-----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, GRAd+bmnpIdFTs+oCJtay/PQ5QxIEKIoAyJdPeh8QcB6uQX+SXl+rdDnbLlNtCoX mg9EN0sAafKGRRGrmHLX8g== 0000950130-99-006412.txt : 19991115 0000950130-99-006412.hdr.sgml : 19991115 ACCESSION NUMBER: 0000950130-99-006412 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MILLENNIUM SPORTS MANAGEMENT INC CENTRAL INDEX KEY: 0000904075 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 223127024 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-22042 FILM NUMBER: 99750304 BUSINESS ADDRESS: STREET 1: ROSS' CORNERS US HGWY 206 STREET 2: COUNTY RTE 565 CITY: AUGUSTA STATE: NJ ZIP: 07822-0117 BUSINESS PHONE: 9733837644 MAIL ADDRESS: STREET 1: PO BOX 117 CITY: AUGUSTA STATE: NJ ZIP: 07822-0117 FORMER COMPANY: FORMER CONFORMED NAME: SKYLANDS PARK MANAGEMENT INC DATE OF NAME CHANGE: 19930510 10QSB 1 FORM 10-QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB X QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF ----- THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1999 TRANSITION REPORT UNDER SECTION 13 or 15(d) OF ----- THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------- ------- Commission file number 0-22042 MILLENNIUM SPORTS MANAGEMENT, INC. (Exact name of small business issuer as specified in its charter) New Jersey 22-3127024 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Ross' Corner U.S. Highway 206 and County Route 565 Augusta, New Jersey 07822 (Address of Principal Executive Offices) (Zip Code) (973) 383-7644 (Issuer's telephone number) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 ----- APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Check whether the registrant filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes No ----- ----- APPLICABLE ONLY TO CORPORATE ISSUERS: State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date 1,229,809 shares of common stock outstanding as of October 31, 1999. TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (check one): Yes No X ----- ----- MILLENNIUM SPORTS MANAGEMENT, INC. BALANCE SHEETS
September 30, December 31, 1999 1998 ----------- ------------ (Unaudited) (Note 1) ----------- ------------ ASSETS PROPERTY AND EQUIPMENT, AT COST, LESS ACCUMULATED DEPRECIATION $ 868,754 $ 900,000 CASH 524,223 221,975 INVENTORIES 44,841 71,335 INVESTMENT IN LIMITED PARTNERSHIP, AT EQUITY 371,978 466,759 OTHER ASSETS 54,600 118,048 ------------ ------------- $ 1,864,396 $ 1,778,117 ============ ============= LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Mortgage payable $ 250,000 Amounts due insiders, pursuant to Chapter 11 proceedings 82,115 $ 88,513 Accounts payable and accrued expenses 329,737 262,293 Accrued interest 63,642 Accrued compensation - officers and directors 176,600 170,775 ------------ ------------- Total Liabilities 838,452 585,123 ------------ ------------- STOCKHOLDERS' EQUITY: Preferred stock, no par value: 500,000 shares authorized, none issued Common stock, no par value, stated value $0.01 per share; 2,000,000 shares authorized 1,229,809 and 719,809 shares issued in 1999 and 1998, respectively 122,980 71,980 Additional paid-in capital 19,622,050 19,416,652 Accumulated deficit (18,719,086) (18,295,638) ------------ ------------- Total Stockholders' Equity 1,025,944 1,192,994 ------------ ------------- $ 1,864,396 $ 1,778,117 ============ =============
See notes to financial statements. 2 MILLENNIUM SPORTS MANAGEMENT, INC. STATEMENTS OF OPERATIONS (Unaudited)
Nine months ended Three months ended September 30 September 30 ----------------------------- ----------------------------- 1999 1998 1999 1998 ------------ ------------- ------------ ------------- REVENUES: Stadium and facility rentals and admission $ 307,846 $ 327,411 $ 123,635 $ 213,052 Retail sales 70,111 207,689 31,312 122,036 Concession sales 98,913 66,635 Other 30,504 8,645 8,386 1,159 ------------ ------------- ------------ ------------- Totals 507,374 543,745 229,968 336,247 ------------ ------------- ------------ ------------- COSTS OF SALES AND SERVICES: Costs of stadium operations 206,045 196,979 92,578 93,847 Costs of retail and concession sales 96,014 111,950 49,882 73,897 Selling, general and administrative 601,840 583,266 189,801 214,652 Stock compensation to officers and directors 734,375 Depreciation 31,246 273,825 10,416 91,275 ------------ ------------- ------------ ------------- 935,145 1,900,395 342,677 473,671 ------------ ------------- ------------ ------------- LOSS FROM OPERATIONS (427,771) (1,356,650) (112,709) (137,424) Income of limited partnership 100,000 100,000 INTEREST INCOME 4,323 6,734 3,863 2,766 Write down of joint venture (175,000) (175,000) ------------ ------------- ------------ ------------- NET LOSS $ (423,448) $ (1,424,916) $ (108,846) $ (209,658) ------------ ------------- ------------ ------------- WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 791,225 643,452 929,000 717,719 ------------ ------------- ------------ ------------- BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.54) $ (2.21) $ (0.12) $ (0.29) ------------ ------------- ------------ -------------
See notes to financial statements. 3 MILLENNIUM SPORTS MANAGEMENT, INC. STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY NINE MONTHS ENDED SEPTEMBER 30, 1999 (Unaudited)
Common stock -------------------------- Additional Number Paid-in Accumulated of Shares Amount Capital Deficit Total -------- --------- ----------- ------------ ---------- BALANCE DECEMBER 31, 1998 719,809 $ 71,980 $19,416,652 $(18,295,638) $1,192,984 Issuance of common stock upon conversion of debt 10,000 1,000 5,398 6,398 Issuance of common stock in a private placement 500,000 50,000 200,000 250,000 NET LOSS (423,448) (423,448) -------- --------- ----------- ------------ ---------- BALANCES, September 30, 1999 1,229,809 $122,980 $19,622,050 $(18,719,086) $1,025,944 -------- --------- ----------- ------------ ----------
See notes to financial statements 4 MILLENIUM SPORTS MANAGEMENT, INC. STATEMENTS OF CASH FLOWS (Unaudited)
Nine months ended September 30, ------------------------------- 1999 1998 --------- ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(423,448) $(1,424,916) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 31,246 273,825 Stock compensation awarded to officers and directors 734,375 Equity in income of limited partnership (100,000) Write down of investment in joint venture 175,000 Common stock issued for services rendered - Changes in operating assets and liabilities: Inventory 9,586 34,338 Other assets 39,887 (12,781) Accounts payable and accrued expenses 263,467 (208,525) --------- ------------ Net cash flows from operating activities (79,262) (528,684) --------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and improvements (14,964) Investment in joint venture (134,000) Distribution from limited partnership 94,781 98,994 --------- ------------ Net cash flows from investing activities 94,781 (49,970) --------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from notes payable 250,000 - Repayments of creditors' notes payable and amounts due inside (3,500) Proceeds from issuance of common stock upon exercise of warrants, net of costs 767,063 Proceeds from issuance of warrants 92,014 Payments of offering costs 250,000 - --------- ------------ Net cash flows from by financing activities 500,000 855,577 --------- ------------ NET CHANGE IN CASH 515,519 276,923 CASH, BEGINNING OF PERIOD 8,704 115,295 --------- ------------ CASH, END OF PERIOD $ 524,223 $ 392,218 --------- ------------ Issuance of common stock upon conversion of outstanding debt $ 6,398 $ 275,244 --------- ------------
See notes to financial statements. 5 MILLENNIUM SPORTS MANAGEMENT, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Note 1 - Basis of Presentation: The balance sheet at the end of the preceding fiscal year has been derived from the audited balance sheet contained in Millennium Sports Management, Inc.'s (the "Company's") Annual Report on Form 10-KSB for the year ended December 31, 1998 (the "10-KSB") and is presented for comparative purposes. All other financial statements are unaudited. In the opinion of management, all adjustments, which include only normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for all periods presented, have been made. The results of operations for interim periods are not necessarily indicative of the operating results for the full year. Footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted in accordance with the published rules and regulations of the Securities and Exchange Commission. These financial statements should be read in conjunction with the financial statements and notes thereto included in the 10-KSB. Annual Review for Impairment of Long-lived Assets - In accordance with generally accepted accounting principles, management reviews its property and equipment to determine its recoverability through future profitable operations due to the Company operating at a loss since it emerged from Chapter 11 of the Bankruptcy Code in 1995. In years prior to 1998 management believed that profitability could be achieved through, among other things, leases with additional teams and leagues, lease of the stadium name, reduction in administrative costs, leasing the museum and store facilities or other uses, development of the property into a year-round facility, and leasing a portion of the parking facilities and water treatment equipment to adjacent land