SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
for the Quarterly Period Ended September 30, 2001
OR
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
for the Transition Period from ............... to ...............
Commission File Number 0-19407
LASER-PACIFIC MEDIA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 95-3824617
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
809 N. Cahuenga Blvd.
Hollywood, California 90038
(323) 462-6266
(Address, including zip code and telephone number, including area code of
principal executive offices)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
The number of shares outstanding of each of the registrant's classes of common
stock, as of October 31, 2001 was 7,179,595 shares of Common Stock, $.0001 par
value.
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Table of Contents
Part I. Financial Information Page
------
Item 1. Condensed Consolidated Financial Statements 3
Condensed Consolidated Balance Sheets 3
Condensed Consolidated Statements of Operations 4
Condensed Consolidated Statements of Cash Flows 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition 7
and Results of Operations
Item 3. Quantitative and Qualitative Disclosures about Market Risk 10
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements
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
=============== ================
See accompanying notes to the condensed consolidated financial statements.
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 tax (benefit) expense (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
=============== =============== ============== ==============
See accompanying notes to condensed consolidated financial statements.
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months ended September 30,
---------------------------------------
2001 2000
---------------- ----------------
Cash flows from operating activities
Net income $ 1,847,688 $ 823,356
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,176,515 2,995,852
Gain on sale of property and equipment (25,713) (74,490)
Provision for doubtful accounts receivable 167,840 167,186
Change in assets and liabilities:
(Increase) decrease in:
Receivables 1,082,521 835,159
Other current assets (75,350) (92,514)
Increase (decrease) in:
Other current liabilities 829,357 138,182
Other 561,680 (181,109)
----------------- -----------------
Net cash provided by operating activities 7,564,538 4,611,622
Cash flows from investing activities:
Purchases of property and equipment (4,496,227) (1,906,861)
Net proceeds from disposal of property and equipment 206,979 355,493
----------------- -----------------
Net cash used in investing activities (4,289,248) (1,551,368)
Cash flows from financing activities:
Proceeds borrowed under notes payable to bank and long-term debt 2,870,251 1,930,846
Repayment of notes payable to bank and long-term debt (4,083,454) (3,833,240)
Proceeds from issuance of common stock 250,550 1,210
Purchase of treasury stock (2,063,000) --
----------------- -----------------
Net cash used in financing activities (3,025,653) (1,901,184)
Net increase in cash and cash equivalents 249,637 1,159,070
Cash and cash equivalents at beginning of period 4,527,042 2,398,407
----------------- -----------------
Cash and cash equivalents at end of period $ 4,776,679 $ 3,557,477
================= =================
See accompanying notes to condensed consolidated financial statements.
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting of normal
recurring items) necessary to present fairly the financial position of
Laser-Pacific Media Corporation ("the Company") and its subsidiaries as of
September 30, 2001 and December 31, 2000; the results of its operations for the
three and nine month periods ended September 30, 2001 and 2000; and cash flows
for the nine month periods ended September 30, 2001 and 2000. The Company's
business is subject to the prime time television industry's typical seasonality.
Historically, revenues and income from operations have been highest during the
first and fourth quarters, when production of television programs and demand for
the Company's services is at its highest. The net income or loss of any interim
quarter is seasonally disproportionate to revenues because selling, general and
administrative expenses and certain operating expenses remain relatively
constant during the year. Therefore, interim results are not indicative of
results to be expected for the entire fiscal year.
In accordance with the regulations of the Securities and Exchange
Commission under Rule 10-01 of Regulation S-X, the accompanying consolidated
financial statements and footnotes have been condensed and do not contain
certain information included in the Company's annual consolidated financial
statements and notes thereto.
