SOURCE:
JumpTV Inc.
2008-08-11 05:00:00
JumpTV Reports Q2 2008 Results
TORONTO–(EMWNews – August 11, 2008) – JumpTV (TSX: JTV) (
of live and on-demand sports and international television over the
Internet, today announced results for the second quarter ended June 30,
2008.
Revenue was $3.6 million (all amounts in U.S. dollars) for the second
quarter of 2008 compared to $3.6 million for the first quarter of 2008 and
$1.2 million in the same period in 2007 — marking a year-over-year
increase of 206%. This increase can be attributed to the acquisition of
CyclingTV and XOS Broadband Networks (now JumpTV Sports) and the revenue
generated by the South American World Cup Qualifiers in the second quarter
of 2008.
The net loss for the three months ended June 30, 2008 was $11.5 million or
$0.23 per share, basic and diluted as compared to $58.7 million or $1.19
per share, basic and diluted for the three months ended March 31, 2008 and
$6.5 million or $0.13 per share, basic and diluted in the same period a
year ago. The decrease in net loss from the first quarter 2008 was
primarily due to the impairment of goodwill and intangibles recorded in the
first quarter. Non-cash expenses were $2.0 million in the second quarter,
consisting of amortization and stock-based compensation, compared to $50.2
million in the first quarter of 2008, consisting of impairment of goodwill
and intangibles as well as amortization and stock-based compensation. As of
June 30, 2008 the Company had $29.8 million in cash and cash equivalents.
“In our sports business, we broadened our client base by adding new teams
and leagues as partners and, at the same time, we increased the depth of
many of our existing relationships by adding incremental functionality and
other technology solutions to their online offerings,” commented G. Scott
Paterson, Executive Chairman of JumpTV.
“In our international business, we took steps with respect to people and
other resources to position our strongest areas of content aggregation —
Arabic, South Asian, Hispanic and Caribbean — to be re-energized in the
context of our new business plan which will unfold as a result of our
planned merger with NeuLion. In particular, at this time, we have focused
on our Arabic content which will soon be launched and available under its
own newly designed and built proprietary portal which will compliment this
content’s availability on JumpTV.com,” added Paterson.
The Company reports that its previously announced planned merger with
NeuLion Inc., a Plainview, New York-based end-to-end IPTV service provider
of live and on-demand sports, international and religious programming over
the Internet and through set top boxes to the television, is on track to
close on October 1st subject to shareholder and regulatory approvals.
“We are very excited about our pending merger and believe that the
JumpTV/NeuLion combination will be able to offer our sports and
international content partners best-in-class technology and services,”
Paterson commented.
The Company reported the following traffic related average monthly metrics
in connection with overall user activity on JumpTV.com, our affiliate web
sites and on JumpTV Sports-managed sites but not including third-party
distributors of JumpTV content such as AOL.com and Terra.com:
KPI (monthly averages in millions) Q2 2008 Q2 2007
Stream Viewed 4.1 2.6
Minutes Viewed 95.9 63.0
Monthly Unique Visitors 7.2 4.6
Monthly Pages Viewed 62.6 46.2
Ad Impressions 178.3 22.2
The approximate number of subscribers as of June 30, 2008 was 68,500.
Year-over-year subscribers increased 128% from 30,000 in Q2 2007, primarily
as a result of the acquisitions of XOS Broadband Networks (now JumpTV
Sports) and Cycling TV. The Company reports that it is typical for its
subscriber trends to experience significant seasonality with Q2 being the
weakest and Q4 being the strongest quarters as a result of the
college/university school years and, correspondingly, football and
basketball seasons.
About JumpTV
JumpTV Inc. (www.jumptv.com), (TSX: JTV) (
broadcaster of live and on-demand sports and international television over
the Internet. In the last twelve months, JumpTV streamed more than 15,000
live and exclusive sporting events — comprised of top college (NCAA),
professional and Hispanic sports coverage — to millions of fans globally.
JumpTV also delivers a broad offering of internet services to its partners
including web hosting, live event video streaming, ticket management and
e-commerce.
Through JumpTV’s consumer websites: JumpTV.com, Cycling.TV and
SportsYa.com, as well as its collegiate and international sports partner
websites, JumpTV streams tens of thousands of hours of live and on-demand
events and international programming over the Internet each year, providing
content from over 160 international channels from 40 countries to
subscribers in over 90 countries.
Forward-Looking Statement
Certain statements herein relating to JumpTV’s plans to merge with Nuelion,
Inc. are forward-looking statements and represent JumpTV’s current
intentions in respect of future activities. These statements, in addressing
future events and conditions, involve inherent risks and uncertainties.
