MSGI Reports Fiscal 1Q Loss
MSGI reported a first quarter loss of $497,000, or 6 cents per share, on revenue of $17.2 million, which includes charges totaling $287,000, or 2 cents per share. MSGI's shortfall was $96,700, or a penny per share, on revenue of $7.3 million, in the same quarter a year ago.
Metro Fulfillment, an operating subsidiary MSGI established in May, had a "material" adverse effect on MSGI's earnings before interest, taxes, depreciation and amortization, which would have been $554,200, the company said. MSGI reported EBITDA of $16,300, plunging from year-ago EBITDA of $284,192.
Metro Fulfillment suffered a loss of $587,100 in the quarter. Adjusted net income for MSGI's first quarter excluding the impact from the Metro Fulfillment would have been $90,100, the company said.
MSGI is focusing its attention on Metro Fulfillment, saying it already has restructured operations within the subsidiary and is considering strategic alternatives.
The company added that all four of its core businesses made a profit in the quarter, with three of them -- Metro Direct, SG&A and Pegasus Internet -- experiencing improved EBITDA margins.