Small Business Development Group, Inc. (OTC: SBDG)
3rd Quarter Results
November 4, 2013
We are pleased to announce that we have completed the 3rd Quarter financial review, which reflects the consolidation of our first acquisition.
Management Discussion
As we have announced previously, SBDG?s business strategy is to demonstrate how to revitalize a public company through the proper restructuring of the balance sheet and capital structure, and by infusing a company with fundamentals, followed by acquisitions to grow the portfolio. SBDG took over a failing company that, by July, 2013 had issued billions of shares but showed no revenue with millions of dollars in debt. Following the SBDG-led restructuring, the current entity shows $12,888,875 in sales and a $7,438,640 in total equity.
Production Partners Chemical Company, Inc. (PPC)
The first nine months is $12,888,875 of which $5,323,425 was in the third quarter, an increase of 13.8% over the second quarter. Revenue for the third quarter of 2013 is 19.5% above the total revenue for all of 2012. The increase in sales is due to the major suppliers of raw materials reassigning all small accounts to PPC. Expenses for the third quarter were $570,044, down 2.2 %, due to several cost-saving measures. The cost of goods was $4,612,311, up 1% over the prior quarter, due primarily to lower margins on reassigned accounts by the raw material suppliers. Despite the lower margins, third quarter profits were up 10.1% over the prior quarter. Profits after tax, year to date, are $145,493 or 1.1%.
Small Business Development Group, Inc.
SBDG has had no sales for 2012 or 2013. Since the reorganization in July 2013, the main focus for management has been to clean up the balance sheet prior to receiving growth capital and acquisitions. During the third quarter, the company concluded the divestiture of Tiger Team Technologies and the associated debt to Paul Hogan. This resulted in the total assets decreasing from $13,608,913 in June 2013 to $6,055,000 the end of the third quarter. Correspondingly, the total liabilities decreased by $13,895,551 at the end of the third quarter. The total equity for SBDG changed from ($298,491) the end of the second quarter to $6,043,147 the end of the third quarter.
In summary, the company now has a combined income statement and balance sheet that is positioned for growth. Combined revenue for the nine months ending September 30, 2013 is $12,888,875 as compared to no revenue for the same period in 2012. The total combined liabilities for year ending December 31, 2012 was $14,127,204; at period ending September 30, 2013 it is $2,763,171, which is a reduction of $11,364,033. Total equity for year ending December 31, 2012 was ($516,232) and at period ending September 30, 2013 is $7,438,640. The company now has $10,201,811 of performing assets.
About Small Business Development Group, Inc.
The company is a holding company acquiring companies for its own portfolio, and is a strategic business solutions firm providing services to companies requiring cutting-edge financial advice in the area of corporate growth and exit strategies.
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Forward-Looking Statements:
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Small Business Development Group, Inc. and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions the occurrence of unanticipated events or changes to future operating results.
SOURCE: Small Business Development Group, Inc.
Investor Relations
207-209-2013 Ext. 3