owners upon construction of a strip mall. One of management's attempts to reduce costs is an appeal of its real estate tax assessment. In connection with tax appeal litigation in the New Jersey Tax Court, which commenced in April 1999 and the testimony phase was completed in May 1999, the Company engaged an appraiser to present its belief that the assessment is excessive. The appraiser estimated, in a report dated January 20, 1999, that (1) the cost to replace the building and the value of the land as of October 1, 1996 (the valuation date being used by the appraiser) was $9,661,000, (2) because of the continuing losses of the Company, fair market value could not be determined by capitalization of the Company's earnings and (3) comparable sales could not be identified by the appraiser. In the circumstances, the appraiser estimated fair value at $900,000 by capitalizing estimated "stabilized net operating income" of property similar to the Company's stadium and land. The appeal resulted in a valuation judgement of approximately $3.5 million, which would result in an estimated reduction in real estate taxes of approximately $22,000, annually. The reduction is retroactive to January 1, 1997. Management has determined a further appeal will be filed. In view of the continuing doubt about the Company's ability to achieve substantial improvements in operating results necessary to fully recover their cost, management 6 MILLENNIUM SPORTS MANAGEMENT, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) decided that a write-down of the stadium and land to $900,000 would be appropriate as of December 31, 1998; accordingly, a write-down of $11,544,942 was made in the fourth quarter of 1998. Reclassification - Certain amounts previously reported have been reclassified to conform to current year presentation. Note 2 - Organization, Proceedings Under Chapter 11 And Subsequent Operations: Organization and development - The Company operates a regional sports entertainment and recreation center in Sussex County, New Jersey, known as the Skylands Park Sports and Recreation Center (the "Complex"). The Complex includes a professional baseball stadium ("Skylands Park") used for sports and other entertainment events, and other adjacent recreational and commercial facilities (the "Related Facilities") that include, among other things, a sports apparel and collectibles store, a wholesale and retail sporting goods outlet, batting cages and a video parlor. The Company did not have sufficient financing to pay its contractors and other vendors and, as a result, filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court (the "Court") for the District of New Jersey on June 1, 1994 (the "Petition Date"). The Company operated as a debtor-in-possession subject to the jurisdiction of the Court from the Petition Date through April 13, 1995, the date its plan of reorganization (the "Plan") was confirmed. During the periods presented herein and since inception, the Company generated only limited amounts of revenues from the events held at Skylands Park and the operation of the Related Facilities and, as a result, the Company has incurred significant net losses. Revenues from the rental of the Skylands Park to its primary tenant have not and will not be significant. The Company generates additional revenues from the rental of skyboxes and advertising signs in the Skylands Park, parking fees and other revenues from other baseball games, the rental of Skylands Park for other sports and entertainment events, the operation of the retail, recreation and other related facilities in the Complex, and the Company's ownership in Minor League Heroes, L.P. ("Heroes"), which is the limited partnership that owns and operates the Company's primary tenant. Accordingly, the Company's ability to generate significant additional revenues will be dependent upon, among other things, its ability to generate future attendance at events and the success of its other commercial operations. Management believes that the Company is in need of additional liquid resources to enable the Company to sustain operations, and there can be no assurance that the Company will be able to obtain such additional liquid resources. In August 1999, the Company received $500,000 in cash proceeds from an equity issuance and convertible loan (see Note 4). 