<PAGE>
APPENDIX 2
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C., 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2000
PEACE ARCH ENTERTAINMENT GROUP INC.
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(Translation of Registrant's name into English)
#302, 1132 Hamilton Street, Vancouver, B.C., Canada, V6B 2S2
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(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20F or Form 40-F.
Form 20-F [ X ] Form 40-F [___]]
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [___] No [ X ]
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-_______________ )]
<PAGE>
PEACE ARCH LOGO
FOR IMMEDIATE RELEASE
PEACE ARCH ENTERTAINMENT ANNOUNCES SECOND QUARTER OPERATING RESULTS
MANAGEMENT EXPECTS EARNINGS TO STRENGTHEN IN SECOND HALF OF FY2000
VANCOUVER, British Columbia (April 19, 2000) - Peace Arch Entertainment Group
Inc., (AMEX: "PAE"; TSE: "PAE.A", "PAE.B"), which develops, produces and
distributes proprietary content for world wide television and the Internet,
today announced operating results for the second quarter of its Fiscal Year
2000.
For the three months ended February 29, 2000, the Company reported earnings of
$79,603, or $0.02 per diluted share, on revenue of $2.8 million. In the
comparable quarter of last year, the Company reported earnings of $163,000, or
$0.05 per diluted share, on revenue of $15.1 million. The weighted average
number of common shares outstanding increased 25% to 3,793,533 in the most
recent quarter, versus 3,025,935 a year earlier, as a result of the Company's
public stock offering in July 1999.
For the six months ended February 29, 2000, the Company reported earnings of
$443,211, or $0.11 per diluted share, compared with $1,009,000, or $0.33 per
diluted share, in the first half of FY1999. Revenue totaled $11.3 million in the
first half of FY2000, versus $30.3 million in the corresponding period of the
prior year.
"As expected, second quarter results were down over the prior-year quarter due
to reduced programming deliveries," stated Juliet Jones, Chief Financial Officer
of Peace Arch Entertainment Group Inc. "The decline in revenue reflected a
previously announced delay in the delivery of the final episodes of season 2 of
our television series FIRST WAVE, from the second quarter into our third fiscal
quarter. FIRST WAVE began its third 22-episode season last month, with the
addition of a new principal cast member, Traci Lords."
"At the present time we have shows airing in over 80 million households
throughout North America and in over 40 countries worldwide," states Peace Arch
Chief Executive Officer, Cam White. "In addition to our existing production
slate, Peace Arch has two new series which will begin shooting this spring.
Principal photography for our new syndicated television series, THE IMMORTAL,
starring Lorenzo Lamas, is set to commence on May 1, 2000. Our new comedy series
THE AGENCY (working title) will go to camera in June 2000. Our fiscal 2000
production slate represents the highest production volume of proprietary
programming ever for our Company and should result in our fourth quarter being
the best quarter in Peace Arch's history. The most significant impact of this
expanded production slate will be realized in fiscal 2001. The worldwide success
of our programming has created many new opportunities for Peace Arch, which
should pave the way for continued growth in the foreseeable future."
Peace Arch Entertainment Group Inc. develops, produces and distributes
proprietary television and Internet programming for worldwide markets. The
Company is headquartered in Vancouver, British Columbia, and its stock trades on
the American Stock Exchange under the symbol "PAE"; and on the Toronto Stock
Exchange under the symbols "PAE.A" and "PAE.B".
(NOTE: THE FINANCIAL STATISTICS INCLUDED IN THIS RELEASE ARE REPRESENTED IN
CANADIAN DOLLARS. ON FEBRUARY 29, 2000 THE BANK OF CANADA NOON SPOT RATE WAS US
$0.6898 FOR EACH $1.00 CANADIAN).
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE FORWARD-LOOKING
STATEMENTS, USUALLY CONTAINING THE WORDS "BELIEVE", "ESTIMATE", "PROJECT",
"EXPECT", OR SIMILAR EXPRESSIONS. THESE STATEMENTS ARE MADE PURSUANT TO
THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. FORWARD-LOOKING STATEMENTS INHERENTLY INVOLVE RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THE FORWARD-LOOKING STATEMENTS. FACTORS THAT WOULD CAUSE OR CONTRIBUTE TO
SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, CONTINUED ACCEPTANCE OF
THE COMPANY'S PRODUCTS AND SERVICES IN THE MARKETPLACE, COMPETITIVE
FACTORS, DEPENDENCE UPON THIRD-PARTY VENDORS, AND OTHER RISKS DETAILED IN
THE COMPANY'S PERIODIC REPORT FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION. BY MAKING THESE FORWARD-LOOKING STATEMENTS, THE COMPANY
UNDERTAKES NO OBLIGATION TO UPDATE THESE STATEMENTS FOR REVISIONS OR
CHANGES AFTER THE DATE OF THIS RELEASE.
