BERMUDA |
N/A |
(State or other jurisdiction of incorporation and organisation) |
(IRS Employer Identification No.) |
Clarendon House, Church Street, Hamilton |
HM CX Bermuda |
(Address of principal executive offices) |
(Zip Code) |
| ||
Document |
Location in Form 10-K in Which Document is Incorporated |
Registrant's Proxy Statement for the Annual General Meeting of Shareholders to be held on May 22, 2003 |
Part III |
Page 2 | ||
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|
Page | ||
PART I |
| ||
|
Item 1 |
Business |
4 |
|
Item 2 |
Properties |
26 |
|
Item 3 |
Legal Proceedings |
27 |
|
Item 4 |
Submission of Matters to a Vote of Security Holders |
30 |
|
| ||
PART II |
| ||
|
Item 5 |
Market for Registrant's Common Equity and Related Stockholder Matters |
31 |
|
Item 6 |
Selected Financial Data |
31 |
|
Item 7 |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
34 |
|
Item 7A |
Quantitative and Qualitative Disclosures About Market Risk |
56 |
|
Item 8 |
Financial Statements and Supplementary Data |
58 |
|
Item 9 |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosures |
124 |
| |||
PART III |
| ||
|
Item 10 |
Directors and Executive Officers of the Registrant |
125 |
|
Item 11 |
Executive Compensation |
125 |
|
Item 12 |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
125 |
|
Item 13 |
Certain Relationships and Related Transactions |
125 |
|
| ||
PART IV |
| ||
|
Item 14 |
Controls and Procedures |
126 |
|
Item 15 |
Exhibits, Financial Statement Schedules, and Reports on Form 8-K |
126 |
| |||
SIGNATURES |
| ||
| |||
CERTIFICATIONS |
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|
Page 3 | ||
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Page 4 | ||
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Key Subsidiaries and Affiliates |
Share of Profits |
Voting Interest |
Subsidiary / Equity Accounted Affiliate |
TV Network |
Continuing Operations |
|
|
|
|
Romania |
|
|
|
|
Operating Companies: |
|
|
|
|
Media Pro International S.A. (MPI) |
66% |
66% |
Subsidiary |
|
Media Vision S.R.L. (Media Vision) |
70% |
70% |
Subsidiary |
|
License Companies: |
|
|
|
|
Pro TV S.R.L. (Pro TV) |
49% |
49% |
Equity Accounted Affiliate |
PRO TV, ACASA, and PRO TV INTERNATIONAL |
Media Pro S.R.L. (Media Pro) |
44% |
44% |
Equity Accounted Affiliate |
PRO TV and ACASA |
| ||||
Slovenia |
|
|
|
|
Operating Companies: |
|
|
|
|
Produkcija Plus, d.o.o. (Pro Plus) |
96.85% |
96.85% |
Subsidiary |
|
License Companies: |
|
|
|
|
Pop TV d.o.o. (Pop TV) |
96.85% |
96.85% |
Subsidiary |
POP TV |
Kanal A d.d. (Kanal A) |
99.7% |
99.7% |
Subsidiary |
KANAL A |
| ||||
Slovak Republic |
|
|
|
|
Operating Companies: |
|
|
|
|
Slovenska Televizna Spolocnost, spol. s r.o. (STS) |
70% |
49% |
Equity Accounted Affiliate |
|
License Companies: |
|
|
|
|
Markiza-Slovakia s r.o. (Markiza) |
0.1% |
34% |
Equity Accounted Affiliate |
MARKIZA TV |
| ||||
Ukraine |
|
|
|
|
Operating Companies: |
|
|
|
|
Innova Film GmbH (Innova) |
60% |
60% |
Subsidiary |
|
International Media Services Ltd. (IMS) |
60% |
60% |
Subsidiary |
|
Enterprise "Inter-Media" (Inter-Media) |
60% |
60% |
Subsidiary |
|
License Companies: |
|
|
|
|
Broadcasting Company "Studio 1+1" (Studio 1+1) |
18% |
18% |
Equity Accounted Affiliate |
STUDIO 1+1 |
| ||||
| ||||
Czech Republic |
|
|
|
|
Operating Companies: |
|
|
|
|
Ceska Nezavisla Televizni Spolecnost, spol. s r.o. (CNTS) |
93.2% |
93.2% |
Subsidiary |
|
License Companies: |
|
|
|
|
CET 21 spol. s r.o. (CET) |
3.125% |
3.125% |
Investment |
N/A |
|
Page 5 | ||
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Page 6 | ||
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Page 7 | ||
| ||
|
|
|
|
|
|
Country |
Station and Networks |
Launch Date | Technical Reach (1) |
2002 Audience Share (2) |
Market Rank (2) |
Romania |
PRO TV |
December 1995 |
68% |
19.2% |
1 |
|
ACASA |
February 1998 |
52% |
6.2% |
4 |
Slovenia |
POP TV |
December 1995 |
87% |
29.3% |
1 |
|
KANAL A |
October 2000 (3) |
80% |
11.0% |
3 |
Slovak Republic |
MARKIZA TV |
August 1996 |
96% |
48.2% |
1 |
Ukraine |
STUDIO 1+1 |
January 1997 |
95% |
22.2% |
2 |
Page 8 | ||
| ||
Country |
Population (in millions) (1) |
Technical Reach (in millions) (2) |
TV Households (in millions) (3) |
Per Capita GDP 2001 (4) |
Cable Penetration (5) |
Romania |
22.4 |
15.3 |
7.6 |
$1,695 |
51% |
Slovenia |
2.0 |
1.7 |
0.7 |
$9,780 |
52% |
Slovak Republic |
5.4 |
5.2 |
1.9 |
$3,804 |
28% |
Ukraine |
49.1 |
46.6 |
18.6 |
$766 |
27% |
|
|
|
|||
Total |
78.9 |
68.8 |
28.8 |
|
|
|
|
|
Country |
1998 |
1999 |
2000 |
2001 |
2002 | |||||||||||
|
|
|
|
|
|
|||||||||||
Romania |
87 |
|
|
69 |
|
|
69 |
|
|
63 |
|
|
66 |
| ||
Slovenia |
|
|
51 |
|
|
49 |
|
|
47 |
|
|
47 |
|
|
48 |
|
Slovak Republic |
|
|
56 |
|
|
43 |
|
|
42 |
|
|
42 |
|
|
47 |
|
Ukraine |
|
|
