max90 THNK earnings came out on Aug 5
THNK -- Think New Idea --
To: Serry Habash (439 )
From: Rick Hudson
Wednesday, Aug 5 1998 9:13PM ET
Reply # of 442
Sherry,
Ask and yee shall receive!
Regards, Rick
-----------------------------------------------------------
Wednesday August 5, 5:59 pm Eastern Time
Company Press Release
THINK New Ideas Announces Fourth Quarter and Fy98 Results,
With $0.09 EPS in Quarter
Quarterly Revenues Increase 183% From Previous Year
NEW YORK--(BUSINESS WIRE)--Aug. 5, 1998--THINK New Ideas, Inc.
(NASDAQ NMS: THNK;
www.thinkinc.com) reported revenues for the fourth quarter grew to $14.7 million, a
183 percent increase from $5.2
million in the year-ago period and a 35 percent increase over the fiscal 1998 third
quarter. Full-year revenues grew
145 percent to $42.6 million, from $17.4 million in the prior year.
Pro forma net income for the fiscal 1998 fourth quarter, which ended June 30, 1998,
was $770,000, or $0.09 per
diluted share excluding the effect of special items totaling $29.3 million discussed below,
compared to a pro forma
net loss of $3.2 million, or $0.74 per diluted share excluding the effect of a restructuring
charge of $1.7 million in
the fourth quarter of fiscal 1997.
For the full year, THINK reported pro forma net income of $1.96 per share on a
diluted basis excluding the effect
of special items totaling $29.5 million discussed below, compared with pro forma net
loss of $5.8 million or $1.25
per share in the prior year excluding the effect of a restructuring charge of $1.7 million in
the fourth quarter of
fiscal 1997.
''Our 1998 fiscal year has been a time of accomplishment both externally and internally
for THINK New Ideas,''
said Ron Bloom, THINK Chairman and Chief Executive Officer. ''Quarterly revenues
have grown more than 183
percent, with contribution organically and through accretive acquisition; we have
established new relationships
with world-class clients and partners while increasing business with many of our current
clients; we have
received recognition from our industry, our clients and our peers. Operationally, we
have reached and increased
profitability over four consecutive quarters, established global networks for business
development, account
services and finance, enhanced the quality of THINK managers and staff, and began to
establish a worldwide
presence for THINK. These were all goals that we established in our 1998 mission, and
we are delighted to have
performed so well toward them.''
Bloom continued, ''Perhaps most important for THINK is that we have taken our place
as a leader in the emerging
world of interactive marketing, providing leading-edge solutions for a growing list of
world-class clients that, this
year, included Pioneer, IBM, Gillette, Network Associates, Procter and Gamble,
Oracle, Hewlett Packard, and
others. We have and will continue to sharpen our corporate focus on providing leading
edge interactive
marketing and business solutions while making ourselves critical to the success of our
clients' strategic marketing
and technology efforts. Management believes that our ability to deliver increasingly
mission-critical integrated
marketing and technology solutions, from consulting through implementation, to a
high-profile client list, with
consistent profitability will continue to establish and maintain THINK's leadership role in
our arena.''
''We are moving quickly to integrate our acquisitions into our model of THINK as a
broad-based provider of
interactive marketing and business solutions,'' said Adam Curry, Chief Technology
Officer of THINK. ''From a
technology standpoint, we are constantly evolving our abilities to develop and deploy
mission-critical,
enterprise-wide solutions, with a primary focus on e-commerce and other
e-technologies.''
''Fiscal 1998 was a positive year for THINK for many reasons,'' said Mel Epstein,
Chief Financial Officer of
THINK. ''We have focused on building an organizational model that can support our
goals in growth, service,
support and profitability, and we feel we have made great progress in several key
measurements the company
uses to chart its progress toward becoming the leading provider of interactive marketing,
communications and
business solutions: establishing and maintaining profitability; increase in revenue growth;
organic growth and
growth through acquisition. We also are pleased by the growth in our strategic
consulting group, which has
undertaken projects for such clients as Gillette, Tru-Serv, Silicon Graphics and
members of the Omnicom family,
an affiliate of THINK (Omnicom-related revenue equals approximately $600,000, or
1.1 percent of gross revenue
for fiscal year 1998 and 4.5 percent of revenue for fourth quarter 1998).'' Excluding
acquisitions, fourth-quarter
revenues increased 76 percent over the prior year to $9.2 million, reflecting THINK's
strong internal growth.
