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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."
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. (https://www.cmgholdingsinc.com) is a Chicago holding company whose primary operating subsidiary is XA – The Experiential Agency, Inc. (http://www.experientialagency.com) - which engages in the alternative advertising, digital media, experiential and interactive marketing, and entertainment sectors. XA is involved in production and promotion, event design, sponsorship evaluation, negotiation and activation, talent buying, show production, stage and set design, and data analysis and management activities. The business also offers branding and design services, such as graphic, industrial and package designs across traditional and new media, public relations, social media, media development and relations, and interactive marketing platforms to provide its clients with customary private digital media networks to design and develop individual broadcasting digital media channels to sell, promote, and enhance their digital media video content through mobile, online, and social mediums. XA serves clients across the marketing communication industry. Separately, CMG Holdings Group owns Lincoln Acquisition Corp., a subsidiary formed to manage its portfolio investments.
Statements in this press release about our future expectations, including without limitation, the likelihood that CMG Holdings Group, Inc. will meet minimum sales expectations, be successful and profitable, bring significant value to its stockholders, and leverage capital markets to execute its growth strategy, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and our actual results could differ materially from expected results. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law. CMG's business strategy described in this press release is subject to innumerable risks, most significantly, whether the Company is successful in securing adequate financing and materially decreases its convertible debt. No information in this press release should be construed in any form shape or manner as an indication of the Company's future revenues, financial condition or stock price.
CMG Holdings Group, Inc.
SOURCE CMG Holdings Group, Inc.