The Company's EBITDA loss from continuing operations (net loss from continuing operations excluding net interest and other income/expense, depreciation and amortization, equity consideration to Viacom and others and stock compensation expense) was $1.3 million, a 24% improvement compared to an EBITDA loss of $1.7 million in the third quarter of 2003, which excludes a write-down of e-commerce assets.
"The Company continues to move in a very positive direction, with improvements in all facets of our operations: increasing revenue, a decreasing net loss and the expectation of full year positive EBITDA for the first time in 2004," said Michael Levy, founder and CEO of SportsLine.com, Inc. "The growing adoption of our media sites and subscription products by both advertisers and users is solid evidence of the quality products we are producing."
SportsLine.com, Inc. Financial Highlights (in thousands, except per-share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Revenue $14,731 $14,032 $37,666 $34,886 Loss from operations $(8,290) $(12,078) $(26,729) $(34,472) Net loss $(8,304) $(12,145) $(26,708) $(35,265) Basic and diluted loss per share before discontinued operations $(0.18) $(0.28) $(0.61) $(0.84) Basic and diluted loss per share $(0.18) $(0.28) $(0.61) $(0.86) Weighted average shares outstanding 45,237 43,503 43,638 41,138 EBITDA loss $(1,325)(1) $(1,744) $(5,753)(1) $(8,571)
Additional Financial Highlights
Revenue
Operating Expenses
Balance Sheet
Recent Business Highlights
Fantasy Football Continues Strong Growth
Viacom Update
Class Action Securities Lawsuit Dismissed
About SportsLine.com, Inc.
SportsLine.com (Nasdaq: SPLN) is at the leading edge of media companies providing Internet sports content, community and e-commerce. As the publisher of CBS SportsLine.com and the official Web sites of the NFL, PGA TOUR and NCAA Sports, the Company serves as one of the most comprehensive sports information sources available, containing an unmatched breadth and depth of multimedia sports news, information, entertainment and merchandise.
Note: This press release contains forward-looking statements, which involve risks and uncertainties. SportsLine.com's actual results could differ materially from those anticipated in these forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, dependence on advertising revenues, which are difficult to forecast, the growth rate of the Internet, constantly changing technology and market acceptance of the Company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in SportsLine.com's Securities and Exchange Commission filings, including those discussed under the caption "Risk Factors That May Affect Future Results" in SportsLine.com's latest Annual Report on Form 10-K. SportsLine.com undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SportsLine.com has filed a proxy statement, and SportsLine.com and Viacom have filed other documents with the Securities and Exchange Commission concerning the proposed merger transaction. Holders of SportsLine.com common stock are urged to read the proxy statement and such other documents because they will contain important information. In addition, SportsLine.com and its directors and executive officers and other members of its management and its employees may be deemed to be participants in the solicitation of proxies from the shareholders of SportsLine.com with respect to the transactions contemplated by the merger agreement. Information about the directors and officers of SportsLine.com in the merger will be available in the proxy statement and other documents that SportsLine.com will file with the Commission. Investors can obtain a free copy of the documents filed with the Commission by Viacom and SportsLine at the Commission's website http://www.sec.gov. Investors can also obtain a free copy of the relevant documents filed by SportsLine.com by contacting Investor Relations at: 2200 W. Cypress Creek Road, Ft. Lauderdale, FL 33309, 954-489-4000 x5026 or online at http://www.sportsline.com/info/ir/. Investors can also obtain a free copy of the relevant documents filed by Viacom by contacting Investor Relations at: 800-516-4399, 1515 Broadway, New York, NY 10036.
SportsLine.com, Inc. Consolidated Statements of Operations (in thousands, except per-share data) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Revenue: Advertising and marketing services $10,162 $10,011 $30,575 $28,806 Subscription and premium products 4,569 4,021 7,091 6,080 Total revenue 14,731 14,032 37,666 34,886 Cost of revenue 5,692 5,587 14,039 14,289 Gross profit 9,039 8,445 23,627 20,597 Operating expenses: Sales and marketing: Consideration to Viacom for promotion 5,571 5,571 16,714 16,714 Other 4,638 5,960 13,666 16,345 General and administrative 6,286(1) 5,152 17,614(1) 15,603 Depreciation and amortization 834 1,040 2,362 3,607 Write-down of e-commerce assets -- 2,800 -- 2,800 Total operating expenses 17,329 20,523 50,356 55,069 Loss from operations (8,290) (12,078) (26,729) (34,472) Net interest and other income (expense) (14) (42) 21 (273) Loss from continuing operations (8,304) (12,120) (26,708) (34,745) Loss from discontinued operations -- (25) -- (235) Loss from sale of discontinued operations -- -- -- (285) Net loss $(8,304) $(12,145) $(26,708) $(35,265) Basic and diluted loss per share before discontinued operations $(0.18) $(0.28) $(0.61) $(0.84) Loss per share from discontinued operations -- -- -- (0.01) Loss per share from sale of discontinued operations -- -- -- (0.01) Basic and diluted loss per share $(0.18) $(0.28) $(0.61) $(0.86) Basic and diluted weighted average shares outstanding 45,237 43,503 43,638 41,138 EBITDA loss $(1,325)(1) $(1,744) $(5,753)(1) $(8,571)
Supplemental Financial Data (unaudited)
In order to fully assess the Company's financial operating results, management believes that EBITDA from continuing operations is an appropriate non-GAAP financial measure of evaluating the operating and liquidity performance of the Company, because it reflects the resources available for operating funds and strategic opportunities, including, among others, to invest in the business, make strategic acquisitions, strengthen the balance sheet and repurchase stock. However, EBITDA from continuing operations should be considered in addition to, not as a substitute for, or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with generally accepted accounting principles.
