LCS Golf Inc.- LCSG -- Quarterly Report Of Earnings And SEC Form 10QSB.
NEW YORK--(BUSINESS WIRE)--Dec. 8, 1999--
LCS LCS - Language for Communicating Systems Golf (OTCBB OTCBB
See OTC Bulletin Board (OTCBB). : LCSG LCSG Large Customer Support Group (Sprint) - news) is re-filing its form 10-SB with its 6 month financial statements with the Securities and Exchange Commission. Upon effectiveness of the form 10-sb, LCS golf will be a fully reporting company. Once reporting, LCS golf will be required to file quarterly and annual reports with the Securities and Exchange Commission.
LCS Golf.com is a holding company that operates under 2 lines of business, an Internet division and a manufacturing division. The Internet division provides permission email direct marketing services through GolfPromo www.Golfpromo.net, Internet and direct marketing services through Ifusion www.Ifusionco.com . GolfUniverse www.GolfUniverse.com provides Golf e-commerce, news and information through a vertical golf portal, discounts on golf services through www.Playgolfnow.com and Internet access See how to access the Internet. through www.golfuniverse.myway.com . Manufacturing is provided through Mr. B Mr. B may refer to:
After identifying the opportunity for permission email direct marketing, newsletter marketing and Internet & direct marketing, we began to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam"
focus - cause to converge on or toward a central point; "Focus the light on this image"
2. our strategy towards permission email and Internet marketing See Internet advertising. in early 1999. To implement our permission email strategy, we acquired Golf Promo pro·mo
n. pl. pro·mos Informal
A promotional presentation, such as a television spot, radio announcement, or personal appearance. , created TargetMails.com (http://www.TargetMails.com) and started Ifusion in 1999. As a result of our new focus, we have built a network and developed reseller relationships which collectively provides us to reach over 3 million self-directed individuals, who have given permission to receive promotional messages via email on specific categories of interest. Our current strategy is to focus our resources on our permission email business by continuing to build our network of subscribers and our customer base.
We derive revenue by charging fees for sending permission email messages. Revenue is recognized when emails are sent to subscribers. Our customers are primarily e-commerce companies, interactive advertising agencies, golf and golf related companies.
We deliver email messages to members of our Golf Promo Network, consisting of our own permission email list and those of our network partners, and permission email lists from third party list managers. We pay our network partners or third party list managers either a percentage of revenue derived from the delivery of email messages to members on the lists they provide or a fixed fee. Substantially all of our customers purchase our permission email services See Internet e-mail service. under short-term contracts. We expect to continue to derive a substantial majority of our revenues from short-term contracts.
We expect to increase spending on sales and marketing as we expand our sales force, increase our subscriber base and promote awareness of our business. We also expect substantially higher selling, and continued web site development expenses as we expand our infrastructure to support our expected growth and as we continue to develop new online services.
In view of the rapidly evolving nature of our business, our limited operating history and our recent focus on permission email and Internet marketing services, we believe that period-to-period comparisons of our revenue and operating results, including our gross margin and 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. as a percentage of total revenues, are not meaningful and should not be relied upon as an indication of future performance. We do not believe that our historical growth rates Growth Rates
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Remember, historically high growth rates don't always mean a high rate of growth looking into the future. are indicative of future results.
Ifusion Co., Inc (http://www.ifusionco.com) is a full service traditional and Internet marketing company that provides services for individual clients as well as for their parent company, LCS Golf and its subsidiaries. Stemming from some the most respected agencies in the U.S., the talent at Ifusion fulfills projects ranging from creative and concept development, national program implementation and management to corporate and package development, sweepstakes, gaming and point of purchase materials. Ifusion generates an impressive revenue flow from monthly retainers, subcontract sub·con·tract
A contract that assigns some of the obligations of a prior contract to another party.
intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts work and per project work that it performs for its notable client list.
Through its primary website http://www.GolfUniverse.com, LCS Golf provides a comprehensive range of offerings for the golfer, including the largest database of golf courses worldwide, online tee time reservations, an extensive online Pro shop, and all major golf equipment and related products at discount prices. GolfUniverse.com also offers free video golf games; golf playing tips, trivia and rules. The Company also has a database of over 24,000 golf course names and addresses, over 15,000 golf retailers and pro shops, as well as names and addresses of individuals associated with the travel, healthcare, and investment industries. LCS Golf also owns the Golf Universe Yellow Pages, which is a search engine and directory for the golf industry. With these valuable databases, LCS Golf is able to direct market specific GolfUniverse products and services, rent the databases to advertisers, researchers, and golf consumers, and increase traffic to the website.
MR. B III designs, manufacturers, markets and distributes various consumer products. The core products include therapeutic magnet products and specialty pillows.
Mr.B III sells magnetic products that are aimed at the homeopathic Homeopathic
A holistic and natural approach to healthcare.
