I will get tired of this soon. - Bill
Greg Manning: Announces Year End Results
For Immediate Release:
Greg Manning Announces Fiscal Year End Results
Record Fourth Quarter Profit of $975,712
West Caldwell, NJ, September 28, 1998 - Greg Manning Auctions, Inc.(NASDAQ-GMAI) today announced fourth quarter and fiscal year end results. Greg Manning, CEO and Chairman, stated, "The first six months of our fiscal year were characterized by low sales volume resulting from an industry-wide lack of marketable consignments, which occurred after our strong $13,000,000 aggregate sales fourth quarter in fiscal 1997, and was highlighted by our four auctions at the international exhibit, PACIFIC '97. By January 1998, business had returned to normal and we had a second half that almost erased the losses incurred in the abnormally slow initial six months." He continued, "We are particularly pleased that the move of our subsidiary, Ivy & Mader Philatelic Auctions, Inc. to New Jersey from New York City resulted in significant expense savings without affecting the Ivy & Mader auctions sales, which went extremely well in the 3rd and 4th quarters of fiscal 1998."
Greg Manning stated, "We are currently working on sharply increasing our visibility on the Internet, and on conducting interactive auctions both on the Internet and through touch-tone telephones. We will not use the same methodology as E-Bay Auctions, as we are interested in protecting both our buyers' and sellers' identities and e-mail addresses. We expect to be doing a significant amount of business through electronic auctions in this fiscal
year."
A record pre-tax profit of $975,710 was earned in the fourth quarter of fiscal 1998, ending on June 30th. This, combined with a solid third quarter, gave the company pre-tax profits of $1,200,040 for the 1998 fiscal year's second half. The 1998 fiscal year closed with $22,487,000 in aggregate sales and a loss of $231,552 for the year.
Expenses, including interest, were reduced by $771,125 in fiscal 1998. These expense reductions will continue to have an ongoing positive impact, as they were recurring expenses. In addition to profits from operations, the company gained $672,452 income on the sale of PICK Communications stock (NASDAQ-PICK). At fiscal year end, the company owned 2,382,289 shares of PICK with a market value of $289,654 and a cost of $137,643.
Subsequent at year end, the company acquired for cash a significant inventory of fine art, with a retail value in excess of $29,000,000. This art inventory will be sold at discount prices and is expected to have a positive impact on fiscal 1999.
Greg Manning Auctions, Inc. is one of the largest specialty stamp auction houses in the world. In addition to stamps, GMAI auctions sports cards and sports memorabilia. Greg Manning Auctions, Inc. common stock is traded on the NASDAQ Small Cap system under the symbol GMAI, and on the Boston Stock Exchange
under the symbol GGM.
Statement under the Private Securities Litigation Reform Act
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements which involve risk and uncertainties that may individually or mutually impact the matters herein
described, including but not limited to, product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors which are outside the control of the company.
For further information contact:
James Smith - Chief Financial Officer
973-882-0004
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