To: Joana Tides who wrote (9 ) 12/10/1998 8:56:00 PM From: Kurt_Ruckus Respond to of 244
More MSGI earning info from Yahoo... FYI, Revenue for the fourth quarter was at record levels and was up more than 129% to $18,277,089 as compared to $7,998,657 for the fourth quarter one year ago. Net income for the fourth quarter was $350,374 as compared to $359,215 one year ago. During the fourth quarter, the company formed a new subsidiary, Metro Fulfillment, which had a $173,962 loss from its first two months of operations. Adjusted net income for the fourth quarter excluding the adverse effect from the Metro Fulfillment startup would have been $524,335. Revenue for the first quarter was up 136% to $17,152,928 as compared to $7,254,619 for the first quarter one year ago. Net income for the first quarter was ($497,011) as compared to ($96,679) for the first quarter one year ago. The entire loss is related to Metro Fulfillment, which had a $587,119 loss for the quarter. Adjusted net income for the first quarter excluding the adverse effect from the Metro Fulfillment startup would have been $90,108. Per Jeremy Barbera, "We are of course, very focused on the erosion caused by Metro Fulfillment, which concluded its first complete quarter of operations. Immediate restructuring efforts have already been implemented on an operational level and strategic alternatives are under consideration for this subsidiary." In talking with the Investor Relations Department the other day, Robbie Raffish mentioned that MSGI was diligently working to make Metro Fulfillment a profitable subsidiary. She mentioned that their losses were diminishing and, according to Jeremy Barbera, "Our goal this year is to bring our newest subsidiary, Metro Fulfillment, to profitability in its first year of operations, while beginning to stem the effects of seasonality on our other business. We fell well positioned to move ahead profitably in FY99." Analysts are projecting a 0.06 profit in the current quarter and a 0.26 profit for FY99. Since they lost 0.06 in their first quarter and plan to make 0.06 in their second quarter, that means a 0.26 profit in the third and fourth quarters combined. Based on all of the positive press releases, I would have to say that MSGI is well on it's way to profitability. Jeremy Barbera has also stated that their business is currently a little seasonal with their best quarters usually coming in the their 2nd and 4th quarters with dips in their 1st and 3rd quarters. After talking with Investor Relations, I was under the impression that profits from the other four subsidiaries would more than offset any losses incurred at Metro Fulfillment. And obviosly with a 0.26 profit projection from the anaylysts, they also believe that MSGI has solved a lot of problems over at Metro Fulfillment. Good Investing!! Double Digit