Forward-looking statements can by identified by the use of the words
“will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,”
“expect,” and “intend” and statements that an event or result “may,”
“will,” “can,” “should,” “could,” or “might” occur or be achieved and other
similar expressions. Forward-looking statements involve significant risk,
uncertainties and assumptions. Many factors could cause actual results,
performance or achievements to differ materially from the results discussed
or implied in the forward-looking statements. These factors should be
considered carefully and readers should not place undue reliance on the
forward-looking statements. Although the forward-looking statements
contained in this release are based upon what Management believes to be
reasonable assumptions, the Company cannot assure readers that actual
results will be consistent with these forward-looking statements. These
forward-looking statements are made as of the date of this release and the
Company assumes no obligation to update or revise them to reflect new
events or circumstances, except as required by law. Many factors could
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
that may be expressed or implied by such forward-looking statements,
including: general economic and market segment conditions, competitor
activity, product capability and acceptance, international risk and
currency exchange rates and technology changes. More specific risks include
that the merged entity will not be able to realize some or all of the
expected synergies due to incompatibilities in the merging businesses, the
inability of management to bring about such synergies or a changing
business environment rendering such synergies inadvisable or uneconomical.
After integrating the businesses the suite of service offerings may not
perform as expected if shifting demand moves in a direction away from the
expected business model of the merged entity, if competitors are able to
take market share away from the merged entity or if changing technology
adversely impacts the merged businesses. In addition, while the Company
expects its content partners and those of NeuLion to continue and expand
their relationship with the merged entity, there can be no assurance that
such relationships will continue as expected, or at all. More detailed
assessment of the risks that could cause actual results to materially
differ than current expectations is contained in the “Risk Assessment”
section of the Company’s 2007 annual MD&A filed on www.sedar.com.
JumpTV Inc.
CONSOLIDATED BALANCE SHEETS
[unaudited]
[Expressed in U.S. dollars, unless otherwise noted]
As at
June 30, December 31,
2008 2007
$ $
----------- -----------
ASSETS
Current
Cash and cash equivalents 29,800,084 51,202,984
Short-term investments 127,001 130,640
Accounts receivable, net of allowance for
doubtful accounts of $396,859 [2007 - $395,175] 1,454,571 1,782,280
Interest receivable 66,190 726,995
Sales taxes receivable 840,680 659,000
Other receivables 132,829 79,385
Prepaid expenses and deposits 1,298,810 1,044,921
----------- -----------
Total current assets 33,720,165 55,626,205
----------- -----------
Property, plant and equipment, net 6,766,812 6,760,565
Intangible assets, net 16,915,233 18,305,881
Goodwill - 47,970,833
Other assets 1,601,875 1,234,038
Deferred direct broadcast operating costs 1,926,590 76,409
Deferred acquisition costs 495,732 -
----------- -----------
Total assets 61,426,407 129,973,931
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable 1,780,624 3,296,858
Other accrued liabilities 6,486,346 5,247,328
Due to related party 17,490 37,229
Current portion of note payable 13,586 13,586
Current portion of obligations under capital
lease 108,635 120,465
Accrued stock appreciation rights 41,325 -
Deferred revenue 2,210,756 1,752,042
Income taxes payable 121,750 115,050
----------- -----------
Total current liabilities 10,780,512 10,582,558
----------- -----------
Deferred rent 562,246 599,440
Deferred revenue 212,672 228,127
Note payable 31,881 31,881
Obligations under capital lease 25,806 80,299
----------- -----------
Total liabilities 11,613,117 11,522,305
----------- -----------
Shareholders' equity
Share capital 173,006,956 172,697,828
Contributed surplus 8,991,547 7,740,531
Accumulated other comprehensive loss (40,355) (40,355)
Accumulated deficit (132,144,858) (61,946,378)
----------- -----------
Total shareholders' equity 49,813,290 118,451,626
----------- -----------
Total liabilities and shareholders' equity 61,426,407 129,973,931
=========== ===========
JumpTV Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
[unaudited]
[Expressed in U.S. dollars, unless otherwise noted]
Three months Six months
ended ended
June 30, June 30,
---------------------- ----------------------
2008 2007 2008 2007
$ $ $ $
---------- ---------- ---------- ----------
Revenue 3,601,950 1,175,924 7,208,509 2,179,070
Direct broadcast operating
costs (4,837,043) (1,551,330) (9,507,612) (2,911,589)
---------- ---------- ---------- ----------
(1,235,093) (375,406) (2,299,103) (732,519)
---------- ---------- ---------- ----------
Other costs and expenses
Selling, general and