65 |
|
|
32 |
|
|
35 |
|
|
50 |
|
|
60 |
Page 9 | ||
| ||
Page 10 | ||
| ||
- we may have difficulty borrowing money in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes; |
| |
- the payment of principal and interest on debt will reduce the amount of cash available to finance our operations and other business activities; and |
||
- our debt level makes us more vulnerable to economic downturns and adverse developments in our business. |
|
- retain and renew licenses; |
|
- attract and maintain audiences; |
|
- generate advertising revenues; |
|
- develop additional revenue streams; and |
|
- control costs in all areas, but particularly programming costs. |
Page 11 | ||
| ||
Page 12 | ||
| ||
Page 13 | ||
| ||
Slovenia |
The licenses of our operations in Slovenia expire in 2012 |
|
Slovak Republic |
The license of our partner in the Slovak Republic expires in 2007 |
|
Ukraine |
The license to provide programming and sell advertising to UT-2 in Ukraine expires in 2006 |
|
Romania |
Licenses which cover 19% of the Romanian population, including the license for Bucharest, expire from October 2003. To date, licenses have been renewed as they expired. The remaining licenses expire on dates ranging from 2004 to 2008 |
|
Page 14 | ||
| ||
Country |
Rating |
Detail of Rating |
Slovenia |
A2 |
Default probability is still weak even in the case when one country's political and economic environment or the payment record of companies are not as good as A1-rated countries. |
Slovak Republic |
A4 |
An already patchy payment record could be further worsened by a deteriorating political and economic environment. Nevertheless, the probability of a default is still acceptable. |
Romania |
B |
An unsteady political and economic environment is likely to affect further an already poor payment record. |
Ukraine |
D |
The high risk profile of a country's economic and political environment will further worsen further a generally very bad payment record. |
Source : Coface USA. Country ratings issued by the Coface Group measure the average default risk on corporate payments in a given country and indicate to what extent a company's financial commitments are affected by the local business, financial and political outlook. Coface continuously monitors 140 countries using a spectrum of indicators incorporating political factors; risk of currency shortage and devaluation; ability to meet financial commitments abroad; risk of a systemic crisis in the banking sector; cyclical risk; and payment behavior for short term transactions. |
Page 15 | ||
| ||
|
- Announcement of the monetary value of the Czech award or collection or failure to collect the Czech award; and |
|
- Conditions or trends in Europe and our markets. |
Page 16 | ||
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Page 17 | ||
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Page 18 | ||
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Page 19 | ||
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Page 20 | ||
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Page 21 | ||
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Page 22 | ||
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Page 23 | ||
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Page 24 | ||
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Page 25 | ||
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Page 26 | ||
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Page 27 | ||
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Page 28 | ||
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Page 29 | ||
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Page 30 | ||
| ||
Price Period |
High |
Low | |||||
|
|||||||
2001 |
|
|
|||||
First Quarter |
0.813 |
|
|
0.083 |
| ||
Second Quarter |
|
|
0.675 |
|
|
0.375 |
|
Third Quarter |
|
|
2.650 |
|
|
0.275 |
|
Fourth Quarter |
|
|
2.838 |
|
|
1.625 |
|
2002 |
|
|
|
|
|
|
|
First Quarter |
|
|
6.000 |
|
|
2.325 |
|
Second Quarter |
|
|
4.875 |
|
|
3.625 |
|
Third Quarter |
|
|
9.500 |
|
|
3.828 |
|
Fourth Quarter |
|
|
11.940 |
|
|
6.750 |
|
2003 |
|
|
|
|
|
|
|
First Quarter (to March 3, 2003) |
|
|
13.425 |
|
|
10.400 |
Page 31 | ||
| ||
Years Ended December 31, |
||||||||||||||||
|
||||||||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|||
|
|
|
|
|
||||||||||||
|
(US $ 000's, except per share data) | |||||||||||||||
OPERATING DATA: |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Net Revenues |
$ |
92,602 |
$ |
73,238 |
$ |
76,813 |
$ |
129,323 |
$ |
174,291 |
||||||
|
|
|
|
|
|
|||||||||||
Total station operating costs and expenses |
67,501 |
60,469 |
77,808 |
139,405 |
112,836 |
|||||||||||
Selling, general and administrative expenses |
13,183 |
19,992 |
19,402 |
25,898 |
25,250 |
|||||||||||
Corporate operating costs and development expenses |
