Team Communication Grp. - Quartalsbericht 3/2000 - Meinungen! - 500 Beiträge pro Seite

[pilar1]

Hier der Quartalsbericht 3/2000!

Was haltet ihr von den Aussenständen in Höhe von fast 28 Mio USD?

Gruß pilar1

TEAM COMMUNICATIONS GROUP INC (TMTV)
Quarterly Report (SEC form 10QSB)
NALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS

This Management`s Discussion and Analysis of Financial Conditions and Results of Operations contains certain "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such statements relating to future events and financial performance are forward-looking statements involving risks and uncertainties that are detailed from time to time in our various Securities and Exchange Commission filings. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of uncontrollable factors. The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto appearing elsewhere in this 10-QSB.


RESULTS OF OPERATIONS


For the three months ended September 30, 2000, the Company reported a net income of approximately $1,040,300 on total revenues of approximately $15,259,000 compared to net income of approximately $668,600 on total revenues of approximately $6,253,400 for the same period ended September 30, 1999. Net income increased by approximately $371,700 for the three months ended September 30, 2000, versus the three months ended September 30, 1999, primarily due to the sale of certain rights of the Company`s previously acquired film libraries. Revenue for the period ended September 30, 2000 included approximately $11,550,00 from the sale of certain broadcast rights for movies of the week included in acquired libraries, $1,274,000 from Call of the Wild, and $1,041,000 from Mysterious Places.

Revenue for the three months ended September 30, 1999, included approximately $5,375,000 on the sale to SOP of certain broadcast rights of a library of twenty movie-of-the-week titles and approximately $450,000 on the sale of certain broadcast rights of a library of military documentaries. In addition, revenue for the 1999 third quarter includes approximately $333,000 from the completion and delivery of eight episodes of "Destination: Style" to Discovery`s Travel Channel.

Cost relating to revenues was $11,039,200 for the three months ended September 30, 2000 as compared to $1,920,100 for the three months ended September 30, 1999. The costs relate to amortization of production or acquisition costs of television programming for which revenue was recognized during the period. Gross profit margin on sales of television programming for the three months end September 30, 2000 was 28 percent compared to 69 percent for the






period ended September 30, 1999. The lower gross profit margin for the three months ended September 30, 2000 was due to the Company selling more expensive library product and more expensive television drama programming, such as "Total Recall 2070" and "Call of the Wild", produced and owned by the Company and its partners as opposed to distributing more reality based programming and programming previously produced and acquired by the Company in the three months ended September 30, 1999.

General and administrative expense decreased to $2,197,800 for the three months ended September 30, 2000 from $2,732,700 for the same period in 1999. The decrease in general and administrative expenses is primarily due to an increase in overhead capitalized to film costs, as well as a decrease in legal and accounting costs. In the same period in 1999, the Company was engaged in its Neuer Markt financing. Capitalized overhead for the three months ended September 30, 2000 increased to $1,374,100 compared to $555,301 for the same period in 1999.

The Company had incurred an extraordinary loss of $183,700 for the three months ended September 30, 1999 related to the conversion of $1,000,000 in debt to common stock. There were no such amounts for the three months ended September 30, 2000.

For the three months ended September 30, 2000, the Company incurred and expensed $434,800 in interest expense. This is compared to $197,800 incurred and expensed for the three months ended September 30, 1999. In the first nine months of 1999, the Company had no production in process.

For the nine months ended September 30, 2000, the Company reported a net income of approximately $2,687,000 on total revenues of approximately $34,772,600 compared to net income of approximately $1,472,900 on total revenues of approximately $13,273,300 for the same period ended September 30, 1999. Net income increased by approximately $1,214,100 for the nine months ended September 30, 2000, versus the nine months ended September 30, 1999, primarily due to the sale of certain rights of Company`s library of movie of the week titles. Revenue for the period ended September 30, 2000 included approximately $19,000,000 on the sales of certain broadcast rights for movies of the week included in the Company`s acquired library.

