MONTREAL, Nov. 14, 2008 (GLOBE NEWSWIRE) -- Stock-Trak Group (OTCBB:STKG), www.stocktrak.com, today released its financial results for the third quarter and nine months ended September 30, 2008.
For the third quarter of 2008, the Company reported revenues of $1,155,594 versus $742,816 for the third quarter 2007, an increase of approximately 56 percent. The Company's gross profit was $767,743, a 41 percent increase compared to $542,696 for the same period a year earlier. The Company showed a net loss of $993,177, down from $2,256,162 a year ago The Company's net loss before interest and non-cash items for the third quarter of 2008 amounted to approximately $729,728. Stock-Trak's net cash position decreased by $489,191 during the quarter while net cash used in operations was $470,774 compared to $617,351 for the same period a year earlier. The Company ended the quarter with $1,708,302 in cash or cash equivalents versus $543,279 a year ago.
For the nine months ended September 30, 2008 revenues increased approximately 82 percent to $3,471,157 compared to $1,909,530 a year ago, while gross profit increased 87 percent to $2,698,880 versus $1,441,498 in 2007. The Company experienced a decline in its net loss for the nine month period of 60 percent, decreasing to $3,072,298 versus $7,759,983 for the comparable 2007 reporting period. The Company's net loss before interest and non-cash items amounted to $1,864,996.
"Although 2008 has been very difficult from a macro economic perspective, the fact is that the world wide economic crisis has created an unprecedented interest and focus on our core stock market education business," stated Rory Olson, Stock-Trak Group's Chief Executive Officer. "Consumer interest in our Wall Street Survivor contest portal continues to grow at a significant pace including an increase in daily page views of approximately 140 percent during the last quarter, while the number of trades on the site has more than doubled compared to a year ago."
"Equally, our cash management and cost control efforts have continued to be a significant focus as we look to further expand the business and seek profitability going forward," Mr. Olson continued. "Meanwhile, our education and our corporate and co-branded businesses are growing at a brisk pace, with our white label and proprietary simulations now in use in over 80 percent of North America's top Universities and business programs and recent white label agreements with such leading media and financial firms as Las Vegas Traders Expo, Scottrade and CanWest."
The Company has announced several new additions to its Wall Street Survivor fantasy stock market site, to be launched by year-end in an effort to attract new users, increase page views, and further establish its lead position in the online stock simulation marketplace. These include:
* Daily stock picking games that increase the excitement and "twitch" factor of the site, and increase page views when the real markets are closed; * A targeted campaign to college professors, high school teachers and investment clubs/groups promoting Wall Street Survivor as the only free, real-time, fantasy stock game; * An overhaul of the online store to include software and newsletters from third parties, in order to increase conversions, revenue and profits; * A new content management system to allow the Company to more easily expand the amount of content in its educational portal called "Survivor University," reducing internal development costs while increasing retention and page views; * The reorganization and enhancement of Survivor U with an ongoing series of new articles as well as a greater amount of focused, proprietary education content. This positions WSS as more than a simulation/game site, but rather, a destination site focused on portfolio management, which in light of recent market turmoil, has become an extremely valuable niche.
About Stock-Trak Group, Inc.
Founded in 1990, Stock-Trak Group, Inc. is a leading global provider of web-based stock market simulation and training products. Through its wholly owned subsidiary, Stock-Trak, Stock-Trak Group targets the academic and financial services markets with proprietary stock market simulation and training tools. Wall Street Survivor (www.wallstreetsurvivor.com), part of Stock-Trak Group's consumer division, targets online investing, trading and game enthusiasts with a market leading web 2.0 investment-oriented educational simulation and contest web site while replicating the real world stock market experience without the risk. Our media division is a full service marketing firm that operates an advertising based network of outdoor multimedia L.E.D. display screens. Stock-Trak Group has three office locations in Montreal, Quebec; Mississauga, Ontario and Atlanta, Georgia.
Important Information about Forward-Looking Statements: All statements in this news release other than statements of historical facts are forward-looking statements which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events or financial positions to differ materially from those included within the forward-looking statements. Such factors include, but are not limited to, the availability of capital resources, our ability to execute our business plan, our ability to attract and retain customers and qualified personnel, customer acceptance and satisfaction with our event marketing services and proposed stock market simulation contest, changes in applicable regulatory actions, changes in the securities or capital markets, statements of assumption underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended December 31, 2007 and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date hereof.