First Six Months 2018 Financial Results Summary
Revenue totaled $7,485,485 in the six months ended June 30, 2018. Gross margin was 47.6%.
Operating Expenses in the first six months of 2018 totaled $3,348,964 Operating Profit was $216,329.
Management Commentary:
“Surge’s results for the second quarter of 2018 continue to demonstrate the realization of Surge’s strategy to expand our various business sectors while leveraging our existing infrastructure, including human capital, to offer additional products and services while keeping controls on operational costs low. This allows us the luxury to offer a better product to the customer while aggressively compensating our merchants and sales people – the Surge competitive advantage and my formula for hyper-growth and profitability, “said Brian Cox, CEO of Surge Holdings.
Surge Holdings $SURG a publicly traded company that utilizes emerging technology to improve the quality of life for the Millions of people that are unbanked, under-banked, and overlooked. These people are budget conscious and don’t want to be locked into wireless phone contracts. The recent Oklahoma Grocer’s Association endorsement for Surge Holdings was for 2,000 stores in Oklahoma alone! There are over 154,000 convenience stores in the United States.
By utilizing their proprietary Surge Blockchain Portal to create a distribution railway into these stores. SURG will make money so many ways. Wireless services, wireless phone sales, payment services, top off payments to other carriers, municipal government payments, pre-paid debit cards branded with the big three, MasterCard/Visa/Discover, thus opening the door to distributing consumables such as energy drinks, CBD oils, snacks, etc. SURG rings the cash register so many different ways!
Surge Holdings details three strategic product launches to rapidly drive revenue and earnings momentum:
- Rollout the SurgePays Reloadable Debit Card in a new Surge Fintech subsidiary.
- Introduce the first free wireless service independent of a government subsidy.
- Launch the Surge Money Order product.
Surge Holdings CEO, Brian Cox, said, “Upon full launch of these three products, I believe we will have successfully achieved a product suite that not only monopolizes the Fintech and Telecom market at the convenient store level, but this lockdown and exclusivity could allow Surge to realize a minimum of $1,500 monthly sales revenue per merchant location.”
The last research report update for SURG stated: "The key metric for investors: An estimated $1.5M in monthly revenue per 1000 stores, which should be continually replicated with greater sales penetration over time. This equates to more then tens times current revenue or $180 million by just opening 10,000 stores! SURG just announced delivery of the first 20,000 phones a $10 per month minimum service plan. This alone will generate another $2.0 million a month in revenue minimum.
Operational Initiatives:
- Quadruple our sales force of ISO/Salespeople to exponentially ramp up merchant locations– points of Surge product distribution.
- Opening SurgePhone Wireless Corporate and Franchise stores.
- Testing energy drink and other consumables distribution through our portal in Memphis and OKC.
- Lock down operational cost controls by acquiring a stake in the nearshore BPO, Centercom Global.
- Introduce significant celebrity brand ambassadors.
- Overhaul and update corporate website including a shareholder portal.
“While certain growth capital expenses are expected, our economies of scale and experienced team offsets many of the normal costs incurred when launching products or growing a one product company,” said Cox, “we will move fast but strategic in our conquests. Over the past year we have taken several actions to enhance our foundation to accelerate growth and create long-term shareholder. Surge Holdings has been built for speed and to scale rapidly so that we can move swiftly toward our 2019 EOY target of 15,000 locations.”
CEO Brian Cox has led multi-location organizations with 1,400 people while achieving over $100 million in revenue in private companies. Now in the public sector he is growing the company organically through acquisition and growth. Transitioning to wireless and FinTech (financial technology), His model for business building over the last 18 years has been based on the rock of reoccurring revenue from life enhancing technology products and Lifting people up. He is also doing that now as well by building an OTCQB up to the big board so that shareholders who believe in the company now can take the profit ride up with the company! When was the last time you seen a company where revenue led price by this much? SURG is it.
Make sure to follow CEO Brian Cox on Twitter for thoughts, insight, and progress of not only the short-term goals prioritized in this update, but relevant and material news for SURGE: @kbriancox.
For the latest updates on the happenings at Surge Holdings, please visit surgeholdings.com and sign up for our instant news alerts.
ABOUT SURGE HOLDINGS, INC.
Surge Holdings a publicly traded company that wholly owns subsidiaries that utilize emerging technology to improve the quality of life for the unbanked, under-banked, and the overlooked. Current holdings include Telecommunications, Blockchain Fintech Software as a Service (SaaS), Cryptocurrency Asset Mining and Social Media Digital Marketing.
Surge Holdings a publicly traded company that wholly owns subsidiaries that utilize emerging technology to improve the quality of life for the unbanked, under-banked, and the overlooked. Current holdings include Telecommunications, Blockchain Fintech Software as a Service (SaaS), Cryptocurrency Asset Mining and Social Media Digital Marketing.
FORWARD-LOOKING STATEMENTS
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.
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