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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




































































































































































































































































































































































































































Nine Months Ended September 30, Three Months Ended September 30,

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2001

2000

2001

2000

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NET REVENUES

$ 37,373,358

$ 18,012,265

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$ 11,015,892

$ 8,029,020

COST OF REVENUES

23,461,824

6,374,119


6,402,640

3,494,409

Gross margin

13,911,534

11,638,146

4,613,252

4,534,611

OPERATING EXPENSES:

General and administrative

5,372,297

7,979,538


1,657,287

2,768,025

Selling and marketing

3,163,708

8,057,898

1,131,213

2,760,214

Salaries and benefits

9,335,295

8,364,459

3,111,715

3,203,955

Amortization of CBS advertising

14,571,835

14,855,465

4,761,771

5,479,561

Amortization of goodwill and intangibles

5,480,729

5,065,645


1,840,840

1,735,076

Depreciation and amortization

1,146,867

1,050,316

399,307

391,841

Reverse for closed stores and lease
termination costs

(289,801)

9,519

(236)

Total operating expenses

38,780,930

45,382,840

12,902,133

16,338,436

Operating loss

(24,869,396)

(33,744,694)

(8,288,881)

(11,803,825)

EQUITY IN EARNINGS – INVESTMENTS

899,060


2,099,865

422,426

845,906

OTHER INCOME (EXPENSE):

Interest expense

(285,518)

(280,269)

(50,443)

(91,851)

Interest income

104,052

78,382

24,722

5,767

Other, net

(147,596)

34,599

20,579

6,192

Loss before minority interest

(24,299,398)

(31,812,117)

(7,871,597)

(11,037,811)

MINORITY INTEREST

(266,671)


(276,996)

(164,674)

(124,141)

NET LOSS

$ (24,566,069)

$ (32,089,113)

$ (8,036,271)

$ (11,161,952)

Basic and diluted net loss per common share

$ (0.96)

$ (1.41)

$ (0.30)

$ (0.47)

Weighted average shares outstanding

25,646,794

22,838,794

26,571,807

23,583,009

NET LOSS

$ (24,566,069)

$ (32,089,113)

$ (8,036,271)

$ (11,161,952)

Add Back:

Amortization of CBS advertising – non-cash

14,571,835

14,855,465

4,761,771

5,479,561

Amortization of goodwill and intangibles

5,480,729

5,065,645

1,840,840

1,735,076

Depreciation and amortization

1,146,867

1,050,316

399,307

391,841

Interest, net

181,466

201,887

25,721

86,084

Equity in loss of investments of less then 50%
ownership *

523,937

173,165

217,770

130,386

401-K Match – non-cash

120,159

51,221

Options & warrants for services rendered –
non-cash

166,976

189,310

52,629

114,281

Other non-cash

170,593

22,362,562

21,535,788

7,349,259

7,937,229

ADJUSTED EBITDA LOSS

$ (2,203,507)

$ (10,553,325)

$ (687,012)

$ (3,224,723)

* Includes MovieTickets.com and Beach Wrestling
LLC.

Click here to see CONDENSED CONSOLIDATED BALANCE SHEETS

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