Bingo.com Announces Third Quarter Results.ANGUILLA Anguilla (ăng-gwĭl`ə), island and British dependency (2005 est. pop. 13,300) 35 sq mi (91 sq km), West Indies, northernmost of the Leeward Islands. The capital is the town of The Valley. , British West Indies British West Indies: see West Indies; West Indies Federation. -- Bingo.com, Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BNGOF), operator of the Internet's pre-eminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae bingo portal, today announced its financial results for the third quarter ended September September: see month. 30, 2005. All amounts are presented in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars and in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with United States Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Bingo.com highlights of the third quarter of 2005 include: - Profit of $46,965, the fifth consecutive positive quarter. - Total revenue of $465,733, a 2% increase over revenue of $457,339 in the second quarter of 2005. - Successful completion of the first full quarter of Cash Bingo gaming operations. - Cash Bingo revenue of $197,873, an increase of 356% over Cash Bingo revenue of $43,361 that was generated over a six week period in the second quarter of 2005. "Bingo.com has achieved its quarterly objectives of increased profitability and strong gaming revenue growth," commented Tarrnie Williams, the Company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "In the fourth quarter we intend to further reduce our reliance on advertising revenue while continuing to develop and expand the size of our gaming operations." The Company had cash of $1,110,306 and working capital of $633,247 at September 30, 2005. This compares to cash of $1,191,682 and working capital of $572,562 at June June: see month. 30, 2005 and cash of $74,032 and a working capital deficit of ($625,376) at December December: see month. 31, 2004. Total revenue increased to $465,733 for the quarter ended September 30, 2005, an increase of 2% from revenue of $457,339 in the second quarter of 2005 and an increase of 70% from revenue of $274,758 for the same period in the prior year. Of the $465,733 in revenue for the quarter, the Cash Bingo operations provided revenue of $197,873, an increase of 356% from revenue of $43,361 in the second quarter of 2005. This increase in revenue over the second quarter 2005 is due to strong growth and the provision of Cash Bingo games for the entire quarter. Bingo.com did not introduce Cash Bingo until the middle of the second quarter of 2005. The Company earned advertising revenue of $267,860 in the quarter ended September 30, 2005, a decrease of 35% from advertising revenue of $413,978 in the second quarter of 2005. This decrease is due to Management's decision to limit the amount of advertising available to third parties in order to increase the traffic to our own Cash Bingo games. The increase in revenue compared to the third quarter of 2004 is due to greater traffic to Bingo.com and increased rates for the advertising portion of the revenue. Operating costs operating costs npl → gastos mpl operacionales before interest, depreciation and amortization expenses decreased to $299,695 in the third quarter of 2005, a decrease of 10% over operating costs of $334,740 in the second quarter of 2005. The decrease in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. is primarily due to the decrease in legal expenses incurred as a result of merging the Company with its subsidiary in Anguilla, British West Indies in the second quarter of 2005. This decrease was partially offset by an increase in Cash Bingo sales and marketing expenses incurred in the third quarter of 2005. Net profit for the quarter ended September 30, 2005, amounted to $46,965, a significant increase in net profit compared to net profit of $1,522 for the second quarter of 2005, and an increase of 16% compared net profit of $40,415 in the third quarter in the prior year. The increase in net profit compared to the third quarter of 2004 and the second quarter of 2005 is due to the increase in revenue. About Bingo.com Bingo.com, Ltd. operates the popular web portal See portal. www.bingo.com offering free and cash games including multiplayer bingo, video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console which is a similar size to a slot machine. History Video poker first became commercially viable when it became economical to combine a television-like monitor with a , sweepstakes sweepstakes, contest or race, usually a horse race, on which a lottery is run. Prizes are awarded to the holders of winning tickets. In the case of a horse race, the draw is made from the names of all the horses entered in the race and vast numbers of blanks. , slot machines, and more. With over 1,200,000 registered users and more than 800 new users everyday, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Specifically, readers should read the Company's Annual Report on Form 10-KSB, filed with the SEC on March 21, 2005, and the prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. filed under Rule 424(b) of the Securities Act on March 9, 2005, for a more thorough discussion of the Company's financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Bingo.com, Ltd.
BINGO.COM, LTD.
Consolidated Balance Sheets
As at September 30, 2005 and December 31, 2004
(Unaudited)
--------------------------------------------------------------------
September 30, December 31,
2005 2004
--------------------------------------------------------------------
(Unaudited) (Audited)
Assets
Current assets:
Cash $ 1,110,306 $ 74,032
Accounts receivable 87,208 56,588
Inventory 813 864
Prepaid expenses 100,968 19,083
--------------------------------------------------------------------
Total Current Assets 1,299,295 150,567
Equipment, net 101,971 118,933
Other assets 16,120 7,659
Domain name rights and intangible
assets 1,287,314 1,294,730
Deferred tax asset, less valuation
allowance of $1,005,509 (2004 -
$3,140,726) (Note 3) - -
--------------------------------------------------------------------
Total Assets $ 2,704,700 $ 1,571,889
--------------------------------------------------------------------
--------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 451,921 $ 466,864
Accrued liabilities 71,306 74,319
Accounts payable and accrued
liabilities - related party (Note 4) 74,990 119,260
Unearned revenue 67,831 115,500
--------------------------------------------------------------------
Total Current Liabilities 666,048 775,943
Long-term liabilities
Loan payable - related party (Note 4) 130,469 157,042
--------------------------------------------------------------------
Total Long-Term Liabilities 130,469 157,042
--------------------------------------------------------------------
Total Liabilities 796,517 932,985
--------------------------------------------------------------------
Commitments and contingencies
Stockholders' equity (Note 2):
Common stock, no par value,
unlimited shares
authorized, 26,775,903 shares
issued and outstanding
(December 31, 2004 - 24,399,086) 11,284,281 10,095,698
Accumulated deficit (9,400,678) (9,481,374)
Accumulated other comprehensive loss:
Foreign currency translation adjustment 24,580 24,580
--------------------------------------------------------------------
Total Stockholders' Equity 1,908,183 638,904
--------------------------------------------------------------------
Total Liabilities and Stockholders'
Equity $ 2,704,700 $ 1,571,889
--------------------------------------------------------------------
BINGO.COM, LTD.
