-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GpKZMmdqIPFtljTFyY/SZ6rXs8iJCEY2FbdS4NoJgVXOTd8gMe46YXr+S9OLXd2j N5iboPwuwZP6Cj615Axf7w== 0000912057-97-017720.txt : 19970515 0000912057-97-017720.hdr.sgml : 19970515 ACCESSION NUMBER: 0000912057-97-017720 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970514 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHILDRENS BROADCASTING CORP CENTRAL INDEX KEY: 0000882160 STANDARD INDUSTRIAL CLASSIFICATION: RADIO BROADCASTING STATIONS [4832] IRS NUMBER: 411663712 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-21534 FILM NUMBER: 97605815 BUSINESS ADDRESS: STREET 1: 724 1ST ST N STREET 2: 4TH FLOOR CITY: MINNEAPOLIS STATE: MN ZIP: 55401 BUSINESS PHONE: 6123383300 MAIL ADDRESS: STREET 1: 724 FIRST STREET NORTH STREET 2: FOURTH FLOOR CITY: MINNEAPOLIS STATE: MN ZIP: 55401 10QSB 1 FORM 10QSB FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) [X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarterly period ended March 31, 1997 or [ ] Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition period from _________ to _________ Commission File No. 0-21534 Children's Broadcasting Corporation - ----------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Minnesota 41-1663712 - --------------------------------- --------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification Number) 724 First Street North-4th Floor, Minneapolis, MN 55401 - ----------------------------------------------------------------------------- (Address of principal executive office zip code) (612) 338-3300 - ----------------------------------------------------------------------------- Registrant's telephone number, including area code Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- As of May 9, 1997, there were outstanding 6,031,501 shares of common stock, $.02 --------- par value, of the registrant. INDEX CHILDREN'S BROADCASTING CORPORATION PART I. FINANCIAL INFORMATION - ------- --------------------- Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets -- March 31, 1997 and December 31, 1996. Consolidated Statements of Operations -- Three months ended March 31, 1997 and 1996. Consolidated Statements of Cash Flows -- Three months ended March 31, 1997 and 1996. Notes to consolidated financial statements -- March 31, 1997. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II. OTHER INFORMATION Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults upon Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CHILDREN'S BROADCASTING CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED)
MARCH 31 DECEMBER 31, 1997 1996 ----------- ---------- ASSETS Current assets: Cash and Cash Equivalents $1,902,027 $3,370,038 Accounts Receivable 1,505,516 1,589,680 Allowance For Bad Debts (112,881) (93,500) Prepaid Expenses 370,430 190,398 Trade Activity, Net 73,714 37,612 -------------- ---------------- TOTAL CURRENT ASSETS 3,738,806 5,094,228 Property & Equipment, Net 4,383,230 4,274,931 Broadcast License, Net 19,696,761 16,724,653 Intangible Assets, Net 2,743,846 2,513,539 -------------- ---------------- TOTAL ASSETS $30,562,643 $28,607,351 -------------- ---------------- -------------- ---------------- LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable $1,150,033 $1,266,492 Accrued Interest 111,866 84,146 Other Accrued Expenses 1,094,204 1,000,194 Line of Credit 246,109 164,162 Long-Term Debt - Current Portion 10,598,027 8,033,758 Obligation Under Capital Lease - Current Portion 30,172 34,705 -------------- ---------------- TOTAL CURRENT LIABILITIES 13,230,411 10,583,457 Long-Term Debt - Net of Current Portions 2,784,485 1,365,992 Obligation Under Capital Lease 64,795 70,790 -------------- ---------------- TOTAL LIABILITIES 16,079,691 12,020,239 -------------- ---------------- Shareholders' Equity: Common Stock, $.02 Par Value: Authorized shares - 50,000,000 Issued & outstanding shares - Voting: 5,842,460 1997 and 5,145,909-- 1996; Issued and Outstanding Shares - 189,041 nonvoting - 1997 and 1996 120,630 115,966 Additional Paid-In Capital 43,846,461 42,775,092 Stock Subscription Receivable (400,000) - Accumulated Deficit (29,084,139) (26,303,946) -------------- ---------------- TOTAL SHAREHOLDERS' EQUITY 14,482,952 16,587,112 -------------- ---------------- TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $30,562,643 $28,607,351 -------------- ---------------- -------------- ----------------
CHILDREN'S BROADCASTING CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED MARCH 31 1997 1996 ---------- (Restated) ----------- REVENUES Owned, Operated and LMA Stations $944,255 $858,480 Network 206,466 357,543 -------------- ---------------- REVENUES $1,150,721 $1,216,023 OPERATING EXPENSES: Owned, Operated and LMA Stations: General and Administrative 757,640 469,438 Technical and Programming 240,273 199,802 Selling 341,515 340,527 -------------- ---------------- 1,339,428 1,009,767 Network General and Administrative 150,820 225,984 Programming 206,980 218,130 Selling 454,588 212,791 Marketing 119,295 120,231 Magazine - 63,145 -------------- ---------------- 931,683 840,281 Corporate 887,244 442,177 Depreciation & Amortization 458,563 242,079 Amortization of Deferred Expenses - 289,686 -------------- ---------------- TOTAL OPERATING EXPENSES 3,616,918 2,823,990 -------------- ---------------- LOSS FROM OPERATIONS (2,466,197) (1,607,967) -------------- ---------------- Interest Expense (Net of Interest Income) 313,996 267,906 -------------- ---------------- NET LOSS ($2,780,193) ($1,875,873) -------------- ---------------- -------------- ---------------- NET LOSS PER SHARE ($0.47) ($0.51) -------------- ---------------- -------------- ---------------- WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 5,905,000 3,739,000 -------------- ---------------- -------------- ----------------
