IMMG: IMPART Media Group to Change Advertising Revenue Recognition Practices of Acquired Business
By PR Newswire
Last Update: 5/19/2006 12:05:37 PM
Data provided by
SEATTLE, May 19, 2006 /PRNewswire-FirstCall via COMTEX/ -- IMPART Media Group, Inc. (IMMG), an innovator in the creation of out-of-home digital advertising content and information network management, announced today that it has changed the manner in which it records advertising revenue for its newly- acquired E&M Media Advertising (E&M) business, however the change does not affect profitability. For over twenty years E&M recognized revenue from its media placements on a gross basis, recording the total dollar amount of the media placements it sold to its customers. In connection with an accounting audit of E&M's 2005 financial statements which were filed with the Securities and Exchange Commission (IMPART Form 8-K/A filed on May 17th), IMPART began recognizing advertising revenue using the more conservative net basis, recording only the net amount it receives from the purchase and sale of media placements. As a result of the change E&M's revenues for the year ended December 31, 2005 were approximately $5 million, which was derived from media placements of $39 million, the amount of revenue that would have been recognized using the gross method. The change will be reflected in the Company's soon to be announced first quarter 2006 financial results. IMPART acquired New York-based E&M Advertising, specialists in branded direct response advertising, in March of this year. Past and current E&M clients include A.A.R.P., Applica/Black & Decker, Arista Records, Globe Insurance, Lowestfare.com, Novartis, Premera Blue Cross of Washington, Rodale Books, Showtime, Universal Studios Home Video, 1-800 Flowers.com, and others.
IMPART Chairman and CEO Joseph F. Martinez stated, "We have made great progress integrating E&M into the IMPART fold and as part of that process we opted to take a more conservative approach in our revenue recognition policies that more closely aligns with our core business. Although this more conservative approach does change E&M's top line revenue number, their advertising bookings for 2005 will be approximately $40 million and more importantly, bottom line net revenue remains unchanged." Martinez added, "As we continue our transformation to a media focused company, we will rely on the expertise of our advisors for support in interpreting GAAP policies for our business in the rapidly emerging and continually evolving out-of-home media sector."
About IMPART Media Group, Inc.
IMPART Media Group, Inc., headquartered in Seattle, Washington, is a rapidly expanding digital signage leader in the emerging out-of-home media sector. The company is seeking to create a broad, integrated one-stop communications media company focused on digital signage and networked advertising offerings for leading brands in industries such as retail, grocery, banking, restaurants, hospitality, government and public spaces, among others. The company's digital media solutions enable the simultaneous delivery of video content to a variety of remote audiences in real time, allowing for immediate customization of messages through a centralized network operations center. More information please visit: www.impartmedia.com.
