You would think this would be good for the stock!
FOR IMMEDIATE RELEASE
THE LEAP GROUP REPORTS
SECOND CONSECUTIVE PROFITABLE QUARTER
CHICAGO, June 18, 1998 -- The Leap Group, Inc., (NASDAQ: LEAP) today announced its second consecutive profitable quarter, according to Frederick A. Smith, Leap Group Chairman and CEO.
Consolidated revenues increased 132% to $10.4 million for the first quarter ended April 30, 1998, compared to $4.5 million for the same quarter a year ago. The Company reported net income of $14,986, for the first quarter ended April 30, 1998, compared to a net loss of $1.15 million or ($0.08) per share, for the same quarter a year ago.
Frederick A. Smith, Leap Group Chairman and CEO commented, "I am pleased with our performance in the first quarter. We have been working very hard to reverse the losses we experienced last year. We continue to pursue new clients and expand relationships with existing clients."
Smith further noted, "During the first quarter we also significantly improved our cash position and consider that an ongoing priority. Throughout the year we will continue to focus on managing our costs, increasing revenues through expansion and diversification, and maintaining profitability. It is our goal to to deliver profitable results as we move through fiscal 1999 and take steps to enhance shareholder value."
The Leap Group, Inc., (Nasdaq: LEAP) is a creatively focused advertising holding company providing innovative consumer marketing, advertising and Internet-related services and products. Its subsidiaries are The Leap Partnership, Quantum Leap Communications and One World Communications, which combine the operations of YAR Communications, acquired in April 1997, and the operations of Kang & Lee Advertising, acquired in November 1997. 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 http//:www.leapgroup.com.
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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.
Contact: Beth Pastor
312-494-3850
pastor@leapnet.com
Financial Information Follows
THE LEAP GROUP, INC. AND SUBSIDIARIES
Summary Quarterly Financial Data
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months
Ended April 30,
(in thousands - 000's) 1998 1997
Revenues 10,375 4,471
Total operating expenses 10,246 6,742
Operating income 129 (2,271)
Net interest income (expense) (97) 421
Net Income/(Loss) Before Income Taxes 32 (1,850)
Income tax (expense)/benefit (17) 700
Net Income/(Loss) 15 (1,150)
Net income/(loss) per share:
Basic $0.00 ($0.08)
Diluted $0.00 ($0.08)
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