NEWS RELEASE:
April 20, 1999 09:46
Group V Corporation Reports Fiscal 1998 Results
SAN FRANCISCO--(BUSINESS WIRE)--April 20, 1999--Group V Corporation (OTC BB: GRPV) today reported its audited financial results for the year ended June 30, 1998.
Fiscal 1998 revenues were $552,472; there were no revenues during the comparable period last year. Net income for the year ended June 30, 1998 improved to $(3,104,920), or $(.06) per share, from $(3,472,839), or $(.09) per share, during fiscal 1997. As of June 30, 1998, the Company had total assets of $1,067,497 and 49,889,880 weighted average common shares outstanding.
"The revenue stream that began during fiscal 1998 accelerated in the first half of fiscal 1999 and is expected to further increase in fiscal 1999 and beyond," said Company Chairman and CEO Joseph Monterosso.
"Forces driving this growth include aggressive marketing at our Academy Network Services subsidiary that was established prior to the close of fiscal 1998, as well as our private placement that provides funds to expand marketing efforts and business development for all three of our wholly-owned subsidiaries." Monterosso added, "As we approach the close of fiscal 1999, Group V is a stronger company that is better capitalized, supplies a larger customer base, and has expanded both operations and revenues."
The Company reported that it expects cash provided from operating activities to increase during fiscal 1999 as the products sold by its wholly-owned subsidiaries gain market acceptance. The Company's private placement, which was completed during the third quarter fiscal 1999, is expected to enable the immediate expansion of Group V's wholly-owned subsidiaries: National Pools Corp. (NPC), Academy Network Services (ANS), and Lottery Publications Corp. (LPC). This expansion is expected to positively impact the Company's fiscal 1999 results and notably improve its results during fiscal 2000, which begins July 1, 1999.
Highlights of fiscal 1999 achievements at ANS include the receipt of a $1.1 million order from Worldwide Prepaid, Inc., delivery of an $8.4 million order for pre-paid phone cards, and expectations to book roughly $1.0 million in gross monthly sales through a new distributor program. ANS also reduced long distance telephone rates and partnered with an Internet telephony provider, thus advancing the subsidiary's online presence and opening long distance access in major international markets.
NPC developments during fiscal 1999 include the reduction of both domestic and international rates on its HitLoTTo(R) Club Card. The subsidiary also forged an alliance with an Internet marketing firm to promote its new virtual HitLoTTo product that targets international players over NPC's retail website, which is expected to be available by the end of fiscal 1999.
Monterosso noted that, during fiscal 2000, the Company plans to continue pursuing strategic joint venture, merger, or acquisition opportunities that may provide additional capital resources. "We continue to target and gain early market presence in some of the most dynamic telecommunications and Internet sectors," Monterosso concluded. "In order to fully capitalize upon these opportunities in this fast-paced industry, it is necessary to combine our marketing and internal expansion efforts with a keen eye on future developments and strategic relationships or mergers."
Group V Corporation
Condensed Consolidated Balance Sheet
As of June 30, As of June 30,
1998 1997
Total current assets $ 319,521 $2,179,983
Total assets $1,067,497 $2,780,699
Total current liabilities $2,842,874 $ 793,803
Total shareholders' equity $(2,372,585) $ 786,896
Group V Corporation
Condensed Consolidated Statement of Operations
Year ended June 30, Year ended June 30,
1998 1997
Revenues $ 552,472 --
Total costs and expenses $ 3,650,501 $ 4,267,157
Net income (loss) $ (3,104,920) $ (3,472,839)
Net income (loss) per share $ (.06) $ (.09)
Wtd. avg. shares outstanding 49,889,880 40,059,880
Group V Corporation is a diversified telecommunications company specializing in some of the world's most profitable market segments, including one plus, toll free long distance, and pre-paid phone card products. Group V has created a network of complementary companies, many of which offer products and services of their own and develop or deliver the products of companies within the Group V family.
Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
CONTACT: Group V Corporation
John Steward, 415/575-0222 |