CHILDREN'S BROADCASTING CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31 1997 1996 ------------ -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss ($2,780,193) ($1,875,873) Adjustments to Reconcile Net Loss to Net Cash from Operating Activities: Depreciation & Amortization 458,563 242,079 Amortization of Deferred Expenses - 289,686 Trade Activity (36,102) (38,523) Interest Expense on Seller Note Payable 21,084 - Interest Expense on Bridge Loan Warrants - 173,112 Decrease (Increase) in: Accounts Receivable 103,545 (84,902) Other Receivables - (11,734) Prepaid Expenses (100,810) (379,265) Inventory - (3,879) Increase (Decrease) in: Accounts Payable 66,725 (36,634) Accrued Interest 27,720 (267,710) Other Accrued Expenses 94,011 (142,321) -------------- ---------------- NET CASH USED IN OPERATIONS (2,145,457) (2,135,964) -------------- ---------------- CASH FLOWS FROM INVESTING ACTIVITIES: Sale/Purchase of Property & Equipment (271,014) (84,059) Sale/Purchase of Intangible Assets (1,623,080) (621,651) -------------- ---------------- NET CASH USED IN INVESTING ACTIVITIES (1,894,094) (705,710) -------------- ---------------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of Capital Lease Obligation (10,528) (12,112) Payment of Debt (1,359,051) (4,259,030) Proceeds from Debt Financings 3,905,000 900,000 Proceeds from Convertible Preferred Stock - - Proceeds from Issuance of Common Stock 36,119 20,466,534 -------------- ---------------- NET CASH PROVIDED BY FINANCING ACTIVITIES 2,571,540 17,095,392 -------------- ---------------- Increase (Decrease) in Cash (1,468,011) 14,253,718 Cash - Beginning of Period 3,370,038 587,292 -------------- ---------------- CASH - END OF PERIOD $1,902,027 $14,841,010 -------------- ---------------- -------------- ---------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash Paid During the Period for Interest $317,297 $411,474 -------------- ---------------- -------------- ----------------
Children's Broadcasting Corporation Consolidated Statements of Cash Flows (unaudited)(continued) SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: During the three months ended March 31, 1997: In connection with the purchase of the radio broadcast license and certain other assets in the Chicago market the Company issued a note payable to the seller of $1,400,000 and a non-competition agreement of $320,495 (see Note A). The Company issued 65,377 shares of common stock to satisfy $201,735 of principal and $100,307 of interest due through November 1997 on the note payable described above (see Note A). The Company issued 33,243 shares of common stock valued at $183,184 for payment of attorney fees related to the ABC/Disney litigation. The Company issued 82,051 shares of common stock valued at $400,000 related to the acquisition of the radio broadcast license and certain other assets in Tulsa. The Company issued 37,500 shares of common stock valued at $154,688 for a brokerage fee in relation to securing the financing from Foothill Capital Corporation (see Note D). CHILDREN'S BROADCASTING CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) MARCH 31, 1997 NOTE 1--BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310 of Regulation SB. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals with the exception of the adjustments discussed in Note 2) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1997 are not necessarily indicative of the results that may be expected for the year ended December 31, 1997. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-KSB for the year ended December 31, 1996. NOTE 2--SIGNIFICANT TRANSACTIONS DURING 1997 The following significant transactions occurred during the first three months of 1997 and are considered non-recurring: A. In January 1997, the Company purchased the radio broadcast license and certain other assets of radio station WAUR-AM in the Chicago market. The consideration for the acquisition aggregated $3,900,000 consisting of cash payments totaling $2,000,000, a $1,400,000 note payable over six years bearing an interest rate of prime plus one percent per annum and payments totaling $500,000 pursuant to a ten year covenant not-to-compete agreement. During 1996, the Company satisfied a portion of the purchase price by issuing 75,000 shares of its common stock valued at $290,920 and making a cash payment of $81,000. Additionally, in March 1997, the Company issued 65,377 shares of common stock valued at $302,042 to satisfy $201,735 of principal and $100,307 of interest due through November 1997 on the note payable. The Company has the option of paying the $1,400,000 note in either stock or cash. B. On December 31, 1996, the Company entered into an asset purchase agreement to acquire the radio broadcast