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Additional information on Peace Arch Entertainment Group can be accessed on the
Internet at
WWW.PEACEARCH.NET
For additional information, please contact:
Juliet Jones, CFO at (604) 681-9308
Tina Baird, Media Relations at (604) 985-8991
or
R. J. Falkner & Company, Investor Relations Counsel at
(800) 377-9893 or via e-mail at [email protected].
(FINANCIAL HIGHLIGHTS TO FOLLOW)
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<PAGE>
PEACE ARCH ENTERTAINMENT GROUP INC.
CONSOLIDATED BALANCE SHEETS
AS AT FEBRUARY 28, 1999 AND FEBRUARY 29, 2000
(unaudited)
(Expressed in thousands of Canadian dollars)
<TABLE>
<CAPTION>
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1999 2000
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<S> <C> <C>
ASSETS
Cash and cash equivalents $ 445 $ 5,585
Accounts receivable 4,228 1,271
Tax credits receivable 13,213 16,949
Productions in progress 3,771 2,898
Prepaid expenses and deposits 112 623
Investment in television programming 9,534 11,654
Property and equipment 9,565 7,007
Deferred costs 214 488
Goodwill and trademarks 2,479 3,129
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$ 43,561 $ 49,604
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LIABILITIES AND SHAREHOLDERS' EQUITY
Bank indebtedness $ 9,357 $ 8,121
Accounts payable and accrued liabilities 3,604 5,755
Income taxes payable - 630
Loans due to directors and shareholders - -
Deferred revenue 2,947 2,953
Deferred gain - 349
Future income taxes 205 1,311
Debt 8,104 4,130
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24,217 23,249
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Shareholders' equity:
Share capital 26,644 32,368
Authorized:
100,000,000 Class A Multiple Voting Shares
Issued - 1,454,583 (Feb 28, 1999 - 1,512,965)
100,000,000 Class B Subordinate Voting Shares
Issued - 2,366,163 (Feb 28, 1999 - 1,512,970)
25,000,000 Preference Shares, issuable in series
Issued - nil
Other paid-up capital 136 136
Deficit (7,436) (6,149)
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19,344 26,355
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$ 43,561 $ 49,604
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</TABLE>
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<PAGE>
PEACE ARCH ENTERTAINMENT GROUP INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED FEBRUARY 28, 1999 AND FEBRUARY 29, 2000
(unaudited)
(Expressed in thousands of Canadian dollars except per share information)
<TABLE>
<CAPTION>
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3 MONTHS ENDED 6 MONTHS ENDED
1999 2000 1999 2000
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<S> <C> <C> <C> <C>
REVENUE $ 15,128 $ 2,752 $ 30,252 $ 11,280
EXPENSES:
Amortization of television programming 12,553 1,381 25,067 7,400
Other costs of production and sales 747 309 1,508 957
Depreciation and amortization 117 132 204 277
Selling, general and administrative 784 846 1,330 1,665
Interest 273 96 489 324
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14,474 2,764 28,598 10,623
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Earnings (loss) from operations before undernoted 654 (12) 1,654 657
Gain on sale of asset - 129 - 216
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Earnings before income taxes 654 117 1,654 873
Income taxes 491 38 645 430
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NET EARNINGS FOR THE PERIOD $ 163 $ 79 $ 1,009 443
Deficit, beginning of period (7,599) (6,228) (8,445) (6,592)
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DEFICIT, END OF PERIOD (7,436) (6,149) $ (7,436) $ (6,149)
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BASIC NET EARNINGS PER COMMON SHARE $ 0.05 $ 0.02 $ 0.33 $ 0.11
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FULLY DILUTED EARNINGS PER COMMON SHARE $ 0.05 $ 0.02 $ 0.33 $ 0.11
====================================================================================================================================
Weighted average number of shares outstanding
during the period (000's) 3,026 3,794 3,026 3,790
</TABLE>
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<PAGE>
PEACE ARCH ENTERTAINMENT GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND SIX MONTHS ENDED FEBRUARY 28, 1999 AND FEBRUARY 29, 2000
(unaudited)
(Expressed in thousands of Canadian dollars except per share information)
<TABLE>
<CAPTION>
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3 MONTHS ENDED 6 MONTHS ENDED
1999 2000 1999 2000
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<S> <C> <C> <C> <C>
Operating activities:
Net earnings $ 163 $ 79 $ 1,009 $ 443
Items not involving cash
Depreciation and amortization 12,743 1,482 25,610 7,632
Future income taxes 289 225 289 514
Recognition of deferred gain - (58) - (165)
Other - 8 - 17
Changes in non-cash working capital (828) 1,623 (6,018) 583
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12,367 3,359 20,890 9,024
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Investing activities:
Investment in television programming (14,568) (1,547) (29,307) (8,780)
Increase in deferred costs (51) (215) (97) (295)
Increase in goodwill and trademarks - (20) - (29)
Property and equipment acquired (65) (32) (161) (37)
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(14,684) (1,814) (29,565) (9,141)
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Financing activities:
