BRST Burst Med Reg S

 

TIDMBRST 
 
RNS Number : 9747L 
Burst Media Corporation 
21 January 2009 
 
 
 
 
 
 
 
 
 
21 January 2009 
 
 
Burst Media Corporation 
 
 
Trading update 
 and 
Intention to repurchase shares 
 
 
Burst Media Corporation ("Burst" or the "Company"), the international online 
advertising services company, today announces an update on trading for the year 
ended 31 December 2008 and the intention of the Company to repurchase for 
cancellation Burst common shares of US$0.01 each ("Burst Shares") with an 
aggregate market value of up to US$500,000. 
 
 
Trading update 
 
 
The Board is pleased to report that it expects the Company's full year revenue 
will be broadly in line with the guidance provided in the trading update 
announced on 24 July 2008 and that it will at least break even on an adjusted 
EBITDA* basis. The Board considers this to be a satisfactory outcome in light of 
the challenging economic environment, especially during the fourth quarter. The 
Company has maintained a strong cash position with over $10.6 million net cash 
balances at the year-end. 
 
 
The Company expects to announce its preliminary results for the year ended 31 
December 2008 on 8 April 2009. 
 
 
*earnings before interest, taxes, depreciation and amortization and excluding 
restructuring charges, strategic review expenses and equity-based compensation 
 
 
Strategic review update 
 
 
On 14 December 2007, the Board announced a strategic review to explore ways to 
maximise value for the Company's shareholders, including the potential sale of 
the Company. However, the challenging economic environment undoubtedly impacted 
upon and extended the process undertaken by the Company in this regard and the 
Company did not receive any indications of interest that, in the opinion of the 
Board, would have created appropriate value for Burst shareholders. 
 
 
After careful consideration, the Board has decided that, in view of its current 
trading performance and strong balance sheet and the challenging macro economic 
climate, selling the Company at this time would not be in the best interest of 
Burst shareholders. The Board has, therefore, decided to discontinue its 
proactive efforts in this regard and to focus on the ongoing development of the 
Company. 
 
 
The Board believes that opportunities exist for the Company to take advantage of 
its relative strength to add critical mass to its businesses and to generate 
shareholder value. The Board is exploring a number of opportunities in this 
regard, including potential acquisitions in the US and the UK. 
 
 
Burst Share repurchases 
 
 
Having considered its plans for the ongoing development of Burst, the 
illiquidity of the Company's shares and the requirement for prudence in the 
current economic climate, the Board has resolved that the Company should be 
authorised to make on-market purchases of Burst Shares ("Repurchases") with an 
aggregate market value of up to US$500,000. It is intended that any Burst Shares 
purchased pursuant to this authorisation will be cancelled. The Board has 
appointed a committee to oversee the Repurchases and has imposed the following 
parameters: 
 
 
  *  Repurchases should only be effected when the Company is not in a 'close period' 
  - in this regard the Company notes that a close period will commence on 8 
  February 2009 (two months ahead of its 2008 results announcement); 
  *  The price paid per Burst Share should be no higher than five per cent above the 
  average closing market price of a Burst Share for the five business days prior 
  to the day any Repurchase is made; and 
  *  Repurchases should be notified by the Company without delay. 
 
 
 
For the avoidance of doubt, the Company will not repurchase any Burst Shares 
from members of the Board. 
 
 
It should be noted that the City Code on Takeovers and Mergers does not apply to 
the Company. 
 
 
Jarvis Coffin, Chief Executive Officer of Burst, commented: 
 
 
"The improvements we made to our operations over the past eighteen months were 
instrumental in allowing the Company to record a satisfactory trading 
performance in the second half of 2008. We believe that Burst Media is now a 
stronger, more robust business, better placed to weather the uncertain economic 
conditions ahead. 
 
 
"We are pleased to be in a position to return some capital to shareholders 
(albeit a modest amount), whilst retaining both a prudent balance sheet and the 
flexibility to take advantage of identified opportunities to grow." 
 
 
Enquiries 
 
 
+------------------------------------+------------------------------------+ 
| Burst Media Corporation            |                                    | 
+------------------------------------+------------------------------------+ 
| Jarvis Coffin, Chief Executive     | Tel: +1 781 852 5271               | 
| Steve Hill, Chief Financial        |                                    | 
| Officer                            |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Hudson Sandler                     |                                    | 
+------------------------------------+------------------------------------+ 
| Nick Lyon / James White            | +44 (0) 20 7796 4133               | 
+------------------------------------+------------------------------------+ 
 
 
+------------------------------------+------------------------------------+ 
| Altium                             |                                    | 
+------------------------------------+------------------------------------+ 
| Tim Richardson / Paul Chamberlain  | +44 (0) 20 7484 4040               | 
+------------------------------------+------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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