<PAGE>
U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934
Date of Report (Date of earliest event reported): October 16, 1998
----------------
Metro Global Media, Inc.
---------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-21634 65-0025871
----------------- ----------------- ----------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1060 Park Avenue, Cranston, Rhode Island 02910
---------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (401) 942-7876
--------------
-------------------------------------------------------------------------
(Former name of former address, if changed since last report)
<PAGE>
Item 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information
(1) Pro forma Balance Sheet and Statement of Income which give
effect to the acquisition of Fanzine International, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
METRO GLOBAL MEDIA, INC.
By: /s/ Janet Hoey
-----------------------
Janet Hoey, Treasurer
October 16, 1998
<PAGE>
METRO GLOBAL MEDIA, INC. AND SUBSIDIARIES
PRO FORMA BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS METRO GLOBAL FANZINE
MEDIA, INC. INTERNATIONAL Pro forma
May 30, 1998 June 30, 1998 Adjustments Consolidated
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Current Assets
Cash $ 184,995 $ 689,817 (1) $ 1,950,000 $ 134,995
(2) (689,817)
(3) (2,000,000)
Investment in marketable securities 211,629 (2) (211,629) 0
Accounts receivable, net 5,092,255 3,532,429 (2) (3,532,429) 5,092,255
Inventory 3,726,963 3,726,963
Deferred Income Taxes 248,500 248,500
Prepaid Expenses 78,751 78,751
------------ ------------- ----------- ------------
Total Current Assets 9,331,464 4,433,875 (4,483,875) 9,281,464
Motion pictures and other films, less
accumulated amortization 4,142,979 4,142,979
Property and Equipment at cost, less
accumulated depreciation 1,479,426 1,479,426
Goodwill, net (3) 7,500,000 7,500,000
Other assets 483,472 (1) 50,000 533,472
------------ ------------- ----------- ------------
Total Assets $ 15,437,341 $ 4,433,875 $ 3,066,125 $ 22,937,341
============ ============ =========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Note payable -- selling shareholders (3) $ 2,000,000 $ 2,000,000
Current portion of capital lease
obligation $ 363,956 363,956
Short-term borrowings 1,030,272 (1) 1,000,000 2,030,272
Accounts payable and accrued expenses 4,232,679 1,304,663 (2) (1,304,663) 4,232,679
Income taxes payable 326,119 326,119
------------ ------------- ----------- ------------
Total current liabilities 5,953,026 1,304,663 1,695,337 8,953,026
Convertible debentures (1) 1,000,000 1,000,000
Capital lease obligations, less
current portion 351,538 351,538
Deferred income taxes 59,300 59,300
------------ ------------- ----------- ------------
Total liabilities 6,363,864 1,304,663 2,695,337 10,363,864
------------ ------------- ----------- ------------
Minority interest 18,220 18,220
------------ ------------- ----------- ------------
Commitments and Contingencies
Shareholders' Equity
Series A cumulative convertible preferred
stock, $.0001 par value,
$1,000 stated 857,979 857,979
Preferred Stock, no par value
Common Stock, $.0001 par value 424 (3) 100 524
Additional paid in capital 6,546,580 (3) 3,499,900 10,046,480
Retained Earning 1,712,774 3,129,212 (2) (3,129,212) 1,712,774
------------ ------------- ----------- ------------
9,117,757 3,129,212 370,788 12,617,757
------------ ------------- ----------- ------------
Unearned Compensation (62,500) (62,500)
------------ ------------- ----------- ------------
Total Shareholders' Equity 9,055,257 3,129,212 370,788 12,555,257
------------ ------------- ----------- ------------
Total liabilities and
shareholders' Equity $ 15,437,341 $ 4,433,875 $ 3,066,125 $ 22,937,341
============ ============= =========== =============
</TABLE>
NOTES
(1) Borrowings made to finance acquisition of Fanzine, net of offering
costs
(2) To record dividend to selling shareholders
(3) To record purchase of stock of Fanzine International Inc. for
$2,000,000 cash, $2,000,000 note payable and 1,000,000 shares of
stock valued at $3,500,000
<PAGE>
METRO GLOBAL MEDIA, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF INCOME
<TABLE>
<CAPTION>
METRO GLOBAL FANZINE
MEDIA, INC. INTERNATIONAL
Year ended Eleven months ended Pro forma
May 30, 1998 June 30, 1998 Adjustments Consolidated
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
Revenues $ 20,391,134 $ 9,745,892 $ 30,137,026
Cost of Revenues 13,330,798 4,141,395 17,472,193
------------ ------------- ----------- ------------
7,060,336 5,604,497 0 12,664,833
Selling, general and administrative
expenses 6,219,307 809,574 (1) (200,000) 9,444,693
(2) 330,000
(3) 2,285,812
------------ ------------- ----------- ------------
Income (loss) from operations 841,029 4,794,923 (2,415,812) 3,220,140
Other income and expenses
Interest expense (348,980) (7) (240,032) (589,012)
Royalty income 127,206 127,206
Miscellaneous expense (3,870) (3,870)
Minority interest (18,220) (18,220)
Goodwill amortization (4) (458,333) (458,333)
Acquisition cost amortization (5) (7,944) (7,944)
Financing cost amortization (6) (45,833) (45,833)
------------ ------------- ----------- ------------
(243,864) 0 (752,142) (996,006)
------------ ------------- ----------- ------------
Income before provision for
income taxes 597,165 4,794,923 (3,167,954) 2,224,134
Provision for income taxes 247,484 (8) 847,014 1,094,498
------------ ------------- ----------- ------------
Net income $ 349,681 $ 4,794,923 ($ 4,014,968) $ 1,129,636
=========== ============= =========== ============
</TABLE>
NOTES
(1) Add back salaries paid to shareholders
(2) Deduct base salaries per employment agreements
(3) Deduct incentive compensation per agreement
(4) Amortize 11 months of goodwill, valued at $7,500,000.
Goodwill is being amortized over 15 years.
(5) Amortize 11 months of acquisition costs of $130,000
(6) Amortize 11 months of financing costs of $100,000
(7) Record interest expense at 8% on $4,000,000 of borrowing
(8) Record income tax effect