11,357 |
8,548 |
8,578 |
16,840 |
22,670 |
|||||||||||
Net arbitration (proceeds)/costs |
(16,602 |
) |
4,509 |
2,839 |
1,913 |
- |
||||||||||
Stock based compensation |
3,754 |
- |
- |
- |
- |
|||||||||||
Amortization of goodwill |
- |
1,747 |
1,670 |
49,091 |
10,606 |
|||||||||||
Restructuring charge |
- |
- |
- |
- |
2,552 |
|||||||||||
|
|
|
|
|
||||||||||||
Total operating expenses |
79,193 |
95,265 |
110,297 |
233,147 |
173,914 |
|||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Operating income/(loss) |
13,409 |
(22,027 |
) |
(33,484 |
) |
(103,824 |
) |
377 |
||||||||
|
|
|
|
|
|
|||||||||||
Loss on write down of investment |
(2,685 |
) |
- |
- |
- |
- |
||||||||||
Equity in income/(loss) of unconsolidated affiliates |
2,861 |
7,137 |
(514 |
) |
(11,021 |
) |
(3,398 |
) | ||||||||
Interest and other income |
1,389 |
1,943 |
3,543 |
5,974 |
25,094 |
|||||||||||
Interest and other expense |
(15,301 |
) |
(19,702 |
) |
(21,788 |
) |
(20,003 |
) |
(42,644 |
) | ||||||
Change in the fair value of derivative |
1,108 |
(1,576 |
) |
- |
- |
- |
||||||||||
Gain on sale of Subsidiaries (1) |
- |
1,802 |
- |
- |
- |
|||||||||||
Foreign currency exchange gain/ (loss) |
(10,231 |
) |
1,651 |
(2,286 |
) |
12,983 |
(6,999 |
) | ||||||||
|
|
|
|
|
|
|||||||||||
Gain on discharge of obligation |
- |
5,188 |
- |
- |
- |
|||||||||||
Gain on sale of investment |
- |
- |
17,186 |
25,870 |
- |
|||||||||||
Other income |
- |
- |
- |
8,250 |
- |
|||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Loss before provision for income taxes, minority interest and discontinued operations |
(9,450 |
) |
(25,584 |
) |
(37,343 |
) |
(81,771 |
) |
(27,570 |
) | ||||||
|
|
|
|
|
|
|||||||||||
Provision for income taxes |
(4,135 |
) |
(1,381 |
) |
(96 |
) |
(1,518 |
) |
(15,856 |
) | ||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Loss before minority interest and discontinued operations |
(13,585 |
) |
(26,965 |
) |
(37,439 |
) |
(83,289 |
) |
(43,426 |
) | ||||||
|
|
|
|
|
|
|||||||||||
Minority interest in loss/(income) of consolidated subsidiaries |
(599 |
) |
2,138 |
(59 |
) |
213 |
(156 |
) | ||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations |
(14,184 |
) |
(24,827 |
) |
(37,498 |
) |
(83,076 |
) |
(43,582 |
) | ||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Discontinued operations (2) : |
|
|
|
|
|
|||||||||||
Operating income/(loss) of discontinued operations (Hungary) |
- |
- |
- |
(10,208 |
) |
(37,576 |
) | |||||||||
Gain on disposal of discontinued operations (Hungary) |
- |
2,716 |
- |
3,414 |
- |
|||||||||||
Operating loss of discontinued operations (Poland) |
- |
- |
- |
- |
(15,289 |
) | ||||||||||
Loss on disposal of discontinued operations (Poland) |
- |
- |
- |
- |
(28,805 |
) | ||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Net loss |
$ |
(14,184 |
) |
$ |
(22,111 |
) |
$ |
(37,498 |
) |
$ |
(89,870 |
) |
$ |
(125,252 |
) | |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Page 32 | ||
| ||
Years Ended December 31, |
||||||||||||||||
|
||||||||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|
|
1999 |
|
|
1998 |
|||
|
|
|
|
|
||||||||||||
|
(US $ 000's, except per share data) | |||||||||||||||
|
|
|
|
|
|
|||||||||||
PER SHARE DATA: |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Net loss per common share from : |
|
|
|
|
|
|||||||||||
Continuing operations basic and diluted |
$ |
(1.07 |
) |
$ |
(1.88 |
) |
$ |
(2.84 |
) |
$ |
(6.44 |
) |
$ |
(3.61 |
) | |
Discontinued operations basic and diluted |
- |
0.21 |
- |
(0.53 |
) |
(6.77 |
) | |||||||||
|
|
|
|
|
||||||||||||
|
$ |
(1.07 |
) |
$ |
(1.67 |
) |
$ |
(2.84 |
) |
$ |
(6.97 |
) |
$ |
(10.38 |
) | |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
Common shares used in computing per share amounts (000s) (3) |
13,224 |
13,224 |
13,220 |
12,892 |
12,064 |
|||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
BALANCE SHEET DATA: |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Current assets |
101,622 |
75,153 |
91,666 |
103,070 |
152,283 |
|||||||||||
Non-current assets |
75,070 |
76,112 |
105,433 |
133,117 |
222,224 |
|||||||||||
|
|
|
|
|
||||||||||||
Total Assets |
176,692 |
151,265 |
197,099 |
236,187 |
374,507 |
|||||||||||
|
|
|
|
|
||||||||||||
Current liabilities |
71,182 |
74,083 |
81,285 |
76,671 |
97,030 |
|||||||||||
Non-current liabilities |
201,386 |
165,978 |
181,692 |
194,752 |
211,770 |
|||||||||||
|
|
|
|
|
||||||||||||
Total Liabilities |
272,568 |
240,061 |
262,977 |
271,423 |
308,800 |
|||||||||||
|
|
|
|
|
||||||||||||
Shareholders' Surplus/(deficit) |
$ |
(95,876 |
) |
$ |
(88,796 |
) |
$ |
(65,878 |
) |
$ |
(35,236 |
) |
$ |
65,707 |
||
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
OTHER DATA: |
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Net cash provided by (used in) operating activities |
