CAPITOL MULTIMEDIA, INC. REPORTS FOUR CONSECUTIVE PROFITABLE QUARTERS AND RECORD ANNUAL EARNINGS.BETHESDA, Md.--(BUSINESS WIRE)--May 23, 1996--Capitol Multimedia, Inc. (Nasdaq: CDIM CDIM Clerkship Directors in Internal Medicine CDIM Context-Driven Information Model CDIM Change Delivery & Implementation Manager CDIM Conditioned Di-Phase Modem , CDIMW), today reported record earnings of approximately $3.0 million or $0.58 per share on revenues of $4.3 million for the year ended March 31, 1996. That compares to a net loss of approximately ($4.3 million) or ($0.77) per share on revenues of $4.2 million for the year ended March 31, 1995. Weighted average number of shares decreased during the year from 5,636,128 to 5,235,483. Approximately $2.5 million, or $0.49 per share, of the Company's March 31, 1996 net income related to its August 1995 sale of certain CD-i professional assets. The Company acquired 825,088 shares of its own common stock in connection with that transaction. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, which excludes all CD-i professional activities, the Company posted earnings (losses) of approximately $690,000 and ($4.1 million) or $0.14 and ($.86) per share for the years ended March 31, 1996 and 1995. Revenues on a pro forma basis were $4.0 million and $2.6 million in 1996 and 1995, respectively. Robert I. Bogin, CDIM president and chief executive officer, said, "We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that the hard work of the past year has resulted in such a turnaround from the prior year's results. We believe the Company's strategy of creating and producing the highest quality interactive titles and licensing the CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). rights to the industry's leading publishers and distributors is a winning one for Capitol. We are optimistic that this strategy will result in continued success in the year and years ahead." In 1995, the Company created the first three titles in the Grandpa Tales(TM) series of international folk tales-- Baba Yaga and the Magic Geese(TM), a Russian folk tale; Imo and the King(TM), an African folk tale; and The Little Samurai(TM), a Japanese folk tale. Three additional titles in this series are currently in production and are scheduled for release during the Company's September 30, 1996 quarter. The PC and Macintosh CD-ROM rights to these six titles have been licensed to Davidson & Associates, Inc. (Nasdaq: DAVD) and are being published under Davidson's Magic Tales(TM) label. The Company recently created and produced the first titles in its new Kidventures(TM) line of animated adventure stories. The two products, Gregory and The Hot Air Balloon This article is about hot air balloons themselves. For the associated activity, see Hot air ballooning. The hot air balloon is the oldest successful human-carrying flight technology, dating back to its invention by the Montgolfier brothers in Annonay, (TM) and Darby the Dragon(TM) are also scheduled for release during the September 30, 1996 quarter. The PC and Macintosh CD-ROM rights to these two titles have been licensed to Broderbund Software, Inc. (Nasdaq: BROD BROD Big Bike Riders of Dagupan (Motorcycle Club in the Philippines) ). Capitol Multimedia, Inc. is a leading creator and producer of original childrens CD-ROM animated interactive products. The Company currently employs approximately 170 people with offices in Bethesda, Maryland; Concord, Massachusetts; and St. Petersburg, Russia. Capitol Multimedia, Inc. Financial Highlights Pro Forma(TM) Year Ended March 31 Year Ended March 31 1996 1995 1996 1995 ----- (unaudited)----- Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight 4,349,980 4,218,402 3,968,235 2,647,925 Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) 133,765 (4,752,474) 411,611 (4,548,254) Gain on sale of assets 2,539,820 47,234 - 47,234 Net Income (loss) 2,976,536 (4,349,369) 689,772 (4,143,795) Net Income (loss) per share .58 (.77) .14 (.86) Weighted average number of shares outstanding 5,235,483 5,636,128 4,821,919 4,811,040 March 31 March 31 1996 1995 Cash and short term investments 4,324,368 3,464,950 Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 5,502,115 4,899,106 Total assets 7,145,485 7,088,368 Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 239,179 1,183,351 Total liabilities 336,294 1,263,711 Shareholder's equity 6,809,191 5,824,657 (TM) Excluding