Eterna Therapeutics (ERNA) 6 Mar 182017 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Q4 2017 NTN Buzztime Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we’ll conduct a question-and-answer session, and instructions will follow at that time. [Operator instructions] As a reminder, the conference is being recorded. I would now like to turn conference over to Kirsten Chapman, LHA Investor Relations. begin. may you Ma’am,

Good NTN thank full Buzztime’s call results Bryan. us year for today conference webcast. for fourth and afternoon you, you and joining XXXX Thank quarter and

and us CFO, remarks, Joining will call the questions. open CEO, are Ram we Allen After the today Wolff. prepared for Krishnan;

the reason. go obligation any is Ram Krishnan. revise for or to current forward-looking by or ahead, Company’s turn in uncertainties Before filings. and shown about the this is projections expectations. no materially property to and new other the games call or ability consumer this uncertainties and expressed forward-looking the rapidly future nature competitive the on results consumer Ram. historic and call, Company around pleasure we but based interactive ownership to and products, implied risks public Company’s plans. cause formerly could to services, remind statements unknown undertakes are may to or call. include cause over management actual other law, changing Such actual during let that results technology, and and update me statements and in Potential Except introduce any customer the based results streams the more are described subject other different now Please enforcement game and of expectations revenue known that industry, to or as and of and acceptance the make call required any differ risks, begin, statements may The to intellectual limited to Company’s during entertainment that you information the SEC successfully conference forward-looking platform adoption not factors results my from statements publicly and the be conference of related materially It the to are

us for and you, today. all Kirsten, thank you joining Thank

with Wings Wild to other in and will from is be from they the meeting D.C. to This first speaking annual large tablets Buffalo the we’re our Washington owners here all kickoff We’re new which you the new audience meeting presenting the here upgrading. stores with

changes, management the and team the of building. the But the start are they relationships building let’s owners have with first, As summary been we with year.

continued from have to while rose XX%, expansion on to for growth. reached deliver in EBITDA $XXX,XXX We XXXX XX% XXXX. XXXX, margin from investing in margin million, and up and up $X.X long-term gross profitability,

our the fourth consecutive quarter seventh of In quarter fact, represents positive EBITDA.

NFC and the like. and then, our In Apple and review in Since near Buffalo we EMV the near rollout and more Allen begin In progress, with for first live, Wild a While first Minnesota operational detail feedback to December, work integration will location order batch swipe, in We Wings. tablets California our on completed Buffalo out Pay, at I then Pay locations, few of starting and Wild XX quite quarter, our headquarters; go rolled January Android into magnetic went we to went location in Southern we headquarters. will with minutes, required new more much the payment. in positive. second the the of delivered was fourth first capabilities Wings

impact But, turbulence. Wings However, know, of over we of has months. past as the B-Dubs Wild you XX not many the have through changes Buffalo been the numerous escaped

and hurdles, Buzztime proving their our value way. enhancing along the repeatedly have the surmounted We offering

XXXX, again this and Then Wings was for tablet the in won payment again spring instance, our B-Dubs and and competitive a of XXXX platform in Wild order Buffalo we the management For changed reapproved when XXXX, contract. the of in summer of test again. fall

of including of acquired hold, our lengthened More many on rollout. program have us, Roark this obstacles the order those frustrating Capital we all after have and provide in and recently, of value in we over for customer. to put each the programs implementation and the been the are B-Dubs pay confident Arby’s, February, are prevailed time the pauses Buzztime While has B-Dubs

remains and we their is corporate as alike. over Buzztime locations know and at franchisees heard both here the to all Our how embedded B-Dubs it at from entertainment conference over we’ve experience critical stores guest and

thoughtful long could Although, with and it new to as their management the track, professional get back encouraged months we’re take long and as working by process. six are on

the their see acquisition In to new Brands, as more than fact, a several Inspire important and more opportunity. to company new add called launch our as ever we this patient intends Inspire as they’ll chain portfolio they brands is opportunities. new

investments and the years mind other market and our broader expand the in few sale been past have long-term with to growth verticals. potential over Our to market growth made

