-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JHczXVskv44Vyvlymdz2XHd/LR3dJXMq8kN6TYU0y9+7b+qJZfXs4Y0SmKqUiX8x 6G9hjmyCOLg1lx32EzHyKQ== 0000898430-99-003104.txt : 19990806 0000898430-99-003104.hdr.sgml : 19990806 ACCESSION NUMBER: 0000898430-99-003104 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990805 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEACE ARCH ENTERTAINMENT GROUP INC CENTRAL INDEX KEY: 0001038367 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MOTION PICTURE & VIDEO TAPE DISTRIBUTION [7822] IRS NUMBER: 000000000 STATE OF INCORPORATION: A1 FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-15131 FILM NUMBER: 99678830 BUSINESS ADDRESS: STREET 1: 1132 HAMILTON ST NUMBER 302 STREET 2: VANCOUVER BRITISH COLUMBIA CITY: CANADA V6B 2S2 STATE: A1 ZIP: 00000 BUSINESS PHONE: 6046819308 MAIL ADDRESS: STREET 1: 1132 HAMILTON ST NUMBER 302 STREET 2: VANCOUVER BRITISH COLUMBIA CITY: CANADA V6B 2S2 STATE: A1 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: VIDATRON ENTERTAINMENT GROUP INC DATE OF NAME CHANGE: 19970428 6-K 1 FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C., 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 1999 Peace Arch Entertainment Group Inc. - -------------------------------------------------------------------------------- (Translation of registrant's name into English) Third Floor, 1132 Hamilton Street Vancouver, B.C., V6B 2S2 - -------------------------------------------------------------------------------- (Address of principal executive office) [Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F X Form 40-F ] ----- ----- [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X ----- ----- [If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2 (b): 82-____________.] [Logo of Peace Arch Entertainment Group Inc.] (formerly Vidatron Entertainment Group Inc.) Third Quarter Report For the Nine Months Ended May 31, 1999 and 1998 Peace Arch Entertainment Group Inc. (formerly Vidatron Entertainment Group Inc.) Consolidated Balance Sheet As at May 31, 1999 and 1998 (Unaudited) (in accordance with Generally Accepted Accounting Principals in Canada) (in thousands of Canadian dollars)
- ----------------------------------------------------------------------------------------------------------------- 1999 1998 - ----------------------------------------------------------------------------------------------------------------- ASSETS Cash and cash equivalents $ 1,559 $ 3,348 Marketable securities 105 - Accounts receivable 2,398 1,438 Tax credits receivable 14,110 3,886 Production costs in progress 6,710 10,300 Prepaid expenses 183 354 Investments in television programming 7,985 3,163 Property and equipment 9,572 9,553 Deferred costs 440 148 Deferred income tax 38 - Goodwill 2,447 576 - ----------------------------------------------------------------------------------------------------------------- $ 45,547 $ 32,766 ================================================================================================================= LIABILITIES AND SHAREHOLDERS' EQUITY Bank indebtedness $ 8,070 $ 1,904 Accounts payable and accrued liabilities 6,693 1,881 Deferred revenue 4,032 8,802 Due to shareholders - 208 Long-term debt, including current portion 7,009 7,446 - ----------------------------------------------------------------------------------------------------------------- 25,804 20,241 SHARE CAPITAL 26,644 22,300 OTHER PAID-IN CAPITAL 136 - DEFICIT (7,037) (9,775) - ----------------------------------------------------------------------------------------------------------------- 19,743 12,525 - ----------------------------------------------------------------------------------------------------------------- $ 45,547 $ 32,766 =================================================================================================================
"TIMOTHY GAMBLE" "W.D. CAMERON WHITE" - --------------------------------- ------------------------------------- DIRECTOR DIRECTOR
Peace Arch Entertainment Group Inc. (formerly Vidatron Entertainment Group Inc.) Consolidated Statement of Operations and Deficit For the Nine Months Ended May 31, 1999 and 1998 (Unaudited) (in accordance with Generally Accepted Accounting Principals in Canada) (in thousands of Canadian dollars, except earnings per share)
- ------------------------------------------------------------------------------------------------------------------- Three Months Ended Nine Months Ended 1999 1998 1999 1998 - ------------------------------------------------------------------------------------------------------------------- Revenue $ 8,729 $ 1,254 $ 38,981 $ 17,487 Expenses Amortization of film and television programs 5,592 106 30,998 12,567 Other costs of production and sales 325 664 1,833 2,530 Amortization other 147 111 352 235 Selling, general and administration 668 585 1,998 1,508 Interest 403 188 892 392 Foreign exchange (gain) loss 730 (139) 390 (173) - ------------------------------------------------------------------------------------------------------------------- 7,865 1,515 36,463 17,059 - ------------------------------------------------------------------------------------------------------------------- Earnings from operations before taxes 864 (261) 2,518 428 Income taxes 466 - 1,111 - - ------------------------------------------------------------------------------------------------------------------- Net earnings for the period $ 398 $ (261) $ 1,407 $ 428 =================================================================================================================== Net earnings per common share $ 0.13 $ (0.10) $ 0.46 $ 0.17 =================================================================================================================== Weighted average number of shares outstanding during the period (000's) 3,026 2,504 3,026 2,500
