BiznessOnline.com Announces Second Quarter and Year to Date Results.WALL, N.J.--(BUSINESS WIRE)--Aug. 3, 1999-- BiznessOnline.com, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM: BIZZ) today reported unaudited pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma results for the quarter ended June 30, 1999. The pro forma financial results presented below for the six months ending June 30, 1998 and 1999 assume the BiznessOnline.com initial public offering and related acquisitions of four Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. (ISPs) which took place in May 1999, and the earlier acquisition of an ISP (1) See in-system programmable. (2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines. in January 1999 all had taken place as of January 1, 1998 and that the Company operated as a consolidated entity from that date. Pro forma revenues for the quarter increased 36% to $1,905,522, from $1,401,297 for the quarter ended June 30, 1998. Pro forma net loss for the quarter ended June 30, 1999 was $706,870, or $0.11 per share as compared to a pro forma net loss of $728,380, or $0.11 per share for the quarter ended June 30, 1998. The pro forma net loss for both periods is attributable to non-cash amortization of goodwill resulting from the acquisitions of the five ISPs by BiznessOnline.com in 1999. Pro forma EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become decreased from $65,425 in 1998 to $11,314 for the quarter ended June 30, 1999. This decrease was a result of increased advertising compared to 1998 and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. associated with integrating the combined companies. Pro forma revenues for the six months ended June 30, 1999 increased 33% to $3,778,948, from $2,835,219 for the same period of 1998. Pro forma net loss for the six month period ended June 30, 1999 was $1,244,765, or $.18 per share, as compared to a pro forma net loss of $1,261,676, or $.18 per share for the six months ended June 30, 1998. The pro forma net loss for both periods is attributable to non-cash amortization of goodwill. EBITDA for the six months ended June 30, 1999 was $283,532, as compared to $318,644 for the same period in 1998. This decrease was a result of increased advertising compared to 1998 and administrative costs associated with integrating the combined companies. Subscribers increased 35% from 17,656 as of June 30, 1998 to 23,766 as of June 30, 1999.
BiznessOnline.com, Inc.
Pro Forma Income Statement
(unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
1999 1998 1999 1998
---- ---- ---- ----
Revenues $1,905,522 $1,401,297 $3,778,948 $2,835,219
Connectivity
& Operations 1,055,949 904,391 1,973,544 1,668,644
Selling General and
Administrative 838,259 431,481 1,521,822 847,931
Depreciation 134,018 108,800 256,521 206,711
Amortization 677,387 677,387 1,354,774 1,354,774
---------- ---------- ---------- ----------
Total Expenses 2,705,613 2,122,059 5,106,661 4,078,060
---------- ---------- ---------- ----------
Operating (Loss) (800,091) (720,762) (1,327,713) (1,242,841)
Interest Income
(Expense), net 92,954 ( 7,618) 82,578 ( 18,835)
Other Income (Expense) 267 -- 370 --
---------- ---------- ---------- ----------
(Loss) Before Taxes (706,870) (728,380) (1,244,765) (1,261,676)
Income Tax Provision -- -- -- --
---------- ---------- ---------- ----------
Net Loss $ (706,870) $ (728,380) $(1,244,765) $(1,261,676)
========== ========== =========== ===========
EBITDA $ 11,314 $ 65,425 $ 283,582 $ 318,644
Net Loss per share $ (0.10) $ (0.11) $ (0.18) $ (0.18)
Weighted Average
Shares Outstanding 6,890,436 6,890,436 6,890,436 6,890,436
BiznessOnline.com, Inc.
Selected Balance Sheet Information
(unaudited)
June 30, 1999 December 30,1998
------------- ----------------
Cash and cash equivalents $19,515,000 $19,663,000
Working capital 18,241,000 18,267,000
Total assets 33,786,000 34,606,000
Accumulated deficits (798,000) (42,000)
Shareholders equity 31,844,000 32,920,000
-0- BiznessOnline.com is a leading regional provider of Internet and Web Application services See ASP and Web services. to small and medium-sized businesses and residential accounts in underserved, secondary markets in the Northeastern US. The Company offers bundled, tier-1 network broadband services via DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. , and T-1 and T-3, new web media and e-commerce development, web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , and dial-up services An information service on demand. The term was popular when analog modems were the only way to connect to a remote system. See dial-up. . BiznessOnline.com's corporate offices are located in Wall, N.J., and the Company can be found on the World Wide Web at www.biznessonline.com. "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. " Statement under 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: Certain of these statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including the uncertainties inherent in the process of auditing and making end-of-year adjustments to a corporation's financial statements, risks related to the Company's growth strategy, the ability to complete and integrate acquisitions, market demand for the Company's services, and other factors affecting the Company's prospects as described in the Company's filings with the Securities and Exchange Commission, including the Company's prospectus in its Form SB-2 registration statement. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. L.G. Zangani, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control provides financial public relations Financial public relations Public relations division of a company charged with cultivating positive investor relations and proper disclosure information. service to the Company, As such L.G. Zangani, LLC and/or its officers, agents and employees, receives remuneration for public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most and or other services in the form of moneys, capital stock in the Company, warrants or options to purchase capital in the Company. |
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