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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
/X/ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended August 31, 1995
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number: 2-91525-NY
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MARKET GUIDE INC.
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(Exact name of Registrant as specified in its charter)
New York 11-2646081
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2001 Marcus Avenue
Suite South 200
Lake Success, New York 11042-1011
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (516) 327-2400
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(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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16,697,879 Common shares, $.001 par value were issued and outstanding on
August 31, 1995.
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TABLE OF CONTENTS
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Financial Statements
Balance Sheets as of August 31, 1995 (Unaudited)
and February 28, 1995 3
Statement of Operations for the Six Months and
Three Months Ended August 31, 1995 (Unaudited)
and August 31, 1994 (Unaudited) 5
Statement of Cash Flows for the Six Months Ended
August 31, 1995 (Unaudited) and August 31, 1994
(Unaudited) 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations August 31, 1995 7
Other Information 16
Signature 17
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BALANCE SHEETS Market Guide Inc.
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<CAPTION>
August 31, 1995 February 28, 1995
Fiscal Quarter Ended (Unaudited)
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ASSETS
Current assets:
Cash $ 779,912 $ 695,135
Accounts Receivable (Net of
allowance for doubtful accounts) 643,982 558,813
Prepaid expenses and other 109,571 89,892
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Total current assets 1,533,465 1,343,840
Property, plant and equipment:
Furniture and equipment 575,563 494,434
Equipment held under capital leases 434,961 296,672
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1,010,524 791,106
Less: Accumulated depreciation and
amortization (including amortization of
$114,792 as of August 31, 1995 and
$84,002 as of February 28, 1995, on
capital leases.) 427,919 364,313
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Net property, plant and equipment 582,605 426,793
Other assets:
Computer Software and Product
Enhancements (Net of Accumulated
Amortization) 829,344 732,247
Deposits and other assets 115,888 100,217
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Total other assets 945,232 832,464
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Total assets $ 3,061,302 $ 2,603,097
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BALANCE SHEETS-continued Market Guide Inc.
<TABLE>
<CAPTION>
August 31, 1995 February 28, 1995
Fiscal Quarter Ended (Unaudited)
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
debt and capital leases including
related party debt of $95,333 as
of August 31, 1995 and $95,333 as
of February 28, 1995. $ 186,006 $ 158,025
Unearned revenues 160,771 202,866
Accounts payable and other accrued
expenses (including accrued interest
of $61,987 as of August 31, 1995
and $61,987 as of February 28, 1995) 320,087 215,998
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Total current liabilities 666,864 576,889
Non-current liabilities:
Long-term debt and capital lease
obligations, less current maturities 295,459 182,737
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Total non-current liabilities 295,459 182,737
Commitments -0- -0-
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Total liabilities 962,323 759,626
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Stockholders' equity:
Common stock - $.001 par value;
20,000,000 shares authorized,
16,697,879 shares issued and
outstanding 16,698 16,451
Capital in excess of par value 3,585,721 3,509,067
Accumulated deficit (1,503,440) (1,682,047)
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Total stockholders' equity 2,098,979 1,843,471
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Total liabilities and stockholders' equity $ 3,061,302 $ 2,603,097
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STATEMENT OF OPERATIONS Market Guide Inc.
