Chicago, IL, May 28, 2014 --(PR.com
)-- CMG Holdings Group, Inc. (“CMGO”) filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2014 in which CMGO announced revenues of $1,554,748, net loss of $20,973 and deferred revenue of $3,492,754. Taking into the account the deferred revenue, all of which was billed, received and earned by CMGO during the quarter, CMGO’s revenue and net income were $5,021,415 and $1,192,361, respectively. As adjusted, the first quarter is CMGO’s strongest in its history and its performance is significantly more favorable than the forecast provided in CMGO’s April 16, 2014 Chairman’s Letter. As set forth in that letter, CMGO has been recruiting new management, and after the first quarter, engaged qualified financial personnel to match the quality of its other executives. CMGO’s goal is to continue to build on its finance personnel to be able to track, report, analyze and improve its business.
The deferred revenue relates to a Service Agreement for which performance will be materially completed later today and will be reported as part of CMGO’s GAAP revenues and net income in the second quarter’s financial statements.
Chairman and CEO Glenn Laken commented, "We are coming off a very strong quarter based on monies earned and cash flow and we believe it is critical for investors to have an accurate picture of CMGO’s performance. We are required to report GAAP numbers, but with the deferred revenue actually earned, in the bank and non-refundable, we believed it important to show this. We believe that the table above provides a better picture of the state of our business and enhances our shareholders’ understanding of our financial performance."
About CMG Holdings Group, Inc.
CMG Holdings, Inc., through its subsidiaries, XA, The Experiential Agency, Inc. and Good Gaming, Inc., operates in the experiential marketing and gaming businesses. XA is a marketing communications company focused on the operation of organizations in the alternative advertising, digital media, experiential and interactive marketing. XA delivers customized marketing solutions that optimize profitability by concentrating resources in the marketing communications industry. XA operates in the sectors of experiential marketing and event marketing. Good Gaming is an online gaming portal with a business objective of assisting eSports gamers to hone and elevate their skills so as to enable them to compete at a higher level in amateur through professional gaming tournaments. Good Gaming plans to provide its targeted market with access to its proprietary membership based eSports web platform and to provide a service with a monthly membership fee to its target market comprised of 16-25 year old, single, high school/college level adults with disposable income and more than 10 hours of invested game play weekly.
Caution Regarding Forward Looking Statements
Certain statements in this news release are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, growing revenues and profits through organic growth and acquisitions, attracting new business that will increase the Company's revenues, continuing to maintain costs and consummating any transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company's control. The Company's actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of the Company's selling and marketing functions, continued customer satisfaction and contract renewal, continued availability of capable dedicated personnel, continued cost management, the success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in the Company's most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
Soruce: CMG Holdings Group, Inc., Glenn Laken CEO