MYCOM Group, Inc. and Broughton International Merge For Growth
CINCINNATI--(BUSINESS WIRE)--April 16, 2001--A new growth-oriented management team and a focus on developing and marketing software, e-business, networking, communications services and training are all part of the merger of the Cincinnati-based technology companies, MYCOM Group, Inc. (OTCBB:MYCO - news) and Broughton International Enterprise & Web Solutions, which closed today.
Broughton, a privately held company, exchanged all of its stock and assets for 20 million common shares of MYCOM Group and a 4 1/2-year note for $1.3 million, including interest. Broughton will continue to operate under its current name as a wholly owned subsidiary of MYCOM Group, Inc.
In addition, the principal owners of Broughton, Rob R. Bransom and James T. Bobbitt, through a limited liability company, purchased 27 million common shares of MYCOM from its principal shareholders. After the transaction Bransom and Bobbitt now own approximately 67 percent or 47 million of the 69.7 million MYCOM shares outstanding.
Rob Bransom will serve as Chairman of the Board of Directors and Chief Executive Officer of MYCOM, and Jim Bobbitt will serve as a Director, President and Chief Operating Officer.
Bransom and Bobbitt bring more than four decades of combined experience as senior executives of large national and international businesses to MYCOM. Bransom was President and CEO of the Kendall-Futuro Co., a $134-million health-care consumer products company, and President of the Drackett Products Co., a $505 million Cincinnati-based consumer products sales company. Bobbitt was National Sales Manager and Vice President of the Drackett Co., and Executive Vice President of the Kellogg Companies.
``This is a very important day for the employees, customers and shareholders of MYCOM and Broughton International,'' Bransom said. ``Bringing these companies together achieves one of our key strategic goals. We have expanded the technology services and product development capabilities of Broughton and strengthened the business development, marketing and financial position of MYCOM.''
Bransom indicated that ``A very important element of our merger and reorganization plan addresses financial management and taking advantage of the cost controls offered by operational synergy. We are taking a number of actions to enable more effective financial performance:
Effective today, we have appointed Clay Lehmann as the new Chief Financial Officer of MYCOM Group. Clay has extensive experience in corporate finance and strategic planning for debt management. His career includes public accounting with Arthur Anderson & Co., operating in the corporate sector as Treasurer and Chief Financial Officer of the Zonic Corporation and the Commonwealth Petroleum Company, and as Vice President, General Manager and Chief Financial Officer of Astro Containers, Inc.
In addition to appointing new financial management, we are undertaking actions to eliminate over $500,000 in annual overhead costs, and immediately reducing spending on MYCOM's costly consulting contracts.
We have also restructured the company's bank debt, which includes an expanded line of bank credit with more favorable rates and refinancing of a term note.``
Addressing the growth elements of the combined companies' business plan, Jim Bobbitt said ``The new company will be able to market a wider range of technology and communications products and services to a much larger base of clients. We also now have the infrastructure, management and technical expertise to develop attractive new products and services. Rob and I are experienced in these areas and believe the combined companies offer potential for success and growth. We have already initiated software marketing programs that are intended to produce double-digit growth in the Broughton business unit during 2001. With our combined resources and new product opportunities, we believe we can also significantly improve operating results of the MYCOM business unit.''
George Young remains a director of MYCOM and will serve as Executive Vice President. Allan Massey resigned as an officer and director.
Joan Carroll and Patti Massey resigned as officers and directors of MYCOM Group, but remain President and Executive Vice President, respectively, of MYCOM Advertising. Carroll remains 51 percent owner of MYCOM Advertising, d.b.a. MYCOM Enterprises, which continues as a certified Minority Business Enterprise (MBE). MYCOM Group owns 49 percent of MYCOM Advertising.
Prior to the merger, on April 2, 2001, MYCOM filed a Form 10-KSB with the Securities and Exchange Commission containing its audited financial statements for 1999 and 2000. MYCOM Group reported net revenues of $4.3 million and a net loss of $757,602 for 2000, compared with net revenues of $4.4 million and a net loss of $88,481 for 1999. Revenues for both years were restated on a net basis to comply with the Securities and Exchange Commission's new revenue recognition guidelines. Adopting the guidelines did not affect the net profit or loss reported in either year. Information on Broughton was not a part of this Form 10-KSB.
About Broughton
Broughton was established in 1984. It markets software, hardware, consulting services and e-business systems to a base of more than 20,000 business customers throughout North America. Broughton also provides network consulting and web management services for a number of Cincinnati companies. Broughton's professional staff members hold certifications from Microsoft, Citrix and Tele-magic products, and for a number of leading help desk, security, emulation and connectivity solutions. Broughton is a value-added reseller and business partner with leading technology companies such as IBM, Citrix, McAfee and WRQ. Notable customers include Revlon, NASCAR, Mercy Health Partners and Quantum Corp. Broughton is on the web at www.broughton-int.com.
About MYCOM
MYCOM Group provides a complementary mix of technology, training and communications services for large businesses and organizations with an emphasis on solutions that are Understood, Valued and Acted Upon(TM). MYCOM was formed in 1991 to provide technical marketing and documentation services. It has added capabilities in applications development, web-enabled applications, database applications, online and classroom instructional design and training, and other services that enhance the benefits of technology investments across the enterprise. MYCOM Group is on the web at www.mycom.com.
NOTE: This MYCOM Group press release contains certain forward-looking statements within the meaning of the ``safe harbor'' provisions of the federal securities laws. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. Important risks and uncertainties, among others, that could cause our actual results to differ materially from those described in these forward-looking statements include approvals from existing creditors, the strength of the U.S. economy and other factors. For additional information about Mycom Group, Inc. please refer to the Form 10-KSB report it filed with the Securities and Exchange Commission on April 2, 2001.
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Contact:
MYCOM Group, Inc.
Wayne Buckhout, 513/352-5560 x190
wbuckhout@mycom.com
