CMGO News
CMG Holdings Group, Inc. Announces its 2nd Quarter June 30, 2012 Financial Results Reports $6.1 Million in Revenues.
2012-10-01 08:48 ET - News Release
Reports 31% increase in Revenues and 48% increase in Operating Income and Provides Corporate Update of Business Operations. MIAMI , Oct. 1, 2012 /PRNewswire/ -- CMG Holdings Group, Inc. (CMGO) ( CMGO.PK ) www.cmgholdingsinc.com , a full service marketing communications holding company operating across the sectors of digital media, alternative advertising, social media, experiential marketing and commercial rights, is providing the following updates regarding the company's 2nd Quarter 2012 financial results, the company's corporate spin-off of AudioEye, Inc., the elimination of the company's senior corporate debt and the corporate update of business operations and the retirement of Chairman and CEO Alan Morell , with Jim Ennis chosen has new Chief Executive Officer. On September 28, 2012 , CMG Holdings Group, Inc. filed its 10-Q regarding their 2 nd Quarter June 30, 2012 . Financial Highlight Summary from June 30, 2012 Quarter Report "The first 6 months of 2012 has been a transformative period for CMG Holdings Group, Inc.," said Jim Ennis , Chief Executive Officer. "Through the execution of organic growth initiatives, our revenues for 3 months ending June 30, 2012 increased by $1,459,382 or 31.0% compared to the same reporting period for prior year. Our revenues for 6 months year to date ending June 30, 2012 increased by $1,742,690 or 32.3% compared to the same reporting period for prior year. Our consolidated operating income for 3 months ending June 30, 2012 increased by $256,453 or 48.2% compared to the same reporting period for prior year. Our consolidated operating income increased by $73,257 or 70.9% for 6 months year to date ending June 30, 2012 compared to the same reporting period for prior year." Corporate spin-off AudioEye, Inc. and elimination of Senior Corporate Debt: "Our focus throughout this year has been to improve our balance sheet through the reduction of our liabilities and to improve our consolidated working capital position," said Jim Ennis . "On August 17, 2012 , CMGO, AudioEye Acquisition Corporation (AEAC) completed our Share Exchange pursuant to our Amended Master Agreement of April 5, 2012 regarding the spinout of AudioEye, Inc. (AudioEye). The completion of our Share Exchange and payoff by AEAC caused the release of our Senior Secured Convertible Extendable Notes and their security interests. As a result, approximately $3.67 million or 48.9% in liabilities will be removed from our consolidated balance sheet, $2.6 million related to the spinoff of AudioEye, Inc. and $1.07 million related to senior debt. This total reduction of liabilities is forecasted to be reflective in our September 30, 2012 and December 31, 2012 balance sheets. We are also continuing to work to reduce other liabilities from our balance sheet over the next several quarters. Also, as a result of completion of the Share Exchange, our assets and working capital position are forecasted to increase, due to the approximate 4.5 million shares of AudioEye that CMGO will own, once their registration process is completed."
