UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
May 13, 2003
Date of Report (Date of earliest event reported)
Commission File Number 0-16323
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 Identification No.)
Incorporation or Organization)
809 N. Cahuenga Blvd., Hollywood, California 90038
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (323) 462-6266
Not applicable.
(Former name or former address, if changed since last report.)
Item 9. Regulation FD Disclosure.
In accordance with the guidance provided by the Securities and Exchange
Commission in Securities Act Release No. 33-8216, the information in this
Current Report on Form 8-K (including the exhibit), which is intended to be
furnished pursuant to Item 12 of Form 8-K and is instead being furnished
pursuant to Item 9, shall not be deemed "filed" under the Securities Exchange
Act of 1934, as amended, or otherwise subject to liabilities thereunder.
Furthermore, the information in this Current Report on Form 8-K (including the
exhibit), shall not be deemed to be incorporated by reference into the filings
of the Company under the Securities Act of 1933, as amended.
On May 13, 2003, the Company issued a press release announcing its financial
results for the quarter ended March 31, 2003. A copy of that release is
furnished as Exhibit 99.1 to this report and is incorporated herein by
reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LASER-PACIFIC MEDIA CORPORATION
By: /s/ Robert McClain
Name: Robert McClain
Title: Corporate Secretary
Date: May 13, 2003
EXHIBIT INDEX
Exhibit 99.1: Press release reporting the Company's financial results for the
quarter ended March 31, 2003.
Exhibit 99.1
`
Contacts:
Robert McClain, Chief Financial Officer
Laser-Pacific Media Corporation
323.462.6266
investor@laserpacific.com
Roger Pondel/Angie Yang
PondelWilkinson MS&L
323.866.6060
investor@pondel.com
FOR IMMEDIATE RELEASE
LASER-PACIFIC MEDIA CORPORATION REPORTS STRONG FIRST QUARTER RESULTS
-- Company Posts Double-Digit Gains in Revenues and Net Income --
HOLLYWOOD, California - May 13, 2003 - Laser-Pacific Media Corporation
(Nasdaq NM: LPAC) today reported increases in revenues, income from operations
and net income for the three months ended March 31, 2003.
Revenues for the 2003 first quarter increased 22.6 percent to $9.8 million
from $8.0 million in the first quarter 2002. Gross profit grew 32.4 percent to
$2.7 million from $2.0 million a year earlier, and improved as a percentage of
total revenues to 27.7 percent, compared with 25.7 percent in the first quarter
of 2002. Income from operations for the current quarter totaled $1.3 million, a
48.7 percent increase over $850,000 in the corresponding year-ago period. Net
income rose 66.9 percent to $656,000, or $0.09 per diluted share, from $393,000,
or $0.06 per diluted share, in the 2002 first quarter.
"In spite of the challenging economic environment in the entertainment and
advertising industries, Laser-Pacific posted double-digit gains in revenues and
net income over prior-year periods," said James R. Parks, chairman and chief
executive officer of Laser-Pacific. "In addition to higher demand in the quarter
for the services we offer, results also benefited from an increased number of
feature films serviced by the company."
Emory M. Cohen, president and chief operating officer of Laser-Pacific,
said: "In addition to a busy '02-'03 television season, we have experienced
healthy growth in activity in our new motion picture services operation during
the first quarter of 2003. During this quarter we opened our first digital color
timing theatre and it has been well received by our feature film clients. The
timing theatre marks a significant milestone in our planned expansion of
services for the feature film industry. With the enhanced film recording and
film-to-data processes currently under development, we expect that motion
picture services will be an increasingly significant factor in our future."
Laser-Pacific continued to strengthen its balance sheet, with current
assets of $13.5 million, including $7.7 million in cash and cash equivalents,
working capital of $6.5 million, and net stockholders' equity of $19.5 million,
or $2.74 per diluted share, at March 31, 2003.
About Laser-Pacific Media Corporation
Laser-Pacific Media Corporation is a premier media technology company
providing a comprehensive offering of post-production services to the motion
picture and television 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. 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 future operating results, the Company's ability to enter new
markets, including the field of digital intermediaries, expand services,
strengthen its balance sheet, cash position, and working capital, 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 10-Qs.
# # #
TABLES FOLLOW
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
-----------------------------------
2003 2002
--------------- ----------------
Revenues $ 9,794,754 $ 7,989,218
Operating costs:
Direct costs 5,788,401 4,797,443
Depreciation 1,293,649 1,142,255
--------------- ----------------
Total operating costs 7,082,050 5,939,698
--------------- ----------------
Gross profit 2,712,704 2,049,520
Selling, general and administrative
expenses 1,449,539 1,199,918
--------------- ----------------
Income from operations 1,263,165 849,602
Interest expense 189,866 225,530
Other income 19,899 30,988
--------------- ----------------
Income before income taxes 1,093,198 655,060
Provision for income taxes 437,465 262,210
--------------- ----------------
Net income $ 655,733 $ 392,850
=============== ================
Net income per share (basic) $ 0.09 $ 0.06
=============== ================
Net income per share (diluted) $ 0.09 $ 0.06
=============== ================
Weighted average shares outstanding (basic) 7,101,295 7,104,595
=============== ================
Weighted average shares outstanding (diluted) 7,115,653 7,127,528
=============== ================
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, December 31,
2003 2002
--------------- ----------------
Assets
Current Assets:
Cash and cash equivalents $ 7,690,677 $ 6,682,395
Receivables, net of allowance for doubtful accounts 4,377,274 4,835,360
Other current assets 1,418,375 1,405,772
--------------- ----------------
Total Current Assets 13,486,326 12,923,527
Net property and equipment, at cost 21,219,580 21,187,713
Other assets 185,254 188,579
--------------- ----------------
Total Assets $ 34,891,160 $ 34,299,819
=============== ================
Liabilities and Stockholders' Equity
Current Liabilities:
Current installments of notes payable to bank and long-term debt $ 3,390,215 $ 3,528,407
Other current liabilities 3,613,441 2,718,814
--------------- ----------------
Total Current Liabilities 7,003,656 6,247,221
Deferred tax liabilities 829,058 829,058
Notes payable to bank and long-term debt, less current installments 7,594,626 8,415,453
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 7,101,295 at March 31, 2003 and December
31, 2002. 710 710
Additional paid-in capital 18,089,063 18,089,063
Retained earnings 1,374,047 718,314
--------------- ----------------
Net Stockholders' Equity 19,463,820 18,808,087
--------------- ----------------
Total Liabilities and Stockholders' Equity $ 34,891,160 $ 34,299,819
=============== ================