CMKG: Finra deleted symbol. Merged with Aegis Lifestyle, Inc.; $2.80 per share. Deletion Time: 13:00:27

http://www.otcbb.com/asp/dailylist_detail.asp?d=08/27/2014&mkt_ctg=NON-OTCBB

Is no one happy with the price of a buyout anymore? These lawyers are off their rockers now a days with the constant lawsuits.

CMKG is smells like a winner

Dentsu Aegis Network to Acquire MKTG, INC. for $2.80 per Share in Cash

LONDON and NEW YORK, May 27, 2014 /PRNewswire via COMTEX/ -- Dentsu Aegis Network and MKTG INC (OTCBB: CMKG), today announced that Aegis Lifestyle, Inc., a newly-formed subsidiary of Dentsu Aegis Network, had entered into a definitive agreement under which Aegis Lifestyle will acquire all outstanding shares of MKTG INC common stock for $2.80 per share in cash in a transaction valued at $52 million. As part of the transaction, all holders of Series D Preferred Stock will convert their shares to common stock prior to the merger and be paid the merger consideration as holders of common stock.
The transaction price represents a premium of 166% over MKTG's closing price of $1.05 as of May 23, 2014, the last trading date prior to the date of this announcement. The terms of the agreement were approved by the boards of directors of both MKTG, Aegis Lifestyle, and Aegis Lifestyle's parent companies Aegis Media Americas, Inc. and Dentsu Aegis Network Ltd. The transaction is expected to be financed by cash on hand at Aegis Media Americas, which has guaranteed the payment obligations of Aegis Lifestyle under the definitive agreement.

"This acquisition represents a significant and important step forward for Dentsu Aegis Network in the U.S.," said Nigel Morris, CEO of Dentsu Aegis Network Americas. "We are very intentional about the brands we bring into our network, and MKTG's unique aptitude in creating face-to-face connections with consumers will help to further expand our network's vision, commitment and ability to help brands effectively navigate today's convergent media landscape."

"This all-cash, premium transaction provides significant and immediate value to our stockholders," said Charlie Horsey, MKTG's Chairman and Chief Executive Officer. Mr. Horsey added: "This is an exciting opportunity for us to join one of the world's leading communications networks. Dentsu Aegis Network's emphasis on innovating the way brands are built is a perfect complement to our mission to build communities around brands through innovation in experiential marketing. We believe there are strong synergies between our approaches and experience, and together, we can continue to grow our offering in direct to consumer marketing, which is becoming a critical component of most industry leading brands and marketing campaigns."

The transaction, which is expected to close during the third calendar quarter of 2014, is subject to the approval of MKTG's stockholders, customary closing conditions, and the requirement that MKTG have minimum available cash at closing of at least $8,000,000, less up to $2,000,000 in transaction expenses. A special meeting of MKTG's stockholders will be held to consider the approval of the proposed merger after the preparation and filing of a proxy statement with the Securities and Exchange Commission and subsequent mailing to stockholders.

About Dentsu Aegis Network

As part of Dentsu Inc., Dentsu Aegis Network is the first truly global communications network for the digital age. Through its eight global network brands - Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, Posterscope and Vizeum - and supported by its specialist/multi-market brands including Amnet, Amplifi, Data2Decisions, Mitchell Communications (PR), psLIVE and 360i - Dentsu Aegis Network is Innovating the Way Brands Are Built for its clients through its best-in-class expertise and capabilities in brand, media and digital communications services. Offering a distinctive and innovative range of products and services, Dentsu Aegis Network is headquartered in London and operates in 110 countries worldwide with over 23,000 dedicated specialists.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full service offices in San Francisco, Los Angeles, Chicago, Cincinnati and London, England. MKTG currently serves a variety of the world's most recognizable brands. Its services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers. MKTG has approximately 340 full time employees and 6,600 non-fulltime field network employees, who execute approximately 70,000 marketing events annually across the United States.

Additional Information and Where to Find It

This communication may be deemed to be solicitation material in respect of the proposed acquisition of MKTG by Aegis Lifestyle, Inc. In connection with the proposed acquisition, MKTG intends to file relevant materials with the SEC, including a proxy statement in preliminary and definitive form. STOCKHOLDERS OF MKTG ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING MKTG'S DEFINITIVE PROXY STATEMENT, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders are able to obtain the documents (once available) free of charge at the SEC's web site, http://www.sec.gov, or for free from MKTG by contacting MKTG at (212) 366-3400. Such documents are not currently available.

Participants in the Solicitation

MKTG and its directors and officers may be deemed to be participants in the solicitation of proxies from MKTG's stockholders with respect to the special meeting of stockholders that will be held to consider the proposed merger. Information about MKTG's directors and executive officers and their ownership of MKTG's securities is set forth in its Annual Report on Form 10-K for the year ended March 31, 2013, which was filed with the SEC on June 24, 2013. Stockholders may obtain additional information regarding the interests of MKTG and its directors and executive officers in the proposed merger, which may be different than those of MKTG's stockholders generally, by reading the proxy statement and other relevant documents regarding the proposed merger, when filed with the SEC.

Cautions Regarding Forward-Looking Statements

This communication contains forward-looking statements. Forward-looking statements may be typically identified by such words as "may," "will," "should," "expect," "anticipate," "plan," "likely," "believe," "estimate," "project," "intend," and other similar expressions among others. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from the expectations expressed in the forward-looking statements. Consequently, no forward-looking statements may be guaranteed and there can be no assurance that the actual results or developments anticipated by such forward looking statements will be realized. Factors which could cause actual results to differ from those projected or contemplated in any such forward-looking statements include, but are not limited to, the following factors: the risk that the conditions to the closing of the merger are not satisfied; litigation relating to the merger; uncertainties as to the timing of the consummation of the merger and the ability of each party to consummate the merger; and risks that the proposed transaction disrupts the current plans and operations of MKTG. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in MKTG's most recent Annual Report on Form 10-K filed with the SEC. MKTG and Dentsu Aegis Network can give no assurance that the conditions to the merger will be satisfied. Neither MKTG nor Dentsu Aegis Network undertake any intent or obligation to publicly update or revise any of these forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE MKTG INC

http://rt.prnewswire.com/rt.gif?NewsItemId=NY36099&Transmission_Id=201405271602PR_NEWS_USPR_____NY36099&DateId=20140527

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-0-
KEYWORD: New York
United Kingdom
INDUSTRY KEYWORD: ADV
PUB
SUBJECT CODE: TNM

News Out!

http://www.emediaworld.com/business/markets/otcbb/mktg-reports-318000-operating-income-quarter-ended-june-30-2013.html

CMKG expands to London...and there's this

"FedEx, Google, Adobe, Mattel, NFL, YouTube and AON which were all recently added to the agency's roster"



(PR Wires) PRW: MKTG INC Continues Growth With First International Office


NEW YORK, NY -- (MARKETWIRE) -- 08/23/12 --
Charlie Horsey, Chairman & CEO of marketing services agency MKTG INC,
announced today that the company has expanded to London, representing the
agency's first office outside the Unites States.
Over the course of the last month, the London team saw their first round of
successful activations of experiential programs for Nike and Beats By Dre.
Kevin Collins, who recently was promoted to the role of General Manager,
Vice President of Business Development, has been leading the UK team and
will continue to be responsible for building MKTG INC's international
presence, growing its client roster, and adding International scale for
existing US-based clients.
The office is the agency's sixth location and enables clients to reach an
international audience of consumers through engaging experiential marketing
and community building programs.
"The timing is perfect for this type of expansion," said Horsey. "Our global
clients and other A-list brands are seeking international scale from us, and
this new market offering will ensure the continued growth of our core
capabilities. Additionally, the 2012 Olympic games offered a great
opportunity for us to hit the ground running with a number of clients and
lay the ground work for this expansion."
This announcement comes after a string of new business for the agency
including FedEx, Google, Adobe, Mattel, NFL, YouTube and AON which were all
recently added to the agency's roster -- further illustrating the agency's
tremendous growth over the past two years.
For all London inquiries please contact Kevin Collins, GM, London at T: 0207
748 5258 or kcollins@mktg.com.
MKTG INC is a marketing services agency that builds national and local
communities around brands by engaging consumers through experiential,
digital, and social marketing. Headquartered in New York, with additional
offices in Cincinnati, Chicago, London, Los Angeles and San Francisco, MKTG
INC produces over 70,000+ brand experiences each year with our 6,500 brand
ambassadors and 42 field offices.
Contact: Christine Perez- O'Rourke DiGennaro Communications
christine@digennaro-usa.com 212.966.9525

CMKG..I wouldn't be surprised if it gets back onto the Nasdaq again at some point. Great company IMO.