<TABLE>
<CAPTION>
For the Six Months Ended For the Three Months Ended
August 31, August 31, August 31, August 31,
1995 1994 1995 1994
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
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Revenues:
Database vendors $ 1,700,907 $ 1,091,853 $ 878,042 $ 558,406
Market Guide products 127,192 108,082 76,487 46,939
Print products 32,822 37,218 16,051 18,259
--------------- --------------- ----------------- ----------------
Total revenues 1,860,921 1,237,153 970,580 623,604
Expenses:
Salaries, payroll taxes and
employee benefits 1,043,438 656,568 540,817 334,696
Database and product cost 267,709 211,056 135,426 105,575
Office and administrative 303,454 177,054 160,871 83,130
Advertising and promotion 42,832 27,122 17,072 13,667
--------------- --------------- ----------------- ----------------
Total expenses 1,657,433 1,071,800 854,186 537,068
--------------- --------------- ----------------- ----------------
Income from operations 203,488 165,353 116,394 86,536
Interest expenses, net 12,320 3,721 7,198 410
--------------- --------------- ----------------- ----------------
Income before Provision for
Income taxes 191,168 161,632 109,196 86,126
Provision for Income taxes 12,562 9,617 7,644 5,200
--------------- --------------- ----------------- ----------------
Net Income $ 178,606 $ 152,015 $ 101,552 $ 80,926
=============== =============== ================= ================
Earnings per share $ .01 $ .01 $ .01 $ .01
Weighted average number of
shares outstanding 16,582,412 16,047,644 16,697,879 16,298,910
Fully diluted earnings per $ .01 $ .01 $ .01 $ .01
share
Fully diluted weighted average
number of shares outstanding 17,572,747 16,866,377 17,636,682 17,115,044
=============== =============== ================= ================
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STATEMENT OF CASH FLOWS Market Guide Inc.
<TABLE>
<CAPTION>
August 31, 1995 August 31, 1994
For the Six Months Ended (Unaudited) (Unaudited)
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CASH FLOWS USED FROM OPERATING ACTIVITIES:
Net Income $ 178,606 $ 152,015
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Adjustments to reconcile net income to
net cash provided from operating activities
Depreciation and amortization 173,218 117,333
Changes in Assets and Liabilities:
(Increase)/Decrease in accounts receivable (85,169) (81,338)
(Increase)/Decrease in prepaid assets (19,679) (63,105)
(Increase)/Decrease in deposits and other assets (15,671) (43,261)
Increase/(Decrease) in accounts payable 104,089 (9,764)
Increase/(Decrease) in unearned revenues (42,095) (66,182)
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Total adjustments 114,693 (146,317)
----------------- ----------------
Net cash provided from operating activities $ 293,299 $ 5,698
CASH FLOWS USED IN INVESTING ACTIVITIES:
$ (219,418) $ (62,815)
Payment for purchase of fixed assets
Development of Computer Software and
Product Enhancements (206,708) (190,027)
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Net cash used in investing activities $ (426,126) $ (252,842)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for notes payable, long-term debt
and capital leases $ (38,829) $ (40,943)
Proceeds from capital leases 179,532 ---
Proceeds from issuance of employee stock plan 64,129 21,758
Proceeds from private placement of common stock 12,772 853,370
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Net cash provided from financing activities 217,604 834,185
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Net increase/(decrease) in cash 84,777 587,041
Cash at beginning of period 695,135 200,540
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Cash at end of period $ 779,912 $ 787,581
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Market Guide Inc.
Management's Discussion and Analysis of Financial Condition
and Results of Operation
August 31, 1995
GENERAL
This analysis of the Company's financial condition, capital resources and
operating results should be viewed in conjunction with the accompanying
financial statements.
BACKGROUND
Market Guide Inc. was incorporated in the State of New York on March 23, 1983
as "The Unlisted Market Service Corporation." On September 3, 1986 the current
corporate name was adopted.
The Company acquires, condenses and publishes accurate, timely, and objective
financial and other information on publicly traded corporations, and markets
this information to the financial and investment communities, as well as to
independent investors, in a cost effective manner.
The Market Guide Database covers over 7,000 companies trading on the New York,
American, Nasdaq and Over-the-Counter Stock Exchanges. All reports created by
Market Guide Inc. are derived from information filed by the subject company
with the Securities and Exchange Commission contained in Annual Reports to
shareholders, issued in press releases or carried in other media reports. Each
company's information is updated at least four and often more than eight times
each year, as soon as the relevant information becomes available. Pricing and
trading volume information incorporated into the database are updated weekly,
and short interest statistics are updated monthly.
