I am buying LEAP
LEAP--Internet advertising company in a turnaround situation. Market cap is 20MM and they took in 30MM in revs last year. Last Q they took in 11.5MM in revs and were profitable. New CEO and float of 3.7MM. These guys should move like IFLY, only we would be getting in earlier.
Price and Volume
(updated Apr 3, 1998)
52-Week Low $0.875
Recent Price $1.50
52-Week High $5.25
Beta N/A
Daily Volume (3-month avg) 29.8K
Share-Related Items
Market Capitalization $20.4M
Shares Outstanding 13.6M
Float 3.70M
Monday January 19, 11:29 am Eastern Time
Company Press Release
The Leap Partnership Named Agency of Record by Rockwell Semiconductor Systems
CHICAGO--(BUSINESS WIRE)--January 19, 1998--The Leap Partnership today announced it has been named agency of record for Rockwell Semiconductor Systems, a division of Rockwell International Corporation, Costa Mesa, Calif. Leap will handle advertising for Rockwell's personal communications, wireless communications, network access, personal imaging and digital infotainment divisions. Leap will manage the Rockwell account from its Santa Monica, Calif. office, moving key account and creative people from Chicago to staff the account.
Commenting on the appointment of Leap, Sharon Hamilton, Director of Marketing Communications for Rockwell Semiconductor Systems, said, ''We believe Leap's capabilities and their understanding of the communications technology industry make them a perfect partner for Rockwell Semiconductor Systems. Their past work demonstrates they have a unique combination of strategic insight, outstanding creative product and the ability to execute swiftly. That matches up well with Rockwell's current marketing and advertising needs.''
''We are thrilled to be working with the marketing team at Rockwell Semiconductor Systems,'' noted Thomas Sharbaugh, President of The Leap Partnership. ''It's a very dynamic company with enormous opportunities ahead of it in the communications industry, and their management group has a clear understanding of how to go about building the Rockwell brand.''
Rockwell is a global electronics company with leadership positions in industrial automation, semiconductor systems, avionics and communications, with projected FY97 sales of approximately $8 billion and 45,000 employees. Rockwell's world headquarters is located in Costa Mesa, in Orange County, Calif.
The Leap Partnership, a subsidiary of The Leap Group, Inc. (Nasdaq: LEAP - news) is a new generation, full-service advertising agency with a better process for creating work. Leap's clients include Anheuser-Busch Companies, Inc., Daewoo Motor America, One-On-One Sports, Ameritech, Playboy Enterprises, Armour Golf, and the University of Notre Dame. More information on The Leap Partnership can be found at leapnet.com.
--------------------------------------------------------------------------------
Contact:
LEAP PARTNERSHIP CONTACT
Thursday March 5, 8:43 pm Eastern Time
Company Press Release
The Leap Group Reports Earnings Turnaround With 4th Quarter Profit and Appoints Frederick A. Smith as Chairman and CEO
CHICAGO--(BUSINESS WIRE)--March 5, 1998--The Leap Group, Inc. (Nasdaq: LEAP - news) today reported a return to profitability for its fourth quarter ended Jan. 31, 1998, having gone from a net loss of ($0.22) per share in the third quarter ended Oct. 31, 1997, to net income of $0.01 per share in the fourth quarter.
The Company also announced the appointment of Frederick A. Smith as Chairman and CEO.
''This is a turning point for Leap as a company and we are thrilled to be reporting a quarterly profit thanks to a lot of hard work and the execution of our business plan,'' Smith commented. ''We have laid a foundation for a profitable fiscal 1999.''
Smith, citing expanded business from new and existing clients and Leap's current year acquisitions, reported that consolidated revenues increased 200% to $11.4 million for the fourth quarter ended Jan. 31, 1998, compared to $3.8 million for the same quarter a year ago. The Company reported net income of approximately $133,000 or $0.01 per share, for the fourth quarter ended Jan. 31, 1998, compared to net income of approximately $614,000, or $0.05 per share, for the same quarter a year ago.
''When we reported second and third quarter results, I stated Leap would implement targeted cost-reduction measures to bring costs in line with revenues, and that is exactly what we did'' Smith stated. ''Our management team will continue to carefully manage costs as we move forward through fiscal 1999.''