CMKG...MKTG INC Reports 41% Increase in Operating Income for Its First Quarter
Ended June 30, 2012


NEW YORK, Aug. 9, 2012 /PRNewswire via COMTEX/ -- MKTG INC (OTC BB: CMKG), a
full service marketing agency, today announced its operating results for its
first quarter ended June 30, 2012.

Operating Results - First Quarter, Fiscal 2013

For its first quarter ended June 30, 2012, Operating Revenue increased $1.7
million or 18% to $11.0 million, compared to $9.3 million for the quarter ended
June 30, 2011. Compensation and general and administrative expenses were $9.5
million for the quarter, compared to $8.2 million for the quarter ended June 30,
2011. Operating income for the quarter increased 41% to $1,514,000, compared to
$1,074,000 for the first quarter of the previous year. Modified EBITDA for the
quarter was $1,865,000, compared to $1,418,000 for the quarter ended June 30,
2011.

"This marks our fifth consecutive quarter generating more than $1,000,000 of
operating income and the third quarter in a row in which we show over 40% growth
in operating income over comparable quarters," said Paul Trager, Chief Financial
Officer. Mr. Trager continued, "As a result our balance sheet continues to
strengthen, evidenced by a $1.4 million increase in cash during the quarter and
a 75% increase in working capital."

"The Q1 performance is a great start to Fiscal 2013 and begins to validate our
recent investments in new business and geographic expansion initiatives. A
majority of our Operating Revenue growth this quarter came from these two
sources," said Charlie Horsey, President and Chief Executive Officer. Mr. Horsey
concluded, "As we build on the momentum generated this quarter, we will continue
to invest in these and other areas that support and expand our long-term growth
initiatives while simultaneously protecting our margins."

Fair Value Adjustment to Compound Embedded Derivatives

The Company's income statement for the current quarter includes an accounting
adjustment of $612,000, shown below the operating income line. This is a
non-cash fair value adjustment to compound embedded derivatives generated from
the Company's December 2009 financing. The amount of this adjustment is driven
by a number of factors, most importantly, by the value of the Company's stock.
As its stock price fluctuates, the Company is required to book adjustments, with
increases in stock price reducing net income, and declines in stock price
increasing net income. Consequently the Company believes it is most appropriate
to focus on its operating income as the basis for assessing operating
performance.

Operating Revenue and Modified EBITDA

The Company believes Operating Revenue and Modified EBITDA are key performance
indicators. The Company defines Operating Revenue as sales less reimbursable
program costs and expenses and outside production and other program expenses.
Operating Revenue is the net amount derived from sales to customers that
management believes is available to fund compensation, general and
administrative expenses and capital expenditures. The Company defines Modified
EBITDA as income before interest, income taxes, depreciation and amortization
plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental
measure to evaluate operational performance. Operating Revenue and Modified
EBITDA are Non-GAAP financial measures disclosed by management to provide
additional information to investors in order to provide them with alternative
methods for assessing the Company's financial condition and operating results.
These measures are not in accordance with, or a substitute for, GAAP and may be
different from or inconsistent with Non-GAAP financial measures used by other
companies. Reconciliations of Operating Revenue to sales and Modified EBITDA to
operating income are provided at the end of this press release.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full
service offices in San Francisco, Los Angeles, Chicago, Cincinnati and London,
England. The Company currently serves a variety of the world's most recognizable
brands. Its services include experiential marketing, digital marketing, retail
promotions and strategic research and planning. The firm's programs help its
clients profitably connect with consumers and create networks of brand advocates
to generate brand awareness and higher sales for its customers. For more
information, please visit www.mktg.com.

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. Forward-looking statements in this press release
are not promises or guarantees and are subject to risks and uncertainties that
could cause our actual results to differ materially from those anticipated.
These statements are based on management's current expectations and assumptions
and are naturally subject to uncertainty and changes in circumstances. We
caution you not to place undue reliance upon any such forward-looking
statements. Actual results may vary materially from those expressed or implied
by the statements herein. 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, 2012 under "Risk
Factors," and include the risk that projected business opportunities will fail
to materialize or will be delayed. The Form 10-K may be obtained by visiting the
Company's website or by accessing the database maintained by the Securities and
Exchange Commission at http://www.sec.gov.



MKTG INC

Consolidated Statements of Operations

For The Three Months Ended June 30, 2012 and 2011

(Unaudited)





Three Months Ended

June 30,

2012 2011

Sales $ 35,436,527 $ 31,328,685

Operating revenue $ 11,040,664 $ 9,328,402

Operating income $ 1,514,014 $ 1,074,229

Income before provision for $ 902,568 $ 1,135,899

income taxes

Provision for income taxes $ 646,000 $ 45,000

Net income $ 256,568 $ 1,090,899



Earnings per share:

Basic $ 0.03 $ .14

Diluted $ 0.02 $ .07




MKTG INC

Consolidated Balance Sheets

June 30, 2012 and March 31, 2012



June 30, 2012 March 31, 2012

(Unaudited)



Total assets $ 39,767,247 $ 38,233,217

Total liabilities $ 27,290,138 $ 26,110,262

Preferred stock $ 2,706,819 $ 2,569,347

Total stockholders' equity $ 9,770,290 $ 9,553,608




MKTG INC

Operating Revenue Schedule

For The Three Months Ended June 30, 2012 and 2011

(Unaudited)



Three Months Ended

June 30,

2012 2011



Sales $ 35,436,527 $ 31,328,685

Reimbursable program costs and 6,276,573 7,147,447

expenses

Outside production and other 18,119,290 14,852,836

program expenses

Operating Revenue $ 11,040,664 $ 9,328,402




MKTG INC

Modified EBITDA Schedule

For The Three Months Ended June 30, 2012 and 2011

(Unaudited)



Three Months Ended

June 30,

2012 2011



Operating income $ 1,514,014 $ 1,074,229

Depreciation and amortization 238,439 241,412

Share based compensation 112,632 102,081

expense

Modified EBITDA $ 1,865,085 $ 1,417,722



SOURCE MKTG INC



www.prnewswire.com


Copyright (C) 2012 PR Newswire. All rights reserved

-0-




KEYWORD: New York

INDUSTRY KEYWORD: ADV

PUB

SUBJECT CODE: ERN

News out..MKTG INC Reports 29% Increase in Operating Income for Its Fiscal Year
Ended March 31, 2012


NEW YORK, June 28, 2012 /PRNewswire via COMTEX/ -- MKTG INC (OTC BB: CMKG), a
full service marketing agency, today announced its operating results for its
fourth quarter and fiscal year ended March 31, 2012.

Operating Results - Fourth Quarter, Fiscal 2012

For its fourth quarter ended March 31, 2012, Operating Revenue increased $1.6
million or 18% to $10.5 million, compared to $8.9 million for the quarter ended
March 31, 2011. Compensation and general and administrative expenses were $9.4
million for the quarter, compared to $8.2 million for the quarter ended March
31, 2011. Operating income for the quarter increased 54% to $1,042,000, compared
to $678,000 for the fourth quarter of the previous year. Modified EBITDA for the
quarter was $1,381,000, compared to $1,028,000 for the quarter ended March 31,
2011.

Operating Results - Fiscal 2012

For its fiscal year ended March 31, 2012, Operating Revenue increased $3.7
million or 11% to $38.5 million, compared to $34.8 million for its fiscal year
ended March 31, 2011. Compensation and general and administrative expenses were
$34.2 million for the fiscal 2012, compared to $31.5 million for fiscal 2011.
Operating income for fiscal 2012 increased 29% to $4.2 million, compared to $3.3
million for fiscal 2011. Modified EBITDA for fiscal 2012 was $5.6 million,
compared to $4.8 million for fiscal 2011.

"This was a record-breaking year for MKTG that featured all-time highs in sales,
Operating Revenue and operating income," said Paul Trager, Chief Financial
Officer. Mr. Trager continued, "Demonstrating our financial stability, this past
year we achieved a significant milestone with the pay-off of all outstanding
debt and the elimination of our working capital deficit."