Mentioned in: Ehlers-Danlos Syndrome
adj treatment of various types of aches and pains throughout the body. Mr. B III's magnetic products consist of nine (9) different therapeutic magnets ranging in price from thirteen dollars and ninety-five cents ($13.95) to nineteen dollars and ninety-five cents ($19.95). These products are a Moist Heat Pack & Microwave Safe Moist Heat Pack, Moist Heat Pack Magnet and moist Heat Pack with Brushed Cotton/Vinyl Pouch, Pack-Pac, Neck Pillow, Neck Cradle, Hand Pad, Bed Pad, Travel Pad and Lumbar lumbar /lum·bar/ (lum´bar) pertaining to the loins.
Of, near, or situated in the part of the back and sides between the lowest ribs and the pelvis. Pillow. We plan to market these B III therapeutic magnet products through infomercials starring Joe Namath Joseph William Namath (born May 31, 1943), also known as Broadway Joe, was an American football Hall of Fame quarterback in the American Football League and National Football League during the 1960s and 1970's. Namath played for the New York Jets for most of his career. . Additionally, these items are available on the website of our subsidiary, Golf Universe web site.
RESULTS OF OPERATIONS
SIX MONTHS ENDED AUGUST 31,1999
Revenues. Our revenues consist of fees from providing internet marketing services, including the delivery of permission email direct marketing messages to members in our network, newsletter-marketing, e-commerce, banner advertising Banner Advertising
A common form of advertising on the internet. The banner is an advertisement of 460x68 pixels, usually placed at the top of the page
For an example, just look at the top of a page on almost any popular web site. , Internet marketing services and manufacturing. Total revenues were $744,012 for the six months ended August 31, 1999. Internet and Manufacturing revenues were $444,539 and 299,473 respectively for the six months ended August 31, 1999. The company expects internet revenues to grow quickly in the coming quarters.
Cost of Revenue. Cost of revenues consists of expenses related to our manufacturing division. Cost of revenues were $421,242 for the six months ended August 31, 1999. The cost of revenues was significantly higher than the revenue received do to insufficient volume to cover the cost of manufacturing.
Sales, General and Administrative. Sales expenses consist of personnel and related costs for our direct sales force, marketing staff and marketing programs, including trade shows, advertising and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most . Selling expenses were $ 359,462 for the six month ended August 31,1999.
The increase in sales and marketing cost were primarily due to increases in our direct sales force and increased marketing expenditures targeted at building our permission email and Internet marketing strategy. We expect sales and marketing expenses will increase substantially in absolute dollars over the next year as we hire additional sales and marketing personnel and initiate additional marketing programs.
General and administrative expenses consist primarily of personnel and related costs for general corporate functions, including finance, accounting, consulting, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , facilities and legal expenses, General and administrative expenses were $2,243,789 for the six months ended August 31, 1999. These cost were primarily due to non-recurring type expenditures such as general and administrative personnel, consulting, legal and accounting costs associated with our growth.
We expect general and administrative expenses to decrease in future periods although we will be adding personnel and incur additional costs related to the growth of our business, we will not incur additional consulting, accounting and legal fees.
Interest Expense. Interest expense consists of interest on borrowings from Dr. Michael Mitchell Michael Mitchell is an indigenous former Australian rules footballer for the Claremont Football Club in the WAFL and the Richmond Football Club in the VFL/AFL. He achieved All-Australian selection in 1985 and 1986, while playing with Claremont. and others. Interest expense was $13,193 for the six months ending August 31, 1999.
Income Taxes. No provision for federal or state income taxes was recorded as we incurred net operating losses Net operating losses
Losses that a firm can take advantage of to reduce taxes. since inception through August 31, 1999.
Web site traffic. The companies primary site www.golfuniverse.com has seen its seen its web traffic increase. Unique visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. have increased from 2,000 unique visitors to over 10,000 unique visitors daily, page views have increased from 6,000 daily to 35,000 daily. We expect our traffic to increase substantially in the coming quarter as our newsletter reach more subscribers and we begin an aggressive advertising and marketing campaign.
LIQUIDITY AND CAPITAL RESOURCES
From inception to August 31, 1999, we primarily funded our growth through a private placement and short-term borrowings from Dr. Mitchell and others. The company is aggressively seeking to raise substantial capital to achieve its growth objectives. The company is currently investigating raising additional capital through a secondary issuance of equity and debt securities. In the short term the company is trying to secure short term financing through a bridge loan.
Operations could continue to be reliant upon the cash flow generated from operations and continued short-term borrowings from Dr. Mitchell or from other sources if available. 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 provides a "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. " for 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. . Certain information included in this press release (as well as information included in oral statements or other written statements made are to be made by LCS) contains statements that are forward-looking, such as statements relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future anticipate direction of the golf industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of LCS. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors.
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