license and certain other assets of the radio station KMUS-AM in the Tulsa market for $400,000 payable with 82,051 shares of common stock. In January 1997, the Company issued 82,051 shares of common stock to the seller in exchange for a subscription note receivable of $400,000 which bears interest at a variable rate (11.25% at March 31, 1997). The Company expects that the seller will satisfy the subscription note receivable through transfer of the station assets pursuant to the aforementioned asset purchase agreement sometime in the second quarter of 1997. C. In February 1997, the Company issued 33,243 shares of common stock valued at $183,184 to satisfy payment due for attorney fees related to the ABC/Disney litigation. D. In March 1997, the Company issued 37,500 shares of common stock to Southcoast Capital in consideration for their part in securing the financing agreement the Company entered into with Foothill Capital Corporation. NOTE 3--RESTATEMENT OF PRIOR YEAR'S INTERIM FINANCIAL STATEMENTS The Company has restated the net loss per share and weighted average number of shares outstanding for the three months ended March 31, 1996. The effect of the restatement is as follows: As Previously As Reported Restated ------------ ---------- Net loss per share ($0.63) ($0.51) ------------ ---------- ------------ ---------- Weighted average number of shares outstanding 3,062,500 3,739,000 ------------ ---------- ------------ ---------- ITEM 2. This discussion and analysis contains certain forward-looking terminology such as "believes," "expects," "anticipates," and "intends," or comparable terminology. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Potential purchasers of the Company's securities are cautioned not to place undue reliance on such forward-looking statements which are qualified in their entirety by the cautions and risks described herein. GENERAL The Company has developed a radio programming format, Aahs World Radio-SM-, designed and directed toward pre-teen children and their parents. The Company is developing a network of radio stations, both by acquisition of radio stations and the entry into affiliation agreements with independently-owned radio stations, for the purpose of distributing the Company's Aahs World Radio format. Since the inception of the Company, the primary sources of the Company's revenue have been from the sale of local advertising and air time and network revenue. A substantial portion of the Company's local advertising revenue is derived from Company-owned stations not broadcasting the Aahs World Radio format. This source will continue to remain a substantial source of revenue for 1997, as the Company must maintain its affiliate support staff and national programming staff. While these costs are not expected to materially increase during this period, they will remain a substantial part of the Company's overall expenses. Radio stations frequently barter unsold advertising time for products or services, such as hotels, restaurants and other goods used principally for promotional, sales and other business activities. Barter revenues and expenses are included in the financial presentation below. The revenue and expenses related to barter do not have a material effect on the Company's operating profit in a given period. RESULTS OF OPERATIONS: THREE MONTHS ENDED MARCH 31, 1997 COMPARED TO THREE MONTHS ENDED MARCH 31, 1996. REVENUE: Owned, Operated and LMA Station Revenues: Total revenues from the Company's owned, operated and LMA stations increased $86,000 or 10% from $858,000 in the first quarter of 1996 to $944,000 for the same period in 1997. This increase in revenue can be attributed to the acquisition of radio broadcast licenses in the Detroit and Philadelphia markets after the first quarter of 1996. Network: Total revenues of $206,000 were produced by the network during the first quarter of 1997, a decrease of $151,000 or 42% compared to the first quarter of 1996 revenues. This decrease in network revenues was due in part to the down time experienced as the Company began rebuilding its national sales department after the cancellation of the ABC/Disney joint operations agreement in the last half of 1996. The Company has rehired a national sales staff similar in size to its staff prior to the ABC/Disney agreement. OPERATING EXPENSES: Owned, Operated and LMA Station Expenses: General and administrative expenses increased 62% to $758,000 for the first quarter of 1997 from $469,000 in the same period of 1996. Of this increase, $140,000 was due to the addition of the Detroit, New York and Philadelphia radio broadcast licenses in 1996, and the Chicago radio broadcast license in January 1997. At previously existing stations, compensation increased $52,000, rents increased $20,000 and travel, meals, utilities and telephone expenses increased $13,000. Technical and programming expenses increased to $240,000 in the first quarter of 1997 from $200,000 during the same period in 1996. This increase can be directly attributed to the acquisition of radio broadcast licenses in the New York, Detroit, Chicago and Philadelphia markets. Sales expenses was $342,000 in the first quarter of 1997 compared to $341,000 in the first quarter of 1996. Although a $33,000 increase in sales expenses