"Our tremendous performance validates our business model of sustainable,
profitable growth and expanding margins," said Charlie Horsey, President and
Chief Executive Officer. Mr. Horsey concluded, "We have invested $500,000 in
growth initiatives and will continue to explore and invest in geographic and
service offering expansion. We believe this, coupled with significant new
business efforts, will provide continued success in Fiscal 2013."

Operating Revenue and Modified EBITDA

The Company believes Operating Revenue and Modified EBITDA are key performance
indicators. The Company defines Operating Revenue as sales less reimbursable
program costs and expenses and outside production and other program expenses.
Operating Revenue is the net amount derived from sales to customers that
management believes is available to fund compensation, general and
administrative expenses and capital expenditures. The Company defines Modified
EBITDA as income before interest, income taxes, depreciation and amortization
plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental
measure to evaluate operational performance. Operating Revenue and Modified
EBITDA are Non-GAAP financial measures disclosed by management to provide
additional information to investors in order to provide them with alternative
methods for assessing the Company's financial condition and operating results.
These measures are not in accordance with, or a substitute for, GAAP and may be
different from or inconsistent with Non-GAAP financial measures used by other
companies. Reconciliations of Operating Revenue to sales and Modified EBITDA to
operating income are provided at the end of this press release.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full
service offices in San Francisco, Los Angeles, Chicago, Cincinnati and London,
England. The Company currently serves a variety of the world's most recognizable
brands. Its services include experiential marketing, digital marketing, retail
promotions and strategic research and planning. The firm's programs help its
clients profitably connect with consumers and create networks of brand advocates
to generate brand awareness and higher sales for its customers. For more
information, please visit www.mktg.com.

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. Forward-looking statements in this press release
are not promises or guarantees and are subject to risks and uncertainties that
could cause our actual results to differ materially from those anticipated.
These statements are based on management's current expectations and assumptions
and are naturally subject to uncertainty and changes in circumstances. We
caution you not to place undue reliance upon any such forward-looking
statements. Actual results may vary materially from those expressed or implied
by the statements herein. 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, 2012 under "Risk
Factors," and include the risk that projected business opportunities will fail
to materialize or will be delayed. The Form 10-K may be obtained by visiting the
Company's website or by accessing the database maintained by the Securities and
Exchange Commission at http://www.sec.gov.



MKTG INC

Consolidated Statements of Operations

For The Three Months (Unaudited) and Fiscal Years Ended March 31, 2012 and 2011



Three Months Ended Fiscal Years Ended

March 31, (Unaudited) March 31,

2012 2011 2012 2011

Sales $ 29,571,053 $ 28,449,441 $ 125,485,075 $ 117,886,984

Operating revenue $ 10,477,318 $ 8,880,617 $ 38,453,154 $ 34,777,818

Operating income $ 1,042,033 $ 678,284 $ 4,222,590 $ 3,269,817

Income (loss) before (benefit) $ (138,560) $ (1,151,105) $ 3,826,384 $ 30,633

provision for income taxes

(Benefit) provision for income taxes $ (1,723,026) $ 174,000 $ (1,573,026) $ 174,000

Net income (loss) $ 1,584,466 $ (1,325,105) $ 5,399,410 $ (143,367)



Earnings (loss) per share:

Basic $ 0.19 $ (0.17) $ 0.66 $ (0.02)

Diluted $ 0.10 $ (0.17) $ 0.34 $ (0.02)




MKTG INC

Consolidated Balance Sheets

March 31, 2012 and 2011



March 31, 2012 March 31, 2011



Total assets $ 38,233,217 $ 32,240,753

Total liabilities $ 26,110,262 $ 25,947,885

Preferred stock $ 2,569,347 $ 2,003,085

Total stockholders' equity $ 9,553,608 $ 4,289,783




MKTG INC

Operating Revenue Schedule

For The Three Months (Unaudited) and Fiscal Years Ended March 31, 2012 and 2011



Three Months Ended Fiscal Years Ended

March 31, (Unaudited) March 31,

2012 2011 2012 2011



Sales $ 29,571,053 $ 28,449,441 $ 125,485,075 $ 117,886,984

Reimbursable program costs and expenses 5,020,829 5,015,646 23,398,344 22,477,682

Outside production and other program expenses 14,072,906 14,553,178 63,633,577 60,631,484

Operating Revenue $ 10,477,318 $ 8,880,617 $ 38,453,154 $ 34,777,818




MKTG INC

Modified EBITDA Schedule

For The Three Months (Unaudited) and Fiscal Years Ended March 31, 2012 and 2011



Three Months Ended Fiscal Years Ended

March 31, (Unaudited) March 31,

2012 2011 2012 2011



Operating income $ 1,042,033 $ 678,284 $ 4,222,590 $ 3,269,817

Depreciation and amortization 226,197 242,998 939,218 1,071,982

Share based compensation expense 112,467 107,173 444,276 495,799

Modified EBITDA $ 1,380,697 $ 1,028,455 $ 5,606,084 $ 4,837,598



SOURCE MKTG INC



www.prnewswire.com


Copyright (C) 2012 PR Newswire. All rights reserved

-0-

CMKG.. $0.75

CMKG.. No updates to report since last post....

CMKG..

No updates to report since last post....

CMKG.. $0.93 I continue to add..

07/29/11 10:38 AM EDT Buy 1500 CMKG Executed @ $0.88 Details | Edit
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MKTG INC Reports 56% Increase in Operating Income for Its First Quarter of Fiscal Year 2012 Ended June 30, 2011 Compared to Same Period of Its Prior Fiscal Year

PR Newswire - Jul 29 09:13 EDT

Alert hits:pos all
Company Symbols: Berlin:IMK, NASDAQ-OTCBB:CMKG


NEW YORK, July 29, 2011 /PRNewswire/ -- MKTG INC (OTC BB: CMKG), a full service marketing agency, today announced its operating results for its first quarter ended June 30, 2011.

Operating Results - First Quarter, Fiscal 2012

For its first quarter ended June 30, 2011, Operating Revenue increased 14% to $9.3 million, compared to $8.2 million for the quarter ended June 30, 2010. Compensation and general and administrative expenses were $8.3 million for the quarter, an increase of $787,000 compared to the same period of the previous year. Operating income for the quarter increased 56% to $1,074,000, compared to $690,000 for the first quarter of the previous year. Modified EBITDA for the quarter was $1,418,000, compared to $1,056,000 for the quarter ended June 30, 2011.

"The percentage growth in Operating Revenue continues to exceed the percentage growth in compensation and general and administrative expenses, resulting in an improvement in our first quarter operating income as compared to last year's first quarter," said Paul Trager, Chief Financial Officer. Mr. Trager continued, "In addition, working capital increased $1.1 million as compared to March 31, 2011. The continued profitability and margin stability have contributed to an improved balance sheet."

"Our First Quarter has been strong and has set the stage for continued growth for MKTG, Inc. for Fiscal 2012," said Charlie Horsey, President and Chief Executive Officer. Mr. Horsey concluded, "Management is continuing to pursue both new and organic growth opportunities and believes that FY12 will reflect an increase in Year over Year Operating Revenue for the Company."

Operating Revenue and Modified EBITDA

The Company believes Operating Revenue and Modified EBITDA are key performance indicators. The Company defines Operating Revenue as sales less reimbursable program costs and expenses, and outside production and other program expenses. Operating Revenue is the net amount derived from sales to customers that management believes is available to fund compensation, general and administrative expenses, and capital expenditures. The Company defines Modified EBITDA as income before interest, income taxes, depreciation and amortization plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental measure to evaluate operational performance. Operating Revenue and Modified EBITDA are Non-GAAP financial measures disclosed by management to provide additional information to investors in order to provide them with alternative methods for assessing the Company's financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP and may be different from or inconsistent with Non-GAAP financial measures used by other companies. Reconciliations of Operating Revenues to sales and Modified EBITDA to operating income are provided at the end of this press release.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full service offices in San Francisco, Los Angeles, Chicago and Cincinnati. The Company currently serves a variety of the world's most recognizable brands. Its services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers. For more information, please visit www.mktg.com.

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. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. 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, 2011 under "Risk Factors," and include the risk that projected business opportunities will fail to materialize or will be delayed. The Form 10-K may be obtained by visiting the Company's website or by accessing the database maintained by the Securities and Exchange Commission at http://www.sec.gov.

