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OMB APPROVAL
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)
*
Kushner Locke Company
*
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Common Stock
*
501337109
*
Gruber & McBaine Capital Management
Elizabeth D. Giorgis
50 Osgood Place, Penthouse
San Francisco, CA 94133
(415) 981-1039
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(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
*
November 19, 1999
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the following
box / /.
Check the following box if a fee is being paid with the statement / /. (A
fee is not required only if the reporting person: (1) has a previous
statement on file reporting beneficial ownership of more than five percent
of the class of securities described in Item 1; and (2) has filed no
amendment subsequent thereto reporting beneficial ownership of five percent
or less of such class.) (See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed
with the Commission. See Rule 13d-1(a) for other parties to whom copies are
to be sent.
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).
SEC 1746 (12-91)
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SCHEDULE 13D
CUSIP No. 501337109 Page 2 of 11 Pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
GRUBER & McBAINE CAPITAL MANAGEMENT, LLC
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(E)/ /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
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NUMBER OF 7 SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,653,950
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,653,950
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,653,950
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.00
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14 TYPE OF REPORTING PERSON*
OO
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SCHEDULE 13D
CUSIP No. 501337109 Page 3 of 11 Pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
JON D. GRUBER
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF, PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(E)/ /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER
SHARES 222,600
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,653,950
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 222,600
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10 SHARED DISPOSITIVE POWER
1,653,950
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,669,850
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.61
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14 TYPE OF REPORTING PERSON*
IN
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SCHEDULE 13D
CUSIP No. 501337109 Page 4 of 11 Pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
J. PATTERSON MCBAINE
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF, PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(E)/ /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER
SHARES 259,550
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,653,950
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 259,550
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10 SHARED DISPOSITIVE POWER
1,653,950
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,693,600
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.88
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14 TYPE OF REPORTING PERSON*
IN
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SCHEDULE 13D
CUSIP No. 501337109 Page 5 of 11 Pages
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1 NAME OF REPORTING PERSON
SS OR IRS IDENTIFICATION NO. OF ABOVE PERSON
THOMAS O. LLOYD-BUTLER
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(E)/ /
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
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NUMBER OF 7 SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH 1,653,950
REPORTING --------------------------------------------------
PERSON 9 SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,653,950
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,653,950
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
/ /
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.00
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14 TYPE OF REPORTING PERSON*
IN
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SCHEDULE 13D
CUSIP No. 501337109 Page 6 of 11 Pages
ITEM 1. SECURITY AND ISSUER.
This statement relates to shares of Common Stock (the "Stock") of Kushner
Locke Company ("KLOC"). The principal executive office of KLOC is located
at 11601 Wilshire Boulevard, 21st Floor, Los Angeles, CA 90025.
ITEM 2. IDENTITY AND BACKGROUND.
The persons filing this statement and the persons enumerated in Instruction
C of Schedule 13D and, where applicable, their respective places of
organization, general partners, directors, executive officers and
controlling persons, and the information regarding them, are as follows:
(a) Gruber and McBaine Capital Management, L.L.C. (LLC); Jon D. Gruber
(Gruber); J. Patterson McBaine (McBaine);and Thomas O. Lloyd-Butler (TLB).
(b) The business address of LLC, Gruber, McBaine and TLB is 50 Osgood
Place, Penthouse, San Francisco, CA 94133.
(c) LLC is an investment adviser. Gruber and McBaine are the Managers of
LLC and TLB is a member of LLC.
(d) During the last five years, none of such persons has been convicted in
a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the last five years, none of such persons was a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction
and as a result of such proceeding was or is subject to a judgment, decree
or final order enjoining future violations of, or prohibiting or mandating
activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) All such persons are citizens of the United States of America.
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SCHEDULE 13D
CUSIP No. 501337109 Page 7 of 11 Pages
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The source and amount of funds used in purchasing the Stock were as follows:
Purchaser Source of Funds Amount
LLC Capital Under Management $811,282
Gruber Personal Funds $136,214
McBaine Personal Funds $205,249
ITEM 4. PURPOSE OF TRANSACTION.
The sole purpose of the purchase of the Stock reported herein was and is for
investment.
Except as described below, the persons named in Item 2 have no plans or
proposals that relate to or would result in any of the events listed in the
instructions to Item 4 of this statement. As of the date this statement is
filed, such persons intend to communicate directly with KLOC's management
regarding its financial condition, management and business plan, with a view
to formulating suggestions for improvement. Such persons are also
considering the advisability of discussing these matters with other
significant shareholders and other ways to improve and support KLOC's
business operations. Such persons may acquire additional shares of Stock at
any time or may dispose of part or all of their Stock at any time. Such
persons currently do not otherwise have any specific plans or proposals
regarding these matters, and have not acquired the Stock with the purpose or
effect of changing or influencing control of KLOC.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The beneficial ownership of the Stock of the persons named in Item 2 of this
statement is as follows at the date hereof:
Aggregate
Beneficially
Owned Voting Power Dispositive Power
Name Number Percent Sole Shared Sole Shared
LLC 1,653,950 12.00 0 1,653,950 0 1,653,950
Gruber 1,876,550 13.61 222,600 1,653,950 222,600 1,653,950
McBaine 1,913,500 13.88 259,550 1,653,950 259,550 1,653,950
TLB 1,653,950 12.00 0 1,653,950 0 1,653,950
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SCHEDULE 13D
CUSIP No. 501337109 Page 8 of 11 Pages
Note: In addition to the shares reported, 75,000 shares are owned by an
investment advisory client of LLC over which LLC does not have voting or
dispositive power. Therefore, LLC disclaims beneficial ownership with
respect to those shares.
