MSGI, is a direct marketing, information and media services company specializing in telemarketing and telefundraising for non-profit and commercial entities. By acquiring Pegasus Internet, Inc. in July 1997 and Media Marketplace Inc. in December 1997 and forming its Metro Fulfillment Inc. subsidiary in May 1998, Marketing Services Group, Inc. broadened its offerings to include online consulting, Web design, database management and media planning services. In september and October 1998, MSGI announced it won several contracts with entities such as Madison Square Garden, the San Francisco Opera and the World Wildlife Fund. In December 1997 GE Capitol Corp. paid $15 million for some 24% of MSGI. At the end of FY 98 (Jun), the company had more than $6 million in cash and cash equivalents on its books, twice the amount it had at FY 97's end. In September 1998 MSGI announced a play to buy back up to 1 million common shares, or nearly 8% of the outstanding stock.
Revenus for the year ended June 30th, 1998 more than doubled, year to year, primarily reflecting acquisitions and start-up operations. Operating costs increased 87%, also principally as a result of acquisitions and start-up operations. In the absence of $1.2 million of costs for a withdrawn public offering and $113,000 in discounts for excersised warrents (to obtain working capitol after the withdrawn offering) and a significant decrease in interest expense, net losses fell dramatically, to $780,478 ($.037 per share, on 82% more shares), from $5,377,096 ($2.85) As of 3/27/99 MSGI had a float of 12.7 million shares an average daily volume of 602,000 a beta of 1.16, market cap 124 million with institutions holding 8% of outstanding shares. |