CMKG.. $1.00

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full service offices in San Francisco, Los Angeles, Chicago and Cincinnati. The Company currently serves a variety of the world's most recognizable brands. Its services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers. For more information, please visit www.mktg.com.

NEW YORK, July 29, 2011 /PRNewswire/ -- MKTG INC (OTC BB: CMKG), a full service marketing agency, today announced its operating results for its first quarter ended June 30, 2011.

Operating Results - First Quarter, Fiscal 2012

For its first quarter ended June 30, 2011, Operating Revenue increased 14% to $9.3 million, compared to $8.2 million for the quarter ended June 30, 2010. Compensation and general and administrative expenses were $8.3 million for the quarter, an increase of $787,000 compared to the same period of the previous year. Operating income for the quarter increased 56% to $1,074,000, compared to $690,000 for the first quarter of the previous year. Modified EBITDA for the quarter was $1,418,000, compared to $1,056,000 for the quarter ended June 30, 2011.

"The percentage growth in Operating Revenue continues to exceed the percentage growth in compensation and general and administrative expenses, resulting in an improvement in our first quarter operating income as compared to last year's first quarter," said Paul Trager, Chief Financial Officer. Mr. Trager continued, "In addition, working capital increased $1.1 million as compared to March 31, 2011. The continued profitability and margin stability have contributed to an improved balance sheet."

CMKG 1.25 now. This will be back on the Nasdaq soon IMO

CMKG.. $0.88

NEW YORK, July 29, 2011 /PRNewswire/ -- MKTG INC (OTC BB: CMKG), a full service marketing agency, today announced its operating results for its first quarter ended June 30, 2011.

Operating Results - First Quarter, Fiscal 2012

For its first quarter ended June 30, 2011, Operating Revenue increased 14% to $9.3 million, compared to $8.2 million for the quarter ended June 30, 2010. Compensation and general and administrative expenses were $8.3 million for the quarter, an increase of $787,000 compared to the same period of the previous year. Operating income for the quarter increased 56% to $1,074,000, compared to $690,000 for the first quarter of the previous year. Modified EBITDA for the quarter was $1,418,000, compared to $1,056,000 for the quarter ended June 30, 2011.

"The percentage growth in Operating Revenue continues to exceed the percentage growth in compensation and general and administrative expenses, resulting in an improvement in our first quarter operating income as compared to last year's first quarter," said Paul Trager, Chief Financial Officer. Mr. Trager continued, "In addition, working capital increased $1.1 million as compared to March 31, 2011. The continued profitability and margin stability have contributed to an improved balance sheet."

CMKG.. $0.80..

MKTG INC Reports 56% Increase in Operating Income for Its First Quarter of Fiscal Year 2012 Ended June 30, 2011 Compared to Same Period of Its Prior Fiscal Year...

CMKG.. $0.95 high..!!!

Closes at $0.8888.. hank

.49 x .55

CMKG..$0.44

‘mktg, inc.’, through its wholly-owned subsidiaries Inmark Services LLC, Optimum Group LLC, U.S. Concepts LLC and Digital Intelligence Group LLC, is a full-service marketing agency. We develop, manage and execute sales promotion programs at both national and local levels, utilizing both online and offline media channels. Our programs help our clients effectively promote their goods and services directly to retailers and consumers and are intended to assist them in achieving maximum impact and return on their marketing investment. Our activities reinforce brand awareness, provide incentives to retailers to order and display our clients’ products, and motivate consumers to purchase those products, and are designed to meet the needs of our clients by focusing on communities of consumers who want to engage brands as part of their lifestyles.

Our services include experiential and face to face marketing, event marketing, interactive marketing, ethnic marketing, and all elements of consumer and trade promotion, and are marketed directly to our clients by our sales force operating out of offices located in New York, New York; Cincinnati, Ohio; Chicago, Illinois; Los Angeles, California and San Francisco, California.

‘mktg, inc.’ was formed under the laws of the State of Delaware in March 1992 and is the successor to a sales promotion business originally founded in 1972. ‘mktg, inc.’ began to engage in the promotion business following a merger consummated on September 29, 1995 that resulted in Inmark becoming its wholly-owned subsidiary.

Our corporate headquarters are located at 75 Ninth Avenue, New York, New York 10011, and our telephone number is 212-660-3800. Our Web site is www.mktg.com. Copies of all reports we file with the Securities and Exchange Commission are available on our Web site.

Results of Operations

Overview

For the nine months ended December 31, 2010 we generated $2,592,000 in operating income, a $3,325,000 increase over the ($733,000) operating loss realized in the same period of the prior fiscal year. This improvement was primarily the result of an increase of $2,108,000 in Operating Revenue, as well as the previously reported expense reduction actions taken by management. These efforts included a reduction in our workforce in prior periods, resulting in a $1,304,000 reduction in compensation expense for the nine months ended December 31, 2010, compared to the same period in the prior year. Operating income for the nine months ended December 31, 2010 was negatively impacted by approximately $410,000 of legal costs incurred in connection with the derivative lawsuit commenced by Brian Murphy, which is described in Legal Proceedings below.

Our net income for the nine months ended December 31, 2010 was $1,182,000, which reflects a $906,000 non-cash charge for the fair value adjustment to the derivative financial instruments reflected on our balance sheets in connection with our December 2009 financing. This adjustment is primarily attributable to the rise in the price of our Common Stock during the period, which under generally accepted accounting principles required us to increase the carrying values of the Warrant derivative liability and other derivative liabilities on our balance sheets and record the amount of such increases under “Fair value adjustments to compound embedded derivatives” on our statements of operations. A more detailed explanation of the accounting treatment for these derivative financial instruments is provided in Note 3 to our Condensed Consolidated Financial Statements in Item 1 of this Report.

Operating Revenue and Modified EBITDA

We believe Operating Revenue and Modified EBITDA are key performance indicators. We define Operating Revenue as our sales less reimbursable program costs and expenses, and outside production and other program expenses. Operating Revenue is the net amount derived from sales to customers that we believe is available to fund our compensation, general and administrative expenses, and capital expenditures. We define Modified EBITDA as income before interest, income taxes, depreciation and amortization plus other non-cash expenses. Modified EBITDA is a supplemental measure to evaluate operational performance. Operating Revenue and Modified EBITDA are Non-GAAP financial measures disclosed by management to provide additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with Non-GAAP financial measures used by other companies.

The following table presents operating data expressed as a percentage of Operating Revenue for the three and nine months ended December 31, 2010 and 2009, respectively:


Three Months Ended
December 31, Nine Months Ended
December 31,
2010 2009 2010 2009

Statement of Operations Data:
Operating revenue 100.0 % 100.0 % 100.0 % 100.0 %
Compensation expense 71.8 % 73.4 % 69.5 % 81.1 %
General and administrative expense 20.2 % 23.2 % 20.5 % 22.0 %
Operating income (loss) 8.0 % 3.4 % 10.0 % (3.1 %)
Interest expense, net (2.1 %) (0.5 %) (2.0 %) (0.2 %)
Other income 0.2 % 0.0 % 0.1 % 1.1 %
Fair value adjustments to compound embedded derivatives 6.5 % 3.3 % (3.5 %) 0.0 %
Income (loss) before provision for income taxes 12.6 % 6.2 % 4.6 % (2.2 %)
Provision for income taxes 0.0 % 0.0 % 0.0 % 0.0 %
Net income (loss) 12.6 % 6.2 % 4.6 % (2.2 %)



Sales. Sales consist of fees for services, commissions, reimbursable program costs and expenses and other production and program expenses. We purchase a variety of items and services on behalf of our clients for which we are reimbursed pursuant to our client contracts. The amount of reimbursable program costs and expenses, and outside production and other program expenses which are included in revenues will vary from period to period, based on the type and scope of the service being provided. Sales for the three months ended December 31, 2010 increased 32% to $31,745,000, compared to $24,102,000 for the quarter ended December 31, 2009. Sales for the nine months ended December 31, 2010 increased 45% to $89,438,000, compared to $61,789,000 for the nine months ended December 31, 2009. These increases in sales are primarily due to an increase in events we executed for our largest customer, Diageo North America, Inc. (“Diageo”), and an increase in experiential marketing revenues, partially offset by a decrease in trade and digital marketing revenues.

