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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 November, 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 November 1, 1999, the Company announced its results for the third
quarter ended September 30, 1999. All figures are in Canadian dollars. As of
September 30, 1999, the exchange rate was Cdn$1.486 to US$1.00.
Revenue in the third quarter of 1999 increased 32.6% to $8.3 million
compared to $6.3 million in the third quarter of 1998 and a 33.3% increase
compared to $6.3 million in the second quarter of 1999. Revenues are derived
from merchandise sales and shipping revenue from products sold on www.bid.com
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and fees from the provision of Bid.Com's licensed technology and related
services.
The gross profit in the third quarter was $2.0 million, or 23.4% of
revenue, compared to a gross profit of $195,000, or 3.1% of revenue, in the
third quarter of 1998, and $1.3 million, or 20.3% of revenue, in the second
quarter of 1999.
Advertising and promotional expenses in the current quarter were $3.4
million, or 40.9% of revenues, compared to $3.3 million, or 53.1% of revenues,
in the third quarter of 1998. Compared to the second quarter of 1999,
advertising and promotional expenses increased by 83.2% from $1.9 million, or
29.8% of sales. The increase is primarily attributable to a more aggressive
promotional pricing strategy to maintain site traffic during the traditionally
slower summer months and other paid advertising. Other operating expenses in
the third quarter increased by 14.7% from $3.2 million in the second quarter of
1999 to $3.7 million in the third quarter of 1999. Other operating expenses
were $1.7 million in the third quarter of 1998. Approximately 10% of the
increase from the second quarter of 1999 to the third quarter of 1999 relates to
a one-time charge, with the balance related to an increase in depreciation,
amortization and software development.
The net loss for the third quarter of 1999 was $5.0 million, or $0.10 per
basic share, compared to a net loss of $4.8 million, or $0.23 per basic share,
in the comparable period of 1998 and a net loss of $3.6 million, or $0.07 per
basic share, in the second quarter of 1999.
During the quarter, the Company received $16.0 million (net of expenses) of
additional capital through issuance of special purchase warrants through a
private placement. The special warrants, consisting of a unit of one common
share and one share purchase warrant, were issued for $9.25. It was agreed among
the parties that the share purchase warrant be revised from a half warrant at
$12.00 to a full warrant at $10.00. Including cash of $29.9 million, working
capital at September 30, 1999 was $33.3 million compared to $21.6 million at
June 30, 1999. Total assets increased by $13.8 million or 48.9% over the 2nd
quarter 1999.
This Form 6-K 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. These include,
among others, statements about expectations of future revenues, cash flows and
capital requirements. 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
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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. Third 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: November 2, 1999 By: /s/ Paul Hart
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Name: Paul Hart
Title: Chief Financial Officer
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EXHIBIT 1
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>
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Three Months Ended Nine Months Ended
September 30 September 30
1999 1999 1998 1999 1999 1998
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(translated into (translated into
US$ at $US = US$ at $US =
Cdn$1.486 for Cdn$1.492 for
convenience) convenience)
<S> <C> <C> <C> <C> <C> <C>
Revenue $ 8,330 $ 5,606 $ 6,281 $ 19,595 $ 13,133 $ 13,676
-------------- ----------------- ------------- ---------- ----------------- ----------
Direct expenses 6,377 4,291 6,086 15,886 10,647 13,422
General and administrative 3,205 2,157 1,420 8,481 5,684 3,635
Advertising and promotion 3,408 2,293 3,334 6,681 4,478 8,902
Software development and expense 273 184 171 750 503 494
Depreciation and amortization 245 165 69 425 285 136
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13,508 9,090 11,080 32,223 21,597 26,589
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Interest income 168 113 9 531 356 37
Net loss ($5,010) ($3,371) ($4,790) ($12,097) ($8,108 ($12,876)
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Loss per basic share ($0.10) ($0.07) ($0.23) ($0.25) ($0.17) ($0.64)
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Weighted average common shares
outstanding 50,111 50,111 20,826 48,066 48,066 20,768
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<CAPTION>
Balance Sheet Data: September 30, September 30, December 31,
1999 1999 1998
(unaudited) (unaudited) (audited)
(in US$)
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<S> <C> <C> <C>
Cash and marketable securities $ 29,861 $ 20,095 $ 16,598
Other current assets 7,639 5,141 3,756
Other assets 4,464 3,004 693
Total assets $ 41,964 $ 28,240 $ 21,047
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Total current liabilities 4,599 3,095 2,425
Total stockholders' equity 37,365 25,145 18,622
Total liabilities and $ 41,964 $ 28,240 $ 21,047
shareholders' equity ======== ======== ========
</TABLE>
* Certain prior year amounts have been reclassified to conform to the current
period basis of presentation.
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