UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 12b-25 SEC FILE NUMBER
0-22558
NOTIFICATION OF LATE FILING CUSIP NUMBER
465916
(Check One): [ ] Form 10-K [ ] Form 20-F [ ] Form 11-K
[X] Form 10-Q [ ] Form N-SAR
For Period Ended: March 31, 1996
-----------------------------------
[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR
For the Transition Period Ended:
--------------------------------
If the notification relates to a portion of the filing checked above, identify
the Item(s) to which the notification relates:
PART I -- REGISTRANT INFORMATION
Iwerks Entertainment, Inc.
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(Full Name of Registrant)
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(Former Name if Applicable)
4540 West Valerio Street
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(Address of Principal Executive Office (Street and Number))
Burbank, California 91505-1046
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(City, State and Zip Code)
PART II -- RULES 12b-25(b) AND (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed. (Check box if appropriate)
(a) The reasons described in reasonable detail in Part III of this
| form could not be eliminated without unreasonable effort or
| expense;
| (b) The subject annual report, semi-annual report, transition
| report on Form 10-K, Form 20-F, 11-K or Form N-SAR, or portion
[ X] | thereof, will be filed on or before the fifteenth calendar day
| following the prescribed due date; or the subject quarterly
| report of transition report on Form 10-Q, or portion thereof
| will be filed on or before the fifth calendar day following
| the prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
PART III -- NARRATIVE
State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K,
10-Q, N-SAR, or the transition report or portion thereof, could not be
filed within the prescribed time period.
Registrant has experienced delays in compiling the information necessary
to complete the preparation of its financial statements.
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PART IV -- OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification.
Guy Heyl 818 841-7766
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(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) of the
Securities Exchange Act of 1934 or Section 30 of the Investment Company
Act of 1940 during the preceding 12 months or for such shorter period
that the registrant was required to file such report(s) been filed? If
answer is no, identify report(s).
[ X ] Yes [ ] No
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(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be reflected
by the earnings statements to be included in the subject report or
portion thereof?
[ X ] Yes [ ] No
If so, attach an explanation of the anticipated change, both narratively and
quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.
See attached press release.
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Iwerks Entertainment, Inc.
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(Name of Registrant as Specified in Charter)
has caused this notification to be signed on its behalf by the undersigned
hereunto duly authorized.
Date May 14, 1996 By: /s/Guy Heyl
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Guy Heyl, Vice President of
Finance and Accounting
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ATTACHMENT - PRESS RELEASE
April 30, 1996, Tuesday
HEADLINE: Iwerks Entertainment reports third consecutive quarterly profit
DATELINE: BURBANK, Calif.
BODY:
April 30, 1996--Iwerks Entertainment Inc. (NASDAQ NM:IWRK) Tuesday
announced the highest quarterly revenue in the company's history and the third
consecutive quarterly profit for the quarter ended March 31, 1996.
Revenues for the fiscal 1996 third quarter rose 28 percent to $13.8
million compared with $10.8 million for the third quarter of fiscal 1995. For
a third consecutive quarter, the company reported increased net income of $1.4
million, or $.12 per share, a $10 million improvement over the net loss of
$8.6 million, or $.85 per share, for the same period last year.
For the first nine months of fiscal 1996, revenues rose 14 percent to
$37.1 million compared with $32.5 million for the first nine months of fiscal
1995. Net income for the nine-month period advanced $12.7 million to $2.1
million, or $.18 per share, vs. a net loss of $10.5 million, or $1.05 per
share, for the same period of the previous year.
The rise in revenues was primarily due to increased sales of theatre
systems and the additional portable simulation theatres put into operation
this fiscal year. The company's improved profitability resulted from the
increased revenues derived from portable touring theatres, improved profit
margins from hardware and film licensing sales, and overall cost reductions.
In addition, comparable periods in the prior year were adversely impacted by
significant write-downs in the carrying value of certain assets and a one-time
restructuring charge.
Co-chairman of the board and CEO Roy A. Wright expressed satisfaction
with the progress made under the company's new management. "Today's third-
quarter revenues and earnings are a result of a strategic plan set into place
many months earlier," he said. "Three consecutive quarterly profits offer
validation that we are on the right track and that our company's turnaround is
real."
Iwerks Entertainment is the world's leading producer of high-tech, multi-
sensory experiences such as ride simulation, giant- screen theatres, and other
immersive attractions for the location based entertainment (LBE) market.
Founded in 1986 in Burbank, Iwerks Entertainment has installed more than 250
attractions worldwide. Recently, Iwerks forged strategic alliances with Bass
Leisure plc and Hoyts Corp. Clients include AT&T, Paramount Parks, Six Flags
Theme Parks and MGM Grand Casino.
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With the exception of the historical information, the matters discussed
above include forward-looking statements that involve risks and uncertainties.
Among the important factors that could cause actual results to differ from
those indicated in the forward-looking statements are costs of sales and the
ability of the company to maintain pricing at a level necessary to maintain
gross profit margins; the level of selling, general and administrative costs;
the performance by the company under its existing purchase and sponsorship
contracts, and the ability to obtain new contracts; the success of the
company's owned-and-operating strategy; the success of the company's film
software; and the effects of competition. These and other risk factors are
discussed in the company's recent filings on Form 8-K, 10-Q and 10-K.
IWERKS ENTERTAINMENT INC.
Financial Highlights
Fiscal 1996 Third Quarter
(in 000s, except per-share data)
CONSOLIDATED INCOME STATEMENT INFORMATION
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
_______ ______ ______ ______
Revenue $13,825 $10,838 $37,128 $32,547
Costs and Expenses:
Cost of Sales 7,642 12,201 21,601 25,345
SG&A 4,921 7,125 13,742 17,321
Research & Development 110 187 269 716
Total Costs 12,673 19,513 35,612 43,382
Interest Income, Net 226 64 607 289
Net Income (Loss) $ 1,378 $(8,611) $ 2,123 $(10,546)
Net Income (Loss) per
Common Share $ 0.12 $ (0.85) $ 0.18 $ (1.05)
Weighted Average Shares
Outstanding 11,893 10,121 11,612 10,051
CONSOLIDATED BALANCE SHEET INFORMATION
March 31, June 30,
1996 1995
_________ ________
Assets:
Current Assets and Investment
in Debt Securities $36,308 $32,400
Properties, Net 16,533 20,093
Goodwill 17,586 18,265
Other Assets 743 868
Total Assets $71,170 $71,626
Liabilities & Stockholders' Equity:
Current Liabilities $15,615 $19,122
Long-Term Liabilities 975 2,130
Stockholders' Equity 54,580 50,374
Total Liabilities &
Stockholders' Equity 71,170 71,626
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