OMNI MULTIMEDIA GROUP, INC. ANNOUNCES THIRD QUARTER OPERATING RESULTS BUSINESS EDITORS MILLBURY, MASSACHUSETTS--(BUSINESS WIRE)--FEBRUARY 20, 1997-- OMNI MULTIMEDIA GROUP, INC. (AMEX: OMG) ANNOUNCED
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MILLBURY, MASSACHUSETTS--(BUSINESS WIRE)--FEBRUARY 20, 1997--
OMNI MULTIMEDIA GROUP, INC. (AMEX: OMG.A) announced today the
operating results for the third quarter ended December 28, 1996.
Net sales decreased to $4,009,797 for third quarter 1997, a
decrease of 46% over net sales of $7,409,591 in third quarter 1996.
This decrease was primarily due to the faster than expected decline
in demand for software duplication services for 3 1/2" diskettes,
which the Company believes to be industry-wide. This decline was
combined with the start-up phase of the Company's CD-ROM
manufacturing facility, which did not become fully operational until
the end of the second fiscal quarter.
In the third quarter, the Company brought its CD-ROM
manufacturing facility to productivity levels exceeding industry
standards, strengthened its sales force in all three of its locations
(Massachusetts, Minnesota and California) and completed the
acquisition and subsequent consolidation of Allenbach Industries, Inc.
The Company anticipates that these activities, combined with its
4CDs electronic catalog and its new encryption program, will result
in sales growth and improved performance in future quarters.
OMNI MULTIMEDIA GROUP, INC. offers publishers complete, turnkey
software manufacturing and distribution through its wholly-owned
subsidiaries, OMNI Resources Corporation and 4CD's Corporation. OMNI
Resources Corporation provides CD-ROM mastering and replication at
its 200,000 square foot state-of-the-art manufacturing facility. The
Company also provides four-color offset and screen CD printing, disk
duplication, in-house four-color documentation printing, packaging,
assembly, fulfillment and electronic channel services such as CD-ROM
encryption and online software downloading. The Company has
facilities in Massachusetts, California and Minnesota. 4CDs
Corporation publishes a unique online shopping service, the 4CDs
Multimedia Internet Catalog, providing marketing exposure and sales
for thousands of multimedia products via the Internet. Together, as
OMNI MULTIMEDIA GROUP, INC., these companies offer vertically
integrated software manufacturing, fulfillment and sales distribution
services to the software industry.
This release contains forward looking statements that involve
risks and uncertainties. In addition to historical information,
investors should carefully consider the risks associated with an
investment in the Company's securities as previously outlined by the
Company in its prior filings with the Securities and Exchange
Commission.
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OMNI MULTIMEDIA GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
Dec. 28, 1996 Dec. 30, 1995 Dec. 28, 1996 Dec. 30, 1995
Net sales $ 4,009,797 $7,409,591 $ 8,625,275 $ 15,121,368
Cost of
goods sold 4,402,877 5,545,520 10,274,001 11,329,189
Gross profit(loss) (393,080) 1,864,071 (1,648,726) 3,792,179
Operating expenses
Selling 1,371,084 532,370 2,986,717 1,503,979
General and
administrative 1,288,368 530,573 2,810,965 1,383,817
2,659,452 1,062,943 5,797,682 2,887,796
Income (loss)
from operations (3,052,532) 801,128 (7,446,408) 904,383
Other income 260,585 26,555 503,951 64,945
Interest expense 439,024 84,438 864,737 176,307
Write-off/deferred
finance costs - 91,777 - 91,777
Other expenses 234,350 1,200 303,124 2,445
Income(loss) before
income taxes (3,465,321) 650,268 (8,110,318) 698,799
Income tax
provision - 266,000 - 290,000
Income tax (loss) (3,465,321) 384,268 (8,110,318) 408,799
Primary net income
(loss) per share $ (0.44) $ 0.13 $ (1.55) $ 0.15
Primary weighted
average common
shares
outstanding 7,815,740 2,957,206 5,246,307 2,756,974
Fully diluted income
(loss) per share $ (0.37) $ 0.13 $ (0.95) $ 0.15
Fully weighted
average common
shares
outstanding 9,444,476 2,957,206 8,498,149 2,756,974
OMNI MULTIMEDIA GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
December 28, 1996 March 30, 1996
(unaudited) (audited)
Current Assets
Cash and cash equivalents $ 5,209,426 $ 5,706,822
Accounts receivable,net of allowance for
doubtful accounts of $250,000 @
December 28, 1996 and $25,000 @
March 30, 1996 3,131,729 1,306,212
Stock subscription -- 1,790,374
Inventories 1,299,909 966,665
Prepaid expenses/other current assets 841,545 812,103
Deferred tax assets, net 101,844 101,844
10,584,453 10,684,020
Property equipment,net 20,966,263 8,427,275
Due from related parties 661,872 532,761
Other assets, net 1,450,821 954,230
$33,663,409 $20,598,286
Condensed Consolidated Balance Sheet Continued
December 28, 1996 March 30, 1996
(unaudited) (unaudited)
Current Liabilities
Accounts payable $ 2,005,637 $ 1,775,225
Line of Credit 1,806,315 1,068,967
Current portion of long-term debt
and capital lease obligations 2,888,000 1,025,600
Accrued expenses 925,212 332,561
Income taxes payable - 190,063
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7,625,164 4,392,416
Long term debt 4,377,142 2,207,479
Capital lease obligations 8,665,123 1,760,919
Deferred tax liability 141,761 141,761
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13,184,026 4,110,159
Stockholders' Equity
Convertible Preferred Stock; $.01 par value;
1,000,000 shares authorized; 14 Series A
shares issued and outstanding 1 -
Common stock; $.01 par value;
14,000,000 shares authorized;
9,444,476 shares issued outstanding
at December 28, 1996 38,909 38,899
Additional paid in-capital 21,138,646 11,635,675
Retained earnings (accumulated deficit) (7,689,181) 421,137
______________ ____________
13,488,375 12,095,711
Less cost of treasury stock (634,156) -
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12,854,219 12,095,711
$ 33,663,409 $ 20,598,286
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--30--hk/ny*
CONTACT: PAUL F. JOHNSON, PRES., (508) 865-4451
or ROBERT E. LEE, EXEC V-P,CFO, (508) 865-4451
or
ADRIAN MADONIA, PR, (908) 788-9660
KEYWORD: MASSACHUSETTS CALIFORNIA MINNESOTA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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