Public Enemy Multimedia Reports 2009 Third Quarter Results

Public Enemy Multimedia Reports 2009 Third Quarter Results was a promo written by Krimson Mask during October 2009 at Inferno 15.2 in a main event match against LPW's recently-named Goodwill Ambassador, Son of Repoman. A departure from the typical Tales of Krimson Mask promos, this promo was a press release from the point-of-view from Mask's ally D. Hammond Samuels, who was CEO of Public Enemy Multimedia, LLC and Lords of Pain Wrestling. The promo was directed towards Public Enemy's shareholders

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  Press Release Public Enemy Multimedia Reports 2009 Third Quarter Results CHICAGO, Ill., October 18, 2009 – Public Enemy Multimedia (NYSE: PEM), a publicly-traded, privately-controlled integrated media conglomerate (focusing in television, Internet, film, music and professional wrestling live events) that serves as the parent company to Lords of Pain Wrestling (LPW), today announced financial results for its third quarter ending September 30, 2009 at its shareholders conference. Revenues totaled $138.8 million as compared to $16.9 million in the 2008 third quarter. Operating income was $25.2 million as compared to $19.2 million in the prior year quarter. Net income totaled $18.6 million compared to $8.4 million in the prior year quarter, while total operating costs totaled $13.2 million as compared to $10.6 million prior.

“Certainly, LPW has far-outperformed the expectations that were set at this time last year, more than doubling operating income with a 63% rise”, stated D. Hammond Samuels, Chief Executive Officer. “2008 was a challenging year for LPW, but with the proper management and utilized strategy, our work to improve cash flow and operating efficiently resulted in a dramatic increase in profit margins that has more than offset the economic downturn and adverse consumer trends.

“We are very proud to make this announcement, especially considering the economic climate one year ago. With Public Enemy Multimedia’s resources fully backing LPW, our fanbase is positively responding to LPW programming, with merchandise sales rising due to the introduction of toys, video games, entrance videos and music. In addition, fans are responding to rising talents such as Ultramarcus, Steve Monroe and the Cash Flo, while also cheering for classic superstars like SoL, Phantom Lord, and Krimson Mask. The success of LPW during America’s worst financial situation since the Great Depression shows to me that we are listening to our audience.”

In Q3 2008, the company mistakenly borrowed from high-interest investment banks, leading to a downward spiral of net revenue. After the Altered Reality IV pay-per-view, the credit problems slaughtered the promotion to the brink of bankruptcy. In dire economic straights left in the departure of previous management, the Board of Directors turned to the quick-thinking Samuels as its CEO, who later bought the company with the backing of PEM. With his business expertise, Samuels corrected past mistakes, shored up company profits and most importantly - restored the reputation of LPW.

“We must be smart with our cash flow so that LPW does not fall into the trap it did under previous ownership. We fully believe that the strategic decisions we have made, and our ongoing commitment to manage wrestler salaries and operating costs will be the map to continued success. We know that cutting the salaries of such staple LPW stars like Wevv Mang, The Rabbi, and Jonathan Blackwell are unpopular in the short-term. However, LPW must steer away from the visions of the old guard, such as those orchestrated by Mr. Sonny Reponovich. The old ideas that were safeguarded by those in positions of power are what nearly killed the federation that our fans crave, and the Illuminati will not let opposite views hamper our progression. After Inferno 15.2, I am confident that Mr. Reponovich will be forced to share the same long-term vision that I and Krimson Mask have, so that LPW can position itself to fully maximize the financial potential of our global brands. Only a fool would see otherwise.”

Results by Business Segment

The following numbers reflect net revenues by segment and by geographic region for the three months ended September 30, 2009 and September 30, 2008.

Live Televised Programming

Revenues from our live televised wrestling events were $109.2 million for the current quarter as compared to $96.8 million in the prior year quarter. The prior year quarter included revenue related to Altered Reality IV, LPW’s biggest pay-per-view of the year just before the global economic collapse that occurred last September and subsequent resignation of LPW’s previous administration.

The Insanity brand infiltrated new markets in Europe to attract international audiences with a unique brand-wide competition called Body Count, which featured the Insanity roster and select Inferno superstars to compete in single and multi-man matches to gain entry into the second-ever DeathCube match for a shot at the LPW World Heavyweight Championship. Despite the strong ratings and revenue numbers, LPW unfortunately saw the despicable role model Hatchet Ryda become the new Heavyweight Champion after defeating five more suitable men who don’t wear clown paint.

The Inferno brand toured domestically and featured a four-man tournament at the Sacrament pay-per-view, in which Mass Chaos successfully retained the LPW International Heavyweight Championship much to the disgust of many within the organization who are not on dope. Considering Q3 2009 did not have a joint-brand pay-per-view and saw champions such as Hatchet Ryda and Mass Chaos intentionally ruining their own respective brands, these revenues are an extremely good sign. We are confident that for Q4, these revenues will skyrocket once men like Andy Savana, Styxx and/or Krimson Mask successfully defeat these atrocious “champions”, and pioneer detractors such as Son of Repoman are eliminated.

•	Live event revenues were $28.6 million as compared to $15.4 million in the prior year quarter. Altered Reality IV in Q3 2008 generated approximately $9.8 million in live event revenue, however tenuous delays of the show killed higher potential revenue by cancelling two future shows. Compared to Q4, three additional shows were produced with a higher average attendance, with extra revenue coming at our international events due to a declining American dollar and need to see the reformed Illuminati and Little Red’s underpants.

•	Pay-per-view revenues accounted for $12.6 million as compared to the $6.8 million in the prior year quarter. Altered Reality IV generated more individual pay-per-view buys and revenue individually, but both Body Count and Sacrament combined for more total pay-per-view buys and resulted in an incline of pay-per-view income. With the additional buys and more events, LPW was able to leverage for promotional consideration in terms of advertisers compared to the previous quarter.

•	Venue Merchandise revenues dropped to $2.6 million as compared to $4.2 million in the prior year quarter. This resulted in lower per capita spending of $13.15 as compared to $15.69 prior year quarter. The top selling merchandise belonged to newer television personalities such as Jude Maxwell, Eddie B, and Ultramarcus. However, declining sales were chiefly caused by the under-performing fecal matter such as Drew Michaels, Hatchet Ryda, and Mass Chaos.

•	Television Rights Fees revenues increased to $18.3 million compared to $14.5 million in the prior year quarter before the financial crisis hit full stride. This increase was primarily due to fees received from our increased viewing audience, which no-doubt occurred after the Illuminati reformed when they laid out Hatchet Ryda once he became the new LPW World Heavyweight Champion. The increase in no way reflects when Hatchet actually became Champion.