Full-year revenues excluding acquisitions increased 70 percent to $30.3 million.''
Epstein added that, as previously represented in company filings and anticipated in
discussions with analysts,
fourth-quarter and full-year earnings were affected by a number of one-time items.
These were:
A release to the founders of the company of the shares placed in escrow at the time of
the company's
initial public offering and subject to release only upon the attainment of certain
performance criteria on
behalf of the Company. These performance criteria were achieved and the shares were
released to the
founders, resulting in a pre-tax non-cash charge to earnings of $21.7 million in the fourth
quarter of FY98,
the impact of which had been referenced and anticipated in all pertinent filings including
the original
registration statement and further 10Q statements.
As part of the company's strategic focus on providing interactive marketing and business
solutions, there
was a one-time pre-tax charge of $920,000 related to the restructuring and closing of its
traditional graphic
design departments in its older offices.
As part of a severance package granted to its former chairman and chief executive
officer, the company
took a pre-tax charge of $1.69 million, primarily non-cash, related to the acceleration of
options
A $5.2 million non-recurring charge for in-process research & development purchased
in the acquisitions
of two leading interactive companies, Interweb, in Atlanta, and Netcoms, in London
''THINK's outlook for continued growth is excellent,'' Epstein said. ''We continue to
form long-term partne rships
with some of the best-known brands in the world to help them to gain competitive
advantage in the information
age.''
ABOUT THINK
THINK New Ideas, Inc., The Marketing and Communications Company for the
Information Age, with offices in
Los Angeles, New York, Atlanta, Boston, San Francisco, Seattle, London and Sofia,
Bulgaria, provides marketing,
technology and interactive business solutions to Fortune 500 and other high-profile
clients. THINK is also
positioned as one of the leading Internet and Intranet systems developers and interactive
communications
solutions providers in the emerging new technology and digital communications arena.
The company's integrated
solutions include the development of several proprietary Internet, Intranet tools and
applications including
WebMechanic, E-corp, ASAP, and X-Tracker, each providing specific solutions to
business problems commonly
faced by large corporations.
For more information about THINK New Ideas, please go to www.thinkinc.com.
This press release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act
of 1995. Readers are cautioned not to place undue reliance on these forward-looking
statements. These
forward-looking statements involve risks and uncertainties, including the timely
development and market
acceptance of new products and upgrades to existing products, the impact of
competitive products and pricing,
and other risks detailed from time to time in the Company's filings with the Securities
and Exchange Commission
(SEC). In particular, see the Company's Form 10-KSB filed with the Securities and
Exchange Commission for the
year ended June 30, 1998.
Contact: Brian Czarny Ned Maniscalco THINK New Ideas, Inc. Fleishman-Hillard
Inc. 212-216-0146 314-982-1776
brian.czarny@thinkinc.com maniscan@fleishman.com
THINK New Ideas, Inc. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
Three Months Ended Twelve Months Ended
6/30/98 6/30/97 6/30/98 6/30/97
(unaudited)(unaudited)(unaudited)(unaudited)
Revenues $ 14,651 $ 5,183 $ 42,644 $ 17,437
Net loss $(28,747) $(5,393) $(27,553) $ (7,571)
EPS (3.89) (0.95) (4.36) (1.63)
Weighted average shares
outstanding 7,385 5,672 6,315 4,638
Selected Balance Sheet Items
(Unaudited)
6/30/98 6/30/97
Total current assets $ 26,256 $ 17,120
Total assets $ 52,253 $ 21,402
Total current liabilities $ 19,140 $ 9,041
Total liabilities $ 19,750 $ 10,028
Total shareholders' equity $ 32,503 $ 11,374
Working capital $ 7,116 $ 8,079
Three Months Ended Twelve Months Ended
For analysis purposes only: (a) 6/30/98 6/30/97 6/30/98 6/30/97
------- ------- ------- -------
Pro forma net income per share
excluding special charges
Net income (loss) $ 770 $(3,200) $ 1,964 $ 5,800
Earnings (loss) Per Share 0.09 0.74 0.27 1.25
Fully diluted weighted
average shares outstanding 8,945 5,672 7,263 4,638
(a) Net Income excludes $29.5 million and $1.7 million of special
charges in 1998 and 1997, respectively.
Contact:
Brian Czarny Ned Maniscalco
THINK New Ideas, Inc. Fleishman-Hillard Inc.
212-216-0146 314-982-1776
brian.czarny@thinkinc.com maniscan@fleishman.com
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