The Murdock Group Issues Letter to Shareholders.Business Editors SALT LAKE CITY--(BUSINESS WIRE)--Aug. 2, 2001 The Murdock Not to be confused with Murdoc. Not to be confused with Murdoch. Murdock is a surname, and may refer to:
See: Over-the-counter. OTC See over-the-counter market (OTC). BB: TMGH), Thursday Thursday: see week. posted its letter to the shareholders that began distribution on Wednesday Wednesday: see week. , July July: see month. 25. Letter to the Shareholders July 25, 2001 As you know, last fall we undertook a large restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the company's assets and debts. We focused on a three-part strategy to renew and add value to the company. First we needed to address the debt by selling our real estate portfolio and converting debt into common stock. Second, we needed to revamp re·vamp tr.v. re·vamped, re·vamp·ing, re·vamps 1. To patch up or restore; renovate. 2. To revise or reconstruct (a manuscript, for example). 3. To vamp (a shoe) anew. n. the core career division and the corporate overhead to substantially reduce our costs and to gain profitability. Lastly, we needed to create new value by acquiring profitable, cash flowing, equity assets through purchases primarily in the small business arena. In following this plan, we have reduced our debt load by over $25 million since Sept. 1, 2000 and significantly reduced the interest rates and fees on the remaining obligations. We will continue negotiating with remaining creditors in an attempt to further reduce liabilities. We have revamped operations to bring the core career division to profitability and have reduced corporate overhead by over 80 percent. We anticipate growing the career business substantially in the coming quarters with additional growth coming from increased career fair business, growth in our core career coaching business and possible acquisitions in career and related fields. We are currently structuring the career division in anticipation of growth and acquisitions and will announce further details shortly. With our financials dramatically improved and our career business and corporate overhead revamped, we believe we are now positioned to grow quickly through acquisitions. Clear Capital was formed second quarter as an acquisitions subsidiary with a business mandate to buy profitable, established businesses using mortgages and equity. In the first 90 days of operation Clear Capital was able to purchase its first business with over $2 million in revenue and $600,000 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. in 2000. This acquisition alone more than doubles Murdock's consolidated revenue and operating income. Clear Capital was also able to purchase its first commercial building, which it is now occupying as its corporate headquarters. Clear Capital is currently in talks to acquire additional revenue and equity businesses in the coming months with additional information to be released shortly. In short, our debts have been substantially reduced, our operations are now paying their own bills, and growth through acquisitions is successfully underway. We anticipate growing the company substantially in the coming year primarily through the acquisition of profitable small business with proven managers. We find it unfortunate that although the value of the company has substantially increased over the last 12 months, the stock value is less than 10 percent of what it was 12 months ago. We attribute that to the uncertainty and fear the restructure of the debt and capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. has created. We are doing everything in our power to create new equity and profits for the company and are hopeful that the market will soon reflect the substantial assets and income now being added to the company each quarter. Regards KC Holmes Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. The Murdock Group Holding Corp. About The Murdock Group Founded in 1983, The Murdock Group has emerged as a holding company that develops or acquires assets and businesses, and then focuses on increasing or creating equity, profit and cash flow in those assets and businesses. The Murdock Group has incubated Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the offerings MyJobSearch.com, an employment portal, and CareerWebSource, a BtoB employment information company, as well as a full service brick and mortar See bricks and mortar. career-coaching provider. The Murdock Group also has a real estate development group specializing in commercial cash flow projects. 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. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these statements are made to convey the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Actual company results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. A more extensive listing of risks and factors that may affect the business prospects of the company and cause actual results to differ materially from those described in the forward-looking statements can be found in the reports and other documents filed by the company with the Securities and Exchange Commission. |
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