CoActive Marketing Group, Inc. Reports Increased Earnings; for Its Third Quarter and Nine Months Ended December 31, 2001.Business Editors GREAT NECK, N.Y.--(BUSINESS WIRE)--Feb. 4, 2002 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 SmallCap: CMKG) reported today that for its third quarter ended December December: see month. 31, 2001, sales increased to $12,616,000 from $11,064,000 for the prior year's third quarter. Net income for the quarter was $264,000 compared with $88,000 for the prior year's third quarter. For the nine months sales increased to $39,015,000 from $35,413,000 for the prior year, resulting in net income for the nine months of $655,000 compared with $96,000 for the prior year nine months. 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. net income per share for the quarter was $.05 compared with $.02 for the prior year's quarter. Diluted net income per share for the nine months was $.12 compared with $.02, after recognizing a charge of $503,000 from the cumulative effect of a change in accounting principle for revenue recognition, for the prior year's nine month period. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Commenting on the Company's quarter and nine months results, John Benfield, President and Chief Executive Officer of CoActive Marketing Group stated that `We are pleased with the Company's progress in maintaining a trend of improved earnings. In comparison with the prior year's third quarter, the Company's sales and gross profit for the quarter rose 14% and 17.3% respectively, resulting in a 68.1% comparative increase in 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. after absorbing ab·sorb tr.v. ab·sorbed, ab·sorb·ing, ab·sorbs 1. To take (something) in through or as through pores or interstices. 2. To occupy the full attention, interest, or time of; engross. a 11.7% increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . The Company is continuing to integrate the marketing of its services. CoActive has implemented cost reduction programs which should result in an annual operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. reduction of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $500,000 in fiscal 2003. We are enthusiastic about the continuation of our positive earnings and growth trends for both the fourth quarter and the following fiscal year."
The following are unaudited summary statements of operations for
the third quarter and nine months ended December 31, 2001 and 2000:
Quarter Ended
----------------------------------------------
Dec. 31, Dec. 31, %
2001 2000 Change
------------ ------------ ----------
Statement of Operations Data:
Sales $ 12,616,308 $ 11,064,034 14.0
Gross Profit 3,999,095 3,408,259 17.3
Operating Income 570,929 339,576 68.1
Provision for Income Taxes 188,611 58,828 220.6
Net Income before Cumulative
Effect of Change in Accounting
Principle for Revenue
Recognition 264,312 88,230 199.6
Cumulative Effect of Change in
Accounting Principle
for Revenue Recognition - - n/a
Net Income 264,312 88,230 199.6
585.8
Net Income per Common
and Common Equivalent Share
Basic $ .05 $ .02 150.0
Diluted $ .05 $ .02 150.0
Average Shares Outstanding
Basic 5,028,481 5,020,329 0.2
Diluted 5,474,806 5,310,234 3.1
Nine Months Ended
------------------------------------------
Dec. 31, Dec. 31, %
2001 2000 Change
------------- ------------ ---------
Statement of Operations Data:
Sales $ 39,014,668 $ 35,413,315 10.2
Gross Profit 12,239,173 10,848,568 12.8
Operating Income 1,410,936 1,598,771 (11.7)
Provision for Income Taxes 451,023 398,919 13.1
Net Income before Cumulative
Effect of Change in Accounting
Principle for Revenue
Recognition 655,412 598,371 9.5
Cumulative Effect of Change in
Accounting Principle for Revenue
Recognition - (502,800) n/a
Net Income 655,412 95,571 585.8
Net Income per Common
and Common Equivalent Share
Basic $ .13 $ .02 550.0
Diluted $ .12 $ .02 500.0
Average Shares Outstanding
Basic 5,024,390 5,017,441 0.1
Diluted 5,506,112 5,457,425 1.0
CoActive Marketing Group, Inc. is a full service marketing, sales promotion and interactive services company which develops and manages integrated marketing, sales and promotion 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 needs. 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. Such statements reflect the current views of the Company with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements. 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, 2001 under "Risk Factors," including but not limited to "Unpredictable Revenue Patterns," "Competition," "Customers," "Dependence on Key Personnel," "Expansion Risk," "Control by Executive Officers," and "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." The Form 10-K may be obtained by accessing the database maintained by the Securities and Exchange Commission at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. or by contacting CoActive Marketing Group, Inc. |
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