NEW YORK, June 24 /PRNewswire-FirstCall/ -- The following is the earnings report including financial tables for CoActive Marketing Group, Inc.
CoActive Marketing Group, Inc. , a full-service marketing, sales promotion and interactive services company, reported financial results for its fourth quarter and full year ended March 31, 2008.
Charlie Tarzian, CoActive's President and Chief Executive Officer, commented, "Over the past eighteen months, we have successfully transitioned our business to the delivery of integrated marketing programs for sustaining clients and away from dependence on one-off events and promotions. Our success is evident by the growth in revenue from our core clients and the addition of important new clients with significant growth potential. The final three quarters of our fiscal 2008 showed the benefits of our shift in strategy as we replaced project-based revenue with recurring revenue, produced consistent profitability, and showed increasing rates of year over year growth. We expect that momentum to continue in our fiscal 2009."
Fred Kaseff, CoActive's Chief Financial Officer, added, "Our ability to build more relationship-based business helped reduce the event seasonality that traditionally impacted our fourth quarter. The result was a 33% increase in year-over-year Q4 operating revenue, and $594,000 operating income for the quarter ended March 31, 2008 vs. an operating loss of $1.4 million from our prior year's 4th quarter. That in turn helped us achieve a 50% year-over-year increase in fully diluted earnings per share, or $0.21 for our 2008 fiscal year, vs. $0.14 for the year ended March 31, 2007.
Operating Results - Three months and twelve months ended March 31, 2008 Sales:
For the three months ended March 31, 2008, the Company reported sales of $23.1 million, compared to sales of $19.3 million for the three months ended March 31, 2007, an increase of 20%, or $3.8 million. For the twelve months ended March 31, 2008, the Company reported sales of $85.5 million, compared to sales of $95.9 million for the twelve months ended March 31, 2007, a decrease of $10.4 million, as a result of several significant non-recurring projects in the first half of fiscal 2007.
Operating Revenue:
The Company believes that "operating revenue" is a key performance indicator. Operating revenue is defined as sales, less reimbursable program costs and expenses and outside production costs and other program expenses. Operating revenue is the net amount derived from sales to customers, which the Company believes is available to fund its compensation and general and administrative expenses, and capital expenditures. For the three months ended March 31, 2008, operating revenue amounted to $9.0 million, an increase of 33%, or $2.2 million over the $6.8 million reported for the three months ended March 31, 2007. For the twelve months ended March 31, 2008, operating revenue amounted to $34.9 million, compared to $35.0 million for the twelve months ended March 31, 2007
Operating Income, Net Income and Earnings per Share:
The Company reported operating income, net income and fully diluted earnings per share of $594,000, $71,000 and $.01 per share, respectively, for the three months ended March 31, 2008. This compares to an operating loss of $1.4 million, net loss of $711,000 and fully diluted loss per share of $.10 for the three months ended March 31, 2007. The Company reported operating income, net income and fully diluted earnings per share of $2.8 million, $1.5 million and $.21 per share, respectively, for the twelve months ended March 31, 2008. This compares to operating income of 2.0 million, net income of $1.0 million, and fully diluted earnings per share of $.14 for the twelve months ended March 31, 2007.
Balance Sheet:
The Company continues to work diligently toward eliminating its working capital deficit. At March 31, 2008, the Company's working capital deficit was $783,000, a $2.5 million improvement from its working capital deficit of $3.3 million at March 31, 2007. During the first quarter ended June 30, 2007, the Company repaid all bank loan obligations and has been operating without bank financing. On June 12, 2008, the Company signed a commitment letter with a commercial lender providing for a $5 million secured senior credit facility.
The Company will conduct a conference call at 4:30 p.m. Eastern Daylight Time today, Tuesday, June 24, 2008, to discuss its fourth quarter and full year results. The call will be hosted by Mr.Tarzian and Mr. Kaseff.
To participate in the call, investors should dial (866) 393-7581 conference id 52522868 ten minutes prior to the scheduled start of the call. An audio-only webcast of the call may be accessed on the Internet at http://www.videonewswire.com/event.asp?id=49311. For investors unable to participate in the live event, an archive of the webcast will be available at http://www.videonewswire.com/event.asp?id=49311 until the end of the month, and a taped replay of the call will be available for one week at (800) 642-1687, pass code 52522868.
This press release includes statements which constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Factors that could cause actual results to differ materially from the Company's expectations are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2008 under "Risk Factors," and include the risk that projected business opportunities will fail to materialize or will be delayed. The Form 10-K may be obtained by accessing the database maintained by the Securities and Exchange Commission athttp://www.sec.gov.
COACTIVE MARKETING GROUP, INC. Consolidated Statements of Operations Three and Twelve Months Ended March 31, 2008 and 2007 (Unaudited) (Audited) Three Months Ended Twelve Months Ended March 31, March 31, 2008 2007 2008 2007 Sales $ 23,137,998 $ 19,269,604 $ 85,522,692 $ 95,879,958 Operating income (loss) 594,455 (1,408,796) 2,847,121 1,986,671 Income (loss) from continuing operations before provision for income taxes 605,915 (1,395,498) 2,934,36 1,744,8871 Provision (benefit) for income taxes 534,501 (684,149) 1,447,525 572,012 Income (loss) from continuing operations 71,414 (711,349) 1,486,836 1,172,875 Loss from discontinued operations - - - (176,824) Net income (loss) $ 71,414 $ (711,349) $ 1,486,836 $ 996,051 Basic earnings (loss) per share: Income (loss)from continuing operations $ .01 $ (.10) $ .21 $ .17 Loss from discontinued operations - - - (.02) Net income per share $ .01 $ (.10) $ .21 $ .15 Diluted earnings (loss) per share: Income (loss) from continuing operations $ .01 $ (.10) $ .21 $ .16 Loss from discontinued - - - (.02) operations Net income (loss) per share $ .01 $ (.10) $ .21 $ .14 Weighted average number of common shares outstanding: Basic 6,950,706 6,859,751 6,935,806 6,837,533 Diluted 7,074,628 6,859,751 7,140,666 7,283,742 Consolidated Balance Sheets March 31, 2008 and 2007 (Audited) March 31, 2008 March 31, 2007 Total assets $ 37,670,075 $ 42,141,382 Total liabilities $ 25,681,642 $ 32,084,946 Total stockholders' equity $ 11,988,433 $ 10,056,436 Operating Revenue Schedule Three and Twelve Months Ended March 31, 2008 and 2007 (Unaudited) (Audited) Three Months Ended Twelve Months Ended March 31, March 31, 2008 % 2007 % 2008 % 2007 % Sales $23,137,998 $19,269,604 $85,522,692 $95,879,958 Reimbursable and other program costs and expenses 14,128,517 12,471,109 50,582,993 60,870,737 Operating Revenue $9,009,481 100 $6,798,495 100 $34,939,699 100 $35,009,221 100 Operating Expense 8,415,026 93 8,207,291 121 32,092,578 92 33,022,550 94 Operating Income (Loss) $594,455 7 ($1,408,796) (21) $2,847,121 8 $1,986,671 6 Operating Revenue Schedule
Three Months Ended December 31, 2007, September 30, 2007, and June 30, 2007
(Unaudited) December 31, % September 30, % June 30, % 2007 2007 2007 Operating Revenue $9,585,549 100 $8,530,765 100 $7,813,904 100 Operating Expense 8,300,968 87 7,181,282 84 8,195,302 105 Operating Income (Loss) $1,284,581 13 $1,349,483 16 ($381,398) (5) CMKG&GEN
