CoActive Marketing Group, Inc. Reports Fiscal First Quarter 2007 Results.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- CoActive co·ac·tion n. 1. An impelling or restraining force; a compulsion. 2. Joint action. 3. Ecology Any of the reciprocal actions or effects, such as symbiosis, that can occur in a community. Marketing Group, 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 Small Cap: CMKG), a full service marketing, sales promotion and interactive services company, today reported financial results for its fiscal first quarter ended June 30, 2006. Operating Results In the first quarter of fiscal 2007, the Company reported sales of $26.8 million, a 42% increase over the same period in the prior year. Sales, net of reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. costs and outside production costs amounted to $8.4 million, an increase of 28% on a year over year basis. The Company reported net income and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of 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 of $229,000 and $.03, respectively, for the quarter ended June 30, 2006. This compares to a reported loss of $564,000 and fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share of $.09 for the same period in the prior year. In May 2006, the Company sold its 49% interest in MarketVision. In the first quarter of Fiscal 2007, the Company reported a net loss and fully diluted loss per share 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 $177,000 and $.02, respectively. After reflecting the results from discontinued operations, the Company's net income and fully diluted earnings per share in the first quarter of Fiscal 2007 amounted to $52,000 and $.01, respectively. During the current quarter, reflecting increased earnings and stock options exercised, the Company's working capital deficit improved to $2.3 million, as compared to $2.9 million at March 31, 2006. The Company also continued to reduce its long-term bank debt. Bank debt amounted to $2.75 million at June 30, 2006. This compares to $3 million and $4.6 million at March 31, 2006 and June 30, 2005, respectively. Marc Particelli, CoActive's interim President and Chief Executive Officer commented, "We are pleased by the continued growth that we have realized in executing experiential ex·pe·ri·en·tial adj. Relating to or derived from experience. ex·pe  ri·en and sales
promotion marketing programs. Fueling the Company's return to
profitability during the quarter, the Company's sales, net of
reimbursable program and outside production costs, increased by 28% on a
year over year basis. During the quarter, we continued to introduce
innovative sales marketing promotions geared toward large retailers and
physicians. In addition, during the first quarter of our fiscal 2007,
our first integrated marketing program containing both experiential and
sales promotional elements commenced and generated sales of $4.5
million. While we are pleased with the results of these programs as well
as the progress realized toward strengthening our balance sheet and
reducing bank debt, we continue to address the challenges and
opportunities in generating both increased sales from interactive
marketing programs as well as recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue and improved margins across all of our programs." Mr. Particelli concluded, "As a result of the cost reductions that we implemented in fiscal 2006, our compensation and general and administrative expenses are better aligned with our expected revenues and have decreased as a percentage of sales, reflecting the scalability of these expense categories. During the balance of fiscal 2007 we will remain focused on developing programs with recurring revenue opportunities at improved margins, while continuing to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. costs with our expected revenues." CoActive Marketing Group, Inc. is a full-service marketing, sales promotion, and interactive services company that develops and manages integrated marketing, sales and promotional programs at both national and local levels for consumer product companies. The programs are geared towards growing incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales and profits by identifying and addressing key trade, sales and consumer trends. This press release includes statements which constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provision of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 2006 under "Risk Factors," including but not limited to "Unpredictable Revenue Patterns," "Customers," "Competition," "Outstanding Indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. ; Security Interest," "Need for Additional Funding," "Recent Loss," "Dependence on Key Personnel," "Risks Associated with Acquisitions," "Expansion Risk," and "Control by Executive Officers and Directors" and include the risk that projected business opportunities will fail to materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. or will be delayed. The Form 10-K may be obtained by accessing the database maintained by the Securities and Exchange Commission at http://www.sec.gov.
CoActive Marketing Group, Inc.
Consolidated Statements of Operations
Three Months Ended
(unaudited)
June 30, June 30,
2006 2005
Sales $26,753,000 $18,906,000
Operating Income (Loss) 361,000 (838,000)
Income (Loss) from Continuing Operations
before Provision (Benefit) for Income Taxes 381,000 (895,000)
Provision (Benefit) for Income Taxes 152,000 (331,000)
------------ ------------
Income (Loss) from Continuing Operations 229,000 (564,000)
------------ ------------
Discontinued Operations (177,000) (2,000)
------------ ------------
Net Income (Loss) $52,000 $(566,000)
============ ============
Basic Earnings (Loss) per Share:
Income (Loss) from Continuing Operations $0.03 ($0.09)
Loss from Discontinued Operations (0.02) -
------------ ------------
Net Income (Loss) $0.01 ($0.09)
============ ============
Diluted Earnings (Loss) per Share:
Income (Loss) from Continuing Operations $0.03 ($0.09)
Loss from Discontinued Operations (0.02) -
------------ ------------
Net Income (Loss) $0.01 ($0.09)
============ ============
Weighted Average Shares Outstanding:
Basic 6,785,054 6,261,690
Diluted 7,086,667 6,261,690
Consolidated Balance Sheet
June 30, 2006 March 31, 2006
(unaudited)
Total Assets $38,401,000 $41,981,000
Current Debt 1,000,000 1,000,000
Long-Term Debt 1,750,000 2,000,000
Total Liabilities 28,527,000 32,403,000
Stockholders' Equity 9,874,000 9,578,000
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