Market Guide adds value, distinguishes itself from the competition, and serves
its clients through its:
- - Flexible database design which gives users important insights not available
in competitive databases, thereby enabling them to make better informed
investment decisions;
- - Inclusion of auxiliary information such as price performance, relative
price performance, summary insider and institutional ownership statistics,
and short interest statistics giving users a complete perspective on each
company;
- - Calculation of approximately 500 popular financial ratios, growth rates,
and averages computed for the user's convenience; and
- - Carefully planned, market tested display formats, including company to
industry
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comparisons, that allow users to quickly and efficiently make carefully
considered investment decisions.
The targeted markets for Market Guide's data and related products include
investment managers, investment research departments, financial planners,
investment counselors, investment bankers, banks, stockbrokers and brokerage
firms, traders, libraries, publications, corporations, law firms and individual
investors. The Company sells its information through four channels:
information vendors, its proprietary analytic software called Market Screen,
Market Guide for Windows(TM) and STOCKQUEST(TM), and a print publication.
Market Guide works in partnership with financial information service vendors.
The financial information service vendors combine data from various real-time
and historical information sources with their own analytic software and data
delivery capability. Their sales forces sell the product and they also provide
customer training and support services. Market Guide focuses on developing the
highest quality information and leveraging off the information vendor's sales
force, software, information dissemination infrastructure and customer base.
The amount of data presented, its display format, and the software's analytic
capabilities vary depending upon the way each information provider defines its
customers' needs, software capabilities, distribution technologies and
preferred pricing strategies.
The information service vendors that currently distribute the Market Guide
Database include: Automatic Data Processing; AIQ Systems, Inc.; Bridge
Information Systems Inc.; Charles Schwab and Company; Dow Jones Telerate; First
Call Corporation; Global Market Information; ILX Systems Inc.; Instinet
Analytics; Interactive Data Corporation; InvesText; Omega Research, Inc.,;
OneSource Information Systems, Inc.; P.C. Quote, Inc.; Prodigy Services
Company; Quotron Systems, Inc.; Real Time Quotes, Inc.; Securities Data
Corporation; Shark Information Services, Inc.; Telemet America, Inc.; Telescan,
Inc.; Track Data Corporation and Vickers Stock Research Corporation. Through
InvesText the Market Guide Database is also available on Datext, Dialog, Dow
Jones News Retrieval Service, Reed-Elsevier's Lexis/Nexis (formerly Mead Data
Central) and Newsnet.
OneSource Information Systems, Inc. has multiple CD-ROM based product lines
that have different software capabilities and serve different marketplaces.
The Market Guide Database is the only database that we are aware of that is
available on three OneSource product lines, CD/Corporate, CD/Notes and
CD/Investment.
On December 28, 1993 it was announced that Prodigy Services Company had reached
an agreement with the Company to incorporate selected items from the Market
Guide Database for use in Prodigy's Strategic Investor product.
In January, 1995 Prodigy introduced a completely revised and greatly enhanced
Company Reports and a new "Stock Hunter" search capability that features eight
predesigned screens
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utilizing recognized investment theories such as CANSLIM, One up on Wall
Street, Graham and Dodd, Wallflowers and others. There is also a "Personal
Search" feature enables a user to conduct a self designed screen search of
Market Guide data using six pre-selected criteria. All these Prodigy products
are created from Market Guide information and incorporate earnings estimates
from Zack's Investment Services. The Zacks information is first sent to Market
Guide, integrated with our own information and sent to Prodigy as an integrated
data feed. Company Reports, Stock Hunter and Personal Search may be accessed
by any Prodigy subscriber for a modest per access fee, or are available to
Strategic Investor users as part of their monthly subscription.
In August, 1995 the Company announced an agreement with the American
Association of Individual Investors (AAII) whereby AAII will incorporate Market
Guide's information in their existing screening software known as Stock
Investor. AAII is an educational not for profit corporation with approximately
110,000 members, a small percentage of whom subscribe to Stock Investor.
Market Guide's information will first appear with Stock Investor's regular
quarterly update in November.