(2) Income per Share
Income per basic and diluted share is based upon the weighted-average
number of common shares outstanding. Basic income per share is computed as net
income divided by the weighted-average number of common shares outstanding for
the period. Diluted shares outstanding represents the total of common shares
outstanding as well as the dilutive effect of options and warrants where the
exercise price was below the average closing stock price during the three and
nine-month periods ended September 30, 2001 and 2000. Diluted income per share
reflects the potential dilution that could occur from common shares issuable
through stock-based compensation plans including stock options, restricted stock
awards, warrants and other convertible securities using the treasury stock
method. The following summarizes the computation of basic income per share and
diluted income per share:
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------------ -------------------------------
2001 2000 2001 2000
------------- ------------- ------------- -------------
Net Income $ 375,430 281,473 $ 1,847,688 823,356
============= ============= ============= =============
Shares:
Weighted Average Common Shares 7,178,595 7,721,293 7,468,928 7,720,493
Dilutive Effective of Stock Options and Warrants 48,488 228,597 34,385 350,590
------------- ------------- ------------- -------------
Weighted Average Diluted Shares Outstanding 7,227,083 7,949,890 7,503,313 8,071,083
Income Per Share:
Basic $ 0.05 0.04 $ 0.25 0.11
Diluted $ 0.05 0.04 $ 0.25 0.10
(3) Income Taxes
For the nine months ended September 30, 2001, the Company recorded income
tax expense of $145,000 which includes the impact of reversing an $879,000
valuation allowance that had been recorded against the Company's net operating
loss carryforward deferred tax assets. The valuation allowance was reversed
during the third quarter when the Company was reasonably certain that there
would not be a strike and that the tax benefit associated with the valuation
allowance would be fully utilized in the current year. The Company also recorded
an income tax benefit of $400,000 relating to the reversal of the valuation
allowance in the third quarter. As a result, the Company's effective tax rate
and its income tax expense will be significantly higher in the future if the
Company remains profitable.
(4) Impact of Recently Issued Accounting Standards
In July 2001, the Financial Accounting Standards Board issued FASB
Statement No. 141, Business Combinations, and Statement No. 142, Goodwill and
other Intangible Assets. Statement No. 141 requires that the purchase method be
used for all business combinations initiated after June 30, 2001. Statement No.
142 requires that goodwill no longer be amortized to earnings, but instead be
reviewed for impairment in an annual basis. The Company is required to adopt
Statement No. 141 and No. 142 no later than the year beginning after December
15, 2001 and the Company anticipates that the adoption of these pronouncements
will have no impact on the Company's financial position or results of
operations.
In August 2001, the Financial Accounting Standards Board issued FASB
Statement No. 144, Accounting for the Impairment or Disposal of Long-Lived
Assets which supersedes FASB Statement No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. Statement No. 144
retains the fundamental provisions in Statement No. 121 for recognizing and
measuring impairment losses on long-lived assets held for use and long-lived
assets to be disposed of by sale, while also resolving certain implementation
issues associated with Statement No. 121. The Company is required to adopt
Statement No. 144 no later than the year beginning after December 15, 2001.
Management does not expect the adoption of Statement No. 144 for long-lived
assets held for use to have a material impact on the Company's financial
statements. The provisions of the Statement for assets held for sale or other
disposal generally are required to be applied prospectively after the adoption
date to newly initiated disposal activities. Therefore, management cannot
determine the potential effects that adoption of Statement No. 144 will have on
the Company's financial statements with respect to assets held for sale or
disposals.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Statements included within this document, other than statements of
historical facts, that address activities, events or developments that the
Company expects or anticipates will or may occur in the future, including such
things as business strategy and measures to implement strategy, competitive
strengths, goals, expansion and growth of the Company's business and operations,
plans, references to future success and other such matters, are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities and Exchange Act of 1934, as amended,
and fall under the safe harbor. The forward-looking statements are based on
certain assumptions and analyses made by the Company in light of its experience
and its perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances. However, actual results and financial position could differ
materially in scope and nature from those anticipated in the forward looking
statements as a result of a number of factors, including but not limited to, the
Company's ability to successfully expand capacity, general economic, market or
business conditions; the opportunities (or lack thereof) that may be presented
to and pursued by the Company; competitive actions by other companies; changes
in laws or regulations; 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. Consequently, all
of the forward-looking statements made in this report are qualified by these
cautionary statements and there can be no assurance that the actual results or
developments anticipated by the Company will be realized or, even if
substantially realized, that they will have the expected consequences to or
effects on the Company or its business operations. Readers are urged to
carefully review and consider various disclosures made by the Company in its
filings with the Securities and Exchange Commission to advise interested parties
of certain risks and other factors that may affect the Company's business and
operating results.
