American Vantage Companies Reports First Quarter Results.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Vantage Companies (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AVCS AVCS Advanced Vehicle Control System AVCS Advanced Vidicon Camera System AVCS Automatic Vehicle Control Systems AVCS Active Vibration Control System AVCS Attitude and Velocity Control Subsystem AVCS Air Vehicle Control System AVCS Active Valve Control System ) today announced the results of its operations for the three months ended March 31, 2005 and related subsequent events. The Company's net income totaled $1,877,000 for the three months ended March 31, 2005 compared to $1,223,000 for the three months ended March 31, 2004. The Company's reported net income, for both periods, includes results from continuing and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . As previously disclosed, on March 21, 2005, the Company sold all the stock of American Vantage Media Corporation ("AVMC AVMC Aquatic Veterinary Medicine Committee (American Veterinary Medical Association) "), a wholly-owned subsidiary, to Genius Products Genius Products (also known as Genius Entertainment) is a home video company based in Santa Monica, California. On December 5, 2005, Genius Products, Inc. announced a distribution joint venture with The Weinstein Company called Genius Products, LLC,[1], and , Inc. ("Genius genius, in Roman religion, guardian spirit of a man, a family, or a state. In some instances, a place, a city, or an institution had its genius. As the guardian spirit of an individual, the genius (corresponding to the Greek demon) was largely the force of one's " or "GNPI GNPI Gross Net Premium Income "). Consideration received by the Company included 7.0 million shares of GNPI common stock and five-year warrants to purchase an additional 1.4 million shares of GNPI common stock, half at an exercise price of $2.56 per share and half at an exercise price of $2.78 per share. Related to the sale, the Company recognized a gain on the disposal of the subsidiary of $6,218,000. The gain was offset by a loss from these discontinued operations of $1,990,000 and an income tax provision of $1,558,000. For the three months ended March 31, 2004, the Company recognized a loss from discontinued operations of $812,000, and a tax benefit of $276,000. Net income for the three-month period ended March 31, 2004, was primarily generated from the sale of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40 acres of undeveloped land that resulted in a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain to the Company of $3,423,000. Effective June June: see month. 1, 2005, the Company placed 2,000,000 shares of the Genius common stock and 180,000 warrants to purchase shares of Genius common stock, at an exercise price of $2.56 per share, for gross proceeds of $3,500,000. Effective June 8, 2005, the Company placed another 500,000 shares and 45,000 Genius warrants under similar terms as the previous placement. Related to these placements of the Genius stock, the Company surrendered to Genius for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. 225,000 warrants to purchase shares of Genius common stock, at an exercise price of $2.56 per share. For the three months ended March 31, 2005, the Company's revenues from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the totaled $169,000, as compared to $197,000 for the comparable 2004 period. For the three months ended March 31, 2005, the Company's net loss from continuing operations and net loss per share from continuing operations for basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares totaled $(793,000) and $(0.14), respectively. Including the pre-tax gain of $3,423,000, on the sale of the land, the comparable 2004 net income from continuing operations and net income per share from continuing operations for basic and diluted shares totaled $1,759,000 and $0.31, respectively. The results from continuing operations, for both periods, reflect the operations from the Film and TV Production segment. On March 21, 2005, the Company and GNPI entered into an agreement pursuant to which Genius transferred to the Company certain assets, liabilities and operations previously operated through the Company's wholly-owned subsidiary, American Vantage/Hypnotic, Inc. ("Hypnotic hypnotic /hyp·not·ic/ (hip-not´ik) 1. inducing sleep. 2. an agent that induces sleep. 3. pertaining to or of the nature of hypnosis or hypnotism. "). The assets transferred to the Company include operations previously reported by the Company as its Film and TV Production segment, including co-executive producer fees generated from the television series "The O.C." The assets transferred to the Company exclude Hypnotic's 'back-end' interest in "The O.C." The Company has also retained its 49% interest in the Las Vegas Border Grill Grill may refer to: In food:
n. 1. Gambling by means of interactive games of chance played on a video screen. 2. The playing of video games. exhibition industry, a legal claim against the Table Mountain Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic , and various other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. , including prepaid expenses Prepaid Expense An asset that arises on a balance sheet because of the payment of something in advance (prepayment). Services for the payment will be received in the near future. , furniture and equipment, and a deferred income tax benefit. The equity income from the Border Grill Restaurant and cash distributions, for and during the three months ended March 31, 2005, totaled $161,000 and $135,000, respectively, as compared to $206,000 and $250,000, respectively, for the 2004 period. Ronald J. Tassinari, President and Chief Executive Officer commented, "The sale of American Vantage Media Corporation to Genius concludes a difficult period for American Vantage Companies. This disposition of the media and entertainment assets and operations resulted in the elimination of the costs, expenses and overhead burden associated with those operations and supporting infrastructure, as well as $6.3 million of related debt. For now, the retained Hypnotic division will serve as the Company's operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. and our interest in the Border Grill restaurant will continue to provide an income stream to the Company. We continue to complete the sale transition process and work with our Board of Directors in considering new acquisition and merger prospects." The Company is pursuing potential acquisition and merger transactions, which are in various stages of discussion. However, no assurance can be given that the Company will successfully acquire other businesses or, if acquired, such businesses will prove to be profitable. Certain statements in this press release are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. Such statements and all phases of American Vantage Companies' operations are subject to known and unknown risks, uncertainties and other factors, including overall economic conditions and other factors and uncertainties as are identified in American Vantage Companies' Form 10-KSB for the year ended December December: see month. 31, 2004 and Form 10-QSB for the three months ended March 31, 2005. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . American Vantage Companies' actual results, levels of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The Company undertakes no obligation to update the forward-looking statements in this press release.
CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS
Three Three
Months Months
Ended Ended
March 31, March 31,
2005 2004
------------ -----------
Revenues, net $169,000 $197,000
============ ===========
Gross profit $89,000 $92,000
============ ===========
Selling, general and administrative $994,000 $1,062,000
============ ===========
Operating loss $(905,000) $(970,000)
============ ===========
Gain on sale of land $- $3,423,000
============ ===========
Equity in income of unconsolidated investees,
net $139,000 $206,000
============ ===========
Gain (loss) from discontinued operations:
Gain (loss) from discontinued operations
(including gain on disposal of
$6,218,000 in 2005) $4,228,000 $(812,000)
============ ===========
Income tax (provision) benefit $(1,558,000) $276,000
============ ===========
Net income $1,877,000 $1,223,000
============ ===========
Net (loss) income per common share -- basic
and diluted:
Continuing operations $(0.14) $0.31
Discontinued operations 0.47 (0.10)
------------ -----------
$0.33 $0.21
============ ===========
Weighted average number of common shares and
common share equivalents 5,729,000 5,697,000
============ ===========
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS
March December
31, 2005 31, 2004
------------ ------------
Cash and cash equivalents and restricted
certificate of deposit $2,891,000 $4,444,000
============ ============
Equity securities, available for sale, at
fair value, net of long-term $12,635,000 $-
============ ============
Investment in derivative securities $1,449,000 $-
============ ============
Accounts receivable, net $220,000 $4,959,000
============ ============
Film inventory, net $- $8,218,000
============ ============
Capitalized film costs, net $- $3,362,000
============ ============
Equity securities, available for sale, at
fair value, long-term $665,000
============ ============
Total assets $20,209,000 $30,170,000
============ ============
Current liabilities $5,952,000 $12,378,000
============ ============
Notes payable - long-term $523,000 $4,523,000
============ ============
Total stockholders' equity $13,591,000 $13,269,000
============ ============
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