Consolidated Statements of Operations
For the periods ended September 30, 2005 and 2004
(Unaudited)
--------------------------------------------------------------------
Nine Months Nine Months Three Months Three Months
ended ended ended ended
September 30, September 30, September 30, September 30,
2005 2004 2005 2004
--------------------------------------------------------------------
Advertising
revenue $ 1,085,389 $ 768,699 $ 267,860 $ 274,758
Cash bingo
revenue 241,234 - 197,873 -
--------------------------------------------------------------------
Total revenue 1,326,623 768,699 465,733 274,758
Cost of revenue 324,734 164,701 113,140 64,291
--------------------------------------------------------------------
Gross profit 1,001,889 603,998 352,593 210,467
--------------------------------------------------------------------
Operating
expenses:
Depreciation
and
amortization 32,939 19,429 12,816 6,754
General and
administrative 683,856 407,874 193,808 135,988
Sales and
marketing 224,562 30,913 120,464 13,780
--------------------------------------------------------------------
Total operating
expenses 941,357 458,216 327,088 156,522
--------------------------------------------------------------------
Income before
other income
(expense) 60,532 145,782 25,505 53,945
Other income
(expense):
Foreign
exchange
losses (21,563) (9,537) (15,664) (14,634)
Gain on
resolution
of debt 30,241 38,518 30,241 7,551
Gain on disposal
of equipment 23 - - -
Net interest
income (expense) 11,463 (50,172) 6,883 3,764
Interest expense
- warrant
debenture
discount - (259,823) - (10,211)
--------------------------------------------------------------------
Income (loss)
before income
taxes 80,696 (135,232) 46,965 40,415
Income tax
(expense)
income
(Note 3) (2,135,217) - 46,808 -
Tax benefit
(expense) of
net
operating
loss carry
forward 2,135,217 - (46,808) -
--------------------------------------------------------------------
Net income
(loss) $ 80,696 $ (135,232) $ 46,965 $ 40,415
--------------------------------------------------------------------
Net income
(loss) per
common share,
basic and
diluted $ 0.00 $ (0.01) $ 0.00 $ 0.00
--------------------------------------------------------------------
Weighted average
common shares
outstanding,
basic and
diluted 25,827,355 18,813,622 26,732,425 24,266,546
Weighted average
common shares
outstanding,
diluted 30,359,741 22,266,797 31,315,383 28,210,282
--------------------------------------------------------------------
BINGO.COM, LTD.
Consolidated Statements of Cash Flows
For Nine Months Ended September 30, 2005 and 2004
(Unaudited)
--------------------------------------------------------------------
2005 2004
--------------------------------------------------------------------
Cash flows from operating activities:
Net income (loss) $ 80,696 $ (135,232)
Adjustments to reconcile net (loss)
income to net cash provided (used) by
operating activities:
Depreciation and amortization 32,939 19,429
Gain on resolution of debt (30,241) (38,518)
Gain on disposal of equipment (23) -
Amortization of warrants - debenture
discount - 259,823
Changes in operating assets and
liabilities:
Accounts receivable (30,620) 23,599
Prepaid expenses (81,885) (8,682)
Inventory 51 (464)
Other assets (8,461) 3,274
Accounts payable and accrued
liabilities (31,985) (70,201)
Unearned revenue (47,669) 51,652
--------------------------------------------------------------------
Net cash (used in) provided by
operating activities (117,198) 104,680
--------------------------------------------------------------------
Cash flows from investing activities:
Acquisition of equipment (8,748) (9,184)
Acquisition of intangible asset
- email list - (45,000)
Proceeds on disposal of equipment 210
--------------------------------------------------------------------
Net cash used in investing activities (8,538) (54,184)
Cash flows from financing activities:
Exercise of stock options 38,833 -
Exercise of Warrant B 145,000 -
Proceeds from private placement 1,004,750 -
Repayment of loans and notes payable (26,573) (28,549)
--------------------------------------------------------------------
Net cash provided by (used in)
financing activities 1,162,010 (28,549)
--------------------------------------------------------------------
Net increase in cash 1,036,274 21,947
Cash, beginning of period 74,032 34,046
--------------------------------------------------------------------
Cash, end of period $ 1,110,306 $ 55,993
--------------------------------------------------------------------
Supplementary information:
Interest paid $ 2,067 $ 1,966
Income taxes paid $ - $ -
--------------------------------------------------------------------
Non-cash transactions
Conversion of Debenture A and accrued
interest into common shares $ - $ 1,650,667
Conversion of Debenture B and accrued
interest into common shares $ - 179,895
--------------------------------------------------------------------
Bingo.com, Ltd. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :BNGOF) |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion