U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1996
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[_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE OF 1934
For the transition period from to
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Commission File No. 0-23914
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.,
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(Name of Small Business Issuer in its Charter)
DELAWARE 87-0521389
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(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
3626 Main Street
San Diego, California 92113
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(Address of Principal Executive Officers)
Issuer's Telephone Number: (619) 476-8272
Not applicable
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(Former Name or Former Address, if changed since last Report)
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past 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.
(1) Yes X No (2) Yes X No
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PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check Whether the Registrant filed all documents and reports required to be
filed by Section 12,13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court.
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the
Registrant's classes of common stock, as of the latest practicable date:
April 30, 1996
Common stock: 20,230,590
PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements.
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The Financial Statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management and commence on the
following page, together with Related Notes. In the opinion of management, the
Financial Statements fairly present the financial condition of the Registrant.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31
1996 1995
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(Unaudited) (Note)
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ASSETS
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Current Assets:
Cash $ 86,104 $ 62,277
Accounts Receivable 497,999 455,766
Retail Inventories 121,083 133,683
Other Current Assets 410,892 307,430
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1,116,078 959,156
Property And Equipment 4,003,574 3,641,044
Less: Accumulated Depreciation (1,207,815) (1,082,201)
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2,795,759 2,558,843
Other Asset 245,250 248,594
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Total Assets $ 4,157,087 $ 3,766,593
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities:
Accounts Payable And Accrued Expenses $ 680,225 $ 586,792
Notes Payable And Current Portion Of Long-Term Debt 559,442 366,215
Other Current Liabilities 44,892 15,350
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1,284,559 968,357
Long-Term Debt 175,068 8,626
Deferred Income Taxes 75,028 75,028
Stockholders' Equity 20,231 20,231
Common Stock 2,470,990 2,470,990
Additional Paid-In Capital (57,399) (67,269)
Unearned Compensation 188,610 290,630
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Retained Earnings 2,622,432 2,714,582
Total Liabilities And Stockholders' Equity $ 4,157,087 $ 3,766,593
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See Notes To Condensed Consolidated Financial Statements.
Note: The Balance Sheet at December 31, 1995 has been derived from the Audited
Financial Statements at that date.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
Three Months Ended March 31,
1996 1995
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Revenues $ 1,802,606 $ 1,785,392
Cost of Goods Sold 885,876 910,393
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Gross Profit 916,730 874,999
General And Administrative Expenses 855,105 838,348
Depreciation 143,677 110,000
Interest Expense 19,968 48,900
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(Loss) Before Income Taxes (102,020) (122,249)
Income Taxes 0 0
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Net (Loss) $ (102,020) $ (122,249)
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Net (Loss) Per Share $ (0.01) $ (0.01)
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Weighted Average Shares Outstanding 20,230,590 19,454,545
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See Notes To Condensed Consolidated Financial Statements.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
Three Months Ended March 31,
1996 1995
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Cash From Operations $ 23,344 $ (82,874)
Investing Activities
Purchase of property and equipment (362,530) (189,755)
Other 3,344 12,163
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(359,186) (177,592)
Financing Activities
Borrowing and repayment of debt 359,669 269,882
Issuance of additional common stock 0 51,107
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359,669 320,989
Increase In Cash $ 23,827 $ 60,523
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See Notes To Condensed Consolidated Financial Statements.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1996
NOTE 1 - BASIS OF PRESENTATION
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The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10Q and Item 10 of
Regulation S-B. Accordingly, they do not include all of the information for
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended March 31,
1996, are not necessarily indicative of the results that may be expected for the
year ended December 31, 1996.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
ITEM 2.-- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
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Three Months Ended March 31, 1996 Compared To Three Months Ended March 31, 1995
Revenues for the first quarter of 1996 increased by $17,215 or 1% over the
comparable period for 1995. This increase was due to increases in NiteLife,
Inc. of $234,067 or 26.8% and Performance Sound and Light of $32,055 or 12.7%
partially offset by a decrease in Just Games, Inc. of $85,388 or 17.2% and
$111,335 in first quarter 1995 revenues from Harper's Music Store, which was
sold in August 1995. The decrease in Just Games, Inc. was primarily due to the
termination of a major contract at the end the first quarter of 1995.
Gross profit for the first quarter of 1996 increased $41,731 or 4.8% over the
first quarter of 1995 primarily as a result of the increase in revenues as noted
above. Also contributing to this increase was the sale of Harper's Music store
which had lower gross profit margins.
General and administrative expenses increased $16,757 or 2% over the same period
in 1995. This increase is due to several factors including increased travel
casts to service new customers and potential new customers and the addition of a
Division President and Chief Financial Officer.
Depreciation expense for the first quarter of 1996 increased $33,677 or 30.6%
over the comparable period in 1995 reflective of the increase in property and
equipment.
Interest expense decreased $28,932 or 58.2% during the first quarter of 1996
from the same period in 1995 due to lower short-term borrowings with associated
higher interest costs.
As a result of the above, the net loss for the first quarter 1996 was $20,229 or
16.6% lower than for the first quarter of 1995.
LIQUIDITY AND CAPITAL RESOURCES
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At March 31, 1996, the Company had a working capital deficit of $168,481
compared to a deficit of $9,201 at December 31, 1995. This increase is
primarily the result of additional short-term borrowings and an increase in the
current portion of long-term. Capital expenditure requirements for the
remainder of the year will require the Company to seek additional financing.
The Company is currently exploring various opportunities for outside financing
although there can be no assurances that these efforts will be successful.
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PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
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None: not applicable.
Item 2. CHANGES IN SECURITIES.
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None; not applicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
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None: not applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
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None; not applicable.
Item 5. OTHER INFORMATION.
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None; not applicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
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(a) Exhibits.
None.
(b) Reports on Form 8-K.
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1939, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
ENTERTAINMENT TECHNOLOGIES &
PROGRAMS, INC.
Date: May 14, 1996 By /s/ James D. Butcher
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James D. Butcher, Chairman & CEO
Date: May 14, 1996 By /s/ Bernard J. Prem
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Bernard J. Prem, CFO
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