occurred with the acquisition of the four new radio broadcast licenses, the already existing stations experienced a decrease in sales personnel compensation and trade/barter sales expense. Network Expenses: General and administrative expenses decreased $75,000 in the first quarter of 1997 to $151,000 as compared to $226,000 for the first quarter of 1996 due to the elimination of the monthly fee related to the joint operating agreement with ABC/Disney which has now been terminated. Programming expenses decreased $11,000 to $207,000 in the first quarter of 1997 compared to $218,000 in the same period of 1996 due to the elimination of the line charges related to past programming. Sales expenses increased 114% from $213,000 in the first quarter of 1996 to $455,000 in the same period of 1997. These sales expenses relate to both advertising sales and affiliate relations sales. Expenses have increased as the Company rebuilt its advertising sales staff, providing supplemental training, and increasing travel. Additionally, in the last quarter of 1996, the network implemented a sales development team which assists the newly acquired owned and operated stations in their sales efforts. Marketing expenses were $119,000 during the first quarter of 1997 compared to $120,000 in that same period in 1996, a decrease of 1%. The Company began developing this department in 1996 and anticipates expenses will remain at current levels of approximately $40,000 per month as it becomes fully operational. During the first quarter of 1997, activities in this category included advertising, research and promotion. Corporate charges were $887,000 in the first quarter of 1997 compared to $442,000 in the first quarter of 1996, representing an increase of 101%. This increase is attributable to an increase in outside service fees including $74,000 of legal and accounting fees related to stock, trademark, employee matters, SEC filings and audits and $75,000 of management fees. Additionally, during the first quarter of 1997, the Company incurred $300,000 of expenses relating to the ABC/Disney litigation. Such litigation is anticipated to be costly and may continue to reduce the Company's working capital. The Company registered 200,000 shares of common stock to be used to finance this litigation, of which 33,243 shares had been issued as of March 31, 1997. Depreciation and amortization increased to $459,000 in the first quarter of 1997 from $242,000 in that same period of 1996 due primarily to the acquisition of radio broadcast licenses and certain other assets of the Detroit, New York and Philadelphia stations in 1996 and the Chicago station in January 1997. No amortization of deferred expenses was recorded in 1997 due to the cancellation of the ABC/Disney warrant, the value of which had been amortized during the first half 1996. Net interest expense for the first quarter of 1997 increased $46,000 representing the difference of expense incurred related to the bridge loans in 1996 and the Foothill Capital Corporation ("Foothill") financing in 1997. The net loss increased 48% in the first quarter of 1997 to $2,780,000 from $1,876,000 in the first quarter of 1996. Consistent with its business plan and network strategy, the Company anticipates that its coverage of the United States will continue to expand during the year either through affiliation or acquisition of additional radio stations. The Company expects to incur operating losses as such network expansion increases, and that the losses will continue throughout 1997. LIQUIDITY AND CAPITAL RESOURCES The Company's liquidity, as measured by its working capital, was a negative $9,492,000 at March 31, 1997 compared to negative working capital of $5,489,000 at December 31, 1996. The Company's negative net working capital position through the first quarter of 1997 was the result of the reclassification of the long-term portion of the Term Loan as the Company did not meet certain restrictive financial covenants contained in its Credit Agreement with Foothill as of December 31, 1996 and March 31, 1997. The failure to meet these covenants was principally due to the Company's continued working capital losses and the holdback of $1,500,000 by Foothill which was released April 23, 1997 upon the Company's fulfillment of certain post-closing conditions. Foothill waived its rights pursuant to the December 31, 1996 and March 31, 1997 violations. Pursuant to generally accepted accounting principles (EITF No. 86-30), if similar restrictive covenants must be met at future interim periods, the debt must continue to be classified as current unless it is probable that the Company will satisfy the covenants in the future or if Foothill agrees to waive its rights to such potential future covenant violations. Foothill would not provide the Company with such a waiver and accordingly, the principal balances outstanding at March 31, 1997, aggregating $10,385,000, have been entirely classified as current obligations, even though $8,184,000 of this amount is not scheduled to be repaid until after March 31, 1998. The Company is scheduled to meet with Foothill to discuss the possibility of reviewing the covenant requirements in an effort to avoid future violations. Exclusive of this reclassification, the Company's net working