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NEW YORK, Aug 14, 2006 (BUSINESS WIRE) -- CoActive Marketing Group, Inc. (NASDAQ Small Cap: CMKG), a full service marketing, sales promotion and interactive services company, today reported financial results for its fiscal first quarter ended June 30, 2006.
Operating Results
In the first quarter of fiscal 2007, the Company reported sales of $26.8 million, a 42% increase over the same period in the prior year. Sales, net of reimbursable costs and outside production costs amounted to $8.4 million, an increase of 28% on a year over year basis. The Company reported net income and fully diluted earnings per share from continuing operations of $229,000 and $.03, respectively, for the quarter ended June 30, 2006. This compares to a reported loss of $564,000 and fully diluted loss per share of $.09 for the same period in the prior year. In May 2006, the Company sold its 49% interest in MarketVision. In the first quarter of Fiscal 2007, the Company reported a net loss and fully diluted loss per share from discontinued operations of $177,000 and $.02, respectively. After reflecting the results from discontinued operations, the Company's net income and fully diluted earnings per share in the first quarter of Fiscal 2007 amounted to $52,000 and $.01, respectively.
During the current quarter, reflecting increased earnings and stock options exercised, the Company's working capital deficit improved to $2.3 million, as compared to $2.9 million at March 31, 2006. The Company also continued to reduce its long-term bank debt. Bank debt amounted to $2.75 million at June 30, 2006. This compares to $3 million and $4.6 million at March 31, 2006 and June 30, 2005, respectively.
Marc Particelli, CoActive's interim President and Chief Executive Officer commented, "We are pleased by the continued growth that we have realized in executing experiential and sales promotion marketing programs. Fueling the Company's return to profitability during the quarter, the Company's sales, net of reimbursable program and outside production costs, increased by 28% on a year over year basis. During the quarter, we continued to introduce innovative sales marketing promotions geared toward large retailers and physicians. In addition, during the first quarter of our fiscal 2007, our first integrated marketing program containing both experiential and sales promotional elements commenced and generated sales of $4.5 million. While we are pleased with the results of these programs as well as the progress realized toward strengthening our balance sheet and reducing bank debt, we continue to address the challenges and opportunities in generating both increased sales from interactive marketing programs as well as recurring revenue and improved margins across all of our programs."
Mr. Particelli concluded, "As a result of the cost reductions that we implemented in fiscal 2006, our compensation and general and administrative expenses are better aligned with our expected revenues and have decreased as a percentage of sales, reflecting the scalability of these expense categories. During the balance of fiscal 2007 we will remain focused on developing programs with recurring revenue opportunities at improved margins, while continuing to align costs with our expected revenues."
CoActive Marketing Group, Inc. is a full-service marketing, sales promotion, and interactive services company that develops and manages integrated marketing, sales and promotional programs at both national and local levels for consumer product companies. The programs are geared towards growing incremental sales and profits by identifying and addressing key trade, sales and consumer trends.
This press release includes statements which constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Factors that could cause actual results to differ materially from the Company's expectations are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2006 under "Risk Factors," including but not limited to "Unpredictable Revenue Patterns," "Customers," "Competition," "Outstanding Indebtedness; Security Interest," "Need for Additional Funding," "Recent Loss," "Dependence on Key Personnel," "Risks Associated with Acquisitions," "Expansion Risk," and "Control by Executive Officers and Directors" and include the risk that projected business opportunities will fail to materialize or will be delayed. The Form 10-K may be obtained by accessing the database maintained by the Securities and Exchange Commission at http://www.sec.gov.
CoActive Marketing Group, Inc.
Consolidated Statements of Operations
Three Months Ended
(unaudited)
June 30, June 30,
2006 2005
Sales $26,753,000 $18,906,000
Operating Income (Loss) 361,000 (838,000)
Income (Loss) from Continuing Operations
before Provision (Benefit) for Income Taxes 381,000 (895,000)
Provision (Benefit) for Income Taxes 152,000 (331,000)
------------ ------------
Income (Loss) from Continuing Operations 229,000 (564,000)
------------ ------------
Discontinued Operations (177,000) (2,000)
------------ ------------
Net Income (Loss) $52,000 $(566,000)
============ ============
Basic Earnings (Loss) per Share:
Income (Loss) from Continuing Operations $0.03 ($0.09)
Loss from Discontinued Operations (0.02) -
------------ ------------
Net Income (Loss) $0.01 ($0.09)
============ ============
Diluted Earnings (Loss) per Share:
Income (Loss) from Continuing Operations $0.03 ($0.09)
Loss from Discontinued Operations (0.02) -
------------ ------------
Net Income (Loss) $0.01 ($0.09)
============ ============
Weighted Average Shares Outstanding:
Basic 6,785,054 6,261,690
Diluted 7,086,667 6,261,690
Consolidated Balance Sheet
June 30, 2006 March 31, 2006
(unaudited)
Total Assets $38,401,000 $41,981,000
Current Debt 1,000,000 1,000,000
Long-Term Debt 1,750,000 2,000,000
Total Liabilities 28,527,000 32,403,000
Stockholders' Equity 9,874,000 9,578,000
SOURCE: CoActive Marketing Group, Inc.
CoActive Marketing Group, Inc. Marc Particelli, 212-366-3403 or Erwin I. Mevorah, 212-366-3402
Copyright Business Wire 2006
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