11,084 |
(17,074 |
) |
(15,529 |
) |
(12,702 |
) |
(9,172 |
) | |||||||
Net cash provided by (used in) investing activities |
(2,372 |
) |
5,550 |
19,516 |
14,364 |
(74,857 |
) | |||||||||
Net cash provided by (used in) financing activities |
18,061 |
(3,829 |
) |
(2,398 |
) |
(6,377 |
) |
22,267 |
||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
Page 33 | ||
| ||
|
| ||||||||||||
Year Ended December 31, 2002 |
|||||||||||||
|
|||||||||||||
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|||
|
|
|
|
||||||||||
|
(US $ 000's, except per share data) | ||||||||||||
| |||||||||||||
Income Statement data: |
|
|
|
|
|||||||||
Net Revenues |
17,261 |
27,096 |
17,177 |
31,068 |
|||||||||
Operating Profit/(Loss) |
(4,884 |
) |
696 |
20,528 |
(2,931 |
) | |||||||
Net Profit/(Loss) |
(11,903 |
) |
(12,316 |
) |
14,842(1 |
) |
(4,807 |
) | |||||
Net Profit/(Loss) per Share: |
|
|
|
|
|||||||||
Basic |
(0.90 |
) |
(0.93 |
) |
1.12 |
(0.36 |
) | ||||||
Diluted |
- |
- |
(0.09 |
) |
- |
||||||||
|
|
|
|
|
|
| ||||||||||||
Year Ended December 31, 2001 | |||||||||||||
|
|||||||||||||
|
First Quarter |
|
|
Second Quarter |
|
|
Third Quarter |
|
|
Fourth Quarter |
|||
|
|
|
|
||||||||||
|
(US $ 000's, except for share data) | ||||||||||||
| |||||||||||||
Income Statement data: |
|
|
|
|
|||||||||
Net Revenues |
16,005 |
20,603 |
13,590 |
23,040 |
|||||||||
Operating Loss |
(7,906 |
) |
(2,588 |
) |
(8,565 |
) |
(2,968 |
) | |||||
Net Loss |
(3,286 |
) |
(785 |
) |
(14,576 |
) |
(3,464 |
) | |||||
Net Loss per Share: |
|
|
|
|
|||||||||
Basic and Diluted |
(0.25 |
) |
(0.06 |
) |
(1.10 |
) |
(0.26 |
) |
Page 34 | ||
| ||
Page 35 | ||
| ||
Page 36 | ||
| ||
Page 37 | ||
| ||
Page 38 | ||
| ||
Page 39 | ||
| ||
|
| ||||||
At December 31, (US$ 000s) |
| ||||||
|
|
|
2002 |
|
|
2001 |
|
|
|
||||||
|
|
|
|||||
Consolidated Balance Sheet Items Current Assets |
|
|
|||||
Advances to related parties |
|
|
|||||
Boris Fuchsmann |
$ |
1,000 |
$ |
1,600 |
|||
Adrian Sarbu |
- |
170 |
|||||
Affiliates of Media Vision |
13 |
96 |
|||||
Affiliates of Innova and Studio 1+1 |
1,188 |
1,004 |
|||||
Affiliates of POP TV |
647 |
700 |
|||||
Affiliates of POP TV d.o.o. |
45 |
- |
|||||
|
|
|
|||||
|
|
|
|||||
Other |
949 |
3,776 |
|||||
|
|
||||||
|
$ |
3,842 |
$ |
7,346 |
|||
|
|
||||||
|
|
|
|||||
Consolidated Balance Sheet Items Non-Current Assets |
|
|
|||||
Loans to related parties |
|
|
|||||
Boris Fuchsmann |
$ |
2,838 |
$ |
2,850 |
|||
Inter Media s.r.l. |
1,302 |
1,302 |
|||||
Media Pro Pictures |
1,347 |
1,347 |
|||||
Other |
2,255 |
1,777 |
|||||
|
|
||||||
|
$ |
7,742 |
$ |
7,276 |
|||
|
|
||||||
|
|
|
|||||
Consolidated Balance Sheet Items Current Liabilities |
|
|
|||||
Amounts due from related parties |
|
|
|||||
Tele 59 |
$ |
77 |
$ |
39 |
|||
MMTV |
- |
253 |
|||||
Marijan Jurenec |
- |
25 |
|||||
Affiliates of MPI |
1,022 |
552 |
|||||
Affiliates of Media Vision |
262 |
286 |
|||||
|
|
||||||
|
$ |
1,361 |
$ |
1,155 |
|||
|
|
||||||
|
|
|
Page 40 | ||
| ||
Average share price for 26 trading days preceding June 15, 2004 |
Number of warrants at $5.0075 |
$33.46 or above |
Zero |
Between $19.23 and $33.46 |
Zero-348,000 dependent on share price |
Below $19.23 |
348,000 warrants |
Page 41 | ||
| ||
Page 42 | ||
| ||
Page 43 | ||
| ||
|
|
| |||||||||||||||||
Balance Sheet As At December 31, |
|
Income Statement Weighted Average for the years ended December 31, |
|||||||||||||||||
|
2002 |
|
|
2001 |
|
|
% change |
|
|
2002 |
|
|
2001 |
|
|
% change |
|||
|
|
|
|
|
|
||||||||||||||
Euro equivalent of $1.00 |
0.95 |
1.12 |
15.2 |
% |
1.06 |
1.12 |
5.4 |
% | |||||||||||
Czech koruna equivalent of $1.00 |
30.14 |
36.27 |
16.9 |
% |
32.74 |
38.04 |
13.9 |
% | |||||||||||
Romanian lei equivalent of $1.00 |
33,500 |
31,597 |
(6.0) |
% |
33,043 |
29,032 |
(13.8) |
% | |||||||||||
Slovak koruna equivalent of $1.00 |
40.04 |
48.47 |
17.4 |
% |
45.10 |
48.51 |
7.0 |
% | |||||||||||
Slovenian tolar equivalent of $1.00 |
221.07 |
250.95 |
11.9 |
% |
240.15 |
243.99 |
1.6 |
% | |||||||||||
Ukrainian hryvna equivalent of $1.00 |
5.33 |
5.30 |
(0.6) |
% |
5.33 |
5.29 |
(0.8) |
% |
Page 44 | ||
| ||
|
As at December 31, 2002 |
As at December 31, 2001 |
|||||
Current tax liabilities |
$ |
11,699,000 |
$ |
9,421,000 |
|||
Estimated interest and penalties on overdue tax liabilities |
$ |
11,570,000 |
$ |
11,706,000 |
Page 45 | ||
| ||
Page 46 | ||
| ||
Page 47 | ||
| ||
Country |
Total Outstanding (US $ 000's) |
| ||
Ukraine |
$ |
18,127 |
||
Romania |
45,973 |
|||
Slovenia |
(1) |
13,063 |
||
Slovak Republic |
489 |
|||
Czech Republic |
162 |
|||
|
||||
Total |
77,814 |
|||
|
Page 48 | ||
| ||
Contractual Obligations |
Payments due by period ($ 000's) | |||||||||||||||
|
||||||||||||||||
|
Total |
|
|