Three Months Ended Nine Months Ended (in thousands) September 30, September 30, 2004 2003 2004 2003 EBITDA loss reconciliation: Net loss $(8,304) $(12,145) $(26,708) $(35,265) Amortization of equity issued to third parties 5,807 5,950 17,421 17,849 Depreciation and amortization 834 1,040 2,362 3,607 Write-down of e-commerce assets -- 2,800 -- 2,800 Stock compensation expense 324 544 1,193 1,645 Loss from sale of discontinued operations -- -- -- 285 (Income) loss from discontinued operations -- 25 -- 235 Interest and other expense, net 14 42 (21) 273 EBITDA loss $(1,325) $(1,744) $(5,753) $(8,571)
Supplemental financial data related to gaming information operations, which the Company sold in 2003, is reflected as discontinued operations in the Company's consolidated statements of operations for the three and nine months ended September 30, 2003:
Three Months Ended Nine Months Ended (in thousands) September 30, 2003 September 30, 2003 Advertising and marketing services revenue $-- $188 Subscription and premium products revenue 277 1,205 Cost of revenue (236) (1,318) Sales and marketing expense (8) (135) General and administrative expense (58) (169) Depreciation and amortization -- (7) Interest income, net -- 1 Loss from discontinued operations $(25) $(235) SportsLine.com, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited) Nine Months Ended September 30, 2004 2003 Cash flows from operating activities: Net loss $(26,708) $(35,265) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 2,362 3,613 Equity consideration to third parties 17,421 17,849 Stock compensation expense 1,193 1,669 Other (168) (577) Loss on sale of discontinued operations -- 285 Write-down of e-commerce assets -- 2,800 Changes in assets and liabilities: Accounts receivable 1,522 (1,516) Prepaid expenses and other assets 496 (705) Accounts payable (449) 269 Accrued expenses (2,011) 390 Deferred revenue 13,583 11,634 Net cash provided by operating activities 7,241 446 Cash flows from investing activities: Purchases of available-for-sale securities (9,745) (13,810) Sales of available-for-sale securities 16,734 10,113 Purchases of held-to-maturity securities -- (3,292) Maturities of held-to-maturity securities 1,000 7,094 Purchase of property and equipment (1,747) (1,159) Purchase of license -- (250) Proceeds from sale of discontinued operations -- 1,460 Net change in restricted cash 238 197 Net cash provided by investing activities 6,480 353 Cash flows from financing activities: Proceeds from issuance of stock and exercise of employee options 183 151 Repurchase of common shares -- (521) Repurchase of restricted shares (110) (137) Net cash provided by (used in) financing activities 73 (507) Net increase in cash and cash equivalents 13,794 292 Cash and cash equivalents, beginning of period 2,485 17,383 Cash and cash equivalents, end of period $16,279 $17,675 SportsLine.com, Inc. Condensed Consolidated Balance Sheets (in thousands) September 30, 2004 December 31, 2003 (unaudited) (audited) Assets: Cash and cash equivalents $16,279 $2,485 Short-term marketable securities 14,819 16,943 Receivables, prepaids and other current assets 14,190 15,989 Total current assets 45,288 35,417 Non-current marketable securities 3,250 9,134 Property and equipment, net 5,426 5,563 Deferred advertising and content- CBS 5,143 6,857 Other assets 1,268 2,435 Goodwill 16,194 16,194 $76,569 $75,600 Liabilities and Shareholders' Equity: Current liabilities $31,937 $19,508 Long-term convertible notes 16,661 16,661 Other long-term liabilities 27,246 15,833 Shareholders' equity 725 23,598 $76,569 $75,600 Supplemental schedule of cash and marketable securities September 30, 2004 December 31, 2003 (unaudited) (audited) Cash and cash equivalents $16,279 $2,485 Short-term marketable securities 14,819 16,943 Non-current marketable securities 3,250 9,134 $34,348 $28,562
For further information, contact: SportsLine.com Inc. Corporate Communications (954) 489-4000
|