During the fourth quarter, The Leap Group completed the acquisition of certain assets of privately-held Kang & Lee Advertising, Inc., New York, and its West Coast operation, K&L West Advertising, Inc., Los Angeles. Subsequent to the acquisition, Leap established One World Communications, which combined the operating units of Kang & Lee and YAR Communications, Inc., New York, which was acquired in April 1997.
Leap Group subsidiaries, during the fourth quarter, added important new clients including Rockwell Semiconductor Systems and R.R. Donnelley.
For the fiscal year ended Jan. 31, 1998, revenues increased 90.6% to approximately $30.7 million, compared to $16.1 million in the comparable year-ago period. For the fiscal year ended Jan. 31, 1998, the Company reported a net loss of $5.6 million or ($0.41) versus net income of $1.3 million, or $0.12 per share, for the comparable year-ago period.
In addition to reporting financial performance, the Company announced today that Frederick A. Smith has been named Chairman and CEO of The Leap Group, Inc. Smith is assuming his position from R. Steven Lutterbach. Lutterbach resigned for personal health reasons and will continue to serve on the Company's Board of Directors.
In August, Smith, one of the company's founding partners, was unanimously elected Acting CEO by the Board of Directors. In addition, he holds the title of President, Quantum Leap Communications, (QLC) the new media and technology subsidiary of The Leap Group.
Prior to founding Leap in 1993, Smith (43) served in executive positions at DDB Needham, Chicago, Leo Burnett Co., Chicago, and Young & Rubicam, Chicago. As a strong proponent of new media and technology, he started QLC in January 1997. In one year, QLC has won high-profile assignments from top companies including American Airlines, MSNBC and R.R. Donnelley.
In his role as Acting CEO, Smith announced an aggressive cost-reduction plan during the 3rd quarter. Under his guidance, the Company has significantly reduced its costs in the Los Angeles operation of The Leap Partnership, as well as other operating units of The Leap Group.
In commenting on the management change, Lutterbach stated, ''Fred has demonstrated strong leadership in what has been a challenging time at Leap. He has taken the steps needed to bring this company back to profitability and I have the utmost confidence in his ability to continue to increase shareholder value.''
Smith noted, ''I am pleased that we were profitable in the 4th quarter, but I understand that this is one important step in the growth of our company. We have outlined a solid plan for this year. We will continue to work hard to generate additional revenues and carefully manage our costs in order to deliver value to our shareholders through earnings performance.''
The Leap Group, Inc., is a global strategic communications company focused on innovative consumer marketing, advertising, multimedia and Internet-related services and products. Its subsidiaries include The Leap Partnership, Quantum Leap Communications, and One World Communications, which joins YAR Communications with Kang & Lee Advertising and K&L West Advertising. Headquartered in Chicago, the Company has offices in New York, Los Angeles and San Francisco. More information on The Leap Group can be found at leapgroup.com.
This press release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. A number of important factors could cause the Company's actual results, performance or achievements for fiscal 1999 and beyond to differ materially from that expressed in such forward-looking statements. These factors are set forth in the Company's filings with the Securities and Exchange Commission and include, without limitation, material changes in economic conditions in the markets served by the Company's clients, competition in the Company's industry, uncertainties relating to the developing market for new media, changing technologies, seasonality and the Company's dependence on key clients and projects and key personnel. Loss of a key client or a significant reduction in business from a key client could have a significant adverse effect on the Company's business and results of operations.
The Leap Group, Inc. and Subsidiaries
Condensed Consolidated Statement of Operation
(Unaudited)
Three Months Fiscal Year
Ended January 31, Ended January 31,
(in thousands - 000's, 1998 1997 1998 1997
except for per share data)
Revenues $ 11,433 $ 3,808 $ 30,660 $16,088
Total operating expenses 11,059 3,389 40,050 14,702
Operating (Loss) income 374 419 (9,390) 1,386
Net interest (expense) income (78) 469 269 456
Net (Loss) Income Before
Income Taxes 296 888 (9,121) 1,842
Income tax benefit (expense) (163) (274) 3,510 (536)
Net (Loss) Income $ 133 $ 614 $ (5,611) $ 1,306
Net (loss) income per
share of common stock $0.01 $0.05 $(0.41) $0.12
Weighted average shares
outstanding 13,615 13,772 13,585 11,126 |
