Saturday, January 22, 2005
Warning Files Third Quarter Results Monday December 13, 8:07 am ET
Source: Warning Management Services, Inc.
Warning Files Third Quarter ResultsMonday December 13, 8:07 am ET
497% Increase in Sales, 256% Increase in Gross Profit
LOS ANGELES, Dec. 13 /PRNewswire-FirstCall/ -- Warning Management Services, Inc. (OTC Bulletin Board: WNMIE - News) announces today that it has filed its third quarter report for the quarter ending September 30, 2004 on form 10Q.
Warning reported consolidated revenues for the three month period ended September 30, 2004 of $1,270,274 as compared to $212,869 for the same period in 2003, or an increase of $1,057,405 or 497%. The increase is attributed to $515,969 in revenue from the acquisition of the staffing company, Employment Systems Inc. ("ESI"); these revenues represent 21 days of the quarter. $206,515 of the increase is attributed to a re-class of talent payment from cost of sales to an offset of revenues with a further increase of $334,921 in modeling revenue.
The $334,921 increase in Modeling revenues comes from our newly created photography division which contributed $252,000 in photography sales from the addition of photographers to service our clients base and $80,000 in print business which is a result of increased advertisement spending this year versus last. "We are excited that our new ventures both with our photographers and Star Studded Model line up is now starting to produce the anticipated revenues," said Steve Chamberlin, Warning's COO.
Consolidated gross profit for the three-month period ended September 30, 2004 was $292,427 as compared to $(187,210) for the same three month period in 2003, or an increase of $479,637 or 256%. This increase in consolidated gross profit was generated from the additional gross margin of $76,565 from ESI and $403,072 increase in modeling gross margin.
The $403,072 increase in modeling gross margin consists of $40,826 in the new photography division, $10,467 in talent commissions and $351,779 in print margins.
Consolidated Operating expenses for the three-month period ending September 30, 2004 were $530,289 as compared to $328,743 for the same period in 2003, or an increase of $201,546 or 61%. The increase in consolidated operating expenses consists of $64,761 in operating expenses from the ESI subsidiary and an increase of $136,785 in modeling operating expenses.
ESI operating expenses for the three month period (21 days) consisted of $7,294 in professional fees, $24,984 in office supplies and equipment rentals, $3,544 in insurance expenses and $28,939 in depreciation. The focus of WNMI is now two fold:
1) Model Management (WAAM)
Which develops and supplies both male and female models, for a
variety of assignments, including, but not limited to; fashion
editorials, product catalogues, personal appearances, newspapers,
advertisements, posters, websites, billboards, bus sides, look books
and many other media outlets. The company also provides models and
actors for all forms of Television and Film work as well as
industrial videos. Warning Photograph represents some of the
world's top photographers. They shoot assignments for magazines and
advertising as well as movie posters, album covers and Billboards.
2) Temporary Staffing (ESI)
A full service Temporary Staffing and PEO business mainly in
California which covers municipalities, government offices and
certain private industries for both temporary staffing and PEO
clients, ESI looks to further expand its temporary staffing
"We apologize again to our shareholders for the late filing of this 10QSB and trust with this filing we can now move forward leveraging the foundation that we have now established," said Brian Bonar, Warning's Chairman and CEO.
About Warning Management Services, Inc.
Warning Management Services, Inc. (WNMI) (OTC Bulletin Board: WNMIE - News) was founded in 1998. Headquartered in Los Angeles, California, with its subsidiary Warning: Model Management LLC (WAAM) and is a full-service model and talent agency and now has added the new subsidiary Employment Systems, Inc. (ESI), a full service temporary staffing and PEO business mainly in California. Brian Bonar is the Chairman of Warning Management Services Inc. (OTC Bulletin Board: WNMIE - News) and is also Chairman of two other Publicly traded companies, Dalrada Financial Corporation (OTC Bulletin Board: DRDF - News) located in San Diego, which provides a variety of professional services related to Human Resources to businesses, and Quik Pix, Inc (Pink Sheets: QPIX - News), a leading visual marketing support firm located in Buena Park, California.
Statements in this press release that are not historical facts are forward-looking statements, including statements regarding future revenues and sales projections, plans for future financing, the ability to meet operational milestones, marketing arrangements and plans, and shipments to and regulatory approvals in international markets. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing that will allow us to continue our current and future operations and whether demand for our products and services in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact the Company's success are more fully disclosed in the Company's most recent public filings with the U.S. Securities and Exchange Commission ("SEC"), including its annual report on Form 10-K for the year ended Dec. 31, 2003, and its subsequent filings with the SEC. Contact:
Brian Bonar, Chief Executive Officer
Warning Management Services, Inc.
9440 Santa Monica Blvd., Suite 400, Beverly Hills, CA 90210
Source: Warning Management Services, Inc
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