Fifty-Plus.Net International Inc.
TSX VENTURE : FPN

Fifty-Plus.Net International Inc.

May 30, 2006 14:51 ET

FPN Announces Third Quarter Financial Results

TORONTO, ONTARIO--(CCNMatthews - May 30, 2006) - Fifty-Plus.Net International Inc. (TSX VENTURE:FPN) today announced the financial results for its third quarter ended March 31, 2006.

Net income for the third quarter ended March 31, 2006 was $196,504 and for the year-to-date was $296,879 compared to net income of $56,919 for the first quarter, $43,456 for the second quarter, $78,024 for the comparable quarter last year and $153,694 for the comparable nine month period last year.

The Company recorded its best quarterly revenue in over eight quarters. This was largely due to an increased emphasis on driving more sales from display advertisers. The Company published a new online media kit that more effectively communicates the advertising opportunities to potential advertisers, advertising agencies and media buying companies. In addition, some new content has been added to complement offerings by some of our larger display advertisers, including a recipe section for big food advertisers and advertising that highlights "advertorial" content by pharmaceutical companies. Revenues of $271,227 for the quarter were up from revenues of $238,148 for the second quarter, $210,786 for the first quarter and $24,082 ahead of revenues of $247,145 for the comparable quarter last year. Revenues for the year-to-date were $720,161 compared to $650,648 for the same nine month period last year.

The Company completed the development of the software for the dating and relationships section of its website late in the quarter, and began accumulating user profiles. Although no revenue was attributed to the system in the third quarter, we are anticipating gradually increasing sales from this area, and initial levels of interest are positive indicators.

Expenses for the quarter of $279,417 are offset by a reversal of management fees in of $142,917 and directors fees of $61,777 that were previously accrued and that were cancelled as a condition of obtaining a line of credit as detailed below. This compares to $194,692 for the second quarter, $153,857 for the first quarter and $169,121 for the comparable quarter last year. Expenses for the year-to-date were $627,976 compared to $496,954 for the same nine month period 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.

As at March 31, 2006, the Company had cash on hand of $162,891 (June 30, 2005 - $19,269) and working capital (excluding the current portion of deferred revenue) of $191,386 (June 30, 2005 - a working capital deficiency of $241,758).

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 most past directors, as well as current and former officers of the Company and Fifty-Plus.Net Inc., its wholly-owned operating subsidiary, agreed to forego any accrued management and directors fees that are deferred liabilities owed by the Company once $200,000 of the line had been advanced. On February 10, 2006, $200,000 of the line had been advanced and accordingly the third quarter results reflect the reversal of $142,917 of management fees and $67,177 of directors' fees.

Although the Company recorded net income for the quarter of $196,504, working capital (excluding deferred revenue) increased from a working capital deficiency at the beginning of the quarter of $152,622 to positive working capital of $191,386, an improvement of $344,008 over the previous quarter. Of this amount, $100,000 is attributable to an increase in the loan payable while $97,588 is attributable to the proceeds, net of issuance costs, from the private placement of 1,000,000 units at $0.10 per unit.

The complete financial statements and accompanying Management's Discussion & Analysis for the quarter 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • Fifty-Plus.Net International Inc.
    Eric Vengroff
    President
    (416) 363-8748 ext. 237
    ericv@50plus.com