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Non-Tech : TBAE that's E for Entertainment! -- Ignore unavailable to you. Want to Upgrade?

To: Terry Menia who wrote (84)	4/2/1999 2:07:00 PM
From: Bill Fortune III	Respond to of 163

Hi Terry. You said “Sounds good - but - does anyone understand their business enough to make a sound judgement about the numbers and their (our) future?” I will try and give you my take on it. Based on the three paragraphs below which were taken from their most recent SEC filing 3/98: sec.yahoo.com I would appear that as they said they book/schedule/produce a multitude of events a great number of varied clientele. I also appears that a great number of events are scheduled/produced solely by TBA ENTERTAINMENT CORP and others are scheduled in conjunction with others, i.e. through a 50% interest in Warner/TBA, a joint venture with an affiliate of Time Warner. And apparently based on their most recent filing this is growing by leaps and bounds, 406 events in 1998 compared to 108 events produced in 1997 and increase of 376%. Also they are now involved in merchandising activities through the acquisition of Eric Chandler Merchandising, Inc. and CII. The Company is aggressively pursuing additional merchandising opportunities. With other revenues from a comprehensive pay per view entertainment marketing program. In all of this it is not too hard to understand the concept of how all of this works. Take for example they contract with a company to produce some type of meeting; if all the cost associated with it's production come to say $400,000 they would have some kind of mark-up that would be included in the final price. So if the cost is $400,000 they might use a markup of say 140% bring the total cost of the production to the company to $560,000 or contract amount. Lets assume that of that markup the first $400,000 are direct costs as stated before, and an additional $68,000 were expended on general and administrative expenses. This would leave a profit of $92,000 or 23% of all the cost associated with its production ($400,000) and profit of 16.4% of total the contract amount. The markups and profit margins I used here could in fact be a lot higher or even lower. Remember Terry all of this is just my idea, but I would believe it works something along these lines in the absents of real data on my part. After reading through all the information in the link above it is my feeling about their and our future that it will be enormous as has so far been demonstrated, again in the link above. It is also my understanding that TBAE will have a Web Site in conjunction with Time Warner. As to when this will be taking place is anyones guess, if in fact this is the case. Much more could be said, but each and every investor must always do their own research and come to their own conclusions as to how to proceed with buying or not buying of any stock. The following is taken in part from the TBA ENTERTAINMENT CORP (TBAE) SEC filing of 3/99: sec.yahoo.com “The Company currently derives a majority of its revenues (86% and 98% for the years ended December 31, 1998 and 1997, respectively) from the production of business communications and entertainment events for corporate clients. The Company works with its clients to develop creative programming to deliver messages to the client's targeted audiences. The Company receives a fee for providing these services, which may include developing creative content, designing audio/visual presentations and arranging for live entertainment and related production services, including lights and sound. Revenue is recognized when the services are completed for each event. Costs of producing the events are also deferred until the event occurs. The remainder of the Company's revenues are generated from artist management (6% and 2% of total revenues for the years ended December 31, 1998 and 1997, respectively), event merchandising (5% and 0% of total revenues for the years ended December 31, 1998 and 1997, respectively) and entertainment marketing (3% and 0% of total revenues for the years ended December 31, 1998 and 1997, respectively). Artist management revenue, which generally consists of commissions received from artists' earnings, is recognized in the period in which the artist earns the revenue. There are generally only minimal direct costs associated with generating artists management revenue. Event merchandising revenue is recognized when the merchandise is shipped or sold to the customer. Cost of sales includes the direct cost of acquiring or producing the merchandise. Entertainment marketing revenues and cost of revenues are recognized when the services are completed for each program or, for those programs with multiple events, apportioned to each event and recognized as each event occurs. The Company also develops and produces entertainment marketing programs and special events through a 50% interest in Warner/TBA, a joint venture with an affiliate of Time Warner. The Company accounts for these activities using the equity method of accounting.” Good trading to all and best regards, Bill Fortune III