Seven Arts Entertainment Announces E-P-S .77
Primary Earnings per Share of $.77 for Fiscal Year Ended June 30, 2011
Seven Arts Entertainment, Inc. (MM) (NASDAQ:SAPX)
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3 Months : October 2011 to January 2012
Seven Arts Entertainment Inc. (NASDAQ: SAPX) ("Seven Arts" or the "Company") announced today the results of operations of its NASDAQ listing predecessor, Seven Arts Pictures plc ("PLC"), for the fiscal year ended June 30, 2011. PLC reported revenue of $3,328,000 and net income of $1,462,000, representing $0.77 of basic and diluted earnings per share.
These results compare to the results of operations for the fiscal year ended June 30, 2010, in which PLC reported revenue of $6,417,000 and a net loss of $476,000, which was a result of profit before interest and taxes plus other income from debt settlement, offset by net interest expense of approximately $1,706,000.
In the reported fiscal year, PLC recognized net cancellation of indebtedness revenue of $4,459,000 reflecting its continued efforts to reduce indebtedness and increase net shareholder equity. As reported in prior fiscal years, such cancellation of indebtedness income reflects adjustments to debtors' claims on future film revenues and in management's view represents continuing revenue and profits from core operations.
Peter Hoffman, Chief Executive Officer of Seven Arts, stated, "We are pleased our listing predecessor achieved net income of $1,462,000 and basic and diluted earnings per share of $0.77 in the last fiscal year. We are particularly pleased with the increases in our net shareholders' equity from $2,200,000 as of June 30, 2010 to $7,958,000 as of June 30, 2011. This increase does not reflect the further, substantial reduction of debt and increase in net stockholders equity since the end of the fiscal year, as set forth in our letter to stockholders to be released this week.
"The independent film industry has experienced many challenges in the last fiscal year, which led to changes in our expected revenue model. Seven Arts reduced production during the fiscal year ended June 30, 2011 as it completed new sources of financing. We currently believe that Seven Arts is poised for success in the current fiscal year and beyond.
"PLC successfully completed the transfer of NASDAQ listing to the Company effective August 31, 2011. The Company is now a fully reporting United States issuer and will in the future report its results of operation under United States Generally Accepted Accounting Principles ("US GAAP"). Application of US GAAP to our listing predecessor's reported results of operation will not result in any material changes to PLC's reported results of operation under International Financial Reporting Standards. We expect Seven Arts' first quarterly report will be for the fiscal quarter ended September 30, 2011."
