Board authorizes stock repurchase
Impacted by the weak economy, post-production shop Laser-Pacific Media on Monday reported a third-quarter net loss of $125,000 on revenues of $6.9 million.Those numbers are a considerable drop from the same three-month period last year, ended Sept. 30, when it posted a profit of $542,000 on revenues of $7.2 million. The Los Angeles-based company said net income was $375,000, compared with $281,000 for the third quarter last year. Figure included nonrecurring revenue of $193,000 attributable to a research-and-development agreement and recognition of an income tax benefit of $400,000 relating principally to the realization of deferred tax assets. Repurchase of stock Laser-Pacific also said Monday that its board of directors has authorized the repurchase of up to $2 million of common stock in the open market or in private transactions, subject to the company’s assessment of market conditions and buying opportunities from time to time. The authorization is effective through Nov. 1, 2002, unless terminated earlier by the board. As of Sept. 30, Laser-Pacific said that it had $10.2 million in assets, including $4.8 million in cash. “The threat of industry strikes earlier in the year motivated studios and networks to stockpile movies and entertainment programming in the second quarter, which reduced movie production in the third quarter,” said chairman-CEO James Parks said. “In addition, the coverage of the Sept. 11 events delayed the beginning of the fall primetime television season and resulted in the cancellation and rescheduling of programs.” Drop in made-fors Parks added that a significant decline of made-for-television movies, and the utilization of post-production services outside of the United States for those remaining movies, also didn’t help the company’s bottom line. Based upon current industry and company trends, Laser-Pacific said that it expects a drop-off in revenues generated from movies made for TV and film services during the fourth quarter, historically its strongest period of the year. Revs from those areas are not expected to offset the softness in other services, it said. As a result, the company anticipates net income for the fourth quarter to be less robust than the same period a year ago.