MVEE Assets 6.8 mil. expected revenues 4.8 mil...
First Miracle Group Reports First Quarter Fiscal 2000 Results
TORONTO/LOS ANGELES--(BUSINESS WIRE)--Nov. 4, 1999--First Miracle Group, a.k.a. Miracle Entertainment (OTCBB:MVEE), today announced the results of operations for the first quarter of its fiscal year 2000, which ended July 31, 1999.
The company reported a net loss of 4,561,036 versus a net loss of 728,522 in the same period last year. The company reports its results in Canadian dollars. Revenues were non-existent this quarter, as was the case in last year's first quarter, due to the company's recent shift from being an owner and operator of health clubs to a financier and producer of motion pictures.
Chief Executive Officer Tony Cataldo commented, "Although the company did not record revenue in the first quarter of 2000, we expect to see revenues in the upcoming quarter on presales of 4.8 million from the Cannes Film Festival for Speedway Junky,' After Sex' and Held For Ransom'."
The company's balance sheet was significantly strengthened in the reported quarter, with total current assets of 6.8 million versus 3.6 million for the year-ago quarter. Current liabilities were significantly reduced to 434,548, from 3,285,174 for the comparable period last year. Long-term debt was also significantly reduced, to 376,500, from 2,002,458 in the same period last year. Long-term debt involves convertible promissory notes that are priced above current market prices.
Cataldo added, "The company has significant assets and is nearly debt-free. The valuation of the company exceeds the market capitalization value. Upon restructuring, the balance sheet holds up strongly and now contains viable intellectual property assets that should contribute to the bottom line going forward."
On Aug. 9, 1999, First Miracle Group announced plans to merge with The Entertainment Internet Inc. (OTCBB:EINI), a global provider of information and data distribution services specifically designed for the entertainment and media industries.
Cataldo said, "Within a matter of months, we have taken a company on the verge of bankruptcy in the health club business, and successfully managed to transition it into a growing entertainment company. In this town, that is not an easy feat. It can take years for even an established production company to acquire numerous fine projects of the caliber of those that First Miracle now has in its arsenal.
"Furthermore, these Hollywood accomplishments do not come inexpensively. The company has paid consulting fees in cash and company stock to actors, producers and writers, fees that have brought value to its shareholders. In a very short time, the company has successfully arranged or developed numerous projects from the aforementioned strategic relationships."
Among the company's current projects are:
"Very Mean Men" First Miracle Group and Baio/White Productions have enlisted Tony
Vitale, director of the independent hit comedy "Kiss Me Guido," to
helm "Very Mean Men." The movie will be produced by Steve Baio, Neil
P. White and David Dadon, and executiveproduced by Tony Cataldo. Baio
and White, who teamed up in 1996, have collectively produced and
coproduced six feature films. One of their projects, the
actionfeature "The Hunted," currently is airing on DIRECTV and is
being distributed internationally by Showcase Entertainment."Alicia's Book" First Miracle Group has signed critically acclaimed film director
Martha Coolidge to direct the murderthriller "Alicia's Book."
Coolidge has won many prestigious awards including the Robert B.
Aldrich Achievement Award (1998) presented by the Directors Guild of
America, the Independent Spirit Award (1992), Best Director for
Rambling Rose, and is also the winner of the 1992 Crystal Award,
bestowed by Women in Film."Speedway Junky" First Miracle Group has announced that "Speedway Junky," written
and directed by Nickolas Perry, will be domestically distributed by
Regent Entertainment ("Gods and Monsters," Academy Award Winner
Best Adapted Screenplay distributed by Lions Gate Entertainment
Corp. AMEX/TSE:LGF). "Speedway Junky" was executiveproduced by Gus
Van Sant, Academy Awardnominated director of "Good Will Hunting," and
produced by Rodney Omanoff, Randall Emmett, George Furla and Jeff Rice
for First Miracle Group."Held For Ransom" Tony Cataldo, David Glasser and Adam Stone will serve as
executive producers for the independent teen thriller "Held For
Ransom." The picture will be produced by partners Randall Emmett and
George Furla. Emmett/Furla Films has signed Dennis Hopper to star as
the male lead in the movie."Escape From Grizzly Mountain" "Escape from Grizzly Mountain" was premiered in Los Angeles in
September, having been developed by Tomorrow Films and MVEE in
partnership. The movie, the highly anticipated sequel to the popular
"Grizzly Mountain," is likely to become the basis for a television
show, with 22 episodes expected to be produced initially."After Sex" The company has completed the feature film "After Sex," starring
Brooke Shields. First Miracle Group is currently in negotiations with
major studios."Universal Soldier, The Return" The company has an exclusive threeyear firstlook development
deal with Jean Claude Van Damme's Long Road Films. "Universal Soldier,
The Return," a sequel to the popular "Universal Soldier," which
starred Van Damme, was one of three completed Van Damme films received
by First Miracle Group. The companies will share a percentage of
income generated under the agreement."When Nietzsche Wept" First Miracle Group has acquired the rights to "When Nietzsche
Wept," authored by Irvin D. Yalom, M.D., a nationally bestselling
novel and winner of the coveted Commonwealth Award for Best Fiction.