Professional CD-i Operations -0- Capitol Multimedia, Inc. Consolidated Balance Sheets March 31 1996 1995 Assets Current assets: Cash and cash equivalents $ 1,961,393 $ 1,685,540 Short term investments 2,362,975 1,779,410 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , less allowance for doubtful accounts Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. of $12,500 and $97,000 at March 31, 1996 and 1995 503,306 926,568 Notes and guaranteed royalties receivable 500,000 300,000 Prepaid expenses and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 174,441 207,588 Total current assets 5,502,115 4,899,106 Property and equipment: Technical equipment 1,070,337 1,119,199 Furniture and fixtures 44,163 51,615 Other equipment 94,176 87,624 1,208,676 1,258,438 Less: accumulated depreciation accumulated depreciation The total amount of depreciation that has been recorded for an asset since its date of acquisition. For example, a computer with a 5-year estimated life that was purchased for $2,000 would have accumulated depreciation of $800 [( (841,861) (784,147) 366,815 474,291 Notes and guaranteed royalties receivable 1,244,074 920,446 Capitalized software costs, net of accumulated amortization of $2,821,000 at March 31, 1995 - 161,511 Goodwill, net of accumulated amortization of $213,000 at March 31,1995 - 601,435 Other long term assets 32,481 31,579 Total assets $ 7,145,485 $ 7,088,368 Liabilities and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. Current liabilities: Accounts payable and accrued liabilities $ 173,019 $ 821,965 Unearned revenue Unearned Revenue When an individual or company receives money for a service or product that has yet to be fulfilled. Notes: For example, prepayment on a lease contract - the revenue is a liability until it has been earned. See also: Earned Income, Passive Income and deferred rent 66,160 361,386 Total current liabilities 239,179 1,183,351 Other long term liabilities 97,115 80,360 Total liabilities 336,294 1,263,711 Commitments - - Shareholders' equity: Common stock, $.10 par value; 10,000,000 shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. , 5,657,153 and 5,636,537 shares issued and outstanding at March 31, 1996 and 1995 565,715 563,654 Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 15,817,202 15,760,921 Accumulated deficit (7,523,382) (10,499,918) 8,859,535 5,824,657 Less treasury stock, at cost, 825,088 shares at March 31, 1996 (2,050,344) - Total shareholders' equity 6,809,191 5,824,657 Total liabilities and shareholders' equity $7,145,485 $7,088,368 -0- Capitol Multimedia, Inc. Consolidated Statements of Operations Year ended March 31 1996 1995 Net sales $ 4,349,980 $ 4,218,402 Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. : Research and development 2,368,511 3,479,064 Amortization of capitalized software - 2,615,708 Depreciation and amortization 334,598 209,154 General and administrative 1,513,106 2,666,950 Total operating expenses 4,216,215 8,970,876 Operating income (loss) 133,765 (4,752,474) Other income: Interest and other income, net 363,695 355,871 Gain on sale of assets 2,539,820 47,234 Income (loss) before income taxes 3,037,280 (4,349,369) Income taxes 60,744 - Net income (loss) $ 2,976,536 $(4,349,369) Net income (loss) per share $ .58 $ (.77) Weighted average number of shares outstanding 5,235,483 5,636,128 Capitol Multimedia, Inc. Pro Forma Statements of Operations (Excluding Professional CD-i Operations) Year ended March 31 1996 1995 (unaudited) Software Development Revenue $ 2,332,463 $ 1,179,313 Consumer Software Sales & Royalties 1,403,156 382,852 Licensing & Distribution Fees 232,616 1,085,760 Total net sales 3,968,235 2,647,925 Operating expenses: Research and development 2,030,802 2,362,176 Amortization of capitalized software - 2,615,708 Depreciation 131,871 114,545 General and administrative 1,393,951 2,103,750 Total operating expenses 3,556,624 7,196,179 Operating income (loss) 411,611 (4,548,254) Other income: Interest and other income, net 293,923 357,225 Gain on sale of assets - 47,234 Income (loss) before income taxes 705,534 (4,143,795) Income taxes 15,762 - Net income (loss) $ 689,772 $(4,143,795) Net income (loss) per share $ .14 $ (.86) Weighted average shares outstanding 4,821,919 4,811,040 CONTACT: John Donovan, Investor Relations (301) 907-7000 ext. 808 E-mail: donovan@capitol.com |
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