SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: Commission File Number:
June 30,1996 0-8508
NORTHWEST TELEPRODUCTIONS,INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
Minnesota 41-0641789
(State or Other Jurisdiction of (I.R.S Employer
Incorporation or Organization) Identification Number)
4455 West 77th Street
Minneapolis, MN 55435
(Address of Principal Executive Offices)(Zip Code)
Issuer's telephone number including Area Code: 612- 835- 4455
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past twelve months (or for
such shorter period that the issuer was required to file such reports) and (2)
has been subject to such filing requirements for the past 90 days.
Yes___X____ No_________
1,356,425 shares of $.01 par value common stock were outstanding at July 31,1996
Transitional Small Business Disclosure Format (Check one):
Yes________ No___X______
<PAGE>
NORTHWEST TELEPRODUCTIONS, INC.
AND SUBSIDIARIES
INDEX
FORM 10-QSB
June 30, 1996
PART 1.
Page No.
-----------
Consolidated Balance Sheets:
June 30,1996 and March 31,1996 3
Consolidated Statements of Operations:
Three Months Ended June 30,1996 & 1995 4
Condensed Consolidated Statements of Cash Flow:
Three Months Ended June 30,1996 & 1995 5
Notes to Condensed Consolidated Financial Statements 6
Managements Discussion and Analysis 7
Other Information 8
Exhibit Index 10
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<PAGE>
PART 1
NORTHWEST TELEPRODUCTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30 MARCH 31
1996 1996
<S> <C> <C>
ASSETS: (Unaudited) *
CURRENT ASSETS:
=========== ===========
Cash $ 15,169 $ 19,188
Accounts receivable less doubtful accounts reserve
of $163,000 and $153,000 respectively 2,226,167 2,155,365
Inventory 206,006 214,105
Refundable income taxes 428,482 328,482
Deferred income taxes 216,000 216,000
Current portion of note receivable 99,831 99,831
Other assets 253,218 168,584
----------- -----------
TOTAL CURRENT ASSETS 3,444,873 3,201,555
PROPERTY, PLANT AND EQUIPMENT:
Land, buildings and improvements 3,662,682 3,645,043
Machinery and equipment 21,724,017 21,625,491
25,386,699 25,270,534
Less accumulated depreciation 18,293,293 17,813,000
7,093,406 7,457,534
PROPRIETARY PROGRAMMING 339,171 187,911
NOTE RECEIVABLE, less current portion 43,875 76,133
OTHER ASSETS 180,719 142,216
----------- -----------
563,765 406,260
----------- -----------
$11,102,044 $11,065,349
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Notes payable $ 1,360,000 1,030,000
Accounts payable 550,531 412,610
Commissions, salaries and withholding 389,110 455,320
Miscellaneous accounts payable and accrued expenses 337,221 185,408
Other liabilities 664,993 268,708
Payments due within one year on term obligations 3,355,853 3,844,659
----------- -----------
TOTAL CURRENT LIABILITIES 6,657,708 6,196,705
DEFERRED INCOME TAXES 556,000 556,000
LONG TERM DEBT AND CAPITAL LEASES, less current portion 97,188 107,751
OTHER LONG TERM LIABILITIES, less current portion 185,105 188,105
STOCKHOLDERS' EQUITY:
Common stock 13,564 13,564
Additional paid-in capital 577,123 577,123
Retained earnings 3,015,356 3,426,101
----------- -----------
3,606,043 4,016,788
----------- -----------
$11,102,044 $11,065,349
</TABLE>
*The balance sheet at March 31,1996 has been taken from the audited financial
statements at that date.
See notes to condensed consolidated financial statements.
-3-
<PAGE>
NORTHWEST TELEPRODUCTIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30
1996 1995
=========== ===========
<S> <C> <C>
NET SALES $ 2,580,515 $ 3,043,656
COSTS AND EXPENSES:
Costs of products and services sold 2,458,448 2,650,681
Selling, general and administrative 518,829 645,559
Interest 114,622 110,640
----------- -----------
3,091,899 3,406,880
----------- -----------
(511,384) (363,224)
OTHER INCOME 639 19,501
----------- -----------
LOSS BEFORE TAXES ON INCOME (510,745) (343,723)
INCOME TAX CREDIT (100,000) (135,000)
----------- -----------
NET LOSS ($ 410,745) ($ 208,723)
=========== ===========
NET LOSS PER SHARE (1) ($ .30) ( $.14)
=========== ===========
</TABLE>
(1) Net earnings (loss) per share are based on the weighted average number
of common shares outstanding during the periods as follows:
THREE MONTHS: JUNE 30,1996 1,356,425
JUNE 30,1995 1,356,425
See notes to condensed consolidated financial statements.