7 MILLENNIUM SPORTS MANAGEMENT, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Confirmation of Plan of Reorganization - The Company's Plan was confirmed by its creditors and the Court on April 13, 1995 (the "Confirmation Date"). Since the Confirmation Date, the Company has paid unsecured pre-petition liabilities pursuant to the terms of a secured promissory note (the "Creditors' Note"). The Creditors' Note bore interest on the unpaid principal balance at the prime rate plus 3%. The final payment under the Creditors' Note was paid on March 4, 1999. The Creditors' Note was secured by substantially all of the assets of the Company. Claims of "insiders" (generally, former directors and executive officers of the Company and certain of their affiliates) of approximately $339,000 as of the Confirmation Date (including accrued salaries and loans and advances made to the Company) may be paid from time to time after payment in full of the Creditors' Note, as the cash flow of the Company may permit; however, each insider has the option to elect to be paid in shares of common stock of the Company valued at the then current market price of such common stock as reported on "NASDAQ." Through Sept. 30, 1999, approximately $257,000 has been paid on the claims of insiders, principally through the issuance of common stock. Equity interests, including interests of stockholders and warrant holders, were not altered or impaired under the terms of the Plan. However, the terms of the Plan prohibit the Company from paying dividends until all payments required under the Plan have been made. Pursuant to SOP 90-7, the Company was not required to adopt "fresh-start" reporting (and, as a result, revalue all of its assets and liabilities) since the holders of the Company's existing voting stock immediately prior to confirmation held the same relative voting interests after confirmation. In addition, since the Company will be paying all of its pre-petition liabilities at their original principal amounts, the Company did not recognize any material gain or loss as a result of the confirmation of the Plan. Note 3 - Stockholders' Equity: Reverse Stock Split - Effective at the close of business on January 4, 1999, the Company effectuated a one-for-ten reverse stock split, which has been retroactively reflected in the accompanying financial statements. Note 4 - Subsequent Events: On August 5, 1999, the Company issued, in a private placement, 500,000 shares of the Company's common stock to Robert J. Hartung for $250,000. In addition, Mr. Hartung has loaned to the Company $250,000 payable in August 2001 with 10% interest per annum; the loan is collateralized by the real estate and improvements of the Company, and is convertible as to principal in whole (but not in part) at any time into shares of common stock of the Company at $.50 per share. Upon conversion of the principal of this note, all accrued interest (other than interest on any prepaid principal) will be forgiven. 8 MILLENNIUM SPORTS MANAGEMENT, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) Simultaneous with these transactions, Barry M. Levine and Robert H. Stoffel, Jr. resigned as directors and officers of the Company, and Mr. Hartung was elected to the board of directors and assumed the responsibilities of President, Chief Operating Officer and Chief Financial Officer. 9 MILLENNIUM SPORTS MANAGEMENT, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS The following discussion and analysis should be read in conjunction with the information set forth in the unaudited financial statements and notes thereto included elsewhere herein and the audited financial statements and the notes thereto included in the 10-KSB. Overview Skylands Park is a 4,300-seat professional baseball stadium which, among other things, has been and will be leased for sports and other entertainment events. The Complex follows a courtyard village design theme, and includes, among other things, a sports apparel and collectibles store, a wholesale and retail sporting goods outlet, batting cages, and a video parlor. The New Jersey Cardinals ("the Team"), which is a member of the Class "A" level New York-Penn League, plays its regularly-scheduled home games and playoff home games at Skylands Park. The Company has a minority ownership interest in Minor League Heroes, L.P. ("Heroes"), which is the limited partnership that owns the Team. In February 1999, the Company entered into a lease agreement, which commenced in May 1999 and expired in June 1999, with Newark Bears, Inc. (the "Bears") a professional baseball team, which is a member of the independent Atlantic League. Pursuant to the agreement, the Bears played 22 of its 1999 regular season home games at Skylands Park during the months of May and June 1999. The Bears paid rent of approximately $63,000. The Company retained the net proceeds of all alcohol beverage concessions at Bears games. The Company currently operates, in the Complex, the Skylands Sporting Goods store, which sells, year-round both at retail and at wholesale, a broad range of sporting goods relating to baseball