Market Guide derives significant revenue from its reference service available
on the quote terminals of vendors such as Automatic Data Processing; Bridge
Information Systems; ILX Systems, Inc.; P.C. Quote, Inc.; Quotron Systems Inc.;
Shark Information Services, Inc.; Telemet America, Inc. and Track Data
Corporation. In January, 1994 this service, called the Market Guide Database
for Brokers, Traders and Portfolio Managers, was expanded from six screenfuls
to ten screenfuls of information. Among the changes and new information are:
- - Every ratio is calculated off the latest quarterly or trailing twelve
months value as appropriate;
- - Inclusion of a company to industry to market comparison that details the
company's performance on popular measures of profitability, growth,
financial strength and valuation;
- - Summarized quarterly income statements, balance sheets and statements of
cash flows;
- - Price performance and relative price performance statistics; and
- - Current and historical short interest levels.
Market Guide has developed an analytic software package, Market Screen, that
allows users to search the database, develop user defined reports and download
information to popular spreadsheet software packages. The software is not
patented or trademarked, but a copyright is claimed by the Company. Market
Screen is delivered on a series of floppy disks that users copy onto their own
computer hard disks. Updates are sent by overnight delivery to subscribers on
a weekly basis. Over the past few years, Market Screen has been enhanced to
include the incorporation of Institutional Ownership and Insider Trading data;
the creation of user-defined Report Writer software; the collection of ADRs and
other foreign companies trading in the U.S.; and the inclusion of earnings
announcements as they are reported. Market Guide also offers access to the
database and the Market Screen software via telephone/modem
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connections under the name of "Market Screen Online." The active selling of
Market Screen has been subordinated to the development of more extensive vendor
relationships, as management believes that this will result in greater revenue
growth at a lower cost to the Company.
The Company is nearing completion of a new product named Market Guide for
Windows(TM). Market Guide for Windows(TM) will be distributed via CD/ROM to
the institutional investor market. When Market Guide for Windows(TM) is
completed, Market Screen users will be converted over to using Market Guide for
Windows(TM), and Market Screen will be discontinued. The same software with a
smaller information set will be sold to individual investors under the name
STOCKQUEST(TM), and delivered to them electronically. STOCKQUEST(TM) is
scheduled to be introduced in the third fiscal quarter of this year.
A quarterly print product called The Market Guide - Select Over the Counter
Stock Edition is a single volume of 800 one-page reports on fast growing,
profitable over-the-counter companies. The book also has a detailed company
index listing 15 key statistics on each company in a tabular format. This
index is very useful to investors searching for attractive investment
opportunities.
Market Guide attempts to provide continuity of coverage so that subscribers to
the book can keep following companies in which they have an interest. However,
from time-to-time the companies covered do change. The most common reasons for
deletion of coverage are:
- - The company has been acquired in a merger or a leveraged buyout;
- - The company has not filed a financial statement with the Securities and
Exchange Commission for two or more reporting periods;
- - The company has exhibited significant deterioration in its financial
condition;
- - The company has been deleted from the National Association of Security
Dealers Automatic Quotation System (Nasdaq) and has fewer than three Market
Makers;
- - The company now trades on the New York or American Stock Exchange, and no
longer qualifies for the OTC edition.
Companies dropped from the book are replaced by companies which are selected by
using proprietary Market Guide selection criteria. The companies in the book
have regularly outperformed the Nasdaq composite.
The Company continuously expands, enhances and improves the Market Guide
Database based on customer suggestions and employee feedback. In 1988 the
Company added the New York and American Stock Exchange companies to its then
current universe of Nasdaq and "pink sheet" companies.
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In 1990 Market Guide decided to expand the database to include complete
detailed quarterly financial statements. The Company engaged in a series of
dialogues with current or potential vendors and customers to determine the
market potential, to identify the Company's perceived strengths and weaknesses,
and to research market needs and the appropriateness of the Company's
methodologies and objectives. The results of this analysis were the commitment
of resources to more than double the amount of information collected and
maintained on each subject company. In fiscal years 1990, 1991 and 1992 the
Company added the Annual Statement of Cash Flows and complete Quarterly Income
Statements, Balance Sheets and Statements of Cash Flows on all the companies in
the database. This has allowed Market Guide to serve new markets and to bid on
services for which Market Guide did not previously qualify.