capital decreased $2,172,000 from $864,000 at December 31, 1996 to a deficit of $1,308,000 at March 31, 1997. This decrease was the result of the Company's use of cash to purchase its station in the Chicago market. At present, the Company has experienced a cash working capital loss of approximately $500,000 per month. The Company expects this loss per month to decrease as it heads into stronger revenue months. Typically, the first quarter is the weakest sales quarter for broadcast entities. The Company anticipates that its network advertising and owned and operated station revenues will continue to fall short of expenses from operations throughout 1997. The Company believes it will need to obtain additional financing by the fall of 1997. If the Company is not able to obtain adequate financing or financings on acceptable terms, it could (a) be forced to reduce or terminate its operations, (b) curtail acquisitions or other projects, (c) sell or lease current assets, (d) delay certain capital projects or (e) potentially default on obligations to creditors, all of which may be materially adverse to the Company's operations and prospects. Part of the Company's strategy for development and expansion of its network includes acquiring and/or operating radio properties in key U.S. markets. Financing will be required to fund future operations and the expansion of its radio network through acquisitions. There can be no assurance that any such financing will be available to the Company when required, or if available, that it would be on terms acceptable or favorable to the Company. The Company is hopeful, however, the financing it received from Foothill will provide the financing needed to implement its strategy. Because the Foothill financing required the Company to grant liens and security interests to the lender in substantially all of the assets of the Company, this financing may limit the Company's ability to incur additional indebtedness in connection with future financings in the event future funding is required by the Company. The Foothill financing also requires the Company to meet various operating covenants and there can be no assurance that the Company will be able to perform in accordance with such covenants. Any additional capital the Company may require may necessitate the sale of equity securities, which could result in significant dilution to the Company's shareholders. Failure of the Company to obtain additional financing when required could materially and adversely affect its acquisition and operational strategy. Consolidated cash was $1,902,000 at March 31, 1997 and $3,370,000 at December 31, 1996, a decrease of $1,468,000. Accounts receivable at March 31, 1997 decreased $104,000 from December 31, 1996 and prepaid expenses at March 31, 1997 increased $180,000 from December 31, 1996. Accounts payable at March 31, 1997 decreased $116,000 from December 31, 1996, accrued interest increased $28,000 from December 31, 1996 to March 31, 1997 and other accrued expenses increased $94,000 during that same period. The $2,145,000 cash used for operations was provided by the monies received through the Foothill financing. During the first quarter of 1997, $1,894,000 cash was used for investing activities. This cash was used primarily to purchase the radio broadcast license and property and equipment in the Chicago market. Cash obtained through financing activities amounted to $2,572,000 during the first quarter of 1997. This cash represents the monies received from the release of $2,500,000 of the holdback from Foothill and the use of the line of credit related to the Foothill financing, less the repayment of debt. SEASONALITY AND INFLATION The Company's revenues generally follow retail sales trends, with the fall season (September through December) reflecting the highest revenues for the year, due primarily to back-to-school and holiday season retail advertising, and the first quarter reflecting the lowest revenues for the year. The Company does not believe inflation has affected the results of its operations, and does not anticipate that inflation will have an impact on its future operation. PART II. OTHER INFORMATION ITEM 1. THROUGH ITEM 5. Not applicable ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibit 27 FINANCIAL DATA SCHEDULE (b) The Company filed the following documents with the Commission (File No. 0-21534) during the quarter for which this report is filed: (1) The Company's Current Report on Form 8-K filed on February 3, 1997 (File No. 0-21534), relating to the Company acquiring an AM radio broadcast license and certain other broadcasting equipment in the Chicago metropolitan area. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on May 14, 1997. CHILDREN'S BROADCASTING CORPORATION By: /s/ James G. Gilbertson ----------------------------------- Treasurer (Chief Operating Officer and Chief Financial Officer) EXHIBIT INDEX Exhibit Number Description -------- ----------- 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 1,902,027 0 1,505,516 112,881 0 3,738,806 6,174,767 1,791,536 30,562,643 13,230,411 0 0 0 120,630 14,362,322 30,562,643 1,150,721 1,150,721 0 2,271,111 1,659,803 112,881 313,996 (2,780,193) 0 0 0 0 0 (2,780,193) (0.47) 0
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