-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MzBayJbOloVTjWCYn9OuR2pAGEG+GoAylM/PuiwfLdlIPKB4yH4CVS6PZiQs2La5 bWvfWnNob4eKVSSGUBz0yw== /in/edgar/work/0000950130-00-006362/0000950130-00-006362.txt : 20001130 0000950130-00-006362.hdr.sgml : 20001130 ACCESSION NUMBER: 0000950130-00-006362 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001130 FILED AS OF DATE: 20001129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BID COM INTERNATIONAL INC CENTRAL INDEX KEY: 0001079171 STANDARD INDUSTRIAL CLASSIFICATION: [7389 ] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-14835 FILM NUMBER: 778336 BUSINESS ADDRESS: STREET 1: 6725 AIRPORT RD STE 201 STREET 2: MISSISSAUGA ONTARIO CITY: CANADA L4V 1V2 BUSINESS PHONE: 9056727469 MAIL ADDRESS: STREET 1: 6725 AIRPORT RD STE 201 STREET 2: MISSISSAUGA ONTARIO CITY: CANADA L4V 1V2 6-K 1 0001.txt FORM 6-K 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, 2000 Bid.Com International Inc. -------------------------- (Exact name of Registrant) 6725 Airport Road, Suite 201, Mississauga ON, Canada L4V 1V2 ------------------------------------------------------------ (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 __ - 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 - ________________________________________________________________________________ ________________________________________________________________________________ BID.COM INTERNATIONAL INC. On November 28, 2000, Bid.Com International Inc. ("Bid.Com") mailed to all registered shareholders its Third Quarter 2000 Report. 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 cash requirements. Forward-looking statements are subject to risks and uncertainties that may cause Bid.Com's results to differ materially from expectations. These risks include Bid.Com's ability to further develop its business-to-business and licensing businesses, Bid.Com's ability to develop appropriate strategic alliances and successful development and implementation of technology, acceptance of Bid.Com's products and services, competitive factors, new products and technological changes, and other such risks as Bid.Com may identify and discuss from time to time, including those risks disclosed in Bid.Com's most recent Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that Bid.Com's plan will be achieved. Exhibit 1. Third Quarter 2000 Report. 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 28, 2000 By: /s/ Mark Wallace ---------------- Name: Mark Wallace Title: Chief Operating Officer EX-1 2 0002.txt THIRD QUARTER 2000 REPORT Exhibit 1 [LOGO OF BID.COM] Bid.Com International Inc. 3rd Quarter Report 2000 6725 Airport Road, Suite 201 Mississauga, Ontario L4V 1V2 Tel: 905-672-7467 / Fax: 905-672-5705 www.bid.com (Nasdaq: BIDS, TSE: BII) Dear Shareholder, This past quarter marked an important milestone in the evolution of Bid.Com. As evidenced by our growing customer base and improved financial position, Bid.Com is well positioned for long-term success. Gross revenue in the third quarter 2000 totaled $1.7 million compared to $3.0 million in the second quarter of 2000 and $8.3 million in the third quarter of 1999. The decline in revenues reflects the ongoing implementation of Bid.Com's previously announced exit from the business-to-consumer arena. Effective October 24, 2000, a key phase of this transition was completed with the closing of Bid.Com's online retail operations. During the third quarter, Bid.Com entered into agreements with 14 new business customers. These agreements typically vary in duration from one to three years. Bid.Com expects that revenues associated with these agreements will begin to be realized in the fourth quarter of 2000. In its business-to-business model, Bid.Com typically recognizes revenues through implementation fees, monthly hosting fees, and a percentage share of transactions. New customers signed in the quarter included News International, Marine Max, Stereo Advantage, and iVenus. As a result of our business-to-business focus, a new metric has been introduced to gauge Bid.Com's success in the B2B sector. The new metric, "contract value", represents contractually committed revenues expected to be earned over the course of the underlying