Big Stick Media Corporation Announces the Closing of Its Las Vegas Handicapping Advisory Call Center
16 10월 2009 - 2:42AM
Marketwired
Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:
BSM) announces today that it has ceased the operations of its
wholly-owned subsidiary, National Sports Services (IGC), Inc.
("NSS"). NSS had been operating a call center for the sale of
handicapping advisory services.
In the three completed fiscal quarters of 2009, NSS accounted
for approximately 39% of BSM's consolidated revenue. While NSS had
generated net income of approximately $675,000 for the first three
quarters of fiscal 2009, this was due largely to the deferred
recognition of revenue in relation to cash receipts received during
the fourth quarter of 2008. As well, the company had realized a
material foreign exchange translation gain related to the
depreciation of the U.S. dollar versus the Canadian dollar.
However, NSS had not been able to achieve cash flow positive
results for any fiscal year since BSM had acquired the assets that
constituted the NSS business in November of 2006.
"In the three years that we have owned and operated the NSS
business, we have expended tremendous efforts to right-size the
business amidst a challenging economic environment that pressured
revenues", stated Christopher Kape, President and CEO. While we
succeeded in bringing the business close to cash flow breakeven, we
do not perceive that the necessary conditions exist to enable the
company to become a profit center within our consolidated group.
Accordingly, the decision has been made to systematically wind down
the call center business and to focus our handicapping efforts
within the online space via our website properties. We can now
dedicate enhanced efforts on our product development initiatives
within our Don Best information service division and improve the
Company's bottom line results in the process".
The Company will continue to explore opportunities to monetize
the remaining NSS assets over the coming weeks and to realize on
any remaining value. To the extent that we are successful in
consummating any such deal, we will disclose the relevant details
in a subsequent press release. Furthermore, if no such transaction
is available, we will consider retaining the assets to redeploy
them in a call center environment if and when improved business
conditions present themselves.
Additional information pertaining to BSM 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 and
publications. 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.
Contacts: Big Stick Media Corporation Christopher S. Kape Chief
Executive Officer (604) 630-6550 ext. 111
chris@bigstickmedia.com
Big Stick Media Corp (TSXV:BSM)
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Big Stick Media Corp (TSXV:BSM)
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