David: I've been watching this company for a while and notice in the PR of 4/17/00 that the film TITUS opened has done well at the box office--very well.
Do you have any more information? Thanks in advance.
Wes
PR of 4/17/00:
OVERSEAS FILMGROUP INC - Record 1999 Fourth Quarter and Year-end Revenues
Mon Apr 17 12:09:00 EDT 2000
New York, New York, Apr. 17, 2000 (Market News Publishing via COMTEX) --
Worldwide independent film distributor Overseas Filmgroup, Inc. ("Company")
announced operating results for the three-month and twelve-month periods ended
December 31, 1999.
For the quarter ended December 31, 1999, revenues increased by 375% to
$13,826,303, compared to $2,908,824 for the quarter ended December 31, 1998. The
significant rise in fourth quarter revenues was primarily due to the delivery of
the film, Titus (staring Anthony Hopkins, Jessica Lange and Alan Cumming;
directed by Julie Taymor). The Company packaged and arranged financing for the
picture.
The Company recorded an operating loss of $836,654 during the 1999 fourth
quarter, compared to an operating loss of $164,264 during the 1998 fourth
quarter, reflecting a $1.1 million write-off of development costs related to
three motion pictures not set for production within the three year accounting
guidelines. These films continue to be developed.
The Company reported a net loss for the three months ended December 31, 1999 of
$837,431, or $0.13 per share, compared to a net loss of $397,283, or $0.07 per
share in the corresponding 1998 period. Per share results for the 1999 and 1998
fourth quarter periods are based on 6,295,305 and 5,732,778 weighted average
basic and diluted common shares outstanding, respectively.
The Company also reported an unrealized gain of $1,392,028 (which is not
included in the net loss stated above) on the Company's Yahoo!, Inc.
(NASDAQ:YHOO) stock interest. The Company's Yahoo! stock holding is a result of
the Company's strategic Internet film alliance and share exchange with Yahoo!
Revenues for the year ended December 31, 1999 increased by 32% to $33, 783,836,
compared to $25,585,476 for the year ended December 31, 1998. Results in 1999
were enhanced by a greater number of films generating over $1,000,000 each in
1999 (eight films with aggregate revenue for the year of approximately
$22,947,000), compared to 1998 (six films with aggregate revenue for the year of
approximately $16,472,000). For the year ended December 31, 1999, the Company
reported an operating loss of $87,174, compared to operating income of
$1,610,365, during the comparable 1998 period. 1999 operating income was
impacted by the one-time $1.1 million write-off of development costs described
above.
The Company reported a net loss of $1,252,568, or $0.21 per share, for 1999,
compared to net income of $59,472, or $0.01 per share, in the corresponding 1998
twelve-month period. Per share results for the 1999 and 1998 twelve-month
periods are based on 5,990,153 and 5,732,778 weighted average basic and diluted
common shares outstanding, respectively.
OSFG reported an unrealized gain of $1,477,000 (which is not included in the
loss stated above) on the Company's Yahoo!, Inc. stock interest for the year.
In other developments, OSFG disclosed that its existing bank syndicate, led by
Coutts & Co., has granted the Company a one-year extension on its existing
credit facility to April 15, 2001.
OSFG also disclosed that it has entered into a commitment letter which engages
Chase Securities, Inc. to structure, arrange and use commercially reasonable
efforts to syndicate a new, senior five-year, $30 million revolving credit
facility. The Company further disclosed that it is currently involved in
negotiations regarding a potential equity investment in the Company. No
assurances can be given that either the Chase Facility or any equity investment
will ultimately be concluded.
OSFG also anticipates that its First Look Pictures division will theatrically
release The Opportunists this coming summer. The film is executive produced by
Jonathan Demme (Philadelphia), and directed by Myles Connell. The cast is led by
Christopher Walken (Pulp Fiction), Cyndi Lauper (Mrs. Parker and the Vicious
Circle) and Peter McDonald (Felicia's Journey).
Overseas Filmgroup is an independent worldwide film distribution company
specializing in the acquisition, financing, packaging and distribution of
independently produced feature films of all genre. Its First Look Pictures
division specializes in the development and theatrical release of films and
videos in the U.S., and is focused on exploiting non-theatrical and new media
distribution opportunities for the Company's extensive library of over 230
films. Further information is available at ofg.com
As a result of Overseas Filmgroup's Internet film distribution agreement with
Yahoo!, many of the Company's motion pictures are available for downloading on
the Yahoo! Broadcast Web site at
broadcast.com.
This press release includes forward-looking statements that involve risks and
uncertainties. Certain factors may cause actual results to differ materially
from those contained in the forward looking statements, including, but not
limited to, quarterly and annual fluctuations in results of operations, the
unpredictability of audience acceptance of any particular motion pictures, the
highly speculative and inherently risky and competitive nature of the motion
picture industry, and other risks detailed from time to time in the Company's
reports filed with the Securities and Exchange Commission including, but not
limited to, its Annual Report on Form 10-K for the year ended December 31, 1999.
As the motion picture business and the Company's operations are subject to
numerous uncertainties, including, among other things in addition to the
forgoing factors, the financing requirements of various film projects,
competition from companies within the motion picture industry and in other
entertainment media (many of which have significantly greater financial and
other resources than the Company), and the release schedule of competing films,
no assurance can be given that the Company's acquisition, production, financing
and distribution goals and strategies (including as described herein) will be
achieved. Actual results may differ materially from management expectations
expressed in any forward-looking statements.
(table follows)
OVERSEAS FILMGROUP, INC.
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
December 31, December 31,
(unaudited) (audited)
1999 1998 1999 1998
Revenues $13,826,303 $2,908,824 $33,783,836 $25,585,476
Expenses:
Film costs 13,944,597 2,412,507 30,887,786 21,014,728
Selling, general
and
administrative 718,360 660,581 2,983,224 2,960,383
Total
expenses 14,662,957 3,073,088 33,871,010 23,975,111
(Loss) income
from operations (836,654) (164,264) (87,174) 1,610,365
Other income
(expense):
Interest income 930 24,088 6,682 27,410
Interest
expense (519,397) (485,948) (2,018,328) (1,644,
153)
Other income 12,691 11,841 110,252 118,850
Total other
expense (505,777) (450,019) (1,901,395) (1,497,
893)
(Loss) income
before income
taxes (1,342,431) (614,283) (1,988,568) 112,
472
Income tax
(benefit)
provision (505,000) (217,000) (736,000) 53,
000
Net income
(loss) (837,431) (397,283) (1,252,568) 59,
472
Basic and diluted net
(loss) income
per share $(0.13) $0.01 $(0.21)
$0.01
Weighted average
number of common
shares
outstanding 6,295,305 5,732,778 5,990,153 5,732, 778
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