Wednesday March 6, 8:05 am Eastern
Time
Press Release
SOURCE: Cross Media
Cross Media Reports Record 2001
Revenues of $100 Million and Record EPS of $.86
Q-4 2001 Revenues Surge 129%
Over Q-4 2000 to $31 Million with Q-4 EPS of $.34
NEW YORK, March 6 /PRNewswire-FirstCall/
-- Cross Media (Amex: XMM - news), a leading technology-driven targeted
marketing company committed to redefining the art and science of direct
marketing, today reported record revenues and financial results for the
fourth quarter and year ended December 31, 2001. The Company reported revenues
of $100.1 million and net income of approximately $8.8 million resulting
in fully diluted earnings per share of $.86 for the year.
Revenues for 2001 increased $44.6
million, or 80%, over revenues for 2000, which totaled $55.5 million.
The Company posted net income for
2001 of $8.8 million compared to a net loss of $4.9 million in 2000. Net
income after preferred dividends totaled $8.0 million applicable to common
shareholders for 2001, compared to a net loss to common shareholders of
$44.6 million for the year 2000.
Revenue for the quarter ended December
31, 2001 totaled $30.9 million, an increase of $17.4 million, or more than
100% over the comparable quarter 2000 when revenue totaled $13.5 million.
Fully diluted earnings per share for fourth quarter 2001 is $.34, compared
to a loss of $1.25 per share for fourth quarter 2000.
``Approximately fourteen months ago,
prior to the deepening economic contraction and international political
turmoil which ensued in 2001, we projected that the Cross Media sales and
marketing organization, with a proven ability to generate cash flow and
revenues on a highly predicable basis, would achieve a minimum of $98 million
in revenues,'' stated Ronald Altbach, Chairman and Chief Executive Officer
of Cross Media. ``Needless to say, we are very pleased with our performance.''
Mr. Altbach continued, ``While our
management team is already focused on financial results and activities
for 2002 and beyond, we want to reflect for a moment on what our Company
has been able accomplish this last year in a difficult economic environment.
Quarter after quarter, this high growth, recession-resistant, multi-channel,
multi-product company has performed with sequential increases in revenues
and earnings for an impressive five quarters. Shareholder value enhancement
has been provided through a combination of earnings and revenues growth
as we continue to redefine the art and science of targeted marketing capitalizing
on the world- wide direct-to-the-consumer movement.''
Some of our key
accomplishments over the last year include:
-- LifeMinders
Acquisition: The Company successfully acquired and
integrated the business of LifeMinders, Inc., a leading online direct
marketer. This transaction resulted in a powerful technology platform
for personalized email delivery which Cross Media is now utilizing to
deliver over 200 million permission-based e-mails monthly, a richly
profiled, 20 million person database and approximately $21 million in
cash, net of transaction costs.
-- Balance Sheet
Enhancement: The Company redeemed or converted all
outstanding preferred stock resulting in a simple capital structure,
and increased stockholders' equity from $9.6 million for fiscal 2000 to
$58.2 million for fiscal 2001.
-- Management
and Infrastructure: Cross Media has successfully recruited
industry veterans and experts in all aspects of our business: direct
marketing and sales (online and offline); finance; operations and
business integration; technology and data. The addition of these
seasoned executives to our corporate operations is resulting in a fully
integrated operating enterprise. In addition, the Company now has
in
place management and other infrastructure necessary to significantly
expand the Company's next generation of activities.
-- Products:
With the acquisition of National Syndications on January 11,
2002, Cross Media now offers over 100 different products and services
across our multi-channel platforms. As the next generation
implementation of Cross Media's strategy to generate subscription-based
revenues from Web-centric products, the Company recently launched three
membership programs offering discounts goods and services including
travel and leisure products: http://www.destinations-direct.com; health
and wellness products: http://www.wellshore-direct.com and other
consumer products and services www.premia-network.com.
2001 Summary Financial
Data
-- Q-1:
Revenues, $19.7 million; Net Income (Loss), ($0.2) million.
-- Q-2:
Revenues, $23.6 million; Net Income, $1.8
million.
-- Q-3:
Revenues, $25.9 million; Net Income, $2.3
million.
-- Q-4:
Revenues, $30.9 million; Net Income, $4.1
million.
*Represents net
income available to common shareholders
2002 Outlook
The Company is reiterating its projected
revenues for 2002 in excess of $200 million and fully diluted earnings
per share in excess of $1.25. This will represent a revenue increase of
over 100% over fiscal 2001. Performance for the first quarter ending March
31, 2002 is progressing on target with the 2002 projections.
Conference Call and Webcast
Ronald Altbach, Chairman and Chief
Executive Officer, and other members of the executive management team will
discuss fourth quarter and year-end 2001 financial results during a conference
call and webcast today at 11:00 a.m. ET and will be available to answer
questions and discuss the current state of the Company. Participants may
ask questions during the Q & A segment of the call or, if they prefer,
may e-mail questions in advance of the call to A. J. Cervantes, Senior
Vice President, Business Development at acervantes@xmmcorp.com. This call
is being webcast by CCBN and can be accessed at Cross Media's web site
at http://www.xmmcorp.com. Investors may also access the call by dialing
(888) 232-0365, code 578083 or from an international location by calling
(805) 240-9653.
