EXHIBIT 99.1
IR CONTACT:
David Waldman/Jody Burfening
Lippert/Heilshorn & Associates
dwaldman@lhai.com
(212) 838-3777
GLOBALOPTIONS GROUP, INC. ANNOUNCES SECOND QUARTER RESULTS
COMPLETES ACQUISITION OF CBR AND EXPANDS PRESENCE TO 10 OFFICES NATIONWIDE
NEW YORK - AUGUST 15, 2005 - GLOBALOPTIONS GROUP, INC. (OTCBB: GLOI), a leading
provider of domestic and international risk mitigation services, today announced
unaudited results for the second quarter and six months ended June 30, 2005. The
company also announced that it has completed its acquisition of Confidential
Business Resources, Inc. (CBR). Global Options, with the completion of the CBR
acquisition, now has more than 60 licensed investigators, and operates from 10
offices nationwide, including: Anaheim, Chicago, Dallas, Detroit, Nashville, New
York, Orlando, Philadelphia, Sacramento, and Washington D.C.
"During the second quarter, we achieved a number of important steps toward our
goal of becoming the leading integrated risk mitigation company and dominant
brand within the highly fragmented multi-billion dollar risk mitigation
industry," stated Dr. Harvey W. Schiller, chairman of GlobalOptions. "Most
recently, we acquired CBR, which specializes in intelligence gathering,
surveillance and investigation services, and complements the other risk
mitigation services we currently provide. As a result, we now offer much greater
depth through our comprehensive suite of services including: Investigations &
Litigation Support; Risk Management & Security; and Crisis Management."
Dr. Schiller concluded, "With this strong foundation in place, we have already
identified additional acquisition targets to further enhance our service
offering and expand our geographic presence, which will help us achieve our
revenue target of at least $100 million within the next 18 to 24 months. As
companies are acquired, we plan to eliminate redundant costs and consolidate
back-office responsibilities, which will free management to focus on customer
addition and retention. With the heightened security threats facing global
corporations, governments, and high profile individuals around the world,
GlobalOptions is well positioned as a one-stop-solution to meet the growing
global demand for domestic and international risk mitigation services."
Preliminary results for the second quarter of fiscal 2005 for GlobalOptions
reflects revenues of $1.2 million as compared to $1.2 million for the same
period in fiscal 2004. Net loss attributable to common stockholders for the
second quarter of fiscal 2005 was $1.2 million or a basic and diluted net loss
attributable to common stockholders per share of $0.34. This is compared to a
net loss attributable to common stockholders for the second quarter of fiscal
2004 of $310,000, or a basic and diluted net loss attributable to common
stockholders per share of $0.11. Had the acquisition of CBR occurred on January
1, 2005, total revenue for the second quarter of fiscal 2005 for the combined
companies would have been approximately $3.7 million.
Preliminary results for the six months ended June 30, 2005 for GlobalOptions
reflects revenues of $2.3 million as compared to $2.6 million for the same
period in fiscal 2004. Net loss attributable to common stockholders for the six
months ended June 30, 2005 was $1.8 million or a basic and diluted net loss
attributable to common stockholders per share of $0.57. This is compared to a
net loss attributable to common stockholders for the six months ended June 30,
2004 of $499,000, or a basic and diluted net loss attributable to common
stockholders per share of $0.18. Had the acquisition of CBR occurred on January
1, 2005, total revenue for the six months ended June 30, 2005 for the combined
companies would have been approximately $7.3 million.
Cascadia Capital served as a financial advisor to GlobalOptions in its
acquisition of Confidential Business Resources, Inc.
ABOUT GLOBALOPTIONS GROUP, INC.
GlobalOptions Group, with main offices in New York and Washington DC, is a
provider of high-end risk mitigation services to Fortune 1000 corporations,
governmental organizations and high-profile individuals throughout the world.
GlobalOptions' risk mitigation services currently include risk management and
security, investigations and litigation support, and crisis management. These
engagements take GlobalOptions staff around the world and are typically highly
sensitive engagements where GlobalOptions is interacting with senior leaders in
corporations and governments. Its overall mission is to identify, evaluate,
assess, prevent and correct issues that may threaten people, organizations or
strategic initiatives for corporations or governments.
STATEMENTS IN THIS PRESS RELEASE REGARDING THE COMPANY'S BUSINESS THAT ARE NOT
HISTORICAL FACTS ARE "FORWARD-LOOKING STATEMENTS" THAT INVOLVE RISKS AND
UNCERTAINTIES. THE COMPANY WISHES TO CAUTION READERS NOT TO PLACE UNDUE RELIANCE
ON SUCH FORWARD-LOOKING STATEMENTS, WHICH STATEMENTS ARE MADE PURSUANT TO THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1994, AND AS SUCH, SPEAK ONLY AS OF
THE DATE MADE. TO THE EXTENT THE CONTENT OF THIS PRESS RELEASE INCLUDES
FORWARD-LOOKING STATEMENTS, THEY INVOLVE VARIOUS RISKS AND UNCERTAINTIES
INCLUDING THE SUCCESSFUL INTEGRATION OF THE BUSINESS OF CBR AND THE CONTINUED
SUCCESSFUL IMPLEMENTATION OF THE COMPANY'S BUSINESS STRATEGY.
CERTAIN OF THESE RISKS AND UNCERTAINTIES WILL BE DESCRIBED IN GREATER DETAIL IN
GLOBALOPTIONS' FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
GLOBALOPTIONS IS UNDER NO OBLIGATION TO (AND EXPRESSLY DISCLAIMS ANY SUCH
OBLIGATION TO) UPDATE OR ALTER ITS FORWARD-LOOKING STATEMENTS WHETHER AS A
RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
