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Modern Technology Corp Announces Positive 12 Month Results and Issues Guidance Thursday November 10, 4:00 pm ET
OXFORD, MS--(MARKET WIRE)--Nov 10, 2005 -- Modern Technology Corp (OTC BB:MOTGE.OB - News) a diversified technology development and acquisition company announced today year-end June 20, 2005 pro forma revenues of $12,242,487. (Form 10K-SB, Financial Statements, Note 20)
The company reports $6,861,170 in Assets and positive Stockholder Equity. The company's expenses have been large due in part to interest expense and the extraordinary initial costs associated with acquisitions. The company's current growth pattern anticipates positive Earnings-Per-Share within the coming year.
We had 6-month revenues for the year ended June 30, 2005 of $3,078,145. Because of SEC accounting rules, these six-month revenues include only the revenues from the actual date of acquisition of Sound City and stockholders are reminded the majority of Sound City's revenues will be generated in the latter part of 2005 during the busiest sales season. With the opening of this subsidiary's new location, we expect revenue to be in line with expectations.
Anthony Welch, Modern Technology Corp's Chairman, said, "As you can see, our growth is rapid and we gain momentum with each passing day. With our current candidates for new acquisitions and internal growth from operations, we feel confident in our ability to deliver outstanding results for 2005. As we acquire and grow, we consistently improve margins through eliminating cost redundancies and therefore increase earnings with each passing quarter. We are rapidly approaching our long-term goals of a true economy-of-scale operation."
The company previously announced its acquisition of InMarketing Group, Inc. The Closing of this acquisition is in its final stages and is expected to be announced formally in the very near future with full disclosure filings for financial results. This acquisition adds an estimated $11 Million in 2005 profitable revenues and a projected additional $13 Million in profitable revenues for 2006. InMarketing Group generated $8.7 Million in profitable revenues in 2004 and generated a profitable $5.8 Million in the first half of 2005.
The company exceeded its 2004 projections for year-end assets of $4,000,000 and revenues of $10,000,000.
The company's current revenue projections for 2005 year-end are expected to be in excess of $20,000,000. This projection does not include other acquisitions under consideration. It must be noted that we have transactions under consideration may propel the company beyond $50,000,000 for 2005.
Continuing Growth:
In June 2005 the company announced a strategic alliance agreement with UTEK Corporation. This alliance provides the company with nascent, market-ready technologies. The company intends to commercialize them through its existing sales and distribution channels. The company has market-ready technology already under consideration for immediate acquisition. The company projects significant revenues from these technologies.
The company's subsidiary Sound City (www.soundcity.com), is doubling its retail footprint and continues to add product lines. InMarketing Group is expected to continue its strong year-on-year growth and profitability. The company expects ongoing synergy-based cost reductions as well as increased revenue growth resulting from the synergies between the subsidiaries.
Planned National Exchange Listing:
The company intends to list on a national exchange. The company anticipates listing its stock on a national exchange concurrently with meeting the qualification criteria or through a strategic acquisition of a qualifying company. The company expects to meet this goal within the next 12 months, or sooner.
Stockholder Dividends:
In 2004 the company declared and paid a $383,697 cash dividend. In October of 2001, the company declared and paid a stock dividend of 403,000 shares and on June 30, 1999, the company distributed a stock dividend of 403,000 shares as part of a spin-off transaction.
The company intends to pay dividends as appropriate and as part of its anticipated subsidiary spin-off strategy. As the company's subsidiaries mature and grow, a public spin-off transaction will be considered. Each stockholder in MOTG would receive stock in the new public spin-off company in addition to stock they already own in MOTG. The company's long-term plan is for stockholders to realize strong capital appreciation from their MOTG stock as well as the stock paid to them as part of the spin-off transactions.
This guidance is the company's best, good faith estimate based on current conditions and numerous assumptions about the company's industry, its access to financing, the competitive and regulatory landscape and its ability to successfully consummate the acquisitions under consideration.
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp is a diversified technology development and acquisition company, building revenues by strategic acquisition and commercialization of nascent commercial technology and by the acquisition of synergistic operating companies. MOTG commercializes technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to consistently build shareholder value through accretive acquisitions of emerging technology or acquiring operating companies capable of benefiting from technology infrastructure enhancements or new product lines. For more information, visit: http://www.moderntechnologycorp.com.
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact:
Company Contact: Megan Peterson 1-662.236.5928
-------------------- All men's gains are the fruit of venturing.
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Here's some "HOLY CRAP!" highlights for your viewing puh-leasyuhhh:
"The company exceeded its 2004 projections for year-end assets of $4,000,000 and revenues of $10,000,000."
"It must be noted that we have transactions under consideration may propel the company beyond $50,000,000 for 2005."
"The company intends to list on a national exchange. The company anticipates listing its stock on a national exchange concurrently with meeting the qualification criteria or through a strategic acquisition of a qualifying company. The company expects to meet this goal within the next 12 months, or sooner."
"The company intends to pay dividends as appropriate and as part of its anticipated subsidiary spin-off strategy. As the company's subsidiaries mature and grow, a public spin-off transaction will be considered. Each stockholder in MOTG would receive stock in the new public spin-off company in addition to stock they already own in MOTG."
The point is guys... we've got some nice runs and some nasty manipulations by the MMs coming up. Hold your course. Resist the temptation of cashing out with some meager profits when it's obvious that this company has got it together... so this is a long term investment. I know that's not a normal thing to say with pennies, but I believe this may be our next mover to Nasdaq.
Woo hoooo!!!!!
-------------------- Life is like a roll of toilet paper. The closer it gets to the end, the faster it goes.
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Ottoman posted that we lost 1million dollars and asks if that is good...Maybe the 10-k is not so good..The 10-k was great. Read why there was a 1mil dollar loss. It was the cost of the aquisitions. The was you put it was that they have rev's of x but the expenses exceed x number of dollars. This is not true. From the 10-k During the fiscal year ended June 30, 2005, the Registrant had generated a net loss of $1,123,816 compared to a net loss of $118,296 for the fiscal year ending June 30, 2004. The increase in net loss is attributable to the expenses associated with acquisitions and related costs. So the loss was due to aquisition costs not ongoing operations big difference.
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