|
| |||||||||||||||
Parlay Entertainment Announces Results for Q2 2008 OAKVILLE, ONTARIO--(MARKET WIRE)--Aug 27, 2008 -- Parlay Entertainment Inc. (CDNX:PEI.V - News), the world's leading
supplier of Internet and TV bingo software solutions, today
announced its results for the three and six-month periods
ended June 30, 2008.
"In Q2 2008, we consummated a Divestiture transaction which had a positive impact on both revenue and cash flow for the quarter," said Scott White, Parlay's Chief Executive Officer. "As a result of that transaction, we have also made a number of adjustments to our recurring cost base in the quarter, which brings it more in line with current recurring revenue." "With the demand growing for more sophisticated and flexible Internet and TV bingo applications, we are pleased to have launched our next generation of gaming technologies in our release of Parlay5," continued Mr. White. "As operators become more competitive, require true differentiation and demand increased player liquidity across multiple languages and currencies, Parlay's latest technology offering will become the industry standard. We look forward to being able to add to our existing licensee-base throughout 2008 and beyond." Results for the second quarter of fiscal 2008 include: - Total revenue at $2,608,452, up 29% from Q2 2007. - Royalty revenue at $1,213,893, down 34% from Q2 2007. - Software license fees of $1,242,500, a new caption from Q2 2007. - Net income of $291,230, or $0.02 per share, fully diluted, up from net income of $12,868 in Q2 2007. - EBITDA(1) increased to $572,127, from $77,791 in Q2 2007 and EBITDA(1) margin increased to 22% from 4% in Q2 2007. Results for the first half of fiscal 2008 include: - Total revenue at $4,626,120, up 16% from the first half of 2007. - Royalty revenue at $2,975,808, down 18% from the first half of 2007. - Software license fees of $1,305,000, a new caption from the first half of 2007. - Net loss of $8,546, or $0.00 per share, fully diluted, down from net income of $122,750 in the first half of 2007. - EBITDA(1) decreased to $175,133, from $312,272 in the first half of 2007 and EBITDA(1) margin decreased to 4% from 8% in the first half of 2007. Parlay generates revenue from software licensing, installation fees and support services. Consolidated revenues were $2.6 million in Q2 2008 compared to $2 million in Q2 2007. Expenses in Q2 2008 were $2.1 million, up from $2.0 million in Q2 2007. The increase represented adverse foreign exchange effects and certain non-recurring costs in Q2 2008. Net income for the quarter was $0.3 million, or $0.02 per diluted share, compared to net income of $0.0 million, or $0.00 per diluted share in Q2 2007. Consolidated revenues were $4.6 million for the first half of 2008 compared to $4.0 million in the first half of 2007. Expenses in the first half of 2008 were $4.5 million, up from $3.8 million in the first half of 2007. The increase represented adverse foreign exchange effects and certain non-recurring costs in the first half of 2008. Net loss for the first half of 2008 was $0.0 million, or $0.00 per diluted share, compared to net income of $0.1 million, or $0.01 per diluted share, in the first half of 2007. Parlay remains debt free and Parlay's cash balance at June 30, 2008 was $3.4 million.
PARLAY ENTERTAINMENT INC.