-4-
<PAGE>
NORTHWEST TELEPRODUCTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOW-OPERATING ACTIVITIES:
Net loss ($410,745) ($208,723)
Adjustments:
Depreciation 480,293 535,436
Amortization of goodwill 13,974
Increase in trade receivables (70,802) (231,948)
Other - net 282,769 168,955
--------- ---------
Net cash provided by operating activities 281,515 277,694
CASH FLOW - INVESTING ACTIVITIES:
Property, plant and equipment additions (116,165) (287,344)
CASH FLOW - FINANCING ACTIVITIES:
Advances on line of credit 330,000 455,000
Payments on long term borrowing (499,369) (279,529)
Long Term Borrowing
Repurchase of common stock (399,950)
--------- ---------
Net cash provided by financing activities (169,369) (224,479)
NET DECREASE IN CASH ($ 4,019) ($234,129)
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
-5-
<PAGE>
NORTHWEST TELEPRODUCTIONS, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
The consolidated balance sheet as of June 30,1996, the consolidated statement of
operations for the three month periods ended June 30,1996 and 1995 and the
condensed consolidated statements of cash flow for the three month periods then
ended have been prepared by the Company without audit. In the opinion of
management, all adjustments necessary to present fairly the financial position,
results of operations and changes in financial position at June 30,1996 and for
all periods presented have been made.
Certain information and footnotes disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's March 31, 1996 annual
report to shareholders. The results of operation for the period ended June
30,1996 are not necessarily indicative of the results for the full year.
-6-
<PAGE>
NORTHWEST TELEPRODUCTIONS, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
LIQUIDITY AND CAPITAL REQUIREMENTS
Operating cash requirements for the first three months of fiscal 1997 were met
from cash flow from operations and $330,000 of short term borrowing.
In July the Company entered into a new debt agreement. This agreement requires
full payment by October 31,1996.
It is suggested that the Company's annual report to shareholders be read for
more detail as to the Company's overall financial position.
RESULTS OF OPERATIONS - THREE MONTHS ENDED JUNE 30,1996 COMPARED WITH
CORRESPONDING PERIOD OF PRIOR YEAR.
SALES
Sales for the three months ended June 30,1996 of $2,580,515 compare with sales
of $3,043,656 for the corresponding period of the prior year, a 15% decrease.
Approximately half of the decrease results from decreased Department of Defense
contract production with the balance of the decrease resulting from a decrease
in non contract revenue. The Company anticipates increased sales levels for the
balance of the current year.
COSTS OF PRODUCTS AND SERVICES SOLD
Cost of products and services sold for the nine months ended June 30 1996
equaled 95% of sales as compared to a cost of sales rate of 87% in the
corresponding period of the prior year. These unusually high rates reflect the
significant decline in sales in both years with only minimal reductions in fixed
production costs.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the first three months of
fiscal 1997 totaled $518,229, a decrease of $126,730 over the prior years first
quarter. Decreased salary and related expenses account for most all of the
decrease.
INTEREST EXPENSE
Interest expense for the three months ended June 30,1996 totaled $114,622
compared with expense of $110,640 in the prior years first quarter, a 3.5%
increase resulting from increased rates on variable rate debt.
INCOME TAX CREDIT
The 20% income tax credit for the first three months of fiscal 1997 reflects the
availability of alternative minimum tax loss carrybacks. The tax provision for
the first quarter of the prior year reflected the availability of operating loss
carrybacks.
- 7 -
<PAGE>
NORTHWEST TELEPRODUCTIONS, INC.
AND SUBSIDIARIES
Item 6. Exhibits and Reports on Form 8-K
Exhibits.
See exhibit index on page following signatures.
Reports on Form 8-K.
There were no reports on Form 8-K filed for the three months ended June
30,1996
-8-
<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.
Date: August 13,1996 NORTHWEST TELEPRODUCTIONS, INC.
(Registrant)
By /s/ John Lindell
John Lindell
President
By /s/ James Steffen
James Steffen
Treasurer
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<PAGE>
NORTHWEST TELEPRODUCTIONS, INC.
AND SUBSIDIARIES
EXHIBIT INDEX
TO
Form 10-QSB
For Quarter Ended June 30,1996
Exhibit
Number
27 Financial Data Schedule (filed only with electronic version)
-10-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 15,169
<SECURITIES> 0
<RECEIVABLES> 2,389,167
<ALLOWANCES> 163,000
<INVENTORY> 206,006
<CURRENT-ASSETS> 3,444,873
<PP&E> 25,386,699
<DEPRECIATION> 18,293,293
<TOTAL-ASSETS> 7,093,406
<CURRENT-LIABILITIES> 6,657,708
<BONDS> 0
0
0
<COMMON> 13,564
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,102,044
<SALES> 2,580,515
<TOTAL-REVENUES> 2,580,515
<CGS> 2,458,448
<TOTAL-COSTS> 3,091,899
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 114,622
<INCOME-PRETAX> (510,745)
<INCOME-TAX> (100,000)
<INCOME-CONTINUING> (410,745)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (410,745)
<EPS-PRIMARY> (.30)
<EPS-DILUTED> (.30)
</TABLE>
