FOR FURTHER INFORMATION:
CoACTIVE MARKETING GROUP FRB | WEBER SHANDWICK
Donald A. Bernard Marilynn Meek - General, 212-445-8451
Executive Vice President Susan Garland - Analysts, 212-445-8458
& Chief Financial Officer
516-622-2830
FOR IMMEDIATE RELEASE
COACTIVE MARKETING GROUP, INC. REPORTS
FISCAL FIRST QUARTER 2004 FINANCIAL RESULTS
NET INCOME UP 100.3% ON SALES GROWTH OF 13.6%
GREAT NECK, NY, AUGUST 7, 2003 - CoActive Marketing Group, Inc. (Nasdaq:
SmallCap CMKG), a leading independent full-service marketing, sales promotion
and interactive services company, today reported financial results for its 2004
fiscal first quarter ended June 30, 2003.
Net income for the first quarter of fiscal 2004 rose 100.3% to $328,978, or
$0.06 per diluted share, compared to net income of $164,255, or $0.03 per
diluted share for the first fiscal quarter of 2003. Sales for the quarter were
$16,072,640 compared to $14,143,991 for the comparable period last year, a 13.6%
increase.
John Benfield, President and Chief Executive Officer said, "We are pleased with
our first quarter sales and earnings growth which were in line with our
expectations. This strong performance reflects our focus on strengthening
existing client relationships and the building of new ones. As recently
reported, we have expanded our relationship with Diageo, the world's leading
premium drinks company."
"CoActive continues to be recognized for our outstanding promotional marketing
campaigns. CoActive has been named a finalist in PROMO Magazine's PRO Awards
2003 competition in the category of Best Account-Specific Campaign for our
Scott's Party at Wal-Mart entry."
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"Looking forward, we maintain our positive expectations with respect to growth
in the Company's sales and earnings for the remainder of the fiscal year, driven
by the continued success of our cross selling efforts. We are also confident of
our ability to service the growing Hispanic marketplace, and make further
inroads in the health care and financial services industries."
CoActive Marketing Group, Inc. is a full-service marketing, sales promotion, and
interactive services company that develops and manages integrated marketing,
sales and promotional programs at both national and local levels for consumer
product companies. The programs are geared towards growing incremental sales and
profits by identifying and addressing key trade, sales and consumer trends.
This press release includes statements, which constitute forward-looking
statements made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. Such statements reflect the current views of the
Company with respect to future events based on currently available information
and are subject to risks and uncertainties that could cause actual results to
differ materially from those contemplated in those forward-looking statements.
Factors that could cause actual results to differ materially from the Company's
expectations are set forth in the Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 2003 under "Risk Factors," including but not limited
to "Unpredictable Revenue Patterns," "Competition," "Customers," "Dependence on
Key Personnel," "Expansion Risk," "Control by Executive Officers," and
"Outstanding Indebtedness, Security Interest." The Form 10-K may be obtained by
accessing the database maintained by the Securities and Exchange Commission at
Http://www.sec.gov Or by contacting CoActive Marketing Group, Inc.
Financial Tables Follow
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COACTIVE MARKETING GROUP, INC.
Consolidated Statements of Operations
Three Months Ended
June 30, 2003 June 30, 2002 % Change
------------- ------------- --------
(unaudited)
Sales $16,072,640 $14,143,991 13.6
Gross Profit 3,591,430 2,915,321 23.2
Income Before Provision for
Income Taxes 585,850 308,812 89.7
Provision for Income Taxes 249,372 123,557 101.8
Net Income 328,978 164,255 100.3
Net Income per Common and
Common Equivalent Share
Basic $ 0.06 $ 0.03 100.0
Diluted $ 0.06 $ 0.03 100.0
Average Shares Outstanding
Basic 5,119,347 5,028,481 1.8
Diluted 5,765,948 5,531,533 4.2
Consolidated Balance Sheet
June 30, 2003 March 31, 2003
------------- --------------
Total Assets $38,630,065 $39,098,698
Current Debt 1,175,000 1,375,000
Long-Term Debt 4,097,000 4,500,000
Total Liabilities 22,262,253 23,277,864
Stockholders' Equity 16,367,812 15,820,834
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