MikeH
01-28-2003, 10:27 PM
Below is UBet's press release. Looks like it was issued today (Monday) after the close of the markets.
This is VERY positive for them. Basically, cash flow as measured by "EBITDA" means cash flow in (or out) from operations. Congratulations to UBet!
==================================
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Jan. 27, 2003--
Youbet.com, Inc. (Nasdaq:UBET - News), a leading online live event and wagering company, today announced that in the fourth quarter of 2002, the company produced the first cash flow positive quarter as measured by EBITDA in the 7 year
history of the company. The amount, $226,000, represents almost a $1 million improvement over the third quarter, 2002, and an over $4.5 million improvement over the fourth quarter, 2001.
Additionally, Youbet.com's annual handle increased 72%, from $95 million in 2001 to $163 million in 2002. The Company produced new handle records in three consecutive quarters of 2002; $40 million in the second quarter, $46 million in the
third quarter and $50 million in the fourth quarter. In 2002, Youbet passed the half billion dollar mark in wagers processed since accepting its first wager in 1997.
In an earnings call made at 2PM PST today, Chuck Champion, Youbet.com's President and CEO, said, "We entered 2002 with our monthly cash burn in the preceding year exceeding $500,000, carrying the content of less than 75% of the
significant racetracks on our proprietary website. We were unlicensed in our home state of California. We closed the year with positive cash flow in the fourth quarter, delivering every significant racetrack in the U.S., plus a multi-year license in California." Champion continued, "Our flash handle report for the month of January, 2003 projects that we will set another monthly record handle in the range of $19 to $20 million. This exceeds our previous record of $17 million. I feel comfortable reporting to our investors, clients and industry friends that Youbet's turnaround is in
place and that management believes that our competitive positioning and financial improvement will continue in 2003."
Champion cited several operational improvements for contributing to the dramatic improvement in operating results, including implementation of better customer
funding processes, the establishment of the Player's Trust and the fourth quarter rollout of a subscription fee as initiatives that were responsible for the growth in revenues, and extraction of additional efficiencies in personnel and vendor expense.
Youbet.com's CFO, Gary Sproule, noted that the following results were both preliminary and unaudited (in millions).
2002 2001 Improvement
Handle $163.0 $95.0 $68.0
Net Revenue $10.2 $5.8 $4.4
Operating Expenses $13.0 $17.4 $4.4
EBITDA Loss $2.8 $11.5 $8.7
Net Loss $8.9 $14.8 $5.9
Sproule continued, "Fourth quarter 2002 net revenue (after our cost of sales) increased to $3.2 million, compared to revenue of $1.4 million in the fourth quarter of 2001. This substantial rise in quarterly revenue was due mainly to an increase in the amount of wagers placed by Youbet.com customers at our Oregon wagering hub, which was opened in September 2001. Fourth quarter total operating expenses were $3.0 million compared to $5.9 million in the fourth quarter of 2001. In the fourth quarter, 2001 we recorded a one time write off of $2.4 million due to the termination of various Nevada Gaming projects."
Sproule added, "Our EBITDA for the fourth quarter 2002 was a positive $226 thousand compared to a loss of $4.5 million in the fourth quarter a year ago. The Company's operating loss for the fourth quarter 2002 was $1.2 million compared to
an operating loss of $5.9 million in the fourth quarter, 2001. Net loss for the quarter was $1.3 million compared to a net loss of $5.5 million for the fourth quarter of 2001."
Commenting on Youbet.com's year-end 2002 balance sheet, Sproule continued, "As of December 31, 2002, Youbet had assets of $16.9 million, including $5.2 million in cash, cash equivalents, and restricted cash. Total liabilities were $8.9 million and our stockholders' equity totaled $8.0 million. Youbet's working capital position at year-end was a negative $2.5 million, an improvement of $300 thousand
over prior quarter ended."
To listen to a recording of the earnings conference call, go to the Youbet.com website and click on "About Youbet.com." www.youbet.com/aboutyoubet/
To be added to Youbet.com's investor e-mail list, please contact IvanRoth:
InvestorRelations@youbet.com.