Cost relating to revenues was $25,679,800 for the nine months ended September 30, 2000 as compared to $6,056,300 for the nine months ended September 30, 1999. The costs relate to amortization of production costs of television programming for which revenue was recognized during the period. Gross profit margin on sales of television programming for the nine months end September 30, 2000 was 26 percent compared to 54 percent for the period ended September 30, 1999. The lower gross profit margin for the nine months ended September 30, 2000 was due to the Company selling more expensive library product and






more expensive television drama programming, such as "Total Recall 2070" and "Call of the Wild", produced and owned by the Company and its partners as opposed to distributing more reality based programming and programming previously produced and acquired by the Company in the nine months ended September 30, 1999.

General and administrative expense is $4,597,100 for the nine months ended September 30, 2000 compared to $3,771,700 for the same period in 1999. Such general and administrative costs increased $825,000 primarily due to consulting fees, the addition of the U.K. and German operations overhead.

The Company had incurred an extraordinary loss of $431,900 for the nine months ended September 30, 1999 related to the conversion of $1,850,000 in debt to common stock. There were no such amounts for the nine months ended September 30, 2000.

For the nine months ended September 30, 2000, the Company incurred $574,200 in interest expense and capitalized approximately $115,000 in interest on debt related to production. This is compared to $477,900 incurred and expensed for the nine months ended September 30, 1999. In the first nine months of 1999, the Company had no production in process. The reduction in the amount of interest incurred by the Company is due to retirement of debt in 1999.

Receivables at September 30, 2000 were approximately $27,829,500, of which $25,200,000 is from entities domiciled outside the United States. These international receivables represent approximately 91% of the total receivables of the Company.


LIQUIDITY AND CAPITAL RESOURCES


The entertainment industry is highly capital intensive. During the three and nine months ended September 30, 2000, the Company used cash for operating activities of $5,702,300 and $21,789,000, respectively. These operating activities were funded primarily from the remaining cash proceeds of the issuance of common stock in a public offering in Germany that closed during the fourth quarter of 1999. As of September 30, 2000, the Company had $1,430,900 of cash and cash equivalents on hand as well as $10,515,300 of short-term investments that were pledged as collateral for a $7,500,000 line of credit, $7,473,800 of which was outstanding.

During the third quarter, the Company closed a $1,792,700 financing transaction with Imperial Bank with respect to the television series, "Call of the Wild." Pursuant to this transaction, the Company was to defer all of its distribution fees for distributing "Call of the






Wild" until Imperial Bank`s loan was repaid. The net proceeds of the loan were approximately $1,573,000. This loan was refinanced in October pursuant to a financing transaction with Call of the Wild Distribution LLC, an unaffiliated third party ("CWD"), and Heller EMX Inc. The Company sold to CWD its interest in the series "Call of the Wild", and then leased back the series. In connection with such agreements Team has agreed to repay to CWD the sum of $7,044,000 which amount has been assigned to Heller. Heller provided the acquisition loan to CWD to acquire the series. Team netted $7,644,000 from the transaction and used some of the proceeds to payoff the loan from Imperial Bank. The Team guaranty is secured by all rights to a television series and is due in November 2002. The amount guaranteed bears interest at 4.625% over LIBOR. The Company continues to pursue alternative financing for production and under the terms of such financing the Company may defer a significant portion if not all of its distribution fees until such financing is repaid. The Company`s net production commitments approximate $6,000,000 at September 30, 2000.

In addition to the above production financing, the Company continues to explore other types of debt or equity financing. No assurance can be given that such financing can ultimately be obtained or that it will be on reasonably attractive terms.


RECENT ACCOUNTING PRONOUNCEMENTS


In October 1998, the FASB released an exposure draft of the proposed statement on "Rescission of FASB Statement No. 53, Financial Reporting by Producers and Distributors of Motion Picture Films." An entity that previously was subject to the requirements of SFAS No. 53 would follow the guidance in a proposed Statement of Position, "Accounting by Producers and Distributors if Films." This proposed Statement of Position would be effective for financial statements for fiscal years beginning after December 15, 1999 and could have a significant impact on the Company`s results of operations and financial position depending on its final outcome. The Company has not concluded on its impact.

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