CONSOLIDATED BALANCE SHEETS
(incorporated under the laws of the province of Ontario)
in whole U.S. dollars
-----------------------------
(Unaudited) (Audited)
June 30, December 31,
ASSETS 2008 2007
-----------------------------
Current assets:
Cash $ 3,427,766 $ 1,832,178
Accounts receivable:
Trade, less allowance of
approximately $328,000 1,633,682 1,480,956
($388,000 - 2007)
GST receivable 14,112 78,108
Income taxes recoverable 290,257 552,936
Prepaid expenses, deposits and
other assets 134,879 130,167
Future income taxes 114,130 114,130
-----------------------------
Total current assets 5,614,826 4,188,475
Equipment - net 133,238 203,127
Future income taxes, net of valuation
allowance 50,000 65,000
-----------------------------
$ 5,798,064 $ 4,456,602
-----------------------------
-----------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 638,299 $ 1,018,301
Deferred revenue 1,892,716 291,544
-----------------------------
Total current liabilities 2,531,015 1,309,845
-----------------------------
Shareholders' equity:
Common shares, an unlimited number of
shares authorized, 13,184,765 shares
issued and outstanding
(13,012,265 - 2007) 1,502,342 1,465,676
Contributed surplus 2,229,206 2,087,925
Retained earnings (accumulated deficit)
(464,499) (406,844)
-----------------------------
3,267,049 3,146,757
-----------------------------
$ 5,798,064 $ 4,456,602
-----------------------------
-----------------------------
PARLAY ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(in whole U.S. dollars, except for per share amounts)
Three-Months Ended Six-Months Ended
------------------ ----------------
June 30 June 30
------- -------
2008 2007 2008 2007
------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Royalties $ 1,213,893 $ 1,839,776 $ 2,975,808 $ 3,650,346
Installation fees 48,935 27,958 135,310 67,831
Software license
fees 1,242,500 - 1,305,000 -
Support services 103,124 149,639 210,002 271,050
-----------------------------------------------------
2,608,452 2,017,373 4,626,120 3,989,227
-----------------------------------------------------
Expenses:
Sales, marketing and
services to
licensees 241,577 254,494 476,534 525,259
Research, software
development and
support services 1,137,253 1,362,066 2,352,422 2,469,882
General and
administrative 543,962 323,022 954,091 681,814
Amortization 35,317 38,790 74,501 78,664
Transaction fees - - 554,407 -
Restructuring 113,533 - 113,533 -
-----------------------------------------------------
2,071,642 1,978,372 4,525,488 3,755,619
-----------------------------------------------------
Income before income
taxes 536,810 39,001 100,632 233,608
-----------------------------------------------------
Income tax provision
Current 230,580 26,133 94,178 110,858
Future 15,000 - 15,000 -
-----------------------------------------------------
245,580 26,133 109,178 110,858
-----------------------------------------------------
Net income (loss)
for the period 291,230 12,868 (8,546) 122,750
Retained earnings
(accumulated
deficit),
beginning of period (706,620) 52,216 (406,844) (3,547)
Repurchase and
cancellation of
common shares (49,109) (102,522) (49,109) (156,641)
Retained earnings
(accumulated
deficit), -----------------------------------------------------
end of period $ (464,499) $ (37,438) $ (464,499) $ (37,438)
-----------------------------------------------------
-----------------------------------------------------
Net income (loss)
per share:
Basic $ 0.02 $ 0.00 $ (0.00) $ 0.01
-----------------------------------------------------
-----------------------------------------------------
Diluted $ 0.02 $ 0.00 $ (0.00) $ 0.01
-----------------------------------------------------
-----------------------------------------------------
Weighted average
number of common
shares outstanding:
Basic 13,228,098 13,039,765 13,232,682 13,057,057
-----------------------------------------------------
-----------------------------------------------------
Diluted 13,679,352 14,029,250 13,232,682 14,021,986
-----------------------------------------------------
-----------------------------------------------------
PARLAY ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in whole U.S. dollars)
Three-Months Ended Six-Months Ended
------------------ ----------------
June 30 June 30
------- -------
2008 2007 2008 2007
----------------------------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Cash flows from
operating
activities:
Net income (loss)
for the period $ 291,230 $ 12,868 $ (8,546) $ 122,750
Adjustments to
reconcile net
income to net
cash provided
by operating
activities:
Stock option
expense 106,145 26,939 141,281 60,397
Amortization 35,317 38,790 74,501 78,664
Future income
tax provision 15,000 - 15,000 -
Changes in non-cash
working capital
items:
Accounts receivable 379,312 (53,580) (88,730) (554,362)
Prepaid expenses,
deposits and
other assets 47,277 (6,053) (4,712) 6,893
Accounts payable
