 Terminations
(336)
(253)
    83
 
 
  Site Count - End of Quarter
4,016
3,746
              270
 
 
  Churn Percentage
8.3%
6.8%
           1.5
 
 
 
 
1

 
 
Gross margin as a percentage of revenue remained relatively unchanged at 74% in the fourth quarter of 2009, compared to the fourth quarter of 2008.

Selling, general and administrative expenses for the quarter declined by $0.5 million, or 9%, to $4.9 million from $5.3 million a year ago. The improvement was attributable to several factors:  reduced headcount and the associated payroll expenses which declined by $0.1 million, an overall reduction in marketing spend which declined by $0.1 million, a reduction in severance expenses which declined by $0.2 million, and lower levels of consulting and external professional service expenses which declined by $0.1 million.

Net loss for the fourth quarter of 2009 was $0.2 million, or $0.00 per share, compared to a net loss of $0.7 million or $0.01 per share in the same period a year ago.

For the quarters ended December 31, 2009 and December 31, 2008, results from continuing operations reflected solely the results from the Entertainment division, following the discontinuation of the Hospitality division.
 
Results for the Fiscal Year Ended December 31, 2009

Revenues from continuing operations were $25.8 million for the fiscal year ended December 31, 2009, compared to revenue of $27.5 million for the prior year. Net loss from continuing operations was $1.5 million, compared to a net loss from continuing operations of $6.1 million a year ago.

For the full year of 2009, installations were up approximately 27% while terminations were down 13% compared with the full year of 2008.  Customer churn was 25% for 2009, down from 29.1% in the prior year.

 
Total site counts
FY 2009
FY 2008
Increase
 
 
   and churn percentages
   
(Decrease)
 
 
  Site Count – Beginning of Year
3,746
3,877
              (131)
 
 
  Installations
1,239
977
                262
 
 
  Terminations
(969)
(1,108)
       (139)
 
 
  Site Count - End of Year
4,016
3,746
              270
 
 
  Churn Percentage
25.0%
29.1%
           (4.1)
 

Gross margin as a percentage of revenue improved to 75% in 2009 from 72% in fiscal year 2008.  The increase in gross margin was primarily due to a reduction in depreciation expense of $0.3 million, as equipment became fully depreciated, decreased communication and content costs of $0.6 million, and a decrease of $0.3 million in direct salaries as a result of reduced headcount.

Selling, general and administrative expenses declined $5.5 million, or 21%, to $20.0 million in 2009 from $25.5 million in the prior year. The decrease was due to several factors, including payroll and payroll-related expenses which decreased $1.5 million due to a 20% reduction in headcount.  Severance expenses decreased $0.9 million compared to the prior year that included severance expenses associated with the departure of senior personnel and the closing of the Company’s UK office.  Marketing expenses decreased $1.1 million due to a change in marketing strategy, including reductions in direct mail campaigns, participation in promotions and trade shows.  Consulting expenses decreased $0.9 million.  General spending related to payroll processing fees, professional tax and audit services and supplies decreased $0.3 million. Bad debt expense decreased $0.3 million, predominately due to an improvement in collection experience.

Discontinued Operations

Discontinued operations generated no net income for the fiscal year 2009, compared to a net loss from discontinued operations of $0.3 million in 2008.

 
2

 
 
Conference Call
 
Management will review these results in a conference call today, March 30, 2010, at 4:30 p.m. ET.
 
To access the conference call, please dial (866) 360-7027 if calling from the United States or Canada, or (706) 643-3291 if calling internationally, and use passcode 63661018. Please dial in several minutes prior to the start time for registration purposes.
 
A replay will be available until April 6, 2010, which can be accessed by dialing (800) 642-1687 if calling from the United States or Canada or (706) 645-9291 if calling internationally. Please use passcode 63661018 to access the replay.
 
The call will also be accompanied live by webcast over the Internet and accessible at the Company's Web site at http://www.buzztime.com.
 