Reimbursable Program Costs and Expenses. Reimbursable program costs and expenses are primarily direct labor, travel and product costs generally associated with events we execute for Diageo. Reimbursable program costs and expenses for the three months ended December 31, 2010 and 2009 were $5,881,000 and $4,150,000, respectively. Reimbursable program costs and expenses for the nine months ended December 31, 2010 and 2009 were $17,462,000 and $11,912,000, respectively. These increases are primarily due to the increase in the number of events we executed during the three and nine month periods ended December 31, 2010 versus the same periods in Fiscal 2010.

Outside Production and other Program Expenses. Outside production and other program expenses consist of the costs of purchased materials, media, services, certain direct labor charged to programs and other expenditures incurred in connection with and directly related to sales but which are not classified as reimbursable program costs and expenses. Outside production and other program expenses for the three months ended December 31, 2010 were $17,290,000 compared to $11,823,000 for the three months ended December 31, 2009. This increase is primarily due to an increase in the Diageo events we executed during the period, partially offset by reductions in our experiential and digital marketing programs. Outside production and other program expenses for the nine months ended December 31, 2010 were $46,078,000 compared to $26,087,000 for the nine months ended December 31, 2009. This increase is primarily due to the increase in the Diageo and experiential events we executed during the period, partially offset by reductions in our trade and digital marketing programs.

Operating Revenue. For the three months ended December 31, 2010, Operating Revenue increased by 5% to $8,574,000, compared to $8,129,000 for the three months ended December 31, 2009. For the nine months ended December 31, 2010, Operating Revenue increased by 9% to $25,898,000, compared to $23,790,000 for the nine months ended December 31, 2009. These increases in Operating Revenue are primarily due to an increase in the Diageo and experiential events we executed during the periods, partially offset by a decrease in digital marketing revenues. Operating Revenue as a percentage of Sales for the three and nine months ending December 31, 2010 were 27% and 29%, respectively, compared to 34% and 39% for the three and nine months ending December 31, 2009. These decreases are primarily due to an increase in Diageo events we executed, which typically include a higher percentage of pass-through expense billed at cost. A reconciliation of Sales to Operating Revenues for the three and nine months ended December 31, 2010 and 2009 is set forth below.


Three Months Ended
December 31, Nine Months Ended
December 31,
Sales 2010 % 2009 % 2010 % 2009 %
Sales – U.S. GAAP $ 31,745,000 100 $ 24,102,000 100 $ 89,438,000 100 $ 61,789,000 100
Reimbursable program costs and outside production expenses 23,171,000 73 15,973,000 66 63,540,000 71 37,999,000 61
Operating Revenue – Non-GAAP $ 8,574,000 27 $ 8,129,000 34 $ 25,898,000 29 $ 23,790,000 39

Compensation Expense. Compensation expense, exclusive of reimbursable program costs and expenses and other program expenses, consists of the salaries, payroll taxes and benefit costs related to indirect labor, overhead personnel and certain direct labor otherwise not charged to programs. For the three months ended December 31, 2010, compensation expense increased $189,000 to $6,156,000, compared to $5,967,000 for the three months ended December 31, 2009. This increase is primarily the result of an increase in accrued bonuses, partially offset by a decrease in share based compensation expense. For the nine months ended December 31, 2010, compensation expense decreased $1,304,000 to $17,990,000, compared to $19,294,000 for the nine months ended December 31, 2009. This decrease is primarily the result of staff reductions in the trade and digital marketing departments, a reduction in share based compensation expense and a decrease in severance expense, partially offset by an increase in accrued bonuses.

General and Administrative Expenses. General and administrative expenses consists of office and equipment rent, depreciation and amortization, professional fees, other overhead expenses and charges for doubtful accounts. For the three months ended December 31, 2010, general and administrative expenses decreased $158,000 to $1,730,000, compared to $1,888,000 for the three months ended December 31, 2009. This decrease is primarily the result of non-recurring broker fee paid in 2009 on the sublease of our principal office space in New York, partially offset by legal fees we incurred in the defense of the derivative lawsuit commenced by Brain Murphy. For the nine months ended December 31, 2010, general and administrative expenses increased $87,000 to $5,316,000, compared to $5,229,000 for the nine months ended December 31, 2009. This increase is primarily the result of legal fees we incurred in the defense of the derivative lawsuit commenced by Brain Murphy, partially offset by reductions in depreciation, communication expenses, and a non-recurring broker fee paid in 2009 on the sublease of our principal office space in New York.

Modified EBITDA. As described above, we believe that Modified EBITDA is an additional key performance indicator. We use it to measure and evaluate operational performance and it is one of the metrics against which we are tested under the Secured Notes as described in the Liquidity and Capital Resources section below. The Company’s Modified EBITDA for the three months ended December 31, 2010 was $1,077,000 compared to $989,000 for the three months end December 31, 2009. For the nine months ended December 31, 2010 the Company’s modified EBITDA was $3,855,000 compared to $809,000 for the nine months end December 31, 2009. A reconciliation of operating income (loss) to Modified EBITDA for the three and nine months ended December 31, 2010 and 2009 is set forth below.

CMKG.. $0.44 10Q..

‘mktg, inc.’
Condensed Consolidated Balance Sheets
December 31, 2010 (Unaudited) and March 31, 2010

December 31, 2010 March 31, 2010

Assets
Current assets:
Cash and cash equivalents $ 6,522,300 $ 663,786
Accounts receivable, net of allowance for doubtful accounts of $306,000 at December 31, 2010 and $288,000 at March 31, 2010 9,276,751 9,043,506
Unbilled contracts in progress 200,165 740,540
Deferred contract costs 904,556 1,235,967
Prepaid expenses and other current assets 224,818 611,947
Total current assets 17,128,590 12,295,746

Property and equipment, net 1,832,342 2,115,506

Restricted cash 500,000 —
Goodwill 10,052,232 10,052,232
Intangible assets - net 1,004,207 1,245,469
Other assets 484,985 485,078
Total assets $ 31,002,356 $ 26,194,031

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 1,148,651 $ 2,158,687
Accrued compensation 1,718,044 431,614
Accrued job costs 3,355,057 3,190,782
Other accrued liabilities 1,777,107 2,002,427
Deferred revenue 10,389,681 8,365,407
Total current liabilities 18,388,540 16,148,917

Deferred rent 1,496,542 1,622,953
Senior secured notes payable 1,739,789 1,514,340
Warrant derivative liability 1,859,205 849,211
Put option derivative 6,851 110,940
Total liabilities 23,490,927 20,246,361

Commitments and contingencies

Redeemable Series D Convertible Participating Preferred Stock, $2,865,342 redemption and liquidation value, par value $1.00: 2,500,000 designated, 2,500,000 issued and outstanding at December 31, 2010 and March 31, 2010, respectively 1,877,978 1,503,589

Stockholders’ equity:
Class A convertible preferred stock, par value $.001; authorized 650,000 shares; none issued and outstanding — —
Class B convertible preferred stock, par value $.001; authorized 700,000 shares; none issued and outstanding — —
Preferred stock, undesignated; authorized 3,650,000 shares; none issued and outstanding — —
Common stock, par value $.001; authorized 25,000,000 shares; 8,590,315 shares issued and outstanding at December 31, 2010 and 8,613,288 shares issued and outstanding at and March 31, 2010 8,590 8,613
Additional paid-in capital 14,195,520 13,806,871
Accumulated deficit (8,543,777 ) (9,351,126 )
Treasury stock at cost, 37,341 shares at December 31, 2010 and 19,189 shares at March 31, 2010 (26,882 ) (20,277 )
Total stockholders’ equity 5,633,451 4,444,081
Total liabilities and stockholders’ equity $ 31,002,356 $ 26,194,031


See notes to unaudited condensed consolidated financial statements.