The webcast will also be distributed
over CCBN's Investor Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through CCBN's individual
investor center at http://www.companyboardroom.com or by visiting any of
the investor sites in CCBN's Individual Investor Network such as America
Online's Personal Finance Channel, Fidelity Investments® (Fidelity.com)
and others. Institutional investors can access the call via CCBN's password
protected event management site, StreetEvents (http://www.streetevents.com).
About Cross Media
Cross Media is a leading technology-driven
marketing company engaged in sophisticated targeted marketing utilizing
multiple direct marketing channels including email, voice, direct mail,
interactive voice response and Internet with its proprietary X-ID(TM) profiling
technology, resulting in a multi- dimensional marketing platform. Cross
Media seeks to achieve revenue growth and earnings leverage by cross marketing
a broad array of products and services, including membership services and
high-end bundled periodicals, through multiple channels to an expanding
30 million consumer base utilizing state-of-the-art direct marketing strategies.
Through Cross Media's voice- driven customer acquisition programs, Cross
Media Marketing contacts and retains critical data on more than twenty
million persons annually. The Company continues to exploit its expansive
database in other technology-driven marketing channels, facilitating additional
e-commerce transactions to increase revenues while concurrently lowering
costs and increasing margins. In January 2002, Cross Media acquired National
Syndications, Inc., a direct marketing company with significant expertise
in print advertising generating in excess of $50 million in revenues for
2001. For more information about Cross Media, visit the Investor Relations
section of http://www.xmmcorp.com or email Alfonso J. Cervantes, Senior
Vice President, Business Development, acervantes@xmmcorp.com.
Cautionary Statement Regarding Forward-Looking
Statements
This announcement contains forward-looking
statements that involve risks and uncertainties that could affect Cross
Media's ability to achieve the anticipated financial results. Additionally,
certain statements contained herein and in the information posted on the
web site of Cross Media that are not based on historical fact are ``forward
looking statements'' within the meaning of the Private Securities Litigation
Reform Act of 1995. Cross Media intends that forward-looking statements
contained herein and on its web site be subject to the safe harbor created
thereby. Such forward-looking statements are based on current expectations
of management but involve certain risks and uncertainties. Cross Media's
actual results, performance or achievements could differ materially from
the results, performance or achievements projected in, or implied by, such
forward-looking statements as a result of risk factors, including, without
limitation, the following: Cross Media's ability to integrate the recently
acquired LifeMinders and National Syndications, Inc. operations and to
make additional strategically appropriate acquisitions; the adequacy of
accounts receivable reserves and other significant estimates, changes in
economic conditions or a material decline in the availability of consumer
credit, interest rate fluctuations, Cross Media's limited operating history,
competitive factors, the need to manage growth, volatility in the market
price of the common stock and the securities markets generally, risks relating
to government regulation of telemarketing and Internet marketing activities,
Cross Media's ability to exploit its database and technological innovations
and potential dilution. These factors are described in detail in Cross
Media's filings with the Securities and Exchange Commission, including,
where applicable, its most recent filings on Forms 10-KSB, 10-QSB and 8-K,
and registration statement on Form S-3. Cross Media's filings with the
SEC are available to the public from commercial document- retrieval services
and at the web site maintained by the Sec free of charge at http://www.sec.gov.
Cross Media does not assume any responsibility to update the information
included in this press release or on its web site, whether as a result
of new information, future events or otherwise.
Cross Media's estimates are based
on preliminary financial information which has not been audited by Cross
Media's independent public accountants, and is therefore may be subject
to adjustment. Cross Media's projections are based on numerous assumptions
about its business, general economic conditions, competitive factors, industry
performance and other factors which cannot be predicted with certainty.
Therefore, Cross Media's results are likely to vary from the projections,
and the variations could be material. Accordingly, neither the estimates
nor projections should be regarded as a representation or a prediction
that Cross Media or any of the other companies presented will achieve any
particular results.
Cross Media Marketing Corporation
Financial Table
As of and for the year ended December 31, 2001
($ in thousands except per share data)
Year Ended December 31,
2001 2000
Operating Results:
Revenues
$100,116 $55,487
Gross profit
28,239 14,109
Operating
expenses
17,071 13,685
Operating
income
11,168
424
Interest
expense
2,060 4,363
Provision for income taxes
275 279
Income
(loss) before extraordinary item
8,833 (4,218)
Extraordinary
loss
-- 767
Net income
(loss)
8,833 (4,986)
Preferred
dividends
831 39,603
Net income
(loss) available to
common
stockholders
$8,002 $(44,589)
Earnings
per share
$0.86 $(9.18)
Weighted
Average Shares- Diluted
9,300 4,857
December 31,
Balance Sheet
Data:
2001 2000
Total assets
$95,211 $43,944
Total liabilities
$36,970 $28,059
Working
capital
$38,134 $5,093
Mandatorily
redeemable preferred stock
$-- $6,245
Stockholders'
equity
$58,241 $9,640
SOURCE: Cross Media
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