FPN Announces Second Quarter Financial Results
Toronto, February 28, 2006 – Fifty-Plus.Net International Inc. today announced the financial results for its second quarter ended December 31, 2005. Net income for the second quarter ended December 31, 2005 was $43,456 compared to net income of $56,919 for the first quarter and $39,437 for the comparable quarter last year. Revenues of $238,148 for the quarter were up $27,362 from revenues of $210,786 for the first quarter and $31,445 ahead of revenues of $206,703 for the comparable quarter last year. Increased advertising revenues of $35,290 for the quarter versus the comparable quarter last year were tempered by a reduction of $3,845 in other revenues, primarily in commissions received from one major customer. Expenses for the quarter were $194,692 compared to $153,857 for the first quarter and $167,266 for the comparable quarter last year. This increase is primarily attributable to increased wages and benefits for new personnel hired in the second quarter to redesign the website and to increase revenues and profitability going forward. Emphasis has continued to be on very tight cost controls aimed at ensuring the Company’s viability long enough for its revenue-genering efforts to show results. Staffing levels have increased by three people from the first quarter and the comparable quarter last year. The Company continues to review all contracts with a goal of cost containment and further potential savings. Management’s continued focus on revenue generation and cost containment should further improve profitability in the months ahead in accordance with the Company’s business plan for fiscal 2006. According to the Interactive Advertising Bureau of Canada, online advertising revenues will top $500 million in Canada in 2005, This represents more than a 40% increase over online advertising revenues for 2004. ”This trend is certainly being felt at FPN. We’re seeing a steady stream of inquiries about our portfolio of Internet media,” says David Cravit, Senior Vice President, Marketing. “Advertisers and agencies are recognizing not only the size and attractiveness of the 50-plus market, but also the degree to which they are major users of the Internet.” Both the number of page views and unique visitors are increasing monthly as more visitors are attracted to the website. Management expects that revenues will continue to grow as the website traffic increases. As at December 31, 2005 the Company had cash on hand of $15,401 (June 30, 2005 – $19,269) and a working capital deficiency, excluding the current portion of deferred revenue, of $152,622 (June 30, 2005 – $241,758). Included in accounts payable and accrued liabilities of $320,557 (June 30, 2005 – $324,582) are amounts totalling $226,198 (June 30, 2005 – $226,198) due to senior management and the directors. On November 14, 2005, the Company obtained a line of credit of up to $400,000 from a private investor which will be used to re-capitalize the business. The line of credit is unsecured and bears interest at the rate of two percent per annum. As a condition of the financing, all current and past directors, as well as current and former officers of the Company and Fifty-Plus.Net Inc., the wholly-owned operating subsidiary, have agreed to forego any accrued management and directors fees totalling $226,198 that are deferred liabilities owed by the Company once $200,000 of the line has been advanced. On February 10, 2006, $200,000 of the line had been advanced and accordingly the third quarter will reflect the reversal of these fees. The complete financial statements may be viewed in the Investor Section of the Company’s website at www.50plus.com and on SEDAR at www.sedar.com. About Fifty-Plus.Net International Inc. Fifty-Plus.Net International Inc. owns 50Plus.com, the leading Canadian web portal providing unique content, community and commerce for people over the age of 50. 50Plus.com is the online home of CARP, Canada’s Association for the Fifty-Plus, the country’s largest 50-plus advocacy group with more than 400,000 members and of 50Plus magazine, Canada’s magazine for people over the age of 50, with readership of over 840,000. 50Plus.com is also an anchor partner with AOL Canada and Microsoft Canada for content directed at this audience. Fifty-Plus.Net International Inc. trades under the symbol FPN on the TSX Venture Exchange. Cautionary Statement on Forward-Looking Statements Certain statements made in this report are “forward-looking statements” which may include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe”, “anticipate”, “expect”, “estimate”, “project”, “will be”, “will continue” “will likely result” or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in filings by Fifty-Plus.Net International Inc. with provincial securities commissions. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. FOR MORE INFORMATION, CONTACT:Eric VengroffPresidentFifty-Plus.Net International Inc.(416) 363-8748 ext. [email protected] – 30 – The TSX Venture Exchange has not reviewedand does not accept responsibility for the adequacy and accuracy of this release.