INDEPENDENT ENTERTAINMENT GROUP INC. REPORTS THIRD QUARTER AND NINE MONTHS RESULTS ENDED SEPT. 30, 1991
INDEPENDENT ENTERTAINMENT GROUP INC. REPORTS THIRD QUARTER
AND NINE MONTHS RESULTS ENDED SEPT. 30, 1991
LOS ANGELES, Nov. 21 /PRNewswire/ -- Independent Entertainment Group Inc. (NASDAQ: INDE) announced today results for third quarter and nine months ended Sept. 30, 1991.
Revenues for the third quarter and nine months were $1,495,648 and $5,996,277, respectively, as compared to $4,534,862 and $10,489,645 for the same periods last year. Net income for the third quarter and nine months was $493,645 or $.02 per share and $1,066,672 or $.05 per share as compared to income reported last year for the same periods of $170,790 or $.01 per share and $255,386 or $.02 per share, respectively.
Recently, the company announced that its "pay-per-call" subsidiary had received $1.2 million in a settlement of a lender liability suit it filed against the merchant bank which settled Visa and MasterCard charges for its customers. The lawsuit was originally filed in August of 1990. In addition, the company received the $350,000 cash which was being held in lieu of a bond to support INDE's preliminary injunction. The positive impact of this settlement will be reflected in the fourth quarter earnings.
In June of 1991, the company launched its private label "pay-per- call" charge card, "ConnectCard." Since its launching in June, the "ConnectCard" has signed over 18,000 card holders and generated over $1.5 million in billings. Greg Coulas, president of ConnectCard, stated that, "A substantial demand exists for an alternative specialty card tailored to pay-per-call' since Visa, MasterCard and the telephone companies are unwilling to accommodate this industry which is estimated at between $900 million and $1.2 billion and growing." Coulas further stated that, "The results to date do not yet reflect the company's plan to launch a campaign to convert its database of over 250,000 Visa/MasterCard users to ConnectCard' members."
ConnectCard has developed an extensive screening process to insure the highest feasible collection rate. The service is currently on line with all three major credit bureaus to process charge applications including TRW, TransUnion and Equifax.
On Aug. 12, 1991, of the third quarter, the company's "pay-per- view" subsidiary filed suit against the NBA for its refusal to allow Magic Johnson and Michael Jordan to play in a one-on-one basketball contest entitled "King of the Court" which was packaged by INDE for exhibition on a pay-per-view basis and originally scheduled for June 25, 1990. Lew Eisaguirre, INDE's chief financial officer, stated that, "We have estimated damages at $40 million, which does not include successive years, since the event would have been staged as an evergreen' sports contest." The lawsuit was filed in the United States District Court in Los Angeles and alleges that the NBA's conduct is a restraint of trade violation of Section 1 of the Sherman Act.
INDE's stock trades over-the-counter NASDAQ: INDE and is traded by 18 market makers.
/CONTACT: Fran Daniels of Financial Sciences of America, 310-278-4413, for Independent Entertainment Group Inc./
(INDE) CO: Independent Entertainment Group Inc. ST: California IN: ENT SU: ERN CH-SE -- LA012 -- 5751 11/21/91 09:31 EST