Company News: Page (1) of 1 - 11/22/11 Email this story to a friend. email article Print this page (Article printing at page facebook

Seven Arts Entertainment Announces Results of Operations for the Quarter Ended September 30, 2011

(November 22, 2011)

LOS ANGELES, CA -- (Marketwire) -- 11/22/11 -- Seven Arts Entertainment Inc. (the "Company" or "Seven Arts") (NASDAQ: SAPX) announced today its result of operations for the quarter ended September 30, 2011, its first quarter of its fiscal year ended June 30, 2012. The Company reported an increase in stockholder equity to $14,632,642, representing the majority of the increases in stockholder equity announced in the Company's letter to stockholders of November 3, 2011. This compares with stockholder equity at the end of the last fiscal year of $7,958,150. The Company's loans payable also reduced from $12,645,680 at the end of the last fiscal year to $7,957,466 as of September 30, 2011. The Company also announced a loss of the quarter of $983,291 on limited revenues of $592,541 compared to a loss of in the quarter ended September 30, 2010 of $747,440 on revenue of $100,305. As of today, the Company's shares outstanding increased to 15,700,000 from the 12,500,000 announced recently principally by the issuance of unregistered shares to Seven Arts Pictures plc, the Company's NASDAQ listing predecessor, which shares are not freely tradable and will not be included in the current public float.

Peter Hoffman, Chief Executive Officer of Seven Arts, stated: "We are pleased by the continuing growth in stockholder equity and reduction of loans outstanding as we recently announced. The operating loss for the quarter ended September 30, 2011 was expected and does not represent management expectations for the balance of the fiscal year. We anticipate substantial fee income and additional film revenue particularly in the second half of the fiscal year. The Company is making expected progress toward the goals set forth in our recent stockholder letter.

"In particular, we have made substantial progress in arranging the financing for our upcoming production of 'Neuromancer,' based on William Gibson's landmark novel, to be directed by Vincenzo Natali. We expect announcements soon of the attachment of major creative elements to this exciting production. We have entered into and expect shortly to close an acquisition of the music assets of David Michery, including the major recording artist DMX, to add to our acquisition of Big Jake Music, which we anticipate closing shortly. We expect major developments in our business in the balance of our fiscal year."

Seven Arts Entertainment, Inc. Summary Data Table ---------------------------------------------------------------------------- Three Months Three Months Ended Ended September 30, September 30, 2011 2010 (*) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total Revenue $ 592,541 $ 100,305 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cost of Revenue $ 479,144 $ 76,694 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Gross Profit $ 113,397 $ 23,611 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Operating Expenses $ 681,885 $ 350,479 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Income (Loss) from Operations $ (568,488) $ (326,868) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net Interest Expense $ (413,800) $ (420,654) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Income (Loss) Before Taxes $ (982,288) $ (747,522) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Provision for Taxes $ 0 $ 0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Foreign Exchange Translation Gain (Loss) $ (1,003) $ 82 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net Income (Loss) $ (983,291) $ (747,440) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Weighted Average Common Shares Used in Earnings/(Loss) per Share Calculation: ---------------------------------------------------------------------------- Basic (in 000's) 7,016 1,555 ---------------------------------------------------------------------------- Diluted (in 000's) 7,016 1,555 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings/(Loss) per Share - Basic $ (0.14) $ (0.48) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Earnings/(Loss) per Share - Diluted $ (0.14) $ (0.48) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- September 30, June 30, Balance Sheet Data 2011 2011 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total Assets (in 000's) $ 27,291 $ 27,945 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total Loans Payable (in 000's) $ 7,957 $ 12,646 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Shareholder's Equity (in 000's) $ 14,633 $ 7,958 ---------------------------------------------------------------------------- (*) Comparative data is for the predecessor entity, Seven Arts Pictures, Plc.

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.

Seven Arts Entertainment Inc. US contact:
Peter Hoffman
+1 323-372-3080
Seven Arts Entertainment Inc. UK contact:
Kate Hoffman
+44 203 006 8223

Copyright @ Marketwire

Page: 1

Related Keywords: Seven Arts Entertainment Inc., USA, Marketwire, Inc., , Film, Television, Music, Lifestyle, Business, Entertainment, Other,

Content-type: text/html  Rss  Add to Google Reader or
Homepage    Add to My AOL  Add to Excite MIX  Subscribe in
NewsGator Online 
Real-Time - what users are saying - Right Now!

Our Privacy Policy --- @ Copyright, 2015 Digital Media Online, All Rights Reserved