LPAC makes a profit in its slowest quarter:
Laser-Pacific Media Corp. Achieves Record Second Quarter Sales and First-Ever
Second Quarter Profit From
Operations
Business/Entertainment Editors
HOLLYWOOD, Calif.--(BUSINESS WIRE)--Aug. 8, 2001--Laser-Pacific
Media Corp. (Nasdaq:LPAC) today reported strong financial results for
the three and six-month periods ended June 30, 2001.
The company recorded its first-ever second quarter profit from
operations and increased net income 172% for the six-month period over
the prior year.
Revenues for the second quarter of 2001 increased 29% to a record
$7.6 million from $5.9 million a year ago. Gross profit advanced 270%
to $1.6 million, versus $437,000 last year, and income from operations
totaled $457,000, compared with last year when the company incurred a
loss from operations of $677,000.
Income before taxes amounted to $284,000, in contrast to a loss
last year of $960,000. Net income totaled $101,000, or $0.01 per
diluted share, compared with a net loss of $909,000, or $0.12 per
share, a year earlier.
"We are proud of the results from our outstanding second quarter,
which historically is the company's slowest period," said James R.
Parks, chairman and chief executive officer. "Revenues improved across
all categories of the company's digital media services. These results
were achieved despite the significantly higher income tax expenses
recognized by the company in the 2001 second quarter compared with the
prior year."
For the six-month period ended June 30, 2001, the company recorded
revenues of $17.5 million, a 16% increase from $15.1 million in the
corresponding period last year. Gross profit increased 40% to $4.7
million in the first half of 2001 and income from operations more than
doubled to $2.4 million from $1.1 million last year.
Income before income taxes rose 255% to $2.0 million from $568,000
in the corresponding period last year. Net income rose to $1.5
million, or $0.19 per diluted share, from $542,000, or $0.07 per
diluted share, a year earlier.
In June, the company repurchased 825,200 shares of its common
stock from Digital Creative Development Corp. "Our strong financial
condition enabled us to benefit from a solid investment opportunity
and we plan to continue taking advantage of the company's excellent
cash position to vigorously pursue growth opportunities," added Parks.
Emory M. Cohen, president and chief operating officer, said, "The
capital investment we have made over the past several years in new
technology, coupled with our vision of how this technology benefits
our customers, is beginning to show results."
At June 30, 2001, Laser-Pacific had current assets of $10.7
million, including $6.8 million in cash and cash equivalents.
Stockholders' equity totaled $16.6 million, or $2.40 per share.
About Laser-Pacific Media Corp.
Laser-Pacific Media Corp. is a premier media technology company
providing one of the most comprehensive offerings of post production
services to the motion picture, television and digital media
industries.
Well known as a leading provider of advanced high definition
services to the entertainment industry, Laser-Pacific opened the
world's first digital high definition facility in March 1998.
Recognized for its pioneering work and technical innovations, the
company has been awarded four Emmy(TM) awards for outstanding
achievement in engineering development, as well as numerous awards for
technical excellence in the post production of television and the
authoring of DVDs.
Statements included within this news release, which are not
historical in nature, may constitute forward-looking statements for
the purpose of the safe harbor provided by the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such
statements, which include, but are not limited to, the company's
ability to enter new markets, expand services, enter strategic
alliances and consummate acquisitions, involve uncertainties, and
actual results could differ from those described herein. Other factors
include the company's ability to successfully expand capacity, general
economic market or business conditions, investments in new
technologies, continuation of sales levels, the risks related to the
cost and availability of capital, and other factors, many of which are
beyond the control of the company. Careful consideration should be
given to cautionary statements made in the company's most recently
filed SEC documents, in particular, the company's 10-K and previous
10-Qs.
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LASER-PACIFIC MEDIA CORP.
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Revenues $ 7,580,568 $ 5,858,496 $17,507,758 $15,104,235
Operating costs
Direct costs 4,855,102 4,411,294 10,654,412 9,762,725
Depreciation 1,105,222 1,009,780 2,103,455 1,948,892
Total operating
costs 5,960,324 5,421,074 12,757,867 11,711,617
Gross profit 1,620,244 437,422 4,749,891 3,392,618
Selling, general
and administrative
and other expenses 1,163,397 1,113,928 2,369,012 2,263,493
Income (loss)
from operations 456,847 (676,506) 2,380,879 1,129,125
Interest expense 276,872 346,631 544,790 691,630
Other income 104,496 63,371 181,287 130,288
Income (loss)
before income
taxes 284,471 (959,766) 2,017,376 567,783
Income taxes
(benefit) 183,709 (50,500) 454,118 25,900
Net income
(loss) $ 100,762 $ (909,266) $ 1,472,258 $ 541,883
Income (loss) per
share -- basic $ 0.01 $ (0.12) $ 0.19 $ 0.07
Income (loss) per
share -- diluted $ 0.01 $ (0.12) $ 0.19 $ 0.07
Weighted average
shares outstanding
-- basic 7,476,895 7,721,193 7,614,095 7,720,093
Weighted average
shares outstanding
-- diluted 7,666,804 7,721,193 7,791,593 8,107,291
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LASER-PACIFIC MEDIA CORP.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, December 31,
2001 2000
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 6,832,365 $ 4,527,042
Receivables net of allowance
for doubtful accounts 2,599,616 5,339,830
Other current assets 1,252,041 1,274,546
Total current assets 10,684,022 11,141,418
Net property and equipment 17,819,071 18,457,816
Other assets 654,484 824,082
Total assets $29,157,577 $30,423,316
Liabilities and stockholders' equity
Current liabilities:
Current installments of
notes payable to bank
and long-term debt $ 3,287,882 $ 3,489,618
Other current liabilities 1,846,121 1,797,369
Total current liabilities 5,134,003 5,286,987
Notes payable to bank and
long-term debt, less current
installments 7,411,934 7,934,387
Stockholders' equity:
Common stock, $.0001 par value.
Authorized 25,000,000 shares;
issued and outstanding 7,753,295
shares at June 30, 2001 and
7,751,295 shares at
December 31, 2000. 775 775
Additional paid-in capital 19,936,596 19,936,156
Accumulated deficit (1,262,731) (2,734,989)
Treasury stock, at cost:
825,200 shares at June 30, 2001 (2,063,000) --
Net stockholders' equity 16,611,640 17,201,942
Total liabilities and
stockholders' equity $29,157,577 $30,423,316
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--30--mtb/la* kr/la
CONTACT: Laser-Pacific Media Corp.
Robert McClain, 323/462-6266
investor@laserpacific.com
or
PondelWilkinson MS&L
Gary Maier/Angie Yang, 310/207-9300
investor@pondel.com |