and accrued
liabilities (197,784) 256,107 (380,002) 24,429
Income taxes
recoverable 399,081 38,187 262,679 (685,313)
Deferred revenue 1,223,294 39,217 1,601,172 103,936
----------------------------------------------------
Net cash provided by
(used in) operating
activities 2,298,872 352,475 1,612,643 (842,606)
----------------------------------------------------
Cash flows from
investing
activities:
Purchases of
equipment (3,284) (19,300) (4,612) (41,987)
(Decrease) in
accounts payable
and accrued
liabilities related
to purchases of
equipment - (3,964) - (9,791)
----------------------------------------------------
Net cash (used in)
investing activities (3,284) (23,264) (4,612) (51,778)
----------------------------------------------------
Cash flows from
financing
activities:
Repurchase of common
shares (58,203) (116,717) (58,203) (179,791)
(Decrease) in
accounts payable
and accrued
liabilities
related to
repurchase of
common shares - - - (35,871)
----------------------------------------------------
Cash used for
repurchase of
common shares (58,203) (116,717) (58,203) (215,662)
Proceeds from
issuance of
common shares 6,760 4,667 45,760 5,417
----------------------------------------------------
Net cash (used in)
financing activities (51,443) (112,050) (12,443) (210,245)
----------------------------------------------------
Net increase
(decrease) in cash 2,244,145 217,161 1,595,588 (1,104,629)
Cash, beginning of
period 1,183,621 1,807,426 1,832,178 3,129,216
----------------------------------------------------
Cash, end of period $ 3,427,766 $ 2,024,587 $ 3,427,766 $ 2,024,587
----------------------------------------------------
----------------------------------------------------
Supplemental cash
flow activities:
Income taxes paid /
(received) $ (174,003) $ (13,554) $ (174,003) $ 793,670
----------------------------------------------------
----------------------------------------------------
Interest (received) $ (19,275) $ - $ (19,275) $ -
----------------------------------------------------
----------------------------------------------------(1) Management believes that EBITDA (earnings before interest, income taxes and amortization) is a useful supplemental measure of performance. However, EBITDA is not a recognized earnings measure under generally accepted accounting principles ("GAAP") and does not have a standardized meaning. Therefore, EBITDA may not be comparable to similar measures presented by other companies.
EBITDA is reconciled to net income as follows:
Three-Months Ended Six-Months Ended
------------------ ----------------
June 30, June 30,
-------- --------
2008 2007 2008 2007
-----------------------------------------------------
Net income (loss) $ 291,230 $ 12,868 $ (8,546) $ 122,750
Interest - - - -
Taxes 245,580 26,133 109,178 110,858
Amortization 35,317 38,790 74,501 78,664
-----------------------------------------------------
EBITDA $ 572,127 $ 77,791 $ 175,133 $ 312,272
-----------------------------------------------------
-----------------------------------------------------
Revenue $ 2,608,452 $ 2,017,373 $ 4,626,120 $ 3,989,227
-----------------------------------------------------
-----------------------------------------------------
% 22% 4% 4% 8%
-----------------------------------------------------
-----------------------------------------------------About Parlay Entertainment Parlay Entertainment Inc. is the world's leading developer and licensor of Internet and TV bingo solutions. As the inventor and holder of Internet bingo(2) patents, Parlay was the first company in the world to develop and deploy a commercial Internet bingo product. Parlay Bingo is available in both 75-number and 90-number versions and is complemented by a full suite of lottery and casino games. Our multi-player, multi-platform technology is used to power more online bingo sites than any other software provider in the world. Some of the world's best known brands use Parlay Bingo solutions, including Virgin, Yahoo!, Paddy Power, NetPlay TV and the St. Minver, TGN and BingoNexus bingo networks. Parlay's head offices are in Oakville, Canada with offices in Bridgetown, Barbados, and Valletta, Malta. For more information on Parlay solutions and services, please visit our website at www.parlaygroup.com. This document may contain statements about expected future events and/or financial and operating results of Parlay Entertainment Inc. that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. (2) United States Patent No. 6,585,590, Canadian Patents No. 2,340,152 and 2,618,843, with other Patent applications pending in other countries.
Contact: Contacts:
Parlay Entertainment Inc.
Scott White
CEO
(905) 337-6505
Email: swhite@parlaygroup.com
Parlay Entertainment Inc.
David Callander
CFO
(905) 337-6516
Email: dcallander@parlaygroup.com
Website: http://www.parlaygroup.com
Source: Parlay Entertainment Inc.
|  | ||||||||||||||
