NTN Buzztime Inc (NTN, Financial) filed Quarterly Report for the period ended 2011-06-30.
Ntn Buzztime Inc. has a market cap of $26.8 million; its shares were traded at around $0.43 with and P/S ratio of 1.
Selling, general and administrative expenses increased $476,000, or 9.7%, to $5,374,000 for the three months ended June 30, 2011 from $4,898,000 for the same period in 2010. The increase in selling, general and administrative expenses was due to increased payroll and related expense of $169,000 primarily due to merit increases as well as increased incentive compensation, payroll taxes and recruiting expense; increased consulting expense of $167,000 primarily related to new playmaker development efforts; expenses incurred in connection with our corporate and warehouse relocations of $181,000 and other miscellaneous increases of $23,000. These increases were offset by lower bad debt expense of $64,000 resulting from improved collection efforts.
Other income (expense), net increased in income by $132,000 to $69,000 of other income for the three months ended June 30, 2011 from $63,000 of other expense for the same period in 2010. The majority of this increase in other income is due to a $59,000 reduction of an earnout liability related to an asset acquisition that we completed in 2009 and a $49,000 sales tax refund that we are due as a result of having over paid sales tax, offset by a reduction of income related to an insurance settlement of $17,000 recognized in 2010. Additionally, we recognized $15,000 less in interest expense due to reduced capital lease obligations, $20,000 less in loss on disposal of assets and $6,000 less in foreign currency exchanges losses related to our foreign operations for the three months ended June 30, 2011 when compared to the same period in 2010.
Selling, general and administrative expenses increased $390,000, or 4%, to $10,206,000 for the six months ended June 30, 2011 from $9,816,000 for the same period in 2010. The increase in selling, general and administrative expenses was due to increased payroll and related expense of $465,000 primarily due to merit increases as well as increased severance expense, increased recruiting and relocation expense for executive officers and increased incentive compensation. Additionally, we recognized $194,000 of moving expenses in connection with our corporate and warehouse relocations during the six months ended June 30, 2011. These increases were offset by lower bad debt expense of $174,000 resulting from improved collection efforts; lower travel and entertainment expense of $29,000; a reduction in occupancy expense of $25,000 due to lower rent and telephone costs; a decrease in software and hardware expense of $20,000 primarily due to lower software disposals and a decrease of $21,000 in other miscellaneous expenses.
Other income (expense), net increased in income by $98,000 to $41,000 of other income for the six months ended June 30, 2011 from $57,000 of other expense for the same period in 2010. The majority of this increase in other income is due to a $59,000 reduction of an earnout liability related to our 2009 asset acquisition and a $49,000 sales tax refund that we are, offset by a reduction of income related to an insurance settlement of $17,000 recognized in 2010. Additionally, we recognized $26,000 less in interest expense due to reduced capital lease balances and $5,000 less in loss on disposal of assets for the six months ended June 30, 2011 when compared to the same period in 2010. These increases in other income were offset by an increase in foreign currency exchanges losses of $27,000 related to our foreign operations for the six months ended June 30, 2011 when compared to the same period in 2010.
Net cash used in investing activities. We used $1,430,000 in cash for investing activities for the six months ended June 30, 2011 compared to $1,090,000 used in cash for investing activities during the same period in 2010. The $340,000 increase in cash used in investing activities was primarily due to an increase in capital expenditures of $527,000 due primarily to increased broadcast equipment purchases, offset by decreases in cash used of $62,000 for software development initiatives and $35,000 related to a trademark license. In addition, cash provided by investing activities increased $90,000 due to proceeds received from the sale of securities available-for-sale during the six months ended June 30, 2011 compared to the same period in 2010.
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Ntn Buzztime Inc. has a market cap of $26.8 million; its shares were traded at around $0.43 with and P/S ratio of 1.
