Seven Arts Entertainment Announces Results Of Operations For The Quarter Ended December 31, 2012
LOS ANGELES, Feb. 20, 2013 /PRNewswire/ -- Seven Arts Entertainment Inc. (OTCQB:SAPX) (the "Company" or "Seven Arts") today announced its results of operations for the quarter ended December 31, 2012. The Company recorded a gross loss of ($84,288) on total revenue of $182,797 for the quarter ended December 31, 2012 compared to a gross loss of ($412,686) on revenues of $207,790 for the quarter ended December 31, 2011. The Company's net loss increased to ($1,799,894) from ($1,099,422) principally because of two start-up businesses and an increase of interest expense to $933,939 from $328,942, primarily as interest on the loan utilized for the leasehold improvements at the Company's post production facility at 807 Esplanade Avenue in New Orleans was not included in the 2011 expense. For the six months ended December 31, 2012, gross profit increased to $197,097 from a loss of ($299,289) for the six months ended December 31, 2011. Revenues increased in the six month period ended December 31, 2012 to $1,339,835 compared to $800,331 for the comparable period in 2011, mainly due to sales of the DMX album "Undisputed."
Chief Executive Officer Peter Hoffman stated, "We had no new film releases or album releases in this quarter. We believe that revenue on new releases in the next two quarters such as Nine Miles Down and Schism, plus continuing revenue from DMX's album, 'Undisputed,' and the new release of Bone Thugs-N-Harmony's 'Art of War III' should result in significant revenue in the second six months of our fiscal year.
This quarter did not reflect the recent 2012 bookings at Esplanade Studios, our post production facility in New Orleans, which is now substantially booked through the end of the fiscal year. Seven Arts expects to make substantial reductions in funded debt this fiscal year which will lead to reduced interest expense in future periods."
Mr. Hoffman continues, "We believe Seven Arts is poised for substantial growth in this and subsequent fiscal years particularly when we are able to complete development and produce Winter Queen and Neuromancer. We appreciate the support of all our stockholders despite a difficult trading market in our shares. We expect our stock price will recover as results of operation are achieved."
| Seven Arts Entertainment, Inc. Summary Data Table
|
||||
| Three Months Ended December 31, 2012 |
Three Months Ended December 31, 2011 |
Six Months Ended December 31, 2012 |
Six Months Ended December 31, 2011 |
|
| Total Revenue |
$ 182,797 |
$ 207,790 |
$ 1,339,835 |
$ 800,331 |
| Cost of Revenue |
267,085 |
620,476 |
1,142,739 |
1,099,620 |
| Gross Profit (Loss) |
(84,288) |
(412,686) |
197,097 |
(299,289) |
| Operating Expenses |
781,667 |
357,794 |
1,451,615 |
1,036,252 |
| Income (Loss) from Operations |
(865,955) |
(770,480) |
(1,254,518) |
(1,335,541) |
| Net Interest Expense |
(933,939) |
(328,942) |
(1,902,997) |
(742,742) |
| Income (Loss) Before Taxes |
(1,799,894) |
(1,099,422) |
(3,157,515) |
(2,078,283) |
| Net loss attributable to non -controlling interests |
(89,293) |
- |
(172,097) |
- |
| Net loss attributable to Seven Arts Entertainment Inc. |
(1,710,601) |
(1,099,422) |
(3,157,515) |
(2,078,283) |
| Provision for Taxes |
- |
- |
- |
- |
| Net Income (Loss) |
$(1,710,601) |
$(1,099,422) |
$(2,985,418) |
$(2,078,283) |
| Weighted Average Common Shares Used in Earnings/(Loss) per Share Calculation: |
||||
| Basic (in 000's) |
19,378 |
225 |
10,935 |
225 |
| Diluted (in 000's) |
19,378 |
225 |
10,935 |
225 |
| Earnings/(Loss) per Share – Basic |
$ (0.09) |
$ (4.89) |
$ (0.27) |
$ (9.24) |
| Earnings/(Loss) per Share – Diluted |
$ (0.09) |
$ (4.89) |
$ (0.27) |
$ (9.24) |
|
Balance Sheet Data |
December 31, 2011 |
December 31, 2012 |
||
| Total Assets |
$34,510,645 |
$32,923,464 |
||
|
Total Loans Payable |
$14,856,084 |
$13,288,159 |
||
| Stockholder's Equity (in 000's) – attributable to Seven Arts Entertainment, Inc. |
$12,234,842 |
$13,449,284 |
||
About Seven Arts
Seven Arts Entertainment Inc.'s predecessor was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production, and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.
Cautionary Information Regarding Forward-Looking Statements: Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated.
Contact:
Seven Arts Entertainment Inc. US contact:
Peter Hoffman
+1 323-372-3080
[email protected]
SOURCE Seven Arts Entertainment Inc.
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