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
|