agreement, subject to normal business risks. Contractually committed revenues includes initial consulting and implementation fees, and monthly hosting fees. Contract value does not include any share of transactions that Bid.Com will receive as a result of its customers' on-line sales activities. In addition to its gross revenues of $1.7 million, Bid.Com generated $1.3 million in new contract value in the third quarter. When added to its existing deferred revenues of $3.1 million, Bid.Com has developed a cumulative contract value of $4.4 million. Including all non-operational items, Bid.Com reported net income for the quarter of $11.3 million or $0.21 per basic share. Excluding non-operational items, the net loss was $6.0 million, or $0.11 per basic share. This compares to a net loss of $7.1 million, or $0.13 per basic share, for the second quarter of 2000 and a net loss of $5.0 million, or $0.10 per basic share, for the same period in 1999. During the quarter, Bid.Com experienced a number of non-operational items that warrant highlighting: . We realized an accounting gain $20.7 million on the disposition of our of investment in Quack.com. In exchange for our shares in Quick.com, we received shares in America Online (AOL), which have been valued with an appropriate discount factor. . We recorded an adjustment of $573,000 2000. to reflect the market value of AOL shares at September 30, 2000 . To reflect the volatility of recent market conditions, impairment special provision for strategic we investments. recorded a $2.9 million Our working capital position at the end of the quarter was $24.6 million with $24.3 million available in cash and marketable securities. Our overall cash burn rate improved $600,000 over the previous quarter. The third quarter was a watershed for Bid.Com. Without any dilution to shareholder value, we significantly improved our liquidity as a result of the sale of our equity stake in Quack.Com. As our customer base grows and operational performance continues to improve, we believe that Bid.Com will become cash flow positive before the end of 2001. Yours truly, /s/ Jeff Lymburner Jeff Lymburner, President and CEO November 23, 2000 ================================================================================ Bid.Com International Inc. Consolidated Statement of Operations (expressed in thousands of Canadian dollars, except per share amounts) (Canadian GAAP, Unaudited) - --------------------------------------------------------------------------------
------------------------------------------------------------------------------------------- Three Months Ended Nine Months Ended ------------------------------------------------------------------------------------------- September 30 September 30 ------------------------------------------------------------------------------------------- 2000 *2000 1999 2000 *2000 1999 ------------------------------------------------------------------------------------------- (in US$) (in US$) ------------------------------------------------------------------------------------------- Gross revenue $ 1,669 $ 1,107 $ 8,330 $ 11,275 $ 7,482 $ 19,595 Customer acquisition costs/(A)/ - - - (157) (104) - ------------------------------------------------------------------------------------------- Net revenue 1,669 1,107 8,330 11,118 7,378 19,595 ------------------------------------------------------------------------------------------- Direct expenses $ 1,392 $ 924 $ 6,377 $ 11,164 $ 7,407 $ 15,886 General and administrative/(B)/ 5,436 3,607 3,205 14,067 9,334 8,481 Advertising and promotion/(B)/ 367 244 3,408 4,936 3,275 6,681 Software development and technology expense/(B)/ 260 173 273 985 654 750 Depreciation and amortization 270 179 245 760 504 425 Interest income (77) (51) (168) (382) (253) (531) ------------------------------------------------------------------------------------------- 7,648 5,076 13,340 31,530 20,921 31,692 ------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------- Loss from Operations $ (5,979) $ (3,969) $(5,010) $(20,412) $(13,543) $(12,097) =========================================================================================== Gain on disposal of strategic investments $ 20,697 $ 13,734 $ 