3
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‘mktg, inc.’
Condensed Consolidated Statements of Operations
Three and Nine Months Ended December 31, 2010 and 2009
(Unaudited)


Three Months Ended
December 31, Nine Months Ended
December 31,
2010 2009 2010 2009

Sales $ 31,744,668 $ 24,102,293 $ 89,437,543 $ 61,788,780

Operating expenses:
Reimbursable program costs and expenses 5,881,340 4,149,839 17,462,036 11,911,739
Outside production and other program expenses 17,289,650 11,822,787 46,078,306 26,087,184
Compensation expense 6,156,253 5,967,035 17,989,548 19,293,637
General and administrative expenses 1,730,419 1,888,395 5,316,120 5,229,027
Total operating expenses 31,057,662 23,828,056 86,846,010 62,521,587

Operating income (loss) 687,006 274,237 2,591,533 (732,807 )

Interest expense, net (176,876 ) (40,505 ) (515,767 ) (63,341 )
Other income 11,877 — 11,877 —
Fair value adjustments to compound embedded derivatives 560,269 269,493 (905,905 ) 269,493

Income (loss) before provision for income taxes 1,082,276 503,225 1,181,738 (526,655 )

Provision for income taxes — — — —

Net income (loss) $ 1,082,276 $ 503,225 $ 1,181,738 $ (526,655 )

Basic earnings (loss) per share $ .13 $ .07 $ .15 $ (.07 )
Diluted earnings (loss) per share $ .07 $ .06 $ .08 $ (.07 )

Weighted average number of common shares outstanding:
Basic 8,030,082 7,589,551 7,934,134 7,055,068
Diluted 15,804,981 8,951,461 15,706,298 7,055,068

CMKG.. $0.44 earnings..

MKTG INC Reports $3.3 Million Increase in Operating Income for Its Nine Months Ended December 31, 2010 Compared to Same Period of Its Prior Fiscal Year

PR Newswire - Feb 03 at 16:23

Company Symbols: NASDAQ-OTCBB:CMKG


NEW YORK, Feb. 3, 2011 /PRNewswire/ -- MKTG INC (OTC Bulletin Board: CMKG), a full service marketing agency, today announced its operating results for its third quarter ended December 31, 2010.

Operating Results - Third Quarter, Fiscal 2011

For its third quarter ended December 31, 2010, Operating Revenue increased 6% to $8.6 million, compared to $8.1 million for the quarter ended December 31, 2009. Compensation and general and administrative expenses, amounting to $7.9 million for the quarter, including an accrual for potential bonuses, were flat compared to the same period of the previous year. Operating income for the quarter increased $413,000 to $687,000, compared to operating income of $274,000 for the third quarter of the previous year. Modified EBITDA for the quarter was $1.1 million, compared to $989,000 for the quarter ended December 31, 2009.

Operating Results – For The Nine Months Ended December 31, 2010

For the nine months ended December 31, 2010, Operating Revenue increased $2.1 million or 9% to $25.9 million, compared to $23.8 million for the nine months ended December 31, 2009. Compensation and general and administrative expenses were $23.3 million for the period, a decrease of $1.2 million from the same period of the previous year. Operating income for the period increased $3.3 million to $2.6 million, compared to an operating loss of $733,000 for the nine months ended December 31, 2009. Modified EBITDA for the period was $3.9 million, compared to $809,000 for the nine months ended December 31, 2009.

"We continue to show improvement in operating results, with our third quarter operating income more than doubling last year's third quarter operating income," said Jim Haughton, Senior Vice President - Controller. Mr. Haughton continued, "These results reflect our firm commitment to hold the line on base costs, which consist of general and administrative expenses, and compensation before bonuses. We are currently targeting these base costs at between $7.3 and $7.5 million per quarter, before giving effect to the significant costs associated with the derivative litigation."

"With three quarters of our Fiscal Year behind us and a Q4 appearing to be comparable with or better than Q3, MKTG INC is projecting to have a tremendous year. Both the management team and employees have worked tirelessly over the past two years to right the ship and to deliver both the quality of work our clients require along with the type of financial performance our shareholders expect," said Charlie Horsey, President and Chief Executive Officer.

Mr. Haughton added: "As in prior periods, our income statement includes a non-cash fair value adjustment to the derivative financial instruments generated from our December 2009 financing. This adjustment, shown below the operating income line, is driven by a number of factors, most importantly, by the value of our stock. As our stock price fluctuates, we will be required to book adjustments, with increases in stock price reducing net income, and declines in stock price increasing net income. Consequently, we think it more appropriate to focus on operating income than net income as the basis for assessing operating performance."

Operating Revenue and Modified EBITDA

The Company believes Operating Revenue and Modified EBITDA are key performance indicators. The Company defines Operating Revenue as sales less reimbursable program costs and expenses, and outside production and other program expenses. Operating Revenue is the net amount derived from sales to customers that management believes is available to fund compensation, general and administrative expenses, and capital expenditures. The Company defines Modified EBITDA as income before interest, income taxes, depreciation and amortization plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental measure to evaluate operational performance. Operating Revenue and Modified EBITDA are Non-GAAP financial measures disclosed by management to provide additional information to investors in order to provide them with alternative methods for assessing the Company's financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with Non-GAAP financial measures used by other companies. Reconciliations of Operating Revenues to sales and Modified EBITDA to operating income are provided at the end of this press release.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full service offices in San Francisco, Los Angeles, Chicago and Cincinnati. The Company currently serves a variety of the world's most recognizable brands. Its services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers. For more information, please visit www.mktg.com.

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. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. 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, 2010 under "Risk Factors," and include the risk that projected business opportunities will fail to materialize or will be delayed. The Form 10-K may be obtained by visiting the Company's website or by accessing the database maintained by the Securities and Exchange Commission at http://www.sec.gov.


MKTG INC

Condensed Consolidated Statements of Operations

For The Three and Nine Months Ended December 31, 2010 and 2009

(Unaudited)



Three Months Ended Nine Months Ended

December 31, December 31,

2010 2009 2010 2009

Sales $ 31,744,668 $ 24,102,293 $ 89,437,543 $ 61,788,780

Operating revenue $ 8,573,678 $ 8,129,667 $ 25,897,201 $ 23,789,857

Operating income (loss) $ 687,006 $ 274,237 $ 2,591,533 $ (732,807)

Income (loss) before
provision for income
taxes $ 1,082,276 $ 503,225 $ 1,181,738 $ (526,655)

Provision for income
taxes $ - $ - $ - $ -

Net income (loss) $ 1,082,276 $ 503,225 $ 1,181,738 $ (526,655)



Earnings (loss) per
share:

Basic $ 0.13 $ 0.07 $ 0.15 $ (0.07)

Diluted $ 0.07 $ 0.06 $ 0.08 $ (0.07)










MKTG INC

Condensed Consolidated Balance Sheets

December 31, 2010 and March 31, 2010



December 31, 2010

(Unaudited) March 31, 2010

Total assets $ 31,002,356 $ 26,194,031

Total liabilities $ 23,490,927 $ 20,246,361

Preferred stock $ 1,877,978 $ 1,503,589

Total stockholders' equity $ 5,633,451 $ 4,444,081










MKTG INC

Operating Revenue Schedule

For The Three and Nine Months Ended December 31, 2010 and 2009

(Unaudited)



Three Months Ended Nine Months Ended

December 31, December 31,

2010 2009 2010 2009



Sales $ 31,744,668 $ 24,102,293 $ 89,437,543 $ 61,788,780

Reimbursable program
costs and expenses 5,881,340 4,149,839 17,462,036 11,911,739

Outside production and
other program expenses 17,289,650 11,822,787 46,078,306 26,087,184

Operating Revenue $ 8,573,678 $ 8,129,667 $ 25,897,201 $ 23,789,857










MKTG INC

Modified EBITDA Schedule

For The Three and Nine Months Ended December 31, 2010 and 2009

(Unaudited)



Three Months Ended Nine Months Ended

December 31, December 31,

2010 2009 2010 2009



Operating income (loss) $ 687,006 $ 274,237 $ 2,591,533 $ (732,807)

Depreciation and amortization 270,132 292,512 828,984 899,655

Income tax expense 15,000 - 45,000 -

Share based compensation
expense 104,641 421,983 388,626 642,434

Modified EBITDA $ 1,076,779 $ 988,732 $ 3,854,143 $ 809,282

CMKG.. 11/04/10 DD 10Q..
‘mktg, inc.’
Condensed Consolidated Balance Sheets
September 30, 2010 (Unaudited) and March 31, 2010


September 30, 2010 March 31, 2010

Assets
Current assets:
Cash and cash equivalents $ 3,636,216 $ 663,786
Accounts receivable, net of allowance for doubtful accounts of $306,000 at September 30, 2010 and $288,000 at March 31, 2010 13,283,380 9,043,506
Unbilled contracts in progress 1,473,163 740,540
Deferred contract costs 2,695,549 1,235,967
Prepaid expenses and other current assets 166,989 611,947
Total current assets 21,255,297 12,295,746