 
About Buzztime
 
NTN Buzztime, Inc. (NYSE Amex: NTN) is one of the most popular interactive bar and restaurant entertainment networks. Trusted for over 25 years by restaurant, bar and pub owners, Buzztime develops trivia, card and sports games and broadcasts them on the Buzztime Network to 4,000 locations throughout North America.  More than 1,000,000 registered players use a blue Playmaker or their Apple iPhone® to compete in more than 4,500,000 games each month.  Players spread the word and invite friends and family to their favorite Buzztime location to enjoy an evening of fun and competition or unwind from a hectic day.   Buzztime ups the fun factor – turning visitors into regulars and attracting new players every day of the week.  For the most up-to-date information on NTN Buzztime, please visit www.buzztime.com.
 
Forward-looking Statements
This release contains forward-looking statements which reflect management's current views of future events and operations including but not limited to estimates of financial performance and cash flows, new business initiatives and engagement and results of marketing strategies. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those expressed or implied by such forward-looking statements. These risks and uncertainties include risks associated with recent management changes, the Company's ability to grow its out-of-home Buzztime iTV network and implement other business strategies such as the planned launch of mobile and wireless games, the risk of changing economic conditions, failure of product demand or market acceptance of both existing and new products and services and the impact of competitive products and pricing. Please see NTN Buzztime, Inc.'s recent filings with the Securities and Exchange Commission for information about these and other risks that may affect the Company. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and NTN Buzztime, Inc. does not undertake to publicly update or revise any of its forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized.

(financial tables follow)
 
 
3

 
 
 NTN BUZZTIME, INC. AND SUBSIDIARIES
Selected Balance Sheet Data
 
As of December 31, 2009 and 2008
(In thousands, except par value amount)

ASSETS
 
2009
   
2008
 
Current Assets:
           
Cash and cash equivalents
  $ 3,637     $ 3,362  
Accounts receivable, net of allowances of $321 and $298, respectively
    606       636  
Investment available-for-sale
    180       58  
Prepaid expenses and other current assets
    715       611  
Total current assets
    5,138       4,667  
Broadcast equipment and fixed assets, net
    3,809       3,428  
Software development costs, net of accumulated amortization of $1,197 and $1,002, respectively
    1,374       860  
Deferred costs
    999       1,383  
Goodwill
    1,202       1,032  
Intangible assets, net
    1,585       185  
Other assets
    190       107  
Total assets
  $ 14,297     $ 11,662  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
                 
Current Liabilities:
               
Accounts payable
  $ 422     $ 219  
Accrued compensation
    1,075       868  
Accrued expenses
    788       972  
Sales tax payable
    855       958  
Income taxes payable
    -       18  
Obligations under capital leases—current portion
    300       8  
Deferred revenue
    523       657  
Other current liabilities
    294       -  
Total current liabilities
    4,257       3,700  
Sales taxes payable, excluding current portion
    128       -  
Obligations under capital leases, excluding current portion
    173       32  
Deferred revenue, excluding current portion
    82       91  
Other liabilities
    239       93  
Total liabilities
    4,879       3,916  
Commitments and contingencies
               
                 
Shareholders’ equity:
               
Series A 10% cumulative convertible preferred stock, $.005 par value, $161 liquidation preference, 5,000 shares authorized; 161 shares issued and outstanding
    1       1  

Common stock, $.005 par value, 84,000 shares authorized; 60,359 and 55,727 shares issued and outstanding at December 31, 2009 an 2008, respectively
    302       277  
Treasury stock, at cost, 503 shares at December 31, 2008 and 2007, respectively
    (456 )     (456 )
Additional paid-in capital
    115,740       113,267  
Accumulated deficit
    (106,868 )     (105,351 )
Accumulated other comprehensive income
    699       8  
Total shareholders’ equity
    9,418       7,746  
Total liabilities and shareholders’ equity
  $ 14,297     $ 11,662  
 
 
4

 

NTN BUZZTIME, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share data)

   
Three Months Ended
December 31,
   
Year Ended
December 31,
 
   
2009
   
2008
   
2009
   
2008
 
Revenues
  $ 6,616     $ 6,525     $ 25,814     $ 27,496  
Operating expenses:
                               