20,697 $ 13,734 Provison for impaired strategic investments (2,865) (1,901) (3,295) (2,186) Revaluation of marketable securities (573) (380) (573) (380) ------------------------------------------------------------------------------------------- $ 17,259 $ 11,453 - $ 16,829 $ 11,168 $ - ------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------- Net Income/(Loss) $ 11,280 $ 7,484 $(5,010) $ (3,583) $ (2,375) $(12,097) =========================================================================================== Earnings/(Loss) per basic share $ 0.21 $ 0.14 $ (0.10) $ (0.07) $ (0.04) $ (0.25) =========================================================================================== Weighted average common shares 54,360 54,360 50,111 53,493 53,493 48,066 ===============================================================================================================================
September September December 31 ------------------------------------------------------------------------------------------- Balance Sheet Data 2000 *2000 1999 ------------------------------------------------------------------------------------------- (unaudited) (unaudited) (unaudited) (in US$) Cash $ 2,638 $ 1,750 $ 5,019 Marketable securities 21,634 14,356 16,478 Other current assets 3,822 2,536 6,495 Other assets 7,259 4,817 8,751 ------------------------------------------------------------------------------------------- Total assets $35,353 $ 23,459 $ 36,743 =========================================================================================== Current Liabilities $ 1,983 $ 1,316 $ 5,504 Short term and long term deferred revenue 3,121 2,071 2,254 Long Term Debt 72 48 Total shareholders' equity 30,177 20,024 28,985 ------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $35,353 $ 23,459 $36,743 ===========================================================================================
* Translated into US$ at = Cdn$ 1.5070 for convenience. ================================================================================ Bid.Com International Inc. Consolidated Statements of Cash Flows (expressed in thousands of Canadian dollars, except per share amounts) (Canadian GAAP, Unaudited) - --------------------------------------------------------------------------------
----------------------------------------------------------------- NET INFLOW (OUTFLOW) OF CASH Three Months Ended Nine Months Ended ----------------------------------------------------------------- RELATED TO THE FOLLOWING ACTIVITIES September 30 September 30 ----------------------------------------------------------------- 2000 *2000 1999 2000 *2000 1999 ----------------------------------------------------------------- (in US$) (in US$) ----------------------------------------------------------------- OPERATING Net loss for the period 11,280 7,484 (5,010) (3,583) (2,375) (12,097) Item not affecting cash: Non-cash customer acquisition costs/(A)/ 594 394 - 751 499 - Depreciation and amortization 270 179 245 760 504 425 Gain on Disposal of Strategic Investments (20,697) (13,734) - (20,697) (13,734) - Provision for Impaired Investments 2,865 1,901 - 3,295 2,186 - Revaluation of Marketable Securities 573 380 - 573 380 - Other non-cash - - - 173 115 - ----------------------------------------------------------------- (5,115) (3,396) (4,765) (18,728) (12,425) (11,672) Change in long term deferred revenue (345) (229) 361 319 212 361 Change in non-cash operating working capital items/(B)/ 321 213 80 (361) (240) (3,918) ----------------------------------------------------------------- (5,139) (3,412) (4,324) (18,770) (12,453) (15,229) ----------------------------------------------------------------- INVESTING Purchase of capital assets (618) (410) (100) (932) (619) (454) Purchase of strategic investments (218) (145) - (2,546) (1,690) - Acquisition of intangible assets (255) (169) (528) (562) (373) (574) Marketable securities/(B)/ (100) (65) 5,025 16,189 10,742 (3,113) ----------------------------------------------------------------- (1,191) (789) 4,397 12,149 8,060 (4,141) ----------------------------------------------------------------- FINANCING Capital Lease Obligation 133 88 - 133 88 - Issuance of common shares (net of