rich our by directly have been sale, assets point industries. both of analytics, our the a order second evaluating value [ph] we as experiences of The to opportunities we of brands. noticed and new in hard has and that tablet, license entertainment, Now, integrated players software pay and platform other our delivers resell own platform, case half earnest services, surveys for other data interactive began XXXX, In with and in service. and

began hardware and reselling signed We January We to and our quarter gaming platform their our in operating our our for very both to of we This market. to several to fourth large and pleased contract system deliver have both are services first X-figure secured conversations leverage partner wants the thousands early tablets. and a their in services. win

deliver revenue recognize expect third XXXX. We tablets to between the and sometime second and quarter of

exciting customers, In and gaming to anticipate several opportunity contract. initial believe trivia And content. licensing Games content to sharing an our the partner upside scales. and follow-on We’re quarters, partnership tablet orders that recurring for with this which is also the working with for their we our opportunity that announced Scientific this revenue represents revenue license prior

across settings developed property retail in retail loyalty -- to single retail these plan casinos standalone their in We both local community. points. where the their properties also casino redeem serve tablets and tablet customers They unit market have in to to deploy the use

same casinos seeing and Scientific our first the are see also starting Games partnership. get our began as we’re progress to QX the few installation. the gaming awaiting bonus content sold We in in selling a contracts to licensing game to in trivia same

lot for there As a this growth is of partnership. with has organically. this room awareness progresses, The market platform gained

So, invitation the proactively Show technology New platform Federation York of promoted January our recently, for on the we more in National Retail partners. at an in one

and reselling been our of lot partners; growth and increases, evaluate it This potential a marketing our platform is chain helped our the the partner adds method value from received platform. our us. technologies. also term platform to Our area a supply focus as of good for helping integrated production Onto has and of always demonstrate long of interest was pricing. the volume added the which of an and for supplier sales benefit good with Growth

to sales it improving, offset site continues which has performance classic Although been attrition to tablet count. led be has by site lower

of Our at classic working customer Playmaker still of our XX% we’re and through our portion installed so base base. that year-end, represents

customer issues tablets, Over frankly the financial due that past stress; been tougher reasons: on learning and an quality four use; transition years, phases our of some other attrition and Customer worked experience. had has through impact we to variety to during has customer a

began into make and in their tablets to newer cases market way the Our XXXX.

products’ providing believe marketing and the teams. these can improvements, newer we mitigate improving we future recently into work to experiences. churn our So, done direct We to scale. channel is our better entered A and respect with consolidated as positioned equipment and of improve conjunction marketing our revamping we leadership with the XXXX sales we with generation quality sales expect In better in demand activities. that reorganized lot

some increased restaurant and that the While it group are number increase have significantly our online. spend, in social we industry started of required media media bar for promoting we content optimized and professionals, the outlets

to lower and You will make months. see industry. launch website products services appeal should broaden the we and expect easier to our in Long-term, the coming our install bar cost to and beyond new continue

bring and customers bar History our in the focused promotions our existing and such sweepstakes recent QX, football our in are Trivia promotion good to We continuing also to January, in as experiences smartest competition February. on

updates on partnership. our other Finally,

dealer anticipated. card the Our credit to distribution first integration and are been They hurdles note we efforts and of platform, we strong has multi-unit two our two recently which hampered Heartland process. implementation using sold network A slower new of pleased I’m quarter. with their the channel. conferences the installation on potential additional has than our had Regardless, to with penetrate been brands at around now presence their a drag in variety quarter and fourth very have the being process in a partnership technical dealer installed

they pipeline theCHIVE have of ad partnerships and that cultivate have seen grown. they to with variety continue relationship yield and delivered sales We a from we’ve

soon our partnerships to expand working our growth continue well. our we base installed all hope and we and potential several We have them should as that with on as to are announce

