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Big Stick Media Corporation: Big Stick Media Corporation Announces Financial Results for the Quarter Ended May 31, 2009

^{Published on 2009-07-17 11:02:31, Last Modified on 2009-07-17 11:02:40 - Market Wire}
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2009) - Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:BSM) announces today its financial results for the quarter ended May 31, 2009.

For the quarter ended May 31, 2009, the Company incurred a net loss of $354,687 versus a net loss of $2,059,668 for the quarter ended May 31, 2008. The net loss figures includes various non-cash accounting items including amortization expense, stock option compensation expense, accredited interest expense, gains on asset dispositions and net foreign exchange gains and losses emanating from the movement of the U.S. dollar. As well, the 2008 comparative figures includes a significant one-time contract cancellation expense. Excluding the effects of the non-cash and one-time items as well as the ongoing cash interest expense, the modified EBITDA for the first quarter of fiscal 2009 was $680,000 versus $68,000 for the corresponding quarter of fiscal 2008.

The financial results for the quarter ended May 31, 2009 reflect the following pertinent information:

- The second quarter of the fiscal year approximately coincides with the end of the NBA basketball season. This quarter is traditionally strong from an accounting perspective since subscription packages as well as packages of advisory content sold at the beginning of football season and providing for service until the end of the basketball season continue to be recognized as revenue during the second quarter despite the fact that related marketing and sales commission costs have been expensed in previous quarters. As such, the modified EBITDA figure typically exceeds the cash generated from operations during the course of the first quarter.

- Cash flows within the Don Best division continued to show strength even after the conclusion of the lucrative football season. By contrast, the cash inflows within the Las Vegas call center that specializes in the sale of handicapping advice saw its volumes fall on a year-over-year basis as the effects of the weakening economy were brought to bear on the business.

- During the quarter, BSM raised new debt financing of US$800,000. These funds, in conjunction with cash generated from operations, enabled the Company to pay the second deferred purchase instalment in the amount of US$2,045,000 owing in respect of the Don Best Sports acquisition. Accordingly, the Company has now paid the entire deferred acquisition consideration of US$4,090,000 while only raising new debt of US$800,000. Such new debt is subject to repayment in 12 monthly instalments ending on April 30, 2010. The required instalments due on each of April 30, 2009 and May 30, 2009 were made as contemplated.

- On May 14, 2009 the shareholders of the Company approved a share consolidation in the ratio of 5:1. As a result, the 119,960,101 common shares outstanding on that date were adjusted to 23,992,020 consolidated shares.

"The second quarter of fiscal 2009 was a respectable one for BSM despite the challenging economic environment", stated Christopher Kape, President and CEO. "While sales volumes in our handicapping advisory business fell on a year-over-year basis, we have continued to reduce the overhead associated with this division. As well, the recently completed merging of our two Las Vegas offices will provide significant cost savings on a go-forward basis. Moreover, we have continued to dedicate free cash from operations toward debt retirement. As such, the quality of our balance sheet is much improved and we remain focused on our goal of becoming debt free within the next two years.

Inclusive of funds held within reserves required by the Company's payment processors, the balance sheet as at May 31, 2009 reflects aggregate cash of $1.374 million.

BSM is based in Vancouver, British Columbia and trades on the TSX Venture Exchange under the trading symbol "BSM". Additional information about BSM including the Company's unaudited consolidated financial statements and management discussion and analysis for the quarter ended May 31, 2009 is available under the Company's profile at [ www.sedar.com ].

As at the date hereof BSM has 23,992,020 issued and outstanding common shares.

About Big Stick Media Corporation

BSM owns and operates a portfolio of assets that provide fact-based and opinion oriented information relevant to the sports industry. These assets include websites, client-server software, publications and call centers. BSM generates revenues in a number of ways, including various direct to consumer services and direct to business sales through a portfolio of websites, the most significant of which are [ www.JimFeist.com ], [ www.donbest.com ], and [ www.g-picks.com ]. BSM also operates the Don Best Sports real-time sports information systems for serious sports enthusiasts, handicappers and bettors.

Cautionary Statement

This press release may contain certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Big Stick Media Corporation's expectations are various risks detailed from time to time in the filings made by Big Stick Media Corporation with securities regulations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.