The Experiential Agency Announces Year End Results and Provides Update Regarding Investor Relations Materials
24 April 2004 - 8:30AM
PR Newswire (US)
The Experiential Agency Announces Year End Results and Provides
Update Regarding Investor Relations Materials CHICAGO, April 23
/PRNewswire-FirstCall/ -- The Experiential Agency, Inc. ("XA" or
the "Company") (Nasdaq; OTC Bulletin Board: EXAG) a major national
event marketing firm that serves many Fortune 500 companies,
reported its results for the year ended December 31, 2003. Sales
revenue for the fiscal year ended December 31, 2003 increased
$1,852,343 (or 51%) to $5,468,895 as compared to $3,616,552 for the
fiscal year ended December 31, 2002. Cost of goods sold as a
percentage of revenue for the year ended December 31, 2003
decreased to 46% of gross revenue at $3,388,816 as compared to 64%
of gross revenue at $2,326,406 for the fiscal year ended December
31, 2002. Gross profit increased $789,933 or 61% from $1,290,146
for the year ended December 31, 2002 to $2,080,079 for the year
ended December 31, 2003. Gross profit as a percentage of sales
increased to 38% for the fiscal year ended December 31, 2003 from
36% for the fiscal year ended December 31, 2003. Income from
operations increased $131,000 from a loss from operations of
$75,283 to income from operations of $55,717. Net income increased
$89,422 from a net loss of $75,138 for the year ended December 31,
2002 to net income of $14,284 for the year ended December 31, 2003.
The substantial increase in revenues was due to new clients
acquired in the New York and Los Angeles markets and additional
projects with XA's current clients. The shift from a net loss to
net income was due to the increased revenues and the decrease in
cost of goods sold as a percentage of revenues. Financial
highlights, in thousands of US dollars (except percentage and per
share data), are: THE EXPERIENTIAL AGENCY CONSOLIDATED INCOME
STATEMENT For the Years Ended December 31, 2003 and 2002 2003 2002
------------ ------------ Revenues Sales $ 5,468,895 $ 3,616,552
Cost of goods sold Direst production costs 3,388,816 2,326,406
------------ ------------ Gross profit 2,080,079 1,290,146
Administrative expense 2,024,362 1,365,429 ------------
------------ Income from operations 55,717 (75,283) Other income
and expenses Interest income (750) (1,561) Other expenses 42,183
1,416 ------------ ------------ 41,433 (145) ------------
------------ Net Income (Loss) $ 14,284 $ (75,138) ============
============ Earnings (loss) per share $ - $ - Average shares
outstanding 37,383,336 35,987,003 "We are very excited about our
financial results and our continued expansion both nationally and
globally," stated Frank Goldstin, the Company's Chief Executive
Officer. "We are embarking on an aggressive expansion plan which we
believe will position XA as a leader in the event management
industry," further stated Goldstin. Investor Relations Update The
Company has been provided with investor relations materials
prepared and distributed by a third party. The Company did not pay
for the preparation and distribution of the materials that were
prepared. Principals of the Company previously shared information
about the Company with individuals in connection with a reverse
merger transaction and there is information about the Company on
its SEC filings. A third party made statements that shares in the
Company could rise 400% and 500% during various time frames. The
Company does not make any predictions regarding share price and
disclaims any association or predictions regarding its share price
made by third parties. The third party stated that the Company has
"over $6 million in annual revenues" when in fact the Company had
revenues of approximately $5.5 million for the year ended December
31, 2003. The third party computed various price/sales ratios and
made comparisons based on 50.6 million shares outstanding, when the
Company has approximately 58 million shares outstanding. In
addition, the comparisons do not take into account the issuance of
additional shares for acquisitions. The Company and its management
did not pay for or approve the information prepared and released by
such third party. The Company has seen an increase in volume in the
trading of its stock and wants to advise investors to be cautious
about the origin of information about the Company. Insiders of the
Company are not buying or selling shares and they own only
restricted securities. About XA The Experiential Agency, Inc. with
offices in Chicago, Los Angeles, and New York, is a leading
provider of event services for corporations, associations, and
other organizations in the United States and internationally. The
firm is vertically integrated to offer clients a single source
solution for their business communications and event management
needs. The firm's services include event marketing, design and
production, meetings, conferences and trade shows, entertainment
and show production, business theater, mobile marketing,
audio/visual production, and logistics management. Additional
information on XA can found at the Company's web site
http://www.expagency.com/. In 2003, XA was ranked one of the "Top
50 Powerhouse Event Companies in the World" by Special Events
Magazine, as well as one of the "Top Event Marketing Agencies" by
Event Marketer Magazine. Today, XA is focused on taking major
corporate meetings and product marketing events to new levels of
audience experience through sensory marketing -- touch, taste,
sight, sound, and smell. This sensory marketing capability enables
audiences to "live the event" -- not just hear or see a business
message. The XA team has been the creative force behind prestigious
live, sensory events for clients such as McDonald's Corporation,
Song Airlines, Salvatore Ferragamo, Vogue, W Hotels and ABN AMRO.
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. In
particular, when used in the preceding discussion, the words
"believes," "expects," "intends," "will," "anticipated," or "may,"
and similar conditional expressions are intended to identify
forward-looking statements within the meaning of the Act and are
subject to the safe harbor created by the Act. Except for
historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward-looking
statements that involve a number of risks and uncertainties. It is
possible that the assumptions made by management are not
necessarily the most likely and may not materialize. In addition,
other important factors that could cause actual results to differ
materially include the following: business conditions and the
amount of growth in the company's industry and general economy;
competitive factors; ability to attract and retain personnel; the
price of the Company's stock; and the risk factors set forth from
time to time in the Company's SEC reports, including but not
limited to its annual report on Form 10-KSB; its quarterly reports
on Forms 10-QSB; and any reports on Form 8-K. The Experiential
Agency, Inc. takes no obligation to update or correct
forward-looking statements and also takes no obligation to update
or correct information prepared by third parties that is not paid
for by the Company. DATASOURCE: The Experiential Agency, Inc.
CONTACT: Pat Gitt of Rubenstein Associates, Inc. Public Relations,
+1-212-843-8038, for The Experiential Agency, Inc.
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