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U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1997.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
OF 1934
For the transition period from___________________to___________________
Commission File No. 0-23914
ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
(Name of Small Business Issuer in its Charter)
DELAWARE 87-0521389
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
16055 Space Center Blvd., Suite 230
Houston, TX 77062
(Address of Principal Executive Officers)
Issuer's Telephone Number: (281)486-6115
Not Applicable
(Former Name or Former Address, if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such requirements for the past 90 days.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
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PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check Whether the Registrant filed all documents and reports required to be
filed by Section 12, 13, or 15 (d) of the Exchange Act after the distribution of
securities under a plan confirmed by court.
Not Applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date:
April 30, 1997
Common stock: 20,730,590
PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements
The financial Statements of the Registrant required to be filed with this
10-QSB Quarterly Report were prepared by management and commence on the
following pages, together with Related Notes. In the opinion of management, the
Financial Statements fairly present the financial condition of the Registrant.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
ASSETS 1997 1996
(UNAUDITED) (NOTE)
------------ ------------
CURRENT ASSETS:
CASH $ 17,256.00 $ 14,850.00
ACCOUNTS RECEIVABLE 443,254.32 452,772.00
RETAIL INVENTORIES 197,254.32 138,921.00
OTHER CURRENT ASSETS -------------- --------------
771,558.94 689,400.00
PROPERTY AND EQUIPMENT 4,215,191.00 3,715,051.00
LESS: ACCUMULATED DEPRECIATION (1,794,732.00) (1,429,312.00)
-------------- --------------
2,420,459.00 2,285,739.00
OTHER ASSETS 27,301.00 2,635.00
-------------- --------------
TOTAL ASSETS 3,219,318.94 2,977,774.00
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE AND ACCRUED EXPENSES $ 466,450.46 $ 679,902.00
NOTES PAYABLE AND CURRENT PORTION OF
LONG-TERM DEBT 910,332.44 632,880.00
OTHER CURRENT LIABILITIES 700.00 80,439.00
-------------- --------------
1,377,482.90 1,393,221.00
============== ==============
LONG-TERM DEBT $ 165,843.00 $ 101,929.00
-------------- --------------
DEFERRED INCOME TAXES
STOCKHOLDERS' EQUITY
COMMON STOCK $ 20,508.00 $ 20,508.00
ADDITIONAL PAID-IN CAPITAL $ 2,448,268.00 $ 2,448,268.00
UNEARNED COMPENSATION $ (6,208.00)
RETAINED EARNINGS $ (804,288.82) $ (986,152.00)
REVALUATION CAPITAL $ 17,713.86 0
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,219,318.00 $ 2,977,774.00
============== ==============
See Notes to Condensed Consolidated Financial Statements.
Note: The Balance Sheet at December 31, 1996 has been derived from Audited
Financial Statements at that date.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED MARCH 31,
1997 1996
----------- -----------
Revenues $ 1,578,569 $ 1,802,606
Cost of Goods Sold 767,787 885,876
----------- -----------
Gross Profit 809,197 916,730
General and Administrative Expenses 630,219 855,105
Depreciation 133,714 143,677
Interest Expense 19,858 19,968
----------- -----------
(Loss) Before Income Taxes 25,406 (102,020)
Income Taxes 0 0
----------- -----------
Net (Loss) 25,406 (102,020)
=========== ===========
Net (Loss) Per Share $ 0.01 $0.01
=========== ===========
Weighted Average Shares Outstanding 20,730,590 20,230,590
=========== ===========
See Notes to Condensed Consolidated Financial Statements.
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ENTERTAINMENT TECHNOLOGIES & PRODUCTION, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31,
1997 1996
----------- -----------
Cash From Operations $ 167,201 $ 23,344
Investing Activities
Purchase of property and equipment (100,652) (362,530)
Other 0 3,344
----------- -----------
100,652 (359,699)
Financing Activities
Borrowing and repayment of debt 220,602 359,699
Issuance of additional common stock 0
----------- -----------
220,602 359,699
Increase In Cash 287,151 23,827
=========== ===========
See Notes To Condensed Consolidated Financial Statements
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1997
NOTE 1. - BASIS OF PRESENTATION
THE ACCOMPANYING UNAUDITED CONDENSED FINANCIAL STATEMENTS HAVE BEEN
PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR INTERIM
FINANCIAL INFORMATION AND WITH THE INSTRUCTIONS TO FORM 10Q AND ITEM 10 OF
REGULATION S-B. ACCORDINGLY, THEY DO NOT INCLUDE ALL OF THE INFORMATION FOR
FOOTNOTES REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR COMPLETE
FINANCIAL STATEMENTS. IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS (CONSISTING
OF NORMAL RECURRING ACCRUALS) CONSIDERED NECESSARY FOR A FAIR PRESENTATION HAVE
BEEN INCLUDED. OPERATING RESULTS FOR THE THREE MONTH PERIOD ENDED MARCH 31,
1997 ARE NOT NECESSARILY INDICATIVE OF THE RESULTS THAT MAY BE EXPECTED FOR THE
YEAR ENDED DECEMBER 31, 1997.
