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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. 2 for the month of May, 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 May 13, 1999, the Company filed a press release reporting financial results
for the first quarter ended March 31, 1999. The press release is filed as an
exhibit to this Form 6-K.
Exhibit 1. Press Release issued May 13, 1999
2
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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: May 13, 1999 By: /s/ Paul Hart
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Name: Paul Hart
Title: Chief Financial Officer
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BID.COM International Inc.
6725 Airport Road, Suite 201
Mississauga, ON L4V 1V2
Tel: 905-672-7467 / Facsimile: 905-672-5705
Website: www.bid.com
(Nasdaq: BIDS, TSE: BII)
At The Company: At The Financial Relations Board:
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Paul Godin, Chairman and CEO Alison Ziegler - General Info.
E-mail: [email protected] Barbara Manley - Analyst Info.
Paul Hart, Chief Financial Officer Claudine Cornelis - Media Info.
E-mail: [email protected] (212) 661-8030
Jeff Lymburner, President
E-mail: [email protected]
FOR IMMEDIATE RELEASE
BID.COM REPORTS FIRST QUARTER RESULTS
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Revenues Up 176%, Advertising & Promotional Expenses Decline 34%
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Gross Profit Margin Improves to 9.8% of Revenue
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TORONTO, ONTARIO - May 13, 1999 -- Bid.Com International Inc. (Nasdaq: BIDS,
TSE: BII), one of North America's leading online auction companies, today
announced its results for the first quarter ended March 31, 1999. All figures
are in Canadian dollars. As of March 31, 1999, the exchange rate was Cdn$1.5092
to US$1.00.
Revenue in the first quarter of 1999 was $5.0 million compared to $1.8 million
in the first quarter of 1998 and $6.3 million in the fourth quarter of 1998.
The net loss for the first quarter of 1999 was $3.5 million, or $0.09 per basic
share, compared to a net loss of $3.3 million, or $0.17 per basic share, in the
comparable period of 1998 and a net loss of $5.8 million, or $0.18 per basic
share, in the fourth quarter of 1998.
Gross profit for the first quarter was $489,000, or 9.8% of revenue, compared to
gross profit of $36,000, or 1.4% of revenue, in the first quarter of 1998, an
increase of 1,258%. The gross profit margin increased nearly 300 basis points
from 6.9% of revenue in the fourth quarter of 1998.
Advertising and promotional expenses declined by 34% in the current quarter to
$1.4 million, or 28% of revenues, compared to $2.1 million, or 118% of revenues,
in the first quarter of 1998. Compared to the fourth quarter of 1998,
advertising and promotional expenses declined by 62% from $3.7 million, or 58%
of sales. Special pricing promotions, which the Company has employed in the
past to help build Bid.Com's brand recognition, were reduced by over 55% from
the fourth quarter. Other operating expenses in the first quarter of 1999 were
$2.7 million compared to $1.2 million in the first quarter of 1998. The largest
single increase of $368,000 is attributable to obtaining a Nasdaq listing. The
remainder of the increase is related to additional staff and facilities required
to support the Company's growth.
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Bid.Com International Inc.
Page 2
"The first quarter met our expectations both in terms of revenue and gross
margin," said Paul Godin, Chairman and CEO of Bid.Com. "More targeted
advertising and promotional spending has permitted a 62% expense reduction from
the December quarter. We were also able to grow our registered user base by 24%
over the last three months and continued to diversify away from lower margin
computer-related sales and introduced new product categories such as jewelry,
personal products and gift items."
Mr. Godin continued, "Bid.Com further differentiated itself from its competition
in the quarter with the receipt of a patent for our declining price (Dutch)
auction process. We believe this patent is a significant corporate asset with
global applications in both the consumer and business-to-business markets. With
auctions currently approaching 20% of online transactions, real time declining
price auctions are expected to evolve as a significant sector within the e-
commerce marketplace. In April, as part of our co-venture with American
Interactive Media we hosted the industry's first live video and audio auction
over the Internet, utilizing our patented auction technology. The successful
launch and the excitement created by the event will lead to regular live
auctions beginning later this month and bodes well for future applications
across both narrow and broad band, as we look to develop the next generation of
shopping channels."
Mr. Godin concluded, "We are extremely pleased with our accomplishments to date
in 1999, including our much anticipated listing on the Nasdaq National Market.
We recently received support from the Irish Development Agency for the upcoming
opening of our Dublin office that we will use as a base for our entry into
Europe. We also are actively building our business-to-business auction format
and are excited by the early response from organizations that recognize the
effectiveness of declining price auctions combined with rising price auctions
and fixed price database marketing capabilities. With our business-to-consumer
auction revenues as a base, we are building diversified revenue streams that
will include revenue from our emerging business-to-business auctions in addition
to the licensing of our proprietary technology."
During the quarter, Bid.Com received $12.1 million of additional capital through
the exercise of warrants and options. Working capital at March 31, 1999
increased by $6.4 million to $24.3 million, an improvement of 36% from December
31, 1998. As of March 31, 1999, cash and marketable securities were $22.1
million.
Bid.Com, founded in 1995, is one of the Internet's leading online auction sales
organizations, with offices in Toronto and Tampa, Florida. The company offers a
compelling, entertaining and cost-effective method of selling a wide array of
goods and services over electronic distribution channels. Bid.Com is
strategically positioned to leverage its business-to-consumer technological
leadership by offering the pre-eminent online auction platform for co-ventures
into business-to-business markets, licensing custom branded e-commerce solutions
and for distribution through broadband/cable media. The company's shares have
traded on The Toronto Stock Exchange since February 1998 and began trading on
the Nasdaq National Market in April 1999.
This news release may include comments that do not refer strictly to historical
results or actions and may be deemed to be forward-looking within the meaning of
the Safe Harbor provisions of the U.S. federal securities laws. Forward-looking
statements involve risks and uncertainties including successful development and
implementation of technology, acceptance of the company's products and services,
competitive factors, new products and technological changes, and other such
risks as the company may identify and discuss from time to time, including those
risks disclosed in the company's amended Form 20-F filed with the Securities and
Exchange Commission. Accordingly, there is no certainty that the company's
plans will be achieved.
(Financial Tables Follow)
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Bid.Com International Inc.
Page 3
BID.COM International Inc.
Statement of Operations
(expressed in thousands of Canadian dollars, except per share amounts)
(Canadian GAAP, unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
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1999 1999 1998
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(translated
into US$ at
US$1.000 =
Cdn$1.5092 for
convenience)
<S> <C> <C> <C> <C>
Revenue $ 5,015 $ 3,323 $ 1,818
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Direct expenses 4,526 2,999 1,793
General and administrative 2,416 1,601 962
Advertising and promotion 1,413 936 2,140
Software development and expense 186 123 156
Depreciation and amortization 85 56 34
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8,626 5,715 5,085
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Interest income 101 67 11
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Net loss $(3,510) $(2,325) $(3,256)
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Loss per basic share $ (0.09) $ (0.06) $ (0.17)
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Weighted average common shares
outstanding, basic 38,529 38,529 18,794
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March 31, March 31, December 31,
1999 1999 1998
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Balance Sheet Data: (unaudited) (unaudited) (audited)
(in US$)
Cash and marketable securities $22,119 $14,656 $16,598
Other current assets 4,551 3,016 3,756
Other assets 695 461 693
Total assets $27,365 $18,133 $21,047
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Total current liabilities $ 2,383 $ 1,579 $ 2,425
Total stockholders' equity $24,992 $16,554 $18,622
Total liabilities and stockholders' equity $27,365 $18,133 $21,047
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</TABLE>
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