Results of Operations
Revenues for the nine months ended September 30, 2001 increased to
$24,365,000 from $22,338,000 for the same year-ago period, an increase of
$2,027,000 or 9.1%. The increase in revenues is attributable to increased demand
for the Company's services through the first six months of the current year that
was partially offset by a decline in demand for the Company's services during
the quarter ended September 30, 2001 (discussed below) compared to the
corresponding periods in the prior year. The increase in revenues consists
primarily of an increase in revenues of $1,826,000 from post-production services
related to the Company's core business on episodic television shows and an
increase in revenues of $555,000 from digital compression services. The increase
in revenues was partially offset by a decrease in revenues of $190,000 from film
processing resulting from increased use by some customers of film formats that
require a lower volume of film processing and a decrease in revenues of $142,000
from laser disc services.
Revenues for the three months ended September 30, 2001 decreased to
$6,857,000 from $7,233,000 for the same year-ago period, a decrease of $376,000
or 5.2%. The decline has impacted all categories of the Company's services. The
following factors impacted the decrease in revenues during this third quarter:
1) a slowing of movie production in the second and third quarters because
studios and networks stockpiled shows to ride out a threatened strike by the
writers and actors that did not materialize, which impacted the services the
Company provides on feature movies such as movie mastering, preview services and
digital compression: 2) the impact of the September 11 terrorist attacks that
resulted in the cancellation and rescheduling of certain production and delayed
the beginning of the fall broadcast season: 3) a significant decline in the
number of movies made for television with much of the remaining television movie
production business being moved outside of the United States: and 4) the overall
slowdown in the economy and general weakness of the entertainment industry,
which has impacted advertising revenues and the programs supported by those
revenues such that there are fewer non-broadcast and off network shows and those
being produced have lower post production budgets.
Operating costs for the nine months ended September 30, 2001 were
$18,565,000 versus $17,278,000 for the same year-ago period, an increase of
$1,287,000 or 7.4%. The increase in operating costs consists primarily of an
increase in labor costs of $568,000, an increase in depreciation of $181,000 and
an increase in outside services of $125,000. Higher labor costs are attributable
to salary increases. The increase in depreciation is due to equipment purchases
in prior years to expand the Company's capacity. The increase in outside
services is primarily due to the cost of digital transmission of work performed
for customers located in remote locations. Operating costs, including
depreciation, as a percentage of revenues for the nine months ended September
30, 2001 were 76.2% compared with 77.4% for the same year-ago period.
Operating costs for the three months ended September 30, 2001 were
$5,807,000 versus $5,567,000 for the same year-ago period, an increase of
$240,000 or 4.3%. The increase in operating costs consists of an increase in
labor costs of $130,000, an increase in equipment supplies and maintenance of
$88,000 and an increase in depreciation of $26,000. The increase in operating
costs was partially offset by a reduction in rawstock costs as a result of lower
revenues. The increase in labor costs is the result of compensation increases.
The increase in equipment supplies and maintenance is due to additional
equipment purchased in the past 18 months. The increase in depreciation is due
to equipment purchases in prior years to expand the Company's capacity.
Operating costs, including depreciation, as a percentage of revenues for the
three months ended September 30, 2001 were 84.7% compared with 77.0% for the
same year-ago period.
For the nine months ended September 30, 2001 the Company recorded a gross
profit of $5,799,000 compared with $5,059,000 for the same year-ago period, an
increase of $740,000 or 14.6%. The increase in gross profit is the result of the
increase in revenues partially offset by increases in operating costs, discussed
above.
For the three months ended September 30, 2001 the Company recorded a gross
profit of $1,049,000 compared to a gross profit of $1,667,000 for the same
year-ago period, a decrease of $618,000 or 37.0%. The decrease in gross profit
is the result of lower revenues for the quarter and increased operating costs,
discussed above.
