Mktg, Inc. (fka CMKG)

[Hegotgame]

News out..MKTG INC Reports 29% Increase in Operating Income for Its Fiscal Year
Ended March 31, 2012


NEW YORK, June 28, 2012 /PRNewswire via COMTEX/ -- MKTG INC (OTC BB: CMKG), a
full service marketing agency, today announced its operating results for its
fourth quarter and fiscal year ended March 31, 2012.

Operating Results - Fourth Quarter, Fiscal 2012

For its fourth quarter ended March 31, 2012, Operating Revenue increased $1.6
million or 18% to $10.5 million, compared to $8.9 million for the quarter ended
March 31, 2011. Compensation and general and administrative expenses were $9.4
million for the quarter, compared to $8.2 million for the quarter ended March
31, 2011. Operating income for the quarter increased 54% to $1,042,000, compared
to $678,000 for the fourth quarter of the previous year. Modified EBITDA for the
quarter was $1,381,000, compared to $1,028,000 for the quarter ended March 31,
2011.

Operating Results - Fiscal 2012

For its fiscal year ended March 31, 2012, Operating Revenue increased $3.7
million or 11% to $38.5 million, compared to $34.8 million for its fiscal year
ended March 31, 2011. Compensation and general and administrative expenses were
$34.2 million for the fiscal 2012, compared to $31.5 million for fiscal 2011.
Operating income for fiscal 2012 increased 29% to $4.2 million, compared to $3.3
million for fiscal 2011. Modified EBITDA for fiscal 2012 was $5.6 million,
compared to $4.8 million for fiscal 2011.

"This was a record-breaking year for MKTG that featured all-time highs in sales,
Operating Revenue and operating income," said Paul Trager, Chief Financial
Officer. Mr. Trager continued, "Demonstrating our financial stability, this past
year we achieved a significant milestone with the pay-off of all outstanding
debt and the elimination of our working capital deficit."

"Our tremendous performance validates our business model of sustainable,
profitable growth and expanding margins," said Charlie Horsey, President and
Chief Executive Officer. Mr. Horsey concluded, "We have invested $500,000 in
growth initiatives and will continue to explore and invest in geographic and
service offering expansion. We believe this, coupled with significant new
business efforts, will provide continued success in Fiscal 2013."

Operating Revenue and Modified EBITDA

The Company believes Operating Revenue and Modified EBITDA are key performance
indicators. The Company defines Operating Revenue as sales less reimbursable
program costs and expenses and outside production and other program expenses.
Operating Revenue is the net amount derived from sales to customers that
management believes is available to fund compensation, general and
administrative expenses and capital expenditures. The Company defines Modified
EBITDA as income before interest, income taxes, depreciation and amortization
plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental
measure to evaluate operational performance. Operating Revenue and Modified
EBITDA are Non-GAAP financial measures disclosed by management to provide
additional information to investors in order to provide them with alternative
methods for assessing the Company's financial condition and operating results.
These measures are not in accordance with, or a substitute for, GAAP and may be
different from or inconsistent with Non-GAAP financial measures used by other
companies. Reconciliations of Operating Revenue to sales and Modified EBITDA to
operating income are provided at the end of this press release.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full
service offices in San Francisco, Los Angeles, Chicago, Cincinnati and London,
England. The Company currently serves a variety of the world's most recognizable
brands. Its services include experiential marketing, digital marketing, retail
promotions and strategic research and planning. The firm's programs help its
clients profitably connect with consumers and create networks of brand advocates
to generate brand awareness and higher sales for its customers. For more
information, please visit www.mktg.com.

This press release includes statements which constitute forward-looking
statements made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements in this press release
are not promises or guarantees and are subject to risks and uncertainties that
could cause our actual results to differ materially from those anticipated.
These statements are based on management's current expectations and assumptions
and are naturally subject to uncertainty and changes in circumstances. We
caution you not to place undue reliance upon any such forward-looking
statements. Actual results may vary materially from those expressed or implied
by the statements herein. Factors that could cause actual results to differ
materially from the Company's expectations are set forth in the Company's Annual
Report on Form 10-K for the fiscal year ended March 31, 2012 under "Risk
Factors," and include the risk that projected business opportunities will fail
to materialize or will be delayed. The Form 10-K may be obtained by visiting the
Company's website or by accessing the database maintained by the Securities and
Exchange Commission at http://www.sec.gov.



MKTG INC

Consolidated Statements of Operations

For The Three Months (Unaudited) and Fiscal Years Ended March 31, 2012 and 2011



Three Months Ended Fiscal Years Ended

March 31, (Unaudited) March 31,

2012 2011 2012 2011

Sales $ 29,571,053 $ 28,449,441 $ 125,485,075 $ 117,886,984

Operating revenue $ 10,477,318 $ 8,880,617 $ 38,453,154 $ 34,777,818

Operating income $ 1,042,033 $ 678,284 $ 4,222,590 $ 3,269,817

Income (loss) before (benefit) $ (138,560) $ (1,151,105) $ 3,826,384 $ 30,633

provision for income taxes

(Benefit) provision for income taxes $ (1,723,026) $ 174,000 $ (1,573,026) $ 174,000

Net income (loss) $ 1,584,466 $ (1,325,105) $ 5,399,410 $ (143,367)



Earnings (loss) per share:

Basic $ 0.19 $ (0.17) $ 0.66 $ (0.02)

Diluted $ 0.10 $ (0.17) $ 0.34 $ (0.02)




MKTG INC

Consolidated Balance Sheets

March 31, 2012 and 2011



March 31, 2012 March 31, 2011



Total assets $ 38,233,217 $ 32,240,753

Total liabilities $ 26,110,262 $ 25,947,885

Preferred stock $ 2,569,347 $ 2,003,085

Total stockholders' equity $ 9,553,608 $ 4,289,783




MKTG INC

Operating Revenue Schedule

For The Three Months (Unaudited) and Fiscal Years Ended March 31, 2012 and 2011



Three Months Ended Fiscal Years Ended

March 31, (Unaudited) March 31,

2012 2011 2012 2011



Sales $ 29,571,053 $ 28,449,441 $ 125,485,075 $ 117,886,984

Reimbursable program costs and expenses 5,020,829 5,015,646 23,398,344 22,477,682

Outside production and other program expenses 14,072,906 14,553,178 63,633,577 60,631,484

Operating Revenue $ 10,477,318 $ 8,880,617 $ 38,453,154 $ 34,777,818




MKTG INC

Modified EBITDA Schedule

For The Three Months (Unaudited) and Fiscal Years Ended March 31, 2012 and 2011



Three Months Ended Fiscal Years Ended

March 31, (Unaudited) March 31,

2012 2011 2012 2011



Operating income $ 1,042,033 $ 678,284 $ 4,222,590 $ 3,269,817

Depreciation and amortization 226,197 242,998 939,218 1,071,982

Share based compensation expense 112,467 107,173 444,276 495,799

Modified EBITDA $ 1,380,697 $ 1,028,455 $ 5,606,084 $ 4,837,598



SOURCE MKTG INC



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