The persons filing this statement effected the following transactions in the
Stock on the dates indicated, and such transactions are the only
transactions in the Stock by the persons filing this statement since
10/22/99:
Purchase Number Price
Name or Sale Date of SHARES Per Share
LLC P 11/30/99 4500 4.44
McBaine P 11/30/99 500 4.44
LLC P 11/30/99 5500 4.50
Gruber P 11/30/99 1500 4.50
McBaine P 11/30/99 1500 4.50
McBaine P 11/30/99 300 4.42
Gruber P 11/30/99 300 4.42
LLC P 11/29/99 15000 4.50
Gruber P 11/29/99 1500 4.50
McBaine P 11/29/99 2500 4.50
LLC P 11/26/99 2100 4.50
McBaine P 11/26/99 200 4.50
LLC P 11/26/99 4000 4.65
Gruber P 11/26/99 600 4.65
McBaine P 11/26/99 4000 4.68
Gruber P 11/26/99 1000 4.68
LLC P 11/26/99 3000 4.63
McBaine P 11/26/99 2000 4.63
LLC P 11/24/99 6000 4.50
McBaine P 11/24/99 1000 4.50
LLC P 11/22/99 5400 4.86
LLC P 11/19/99 60600 4.98
McBaine P 11/19/99 11500 4.98
Gruber P 11/19/99 3500 4.60
LLC P 11/19/99 3000 4.60
LLC P 11/18/99 16000 4.56
Gruber P 11/18/99 3000 4.56
McBaine P 11/18/99 4000 4.56
McBaine P 11/18/99 5000 4.68
LLC P 11/17/99 9000 4.40
Gruber P 11/17/99 2000 4.40
McBaine P 11/17/99 2000 4.40
LLC P 11/17/99 2000 4.50
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SCHEDULE 13D
CUSIP No. 501337109 Page 9 of 11 Pages
Gruber P 11/17/99 2000 4.50
LLC P 11/16/99 3500 4.63
McBaine P 11/16/99 500 4.63
LLC P 11/16/99 600 4.42
McBaine P 11/16/99 300 4.42
LLC P 11/15/99 2000 4.36
Gruber P 11/15/99 1100 4.36
McBaine P 11/15/99 400 4.36
LLC P 11/10/99 14000 4.47
Gruber P 11/10/99 5000 4.47
McBaine P 11/10/99 3000 4.47
LLC P 11/9/99 8500 4.19
McBaine P 11/9/99 1500 4.19
LLC P 11/3/99 6000 3.92
Gruber P 11/3/99 10000 3.92
McBaine P 11/3/99 4000 3.92
LLC P 10/29/99 4500 3.97
McBaine P 10/29/99 500 3.97
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SCHEDULE 13D
CUSIP No. 501337109 Page 10 of 11 Pages
ITEM. 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
LLC is the general partner of various limited partnerships, pursuant to
limited partnership agreements. These agreements provide to the general
partner the authority, among other things, to invest the funds of such
partnerships in the Stock and to vote and dispose of those securities. Also
pursuant to those limited partnership agreements, LLC is entitled to fees
based on assets under management and realized and unrealized gain, if
certain conditions are met. Pursuant to investment management agreements,
LLC is authorized, among other things, to invest funds of their various
investment advisory clients, and to vote and dispose of those securities.
Such investment management agreements may be terminated by either party on
thirty days' notice, and provide for fees payable to LLC based on assets
under management and realized and unrealized gains, if certain conditions
are met. Pursuant to authority granted to LLC orally and under a Power of
Attorney, LLC is authorized, among other things, to invest funds of various
relatives and affiliates of Gruber and McBaine. Such authority may be
terminated at any time on notice and there are no fees payable to LLC for
those services.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
A. Agreement Regarding Joint Filing of Statement on Schedule 13D or 13G
(previously filed).
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SCHEDULE 13D
CUSIP No. 501337109 Page 11 of 11 Pages
SIGNATURES
After reasonable inquiry and to the best of my knowledge, I certify that the
information set forth in this statement is true, complete and correct.
DATED: December 10, 1999
Jon D. Gruber
J. Patterson McBaine
Thomas O. Lloyd-Butler
Gruber and McBaine Capital Management, L.L.C., by J. Patterson McBaine,
Manager
CSR\2217\006\1077056.01
