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THE M/A/R/C GROUP EXPECTS DECLINE IN SECOND QUARTER RESULTS

 THE M/A/R/C GROUP EXPECTS DECLINE IN SECOND QUARTER RESULTS
 LAS COLINAS, Texas, June 30 /PRNewswire/ -- The M/A/R/C Group (NASDAQ: MARC) today said it expects to report revenues of between $16.0 million and $16.5 million for the second quarter ending June 30, 1992. The company expects to report net income of $150,000 to $220,000, or between $0.04 and $0.06 per share, for the same period.
 In the quarter ended June 30, 1991, the M/A/R/C Group reported revenues of $18.1 million and earnings of $782,000, or $0.22 per share (after adjustment for a 6-for-5 stock split.)
 The marketing services company said the results were the combined effect of a planned transition in its business mix and the delay of several client projects until future periods.
 A year ago, M/A/R/C initiated a transition from lower-margin data collection to higher-profit analytical and consulting services. In this connection, the company began implementing a plan to restructure the overhead associated with data collection and, most recently, resigned a facilities management agreement which did not produce a satisfactory margin but did help to absorb remaining overhead costs.
 The company has also experienced delays in several major client assignments that were shifted to the second half of 1992 or the first half of 1993. While this dynamic is not unusual, the effect was compounded by the pricing pressure experienced by the company on a large database marketing project.
 Chairman and chief executive officer, Cecil B. "Bud" Phillips, commented, "For the past year, M/A/R/C has been making a planned transition out of low-margin businesses such as facilities management and data collection, to higher-margin analytical-based services. The effect of this transition reached its pinnacle in the second quarter. We took a necessary step toward our strategic goal by resigning a large contract to manage a client's WATS customer service facility. At the same time, we experienced pricing pressures in the data collection area, which reinforces the logic behind our efforts to de-emphasize this aspect of our activities.
 "To accelerate our transition, we are launching an aggressive program to enlarge our staff of skilled professionals needed to develop the more profitable business areas and are instituting specialized training programs for our employees," Phillips stated. He added, "We are midway through this transition and clearly expect it to continue to affect the results for the third and fourth quarters of 1992." He noted that final results for the 1992 second quarter would be reported by the latter part of July.
 "We are making good progress in replacing the revenues from data collection with analytical and consulting business. While these changes will take time to be reflected in our revenues and profits, we are more confident than ever that these steps are in the long-term interests of the company and will enable M/A/R/C to achieve the pattern of revenue growth and higher earnings that we seek beginning in 1993," Phillips concluded.
 The M/A/R/C Group, based in Las Colinas, Texas, provides services such as custom marketing research, targeted database marketing, marketing simulation and total quality management programs through its four operating companies. With nine offices in the United States and Canada, its clients include leading consumer products, pharmaceutical, retailing and financial service companies.
 -0- 6/30/92
 /CONTACT: Harold Curtis of the M/A/R/C Group, 214-506-3407, or Edward Nebb of Morgen-Walke Associates, 212-986-5900/
 (MARC) CO: The M/A/R/C Group ST: Texas IN: SU: ERP


TQ -- NY014 -- 5014 06/30/92 08:45 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
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