Highlight of Business Operations:
Gross margin as a percentage of revenue increased to 76% for the three months ended June 30, 2011 from 75% for the three months ended June 30, 2010. Direct costs decreased $119,000, or 8%, to $1,408,000 for the three months ended June 30, 2011 from $1,527,000 for the three months ended June 30, 2010. The decrease in direct costs was primarily due to a decrease in service provider fees of $118,000 primarily due to fewer service calls during the three months ended June 30, 2011 compared to the same period in 2010, and a decrease in direct depreciation and amortization expense of $36,000 due to assets becoming fully depreciated. These decreases were offset by increased freight expense of $22,000 due to higher fuel surcharges and an increase of $13,000 in other miscellaneous expenses.Selling, general and administrative expenses increased $476,000, or 9.7%, to $5,374,000 for the three months ended June 30, 2011 from $4,898,000 for the same period in 2010. The increase in selling, general and administrative expenses was due to increased payroll and related expense of $169,000 primarily due to merit increases as well as increased incentive compensation, payroll taxes and recruiting expense; increased consulting expense of $167,000 primarily related to new playmaker development efforts; expenses incurred in connection with our corporate and warehouse relocations of $181,000 and other miscellaneous increases of $23,000. These increases were offset by lower bad debt expense of $64,000 resulting from improved collection efforts.
Other income (expense), net increased in income by $132,000 to $69,000 of other income for the three months ended June 30, 2011 from $63,000 of other expense for the same period in 2010. The majority of this increase in other income is due to a $59,000 reduction of an earnout liability related to an asset acquisition that we completed in 2009 and a $49,000 sales tax refund that we are due as a result of having over paid sales tax, offset by a reduction of income related to an insurance settlement of $17,000 recognized in 2010. Additionally, we recognized $15,000 less in interest expense due to reduced capital lease obligations, $20,000 less in loss on disposal of assets and $6,000 less in foreign currency exchanges losses related to our foreign operations for the three months ended June 30, 2011 when compared to the same period in 2010.
Selling, general and administrative expenses increased $390,000, or 4%, to $10,206,000 for the six months ended June 30, 2011 from $9,816,000 for the same period in 2010. The increase in selling, general and administrative expenses was due to increased payroll and related expense of $465,000 primarily due to merit increases as well as increased severance expense, increased recruiting and relocation expense for executive officers and increased incentive compensation. Additionally, we recognized $194,000 of moving expenses in connection with our corporate and warehouse relocations during the six months ended June 30, 2011. These increases were offset by lower bad debt expense of $174,000 resulting from improved collection efforts; lower travel and entertainment expense of $29,000; a reduction in occupancy expense of $25,000 due to lower rent and telephone costs; a decrease in software and hardware expense of $20,000 primarily due to lower software disposals and a decrease of $21,000 in other miscellaneous expenses.
Other income (expense), net increased in income by $98,000 to $41,000 of other income for the six months ended June 30, 2011 from $57,000 of other expense for the same period in 2010. The majority of this increase in other income is due to a $59,000 reduction of an earnout liability related to our 2009 asset acquisition and a $49,000 sales tax refund that we are, offset by a reduction of income related to an insurance settlement of $17,000 recognized in 2010. Additionally, we recognized $26,000 less in interest expense due to reduced capital lease balances and $5,000 less in loss on disposal of assets for the six months ended June 30, 2011 when compared to the same period in 2010. These increases in other income were offset by an increase in foreign currency exchanges losses of $27,000 related to our foreign operations for the six months ended June 30, 2011 when compared to the same period in 2010.
Net cash used in investing activities. We used $1,430,000 in cash for investing activities for the six months ended June 30, 2011 compared to $1,090,000 used in cash for investing activities during the same period in 2010. The $340,000 increase in cash used in investing activities was primarily due to an increase in capital expenditures of $527,000 due primarily to increased broadcast equipment purchases, offset by decreases in cash used of $62,000 for software development initiatives and $35,000 related to a trademark license. In addition, cash provided by investing activities increased $90,000 due to proceeds received from the sale of securities available-for-sale during the six months ended June 30, 2011 compared to the same period in 2010.
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