Revenues of $1MM+ up 358% YoY, Profitability Maintained
Revenues of $1MM+ up 358% YoY, Profitability Maintained
XA Sales Funnel Builds with Multiple Seven-Figure Contract Bids Progressing
Approved 100MM Share Repurchase and Began Returning Capital to Stockholders
Company Pursuing Legal Action Against Former Attorneys
CHICAGO, Aug. 13, 2019 (GLOBE NEWSWIRE) -- via NetworkWire - CMG Holdings Group, Inc. (CMGO/OTC) today released strong second quarter 2019 results and provided a shareholder update from the Office of the CEO, Glenn Laken:
“As you can see, CMG executed well during the three-month period ended June 30, 2019. Total revenues of $1.06MM were up 358% YoY from $232K in the prior year’s same period aided by strong execution and financial management. The Company generated a net profit of $481K up significantly from a loss of ($183K) in 2Q18. We remain debt free at the XA level leaving the business in a great position going forward. XA’s fundamentals are improving and the unit has a very clean capital structure, which are the best of both worlds.
CMG finished the quarter with a cash position of $409,589, and with XA’s return to profitability this year and another two years of payments expected from a substantial litigation settlement in the March quarter, CMG is only getting stronger as the days go by.
We are pursuing legal remedies for monetary damages with two of the former attorneys for CMG in its lawsuit which was resolved in January. Discussions of settlement are underway, and if that does not bring closure, we will be filing suit in the near future. More details will be released as they become available.”
Additionally, CMG would like to give an update on its business outlook. During the quarter, XA, the Company’s operating subsidiary, closed a six-figure contract with a world-renowned clothing retailer which has the potential to become a seven-figure relationship after its initial scope of work is completed. Further, XA continues to work with several new clients on installations each to be in excess of $1 million and expects to close at least a couple of these opportunities this year which will become 2019 and 2020 business. XA continues to see clients returning with $50K - $100K jobs on a continual basis, which builds its book of business and provides visibility to future results.
Said Laken: “Overall, we have returned XA to strong growth and sustained profitability, which management projected heading into this year. With this operational momentum and our expected cash proceeds from non-operating activities, the Company is in the best state of operational health and liquidity position it has enjoyed in years. I believe we have laid the foundation for a great future for the Company and expect to create substantial value for shareholders in the future. For these reasons, our Board of Directors approved a 100 million share repurchase program, which we initiated in June and which continues to be executed today.”
Management has posted CMG Holdings’ last two years of financial statements on a recently-designed CMG website at https://www.cmgholdingsinc.com and filed them with OTCMarkets.com, bringing the Company current with its financial reporting requirements and removing YIELD and STOP signs that have been hindrances to investors in the Company’s stock over the past few years.
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. (http://www.experientialagency.com) - which engages in the alternative advertising, digital media, experiential and interactive marketing, and entertainment sectors. XA is involved in production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. The business also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks to design and develop individual broadcasting digital media channels to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. XA serves clients across the marketing communication industry. Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a subsidiary formed to manage its portfolio investments.
Statements in this press release about our future expectations, including without limitation, the likelihood that CMG Holdings Group, Inc. will meet minimum sales expectations, be successful and profitable, bring significant value to its stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. CMG’s business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Company’s future revenues, financial condition or stock price.
CMG Holdings Group, Inc.