SMC Recordings Announces Preliminary Financial Results for Year Ended December 31, 2009
March 24 2010 - 4:01PM
Marketwired
SMC Recordings (PINKSHEETS: SMCE), Independent Hip-Hop/Rap Label,
today announced selected preliminary results for the year 2009 and
provided additional information about 2010. The 2009 results
presented in this release are based on preliminary financial data
and are subject to change until the year-end financial close
process and audit are completed.
Based on preliminary results, total net revenue for 2009 is now
expected to be about $2.1 million and earnings are expected to be a
small loss from operations. Expected net revenues for 2009 are a
34% improvement from 2008. The expected growth in net revenue in
2009 is due to a combination of an improvement in gross sales of
over 50% as compared to last year, and lower returns (21% return
rate compared to 56% in 2008). Reporting net revenues by sales type
shows both physical (41% growth over 2008) and digital net sales
(16% growth over 2008) improved in 2009.
While a wide range of results remains possible, we expect
revenue growth and profitability for 2010. Based on current
opportunities, we believe we could have a strong year. Many
variables may impact this outlook, but one significant item is the
timing of the availability and release of our projected artists'
album releases for the year, including the completion of closing
pending acquisitions.
In making the announcement, David Newberg, CFO for SMC, states,
"The sales and operation achievements made in 2009 provide the
momentum for the company to continue to improve in 2010."
About SMC Recordings:
Established in March of 2005, SMC Recordings is home to
independent music and artists. Based in San Francisco, CA, the
company's prized accomplishment is its unique philosophy of artist
development, where artists are encouraged to participate with the
label from inception through maintenance of their careers. This
innovative structure has garnered industry veterans to join the
company and aid in its growth. SMC is distributed by Fontana, the
indie distribution subsidiary of Universal. It is SMC's humble
regional beginnings and loyalty to their artists and their careers
that will guarantee the company to always be on the precipice of
creativity and expansion in the music game.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Statements in this release that are forward-looking
statements are based on current expectations and assumptions that
are subject to known and unknown risks, uncertainties, or other
factors which may cause actual results, performance, or
achievements of the company to be materially different from any
future results, performance, or achievements expressed or implied
by such forward-looking statements. Actual results could differ
materially because of factors such as the effect of general
economic and market conditions, entry into markets with vigorous
competition, market acceptance of new products and services,
continued acceptance of existing products and services,
technological shifts, and delays in product development and related
product release schedules, any of which may cause revenues and
income to fall short of anticipated levels. All information in this
release is as of the date of this release. The company undertakes
no duty to update any forward-looking statement to conform the
statement to actual results or changes in the company's
expectations.
Contact: Ron Taylor SMC Recordings 415-742-6177
investors@smcrecordings.com
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