Less than 1 year |
|
|
1-3 years |
|
|
3-5 years |
|
|
More than 5 years |
|||
|
|
|
|
|
||||||||||||
Long-Term Debt |
$ |
244,730 |
$ |
18,807 |
$ |
215,859 |
$ |
1,011 |
$ |
9,053 |
||||||
Capital Lease Obligations |
818 |
137 |
260 |
137 |
284 |
|||||||||||
Operating Leases |
6,554 |
1,443 |
1,266 |
1,171 |
2,674 |
|||||||||||
Unconditional Purchase Obligations |
- |
- |
- |
- |
- |
|||||||||||
Other Long-Term Obligations |
- |
- |
- |
- |
- |
|||||||||||
Total Contractual Obligations |
$ |
252,102 |
$ |
20,387 |
$ |
217,385 |
$ |
2,319 |
$ |
12,011 |
Page 49 | ||
| ||
Page 50 | ||
| ||
|
For the Years Ended December 31, (US$ 000's) | ||||||
|
2002 |
|
|
2001 |
|||
Arbitration Related Proceeds |
$ |
(28,953 |
) |
$ |
- |
||
Arbitration Related Costs |
12,351 |
4,509 |
|||||
|
|
||||||
Net Arbitration Related (Proceeds)/Costs |
$ |
(16,602 |
) |
$ |
4,509 |
||
|
|
||||||
|
|
For the Years Ended December 31, (US$ 000's) |
| ||||||||
|
2002 |
|
|
2001 |
|
|
Change |
|||
Slovak operations |
$ |
4,169 |
$ |
1,832 |
$ |
2,337 |
||||
Ukrainian operations |
(587 |
) |
5,305 |
(5,892 |
) | |||||
Romanian operations |
(1,611 |
) |
- |
(1,611 |
) | |||||
Slovenian operations |
890 |
- |
890 |
|||||||
|
|
|
||||||||
Equity in income/(loss) of unconsolidated affiliates |
$ |
2,861 |
$ |
7,137 |
$ |
(4,276 |
) | |||
|
|
|
Page 51 | ||
| ||
Page 52 | ||
| ||
Page 53 | ||
| ||
|
For the Years Ended December 31, (US$ 000's) | ||||||
|
2001 |
|
|
2000 |
| ||
Arbitration Related Proceeds |
$ |
- |
$ |
- |
|||
Arbitration Related Costs |
4,509 |
2,839 |
|||||
|
|
||||||
Net Arbitration Related (Proceeds)/Costs |
$ |
4,509 |
$ |
2,839 |
|||
|
|
||||||
|
|
For the Years Ended December 31,
(US$ 000's) |
| ||||||||
|
2001 |
|
|
2000 |
|
|
Change |
|||
Slovak operations |
$ |
1,832 |
$ |
(1,773 |
) |
$ |
3,605 |
|||
Ukrainian operations |
5,305 |
1,259 |
4,046 |
|||||||
|
|
|
||||||||
Equity in income/(loss) of unconsolidated affiliates |
$ |
7,137 |
$ |
(514 |
) |
$ |
7,651 |
|||
|
|
|
Page 54 | ||
| ||
Page 55 | ||
| ||
Page 56 | ||
| ||
Expected Maturity Dates |
2003 |
|
|
2004 |
|
|
2005 |
|
|
2006 |
|
|
Thereafter |
|||
|
|
|
|
|
|
|||||||||||
Total Debt in US$ 000's |
|
|
|
|
|
|||||||||||
Fixed Rate |
- |
114,157 |
- |
- |
- |
|||||||||||
Average Interest Rate |
- |
9.7 |
% |
- |
- |
- |
||||||||||
|
|
|
|
|
|
|||||||||||
Total Debt in Euros 000's |
|
|
|
|
|
|||||||||||
Variable Rate |
- |
- |
- |
- |
5,000 |
|||||||||||
Average Interest Rate |
- |
- |
- |
- |
6.00 |
% | ||||||||||
Fixed Rate |
- |
71,502 |
- |
- |
- |
|||||||||||
Average Interest Rate |
- |
8.13 |
% |
- |
- |
- |
||||||||||
|
|
|
|
|
|
|||||||||||
Total Debt in Kc 000's |
|
|
|
|
|
|||||||||||
Variable Rate |
- |
- |
249,764 |
- |
- |
|||||||||||
Average Interest Rate |
- |
- |
5.86 |
% |
- |
- |
Page 57 | ||
| ||
|
|
|
Yearly interest charge if interest rates increase by ($000s): | |||||||||||||||||||
| ||||||||||||||||||||||
Value of Debt as at December 31, 2002
(US$ 000's) |
|
|
Interest Rate as at December 31, 2002 |
|
|
Yearly Interest Charge (US$ 000's) |
|
|
1% |
|
|
2% |
|
|
3% |
|
|
4% |
|
|
5% |
|
|
|
|
|
|
|
|
|
|||||||||||||||
8,304 (Kc 250 million) |
6.25 |
% |
|
$519 |
|
$602 |
|
$685 |
|
$708 |
|
$851 |
|
$934 |
||||||||
5,208 (Euro 5 million) |
6.0 |
% |
|
$312 |
|
$365 |
|
$417 |
|
$469 |
|
$521 |
|
$573 |
Page 58 | ||
| ||
Page 59 | ||
| ||
Page 60 | ||
| ||
Page 61 | ||
| ||
Page 62 | ||
| ||
|
|
| |||||
|
December 31, 2002 |
|
|
December 31, 2001 |
|||
ASSETS |
|
|
|||||
Current Assets |
|
|
|||||
Cash and cash equivalents |
$ |
49,644 |
$ |
22,053 |
|||
Restricted cash |
6,168 |
3,562 |
|||||
Accounts receivable (net of allowances of $7, 481, $8,219) |
21,357 |
19,451 |
|||||
Program rights costs |
10,997 |
8,754 |
|||||
Advances to related parties |
3,842 |
7,346 |
|||||
Asset held for sale |
5,473 |
8,679 |
|||||
Other short-term assets |
4,141 |
5,308 |
|||||
|
|
||||||
Total current assets |
101,622 |
75,153 |
|||||
|
|
||||||
Loans to related parties |
7,742 |
7,276 |
|||||
Investments in/and advances to unconsolidated affiliates |
21,637 |
21,502 |
|||||
Property, plant and equipment (net of depreciation of $47,244, $41,225) |
14,078 |
16,642 |
|||||
Program rights costs |
6,982 |
6,497 |
|||||
License costs and other intangibles (net of amortization of $9,928, $9,867) |
2,144 |
2,119 |
|||||
Goodwill (net of amortization of $26,801, $26,590) |
18,201 |
16,811 |
|||||
Other assets |
4,286 |
5,265 |
|||||
|
|
||||||
Total Assets |
$ |
176,692 |
$ |
151,265 |
|||
|
|
Page 63 | ||
| ||
|
December 31, 2002 |
|
|
December 31, 2001 |
|||
LIABILITES AND SHAREHOLDERS' DEFICIT |
|
|
|||||
Current Liabilities: |
|
|
|||||
Short term payables to bank |
$ |
- |
$ |
1,576 |
|||
Accounts payable and accrued liabilities |
36,856 |
37,582 |
|||||