Property and equipment, net 1,894,486 2,115,506

Restricted cash 500,000 –
Goodwill 10,052,232 10,052,232
Intangible assets - net 1,084,627 1,245,469
Other assets 477,053 485,078
Total assets $ 35,263,695 $ 26,194,031

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 997,231 $ 2,158,687
Accrued compensation 1,368,194 431,614
Accrued job costs 2,763,229 3,190,782
Other accrued liabilities 1,699,004 2,002,427
Deferred revenue 16,483,388 8,365,407
Total current liabilities 23,311,046 16,148,917

Deferred rent 1,540,548 1,622,953
Senior secured notes payable 1,661,137 1,514,340
Warrant derivative liability 2,420,172 849,211
Put option derivative 6,153 110,940
Total liabilities 28,939,056 20,246,361

Commitments and contingencies

Redeemable Series D Convertible Participating Preferred Stock, $2,891,252 redemption and liquidation value, par value $1.00: 2,500,000 designated, 2,500,000 issued and outstanding at September 30, 2010 and March 31, 2010, respectively 1,751,924 1,503,589

Stockholders’ equity:
Class A convertible preferred stock, par value $.001; authorized 650,000 shares; none issued and outstanding — —
Class B convertible preferred stock, par value $.001; authorized 700,000 shares; none issued and outstanding — —
Preferred stock, undesignated; authorized 3,650,000 shares; none issued and outstanding — —
Common stock, par value $.001; authorized 25,000,000 shares; 8,610,288 shares issued and outstanding at September 30, 2010 and 8,613,288 shares issued and outstanding at and March 31, 2010 8,610 8,613
Additional paid-in capital 14,090,859 13,806,871
Accumulated deficit (9,499,999 ) (9,351,126 )
Treasury stock at cost, 37,160 shares at September 30, 2010 and 19,189 shares at March 31, 2010 (26,755 ) (20,277 )
Total stockholders’ equity 4,572,715 4,444,081
Total liabilities and stockholders’ equity $ 35,263,695 $ 26,194,031



See notes to unaudited condensed consolidated financial statements.


3
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‘mktg, inc.’
Condensed Consolidated Statements of Operations
Three and Six Months Ended September 30, 2010 and 2009
(Unaudited)


Three Months Ended
September 30, Six Months Ended
September 30,
2010 2009 2010 2009

Sales $ 28,556,087 $ 17,867,383 $ 57,692,875 $ 37,686,487

Operating expenses:
Reimbursable program costs and expenses 6,099,942 3,666,976 11,580,696 7,761,900
Outside production and other program expenses 13,289,303 6,718,994 28,788,656 14,264,397
Compensation expense 6,148,564 6,782,928 11,833,295 13,326,602
General and administrative expenses 1,803,282 1,775,093 3,585,701 3,340,632
Total operating expenses 27,341,091 18,943,991 55,788,348 38,693,531

Operating income (loss) 1,214,996 (1,076,608 ) 1,904,527 (1,007,044 )

Interest expense, net (176,523 ) (5,559 ) (338,891 ) (22,836 )
Fair value adjustments to compound embedded derivatives (1,652,404 ) — (1,466,174 ) —

Income (loss) before provision for income taxes (613,931 ) (1,082,167 ) 99,462 (1,029,880 )

Provision for income taxes — — — —

Net income (loss) $ (613,931 ) $ (1,082,167 ) $ 99,462 $ (1,029,880 )

Basic earnings (loss) per share $ (.07 ) $ (.14 ) $ .01 $ (.15 )
Diluted earnings (loss) per share $ (.07 ) $ (.14 ) $ .01 $ (.15 )

Weighted average number of common shares outstanding:
Basic 9,367,603 7,606,145 9,457,508 7,057,175
Diluted 9,367,603 7,606,145 17,227,061 7,057,175

CMKG.. 11/04/10 DD

MKTG INC Reports $2.3 Million Increase in Operating Income for Its Second Quarter of Fiscal Year 2011 Ended September 30, 2010 Compared to Same Period of Its Prior Fiscal Year

PR Newswire - Nov 04 at 16:09

Company Symbols: NASDAQ-OTCBB:CMKG


NEW YORK, Nov. 4, 2010 /PRNewswire-FirstCall/ -- MKTG INC (OTC Bulletin Board: CMKG), a full service marketing agency, today announced its operating results for its second quarter ended September 30, 2010.

Operating Results - Second Quarter, Fiscal 2011

For its second quarter ended September 30, 2010, Operating Revenue increased $1.7 million or 23% to $9.2 million, compared to $7.5 million for the quarter ended September 30, 2009. Compensation and general and administrative expenses, amounting to $8.0 million for the quarter, including an accrual for potential bonuses, decreased by $606,000 from the same period of the previous year. Operating income for the quarter increased $2.3 million to $1.2 million, compared to an operating loss of $1.1 million for the second quarter of the previous year. Modified EBITDA for the quarter was $1.7 million, compared to a negative $688,000 for the quarter ended September 30, 2009.

Operating Results – For The Six Months Ended September 30, 2010

For the six months ended September 30, 2010, Operating Revenue increased $1.6 million or 10% to $17.3 million, compared to $15.7 million for the six months ended September 30, 2009. Compensation and general and administrative expenses were $15.4 million for the period, a decrease of $1.2 million from the same period of the previous year. Operating income for the period increased $2.9 million to $1.9 million, compared to an operating loss of $1.0 million for the six months ended September 30, 2009. Modified EBITDA for the period was $2.8 million, compared to a negative $179,000 for the six months ended September 30, 2009.

"This marks our second consecutive quarter of positive operating income, with operating income up 76% from the previous quarter," said Jim Haughton, Senior Vice President - Controller. Mr. Haughton continued, "Our improved performance is a result of increasing Operating Revenues while holding the line on our base costs, which consist of general and administrative expenses, and compensation before bonuses. We plan on increasing our team to support fully funded additional work from our largest clients, and are currently targeting these base costs at between $7.3 and $7.5 million per quarter, before giving effect to the significant costs associated with the derivative litigation."

"We believe that our business, client relationships and both our short and long term growth opportunities are strong," said Charlie Horsey, President and Chief Executive Officer. Mr. Horsey continued, "We expect our profitable performance and momentum established during the first half of the year to continue throughout the remainder of this fiscal year."

Mr. Haughton added: "Our income statement for the current quarter includes an accounting adjustment of $1,652,000, shown below the operating income line, which causes our reported net income to be negative. This is a non-cash fair value adjustment to the derivative financial instruments generated from our December 2009 financing. The amount of this adjustment is driven by a number of factors, most importantly, by the value of our stock. As our stock price fluctuates, we will be required to book adjustments with increases in stock price reducing net income, and declines in stock price increasing net income. Consequently we think it most appropriate to focus on operating income as the basis for assessing operating performance."

Operating Revenue & Modified EBITDA

The Company believes Operating Revenue and Modified EBITDA are key performance indicators. The Company defines Operating Revenue as sales less reimbursable program costs and expenses, and outside production and other program expenses. Operating Revenue is the net amount derived from sales to customers that management believes is available to fund compensation, general and administrative expenses, and capital expenditures. The Company defines Modified EBITDA as income before interest, income taxes, depreciation and amortization plus other non-cash expenses. The Company uses Modified EBITDA as a supplemental measure to evaluate operational performance. Operating Revenue and Modified EBITDA are Non-GAAP financial measures disclosed by management to provide additional information to investors in order to provide them with alternative methods for assessing the Company's financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with Non-GAAP financial measures used by other companies. A reconciliation of Operating Revenues to sales and Modified EBITDA to operating income are provided at the end of this press release.

About MKTG INC

MKTG INC is a full service marketing agency headquartered in New York with full service offices in San Francisco, Los Angeles, Chicago and Cincinnati. The Company currently serves a variety of the world's most recognizable brands. Its services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers. For more information, please visit www.mktg.com.

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. Forward-looking statements in this press release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. 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, 2010 under "Risk Factors," and include the risk that projected business opportunities will fail to materialize or will be delayed. The Form 10-K may be obtained by visiting the Company's website or by accessing the database maintained by the Securities and Exchange Commission at http://www.sec.gov.


