CMG
Holdings Reports Strong First Quarter Results and Provides
Shareholder Update
-
Profitability
Maintained;
Balance
Sheet Substantially
Improved
-
XA Sales
Funnel Builds with
Multiple
Seven-Figure Contracts Bid
-
Legal Settlement
Provides Cashflow to Support Growth
Chicago, IL --
May 16, 2019 -- InvestorsHub NewsWire -- 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.
Disclosure
Statement
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.
Contact
Glenn
Laken
CEO
CMG Holdings
Group, Inc.
(773)
770-3440
glennbrlaken@gmail.com