Laser-Pacific Media Corporation Reports 2001 Third Quarter, Nine-Month Results
Board Authorizes Stock Repurchase Program
HOLLYWOOD--(BUSINESS WIRE)--Nov. 12, 2001--Laser-Pacific Media Corporation (Nasdaq NM:LPAC - news) today reported financial results for its third quarter and nine months ended September 30, 2001.
Net income for the quarter ended September 30, 2001 was $375,000, or $0.05 per diluted share, compared with $281,000, or $0.04 per diluted share, in the same period last year. Net income for the quarter included non-recurring revenue of $193,000 attributable to a research and development agreement and recognition of an income tax benefit of $400,000 relating principally to the realization of deferred tax assets. The company incurred a loss from operations of $125,000 for the 2001 third quarter , compared with income from operations of $542,000 in the same period last year. Revenues for the 2001 quarter were $6.9 million compared with $7.2 million a year earlier.
For the nine-month period, net income was $1,848,000, or $0.25 per diluted share, an increase of $1,025,000 compared to $823,000, or $0.10 per diluted share recorded in the prior-year period. Net income for the nine-months included the recognition of income tax benefit and non-recurring revenue discussed above. Income from operations was $2.3 million for the nine months ended September 30, 2001 as compared to $1.7 million in the same period last year. Revenues for the nine months increased 9.1 percent to $24.4 million from $22.3 million last year, reflecting particular strength from post-production services related to episodic television shows and the company's digital compression services in the first half of 2001.
The company today also announced that its board of directors has authorized the repurchase of up to $2.0 million of common stock in the open market or in private transactions, subject to the company's assessment of market conditions and buying opportunities from time to time. The authorization is effective through November 1, 2002, unless terminated earlier by the board.
``The threat of industry strikes earlier in the year motivated studios and networks to stockpile movies and entertainment programming in the second quarter, which reduced movie production in the third quarter. In addition, the coverage of the September 11 events delayed the beginning of the fall prime-time television season, and resulted in the cancellation and rescheduling of programs,'' said James R. Parks, chairman and chief executive officer.
Parks added that results for the quarter were also impacted by a significant decline of made for television movies and the utilization of post-production services outside of the United States for those remaining movies.
He emphasized that while the overall slowdown in the economy and general weakness within the entertainment industry is having an impact, Laser-Pacific is well positioned from a financial and technological standpoint. Parks noted that these factors also influenced the board's decision to initiate a stock repurchase program.
In October 2001, the company was awarded its fifth Engineering Emmy for, ``significant contributions to the creation of the 24P High Definition technology.'' Emory M. Cohen, president and chief operating officer, said, ``The evolution of digital technology in the entertainment industry represents significant opportunities for Laser-Pacific. Through such innovations as 24P technology, we are working to capitalize on opportunities in television and motion picture services, as well as other digital media.''
Based upon current industry and company trends, Laser-Pacific expects reduced revenue contributions from movies made for television and motion picture ancillary services during the fourth quarter, historically the strongest period of the year. While the company's post-production business for prime time television shows remains strong, revenues are not expected to offset the softness in other services. As a result, the company anticipates net income for the fourth quarter will be less robust than the same period a year ago, which also included the benefits of tax loss carry forwards.
At September 30, 2001, Laser-Pacific had current assets of $10.2 million, including $4.8 million in cash and cash equivalents. Stockholders' equity totaled $17.2 million, or $2.15 per outstanding share.
About Laser-Pacific Media Corporation
Laser-Pacific Media Corporation 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 five 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.
TABLES FOLLOW
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ------------------------
2001 2000 2001 2000
---------- ---------- ----------- -----------
Revenues $6,856,819 $7,233,449 $24,364,577 $22,337,684
Operating costs
Direct costs 4,734,264 4,519,822 15,388,676 14,282,547
Depreciation and
amortization 1,073,060 1,046,960 3,176,515 2,995,852
---------- ---------- ----------- -----------
Total operating costs 5,807,324 5,566,782 18,565,191 17,278,399
---------- ---------- ----------- -----------
Gross profit 1,049,495 1,666,667 5,799,386 5,059,285
Selling, general and
administrative and
other expenses 1,174,426 1,125,148 3,543,438 3,388,641
---------- ---------- ----------- -----------
Income (loss) from
operations (124,931) 541,519 2,255,948 1,670,644
Interest expense 229,243 303,387 774,033 995,017
Other income 329,463 60,741 510,750 191,029
---------- ---------- ----------- -----------
Income (loss) before
income taxes (24,711) 298,873 1,992,665 866,656
Income taxes (400,141) 17,400 144,977 43,300
---------- ---------- ----------- -----------
Net income $ 375,430 $ 281,473 $ 1,847,688 $ 823,356
========== ========== =========== ===========
Income per share
- basic $ 0.05 $ 0.04 $ 0.25 $ 0.11
---------- ---------- ----------- -----------
Income per share
- diluted $ 0.05 $ 0.04 $ 0.25 $ 0.10
---------- ---------- ----------- -----------
Weighted average
shares outstanding
- basic 7,178,595 7,721,293 7,468,928 7,720,493
========== ========== =========== ===========
Weighted average
shares outstanding
- diluted 7,227,083 7,949,890 7,503,313 8,071,083
========== ========== =========== ===========
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
2001 2000
---------------- ----------------
Assets
Current assets:
Cash and cash equivalents $ 4,776,679 $ 4,527,042
Receivables net of allowance
for doubtful accounts 4,089,469 5,339,830
Other current assets 1,349,896 1,274,546
--------------- ---------------
Total current assets 10,216,044 11,141,418
Net property and equipment 19,595,517 18,457,816
Other assets 263,147 824,082
Total assets $ 30,074,708 $ 30,423,316
=============== ===============
Liabilities and stockholders'
equity
Current liabilities:
Current installments of
notes payable to bank and
long-term debt $ 3,285,412 $ 3,489,618
Other current liabilities 2,626,726 1,797,369
--------------- ---------------
Total current liabilities 5,912,138 5,286,987
Notes payable to bank and
long-term debt, less
current installments 6,925,390 7,934,387
Stockholders' equity:
Preferred stock, $.0001 par
value. Authorized 3,500,000
shares; none issued --- ---
Common stock, $.0001 par value.
Authorized 25,000,000 shares;
issued and outstanding
8,003,795 shares at
September 30, 2001 and
7,751,295 shares at
December 31, 2000. 800 775
Additional paid-in capital 20,186,681 19,936,156
Accumulated deficit (887,301) (2,734,989)
Treasury stock, at cost:
825,200 shares at
September 30, 2001 (2,063,000) ---
--------------- ---------------
Net stockholders' equity 17,237,180 17,201,942
--------------- ---------------
Total liabilities and
stockholders' equity $ 30,074,708 $ 30,423,316
=============== ===============
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