Modem Media.Poppe Tyson, Inc. Announces Fourth Quarter and
Year-end Results
Fourth quarter revenues increase to $12.1 million, up 40.9% over fourth quarter 1997 revenues, on a pro forma basis;
net loss narrows to $0.14 per diluted share
WESTPORT, Conn.--(BUSINESS WIRE)--February 18, 1999-- Modem Media.Poppe Tyson, Inc. (Nasdaq:MMPT - news) today announced financial
results for the fourth quarter and year ended December 31, 1998.
On a pro forma basis, revenues for the fourth quarter were $12.1 million, an increase of 40.9% over revenues of $8.6 million in the fourth quarter of 1997,
and an 11.1% increase over third quarter 1998 revenues of $10.9 million. The fourth quarter loss before interest, taxes and goodwill amortization
(EBITA) narrowed to $0.8 million, or (7.0%) of revenue compared to a loss of $0.9 million, or (10.1%) of revenue in the fourth quarter of 1997 on a pro
forma basis. The pro forma fourth quarter operating loss was $1.3 million or (10.8%) of revenue, compared to a loss of $1.3 million, or (14.9%) of revenue
in the fourth quarter of 1997. The net loss for the quarter was $1.1 million, or $0.14 per diluted share, compared to a net loss of $1.3 million, or $0.16 per
diluted share, in the fourth quarter of 1997, on a pro forma basis.
On a pro forma basis, revenues for the fiscal year ended December 31, 1998 grew 44.6% to $42.5 million compared to revenues of $29.4 million for the
year ended December 31, 1997. The loss before interest, taxes and goodwill amortization (EBITA) was $1.6 million, or (3.7%) of revenue in 1998
compared to a loss of $2.0 million, or (6.9%) of revenue in 1997 on a pro forma basis. Pro forma operating loss was $3.3 million, or (7.8%) of revenue for
1998 compared to a pro forma operating loss of $3.7 million, or (12.6%) of revenue the previous year. The net loss for the year was $3.1 million, or $0.38
per diluted share, compared to a net loss of $3.9 million, or $0.48 per diluted share in 1997, on a pro forma basis.
The pro forma results of operations of Modem Media . Poppe Tyson, Inc. reflect the acquisition of the strategic interactive marketing operations of
Poppe Tyson, Inc. and the sale of certain non-strategic interactive marketing operations to True North Communications Inc., as if each had occurred on
January 1, 1997. The pro forma results of operations should not be viewed as an indication of the results of operations that would actually have been
achieved if these transactions had taken place on that date. Modem Media . Poppe Tyson's actual historical results of operations differ from its pro
forma results of operations. The actual historical results of operations are attached hereto, and should be read in conjunction with the pro forma results
of operations.
Modem Media.Poppe Tyson is a global leader in the digital marketing communications industry. The company enables global marketers to attract,
acquire and retain customers on the Internet by providing marketing strategy, consulting, technology, creative, and media services. Modem Media .
Poppe Tyson employs more than 400 professionals with offices in New York, San Francisco, Chicago, London, Hong Kong, Toronto and Westport,
Connecticut, with an affiliate office in Sao Paolo. Modem Media . Poppe Tyson has created internet marketing solutions for global brands such as
AT&T, Citibank, Delta Air Lines, E*Trade, IBM, JC Penney, John Hancock, Sony Computer Entertainment of America and Unilever. The Company's
website is located at modemmedia.poppetyson.com.
This press release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based on Modem
Media . Poppe Tyson's current expectations and assumptions, which are subject to a number of risks and uncertainties that could cause actual results
to differ materially from those anticipated. Primary factors that could cause actual results to differ are indicated in Modem Media.Poppe Tyson's filings
with the Securities and Exchange Commission.
MODEM MEDIA.POPPE TYSON, INC. PRO FORMA
STATEMENTS OF OPERATIONS
(In thousands, except share and per-share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
(Unaudited) (Unaudited)
Revenues $12,147 $8,623 $ 42,544 $29,422
Salaries and benefits 8,575 5,451 29,368 19,244
Office and general 4,420 4,041 14,729 12,217
Amortization of goodwill 460 417 1,768 1,666
Operating loss (1,308) (1,286) (3,321) (3,705)
Interest income
(expense), net 34 (37) 29 (121)
Loss before income taxes (1,274) (1,323) (3,292) (3,826)
(Benefit) provision for
income taxes (159) (48) (218) 66
Net loss $(1,115) $(1,275) $(3,074) $(3,892)
Basic and diluted net
loss per share:
Before amortization
of goodwill $(0.08) $(0.11) $(0.16) $(0.28)
After amortization
of goodwill $(0.14) $(0.16) $(0.38) $(0.48)
Weighted average
number of common
shares outstanding 8,073,000 8,072,000 8,072,000 8,069,000
Note: The pro forma results of operations of Modem Media . Poppe
Tyson, Inc. reflect the acquisition of the strategic interactive
marketing operations of Poppe Tyson, Inc. and the sale of certain
non-strategic interactive marketing operations to True North
Communications Inc., as if each had occurred on January 1, 1997. The
pro forma results of operations should be read in conjunction with
Modem Media . Poppe Tyson's actual historical results of operations,
which appear immediately below.
MODEM MEDIA . POPPE TYSON, INC. STATEMENTS OF OPERATIONS
(In thousands, except share and per-share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
(Unaudited)
Revenues $12,147 $7,472 $42,544 $25,497
Salaries and benefits 8,575 4,707 29,368 15,894
Office and general 4,420 2,876 14,729 9,038
Amortization of goodwill 460 417 1,768 1,666
Operating losses of
True North Units
Held for Transfer ----- 580 13 2,180
Operating loss (1,308) (1,108) (3,334) (3,281)
Interest income
(expense), net 34 (14) 29 (76)
Loss before income taxes (1,274) (1,122) (3,305) (3,357)
(Benefit) provision for
income taxes (159) (2) (102) (248)
Net loss $(1,115) $(1,120) $(3,203) $(3,109)
Basic and diluted net
loss per share:
Before amortization
of goodwill $(0.08) $(0.10) $(0.19) $(0.20)
After amortization
of goodwill $(0.14) $(0.15) $(0.43) $(0.43)
Weighted average
number of common
shares outstanding 8,073,000 7,262,000 7,465,000 7,260,000 |
