As promised: MDI Entertainment Inc. Reports Record Second Quarter Results
Revenue Increased 631 Percent
Net Income Up 252 Percent
HARTFORD, Conn.--(BUSINESS WIRE)--Jan. 11, 1999--MDI Entertainment Inc. (OTC BB:MDIH) announced today record results for the second quarter ended Nov. 30, 1998.
Total revenues for the second quarter ended Nov. 30, 1998, were $2,003,929, compared to $317,495 for the same period 1997. Net income for the quarter was $421,650, or $0.05 per share, versus $(278,126), or $(0.04) per share in 1997.
Commenting on the announcement, Steven Saferin, president and CEO of MDI Entertainment Inc., said, ''Our record results for the second quarter reflect the success of our strategy to become the leading provider of licensed promotions of well-known entertainment properties and brand names to the lottery industry. The Company is highly confident of continued revenue acceleration for the rest of the fiscal year.''
MDI Entertainment Inc. specializes in creating, marketing and implementing entertainment-based promotions to the North American lottery industry. MDI Entertainment Inc.'s current lottery promotions include scratch games, featuring properties such as Harley-Davidson, Star Trek, Wheel of Fortune, Twilight Zone and the Rock and Roll Hall of Fame and Museum. A significant aspect of MDI Entertainment's promotion is the awarding of merchandise tied to the various properties as prizes.
The Private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by MDI) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the lottery industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of MDI. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, changes in federal or state tax laws and market competition factors.
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MDI Entertainment Inc. and Subsidiaries
Consolidated Statements of Operations
Three Months ended
November 30,
1998 1997
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(unaudited) (unaudited)
Revenue $2,003,929 $ 317,495
Cost of revenue 1,072,067 193,241
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Gross profit 931,862 124,254
Selling, general and
administrative expenses 484,775 400,833
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Operating income (loss) 447,087 (276,579)
Interest (income) expense, net (4,935) 488
Other expense, net 192 2,760
Minority interest -- (1,751)
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Net income (loss) before
income tax expense 451,830 (278,076)
Income tax expense 30,180 50
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Net income (loss) $ 421,650 $ (278,126)
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Basic earnings (loss)
per common share $ 0.05 $ (0.04)
Diluted earnings (loss)
per common share $ 0.05 $ (0.04)
Contact:
MDI Entertainment Inc.
Steven Saferin, 860/527-5359
or
The Pinnacle Group
Mark Cohen, 516/773-2477
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