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ENTERTAINMENT TECHNOLOGIES & PROGRAMS, INC.
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
Three months Ended March 31,1997 compared to Three Months Ended March 31,1996.
Revenues for the first quarter of 1996 decreased by $224,137 over the
comparable period for 1996. This decrease was due to decreases in NiteLife Inc.
of $165,323, Just Games of $11,037 and Performance Sound and Light, Inc. of
$61,087. The decrease was partially offset by a new acquisition, Redfish Island
Management, Inc.'s revenues of $13,409.
Gross Profit for the first quarter of 1997 increased $127,426 over the first
quarter of 1996 primarily due to cost cutting at all levels.
General and administrative expenses decreased $224,886 over the same period in
1996. This decrease is due to conscious attrition.
Depreciation expense for the first quarter of 1997 decreased $ 9,963 over the
comparable period in 1996.
Interest expense decrease $110 during the first quarter of 1997 from the same
period in 1996 due to lower short-term borrowings with the associated higher
interest costs.
As a result of the above, there was a net profit for the first quarter 1997.
It was $25,406 compared to the first quarter of 1996.
LIQUIDITY AND CAPITAL RESOURCES
Due to cut backs and cost cutting measurers in 1997 the Company anticipates a
working capital surplus. The Company will continue additional short-term
borrowings and increased portion of long-term debt. Capital expenditure
requirements for the remainder of the year will require the Company to seek
additional financing. The Company is currently exploring various opportunities
for outside financing although there can be no assurances that these efforts
will be successful.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
ON MAY 17, 1996, SUIT WAS FILED IN THE SUPERIOR COURT OF CALIFORNIA
AGAINST THE COMPANY, CERTAIN OFFICERS AND FORMER EMPLOYEES OF THE
COMPANY BY THE FORMER OWNER OF ONE OF THE COMPANY'S WHOLLY-OWNED
SUBSIDIARIES. THE SUIT ALLEGES BREACH OF CONTRACT AND NON-PAYMENT OF
AMOUNTS OWED RELATED TO THE ACQUISITION OF THE SUBSIDIARY. IN THE
OPINION OF THE COMPANY'S COUNSEL, THE SUIT IS WITHOUT MERIT AND THE
COMPANY INTENDS TO DEFEND ITSELF VIGOROUSLY.
ITEM 2. CHANGES IN SECURITIES.
NONE; NOT APPLICABLE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
NONE; NOT APPLICABLE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
NONE; NOT APPLICABLE
ITEM 5. OTHER INFORMATION
NONE; NOT APPLICABLE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS;
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
(B) REPORTS ON FORM 8-K
NONE
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SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1939, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
ENTERTAINMENT TECHNOLOGIES &
PROGRAMS, INC.
DATE: MAY 14, 1997 BY: JAMES D. BUTCHER/S/
_______________ ________________________________
JAMES D. BUTCHER, CHAIRMAN & CEO
DATE: MAY 14, 1997 BY: V. J. FARMER/S/
_______________ ________________________________
V. J. FARMER, CONTROLLER
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<TABLE> <S> <C>
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<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MARCH 31,
1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 17,256
<SECURITIES> 0
<RECEIVABLES> 443,254
<ALLOWANCES> 0
<INVENTORY> 197,254
<CURRENT-ASSETS> 771,559
<PP&E> 4,215,191
<DEPRECIATION> (1,794,732)
<TOTAL-ASSETS> 3,219,319
<CURRENT-LIABILITIES> 1,377,483
<BONDS> 0
0
0
<COMMON> 20,508
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<TOTAL-LIABILITY-AND-EQUITY> 3,219,318
<SALES> 1,578,569
<TOTAL-REVENUES> 1,578,569
<CGS> 767,787
<TOTAL-COSTS> 767,787
<OTHER-EXPENSES> 763,933
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 19,858
<INCOME-PRETAX> 25,406
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<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<NET-INCOME> 25,406
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
