ETPI earnings here and now...
U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
Entertainment Technologies & Programs, Inc.
Condensed consolidated statements of income.
June 1999 September 1998
Revenues $1,935,635 $1,906,815
Cost of Goods Sold 841,725 696,537
Gross Profit 1,093910 1,210,278
General Administrative Expenses 797,703 1,134,490
Depreciation 115,357 100,943
Interest Expense 46,127 86,308
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Net Profit (Loss) $134,723 (111,462)
Net Profit (Loss) Per Share 0.004 (0.004)
Weighted Average Shares Outstanding 30,529,877 29,484,108
(x) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE OF 1934
Commission File No. 0-23914
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
(Name of Small Business Issuer in its Charter)
DELAWARE 87-0521389 (State or Other Jurisdiction of (I.R.S. Employer I.D. No.) Incorporation or organization)
16055 Space Center Blvd., Suite 230
Houston, TX 77062
(Address of Principal Executive Officers)
Issuer?s Telephone Number: (281) 486-6115
Not Applicable
(Former Name or Former Address, if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange
Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such requirements for the past 90 days.
(1) Yes __x__ No _____ (2) Yes__x__ No ______
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the Registrant filed all documents and reports required to be filed by Section 12, 13, or 15 (d) of the Exchange Act after the distribution of securities under a plan confirmed by court.
Not Applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant?s classes of common stock, as of the latest practicable date:
January 31, 1999
Common stock: 30,529,877
PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements
The financial Statements of the Registrant required to be filed with this 10-QSB Quarterly Report were prepared by management and commence on the following pages, together with Related Notes. In the opinion of management, the, Financial Statements fairly present the financial condition of the Registrant.
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 1999
Note 1. - Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10Q and Item 10 of Regulation S-B. Accordingly, they do not include all of the information for footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended June 30, 1999 are not necessarily indicative of the results that may be expected for the year ended September 30, 1999.
The board of directors elected to change the fiscal year end to September 30; therefore, the basis of comparison will be 3rd quarter ending June 1999 for year end 1999 to 3rd quarter ending September 1998 for year end 1998.
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
ITEM 2. - MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations:
Three months ended June 30,1999 compared to three months ended September 30,1998.
General and administrative expenses decreased $336,787 from $1,134,490 to $797,703 during the same quarter comparison for 1998. Even though there are additional expenses generated by Hero?s WaterWorld and PS&L due to the additional government purchase orders there is an offset reflected in the additional revenues generated by those entities. Also the accounts payable has decreased due to intercompany payments of amounts by one company by another and thus double booking of some expenses. These amounts were purged and reflect a more accurate balance.
Depreciation expense for the third quarter of 1999 increased $259,341 from $4,755,500 to $5,014,841 over the comparable period in 1998. This is due to the increase of assets at the waterpark.
Revenues for the third quarter of 1999 increased by $28,820 from $1,906,815 for third quarter ending September 1998 to $1,935,635 for third quarter ending June 30, 1999. The opening of the Hero?s WaterWorld and increased purchases from the military from Performance Sound & Light, Inc. have accounted for the increases. The addition of a website and on-line purchasing has been a substantial addition to the earnings of PS&L. However, some of the increases in revenues accounted for by Hero?s WaterWorld and PS&L are offset by the closings of Hero?s at Arlington and loss of revenues from Bronco Bowl. The long-term debt reflects the bridge loans from Capital Growth that will roll up into the $5.3 million of Indentured Trust when and if funded. Increases in Other Current Assets and Prepaid Interest are due to
loan fees and other amounts associated with the bridge loans.
Liquidity and Capital Resources
The Company believes that internally generated cash is sufficient to fund the current level of operations. However, additional capital requirements needed for planned growth and to reduce short term debt will require the Company to seek additional outside financing. The Company has a financial agreement with Capital Growth Planing of El Cajon, Ca. for $5.3 million in Indentured Trust. The Company expects this funding to be completed during the next quarter but there can be no assurances that this funding will close. This funding upon closing, will retire all existing debt of the company to include certain bridge loans.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
Date: August 14, 1999 By: James D. Butcher/s/
James D. Butcher, Chairman & CEO
Date: August 14, 1999 By: V. J. Farmer/s/
V. J. Farmer, Controller |