Duties and other taxes payable |
18,088 |
21,127 |
|||||
Income taxes payable |
5,181 |
602 |
|||||
Current portion of credit facilities and obligations under capital leases |
8,440 |
10,785 |
|||||
Investments payable |
1,256 |
1,256 |
|||||
Advances from related parties |
1,361 |
1,155 |
|||||
|
|
||||||
Total current liabilities |
71,182 |
74,083 |
|||||
NON-CURRENT LIABILITES |
|
|
|||||
Long-term portion of credit facilities and obligations under capital leases |
20,518 |
707 |
|||||
$100,000,000 9 3/8% Senior Notes due 2004 |
99,964 |
99,942 |
|||||
Euro 71,581,961 8 1/8% Senior Notes due 2004 |
75,036 |
63,621 |
|||||
Other liabilities |
3,849 |
1,618 |
|||||
|
|
||||||
Total non-current liabilities |
199,367 |
165,888 |
|||||
Minority interests in consolidated subsidiaries. |
2,019 |
90 |
|||||
Commitments and Contingencies (Note 12) |
|
|
|||||
SHAREHOLDERS' DEFICIT: |
|
|
|||||
Class A Common Stock $0.08 par value: |
|
|
|||||
Authorized: 100,000,000 shares at December 31, 2002 and December 31, 2001; issued and outstanding : 9,256,884 at December 31, 2002 and 2001 |
740 |
740 |
|||||
Class B Common Stock $0.08 par value: |
|
|
|||||
Authorized: 15,000,000 shares at December 31, 2002 and December 31, 2001; issued and outstanding : 3,967,368 at December 31, 2002 and 2001 |
318 |
318 |
|||||
Additional paid-in capital |
360,401 |
355,591 |
|||||
Accumulated deficit |
(452,011 |
) |
(437,827 |
) | |||
Accumulated other comprehensive loss |
(5,324 |
) |
(7,618 |
) | |||
|
|
||||||
Total shareholders' deficit |
(95,876 |
) |
(88,796 |
) | |||
Total liabilities and shareholders' deficit |
$ |
176,692 |
$ |
151,265 |
|||
|
|
Page 64 | ||
| ||
|
For the Years Ended December 31, | |||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
Net revenues |
$ |
92,602 |
$ |
73,238 |
$ |
76,813 |
||||
STATION EXPENSES: |
|
|
|
|||||||
Operating costs and expenses |
36,099 |
36,323 |
37,160 |
|||||||
Amortization of programming rights |
20,205 |
12,815 |
15,994 |
|||||||
Depreciation of station fixed assets and other intangibles |
7,751 |
11,331 |
24,654 |
|||||||
Write down in value of asset held for sale |
3,446 |
- |
- |
|||||||
|
|
|
||||||||
Total station operating costs and expenses |
67,501 |
60,469 |
77,808 |
|||||||
Selling, general and administrative expenses |
13,183 |
19,992 |
19,402 |
|||||||
CORPORATE EXPENSES: |
|
|
|
|||||||
Corporate operating costs and development expenses |
11,357 |
8,548 |
8,578 |
|||||||
Net arbitration related (proceeds)/costs |
(16,602 |
) |
4,509 |
2,839 |
||||||
Stock based compensation |
3,754 |
- |
- |
|||||||
Amortization of goodwill |
- |
1,747 |
1,670 |
|||||||
|
|
|
||||||||
Operating income/(loss) |
13,409 |
(22,027 |
) |
(33,484 |
) | |||||
Loss on write down of investment |
(2,685 |
) |
- |
- |
||||||
Equity in income/(loss) of unconsolidated affiliates |
2,861 |
7,137 |
(514 |
) | ||||||
Net interest and other expense |
(13,912 |
) |
(17,759 |
) |
(18,245 |
) | ||||
Change in fair value of derivative |
1,108 |
(1,576 |
) |
- |
||||||
Gain on sale of subsidiaries |
- |
1,802 |
- |
|||||||
Foreign currency exchange gain/(loss), net |
(10,231 |
) |
1,651 |
(2,286 |
) | |||||
Gain on sale of investment |
- |
- |
17,186 |
|||||||
Gain on discharge of obligation |
- |
5,188 |
- |
|||||||
|
|
|
||||||||
Income/(loss) before provision for income taxes, minority interest and discontinued operations |
(9,450 |
) |
(25,584 |
) |
(37,343 |
) | ||||
Provision for income taxes |
(4,135 |
) |
(1,381 |
) |
(96 |
) | ||||
|
|
|
||||||||
Income/(loss) before minority interest and discontinued operations |
(13,585 |
) |
(26,965 |
) |
(37,439 |
) | ||||
Minority interest in (income)/loss of consolidated subsidiaries |
(599 |
) |
2,138 |
(59 |
) | |||||
|
|
|
||||||||
Net income/(loss) from continuing operations |
(14,184 |
) |
(24,827 |
) |
(37,498 |
) | ||||
|
|
|
||||||||
Discontinued operations: Gain on disposal of discontinued operations (Hungary) |
- |
2,716 |
- |
|||||||
|
|
|
||||||||
Net income/(loss) |
$ |
(14,184 |
) |
$ |
(22,111 |
) |
$ |
(37,498 |
) | |
|
|
|
||||||||
PER SHARE DATA: |
|
|
|
|||||||
Net income/(loss) per share |
|
|
|
|||||||
Continuing operations Basic and Diluted |
$ |
(1.07 |
) |
$ |
(1.88 |
) |
$ |
(2.84 |
) | |
Discontinued operations Basic and Diluted |
- |
0.21 |
- |
|||||||
|
|
|
||||||||
Total |
$ |
(1.07 |
) |
$ |
(1.67 |
) |
$ |
(2.84 |
) | |
|
|
|
||||||||
Weighted average common shares used in computing per share amounts: |
|
|
|
|||||||
Basic and Diluted (000s) |
13,224 |
13,224 |
13,220 |
|||||||
|
|
|
Page 65 | ||
| ||
|
Compre-hensive Income/(Loss) |
|
|
Class A Common Stock |
|
|
Class B Common Stock |
|
|
Additional Paid-In Capital |
|
|
Accum-ulated Deficit |
|
|
Accu-mulated Other Compre-hensive Income/(Loss) |
|
|
Total Share-holders' Surplus/ (Deficit) |
