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Guest-tek(TM) announces results for the three months ended September 30, 2009

^{Published on 2009-11-12 16:07:39 - Market Wire}
 

 - Installation of OneView Media and OneView Internet at the Marriott Bogota; - New contracts signed to provide OneView Media and Internet to the Planet Hollywood Towers by Westgate Resorts and the Viceroy Snowmass; - New contract signed to provide OneView Media to the Northern Quest Resort and Casino; - New contracts signed to provide the TownePlace Suites Charlotte Mooresville, Aava Whistler Hotel, and Courtyard by Marriott and Fairfield Inn Phoenix Chandler a high definition in-room entertainment system over coax lines; - Addition of OneView Internet in 4,839 rooms, with a total supported base of 427,889 rooms; - Addition of 1,279 OneView Media rooms, with a total service base of 9,585 rooms; - Revenue totaling $9.12 million during the quarter; - Net loss of $541 thousand; and - Adjusted EBITDA of $(321) thousand. (1) Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, gain or loss on sale of assets and stock based compensation expense and is provided to assist investors in assessing the Company's performance. Adjusted EBITDA has no standardized definition in Canadian GAAP and therefore may not be comparable to similar measures presented by other companies. Management believes that Adjusted EBITDA, in addition to net income, is a useful indication of performance and the Company's ability to generate cash from operations. Please see the reconciliation of Adjusted EBITDA to net income included in the Company's MD&A for the period ended September 30, 2008. 

 GUEST-TEK INTERACTIVE ENTERTAINMENT LTD. Consolidated Balance Sheets (Unaudited) September 30, 2009 and March 31, 2009 ------------------------------------------------------------------------- September 30, March 31, 2009 2009 ------------------------------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 3,914,413 $ 2,155,523 Accounts receivable 5,172,561 7,763,457 Installations in progress 1,960,300 1,526,987 Inventory 1,245,691 1,005,453 Prepaid expenses and deposits 737,906 1,024,083 ----------------------------------------------------------------------- 13,030,871 13,475,503 Property and equipment 3,035,276 3,461,605 Deferred costs 7,002,256 6,686,554 Intangible assets 3,663,947 3,807,750 ------------------------------------------------------------------------- $ 26,732,350 $ 27,431,412 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 5,057,482 $ 5,125,927 Customer deposits 2,520,513 2,474,822 Deferred revenue 2,306,238 2,121,226 Current portion of notes payable 1,485,822 1,771,644 ----------------------------------------------------------------------- 11,370,055 11,493,619 Deferred leasehold inducement 29,128 5,932 Deferred revenue 5,341,734 5,391,314 Future income tax liability 795,119 1,066,815 ------------------------------------------------------------------------- 6,165,981 6,464,061 ------------------------------------------------------------------------- 17,536,036 17,957,680 ------------------------------------------------------------------------- Shareholders' equity: Share capital 53,779,555 53,779,555 Contributed surplus 3,172,508 3,081,968 Deficit (47,755,749) (47,387,791) ----------------------------------------------------------------------- 9,196,314 9,473,732 ----------------------------------------------------------------------- ------------------------------------------------------------------------- $ 26,732,350 $ 27,431,412 ------------------------------------------------------------------------- ------------------------------------------------------------------------- GUEST-TEK INTERACTIVE ENTERTAINMENT LTD. Consolidated Statements of Operations, Comprehensive loss and Deficit (Unaudited) ------------------------------------------------------------------------- Three months ended Six months ended September 30 September 30 ---------------------------- ---------------------------- 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue (Note 6) 9,116,930 9,144,090 19,256,695 19,037,344 Cost of revenue 5,293,099 6,201,984 11,458,043 12,076,851 ------------------------------------------------------------------------- Gross margin 3,823,831 2,942,106 7,798,652 6,960,493 Operating expenses: Selling, general and administrative 2,665,308 2,558,519 5,437,711 6,297,605 Provision for contingency (Note 7) 1,000,000 - 1,000,000 - Research and development 162,474 247,345 409,950 448,500 Amortization of property and equipment 101,869 158,145 277,783 324,089 Amortization of intangible assets 131,512 169,185 275,443 339,471 Amortization of internally developed software 89,334 85,471 182,737 160,798 Loss on disposal of assets - 504,614 - 504,614 Stock based compensation 45,270 46,451 90,540 103,941 Interest expense 39,085 47,061 76,794 92,585 Foreign currency loss 422,342 118,214 704,643 188,911 ----------------------------------------------------------------------- 4,657,194 3,935,005 8,455,601 8,460,514 ------------------------------------------------------------------------- Loss from operations (833,363) (992,899) (655,949) (1,500,021) Interest income 169 1,835 633 4,399 ------------------------------------------------------------------------- Loss before income taxes (833,194) (991,064) (656,316) (1,495,622) Income tax expense (recovery) (292,672) 148,309 (288,357) 32,400 ------------------------------------------------------------------------- Net loss and comprehensive loss (540,522) (1,139,373) (367,959) (1,528,022) Deficit, beginning of period (47,215,227) (34,530,668) (47,387,790) (34,142,021) ------------------------------------------------------------------------- Deficit, end of period $(47,755,749) $(35,670,041) $(47,755,749) $(35,670,043) ------------------------------------------------------------------------- Net loss per share: Basic $ (0.03) $ (0.07) $ (0.02) $ (0.10) Diluted $ (0.03) $ (0.07) $ (0.02) $ (0.10) Weighted average number of shares: Basic 15,825,852 15,825,852 15,825,852 15,825,852 Diluted 15,825,852 15,825,852 15,825,852 15,825,852 ------------------------------------------------------------------------- -------------------------------------------------------------------------