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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
PURSUANT to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
Filing No. 1 for the month of July, 1999
Bid.Com International Inc.
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(Exact name of Registrant)
6725 Airport Road, Suite 201, Mississauga, ON, Canada L4V 1V2
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
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BID.COM INTERNATIONAL INC.
On July 28, 1999, the Company announced its results for the second quarter
ended June 30, 1999. All figures are in Canadian dollars. As of June 30, 1999,
the exchange rate was Cdn$1.4620 to US$1.00.
Revenue in the second quarter of 1999 increased 12% to $6.3 million
compared to $5.6 million in the second quarter of 1998 and increased 25% from
$5.0 million in the first quarter of 1999. Revenues are derived from
merchandise sales from products sold on www.bid.com and fees and related
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services from the licensing of the Company's proprietary technology.
The net loss for the second quarter of 1999 was $3.6 million, or $0.07 per
basic share, compared to a net loss of $4.8 million, or $0.25 per basic share,
in the second quarter of 1998. The Company posted a net loss of $3.5 million,
or $0.09 per basic share, in the first quarter of 1999.
Gross profit for the second quarter was $1.3 million, or 20.3% of revenue,
compared to gross profit of $34,000, or 0.6% of revenue, in the second quarter
of 1998. The gross profit margin more than doubled in the second quarter from
9.8% of revenue in the first quarter of 1999. The improvement in the gross
margin was substantially related to the increase in licensing fees and related
services as a percent of the Company's revenues.
Advertising and promotion expenses declined by 46% in the current quarter
to $1.9 million, or 30% of revenues, compared to $3.4 million, or 61% of
revenues, in the second quarter of 1998. Compared to the first quarter of 1999,
advertising and promotional expenses increased by 32% from $1.4 million, or 28%
of sales. Other operating expenses in the second quarter of 1999 were $3.2
million compared to $1.5 million in the second quarter of 1998 and $2.7 million
in the first quarter of 1999. The increase in other operating expenses from the
first quarter was due to several non-recurring items.
During the quarter, the Company received $3.8 million of additional capital
from the exercise of options and warrants as well as the issuance of additional
shares, as part of the acquisition of an interest in Point2 Internet Systems
Inc., an online listing service for construction, mining and other heavy
equipment. Working capital at June 30, 1999 was $21.6 million compared to $24.3
million as at March 31, 1999. As of June 30th, 1999, cash and marketable
securities were $18.7 million.
For the six months ended June 30, 1999, revenues increased 52% to $11.3
million from $7.4 million in the comparable period of 1998. The net loss for
the period was $7.1 million, or $0.15 per basic share, compared to $8.1 million
or $0.40 per basic share in the first six months of 1998. Jeffrey Lymburner,
President of the Company, noted that "we continue to target cash flow break
even by the fourth quarter of 1999 and $50 million of revenue for 1999."
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This Form 6-K includes comments that do not refer strictly to historical
results or actions and may be deemed to be forward-looking within the meaning of
the Safe Harbor provisions of the U.S. federal securities laws. These include,
among others, statements about expectations of future revenues and cash flows.
Forward-looking statements are subject to risks and uncertainties that may cause
the Company's results to differ materially from expectations. These risks
include the Company's ability to further develop its business-to-business and
licensing businesses, the Company's ability to develop appropriate strategic
alliances and successful development and implementation of technology,
acceptance of the Company's products and services, competitive factors, new
products and technological changes, and other such risks as the Company may
identify and discuss from time to time, including those risks disclosed in the
Company's amended Form 20-F filed with the Securities and Exchange Commission.
Accordingly, there is no certainty that the Company's plans will be achieved.
Exhibit 1. Second Quarter Financial Results
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BID.COM INTERNATIONAL INC.
Date: July 29, 1999 By: /s/ Paul Hart
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Name: Paul Hart
Title: Chief Financial Officer
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BID.COM International Inc.
Statement of Operations
(expressed in thousands of Canadian dollars, except per share amounts)
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(Canadian GAAP, unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
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1999 1999 1998 1999 1999 1998
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(translated into (translated into
US$ at $US = US$ at $US =
Cdn$1.462 for Cdn$1.462 for
convenience) convenience)
<S> <C> <C> <C> <C> <C> <C>
Revenue $ 6,250 $ 4,275 $ 5,577 $ 11,265 $ 7,705 $ 7,395
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Direct expenses 4,983 3,408 5,543 9,509 6,504 7,336
General and administrative 2,935 2,008 1,140 5,351 3,660 2,147
Advertising and promotion 1,860 1,272 3,428 3,273 2,239 5,568
Software development and expense 216 148 212 402 275 323
Depreciation and amortization 95 65 101 180 123 135
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10,089 6,901 10,424 18,715 12,801 15,509
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Interest income 262 179 17 363 248 28
Net loss ($3,577) ($2,447) ($4,830) ($7,087) ($4,848) ($8,086)
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Loss per basic share ($0.07) ($0.05) ($0.25) ($0.15) ($0.10) ($0.40)
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Weighted average common shares
outstanding 49,351 49,351 19,501 48,066 48,066 20,215
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June 30, June 30, Dec. 31,
Balance Sheet Data: 1999 1999 1998
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(unaudited) (unaudited) (unaudited)
(in US$)
Cash and marketable securities $ 18,732 $ 12,812 $ 16,598
Other current assets 5,922 4,051 3756
Other assets 3,548 2,427 693
Total assets $ 28,202 $ 19,290 $ 21,047
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Total current liabilities 3,039 2,079 2425
Total stockholders' equity 25,163 17,211 18622
Total liabilities and $ 28,202 $ 19,290 $ 21,047
shareholders' equity ======== ======== ========
</TABLE>
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