About Youbet.com
To open an account, please visit http://www.youbet.com/ or call Member Services
toll free at 1-888-YOUBET8 (968-2388).
In the United States, Youbet.com provides network members the ability to watch and, in most states, the ability to wager on a wide selection of coast-to-coast thoroughbred and harness horse races via its exclusive closed-loop network.
Members have 24-hour access to the Youbet Network's features including live racing from a choice of over 80 racetracks representing all major racetracks, in the U.S., Canada and Australia such as Mountaineer, Churchill Downs, Hollywood
Park, Belmont Park, Delaware Park, Arlington, Pimlico, Oaklawn, Del Mar, Aqueduct, Saratoga, Santa Anita Park, Gulfstream Park and Golden Gate Fields. Other Network features include commingled track pools, live audio/video,
up-to-the minute track information, real-time wagering information and value-added handicapping products. Youbet Network customers enjoy live coverage from and wagering accessibility to all major racetracks in 39 states, representing virtually 100% of major horse racing content.
Youbet.com is a patent and content licensee and maintains a strategic relationship with TVG, an indirect subsidiary of Gemstar-TV Guide International, Inc. (Nasdaq:GMST - News) and also maintains a strategic relationship with MEC
Pennsylvania Racing, part of Magna Entertainment Corp. (Nasdaq:MIEC - News).
Youbet.com is an official online wagering platform of Churchill Downs Incorporated and the Kentucky Derby. Youbet.com operates Youbet.com TotalAccess(TM), an
Oregon-based hub for the acceptance and placement of wagers.
Forward-Looking Statements
Press releases issued by Youbet.com may contain forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expense, and other factors described in the Company's filing with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Note: You Bet is a registered trademark of Youbet.com, Inc. All other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.
Copyright (C)2003 Youbet.com, Inc. All rights reserved.
Contact:
Youbet.com, Inc.
Ivan Roth, 818/668-2100 (Investor Relations)
InvestorRelations@youbet.com
This is VERY positive for them. Basically, cash flow as measured by "EBITDA" means cash flow in (or out) from operations. Congratulations to UBet!
==================================
WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Jan. 27, 2003--
Youbet.com, Inc. (Nasdaq:UBET - News), a leading online live event and wagering company, today announced that in the fourth quarter of 2002, the company produced the first cash flow positive quarter as measured by EBITDA in the 7 year
history of the company. The amount, $226,000, represents almost a $1 million improvement over the third quarter, 2002, and an over $4.5 million improvement over the fourth quarter, 2001.
Additionally, Youbet.com's annual handle increased 72%, from $95 million in 2001 to $163 million in 2002. The Company produced new handle records in three consecutive quarters of 2002; $40 million in the second quarter, $46 million in the
third quarter and $50 million in the fourth quarter. In 2002, Youbet passed the half billion dollar mark in wagers processed since accepting its first wager in 1997.
In an earnings call made at 2PM PST today, Chuck Champion, Youbet.com's President and CEO, said, "We entered 2002 with our monthly cash burn in the preceding year exceeding $500,000, carrying the content of less than 75% of the
significant racetracks on our proprietary website. We were unlicensed in our home state of California. We closed the year with positive cash flow in the fourth quarter, delivering every significant racetrack in the U.S., plus a multi-year license in California." Champion continued, "Our flash handle report for the month of January, 2003 projects that we will set another monthly record handle in the range of $19 to $20 million. This exceeds our previous record of $17 million. I feel comfortable reporting to our investors, clients and industry friends that Youbet's turnaround is in
place and that management believes that our competitive positioning and financial improvement will continue in 2003."
Champion cited several operational improvements for contributing to the dramatic improvement in operating results, including implementation of better customer
funding processes, the establishment of the Player's Trust and the fourth quarter rollout of a subscription fee as initiatives that were responsible for the growth in revenues, and extraction of additional efficiencies in personnel and vendor expense.
