-----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, LLDvdh4mH2aTHlFC321wogZ/vKRRBqfsg2vIX+8RU9kHIMLj+ykiWXbvYoZC8JHP TJAwNMn2toego3QshOBu4w== 0000950123-00-004692.txt : 20000510 0000950123-00-004692.hdr.sgml : 20000510 ACCESSION NUMBER: 0000950123-00-004692 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MILLS MUSIC TRUST CENTRAL INDEX KEY: 0000066496 STANDARD INDUSTRIAL CLASSIFICATION: PATENT OWNERS & LESSORS [6794] IRS NUMBER: 136183792 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-02123 FILM NUMBER: 622646 BUSINESS ADDRESS: STREET 1: C/O JOEL FADEN & COMPANY STREET 2: 1775 BROADWAY SUITE 708 CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2122467203 MAIL ADDRESS: STREET 1: 1775 BROADWAY SUITE 708 CITY: NEW YORK STATE: NY ZIP: 10019 10-Q 1 MILLS MUSIC TRUST 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 2000 COMMISSION FILE NUMBER 2-22997 ------- MILLS MUSIC TRUST - -------------------------------------------------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) NEW YORK 13-6183792 - -------------------------------------------------------------------------------- (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) C/O HSBC BANK USA, 140 BROADWAY, NEW YORK, NY 10015 - ------------------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (212) 658-6014 ---------------- INDICATE BY CHECK-MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO --- --- NUMBER OF TRUST UNITS OUTSTANDING AS OF MARCH 3, 2000 277,712 --------- 2 Page 2 PART I - FINANCIAL STATEMENTS Item 1. Financial Information MILLS MUSIC TRUST STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED)
Three Months Ended March 31, --------------------- 2000 1999 Receipts: Mills Music, Inc. $351,767 $274,046 Undistributed cash at beginning of the period 31 39 Disbursements - administrative expenses (14,125) ( 7,336) -------- -------- Balance available for distribution 337,673 266,749 Cash distribution to unit holders 337,642 266,714 -------- -------- Undistributed cash at end of the period $ 31 $ 35 ======== ======== Cash distribution per unit (based on 277,712 units outstanding) $ 1.22 $ .96 ======== ========
See accompanying Notes to Statements of Cash Receipts and Disbursements. 3 Page 3 MILLS MUSIC TRUST NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED) NOTE 1. ACCOUNTING POLICIES AND GENERAL INFORMATION Mills Music Trust ("the Trust") was created in 1964 for the purpose of acquiring the rights to receive payments of a deferred contingent purchase price contract obligation payable by Mills Music, Inc. ("Mills"). The contingent payments are determined quarterly, and are based on a formula which takes into account gross royalty income from certain music copyrights and licenses of Mills, less royalties paid and amounts deducted by Mills in accordance with contract terms. Payments from Mills to the Trust are made in March, June, September, and December, and include net royalty income of the preceding calendar quarter. The payments received are accounted for on a cash basis, as are expenses paid. The Declaration of Trust requires the distribution of all funds received by the Trust to the Unit holders after payment of expenses. The statements of cash receipts and disbursements reflect only cash transactions and do not present transactions that would be included in financial statements presented on the accrual basis of accounting, as contemplated by generally accepted accounting principles. There is no book value per unit because cumulative distributions are in excess of the initial investment in the Trust. NOTE 2. RELATED PARTY TRANSACTIONS The Declaration of Trust provides that each trustee shall receive reimbursement for expenses reasonably incurred in the performance of his duties and annual compensation of $2,500 per year for his services as trustee, provided that such aggregate compensation to the trustees as a group may not exceed 3% of the monies received by the Trust in any year. The Declaration of Trust further provides for reimbursement to the corporate trustee for its clerical and administrative services to the Trust. Accordingly, Marine Midland Bank receives reimbursement for such services and for services performed as Registrar and Transfer Agent. The Declaration of Trust further provides that if any trustee performs unusual or extraordinary services, reasonable compensation for such services shall be paid, subject to certain 4 Page 4 MILLS MUSIC TRUST NOTES TO STATEMENTS OF CASH RECEIPTS AND DISBURSEMENTS THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (CONTINUED) (UNAUDITED) limitations and to prior confirmation by a majority in interest of Trust Certificate holders. Pursuant to these provisions, disbursements to related parties were made as follows for the three months ended March 31, 2000 and 1999. 2000 1999 ------ ----- Trustee Fees: Bernard D. Fischman $ 625 $ 625 HSBC Bank USA 625 625 HSBC Bank USA Transfer agent and registrar $5,268 0 NOTE 3. FEDERAL INCOME TAXES No provision for income taxes has been made since the liability is that of the unit holders and not the Trust. NOTE 4. ROYALTIES a)The original (1964) sale agreement assumed by the Trust's collecting/paying entity ("EMI") provides for a revised royalty calculation when the remittance to the Trust is less than $167,500 for the quarter. This occurred in the quarter ended December 31, 1999, for which the remittance was $155,717. EMI did not calculate that quarter's payment using the revised royalty calculation, and has been notified about this matter. Additional monies due to the Trust, if any, under the revised calculation would be capped at an amount that, when added to the prior distribution, would not exceed $167,500. The timing of the receipt of any additional monies due to the Trust is dependent upon EMI's ability to provide the information required under the revised royalty calculation. b)In addition, EMI made a computational error in its remittance for the fourth quarter of 1999, resulting in a $19,000 overpayment. The net effect of (a) and (b) above will reduce the Trust's revenue in a future quarter. The maximum revenue effect to the Trust ($19,000), if no additional funds are due from EMI, is .07 per unit. 5 Page 5 PART I - FINANCIAL STATEMENTS Item 2. Management's Discussion and Analysis of Results of Operations The Trust's receipts from Mills Music, Inc. are derived from copyrights established prior to 1964 and such receipts fluctuate based upon public interest in the "nostalgia" appeal of older songs. PART II - OTHER INFORMATION Items 1 through 6, inclusive, are not applicable. 6 Page 6 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, there unto duly authorized. MILLS MUSIC TRUST ----------------------------------- (Registrant) Date May 2, 2000 By: BERNARD D. FISCHMAN ----------- ----------------------- Bernard D. Fischman, Trustee Date May 2, 2000 By: MARCIA MARKOWSKI ----------- --------------------- HSBC Bank USA Corporate Trustee EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 351,767 351,767 14,125 14,125 337,642 0 0 0 0 0 0 0 0 0 0 0
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