Selling, general and administrative ("SG&A") expenses for the nine months
ended September 30, 2001 were $3,543,000 compared to $3,389,000 during the same
year-ago period, an increase of $154,000 or 4.6%. The increase in SG&A is
primarily attributable to an increase in professional services of $148,000, an
increase in labor costs of $79,000 and an increase in advertising expense of
$44,000. The increase in SG&A was partially offset by a decrease in property
taxes of $98,000. The increase in professional services is due to increased
legal and financial advisory fees. The increased labor costs are the result of
compensation increases in addition to a higher number of employees.
SG&A expenses for the three months ended September 30, 2001 were $1,174,000
compared to $1,125,000 for the same year-ago period, an increase of $49,000 or
4.4%. The increase in SG&A is primarily attributable to an increase in labor
costs of $59,000, an increase in advertising costs of $23,000 and an increase in
professional services of $15,000. The increase in SG&A was partially offset by a
decrease in property taxes of $41,000. The increased labor costs are the result
of compensation increases in addition to a higher number of employees. The
increase in professional services is due to increased financial advisory fees
partially offset by reduced tax consulting fees.
Interest expense for the nine months ended September 30, 2001 was $774,000
compared to $995,000 for the same year-ago period, a decrease of $221,000 or
22.2%. The decrease in interest expense is a result of lower interest rates and
a reduction of long-term debt.
Interest expense for the three months ended September 30, 2001 was $229,000
compared to $303,000 for the same year-ago period, a decrease of $74,000 or
24.4%. The decrease in interest expense is a result of lower interest rates and
a reduction of long-term debt.
Other income for the nine months ended September 30, 2001 was $511,000
compared to $191,000 for the same year-ago period, an increase of $320,000 or
167.4%. Other income primarily consists of interest income of $198,000, income
recognized in connection with a research and development collaboration agreement
of $193,000, and a gain on the sale of the Company's interest in CIS of $83,000.
Interest income increased compared to the same year-ago period as a result of
higher cash balances. The Company entered into a collaboration agreement (the
Agreement) with an equipment manufacturer and supplier. Under the agreement, the
Company provided development and consulting services related to the development
of technical equipment used in connection with high definition post-production.
In consideration for the services provided, the Company received equipment at no
charge and discounts on the purchase of additional equipment from the supplier.
During the third quarter, the Company recorded other income of $193,000 pursuant
to this agreement. The sale of the Company's interest in CIS is discussed in
other matters.
Other income for the three months ended September 30, 2001 was $329,000
compared to $61,000 for the same year-ago period, an increase of $268,000 or
442.4%. The increase in other income is primarily due to an increase in interest
income resulting from higher cash balances, recognition of other income in
connection with a collaboration agreement, discussed above, and a gain on the
sale of the Company's interest in CIS, discussed in other matters.
Income tax expense for the nine months ended September 30, 2001 was
$145,000 compared to $43,000 for the same period last year, an increase of
$102,000 or 234.8%. During the nine-month period the Company recognized tax
benefit relating to the realization of deferred tax assets. The effective tax
rate and income tax expense for the current year and future years will increase
if the Company remains profitable.
For the three months ended September 30, 2001 the Company realized an
income tax benefit of $400,000 relating to the realization of deferred tax
assets compared to an income tax expense of $17,000 for the same period last
year. The net operating loss carryforwards that had reduced the Company's tax
liability have been fully utilized as of September 30, 2001. The Company's
effective tax rate and its income tax expense for the fourth quarter of 2001
will be significantly higher if the Company remains profitable.
Net income for the nine months ended September 30, 2001 was $1,848,000
compared to $823,000 for the same year-ago period, an increase of $1,025,000 or
124.4%. The increase in net income is a consequence of the above described
factors.
Net income for the three months ended September 30, 2001 was $375,000
compared to $281,000 for the same year-ago period, an increase of $94,000 or
33.4%. The increase in net income is a result of lower revenues and increased
operating costs, increased SG&A offset by an income tax benefit, explained
above.