expenses) (58) (38) 1,165 4,107 2,725 12,293 Issuance of special warrants (net of expenses) - - 16,047 - - 16,047 Special warrants receivable - - - - - 2,311 ----------------------------------------------------------------- 75 50 17,212 4,240 2,813 30,651 ----------------------------------------------------------------- Net cash inflow (outflow) during the period (6,255) (4,151) 17,285 (2,381) (1,580) 11,281 CASH, BEGINNING OF PERIOD 8,893 5,901 3,788 5,019 3,330 9,792 - ------------------------------------------------------------------------------------------------------------------ CASH, END OF PERIOD 2,638 1,750 21,073 2,638 1,750 21,073 ==================================================================================================================
(A) These costs reflect non-cash expenses incurred by Bid.Com in association with the attainment of certain B2B contracts. (B) Certain prior period amounts have been reclassified to conform to the current period presentation. (C) As of September 30, 2000 stockholders equity included (i) 54,568,468 common shares, (ii) 4,273,197 options to Directors, Officers and Employees convertible into 4,273,197 common shares, and (iii) 3,425,462 share purchase warrants exercisable into 3,425,462 common shares. * Translated into US$ at = Cdn$ 1.5070 for convenience
- -------------------------------------------------------------------------------------------------------- DIRECTORS OFFICERS Registrar & Transfer Agent CIBC Mellon Trust Company Pat Bourke (2) Jeffrey Lymburner PO Box 70390 Chairman CEO and President Toronto Station A Toronto, Ontario, Canada M5W 2X5 Jeffrey Lymburner Mark Wallace CEO and President, Chief Operating Officer Bid.Com International Inc. Auditors Deloitte & Touche LLP Jim Moskos Chartered Accountants T. Christopher Bulger/(1)(2)/ President, Toronto, Ontario, Canada President and CEO, Bid.Com Technologies Group eLab Technology Ventures Peter Sprukulis Lawyers Duncan Copeland/(3)/ Senior Vice President, Sales, Gowling Lafleur Henderson LLP President, Marketing and Business Toronto, Ontario, Canada Copeland and Company Development Baer Marks & Upham LLP New York, New York USA Paul Godin/(2)/ Rob Joynt Chairman, Vice President, The Art Vault Consumer Sales and Marketing Stock Exchange Listings Toronto Stock Exchange Symbol BII Jim Moskos John Mackie Nasdaq President, Vice President, General Counsel Symbol BIDS Bid.Com Technologies Group and Corporate Secretary Bid.Com International Inc. David Kirkconnell Web Sites David Pamenter/(3)/ Vice-President, www.bid.com Partner, Human Resources www.internetliquidators.com Gowling Lafleur Henderson LLP www.dutchauction.com David Pamenter Charles Walker/(1)/ Assistant Secretary Shares Outstanding CEO and President, (September 30, 2000) Walker Group Inc. Issued 54,568,468 Aidan Rowsome, Fully Diluted 62,267,127 Managing Director, Europe Ken Sexton/(1)/ Sr. Vice President and CFO, Hamish Sutherland Merant plc Managing Director, Australia and Asia Pacific Howard Koenig/(3)/ Chief Executive Officer Employeelife.com (1) Member of Audit Committee (2) Member of the Management Resources and Compensation Committee (3) Member of the Corporate Governance Committee OFFICES Bid.Com International Inc. Bid.Com USA, Inc. Bid.Com International Limited 6725 Airport Road 980 Ninth Street, 16th Floor 125 Lower Baggot Street Suite 201 Sacramento, California Dublin 2, Ireland Mississauga, Ontario 95814 USA Tel: 353-1-639-1135 Canada L4V 1V2 Tel: 916-449-9531 Tel: 905-672-7467 Bid.Com International Pty. Ltd. Bid.Com USA, Inc. Level 50, 101 Collins Street Bid.Com USA, Inc. 11 Penn Plaza, Suite 5029 Melbourne, Australia 3000 North Rocky Point Drive New York, New York Tel: 61 (03) 9653-9181 Suite 930 10001 U.S.A. Tampa Florida Tel: 212-946-2895 33607 USA Tel: 813-636-8205
Full copies of Bid.Com's Press Releases are available on the Investor Information Section of its website www.bid.com. This quarterly report 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 cash 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 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 Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that the Company's plans will be achieved. -----END PRIVACY-ENHANCED MESSAGE-----