<<<.001 coming. mark it.>>>HE MADE .003 PER SHARE EARNINGS AND .001 COMING???LMAOOOOOOOO.MY EVALUTATION SAYS THIS THING SHOULD BE TRADING AT .03,OR TEN TIMES EARNINGS.
11:00 AM ET 5/7/20 | Dow Jones
CHICAGO, Illinois, May 7, 2020 /PRNewswire/ -- CMG Holdings Group, Inc. (CMGO/OTC) is pleased to announce strong audited financial results for 2019 that prove its successful financial and operational turnaround. The Company's wholly-owned operating business -- The Experiential Agency, Inc. (XA) -- demonstrated solid momentum with new and repeat customers, including multiple six-figure wins, that shows its strong competitive positioning in the large domestic experiential advertising market. Meanwhile, the Company continues to collect proceeds from previously settled litigation and acquired common stock in the open market under its previously announced share repurchase program.
2019 revenues of $1,778,773 were up a strong 41% YoY from $1,258,160 in 2018. The increase was primarily due to the growing event marketing operations of XA and litigation settlement collections. Net income significantly improved to $1.52 million from ($128,381) in the prior year, with EPS improving to $0.003 up significantly from ($0.0003) as the Company returned to profitability. CMGO exited the year with cash of $781,752, up substantially from $151,871, driven by profits at XA and litigation settlement proceeds.
Pursuant to the share buy-back approved by the Board of Directors in mid-2019, CMGO repurchased 6.4 million common shares during the year returning capital to shareholders. The share repurchase program has continued in 2020. CEO Glenn Laken said, "I believe the shares of CMGO represent a real value play for investors with a short- to medium-term time horizon. Accordingly, I also personally purchased 2.1 million shares in the open market last year."
Separately, he added, "On January 3, 2020, CMGO filed an arbitration proceeding against our former auditors for gross malpractice. If CMGO prevails with these claims, as we expect we will, the company has the potential to collect a significant judgement in 2020-2021."
In closing Laken said, "After years of being an Alternative Reporting Company, we have audited our financials and are now Fully-Reporting with the SEC. I believe this will provide transparency for investors and ultimately improve CMGO's share price. That said, the current pandemic environment has adversely impacted the target markets for XA's business. XA is well positioned, as a lean Company with minimal overhead backed by CMGO's strong balance sheet, to weather the economic storm. I believe the experiential advertising market will rebound by year-end 2020 or earlier, which will position XA to be a survivor of the malaise that ultimately gains market share."
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