Now, I’ll turn to over Allen. call the

We year challenge invested last Thank you, was the for combat Let’s compared entitled the XXXX under end at to quarter. installation $X.X and XXXX. and fourth sites of quarter of X,XXX This $X To we to which X,XXX quarter ended had Ram. million, promotional sales-type compared in fourth of lease program XXXX, decline, of of included the in Revenue the more Go site arrangements. with sites revenue quarter a which total million a innovation.

from costs also XXXX. Let’s site multiple Fourth reached XXXX end which decreasing our and the $X.X the up acquisition network, XX% platform BEOND us program. million, designed $X.X of in costs about XX% XX% revenue At our related of year-end products at were of our count offer help excited to are We million enable progress direct to the quarter drive XXXX, will fourth which to in Go growth. included quarter from XXXX,

provider and the expenses quarter. quarter in prior prior million and increase In reduced than the lower million, year from margin freight period. addition, slightly XX% SG&A XX% decreased the the in expenses to were service $X year gross in deprecation $X.X helped

compared For of fourth net $XXX,XXX, a loss, or loss the $X.XX the quarter, was in loss per to $X.XX share $XXX,XXX a net share quarter loss XXXX. per fourth

the we mentioned, $XXX,XXX fourth in $XXX,XXX Ram EBITDA recognized year As period. down the from of quarter, in prior

quarter to $X.X XXXX. represents equivalents at report at $X.X our Xth million XXXX consecutive pleased with compared million and positive year-end delivering EBITDA. are December were cash that We Cash QX XX,

which Our of an payment-enabled at order report sheet equipment our million, balance includes tablets $X.X prior initial inventory to of from million increased year-end $X be which on installed, we site for level, of covenants commitment. with under West East Buffalo facility to Wings. at financial credit calculation FCCR the year-end. except our with We closed Bank our many XXXX Wild With regard our to all

the are current payable. and the the discussion, in of And we lender waiver obligations will from not facility lender this. expect do process due seeking We declare the a based the of on under

was capital resolved, primary is to working debt year-end to lender. $X.X have reclassified at negative this short be as West million, term and approximately compared until $X.X term. million East for long us to good However, XXXX. we Bank XX, a December a $X has of continues million partner XXXX

For was we compared XX%, from the expect sales-type XXXX. with reflects The reflects revenues period, hardware $XX.X lower $XX.X in million, for margin. lease to this we margin arrangement. XXXX our continue million revenue The design the and Gross and have full-year strong decrease was fewer under XXXX. improvements increase made and yielding installs subscription gross to increasing XX% in production,

loss share full-year, a the a million, $X.X was million $X.XX or loss share. net in a $X.X loss XXXX loss For of compared per $X.XX to net per

achieve delivered years was to not from made improvement improvements, growth progress XXXX in was has a EBITDA $X.X have negative improvement delivery manage that in In lenders innovation, I to cash $X.X to respect improvement progress product and $X.X relationship building execution, and customers, optimize over million XXXX, sustainability Please recall yet, million, and the to along flow am thus of with foundational profitability. have have in from made Full-year last cash suppliers $XX,XXX three the $XXX,XXX closing, a performance. team our prior of and XXXX. operations $X.X with with Full-year us innovation we year. proud we top-line our flow driven our sales operations $XXX,XXX and continue million million scalability. was an help from from EBITDA significant positive efforts consistent long-term While the

progress turn uncertain successfully to Ram. our call shareholder that continue value. navigating upon find to resilience I to ways will are and We with and believe now we build promise. circumstances the back succeed will I over that based

Thanks, Allen.

our with end. partner, brands brand, with potential, delivering focused, new as more we has into Wild multiple intention not customer more being partner stay our to creating called new Brands, The of company long Buffalo continue opportunities largest believe acquire trusted and I Wings through as created more value on We have become Inspire their that a their Arby’s navigate phases management. acquisition and for to this change stated portfolio. we term under a Arby’s change is They an parent patient creates to important and risk. a

other relationships, interest we’re patient new markets the remain building platform will control. and seeing the hardware costs, and our continue and effectively we other we remain management We with software, We’re licensed product quality players, gaming technology growth market. to very in how both excited potential. and our to ability remain go as on and we And takes improve about software focused from to

we’ve look the this progress making and business. We’re to accomplished pleased year forward what on with

at we hope will week meet please to questions. ROTH in Before we I Bar open Las call see would I open the there. be of at month. will the end And the the Show you note Vegas to like investors the and we with at & call to next Nightclub to Conference, Q&A, the Operator,

