June 19, 2000 06:10am
New Frontier Media Reports Record Fourth Quarter and Year End Results
Source: New Frontier Media, Inc.
by: Company Press Release
BOULDER, Colo., June 19 /PRNewswire/ -- New Frontier Media, Inc. (Nasdaq: NOOF - news), a leader in the electronic distribution of adult entertainment, announced record year end results for its fiscal year ended March 31, 2000 (``fiscal 2000''). Net revenue was reported as $48.0 million for the year ended March 31, 2000 compared to $30.2 million for the year ended March 31, 1999 (``fiscal 1999''), an increase of 59%. For the year, EBITDA (earnings before interest, taxes, depreciation and amortization) was reported as $3.4 million in fiscal 2000, including corporate overhead, compared to an EBITDA loss of $4.6 million for the prior year. (Excluding corporate overhead, the Company reported EBITDA of $5.2 million for the year compared to an EBITDA loss of $3.6 million for the prior year.) Net income was reported as $1.1 million for the year compared to a net loss of $5.8 million in the year ago period. Earnings per share were reported as $0.06 per basic share, or $0.05 per fully diluted share, compared to a loss of $0.44 per basic and fully diluted share a year ago.
The acquisition of the Company's Internet subsidiaries in October 1999 was accounted for using the pooling of interests method. Accordingly, the financial results reflected in the Company's Form 10-KSB report includes a full year of financial results for these entities for both fiscal 2000 and 1999.
``Fiscal 2000 represented the completion of substantially all of the build out required to accelerate growth and expand distribution both domestically and internationally,'' stated Mark H. Kreloff, President and CEO. During the year the Company made material changes to its infrastructure through the relocation of its C-Band broadcast facility and inbound call center to its Boulder, Colorado offices as well as upgrades to its existing technology infrastructure. In addition, the Company completed a substantial acquisition in Internet commerce acquiring both engineering expertise and market share. The acquisition of three related companies (Interactive Gallery Inc., Interactive Telecom Network, Inc. and Card Transactions, Inc.) added key marketing and content distribution expertise; Internet/Broadband services and engineering expertise; and transaction processing and merchant account management experience.
During the current fiscal year, the Company plans to include expand its programming and Internet presence both domestically and internationally, leveraging its technology infrastructure as a means of delivering content. ``Part of our strategy includes pursuing international opportunities. Our focus will be on expanding into Europe and Latin America,'' explained Kreloff. He went on to say, ``The reality of recent moves by credit card companies to tighten fraud and charge-back parameters for Internet transactions is beginning to create numerous acquisition opportunities in the Adult Internet market. We expect that the present credit environment, which we anticipated and have carefully planned for, will create an opportunity for us to realize our Internet consolidation strategy.''
``We also plan to continue to increase the distribution of our television networks. We now offer our cable and DBS affiliates six networks with a variety of editing standards. As a result, we fully expect to double our addressable subscriber count by the end of the calendar year,'' Kreloff said. The Company recently reported that its programming was available to 9.1 million addressable subscribers at March 31, 2000, an increase of 264% over March 31, 1999.
Fourth Quarter Results
The Company reported $13.9 million in net revenue for the fourth quarter ended March 31, 2000 compared to net revenue of $8.4 million for the year ago period, an increase of 65%. EBITDA for the fiscal 2000 fourth quarter was $1.9 million compared to an EBITDA loss of $2 million for the fourth quarter of fiscal 1999. Net income was reported as $1.6 million for the quarter compared to a net loss of $2.5 million. Earnings per share for the quarter was reported as $0.09 per basic share and $0.08 per fully diluted share compared to a loss of $0.18 per basic and fully diluted share a year ago.
The Condensed Statement of Operations should be read in conjunction with the Company's Form 10-KSB which has been filed with the Securities and Exchange Commission. To obtain a copy, please contact Keely Hawk, V.P. Corporate Communications at New Frontier Media, Inc.
1. The acquisition of the Company's Internet subsidiaries in October 1999 was accounted for using the pooling of interests method. Accordingly, the financial results reflected in the Company's Form 10-KSB report includes a full year of financial results for these entities for fiscal 2000 and 1999.
2. Financial results for the three months ended March 31, 2000 and March 31, 1999 are unaudited.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of Securities & Exchange Act. The Company intends forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. These statements include, but are not limited to, estimated expansion of the Company's business both domestically and internationally, increases in addressable subscribers and planned Internet acquisitions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by these or other forward-looking statements. Please refer to the Company's filings with the Securities and Exchange Commission, including the most recent Form 10-KSB, for more detailed information about these and other factors that may affect actual results.
ABOUT NEW FRONTIER MEDIA, INC.
New Frontier Media, Inc. is a leader in the electronic distribution of adult entertainment with an unparalleled library of content. Through its television subsidiary, the Company distributes adult entertainment via pay-per-view and subscription cable/satellite video networks. Cable/DBS networks include Pleasure(TM), the most-edited standard available in the category; TeN, The Erotic Network(TM) and ETC, Erotic Television Clips(TM) which incorporate a partial-editing standard; and Extasy(TM), the least-edited standard.
Through its Internet subsidiaries, New Frontier Media designs, creates and implements Company-owned membership-based web sites for the adult Internet consumer markets. It also operates Internet traffic sales and acquisition programs for the adult webmaster community. In addition, the Company serves as a single source for a comprehensive range of high-performance Internet products and services, including transaction processing, dedicated access, web hosting, co-location, e-commerce application development, streaming media, and bandwidth management. New Frontier Media's network infrastructure enables the delivery of live and on-demand video events to millions of Internet users.
For more information contact Keely Hawk, VP Corporate Communications at (303) 444-0900, extension 145.