EXHIBIT 99.6
ACE MARKETING & PROMOTIONS, INC.
457 ROCKAWAY AVENUE
VALLEY STREAM, NY 11581
(516) 256-7766
ACE REPORTS 2008 RESULTS OF OPERATIONS-SALES INCREASED 7.9% AND ALSO EXTENDED
THE EXPIRATION DATE OF ITS CLASS A AND CLASS B WARRANTS THROUGH JULY 1, 2009
VALLEY STREAM, NY -- March 27, 2009
Ace Marketing & Promotions, Inc. (OTC BB: AMKT) announced today its results of
operations for 2008.
Year Ended December 31
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2008 2007
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Revenue (A) $ 6,069,356 $ 5,660,102
Cost of Revenues 4,383,183 3,844,047
Gross Profit (B) 1,686,173 1,816,055
Operating Expenses (C) 2,927,620 2,721,058
Loss from operations (D) (1,241,447) (905,003)
Net Loss (D) (1,230,393) (879,055)
Preferred Stock Dividend 96,500 -
Net Loss Allocable to Common Stockholders (1,326,893) (879,055)
Net (Loss) per common Share (.16) (.11)
Weighted average common Shares
Outstanding 8,270,985 8,021,521
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(A) Increase in revenues is due to the collaborated effort with a major
customer, Ace Marketing was able to create, administer and fulfill an in house
order which benefited over 3,500 members of the organization. This order was
responsible for approximately 12.9% of revenues for the year ended December 31,
2008. We can provide no assurance that this large order will be recurring in
future operating periods.
(B) Gross profits will vary period-to-period depending upon a number of
factors including the mix of items sold, pricing of the items and the volume of
product sold. Also, it is our practice to pass freight costs on to our
customers. Reimbursement of freight costs which are included in revenues have
lower profit margins than sales of our promotional products and has the effect
of reducing our overall gross profit margin on sales of products, particularly
on smaller orders. The 2008 gross profit was negatively impacted by reduced
gross profit achieved in connection with the large order placed by members of a
police organization.
(C) Operating expenses include such costs as payroll and related
expenses, commissions, insurance, rents, professional, consulting and public
awareness fees. The overall increase was primarily due to increase in stock
based compensation.
(D) Our net loss for 2008 as compared to the comparable period of the
prior year was due to an increase in stock based payments and a decrease in
gross profit. No benefit for income taxes is provided for 2008 and 2007 due to
the full valuation allowance on the net deferred tax assets. Our ability to be
profitable in the future is dependent upon both a turnaround in the United
States economy and the successful introduction and usage of our proximity
marketing services by our clients, which commenced in August 2008.
On March 26, 2009, Ace extended the expiration date of its Class A and Class B
Warrants through the close of business on July 1, 2009. These Warrants have an
exercise price of $2.00 per share.
ABOUT ACE MARKETING
Ace Marketing & Promotions, Inc. is a premier Promotional Marketing solutions
company. Its Corporate Overview is available at http://www.acemarketing.net on
the "About Us" tab. In addition Ace has also added several new revenue stream
models. The long-term strategic plan is for Ace find new opportunities while
leveraging its core competencies.
For additional information, a copy of Ace's Form 10-K can be obtained on the
Internet by going to www.acemarketing.net, clicking on links and then clicking
on SEC Filings.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995.
Certain statements in this press release constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
the company to be materially different from any future results, performances or
achievements express or implied by such forward-looking statements. The
forward-looking statements are subject to risks and uncertainties including,
without limitation, changes in levels of competition, possible loss of
customers, and the company's ability to attract and retain key personnel.