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.
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