CMG reports fourth quarter earnings and potential sale of subsidiary company.WILMINGTON Wilmington. 1 City (1990 pop. 71,529), seat of New Castle co., NE Del., on the Delaware River and tributary streams, the Christina and the Brandywine; settled 1638, inc. as a city 1832. , Mass.--(BUSINESS WIRE)--Sept. 15, 1995--CMG Information Services See Information Systems. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CMGI CMGI Commonly Maintained Grounds Infrastructures CMGI College Marketing Group Information (Services) ) today announced that due primarily to investments in new business ventures, net income for the fourth quarter ended July July: see month. 31, 1995 decreased 90 percent to $40,000, or $.01 per share, compared to net income of $404,000, or $.09 per share for the same period in fiscal 1994. The loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the fourth quarter of 1995 included: an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. before taxes of $321,000 attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to CMG CMG Coastal & Marine Geology (USGS) CMG Chipotle Mexican Grill, Inc. (stock symbol) CMG Companion (of the Order Of) St Michael and St George CMG Computer Measurement Group @Ventures, the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the investment and development arm of the company; an operating loss before taxes related to Lycos (Lycos, Inc., Waltham, MA, www.lycos.com) One of the major Web search and content sites on the Web. In 2000, Lycos and Terra Networks, S.A., the leading provider of content and Internet access to the Spanish and Portuguese markets, merged to become Terra Lycos. Inc., and 80 percent owned subsidiary of the company of $87,000; and an operating loss before taxes related to FreeMark Communications (formerly Productview Interactive) of $258,000 which was included in other expenses. Exclusive of the above losses, income from continuing operations was up 17 percent or $62,000 from $362,000 in fiscal 1994 to $424,000 in fiscal 1995. Furthermore, the company's fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. services segment, SalesLink Corp., has been shown in the accompanying report of fourth quarter earnings in discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. as the company has decided to make it available for sale. Fourth quarter operating results before taxes for SalesLink were down 24.6 percent or $105,000 from $426,000 in fiscal 1994 to $321,000 in fiscal 1995. Net income for the fiscal year ended July 31, 1995, was $28,215,000 or $5.79 per share, compared with net income of $1,801,000 or $.46 per share for fiscal 1994. Net income resulted from income from continuing operations of $3,801,000, income from discontinued operations of SalesLink of $960,000, a loss from the discontinued operations of BookLink Technologies of $689,000 and a gain on the disposal of BookLink of $24,143,000. Commenting on the company, David S Wetherell stated, "The interactive future is now for CMG. As of today, we have made five strategic Internet-related investments or acquisitions positioning us to expand our products and services into the on-line arena. Investing in Internet opportunities has allowed CMG to position itself for a high rate of return on its excess cash as well as diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. and enhance its core business. For CMG to effectively dominate our Internet markets as they relate to direct marketing, we need to narrow our market focus. With this in mind, we have made a decision to sell SalesLink Corp., our fulfillment services segment. We have been approached by an interested buyer and expect to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. a deal by Oct. 31, 1995." Commenting further, Wetherell stated, "Our core operations in the list and list services segment continue to perform well. We have expanded our product base with the elementary and high school list and expect continued significant sales growth in that area in fiscal 1996. Our new database services entity CMG Direct Interactive (formerly ListLab) rounds out our service offerings, as it will be developing database technologies for interactive direct marketing. With this, CMG is better positioned to help our customers take advantage of new direct marketing opportunities afforded by the Internet." CMG Information Services Inc. develops and markets information-based products and services used primarily by publishers and mutual funds in direct marketing. CMG is recognized for providing its clients with a full range of mailing lists An automated e-mail system on the Internet, which is maintained by subject matter. There are thousands of such lists that reach millions of individuals and businesses. New users generally subscribe by sending an e-mail with the word "subscribe" in it and subsequently receive all new , computer fulfillment services. CMG also provides intellectual and financial capital to companies seeking to further the commercialization of the Internet and other interactive interactive media through its subsidiary CMG @Ventures. -0-
CMG Information Services Inc.
Report of Fourth Quarter Earnings
(In thousands except per share amounts)
Three months ended Year ended
July 31, July 31,
1995 1994 1995 1994
Net sales $ 2,700 $ 2,474 $11,207 $10,488 Operating income (loss) (183) 327 1,137 1,841 Other income (expense): Gain on sale of available for sale securities --- --- 4,781 --- Equity in loss of affiliate (258) --- (306) --- Other, net 199 35 366 41
Total (59) 35 4,841 41
Income from continuing operations before income taxes (242) 362 5,978 1,882 Income tax expense (benefit) (103) 122 2,177 714 Income from continuing operations (139) 240 3,801 1,168 Income from discontinued operations of SalesLink Corp., net of income tax expense 179 272 960 792 Loss from discontinued operations of BookLink Technologies Inc. net of income tax benefits --- (108) (689) (159) Gain from disposal of BookLink Technologies Inc., net of income taxes --- --- 24,143 ---
Net income $ 40 $ 404 $28,215 $ 1,801
Primary earnings per share: Income from continuing operations $ (0.03) $ 0.05 $ 0.81 $ 0.30 Income from discontinued operations of SalesLink 0.04 0.06 0.21 0.20 Loss from discontinued operations of BookLink --- (0.02) (0.15) (0.04) Gain from disposal of BookLink Technologies Inc., net of income taxes --- --- 5.14 ---
Total $ 0.01 $ 0.09 $ 6.01 $ 0.46
Weighted average common and common equivalent shares outstanding - primary 4,709,334 4,568,364 4,695,405 3,895,836 Fully diluted earnings per share: Income from continuing operations $ (0.03) $ (0.05) $ 0.78 $ 0.30 Income from discontinued operations of SalesLink 0.04 0.06 0.20 0.20 Loss from discontinued operations of BookLink --- 0.02 (0.14) (0.04) Gain from disposal of BookLink Technologies Inc., net of income taxes --- --- 4.95 ---
Total $ 0.01 $ 0.09 $ 5.79 $ 0.46
Weighted average common and common equivalent shares outstanding - fully diluted 4,860,989 4,568,364 4,871,893 3,900,444 CONTACT: CMG Information Services Inc. Mark D. Gagne Gagne or Gagné is a surname, and may refer to:
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