MKTG INC

Condensed Consolidated Statements of Operations

For The Three and Six Months Ended September 30, 2010 and 2009

(Unaudited)



Three Months Ended Six Months Ended

September 30, September 30,

2010 2009 2010 2009

Sales $ 28,556,087 $ 17,867,383 $ 57,692,875 $ 37,686,487

Operating revenue $ 9,166,842 $ 7,481,413 $ 17,323,523 $ 15,660,190

Operating income
(loss) $ 1,214,996 $ (1,076,608) $ 1,904,527 $ (1,007,044)

Income (loss) before
provision for income
taxes $ (613,931) $ (1,082,167) $ 99,462 $ (1,029,880)

Provision for income
taxes $ - $ - $ - $ -

Net income (loss) $ (613,931) $ (1,082,167) $ 99,462 $ (1,029,880)



Earnings (loss) per
share:

Basic $ (0.07) $ (0.14) $ 0.01 $ (0.15)

Diluted $ (0.07) $ (0.14) $ 0.01 $ (0.15)










MKTG INC

Condensed Consolidated Balance Sheets

September 30, 2010 and March 31, 2010



September 30,

2010 March 31,

(Unaudited) 2010

Total assets $ 35,263,695 $ 26,194,031

Total liabilities $ 28,939,056 $ 20,246,361

Preferred stock $ 1,751,924 $ 1,503,589

Total stockholders' equity $ 4,572,715 $ 4,444,081










MKTG INC

Operating Revenue Schedule

For The Three and Six Months Ended September 30, 2010 and 2009

(Unaudited)



Three Months Ended Six Months Ended

September 30, September 30,

2010 2009 2010 2009



Sales $ 28,556,087 $ 17,867,383 $ 57,692,875 $ 37,686,487

Reimbursable
program costs and
expenses (6,099,942) (3,666,976) (11,580,696) (7,761,900)

Outside
production and
other program
expenses (13,289,303) (6,718,994) (28,788,656) (14,264,397)

Operating Revenue $ 9,166,842 $ 7,481,413 $ 17,323,523 $ 15,660,190










MKTG INC

Modified EBITDA Schedule

For The Three and Six Months Ended September 30, 2010 and 2009

(Unaudited)



Three Months Ended Six Months Ended

September 30, September 30,

2010 2009 2010 2009



Operating income (loss) $ 1,214,996 $ (1,076,608) $ 1,904,527 $ (1,007,044)

Depreciation and
amortization 279,438 301,734 558,852 607,143

Income tax expense 15,000 - 30,000 -

Share based compensation
expense 197,134 86,851 283,985 220,451

Modified EBITDA $ 1,706,568 $ (688,023) $ 2,777,364 $ (179,450)

Its weird that this one doesn't trade very much. With the earnings that was just release, this shouldn't be trading under $1 IMO.

Its crazy that the float is only ~7 million for CMKG. Should be trading much higher IMO.

CMKG .70! Chart:

CMKG will go bigly on a .60 break IMO. This is still way undervalued IMO. Should be trading at $2+ IMO.

Its a bummer that this got delisted from the Nasdaq. It will be trading above $1 soon enough IMO.

sheesh... can I possibly get any more bad news this week??

I'm thinking that earnings should be out for CMKG this week but haven't confirmed this yet.

I knew CMKG would eventually go! Company was profitable last quarter. This stock is a no-brainer!

CMKG going to take off in a big way when the seller at .44 is gone! Lots of buys today.

Nice day for CMKG today. I still can't believe how undervalued this stock is!

I am with you. Sitting at a .03 P/S ratio. Going to do some DD today.

This has huge potential. Good find.

I stumbled onto it my looking for M&A candidates for APNC Access Plans.

Take a look and tell me what you think.
http://investorshub.advfn.com/boards/board.aspx?board_id=15915

CMKG...call me crazy but I just have a feeling about this one. I've got ~$25k invested in this stock. The company posted a profit of $500k on revenue of ~$24 million which was higher than the previous quarter.

CMKG .40 x .41 I still think this stock is a no-brainer.

I really like this part:

"With our base operating costs now in control and with the completion of the $5 million financing, our operations, costs and capital structure are sound," said Charlie Horsey. "Our job now is to continue to deliver great work and grow revenue with our current clients and add new clients. The uncertainty about our financial viability has been addressed and activity among new prospects we are seeing renewed activity from our current clients and increased. As we approach the end of our Fourth Quarter and keeping in mind it is historically our weakest, we anticipate being close to break even. Â We will enter our next fiscal year with stabilized revenue sources and costs under control."

'mktg, inc.' Reports Net Profit of $500,000 for Its Third Quarter Ended December 31, 2009

NEW YORK, Feb. 16 /PRNewswire-FirstCall/ -- 'mktg, inc.' (Nasdaq:CMKG - News), an alternative marketing and media communications agency, today announced its operating results for its third quarter ended December 31, 2009.

Operating Results â?? Third Quarter of Fiscal 2010

For its third quarter ended December 31, 2009, the Company reported sales of $24.1 million, compared to sales of $25.7 million for the third quarter of its prior fiscal year, a decline of $1.6 million. Â Operating Revenue for the quarter amounted to $8.1 million compared to $9.4 million for the third quarter in the previous fiscal year. Â Compensation and general and administrative expenses were $7.9 million for the quarter, a decrease of $1.4 million from the same period of the previous year. Net profit and diluted earnings per share for the quarter amounted to $503,000 and $0.06 per share, respectively, compared to net profit of $64,000 and $0.01 per share respectively for the same period of the previous year. Â Results for the third quarter ended December 31, 2009 were adversely affected by onetime costs of approximately $600,000 associated with the $5 million financing completed during the period, and a real estate broker commission. Â Net income for the third quarter of fiscal 2010 includes other income of $269,000, resulting from a non-cash adjustment to the carrying value of financial instruments issued in the December 2009 financing. Â No provision for income taxes was recorded for the third quarter of fiscal 2010 or 2009 because any such provision would be fully offset by a change in the Company's deferred tax asset valuation allowance.

As has been previously reported, management has taken substantial steps over the past several quarters to reduce expenses and align costs with current and projected revenue. Â In addition, during the third quarter ending December 31, 2009, the Company completed a $5 million financing by issuing senior secured notes, convertible preferred stock and warrants, to support a shortage in working capital. Â

"We continued to cut spending in the third quarter to reflect the current strategy and operating conditions of the business. Â Our operating costs for base compensation and selling, general and administrative expense are now at a sustainable run rate of $7.1 to $7.3 million per quarter" said Jim Haughton, Senior Vice President â?? Controller. Â "Operating revenue of $8.1 million during the third quarter of fiscal 2010 declined by almost 14% from the same period last year and reflected the continued weakness of the marketing services market. However our operating revenue in the quarter was 9% higher than in the prior quarter ended September 30, 2009, demonstrating our clients' renewed commitment to marketing spending." Â

Prospects

"With our base operating costs now in control and with the completion of the $5 million financing, our operations, costs and capital structure are sound," said Charlie Horsey. "Our job now is to continue to deliver great work and grow revenue with our current clients and add new clients. The uncertainty about our financial viability has been addressed and activity among new prospects we are seeing renewed activity from our current clients and increased. As we approach the end of our Fourth Quarter and keeping in mind it is historically our weakest, we anticipate being close to break even. Â We will enter our next fiscal year with stabilized revenue sources and costs under control."

Operating Revenues

'mktg, inc.' believes Operating Revenue is a key performance indicator. Â The Company defines Operating Revenue as sales less reimbursable program costs and expenses, and outside production and other program expenses. Â Operating Revenue is the net amount derived from sales to customers that management believes is available to fund compensation, general and administrative expenses, and capital expenditures. Â Operating Revenue is a Non-GAAP financial measure disclosed by management to provide additional information to investors in order to provide them with an alternative method for assessing the Company's financial condition and operating results. Â This measure is not in accordance with, or a substitute for, GAAP, and may be different from or inconsistent with Non-GAAP financial measures used by other companies. Â A reconciliation of Operating Revenues to sales is provided at the end of this press release.

About 'mktg, inc.'

'mktg, inc.' (Nasdaq:CMKG - News) is an alternative media and marketing services company headquartered in New York with full service offices in San Francisco, Chicago and Cincinnati. The Company currently serves a variety of the world's most recognizable brands, and its services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers. For more information, please visit www.mktg.com.