"When Nietzsche Wept" will be produced by Academy Award(TM) and Golden
Globe(TM) nominee Pincus Perry ("Gaby:A True Story"), and First
Miracle's CEO Tony Cataldo."I'm Over Here" The company owns the 11/2 hour comedy special "I'm Over Here,"
which showcases comedian and actor Andrew "Dice" Clay. First Miracle
Group expects to air the comedy special on payperview in the first
quarter of the upcoming calendar year.Alliance with Martin Landau and Richard Abramson First Miracle Group has formed an alliance with Firestorm
Pictures LLC, run by Martin Landau and Richard Abramson, which has a
$125million fund for prints and advertising.
First Miracle Group is an independent and diversified film company with a unique corporate structure based on strategic and exclusive alliances with high-quality content producers.
This news release includes forward-looking statements made based on current management expectations pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and actual outcomes may differ materially from what is expressed or forecast. There are many factors that affect the company's business and its results of operations, including the factors discussed in the company's documents filed electronically at www.sedar.com.
1ST MIRACLE GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Continuing Operations
Canadian Dollars Three months Three months
ended ended
July 31, 1999 July 31, 1998Revenues:
Sales $ $ Production Expenses (4,742) (4,742) Operating Expenses:
Occupancy 441 40,226
Personnel 3,939,638 164,078
General and administrative 231,668 428,279
Other 16,381
Depreciation and amortization 220,896 82,035 Total Operating Expenses 4,411,024 714,618 Loss from Operations (4,415,766) (714,618)Other Income (Expense):
Interest finance charges (38,614)
Interest income 26,478
Other expenses (147,100)
Currency translation gain (loss) 13,966 (13,904) Total Other Income (Expense) (145,270) (13,904) Income (Loss) Before Taxes (4,561,036) (728,522)Income Taxes Net Loss From Continuing Operations $(4,561,036) $ (728,522) 1ST MIRACLE GROUP INC.
CONSOLIDATED BALANCE SHEETS
July 31, 1999 and 1998
Canadian Dollars
ASSETS 1999 1998
Current Assets:
Cash $ 1,165,710 $ 284,994
Membership contracts receivable 958,737
Capitalized film production costs 5,109,998 1,466,982
Accounts receivable 412,266 311,746
Inventory 304,207
Prepaid expenses 137,218
Deferred taxes current 268,747 Total Current Assets 6,825,192 3,595,413Property and Equipment
Equipment 2,792,433
Leasehold improvements 1,670,476
Furniture & fixtures 491,921 4,954,830Less accumulated depreciation
and amortization (2,592,600) Total Property and Equipment 2,362,230
Other Assets
Deferred income tax, noncurrent 1,834,046
Deposits 165,424
Goodwill 429,152
Note receivable from shareholders 602,400
Film development rights 2,708,556
Investment in film projects 742,834 2,903,765
Amortization (220,896) Total Other Assets 3,832,894 5,332,387 Total Assets $ 10,658,086 $ 11,290,030 1ST MIRACLE GROUP INC.
CONSOLIDATED BALANCE SHEETS
July 31, 1999 and 1998
Canadian Dollars
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
1999 1998Current Liabilities:
Accounts payable $ 32,495 $ 408,027
Other accrued payable 274,474 103,216
Amounts due shareholders 12,219 119,971
Notes payable 247,875
Convertible Promissory Notes
Leases payable 239,160
Deferred income 2,037,621
Income taxes payable 14,458 28,303
Reserve for discontinued operations 100,902 101,001 Total Current Liabilities 434,548 3,285,174
LongTerm Liabilities:
Notes payable 690,361
Convertible Promissory Notes 376,500 159,288
Deferred tax liabilities 1,152,809 Total LongTerm Liabilities 376,500 2,002,456Shareholders' Equity:
Common stock, unlimited shares
authorized 443,623,467 and
99,040,793 shares issued
and outstanding 30,303,476 16,393,041
Accumulated deficit (20,483,698) (9,837,102)
Currency translation gain (loss) 27,260 (346,260)
9,847,038 6,209,679Less subscriptions receivable (207,281)
Total Shareholders' Equity
(Deficit) 9,847,038 6,002,398 Total Liabilities &
Shareholders' Equity (Deficit) $ 10,658,086 $ 11,290,030
--------------------------------------------------------------------------------
Contact:
1st Miracle Group
Anthony Cataldo, 310/360-7490
or
Coffin Communications Group
Sean Collins, 818/789-0100 |