In 1993 the Company entered a redistribution agreement with Zack's Investment
Research. Under the terms of this agreement, Market Guide may, after
consulting Zacks on a case-by-case basis, redistribute Zacks' Earnings Estimate
information to selected vendors.
In late 1993 the Company began to track short interest information published
monthly by the exchanges.
In fiscal 1994 the Company added 1,000 new companies. After adjusting for the
shrinkage of 400 companies due to acquisitions, buyouts, mergers or business
failures, this resulted in a net increase of 600 companies.
In early 1994 the Company began subscribing to and processing the Securities
and Exchange Commission's (SEC's) Electronic Data Gathering Analysis and
Reporting (EDGAR) service. This has given our analysts access to source
documents (10-Ks, 10-Qs, etc.) ten days to two weeks earlier than in previous
years. This has resulted in record levels of timeliness measures for the
Market Guide Database.
In the fall of 1994 Market Guide introduced completely new industry and sector
classifications that reflect the current economy and are being incorporated
into all of Market Guide's products.
These new industry and sector classifications will help investors:
- - Identify which industry and sectors are outperforming the market or have
fallen from favor;
- - Compare companies to a well defined peer group;
- - Properly construct portfolios to ensure adequate diversification; and
- - Make well reasoned asset allocation decisions.
In October, 1994 the Company relocated to new headquarters in Lake Success, New
York. Lake Success is on the Queens (New York City) - Nassau County (Long
Island) border, and is closer to New York City than our previous location. The
new facility, at approximately 13,500
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square feet, is three times larger than our former quarters, and is equipped
with state of the art network and digital telephone technology to support
current and future needs in the evolving "information super highway" and
"multi-media" environments. Its proximity to New York City brings the Company
closer to one of its largest markets and also opens up a much larger labor pool
from which to draw the talent needed to support company growth.
The new address, phone and facsimile numbers are:
Market Guide Inc.
2001 Marcus Avenue
Suite South 200
Lake Success, New York 11042-1011
Phone (516) 327-2400
Fax (516) 327-2425
In September, 1995 the Company announced that a one-for-four reverse stock
split was approved by shareholders at its August 31, 1995 annual meeting. The
reverse split will become effective October 16, 1995, and will allow the
Company to meet one of the major qualification criteria for inclusion on the
Nasdaq "Small Cap" market. When the one-for-four reverse stock split is
implemented, the Company's issued and outstanding shares will be reduced from
16,697,879 to 4,174,470. Fully diluted shares outstanding will decrease from
17,636,682 to 4,409,171. The number of authorized shares will remain at
20,000,000.
At the same annual meeting, shareholders also approved an employee stock
purchase plan, a key employee incentive plan and an outside directors'
incentive plan. These plans are currently being put into effect.
LIQUIDITY AND CAPITAL RESOURCES
The Company's financial condition achieved a sixth consecutive year of steady
improvement. This has been achieved by carefully controlling expenses,
investing in product development and generating increased revenues.
As of August 31, 1995 the Company had $779,912 in cash. Its working capital
increased from $766,951 as of February 28, 1995 to $866,601. The major factors
contributing to the improvement were the increased sales leading to increased
accounts receivables, increased prepaid expenses and lower unearned revenues.
Stockholder's equity continues its steady improvement from $1,843,471 on
February 28, 1995
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to $2,098,979. Equity continues to improve due mainly to retained earnings and
the final installment of the employee stock bonus awards.
In June, 1995 the Company entered into a five year lease with Guardian Leasing
Corporation for $179,532 of which $176,394 is the value of the equipment
purchased, and $41,243 represents interest. The lease covers the acquisition
of office furniture and computer equipment for networks.
