ACE MARKETING & PROMOTIONS, INC.
457 ROCKAWAY AVENUE
VALLEY STREAM, NY 11581
ACE REPORTS RESULTS OF OPERATIONS FOR THE SECOND QUARTER OF 2010
VALLEY STREAM, NY - (Business Wire) – August 16, 2010
Ace Marketing & Promotions, Inc. (OTC BB: AMKT) announced today the results for its second quarter ended
June 30, 2010.
(A) Revenues increased due to the increased efforts of the company’s sales force and improvement in the overall
(B) Increase in cost of revenues is related to an increase in purchases due to the rise in sales.
(C) Gross profit was $260,093 in the second quarter of 2010 or 24.1% of net revenues compared to $340,898
of revenues or 40.5% of net revenues in the second quarter of 2009. Gross Proft was $495,258 in the first six
months of 2010 or 29.5% of net revenues compared to $465,062 in the same six months of 2009 or 35.8% of
revenues. Gross profits will vary period to period depending upon a number of factors including the mix of items
sold, pricing of the items and the volume of product sold. Also, it is our practice to pass freight costs on to our
customers. Reimbursement of freight costs which are included in revenues have lower profit margins than sales of
our promotional products and has the effect of reducing our overall gross profit margin on sales of products,
particularly on smaller orders. The lower gross profit percentage in the second quarter of 2010 is due to
revenues from a mixture of proximity marketing, website development and direct relationship marketing.
(D) Operating expenses for the three and six months ended June 30, 2010 increased by approximately $328,000
and $360,000, respectively, as compared to the comparable period of the prior year. Operating expenses for
the three and six months ended June 30, 2010 include an increase in stock based payments (non – cash) of
$409,862 and $426,234, respectively, as compared to the comparable periods of the prior year.
(E) Net loss for the three