| United Film Distributors, Inc. | |||
| Proposed Ticker: | HITS | 1990 Westwood Blvd., Penthouse | |
| Exchange: | Over-the-Counter Market | Los Angeles, CA 90025 | |
| Industry: | Service (SIC Code 7812) | (310) 441-0900 | |
| # of Employees: | 11 | ||
| Type of Shares: | Common Shares | Filing Date: | 6/12/97 | |
| U.S. Shares Filed: | 800,000 | Filing Price: | $5.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $4,000,000 | |
| Primary Shares: | 800,000 | Expenses: | $927,000 | |
| Secondary Shares: | 0 | Shares Out After: | 3,800,000 |
| Manager | Tier | Phone |
| Millennium Securities Corp. | Lead Manager |
| Issuer's Law Firm: | Richman, Lawrence, Mann, Greene & Chizever |
| Bank's Law Firm: | Beckman & Millman, P.C. |
| Auditor: | Moore Stephens, P.C. |
| Registrar/Transfer Agent: | ChaseMellon Shareholder Services, L.L.C. |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 7/31/96 | 1/31/97 | 1/31/96 | 1/31/97 | ||
| Revenue: | $2.63 | $4.03 | $0.00 | Assets: | $7.43 |
| Net Income: | $0.07 | -$0.07 | -$0.21 | Curr Assets: | |
| EPS: | $0.03 | -$0.02 | -$0.14 | Liabilities: | $5.40 |
| Prior EPS: | -$0.03 | $3.17 | $0.34 | Curr Liabilities: | |
| Cash Flow/Oper: | $2.19 | -$2.16 | $6.41 | Equity: | $2.04 |
| Cash Flow/Fin: | $8.16 | -$0.71 | -$3.67 | Cash: | $0.30 |
| Cash Flow/Inv: | -$10.81 | -$0.71 | |||
| Business Description |
| The company is engaged in the acquisition, development, financing, production, distribution and licensing of motion pictures for exhibition in domestic and international theatrical markets and for subsequent worldwide release in different media. The company was incoprorated in Delaware in May 1995. Harry Shuster, the company's Chairman, has produced or co-produced 20 movies during the past 25 years. Brian Shuster, President and Chief Executive Officer of the company, has been involved in various aspects of film production for approximately 15 movies during the past eight years. During the company's first two years of operations, the company has completed production of eight films, consisting of The Secret Agent Club, Prey of the Jaguar, Blood Money, The Elevator, Firestorm, Chase Morran, Santa with Muscles, and Skeletons. In addition, the company is currently in pre-production of several films, one of which is Rear View Mirror, which should be completed in August 1997 and released in the calendar 1998. The company intends to continue production of low-budget feature length motion pictures as its principal business focus. |
| Competition |
| Motion picture production and distribution are highly competitive. The competition comes from both companies within the same business and companies in other entertainment media which create alternative forms of leisure entertainment. The company's competition for the acquisition of literary properties, the services of performing artists, directors, producers and other creative and technical personnel and production financing includes several "major" film studios including, but not limited to, The Walt Disny Company, Paramount Pictures Corporation, MCA,, Columbia Pictures, Tri-Star Pictures, Twentieth Century Fox, Warner Brothers Inc. and MGM/UA, which are dominant in the motion picture industry, as well as numerous independent motion picture and television production companies, television networks and pay television systems. Many of these organizations with which the company competes have significantly greater financial and other resources than does the company. In addition, the company's films compete for audience acceptance and exhibition outlets with motion pictures produced and distributed by other companies, including motion pictures distributed by CFE, HBO and the company's foreign distributores. As a result, the seccuess of any of the company's films is dependent not only on the quality and acceptance of that particular film, but also on the quality and acceptance of other films. |
| Business Plan |
| The company's strategy is to (I) develop long-term relationships with talent who have demonstrated the ability to attract widespread audience interest, both domestically and in significant international markets, (ii) seek to limit the financial risk to the company inherent in any one motion picture project while preserving potential returns through the strategic use of long-term distribution agreement with companies such as HBO covering the Untied States and Canada, and their respective territories, possessions, and protectorates as well as such foreign distributors such as Highlight Communications, Saehan/Hollyvision/Digital Media, Consorcio Europa Serviano Ribiero, Manga Films and Italian International Films, and (iii) exercise strong management control of production costs of its motion pictures, as well as of general overhead. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for repaying indebtedness which is owed to the founders of the company, and working capital, including but not limited to motion picture development and production and general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Stephen J. Drescher | 25.00% | 19.70% |
| Nadine Belfort | 25.00% | 19.70% |
| Brian Shuster | 25.00% | 19.70% |
| Stanley Shuster | 16.70% | 13.20% |
| Harry Shuster | 16.70% | 13.20% |
| Officer Name | Title | Age |
| Harry Shuster | Chairman | 60 |
| David M. Kane | Chief Financial Officer and Secretary | 34 |
| Brian Shuster | President, Chief Executive Officer, Director | 39 |