CMG Holdings Reports Strong Second Quarter Results and Provides Update
14 August 2019 - 1:00AM
InvestorsHub NewsWire
CMG Holdings Reports Strong Second
Quarter Results and Provides Update
Revenues of $1MM+ up 358% YoY,
Profitability Maintained
XA Sales Funnel Builds with Multiple Seven-Figure Contract Bids
Progressing
Approved 100MM Share Repurchase and Began Returning Capital to
Stockholders
Company Pursuing Legal Action Against Former
Attorneys
Chicago, IL -- August 13, 2019 -- InvestorsHub
NewsWire -- CMG Holdings Group, Inc. (CMGO/OTC)
today released strong second quarter 2019 results and provided a
shareholder update from the Office of the CEO, Glenn
Laken:
“As you
can see, CMG executed well during the three-month period ended June
30, 2019. Total revenues of $1.06MM were up 358% YoY from
$232K in the prior year’s same period aided by strong execution and
financial management. The Company generated a net profit of
$481K up significantly from a loss of ($183K) in 2Q18. We
remain debt free at the XA level leaving the business in a great
position going forward. XA’s fundamentals are improving and
the unit has a very clean capital structure, which are the best of
both worlds.
CMG
finished the quarter with a cash position of $409,589, and with
XA’s return to profitability this year and another two years of
payments expected from a substantial litigation settlement in the
March quarter, CMG is only getting stronger as the days go
by.
We are
pursuing legal remedies for monetary damages with two of the former
attorneys for CMG in its lawsuit which was resolved in January.
Discussions of settlement are underway, and if that does not
bring closure, we will be filing suit in the near future. More
details will be released as they become
available.”
Additionally, CMG would like to give an update
on its business outlook. During the quarter, XA, the
Company’s operating subsidiary, closed a six-figure contract with a
world-renowned clothing retailer which has the potential to become
a seven-figure relationship after its initial scope of work is
completed. Further, XA continues to work with several new
clients on installations each to be in excess of $1 million and
expects to close at least a couple of these opportunities this year
which will become 2019 and 2020 business. XA continues to see
clients returning with $50K - $100K jobs on a continual basis,
which builds its book of business and provides visibility to future
results.
Said
Laken: “Overall, we have returned XA to strong growth and sustained
profitability, which management projected heading into this
year. With this operational momentum and our expected cash
proceeds from non-operating activities, the Company is in the best
state of operational health and liquidity position it has enjoyed
in years. I believe we have laid the foundation for a great
future for the Company and expect to create substantial value for
shareholders in the future. For these reasons, our Board of
Directors approved a 100 million share repurchase program, which we
initiated in June and which continues to be executed
today.”
Management has posted CMG Holdings’ last two
years of financial statements on a recently-designed CMG website
at https://www.cmgholdingsinc.com
and filed them with
OTCMarkets.com, bringing the Company current with its
financial reporting requirements and removing YIELD and STOP signs
that have been hindrances to investors in the Company’s stock over
the past few years.
About
CMG Holdings Group, Inc.
CMG
Holdings Group, Inc. is a Chicago holding company whose primary
operating subsidiary is XA – The Experiential Agency, Inc.
(http://www.experientialagency.com) - which engages in
the alternative advertising, digital media, experiential and
interactive marketing, and entertainment sectors. XA is
involved in production and promotion, event design, sponsorship
evaluation, negotiation and activation, talent buying, show
production, stage and set design, and data analysis and management
activities. The business also offers branding and design
services, such as graphic, industrial and package designs across
traditional and new media, public relations, social media, media
development and relations, and interactive marketing platforms to
provide its clients with customary private digital media networks
to design and develop individual broadcasting digital media
channels to sell, promote, and enhance their digital media video
content through mobile, online, and social mediums. XA serves
clients across the marketing communication industry.
Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a
subsidiary formed to manage its portfolio
investments.
Disclosure Statement
Statements in this press release about our
future expectations, including without limitation, the likelihood
that CMG Holdings Group, Inc. will meet minimum sales expectations,
be successful and profitable, bring significant value to its
stockholders, and leverage capital markets to execute its growth
strategy, constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934, and as that term is defined
in the Private Litigation Reform Act of 1995. Such forward-looking
statements involve risks and uncertainties and are subject to
change at any time, and our actual results could differ materially
from expected results. The Company undertakes no obligation to
update or release any revisions to these forward-looking statements
to reflect events or circumstances after the date of this statement
or to reflect the occurrence of unanticipated events, except as
required by law. CMG’s business strategy described in this press
release is subject to innumerable risks, most significantly,
whether the Company is successful in securing adequate financing
and materially decreases its convertible debt. No information in
this press release should be construed in any form shape or manner
as an indication of the Company’s future revenues, financial
condition or stock price.
Contact
Glenn
Laken
CEO
CMG
Holdings Group, Inc.
(773)
770-3440
ceo@cmgholdingsinc.com
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