administrative 9,471,741 6,739,486 18,327,462 13,268,378
Stock-based compensation
and other compensation
payments 747,283 793,737 1,540,219 1,949,839
Amortization of property,
plant and equipment 197,610 136,707 420,776 215,883
Amortization of intangible
assets 34,691 9,908 98,706 19,816
---------- ---------- ---------- ----------
10,451,325 7,679,838 20,387,163 15,453,916
---------- ---------- ---------- ----------
Loss before the following: (11,686,418) (8,055,244)(22,686,266)(16,186,435)
Impairment of goodwill - - (47,882,317) -
Impairment of long-lived
assets - - (173,786) -
Loss on foreign exchange (2,503) (132,117) (48,568) (86,303)
Investment income, net 222,457 1,682,560 602,533 2,698,221
---------- ---------- ---------- ----------
Loss before income taxes (11,466,464) (6,504,801)(70,188,404)(13,574,517)
Provision for income taxes 3,200 9,500 10,076 24,950
---------- ---------- ---------- ----------
Net loss for the period (11,469,664) (6,514,301)(70,198,480)(13,599,467)
========== ========== ========== ==========
Unrealized gain on
short-term investments - - - 287,511
Reclassification of
unrealized gain on
short-term investments - - - (295,626)
---------- ---------- ---------- ----------
Comprehensive loss for
the period (11,469,664) (6,514,301)(70,198,480)(13,607,582)
========== ========== ========== ==========
Loss per weighted average
number of shares
outstanding - basic and
diluted $ (0.23) $ (0.13) $ (1.42) $ (0.31)
========== ========== ========== ==========
Weighted average number of
shares outstanding -
basic and diluted 49,310,124 48,531,087 49,287,228 44,326,196
========== ========== ========== ==========
JumpTV Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
[unaudited]
[Expressed in U.S. dollars, unless otherwise noted]
Three months ended Six months ended
June 30, June 30,
----------------------- ------------------------
2008 2007 2008 2007
$ $ $ $
----------- ----------- ----------- ------------
OPERATING ACTIVITIES
Net loss for the period (11,469,664) (6,514,301) (70,198,480) (13,599,467)
Adjustments to reconcile
net loss to net cash
used in operating
activities
Amortization 1,309,468 260,978 2,583,600 437,008
Impairment of goodwill - - 47,882,317 -
Impairment of long-lived
assets - - 173,786 -
Unrealized gain (loss)
on short-term investments (842) (9,062) 3,639 (10,062)
Stock based compensation,
excluding change in
accrued stock
appreciation rights
as noted below 705,960 1,484,267 1,498,894 2,588,752
Amortization of deferred
direct broadcast
operating costs 31,395 31,396 62,790 62,790
----------- ----------- ----------- ------------
(9,423,683) (4,746,722) (17,993,454) (10,520,979)
Changes in operating
assets and liabilities
Funds held in trust - 216,191 - (14,884)
Accounts receivable 278,934 (116,300) 327,709 (126,300)
Interest receivable 16,852 82,527 660,805 (283,689)
Sales taxes receivable (98,470) (321,919) (181,680) 93,855
Other receivables (41,620) (36,649) (53,444) (98,896)
Prepaid expenses,
deposits and other
assets 313,084 43,957 (622,917) 329,021
Deferred direct
broadcast operating
costs (814,889) - (1,867,779) -
Deferred acquisition
costs (495,732) - (495,732) -
Accounts payable (237,699) (310,936) (1,516,234) (1,231,474)
Other accrued
liabilities 1,091,911 (1,098,629) 1,239,018 653,732
Due to related party (2,667) 558 (19,739) (21,539)
Obligations under
capital lease (33,593) - (66,323) -
Accrued stock
appreciation rights 41,325 (699,459) 41,325 (638,107)
Deferred revenue 103,244 3,709 443,259 75,290
Income taxes payable 3,200 9,500 6,700 24,950
Deferred rent 474 141,056 (37,194) 258,590
----------- ----------- ----------- ------------
Cash used in operating
activities (9,299,329) (6,833,116) (20,135,680) (11,500,430)
----------- ----------- ----------- ------------
INVESTING ACTIVITIES
Redemption of short-term
investments, net - - - 28,000,000
Purchase of equipment (669,641) (522,202) (1,256,185) (2,602,138)
Acquisition of SportsYA - 4,202 - (147,638)
Acquisition of Broadband
Network Division of
XOS Technologies Inc. - - (23,413) -
Acquisition of Cycling
TV, Limited - - (4,871) -
----------- ----------- ----------- ------------
Cash provided by (used in)
investing activities (669,641) (518,000) (1,284,469) 25,250,224
----------- ----------- ----------- ------------
FINANCING ACTIVITIES
Proceeds from share
issuances, net - (7,973) - 93,096,698
Repayment of bank loan - - - (1,287,150)
Proceeds from exercise
of stock options - 51,634 17,249 127,898
Proceeds from exercise
of warrants - 14,800 - 14,800
----------- ----------- ----------- ------------
Cash provided by
financing activities - 58,461 17,249 91,952,246
----------- ----------- ----------- ------------
Net increase (decrease)
in cash and cash
equivalents during the
period (9,968,970) (7,292,655) (21,402,900) 105,702,040
----------- ----------- ----------- ------------
Cash and cash equivalents,
beginning of period 39,769,054 134,931,573 51,202,984 21,936,878
----------- ----------- ----------- ------------
Cash and cash equivalents,
end of period 29,800,084 127,638,918 29,800,084 127,638,918
=========== =========== =========== ============
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