CHICAGO, May 20, 2019 (GLOBE NEWSWIRE) -- via NetworkWire – CMG Holdings Group, Inc. today released its first quarter 2019 results and provided a shareholder update from the Office of the CEO, Glenn Laken:
"I'd like to take this opportunity to discuss the results from the three-month period ended March 31, 2019. As you can see, CMG Holdings Group ended the quarter on a high note. The Company exited the period with a net profit of approximately $561K. Our primary operating business, XA, had an operating profit of $86K and that was further aided by a benefit of $360K due to our writing off substantial payables, which was brought about by an ABC (assignment for the benefit of creditors) that I was able to engineer in 2015. With the ABC, CMG was able to eliminate all XA's debt. After waiting four years, we are finally debt free at the XA level leaving the business in a great position going forward. XA's fundamentals are improving and the unit has a very clean capital structure, which is the best of both worlds. Overall, CMG finished the quarter with a cash position of $317,000.
Furthermore, CMG has been able to utilize an initial payment of $268K from a recently settled lawsuit to pay down holding company debt including favorably settling two convertible notes - one with a face value of $114K and the other with a face value of $55K - for $25K total cash. In addition, we paid down $28.5K of the accrued salary of my office.
To finish this update, I'd like to give a preview of XA and their business outlook. To this end, we are currently negotiating with three new clients on installations each in excess of $1 million. In addition, we continue to see our clients returning with typical $50K - $100K jobs on a repeat basis. Overall, I am optimistic about returning XA to strong growth which I projected just a short time ago. Of course, we will remain humble and push very hard to make it all come together. In closing, I cannot say enough about the great job my daughter and her associate Armon Lewis continue to do. Keep up the great work everyone."
Management will be posting the Company's 1Q19 financials on a recently-designed CMG website which will be up shortly at https://www.cmgholdingsinc.com.
About CMG Holdings Group, Inc.
CMG Holdings Group, Inc. 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.