The Company currently has four leases outstanding, and pays a total of
$8,513.32 per month to service these obligations.
Other than capital leases for computers, business machinery, business premises
and furnishings, the Company's debt consists of two notes owed to the Company's
Chairman. One demand note is for the principal amount of $62,000 and one
demand note is for the principal amount of $33,333. There is a total of
$61,987 in accrued interest on these notes. The notes and accrued interest are
at a 12% rate of interest. No notes are convertible to common stock.
In March, 1994 the Company issued 2,275,719 new shares of restricted Common
Stock at a price of $0.375 per share. The purchasers of the stock consist of a
small group of sophisticated private investors who approached the Company and
indicated a desire to make the investment. The placement was managed entirely
by the Company with all of the $853,370 in proceeds going to the Company. The
proceeds of the placement are being used to fund the growth of the Company, to
defray some of the costs incurred in the move of the Company's headquarters and
for general corporate purposes.
In fiscal year 1996 management anticipates capital spending of $500,000 for
database enhancements, software development and the development of a presence
on the Internet.
The Company's traditional marketplaces, including professionals involved in
brokerage, trading and money management has been steadily increasing. In 1993,
the Company brought its professional quality information to individual
investors through an agreement for electronic distribution with Telescan, Inc.
The Telescan relationship has been expanded several times to bring more value,
data and utility to Telescan subscribers. Our relationship with Telescan also
led to the availability of Market Guide reports for individuals to access
through Charles Schwab and Company's Street Smart product. As a direct result
of the most recent broadening of this agreement, Market Guide and Telescan have
agreed to work together more closely and to integrate Market Guide information
as part of the standard Telescan service.
The advent of Market Guide's availability on Prodigy makes it possible for any
of the Prodigy service's two million subscribers to obtain reports or conduct
basic analytic stock searches using Market Guide data. The many thousands of
Strategic Investor subscribers on the Prodigy Network have been generally
positive and supportive of the added data and broadened coverage
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that Market Guide's Company Reports provide to them.
Management expects to be able to meet all anticipated, ongoing operating cash
requirements from operating cash flows because:
- - Revenues from existing vendors continue to grow;
- - New vendors including Prodigy, have recently introduced the Market Guide
service with great acceptance which should generate significant revenues;
- - The rate of growth of our expenses will slow after the third fiscal quarter
of this year; and
- - There will be new Market Guide products introduced in the third and fourth
fiscal quarters of this year.
RESULTS OF OPERATIONS
Total revenues for the fiscal quarter and six months ending August 31, 1995
were $970,580 and $1,860,921, respectively. These represent 55.6% and 50.4%
increases over the same periods in the previous year. Net income for the
fiscal quarter and six months ended August 31, 1995 were $101,552 and $178,606,
respectively. These represent 25.5% and 17.5% increases over the same periods
in the previous year.
Revenues
Database vendor revenues for the fiscal quarter and six months ending August
31, 1995 were $878,042 and $1,700,907. These represent 57.2% and 55.8%
increases over the same periods in fiscal 1994. The increase is mainly from
increased sales of information by the Company's vendors, as well as the
addition of new vendors, the most significant of which is Prodigy. The Company
now has a total of 23 vendors selling a variety of the Company's database
offerings. The Company also made a few initial sales of its new Market Guide
for Windows(TM).
Revenues of Market Guide products for the fiscal quarter and six months ending
August 31, 1995 were $76,487 and $127,192, respectively. These represent 62.9%
and 17.7% increases over the same periods in fiscal 1994. Market Guide
products include Market Screen, the new Market Guide for Windows(TM) CD/Rom
based product targeted at institutional investors, and the direct sales of
Market Guide products delivered through a real time quote and analytics vendor.
These increased revenues reflect both some initial Market Guide for Windows(TM)
sales and increased direct sales of products delivered through the quote
vendor.