| ||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 1999 |
|
185 |
79 |
356,385 |
(378,218 |
) |
(13,667 |
) |
(35,236 |
) | ||||||||||||
Stock Dividends |
|
555 |
239 |
(794 |
) |
|
|
- |
||||||||||||||
Comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Net income/(loss) |
(37,498 |
) |
|
|
|
(37,498 |
) |
|
(37,498 |
) | ||||||||||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Unrealized translation adjustments |
6,856 |
|
|
|
|
6,856 |
6,856 |
|||||||||||||||
|
||||||||||||||||||||||
Comprehensive income/(loss) |
(30,642 |
) |
|
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||||||
Stock issued: |
|
|
|
|
|
|
|
|||||||||||||||
Capital contributed by shareholders |
|
- |
- |
- |
- |
- |
- |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 2000 |
|
740 |
318 |
355,591 |
(415,716 |
) |
(6,811 |
) |
(65,878 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Net income/(loss) |
(22,111 |
) |
|
|
|
(22,111 |
) |
|
|
|||||||||||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Unrealized translation adjustments |
(807 |
) |
|
|
|
|
(807 |
) |
(807 |
) | ||||||||||||
|
||||||||||||||||||||||
Comprehensive income/(loss) |
(22,918 |
) |
|
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||||||
Stock issued: |
|
|
|
|
|
|
|
|||||||||||||||
Capital contributed by shareholders |
|
- |
- |
- |
- |
- |
- |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 2001 |
|
740 |
318 |
355,591 |
(437,827 |
) |
(7,618 |
) |
(88,796 |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Stock Based Compensation |
|
|
|
3,754 |
|
|
3,754 |
|||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Warrants Issued |
|
|
|
1,048 |
|
|
1,048 |
|||||||||||||||
Comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Net income/(loss) |
(14,184 |
) |
|
|
|
(14,184 |
) |
|
(14,184 |
) | ||||||||||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Unrealized translation adjustments |
2,294 |
|
|
|
|
2,294 |
2,294 |
|||||||||||||||
Comprehensive income/(loss) |
(11,890 |
) |
|
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||||||
Stock issued: |
|
|
|
|
|
|
|
|||||||||||||||
Capital contributed by shareholders |
|
- |
- |
8 |
- |
- |
8 |
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 2002 |
|
$ |
740 |
$ |
318 |
$ |
360,401 |
$ |
(452,011 |
) |
$ |
(5,324 |
) |
$ |
(95,876 |
) | ||||||
|
|
|
|
|
|
Page 66 | ||
| ||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||||
Net income/(loss) |
$ |
(14,184 |
) |
$ |
(22,111 |
) |
$ |
(37,498 |
) | |
Adjustments to reconcile net income/(loss) to net cash used in operating activities: |
|
|
|
|||||||
Equity in income/(loss) of unconsolidated affiliates |
(2,861 |
) |
(7,137 |
) |
514 |
|||||
Depreciation and amortization |
29,194 |
26,674 |
42,864 |
|||||||
Loss on write down of investment |
2,685 |
- |
- |
|||||||
Loss on write down of assets held for resale |
3,446 |
- |
- |
|||||||
Gain on discharge of obligation |
- |
(5,188 |
) |
- |
||||||
Gain on disposal of investment |
- |
- |
(17,186 |
) | ||||||
Stock based compensation |
3,754 |
- |
- |
|||||||
Minority interest in loss of consolidated subsidiaries |
599 |
(2,138 |
) |
59 |
||||||
Foreign currency exchange loss/(gain), net. |
10,231 |
(1,651 |
) |
2,286 |
||||||
Net change in: |
|
|
|
|||||||
Accounts receivable |
(826 |
) |
3,819 |
(7,967 |
) | |||||
Program rights costs |
(23,280 |
) |
(15,647 |
) |
(15,518 |
) | ||||
Advances from affiliates.. |
163 |
1,855 |
10,756 |
|||||||
Other short-term assets |
787 |
7,876 |
2,238 |
|||||||
Accounts payable and accrued liabilities |
1,480 |
(7,093 |
) |
4,736 |
||||||
Short term payables to bank. |
(1,576 |
) |
1,576 |
- |
||||||
Income and other taxes payable |
1,472 |
2,091 |
(813 |
) | ||||||
|
|
|
||||||||
Net cash provided by/(used in) operating activities |
11,084 |
(17,074 |
) |
(15,529 |
) | |||||
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||||
|
|
|
|
|||||||
Other investments |
(271 |
) |
- |
(13,163 |
) | |||||
Cash proceeds from disposal of discontinued operations |
- |
- |
4,416 |
|||||||
Cash proceeds from disposal of investments |
- |
- |
37,250 |
|||||||
Restricted cash |
(2,606 |
) |
(2,110 |
) |
3,161 |
|||||
Acquisition of fixed assets |
(2,690 |
) |
(2,333 |
) |
(617 |
) | ||||
Proceeds from disposal of fixed assets |
536 |
2,371 |
- |
|||||||
Loans and advances to affiliates |
3,243 |
6,892 |
(8,171 |
) | ||||||
License costs, other assets and intangibles |
(584 |
) |
730 |
(3,360 |
) | |||||
|
|
|
||||||||
Net cash provided by/(used in) investing activities |
(2,372 |
) |
5,550 |
19,516 |
||||||
|
|
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||||
Borrowings on credit facilities and payments under capital leases |
16,803 |
(5,899 |
) |
(2,087 |
) | |||||
Receipts from/(payments to) minority shareholders |
1,320 |
2,070 |
