CMG reports second quarter earnings.WILMINGTON, Mass.--(BUSINESS WIRE)--March 3, 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 income 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 second quarter ended Jan. 31, 1995 increased 21.1 percent to $472,000 or $0.15 per share, from $390,000 or $0.18 per share for the same period in fiscal 1994. Net income for the quarter, which included a loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of BookLink Technologies Inc. of $478,000 and a gain on disposal of BookLink of $24.1 million, was $24.1 million or $7.54 per share compared to $390,000 or $0.18 per share for the second quarter ended Jan. 31, 1994. Sales for the second quarter ended Jan. 31, 1995 increased 22.1 percent to $5.5 million compared to $4.5 million for the same period in fiscal 1994. Weighted average shares outstanding for the second quarter ended Jan. 31, 1995 and 1994 were 3,199,400 and 2,199,166 respectively. The increase in shares outstanding between the periods is a result of the company's public offering of common stock completed on Jan. 25, 1994. Income from continuing operations for the six month period ended Jan. 31, 1995 was up 33.9 percent to $1,199,000, or $0.37 per share compared to $896,000, or $0.41 per share, for the same period in fiscal 1994. Sales for the six month period were up 21.3 percent to $11.2 million versus $9.2 million in fiscal 1994. Weighted average shares outstanding for the six month periods ended Jan. 31, 1995 and 1994 were 3,218,643 and 2,164,534, respectively. As follows, the discontinued operations were due to the sale of CMG's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , BookLink Technologies Inc. to America Online See AOL. (AMER AMER American AMER Asociación Mexicana de Estaciones Radiodifusoras ). Discontinued operations reflect a loss from CMG's wholly owned subsidiary, BookLink Technologies Inc. and a gain on disposal of BookLink from its sale to America Online (AMER). On Dec. 23, 1994, 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 received 710,000 shares of AMER common stock in exchange for all outstanding BookLink common stock. The market value of the 710,000 shares of AMER common stock received by CMG on Dec. 23, 1994 was $38.2 million or $53.75 per share. As of the close of the market on March 2, 1995, the value of CMG's shares of AMER was $64.1 million, or $90.25 per share. Commenting on the second quarter, CMG president, David S. Wetherell, said "Sales growth at SalesLink (our 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) was exceptional, while sales of our new elementary and high school teacher's list at CMG were significantly higher than forecasted. Our overall operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. growth for the quarter was less than sales growth, as expected; due to investments in corporate infrastructure, specifically people and systems as well as incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. associated with being a public entity. When we combine these infrastructure investments with our financial strength from the sale of BookLink, we are well positioned to focus on expanding and improving our information based products and services while exploring investment opportunities to 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. CMG and SalesLink." 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 list 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 and fulfillment services.
CMG Information Services Inc.
Report of Second Quarter Earnings
(In thousands except per share amounts)
Three Months Ended Six Months Ended
January 31, January 31,
1995 1994 1995 1994
Net sales $5,540 $4,536 $11,203 $9,234
Operating income 766 696 1,952 1,606
Income from continuing
operations before income
taxes 787 638 1,998 1,481
Income tax expense 315 248 799 585
Income from continuing
operations 472 390 1,199 896
Loss from discontinued operations of BookLink Technologies Inc., net of income tax benefits (478) - (689) - Gain from disposal of BookLink Technologies Inc. net of income taxes 24,143 - 24,143 - Net income $24,137 $390 $24,653 $896 Primary earnings per share: Income from continuing operations $0.15 $0.18 $0.38 $0.41 Loss from discontinued operations (0.15) - (0.22) - Gain on disposal of BookLink Technologies Inc., net of income taxes 7.71 - 7.73 - Total $7.71 $0.18 $7.89 $0.41 Weighted average common and common equivalent shares outstanding - primary 3,131,797 2,199,166 3,123,090 2,164,534 Fully diluted earnings per share: Income from continuing operations $0.15 $0.18 $0.37 $0.41 Loss from discontinued operations (0.15) - (0.21) - Gain on disposal of BookLink Technologies Inc., net of income taxes 7.54 - $7.50 - Total $7.54 $0.18 $7.66 $0.41 Weighted average common and common equivalent shares outstanding - fully diluted 3,199,400 2,199,166 3,218,643 2,164,534 CONTACT: CMG Information Services Mark D. Gagne, CFO See Chief Financial Officer. , 508/657-7000, ext. 3078 |
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