Issue of common shares, net - 185 - 185
Repayments to directors and shareholders (386) - (386) -
Increase in bank indebtedness 1,377 57 6,708 1,189
Increase in debt - - 1,200 -
Repayment of debt (204) (64) (278) (127)
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787 178 7,244 1,247
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Increase (decrease) in cash and cash equivalents (1,530) 1,723 (1,431) 1,130
Cash and cash equivalents, beginning of period 1,975 3,862 1,876 4,455
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Cash and cash equivalents, end of period $ 445 5,585 $ 445 $ 5,585
====================================================================================================================================
Supplementary information:
Interest paid (net of amounts capitalized) $ 250 $ 154 $ 489 $ 265
Income taxes paid - - - -
</TABLE>
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<PAGE>
SIGNATURES
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, thereunto duly authorized.
Peace Arch Entertainment Group Inc.
-----------------------------------------
(Registrant)
Date April 19th, 2000 By /S/ JULIET JONES
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(Signature)*
Juliet Jones, CFO
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*Print the name and title under the signature of the signing officer.
GENERAL INSTRUCTIONS
A. Rule as to Use of Form 6-K,
This form shall be used by foreign private issuers which are required to furnish
reports pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of
1934.
B. Information and Document required to be Furnished,
Subject to General Instruction D herein, an issuer furnishing a report on this
form shall furnish whatever information, not required to be furnished on Form
40-F or previously furnished, such issuer (I) makes or is required to make
public pursuant to the law of the jurisdiction of its domicile or in which it is
incorporated or organized, or (ii) files or is required to file with a stock
exchange on which its securities are traded and which was ;made public by that
exchange, or (iii) distributes or is required to distribute to its security
holders.
The information required to be furnished pursuant to (I), (ii) or (iii) above is
that which is material with respect to the issuer and its subsidiaries
concerning: changes in business; changes in management or control; acquisitions
or dispositions of assets; bankruptcy or receivership; changes in registrant's
certifying accountants; the financial condition and results of operations;
material legal proceedings; changes in securities or in the security for
registered securities; defaults upon senior securities; material increases or
decreases in the amount outstanding of securities or indebtedness; the results
of the submission of matters to a vote of security holders; transactions with
directors, officers or principal security holders; the granting of options or
payment of other compensation to directors or officers; and any other
information which the registrant deems of material importance to security
holders.
This report is required to be furnished promptly after the material contained in
the report is made public as described above. The information and documents
furnished in this report shall not be deemed to be "filed" for the purpose of
Section 18 of the Act or otherwise subject to the liabilities of that section.
If a report furnished on this form incorporates by reference any information not
previously filed with the Commission, such information must be attached as an
exhibit and furnished with the form.
C. Preparation and Filing of Report
This report shall consist of a cover page, the document or report furnished by
the issuer, and a signature page. Eight complete copies of each report on this
form shall be deposited with the Commission. At least one complete copy shall be
filed with each United States stock exchange on which any security of the
registrant is listed and registered under Section 12(b) of the Act. At least one
of the copies deposited with the Commission and one filed with each such
exchange shall be manually signed. Unsigned copies shall be conformed.
D. Translations of Papers and Documents into English
Reference is made to Rule 12b-12(d) [17 CFR 240.12b-12(d)]. Information required
to be furnished pursuant to General Instruction B in the form of press releases
and all communications or materials distributed directly to security holders of
each class of securities to which any reporting obligation under Section 13(a)
or 15(d) of the Act relates shall be in the English language. English versions
or adequate summaries in the English language of such materials may be furnished
in lieu of original English translations.
Notwithstanding General Instruction B, no other documents or reports, including
prospectuses or offering circulars relating to entirely foreign offerings, need
be furnished unless the issuer otherwise has prepared or caused to be prepared
English translations, English versions or summaries in English thereof. If no
such English translations, versions or summary have been prepared, it will be
sufficient to provide a brief description in English of any such documents or
reports. In no event are copies of original language documents or reports
required to be furnished.
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