Direct operating costs (includes depreciation and amortization)
    1,691       1,708       6,460       7,582  
Selling, general and administrative
    4,866       5,326       20,031       25,488  
Depreciation and amortization (excluding depreciation and amortization included in direct costs)
    163       132       919       532  
Total operating expenses
    6,720       7,166       27,410       33,602  
Operating loss
    (104 )     (641 )     (1,596 )     (6,106 )
Other income (expense):
                               
Interest income
    1       9       72       138  
Interest expense
    (31 )           (66 )     (5 )
Other income
    29       4       184       73  
Total other (expense) income, net
    (1     13       190       206  
Loss from continuing operations before income taxes
    (105 )     (628 )     (1,406 )     (5,900 )
Provision for income taxes
    (91 )     (62 )     (95 )     (234 )
Loss from continuing operations
    (196 )     (690 )     (1,501 )     (6,134 )
Loss from discontinued operations, net of tax
                      (332 )
Net loss
  $ (196 )   $ (690 )   $ (1,501 )   $ (6,466 )
Net loss per common share – basic and diluted:
                               
Loss from continuing operations
  $ (0.00 )   $ (0.01 )   $ (0.03 )   $ (0.11 )
Loss from discontinued operations
                      (0.01 )
Basic and diluted net loss per share
  $ (0.00 )   $ (0.01 )   $ (0.03 )   $ (0.12 )
Weighted average shares outstanding
                               
          Basic and diluted
    59,850       55,170       58,188       55,189  

 
 
5

 
 
NTN BUZZTIME, INC. AND SUBSIDIARIES
SELECTED CASH FLOW DATA
For the years ended December 31, 2009 and 2008
(In thousands)
 
   
2009
   
2008
 
Cash flows (used in) provided by operating activities:
           
Net loss
  $ (1,501 )   $ (6,466 )
Loss from discontinued operations, net of tax
          (332 )
Loss from continuing operations
  $ (1,501 )   $ (6,134 )
Adjustments to reconcile net loss to net cash provided by operating activities:
               
Depreciation and amortization
    3,193       3,101  
Provision for doubtful accounts
    227       557  
Stock-based compensation
    180       312  
Loss from disposition of equipment and capitalized software
    267       618  
Changes in assets and liabilities:
               
Accounts receivable
    (181 )     142  
Prepaid expenses and other assets
    95       129  
Accounts payable and accrued expenses
    139       (367 )
Income taxes payable
    (161 )     (19 )
Deferred costs
    393       (199 )
Deferred revenue
    (148 )     (296 )
Net cash provided by (used in) continuing operations
    2,503       (2,156 )
Discontinued operations
          (807 )
Net cash provided by (used in) operating activities
    2,503       (2,963 )
Cash flows provided by (used in) investing activities:
               
Capital expenditures
    (1,910 )     (2,160 )
Software development expenditures
    (1,138 )     (835 )
Trademark license
    (94 )      
Deposits on broadcast equipment
    (28 )      
Proceeds from sale of equipment and other assets
          12  
Restricted cash
          51  
Net cash used in investing activities by continuing operations
    (3,170 )     (2,932 )
Discontinued operations
          7  
Net cash used in investing activities
    (3,170 )     (2,925 )
Cash flows (used in) provided by financing activities:
               
Principal payments on capital leases
    (155 )     (12 )
Proceed from sale of common stock
    750        
Proceeds from exercise of options
    28        
Purchase of treasury stock
          (12 )
Net cash provided by (used) in financing activities by continuing operations
    623       (24 )
Net decrease increase in cash and cash equivalents
    (44 )     (5,912 )
Effect of exchange rate on cash
    319       (999 )
Cash and cash equivalents at beginning of year
    3,362       10,273  
Cash and cash equivalents at end of year
  $ 3,637     $ 3,362  


 
6

 

The following information was filed by Ntn Buzztime Inc (NTN) on Tuesday, March 30, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Ntn Buzztime Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Ntn Buzztime Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account