Maybe its the 1.88 billion shares outstanding, the "pinksheet" listing or the sub-penny price tag on the stock that is keeping investors at bay, but shares of Alliance Creative Group Inc. (OTCPK:ACGX) aren't getting any love on Thursday following what management surely had to believe was a positive report on the fourth quarter and full-year 2017.
The Chicago-based full-service product development agency posted improving sales and even swung to a profit while shaving its convertible debt load.
Through its PeopleVine, Rapid Freight and Primary Trucking brands, revenue for Q4 came in at $4.5 million, up 34.1% from $3.36 million in the year prior quarter. For all of 2017, revenue climbed to a record $18.32 million, an improvement of 62.5% from $11.27 million in 2016.
Gross profits for the fourth quarter were 853,574, down from $1.09 million a year earlier. For the full year, though, gross profits rose to $3.68 million, also a record for the company, compared to $2.94 million in 2016.
Net income for the latest quarter was $136,594, reversing from a net loss of $200,301 in Q4 2016. The tide also changed for the full year, with Alliance reporting net profit of $584,410 compared to a net loss of $345,732 for 2016.
Convertible debt was cut by approximately $450,000 and the management thinks that all convertible debt will be eliminated in the next three months.
From a 30,000-foot view, this is a company that looks like it needs to clean up its share structure as the fundamentals seem to be coming around. The share price has also been increasing, rising from around $0.0007 at the end of 2017 to as high as $0.0029 at the start of March.
Despite the upbeat report, shares are down $0.0004, or 17.4%, to $0.0019 in Thursday trading with just over three hours left in the session. At $0.0019, Alliance has a market capitalization of $4.29 million, according to data from OTC Markets Group.
