Big Stick Media Corporation Announces Earnings for Fiscal Quarter Ended August 31, 2008
08 Ottobre 2008 - 9:20PM
Marketwired
Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:
BSM) today announces its financial results for its third fiscal
quarter of 2008 (ended August 31, 2008).
During the third quarter of its 2008 fiscal year, the Company
achieved total revenue of $2,920,000 and incurred a net loss of
$1,067,000. The corresponding revenue and net loss figures for the
third quarter of fiscal 2007 were $1,586,000 and $1,335,000
respectively. Excluding the effects of (a) non-cash expenses
related to amortization, stock option compensation and foreign
exchange gains and losses emanating from the movement of U.S.
dollar, as well as (b) interest expense produces an adjusted EBITDA
figure for the quarter ended August 31, 2008 of $363,000. The
corresponding figure for the third quarter of fiscal 2007 was a
loss of $859,000.
The cash flow from operations for the quarter ended August 31,
2008 reflected a net use of funds of $412,000. However, this figure
includes the effects of a one-time contract cancellation expense of
$1,250,000 related to the termination of a marketing services
contract with a third party consultant in support of the
Linetracker product. With the acquisition of the Don Best Sports
product line ("Don Best"), Linetracker and the related marketing
services contract became redundant and were wound down. This
expense had been accrued in the quarter ended May 31, 2008 but the
payment was only effected in June. Excluding the effects of this
non-recurring expenditure, the operations produced positive cash
flow of $838,000 in the third quarter of fiscal 2008. The
corresponding figure for the third quarter of fiscal 2007 was
negative $117,000.
The enhanced EBITDA in the third quarter of 2008 is primarily
due to the addition of the Don Best operations following their
acquisition by BSM on April 28, 2008. This division produced EBITDA
of approximately $635,000. Furthermore, on the strength of its
significant cash inflows realized in August in respect of the sale
of extended period customer subscriptions, its free cash balances
grew by around $1.4 million during the quarter.
In addition to the revenues recognized to date by the Company,
its balance sheet, as at August 31, 2008, reflects deferred revenue
of approximately $3.98 million, 99% of which will be recognized as
revenue in the ensuing 12 months. There are no material deferred
costs on the balance sheet to be expensed against such revenue.
"The third quarter of 2008 represented a key turning point for
BSM as we have become a cash flow positive operation," stated
Christopher Kape, President and Chief Executive Officer. "We were
very pleased by the performance of the Don Best business. As well,
we initiated substantial overhead reduction initiatives in our Las
Vegas call center operations. Despite material staffing and
marketing cuts, our early football-related sales of advisory
content exceeded our budget and allowed for cash accumulation in
that unit. Overall, we look forward to continuing to deliver on our
business plan of solidifying our position as the pre-eminent
provider of fact-based and opinion-oriented information for the
North American sports market."
The Company's unaudited consolidated financial statements and
management discussion and analysis (MD&A) for the third quarter
ended August 31, 2008 are available at www.sedar.com.
As at the date hereof and including the issued shares referred
to herein, BSM has 121,495,601 issued and outstanding common
shares.
BSM is based in Vancouver, British Columbia and trades on the
TSX Venture Exchange under the trading symbol "BSM".
About Big Stick Media Corporation
BSM owns and operates a portfolio of assets that provide
fact-based and opinion oriented information relevant to the sports
industry. These assets include websites, client-server software,
publications and call centers. BSM generates revenues in a number
of ways, including various direct to consumer services and direct
to business sales through a portfolio of websites, the most
significant of which are www.JimFeist.com, www.donbest.com and
www.g-picks.com. BSM also operates the Don Best Sports real-time
sports information systems for serious sports enthusiasts,
handicappers and bettors. In addition, the Company operates various
fantasy sports contests catering to all the sports enthusiasts
through its fantasy sports website www.rotoplay.com.
Cautionary Statement
This press release may contain certain forward-looking
statements with respect to the Corporation. These forward-looking
statements, by their nature, involve risks and uncertainties that
could cause actual results to differ materially from those
contemplated. We consider the assumptions on which these
forward-looking statements are based to be reasonable, but caution
the reader that these assumptions regarding future events, many of
which are beyond our control, may ultimately prove to be incorrect.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
Big Stick Media Corporation's expectations are various risks
detailed from time to time in the filings made by Big Stick Media
Corporation with securities regulations.
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy and accuracy of this release.
Contacts: Big Stick Media Corporation Christopher S. Kape CEO
(604) 630-6550 ext. 111 Email: chris@bigstickmedia.com
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