Liquidity and Capital Resources
As of September 30, 2001 the Company and its subsidiaries increased the
non-asset based credit facility with Merrill Lynch Business Financial Services.
The maximum credit under the agreement increased from $8.0 million to $10.0
million. The loan agreement provides for borrowings of up to $6.0 million under
a revolving loan and an equipment term loan, which increased from $2.0 million
to $4.0 million. There was no outstanding balance of the revolving loan at
September 30, 2001. The equipment loan had an outstanding balance of $1,870,000
at September 30, 2001. The revolving loan and the equipment term loan are
payable monthly and bear interest at the 30-day dealer commercial paper rate
plus 2.2%. The revolving loan is for a one-year term and can be renewed
annually. The equipment term loan is for a five-year term.
As of September 30, 2001 the Company had outstanding equipment loans and
capital lease obligations of approximately $10.2 million with various lenders
(including the equipment term loan discussed above) in connection with the
acquisition of equipment. The capital leases are for terms of up to 60 months,
at fixed interest rates ranging from 7.5% to 12.75% and variable interest rates
ranging from 2.2% to 2.65% plus the 30-day dealer commercial paper rate. The
obligations are secured by the equipment that was financed. The equipment was
acquired to expand the Company's capabilities and to support the demand for the
Company's services.
In June 2001, the Company purchased 825,200 shares of its common stock in a
private transaction for $2,063,000.
In July 2001, 35 Lake Avenue, a California limited partnership in which
James R. Parks, the Company's Chief Executive Officer is a partner, exercised
warrants to purchase 250,000 shares of the Company's common stock at an exercise
price of $1.00. The warrants were issued during 1997 in connection with a
short-term debt financing arrangement.
The Company's principal source of funds is cash generated by operations.
The Company anticipates that existing cash balances, availability under existing
loan agreements and cash generated from operations will be sufficient to service
existing debt and to meet the Company's capital requirements for fiscal 2001.
Other Matters
On July 9, 2001, the Company entered into an agreement with its joint
venture partner in Composite Image Systems, LLC ("CIS"), to sell its interest in
CIS to its joint venture partner. Under the terms of the agreement, the Company
transferred to its joint venture partner the Company's 50% interest in CIS and
certain equipment previously leased to CIS in exchange for a cash payment of
$575,000. The Company has given corporate guarantees regarding certain lease
obligations, and CIS and its joint venture partner have agreed to indemnify the
Company up to the amount of the principal obligation for any claims that might
arise under the guarantees should CIS default on the lease obligations. During
the quarter ended September 30, 2001 the Company recognized a gain of $83,000
net of related expenses in connection with the sale of its interest in CIS.
Seasonality and Variation of Quarterly Results
The Company's business is subject to substantial quarterly variations as a
result of seasonality, which the Company believes is typical of the television
post-production industry. Historically, revenues and net income have been
highest during the first and fourth quarters, when the production of television
programs and consequently the demand for the Company's services is at its
highest. Historically, revenues have been substantially lower during the second
and third quarters.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Derivative Instruments. The Company does not invest, and during the nine
and three months ended September 30, 2001 did not invest, in market risk
sensitive instruments.
Market Risk. The Company's market risk exposure with respect to financial
instruments is subject to changes in the "30-day dealer commercial paper" rate
in the United States. The Company had borrowings of $1,870,000 at September 30,
2001 under a term loan (discussed above) and may borrow up to $6.0 million under
a revolving loan. Amounts outstanding under the term loan and revolving credit
facility bear interest at the 30-day dealer commercial paper rate plus 2.2%.
If, under the existing credit facility, the "30-day dealer commercial
paper" rate were to change by 1%, the amortized interest expense would change by
approximately $46,000 annually.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
Laser-Pacific Media Corporation has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
LASER-PACIFIC MEDIA CORPORATION
(Registrant)
Dated: November 9, 2001 /s/James R. Parks
------------------
James R. Parks
Chief Executive Officer
Dated: November 9, 2001 /s/Robert McClain
------------------
Robert McClain
Chief Financial Officer
(Principal Financial and Accounting Officer)