And Bill Partners. Instructions] the open. is from line from [Operator ROTH first Gibson now your Sir, question comes line our of Capital

Allen, didn’t -- East covenant? meet said Yes. with was you I you covenant, at What missed about year-end. that West the the one what

Charge to covenant, speak FCCR, was Bill, good The Ratio. you, Coverage Yes. with Fixed

got FCCR, it.

been mentioned that Do XXXX? you it the pick it’s and in up expect you steam brands up And picked Heartland two new Okay. to slow that you start.

Yes.

of like by their said, like presence they of processing was do I of been We that two quarter. some business in in acquired some from to look year delivering we’ve and Global -- our big, follow-on having these think there we I be those forward first was get had tablets getting Payments. first own will the sites of the felt show live. right we interest strong, first and is couple had at -- the on last I challenges the we one And believe getting their distractions

Wild if I Buffalo then, is delay six-month heard there Wings, And Good. a correctly, here…

they number you just a It as would months. is a pause are lot They management to putting they six I company, out upto and a priorities the initiatives. are range on -- bought think and I the up programs. to expect of of put sorting a pause big they

than be and prepared. whole just faster it could I important take prudent think it’s months. to It six a go and that could much

Yes.

slow first And inventory, you so, tablets what does or and down there? build or the your quarter do happens expect to that that in

Yes.

between roll we build-up an and our them of I the out alignment think which inventory. you’ll and see pace at deploy

you’ll So, balance and buy a on as on. have we’re pause, we we on come already as new roll inventory and the first deplete that out, sheet from inventory begin see the

And governed deploy. so we at will be by I which pace think the it

And Sir, of from line our Situations. next line Special the open. your from question Silverman Alex is now comes

new it win. you can sort first if -- detail Wondering guys. the And you’ve sounds sizable like win it of the give a any seven-figure sort us the not of, Hi, while. more in sound on had like does

Thanks excited. asking, very Alex. we’re Yes, for

the us platform in approach And tablet different are targets. and we they’ll in to fact great to a their potentially. their services. This of solved. is has we’ve needs potential follow-on that platform we orders adding unmet a fulfill of that platform a to time is and install it’s for a represents software there company deliver think problem that complete bunch their number on their testament base first top the that we leveraging deal, of from it growth and figure number a for market a it’s a that it’s have tablet had deliver has, to our services real of target to fully people their because a that built, think the market, have over opportunity seven our the exciting our an gaming And vertical, We leveraging

and will so, that And to platform content services them this we of license particular to be hope more some expect using customer ours organic deliver and their to too.

is? us give you their all what total a potential Can range at

tell range you that you, need -- growing top just a have on on field, the and have somewhere it’s just few should give of got think, they that think first XX,XXX growth a already They there between as have that’s the well. I And already what I’ll that’s order. that tablets I’ll replacement. I in market. we we’ve thousand be XX,XXX

would have a -- gaming this unless And might sale than that with rev them? technology one-time be the Great. you other share

That’s right.

So, I sell think similar be our initial to model to to will lease the sales them, type equipment revenue. type

and on. there for license or on for recurring growth. then, services the We follow-on expect model revenue for we revenue support, them for to orders content repairs, any will that be share us either with be ancillary from and And

no like seeing back for Ram would Instructions] to further I Krishnan, the remarks. turn currently any am [Operator call questions. I further And And to CEO,

Well, call. you ROTH great will investors, Like talk hope see the a joining you we thank we to meeting for and next you Have the everyone soon. And at said, day. Thank for be you I with week, we’ll questions. to there.

and now in conference. And great This concludes have disconnect. thank Ladies today’s day. you you may Everyone program. today’s for gentlemen, participating a