Cross Media Marketing Corporation Reports Record First Quarter Revenues and Earnings.Business Editors NEW YORK--(BUSINESS WIRE)--May 2, 2001 Company Reports 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 of 2 cents excluding non-recurring Preferred Dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) Cross Media Marketing Corporation (AMEX AMEX See: American Stock Exchange : XMM XMM - Extended Memory Manager ), a leading technology driven marketing company, reported today record revenues and net income for its first quarter ended March 31, 2001. The company announced revenues of approximately $20.9 million, representing a 39% sequential revenue increase over the fourth quarter of 2000, and $2.0 million in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the quarter ended March 31, 2001. The Company also reported 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. of approximately $1.6 million, or $.05 per share, and net income available to common shareholders, excluding non-recurring Preferred Dividends, of approximately $690,000 or $.02 per share. "We are extremely pleased by these results," said Ron Altbach, Cross Media Marketing's Chairman and Chief Executive Officer. "It has been a little over one year since we acquired the business of Direct Sales International L.P. and since then we have been able to substantially increase revenues and profitability by utilizing a highly targeted multi-channel marketing platform. The rapid growth in our customer base should create compelling opportunities as we move to a multi-product marketing platform. We believe that the investments we have recently made in technology through our acquisition of Wefusion.com and in further developing our marketing infrastructure will yield significant short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. results in the coming months." "This company has never been better positioned for growth," said Richard Kaufman, President. "We have simplified our capital structure so that we have eliminated significant Preferred Dividend charges and significantly strengthened our balance sheet. Our strong cash flow allows us to pursue technology initiatives and strategic, accretive acquisitions Accretive Acquisition An acquisition that will increase the acquiring company's EPS. Notes: As they are expected to increase the acquiring company's future earnings, these acquisitions tend to be favorable for the company's market price. . While other companies have continued to lower guidance, the best is yet to come for us this year." 2001 Outlook The Company expects to report revenues for 2001 of between $98 and $110 million and net income of $9.7 million to $11.1 million, or $0.22 to $0.25 per share. This will represent a revenue increase of 58% to 78% over fiscal 2000. As a result of the redemption of the preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , the Company anticipates that it will reduce its non-cash dividends from $38.7 million in 2000 to under $1.0 million in 2001. The Company will host a conference call at 4:30 ET to discuss the results. Interested parties may access the call by dialing (800) 403-2030 or from an international location by calling (865) 673-6720. The phone code is 2176290. This call will also be webcast by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and can be accessed at Cross Media Marketing's web site at www.xmmcorp.com. The webcast will also be distributed over CCBN's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network such as America Online's Personal Finance Channel, Fidelity Investments Fidelity Investments is a group of privately held companies in the financial services industry. It is made up by two independent but closely cooperating companies, Fidelity Management and Research Corporation (FMR Co. (R) (Fidelity.com) and others. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. can access the call via CCBN's password protected event management site, StreetEvents (www.streetevents.com). About Cross Media Marketing Corporation Cross Media Marketing Corporation is a technology-driven marketing company integrating its sophisticated direct marketing skills with cutting-edge technologies, including interactive voice response and web-based systems, resulting in a multi-dimensional marketing platform for the international marketing of products and services. Cross Media Marketing seeks to achieve revenue growth and earnings leverage by cross marketing products and services through multiple channels to an expanding multi-million customer base utilizing state-of-the-art direct marketing strategies. Through voice-driven customer acquisition programs, Cross Media Marketing contacts and retains critical data on more than thirteen million persons annually. The Company continues to exploit its expansive database in other technology-driven marketing channels, facilitating additional e-commerce transactions to increase revenues while concurrently lowering costs and increasing margins. For more information about Cross Media Marketing, visit the website at www.xmmcorp.com or email investor-relations@xmmcorp.com. Cautionary Statement Certain statements contained herein and in the information posted on the Company's website described above that are not based on historical fact are "forward looking statements' within the meaning 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. Cross Media Marketing Corporation intends that such 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. be subject 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. created thereby. In addition to the 2001 projections referenced in this release, these forward-looking statements regard Cross Media Marketing's acquisition activities, revenues, earnings, liquidity, financial condition, cash flow and ability to exploit its database and certain technological innovations and certain operational matters. Such forward-looking statements are based on current expectations but involve certain risks and uncertainties. Cross Media Marketing's actual results, performance or achievements could differ materially from the results, performance or achievements projected in, or implied by, such forward-looking statements as a result of risk factors including without limitation the following: Cross Media Marketing's need to raise additional debt and/or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , the adequacy of bad debt reserves, changes in economic conditions or a material decline in the availability of consumer credit, interest rate fluctuations, Cross Media Marketing's limited operating history, Cross Media Marketing's strategy of growth through acquisitions, competitive factors, the need to manage growth, volatility in the market price of the Common Stock, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc government regulation of telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. and internet marketing See Internet advertising. activities, and potential dilution potential dilution The decrease in the proportional equity position of a share of stock that will occur eventually if additional authorized shares are actually issued. . These factors are described in detail in Cross Media Marketing's Forms 10K-SB and its Forms 10Q-SB filed with the SEC. Cross Media Marketing assumes no responsibility to update the information included in this press release or on its website, whether as a result of new information, future events or otherwise.
Cross Media Marketing Corporation
Financial Table
As of and for the three months and year ended March 31,
2001 ($ in thousands except per share data)
Three months Three months
ended ended
March 31, 2001 March 31, 2000
Operating Results:
Revenues $ 20,895 $ 12,687
Gross profit 5,147 3,154
Operating expenses 3,107 1,294
Non-cash operating expenses 429 1,712
Operating income 1,611 148
Interest expense 360 420
Non-cash interest expense 98 1,689
Provision for income taxes 232 -
Net income (loss ) 921 (1,961)
Preferred dividends 1,131 20,442
Net loss to common
stockholders $ (210) $ (22,403)
Basic and diluted net
loss per share $ (0.01) $ (1.39)
Loss per common share $ (0.01) $ (1.39)
Basic and diluted shares
outstanding 32,792 16,136
Cash Flow Data:
EBITDA -excluding
non-cash charges $ 2,040 $ 1,860
EBITDA per share
-excluding non-cash
charges $ 0.06 $ 0.12
Balance Sheet Data: March 31, 2001 December 31, 2000
Total assets $ 44,907 $ 43,944
Total liabilities $ 29,079 $ 28,059
Working capital $ 5,199 $ 5,093
Mandatorily redeemable
preferred stock $ 3,304 $ 6,245
Stockholder's equity $ 15,827 $ 9,640
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