Business & Finance
Business and Finance
Business and Finance 
Fri, May 28, 2010
Thu, May 27, 2010
Bark Group Inc. Reports Financial Results for First Quarter 2010 and Highlights of Second Quarter
NEW YORK, NY--(Marketwire - May 27, 2010) - Bark Group Inc. (
Highlights of First Quarter:
Acquisition of 51% Interest in Anaconda TV GmbH
Effective March 31, 2010, the Company completed the acquisition of 51% interest in Anaconda.TV GmbH, a leading international television format and production company incorporated in Munich, Germany. Matthias Lange, a founder of Anaconda.TV, continues to hold the remaining 49% interest in Anaconda.
Anaconda produces TV formats for a number of TV stations in Germany and Europe, such as RTL, ZDF, as well as TV channels in the US, and specializes also in clips show as well as fiction and factual programs as well as the content for internet commercials. Anaconda's staff consists of seven people and a number of freelancers depending on the scale of production. Since approximately 70% of Europe has broadband Internet coverage, Bark Group plans to use Anaconda's capabilities for live production for their digital platform on the Internet as well as the production of commercials and product placement for television.
Increased Revenue and Cost of Revenue
Bark Group's revenues increased to $1,364,000 during the three months ended March 31, 2010, compared to $1,243,000 during the three months ended March 31, 2009, representing an increase of $121,000 or 10%. The increased revenue arises from projects for new customers. The Company anticipates further revenues from recurring projects for new customers.
However, cost of revenues rose to $1,052,000 for the three months ended March 31, 2010 compared to $878,000 for the three months ended March 31, 2009, an increase of $174,000, or 20%. The increased costs related to a change in management's allocation of salary expenses to cost of revenues and the reinstitution of salary cuts which were effective in 2009.
Decreased Net Loss and SG&A Expense
Net loss declined substantially to $302,000 for the three months ended March 31, 2010, compared to a net loss of $530,000 for the three months ended March 31, 2009, representing a decrease of $228,000. The main reason for the decrease was lower Selling, General and Administrative expenses. These expenses declined to $448,000 for the three months ended March 31, 2010, compared to $743,000 for the three months ended March 31, 2009, representing a decrease of $295,000.
Improved Working Capital
In addition, the Company reduced its working capital deficit from $5,809,000 at December 31, 2009 to $5,366,000 at March 31, 2010, a decrease of $443,000. The decrease was due mainly to the debt forgiveness $223,000 from related parties and from increased receivables from customers.
Further Developments
Investment banking services. On April 13, 2010, Bark Group announced it has engaged National Securities Corporation, an international full-service brokerage house headquartered in New York City, with the objective of securing additional financing for the company's strategy of building, through acquisition, a string of profitable media houses in the U.S. and Europe in the near future. The Company's strategy moving forward is to increase the size of its business through the acquisition of additional businesses in the industry, with the overall objective of increasing revenue and profits. It intends to finance these acquisitions with proceeds from the issuance of additional equity or debt. In 2010, it plans to pursue an equity financing in the amount $8 million.
Second acquisition. On May 4, 2010, Bark Group announced the completion of the acquisition of Tre Kronor Media AB, a Swedish media company recently named "Agency of the Year in Sweden." Tre Kronor is expected to have a large growth potential due to its numerous international and national clients such as Universal Music, bwin, F secure and Ticnet, Rusta, Bubbleroom, Bonnier Gaming, Bringwell, among others. In its three years of existence it has grown to become a million-dollar media buying business, hitting revenues of more than US$15 million in 2009.
Bent Helvang, Chairman of Bark Group, said, "We are pleased with our achievements in the First Quarter of 2010 and beyond, especially in light of the difficult market circumstances. We are extremely confident that our business model integrating advertising and media to create performance-based results is the wave of the future. Our two latest acquisitions, plus several key partnerships, have already given us a unique operating base, a highly talented staff, and substantial growth in customers and revenue. We have also retained a prestigious U.S. banking and financial firm to help us secure our financial base going forward. We believe we are well positioned for growth in the coming year."
About Bark Group Inc.
Bark Group Inc. is a pioneering U.S. communications company aiming to create a network of multiplatform media and advertising houses by acquiring profitable and innovative media and advertising companies in order to rapidly expand its presence in the U.S. and Europe. Through its growing network of companies, Bark is adding more competencies and media under one roof, expanding its customer and revenue base.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements; projected events in this press release may not occur due to unforeseen circumstances, various factors, and other risks identified in a company's annual report on Form 10-K and other filings made by such company.
For more information about Bark Group Inc. visit [ www.barkgroup.com ] or contact Stanley Wunderlich at (800) 625-2236, extension 7770, or [ info@cfsg1.com ].
Bark Group Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (In thousands of USD, except for per share amounts) 3 Months Ended March 31, -------------------------------- 2010 2009 --------------- --------------- Net revenues $ 1,364 $ 1,243 Cost of revenues (1,052) (878) --------------- --------------- Gross Profit 312 365 Selling, general and administrative expenses (448) (743) Depreciation and amortization (38) (47) Listing expenses (2) (13) --------------- --------------- Loss from operations (176) (438) --------------- --------------- Other income (expense), net: Loss from equity investment (18) - Interest expense (114) (138) --------------- --------------- Total other income (expenses), net (132) (138) --------------- --------------- Loss before income taxes and minority interest (308) (576) Net loss attributable to non-controlling interest 6 46 --------------- --------------- Loss available to common stockholders $ (302) $ (530) =============== =============== Loss per share Basic and diluted $ (-) $ (-) --------------- --------------- Weighted-average shares used to calculate net loss per common share: Basic and diluted 351,494,775 316,334,980 --------------- ---------------