CMKG...1.65..Nasdaq...forecast out this am...5m shares outstanding:
CoActive Holds Annual Meeting; Issues Earnings Guidance for Q2 and FY 2003
Thursday September 26, 10:00 am ET
GREAT NECK, N.Y., Sept. 26 /PRNewswire-FirstCall/-- CoActive Marketing Group, Inc. (Nasdaq: CMKG - News), a full service marketing, sales promotion and interactive services company, will provide earnings guidance for the Company's second quarter ending September 30, 2002 and fiscal year ending March 31, 2003, at its annual meeting being held today in Great Neck, New York.
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At the meeting, John Benfield, Chairman and CEO of CoActive Marketing Group, will advise shareholders that the Company anticipates earnings per share for the quarter ending September 30, 2002 to be in the range of $0.07 to $0.09, resulting in earnings per share for the six months ending September 30, 2002 in the range of $0.10 to $0.12. As previously reported, the Company had adopted Statement of Financial Accounting Standards No. 142, Accounting for Goodwill and Other Intangible Assets, and accordingly ceased amortization of goodwill on April 1, 2002. Comparative prior year earnings per share for the quarter and six month periods ended September 30, 2001, without the amortization of goodwill, would have been $0.07 and $0.10, respectively.
Addressing the Company's anticipated results for the fiscal year ending March 31, 2003, Mr. Benfield will report that earnings per share are expected to be in the range of $0.35 to $0.40, in comparison to earnings per share without the amortization of goodwill of $0.28 for the prior fiscal year. These anticipated results reflect a trend in profitability that is expected to continue to improve throughout the balance of the fiscal year, due to the impact of the Company's cost reduction efforts and increasing sales. The Company is especially encouraged by the performance and robust vitality of U.S. Concepts, its event marketing arm, as well as the successful inroads into the Hispanic marketplace made by its MarketVision affiliate, which has recently been awarded Hispanic agency status for a number of prominent clients. In addition, the Company's interactive services division continues to grow, and since 9/11, the Company has experienced a resurgence of interest in its broadcast media/radio services.
Since 1998, the Company has continued to build a broad platform of complementary marketing services, leading to a top 20 agency ranking by PROMO Magazine. Further broadening its platform of services, the Company recently formed Grupo Hacerlo, a nationwide network of affiliated Hispanic-owned and operated agencies providing event and on-premise promotional marketing services to fulfill clients' national or regional promotional marketing activities in Hispanic markets. Grupo Hacerlo has a local presence in the top 24 U.S. urban Hispanic markets, enabling it to satisfy what the Company views to be an industry void.
Mr. Benfield will further report that the contractual earn-out obligations, associated with the Company's various acquisitions, are concluding and all of the key managers retained by the Company, in connection with these acquisitions, have entered into long-term extensions to their employment agreements further solidifying the integration of the Company's operations.
In conclusion, Mr. Benfield will state that, "we remain committed to the Company being one of the leaders in its industry and we are confident of the Company's ability to increase earnings per share and shareholder value in fiscal 2003 and beyond."
Interested parties can receive corporate updates by sending their name and email addresses or fax numbers to cmkg@focuspartners.com.
About CoActive Marketing Group, Inc.
CoActive is a full service multi-cultural marketing, sales promotion and interactive services company which develops and manages integrated marketing, sales and promotion programs at both national and local levels for consumer product companies. Its programs are geared towards growing incremental sales and profits by identifying and addressing key trade, sales and consumer needs. Additional information concerning the Company can be found at getcoactive.com .
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. Such statements, including earnings projections, reflect the current views of the Company with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in those forward-looking statements. 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, 2002 under "Risk Factors" including but not limited to: "Unpredictable Revenue Patterns," "Competition," "Customers," "Dependence on Key Personnel," "Expansion Risk," "Control by Executive Officers," and "Outstanding Indebtedness, Security Interest." The Form 10-K may be obtained by accessing the database maintained by the Securities and Exchange Commission at sec.gov or by contacting CoActive Marketing Group, Inc.
Company Contact: Investor Relations:
Donald A. Bernard Harvey Goralnick
Chief Financial Officer FOCUS Partners LLC
516-622-2800 212-752-9445 |