Youbet.com's CFO, Gary Sproule, noted that the following results were both preliminary and unaudited (in millions).
2002 2001 Improvement
Handle $163.0 $95.0 $68.0
Net Revenue $10.2 $5.8 $4.4
Operating Expenses $13.0 $17.4 $4.4
EBITDA Loss $2.8 $11.5 $8.7
Net Loss $8.9 $14.8 $5.9
Sproule continued, "Fourth quarter 2002 net revenue (after our cost of sales) increased to $3.2 million, compared to revenue of $1.4 million in the fourth quarter of 2001. This substantial rise in quarterly revenue was due mainly to an increase in the amount of wagers placed by Youbet.com customers at our Oregon wagering hub, which was opened in September 2001. Fourth quarter total operating expenses were $3.0 million compared to $5.9 million in the fourth quarter of 2001. In the fourth quarter, 2001 we recorded a one time write off of $2.4 million due to the termination of various Nevada Gaming projects."
Sproule added, "Our EBITDA for the fourth quarter 2002 was a positive $226 thousand compared to a loss of $4.5 million in the fourth quarter a year ago. The Company's operating loss for the fourth quarter 2002 was $1.2 million compared to
an operating loss of $5.9 million in the fourth quarter, 2001. Net loss for the quarter was $1.3 million compared to a net loss of $5.5 million for the fourth quarter of 2001."
Commenting on Youbet.com's year-end 2002 balance sheet, Sproule continued, "As of December 31, 2002, Youbet had assets of $16.9 million, including $5.2 million in cash, cash equivalents, and restricted cash. Total liabilities were $8.9 million and our stockholders' equity totaled $8.0 million. Youbet's working capital position at year-end was a negative $2.5 million, an improvement of $300 thousand
over prior quarter ended."
To listen to a recording of the earnings conference call, go to the Youbet.com website and click on "About Youbet.com." www.youbet.com/aboutyoubet/
To be added to Youbet.com's investor e-mail list, please contact IvanRoth:
InvestorRelations@youbet.com.
About Youbet.com
To open an account, please visit http://www.youbet.com/ or call Member Services
toll free at 1-888-YOUBET8 (968-2388).
In the United States, Youbet.com provides network members the ability to watch and, in most states, the ability to wager on a wide selection of coast-to-coast thoroughbred and harness horse races via its exclusive closed-loop network.
Members have 24-hour access to the Youbet Network's features including live racing from a choice of over 80 racetracks representing all major racetracks, in the U.S., Canada and Australia such as Mountaineer, Churchill Downs, Hollywood
Park, Belmont Park, Delaware Park, Arlington, Pimlico, Oaklawn, Del Mar, Aqueduct, Saratoga, Santa Anita Park, Gulfstream Park and Golden Gate Fields. Other Network features include commingled track pools, live audio/video,
up-to-the minute track information, real-time wagering information and value-added handicapping products. Youbet Network customers enjoy live coverage from and wagering accessibility to all major racetracks in 39 states, representing virtually 100% of major horse racing content.
Youbet.com is a patent and content licensee and maintains a strategic relationship with TVG, an indirect subsidiary of Gemstar-TV Guide International, Inc. (Nasdaq:GMST - News) and also maintains a strategic relationship with MEC
Pennsylvania Racing, part of Magna Entertainment Corp. (Nasdaq:MIEC - News).
Youbet.com is an official online wagering platform of Churchill Downs Incorporated and the Kentucky Derby. Youbet.com operates Youbet.com TotalAccess(TM), an
Oregon-based hub for the acceptance and placement of wagers.
Forward-Looking Statements
Press releases issued by Youbet.com may contain forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expense, and other factors described in the Company's filing with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Note: You Bet is a registered trademark of Youbet.com, Inc. All other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.
Copyright (C)2003 Youbet.com, Inc. All rights reserved.
Contact:
Youbet.com, Inc.
Ivan Roth, 818/668-2100 (Investor Relations)
InvestorRelations@youbet.com