Peace Arch Entertainment Group Inc. (formerly Vidatron Entertainment Group Inc.) Consolidated Statement of Cash Flows For the Nine Months Ended May 31, 1999 and 1998 (Unaudited) (in accordance with Generally Accepted Accounting Principals in Canada) (in thousands of dollars)
- ---------------------------------------------------------------------------------------------------- Three Months Ended Nine Months Ended 1999 1998 1999 1998 - ---------------------------------------------------------------------------------------------------- Cash flows provided by (used for): Cash flows from operating activities: Net earnings (loss) $ 399 $ (261) $ 1,407 $ 428 Items not involving cash: Amortization 5,739 341 31,350 12,802 Income taxes 139 - 428 - Long term debt discount 87 - 87 - - ---------------------------------------------------------------------------------------------------- 6,364 80 33,272 13,230 Changes in non-cash operating working capital 1,768 (113) (4,268) (1,691) - ---------------------------------------------------------------------------------------------------- Cash flows provided by (used for) operating activities 8,132 (33) 29,004 11,539 - ---------------------------------------------------------------------------------------------------- Cash flows from investing activities: Investments in marketable securities (105) - (105) - Investments in film productions (4,043) (407) (33,350) (13,673) Decrease (increase) in deferred costs (296) 91 (393) 56 Property and equipment acquired (105) (329) (246) (600) - ---------------------------------------------------------------------------------------------------- Total cash used for investing activities (4,549) (645) (34,094) (14,217) - ---------------------------------------------------------------------------------------------------- Cash flows from financing activities: Issue of common shares - 2,974 - 2,976 Increase (repayments) in due to - (318) (386) 186 directors Increase (repayments) in bank (1,286) 564 5,421 959 indebtedness Increase in long-term debt - 500 1,200 1,774 Repayment of long-term debt (1,182) (71) (1,462) (1,613) - ---------------------------------------------------------------------------------------------------- Cash flows provided by (used for) financing (2,468) 3,649 4,773 4,282 activities - ---------------------------------------------------------------------------------------------------- Increase (decrease) in cash and cash 1,115 2,971 (317) 1,604 equivalents Cash position, beginning of period 444 377 1,876 1,744 - ---------------------------------------------------------------------------------------------------- Cash position, end of period $ 1,559 $ 3,348 $ 1,559 $ 3,348 ==================================================================================================== Supplementary information: Interest paid 403 189 892 392 Income taxes paid - - 7 - Non-cash transactions: Property acquired through increase - - - 4,100 in long-term debt
Peace Arch Entertainment Group Inc. (formerly Vidatron Entertainment Group Inc.) Notes to Consolidated Financial Statements For the Nine Months Ended May 31, 1999 and 1998 (Unaudited) - -------------------------------------------------------------------------------- Note 1. Share Capital Effective July 14, 1999, the Company consolidated its common shares on a basis of one Class A Multiple Voting Share and one Class B Subordinate Voting Share for five old shares. The accompanying financial statements give retroactive effect to this change in capital structure. The following shares are issued and fully paid for and have been restated to reflect the share consolidation:
Total number of shares outstanding (000's) Class A Multiple Voting Shares 1,513 1,406 1,513 1,406 Class B Subordinate Voting Shares 1,513 1,406 1,513 1,406
Outstanding May 31, 1999 were 393,700 stock options at an average price of $10.97 per common share and 100,000 warrants exercisable at $6.25 on or before October 21, 2000. Note 2. Subsequent events Subsequent to May 31,1999 10,000 (25,000 pre-consolidation) incentive stock options were exercised at a price of $7.50 ($3.00 pre-consolidation) per common share. On July 29, 1999, the Company offered by prospectus in the U.S. shares at a price of $5.00 (U.S.) per share. A registration statement relating to these shares has been filed with the Securities and Exchange Commission and has become effective. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PEACE ARCH ENTERTAINMENT GROUP INC. ------------------------------------- (Registrant) Date August 5, 1999 By /s/ Juliet Jones ---------------------------------- Juliet Jones Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----