Print product revenues from The Market Guide - Select OTC Stock Edition
declined slightly to $16,051 from $18,259 and to $32,822 from $37,218 for the
three and six months ending August 31, 1995, respectively. This decline is
attributed to decreased public library purchases due to reduced budgets.
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Cash Flows Used in Operating Activities for the six months ending August 31,
1995 totalled $293,299 versus $5,698 in the quarter ending August 31, 1994,
primarily due to higher net income and depreciation expenses and an increase in
accounts payable.
Cash Flows Used in Investing Activities increased to $426,126 in the quarter
ending August 31, 1995, compared to $252,842. The Company continues to invest
in product enhancements that will result in added value to our users and the
strengthening of our competitive position, and additional equipment to support
new products and increase the efficiency of our data collection staff.
Cash Flows from Financing Activities generated $217,604 mainly from the
issuance of an employee stock bonus valued at $64,129 and proceeds from capital
leases of $179,532. The Company paid off debt and capitalized lease
obligations of $38,829 compared to payments of $40,943 in the same quarter of
1994.
Expenses
Total expenses for the quarter ending August 31, 1995 increased to $854,186
from $537,068 in the same quarter of 1994, and to $1,657,433 from $1,071,800
for the six month periods ending August 31, 1995.
Significant changes are noted in the following areas of the Company's Statement
of Operation and Accumulated Deficit.
Salaries, payroll taxes and employee benefits for the fiscal quarter and six
months ending August 31, 1995 increased by $206,121 and $386,870, respectively.
The Company hired sales, marketing, production and programming people and grew
from 32 employees last year to 53 at August 31, 1995. There were 14 employees
in 1989 when current management assumed control and operation of the Company.
Database and product costs for the fiscal quarter and six months ending August
31, 1995 increased $29,851 and $56,653, respectively. The increase reflects
costs associated with printing out a greater number of financial documents from
electronic sources of information, in particular the EDGAR filings, and greater
amortization expense.
Office and administrative expenses for the fiscal quarter and six months ending
August 31, 1995 increased $77,741 and $126,400, respectively. Included in
these increases are the substantial increase in rent expense under the new
lease, higher depreciation, phone and other expenses.
Advertising and promotion expense for the fiscal quarter and six months ending
August 31, 1995 increased by $3,405 and $15,710, respectively. This modest
increase reflects greater trade show participation, marketing and sales
programs.
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OTHER INFORMATION
<TABLE>
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Item 1 Legal Proceeding None
Item 2 Changes in Securities None
Item 3 Defaults Upon Senior Securities None
Item 4 Submission of Matters to Vote of Security Holders None
Item 5 Exhibits and Reports on Form 8-K
Exhibits
(a) (1) Certificate of Incorporation and Amendments thereto*
(2) By-Laws*
</TABLE>
16
<PAGE> 17
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MARKET GUIDE INC.
(Registrant)
October 11, 1995 /s/ JOHN D. CASE
- ----------------------------- -------------------------
Date JOHN D. CASE
Chairman
17
<PAGE> 18
EXHIBIT INDEX
Exhibit No. Description Page No.
- --------- ----------- --------
EX-27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Statement of
Financial Condition at 08/31/95 (unaudited) and Statement of Income for six
months ended 08/31/95 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-1995
<PERIOD-START> MAR-01-1995
<PERIOD-END> AUG-31-1995
<CASH> 779,912
<SECURITIES> 0
<RECEIVABLES> 643,982
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,533,465
<PP&E> 1,010,524
<DEPRECIATION> 434,961
<TOTAL-ASSETS> 3,061,302
<CURRENT-LIABILITIES> 666,864
<BONDS> 295,459
<COMMON> 16,698
0
0
<OTHER-SE> 2,082,281
<TOTAL-LIABILITY-AND-EQUITY> 3,061,302
<SALES> 1,860,921
<TOTAL-REVENUES> 1,860,921
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,657,433
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,320
<INCOME-PRETAX> 191,168
<INCOME-TAX> 12,562
<INCOME-CONTINUING> 178,606
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 178,606
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
