Reliant Announces Third Quarter Financial Results and that TSIG Transaction on Hold
TAMPA, Fla.--(BUSINESS WIRE)--Nov. 24, 2000--Kevin Harrington, chairman and CEO of Reliant Interactive Media Corp. (OTCBB:RIMC), Friday announced the company's third quarter financial results.
It was also reported that the proposed business combination transaction with Teleservices Internet Group Inc. (OTCBB:TIGI)(herein "TSIG") has been placed on hold. More information about the TSIG transaction, which was scheduled to close on Oct. 23, 2000, are provided in an Information Statement that was filed with the SEC on Form 14C and mailed to Reliant's shareholders.
Net sales for the quarter ending Sept. 30, 2000, were more than $22.1 million as compared with $5.9 million in the same quarter of the previous year. Gross profit for the third quarter was $4.4 million as compared with $2.1 million in the same quarter of the previous year. Net profits for the third quarter were $152,003 as compared with $396,815 in the same quarter of the previous year.
However, for the first nine months of this year the net profits were $533,670 as compared with a loss of ($879,468) in the same period of the previous year, with net sales for these two respective periods increasing from just more than $9 million to more than $61 million.
Much of this growth has been generated from sales from the computer-related products that are marketed and updated periodically to reflect technological advances.
Harrington stated: "We are pleased with the sustained growth of our young company and expect improved results in both the fourth quarter of this year and in the year 2001. This growth will be fueled by a number of exciting new products that we are bringing to market and our expansion into international sales. We will soon be marketing our products in the European, the Asian and South American markets. We also expect that a growing percentage of our revenues will come from sales generated through our Web sites."
The closing of the TSIG transaction has been placed on hold for two primary reasons: 1) Certain conditions that TSIG was required to satisfy prior to closing have not been satisfied. These conditions included the closing of the acquisition of The Affinity Group Inc. by TSIG; and 2) Reliant has learned of certain previously undisclosed information that would materially affect its decision to proceed to a closing.
Reliant has requested that TSIG address numerous questions in connection with this transaction. TSIG has partially responded to Reliant's concerns by making certain new disclosures in the TSIG Form 10QSB filed on Nov. 21, 2000. The board of directors of Reliant will continue its due diligence and make a decision no later than next week as to its course of action in regards to the proposed business combination with TSIG.
About Reliant Interactive Media Corp.
Reliant Interactive Media, with headquarters in Tampa, has combined the marketing power of television and the personal computer to sell cutting-edge products to consumers. Reliant produces long-form commercial programming that drives customers to purchase products through the convenience of the telephone or by using their Web properties.
Reliant's business model is to develop customers for their Web properties at no direct acquisition costs, because the production and the media costs are being covered independently of Web site sales.
This news release contains "forward-looking statements" within the meaning of Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act. Actual results could differ materially, as the result of (1) competition in the markets for the company's products and services, (2) the ability of the company to execute its plans, (3) the availability of financing at favorable terms, and (4) other factors noted in the company's public filings with the SEC.
CONTACT: Reliant Interactive Media Corp.
Karl Rodriguez, 949/248-9561 |