and other sports, and Team paraphernalia. The Company also operates, in the Complex, a year-round recreational facility known as the "Barn", which contains batting cages, a sports video parlor, mini-gym and children's party room, and a space subleased to a director of the Company, where sports collectibles are sold by such director for his own account. The Company anticipates receiving approximately $42,000 per year in rent from the Team, which management does not believe will constitute a significant portion of the Company's revenues. The Company expects to generate additional revenues from, among other things, the rental of skyboxes and advertising signs in Skylands Park, the rental of Skylands Park for other sports and entertainment events, the operation of the related facilities in the Complex, and the Company's direct and indirect ownership interest in the limited partnership that owns the Team. As of August 11, 1999, the Company had received 1999 season commitments for three skyboxes for an aggregate rental of approximately $24,000 (of which the Team is entitled to retain approximately $10,000). In addition, the Company is entitled to 20% of all revenues from advertising sign rental commitments at Skylands Park. The Company's 20% share of such revenues in 1998 was approximately $75,000. Although the Company does not expect to receive significant rental income from the Team, the Company did receive in March 1999 and expects to continue to derive income from cash distributions through its minority ownership interest in Heroes. Accordingly, the revenues generated by the Team through paid admissions and its ancillary operations will indirectly benefit the Company. A portion of the Company's cash flow in each year of operations has been received 10 MILLENNIUM SPORTS MANAGEMENT, INC. in the form of a distribution from Heroes in respect of the Company's share of the net income of Heroes. Plan of Reorganization In April 1995, the Company paid $1,600,000 in respect of its pre-petition unsecured liabilities (including payment in full of de minimis claims, and subject to the Company's reservation of rights to contest a limited number of unsecured claims), leaving a balance due in respect of such claims of approximately $2,608,000, which was payable pursuant to the terms of the Creditors' Note. The Company has fully paid the principal and accrued interest on the Creditors' Note, primarily out of net equity proceeds from the sale of common stock by the Company. Claims held by insiders (consisting primarily of former directors and executive officers of the Company and certain of their affiliates) in respect of pre-petition obligations (including but not limited to pre-petition loans made to the Company), originally in the aggregate amount of approximately $339,000, may be paid from time to time after payment in full of the Creditor's Note, as the cash flow of the Company may permit; or, at the option of each insider, may be paid at any time or from time to time in shares of common stock of the Company valued at the then-current market price of such common stock as reported on NASDAQ. During the six months ended June 30, 1999, approximately $6,000 was repaid upon conversion of such insider claims into 10,000 shares of common stock, leaving an unpaid balance of approximately $82,000 at September 30, 1999. Equity interests, including interests of stockholders and warrantholders, are not altered or impaired under the terms of the Plan. However, pursuant to the Plan, the Company is not permitted to pay any dividends on its common stock until all required payments under the Plan have been made. The foregoing information regarding the Plan is merely a summary of certain material provisions thereof, and is qualified in its entirety by the specific provisions of the Plan, a copy of which was previously filed as an exhibit to the Company's Annual Report on Form 10-KSB for the year ended December 31, 1994. 11 MILLENNIUM SPORTS MANAGEMENT, INC. Liquidity and Capital Resources The Company's primary sources of liquidity since its inception have been the sale of shares of common stock to and short-term borrowings from certain shareholders, which were used during the period from inception through March 1993; the net proceeds of approximately $739,000 from a private placement of common stock and warrants, which were used during the period from March 1993 through September 1993; the net proceeds of approximately $5,815,000 from an initial public offering of common stock and Class A Warrants, which were used during the last quarter of 1993 and the first quarter of 1994; short-term borrowings from certain officers, former shareholders and other related and unrelated parties during