Thanks TerriB. Here is the financial portion of the report for our review:
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31 JUNE 30
1999 1998
-------------- --------------
ASSETS (Unaudited) (Note)
- ------
<S> <C> <C>
Current Assets:
Cash $ (10,215.48) $ 222,328.00
Accounts Receivable 492,365.39 435,308.00
Retail Inventories 187,171.85 161,137.00
Prepaid Expenses 314,583.59 131,586.00
Other Current Assets 131,497.40 -
-------------- --------------
1,115,402.75 950,359.00
Property and Equipment $ 8,751,894.05 $ 8,280,103.00
Less: Accumulated Depreciation 3,173,534.85 (2,220,177.00)
-------------- --------------
5,578,359.20 6,059,926.00
Other Assets 386,250.28 812,710.00
-------------- --------------
TOTAL ASSETS $ 7,080,012.23 $ 7,822,996.00
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities:
Accounts Payable and Accrued Expenses $ 514,456.47 $ 353,016.00
Notes Payable and Current Portion of Long-Term Debt 143,741.90 474,569.00
Other Current Liabilities 203,677.97 20,932.00
-------------- --------------
861,876.34 848,517.00
============== ==============
Long-Term Debt 3,176,691.92 2,045,594.00
-------------- --------------
Deferred Income Taxes -
Stockholders' Equity
Common Stock $ 787,100.00 $ 556,213.00
Additional Paid-in Capital 5,383,997.74 5,914,265.00
Retained Earnings (3,129,653.77) (1,541,593.00)
-------------- --------------
A17 Total Stockholders Equity 3,041,443.97 4,928,885.00
-------------- --------------
Total Liabilities and Stockholders' Equity $ 7,080,012.23 $ 7,822,996.00
============== ==============
</TABLE>
See Notes to Condensed Consolidated Financial Statements
Note: Fiscal Year End Changed to September 30th
4
<PAGE>
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED
MARCH JUNE
1999 1998
------------ ------------
Revenues $ 1,531,489 $ 1,546,889
Cost of Goods Sold 831,969 618,026
------------ ------------
Gross Profit 699,520 928,863
General and Administrative Expenses 787,792 795,570
Depreciation 136,708 52,355
Interest Expense 88,724 52,364
------------ ------------
(Loss) Before Income Taxes (313,776) 28,574
Income Taxes 0 0
Net (Loss) (313,776) 28,574
============ ============
Net (Loss) Per Share (0.011) $ 0.002
============ ============
Weighted Average Shares Outstanding 30,382,857 29,484,108
============ ============
See Notes to Condensed Consolidated Financial Statements
5
<PAGE>
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED
MARCH 31, 1999 JUNE 30, 1998
Cash From Operations (120,058) $ 120,740
Investing Activities
Purchase of property and equipment (1,605,211) (4,614,787)
Other 0
---------- -----------
(1,725,269) 2,366,028
Financing Activities
Borrowing and repayment of debt 1,687,702 1,453,113
Issuance of additional common stock 4,562,459
---------- -----------
1,687,702 6,015,572
Increase in Cash (37,567) 1,521,525
========== ===========
Cash at Beginning of Period 27,353
----------
(10,214)
==========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6
<PAGE>
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
SIX MONTHS ENDED
MARCH 1999 JUNE 1998
Revenues $ 3,091,272 $ 2,897,569
Cost of Goods Sold 1,627,874 1,165,692
----------- -----------
Gross Profit 1,463,398 1,731,877
General and Administrative Expenses 1,734,611 1,408,385
Depreciation 242,738 143,506
Interest Expense 139,053 109,195
----------- -----------
(Loss) Before Income Taxes (653,004) 70,791
Income Taxes 0 0
Net (Loss) (653,004) 70,791
=========== ===========
Net (Loss) Per Share (0.222) $ 0.002
=========== ===========
Weighted Average Shares Outstanding 30,382,857 29,484,108
=========== ===========
See Notes to Condensed Consolidated Financial Statements
7
<PAGE>
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
ITEM 2.--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations:
Three months ended March 31, 1999 compared to three months ended June 30, 1998.
General and administrative expenses decreased $48,371 from $795,570 to $747,199
during the same quarter comparison for 1998, even though the cost of legal,
interest and cost of financing increased due to preparation for the opening of
Hero's WaterWorld on May 28, 1999.
Depreciation expense for the second quarter of 1999 increased $84,353 from
$52,355 to $136,708 over the comparable period in 1998. This is due to the
acquisition of new equipment for NiteLife installations at Osan AirBase, Korea;
Davis Moffit AirBase, Arizona; and Barksdale AirBase, Louisiana plus the Hero's
WaterWorld in Midland, Tx.
Revenues for the second quarter of 1999 increased by $21,402 from $1,546,889 for
second quarter ending June 1998 to $1,525,487 for second quarter ending March
31, 1999. It is not a fair comparison due to the change in fiscal year structure
to compare these quarter endings as our business is highly seasonal and second
quarter 1998 includes a much more favorable time of year for games and outdoor
activities. Also, revenues for Hero's in Arlington are included in the June 1998
numbers and that location has been closed.
Amortized costs of $40,000 per quarter to shut down certain Hero's locations
will be completed by September 30, 1999 which is the end of the fiscal year.
Accounts Payable and Accrued Expenses are up $161,440 from $353,016 in June 1998
to $514,456 in March 1999. These amounts are again comparing off season and peak
season numbers.
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 signed a financial agreement with
Capital Growth Planning of El Cajon, Ca. for $5.1 million in convertible debt.
The Company expects this funding to be completed during the next quarter but
there can be no assurances that this funding will close. |