March, April and May 1994, which were used during the first and the beginning of the second quarter of 1994; proceeds from the exercise of Class A Warrants and Class B Warrants, which were received during the fourth quarter of 1994, and in 1995; net proceeds of $1,500,000 from a private placement of common stock in August 1995 (all of which net proceeds were utilized for partial prepayment of the Creditors' Note); and net proceeds of $2,965,228 from the issuance of and exercise of Class A Warrants and Class D Warrants and underwriter's warrants in 1997 and 1998. As of December 31, 1998, all unexercised Class A Warrants expired, and the Company has ceased any further offering of Class D Warrants. As of September 30, the Company had cash totaling approximately $524,000. In August 1999, the Company issued, in a private placement, 500,000 shares of the Company's common stock to Robert J. Hartung for $250,000. In addition, Mr. Hartung has loaned to the Company $250,000 payable in August 2001 with 10% interest per annum; the loan is collateralized by the real estate and improvements of the Company, and is convertible as to principal in whole (but not in part) at any time into shares of common stock of the Company at $.50 per share. Upon conversion of the principal of this note, all accrued interest (other than interest on any principal) will be forgiven. 12 MILLENNIUM SPORTS MANAGEMENT, INC. Comparative Quarterly Results The Company's stadium and facility rentals and admissions during the three and nine months ended September 30, 1999 was approximately $124,000 and approximately $308,000, respectively, as compared to approximately $215,000 and approximately $327,000 for the three and nine months ended September 30, 1998. The decreases are principally attributable to the lack of non-baseball events. Retail and concession revenue decreased by approximately 20% for the three and nine months ended September 30, 1999, to approximately $98,000 and $169,000 respectively. The decrease is principally attributable to a decline of 12% in Cardinal's attendance. Cost of stadium operations increased by approximately 5% to approximately $93,000 and approximately $206,000 for the three and nine months ended September 30, 1999. The increase reflects required maintenance to the stadium in connection with the Bears games. Cost of retail and concession sales as a percentage of retail and concession sales decreased to approximately 57% for the three and nine months ended September 30, 1999, respectively, as compared to 60% and 54% in the comparable prior year periods. The decrease is due to reduced labor costs. Selling, general and administrative expenses decreased by approximately $25,000 to $190,000 for the three months ended September 30, 1999, as compared to the same three months in 1998. The decrease is due to a reduction in legal and labor costs. The decrease in depreciation expense is attributable to the write-down of the Company's fixed assets by approximately $11,545,000 in the fourth quarter of 1998. Net loss in the three and nine months ended September 30, 1999 was approximately $109,000 and approximately $423,000 respectively, as compared to approximately $209,000 and approximately $1,425,000 in the three and nine months ended September 30, 1998, respectively. The decrease is primarily attributable to a non-recurring charge for stock based compensation recognized in the second quarter of 1998 of approximately $734,000, and to the decrease in depreciation in the 1999 periods. Market For the Company's Common Stock In March 1999, the Company's common stock was delisted from the NASDAQ Small Cap Market and is now quoted on the OTC Bulletin Board. Part II - OTHER INFORMATION Item 1- Legal Proceedings None Item 6- Exhibits and Reports on Form 8-K (a) Exhibit 27 - Financial Data Statement (b) The Company did not file any reports on Form 8-K during the Months ended September 30, 1999. 13 MILLENNIUM SPORTS MANAGEMENT, INC. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MILLENIUM SPORTS MANAGEMENT, INC. - --------------------------------- (Registrant) Signature Title Date President November 1, 1999 Chief Operating Officer /s/ Robert J. Hartung Chief Accounting Officer - ---------------------------- Robert J. Hartung 14 EX-27 2 FINANCIAL DATA SCHEDULE
5 MILLENNIUM SPORTS MANAGEMENT, INC. THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB FOR 9/30/99 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1999 JAN-01-1999 SEP-30-1999 524,223 0 0 0 44,841 569,064 868,754 31,246 1,864,396 838,452 0 0 0 122,980 902,964 1,864,396 169,024 507,374 96,014 333,305 601,840 0 (4,323) 0 0 (423,448) 0 0 0 (423,448) (0.54) (0.54)
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