(311 |
) | ||||||
Capital contributed by shareholders |
8 |
- |
- |
|||||||
Other long-term liabilities |
(70 |
) |
- |
- |
||||||
|
|
|
||||||||
Net cash received from/(used in) financing activities |
18,061 |
(3,829 |
) |
(2,398 |
) | |||||
|
|
|
||||||||
IMPACT OF EXCHANGE RATE FLUCTUATIONS ON CASH |
818 |
(104 |
) |
(1,069 |
) | |||||
|
|
|
||||||||
Net increase/(decrease) in cash and cash equivalents |
27,591 |
(15,457 |
) |
520 |
||||||
CASH EQUIVALENTS, beginning of period |
22,053 |
37,510 |
36,990 |
|||||||
CASH EQUIVALENTS, end of period |
$ |
49,644 |
$ |
22,053 |
$ |
37,510 |
||||
|
|
|
||||||||
|
|
|
|
|||||||
SUPPLEMENTAL INFORMATION OF CASH FLOW INFORMATION: |
|
|
|
|||||||
Cash paid for interest |
$ |
14,536 |
$ |
15,106 |
$ |
16,664 |
||||
Cash paid for income taxes (net of refunds) |
$ |
326 |
$ |
261 |
$ |
623 |
||||
SUPPLEMENTAL INFORMATION OF NON-CASH FINANCING TRANSACTIONS: |
|
|
|
|||||||
Acquisition of property, plant and equipment under capital lease |
$ |
- |
$ |
344 |
$ |
195 |
Page 67 | ||
| ||
Page 68 | ||
| ||
Page 69 | ||
| ||
Page 70 | ||
| ||
Page 71 | ||
| ||
Page 72 | ||
| ||
Page 73 | ||
| ||
Page 74 | ||
| ||
Page 75 | ||
| ||
For the Year Ended |
For the Year Ended |
||||||||||||
|
|
||||||||||||
|
Net Income/(Loss) |
|
|
Net Income/(Loss) per Share |
|
|
Net Income/(Loss) (US$ 000's) |
|
|
Net Income/(Loss) per Share |
|||
|
|
|
|
||||||||||
Amounts as reported |
$ |
(22,111 |
) |
$ |
(1.88 |
) |
$ |
(37,498 |
) |
$ |
(2.84 |
) | |
Amortization, net of income taxes |
1,747 |
0.13 |
1,670 |
0.13 |
|||||||||
Total |
$ |
(20,364 |
) |
$ |
(1.75 |
) |
$ |
(35,828 |
) |
$ |
(2.71 |
) |
|
For the Year Ended December 31, 2002 (US$ 000's) | |||||||||
|
Gross Amount |
|
|
Accumulated Amortization |
|
|
Net Amount |
|||
License costs and other intangibles: |
|
|
|
|||||||
License acquisition cost |
$ |
5,758 |
$ |
(4,252 |
) |
$ |
1,506 |
|||
Broadcast license cost |
2,203 |
(2,033 |
) |
170 |
||||||
Software license cost |
4,109 |
(3,641 |
) |
468 |
||||||
|
|
|
||||||||
Total |
$ |
12,070 |
$ |
(9,926 |
) |
$ |
2,144 |
|||
|
|
|
||||||||
|
|
|
|
|||||||
Goodwill |
|
|
|
|||||||
Slovenian operations |
$ |
20,146 |
$ |
(6,041 |
) |
$ |
14,105 |
|||
Ukrainian operations |
22,096 |
(18,000 |
) |
4,096 |
||||||
Other |
- |
- |
- |
|||||||
|
|
|
||||||||
Total |
$ |
42,242 |
$ |
(24,041 |
) |
$ |
18,201 |
|||
|
|
|
|
For the Year Ended December 31, 2001 (US$ 000's) | |||||||||
|
Gross Amount |
|
|
Accumulated Amortization |
|
|
Net Amount |
|||
License costs and other intangibles: |
|
|
|
|||||||
License acquisition cost |
$ |
6,592 |
$ |
(5,086 |
) |
$ |
1,506 |
|||
Broadcast license cost |
3,043 |
(2,889 |
) |
154 |
||||||
Software license cost |
2,352 |
(1,893 |
) |
459 |
||||||
|
|
|
||||||||
Total |
$ |
11,987 |
$ |
(9,868 |
) |
$ |
2,119 |
|||
|
|
|
||||||||
|
|
|
|
|||||||
Goodwill |
|
|
|
|||||||
Slovenian operations |
$ |
18,545 |
$ |
(5,830 |
) |
$ |
12,715 |
|||
Ukrainian operations |
22,096 |
(18,000 |
) |
4,096 |
||||||
|
|
|
||||||||
Other |
- |
- |
- |
|||||||
|
|
|
||||||||
Total |
$ |
40,641 |
$ |
(23,830 |
) |
$ |
16,811 |
|||
|
|
|
Page 76 | ||
| ||
|
For the Year Ended December 31, 2000 (US$ 000's) | |||||||||
|
Gross Amount |
|
|
Accumulated Amortization |
|
|
Net Amount |
|||
License costs and other intangibles: |
|
|
|
|||||||
License acquisition cost |
$ |
5,357 |
$ |
(4,367 |
) |
$ |
990 |
|||
Broadcast license cost |
440 |
(327 |
) |
113 |
||||||
Software license cost |
2,970 |
(1,915 |
) |
1,055 |
||||||
|
|
|
||||||||
Total |
$ |
8,767 |
$ |
(6,609 |
) |
$ |
2,158 |
|||
|
|
|
||||||||
|
|
|
|
|||||||
Goodwill |
|
|
|
|||||||
Slovenian operations |
$ |
19,515 |
$ |
(3,589 |
) |
$ |
15,926 |
|||
Ukrainian operations |
22,096 |
(17,180 |
) |
4,916 |
||||||
|
|
|||||||||
Other |
8,968 |
(8,901 |
) |
67 |
||||||
|
|
|
||||||||
Total |
$ |
50,579 |
$ |
(29,670 |
) |
$ |
20,909 |
|||
|
|
|
Year ending December 31,
($ in 000s) |
| |||||||||||||||
|
2003 |
|
|
2004 |
|
|
2005 |
|
|
2006 |
|
|
2007 |
|||
|
|
|
|
|
||||||||||||
License costs and other intangibles: |
|
|
|
|
|
|||||||||||
License acquisition cost |
- |
- |
- |
- |
- |
|||||||||||
Broadcast license cost |
- |
- |
- |
- |
- |
|||||||||||
Software license cost |
117 |
117 |
117 |
117 |
- |
|||||||||||
|
|
|
|
|
|
|||||||||||
Total |
117 |
117 |
117 |
117 |
- |
|||||||||||
|
|
|
|
|
|
December 31 |
||||||||||
|
||||||||||
|
Useful Lives Years |
|
|
2002
US$ 000's |
|
|
2001
US$ 000's |
|||
|
|
|
||||||||
Land and buildings |
25-50 |
$ |
9,949 |
$ |
8,903 |
|||||
Station machinery, fixtures and equipment |
4-8 |
47,171 |
44,587 |
|||||||
Other equipment |
3-8 |
3,971 |
2,216 |
|||||||
Construction in progress |
- |
231 |
2,161 |
|||||||
|
|
|||||||||
|
|
61,322 |
57,867 |
|||||||
Less Accumulated depreciation |
|
(47,244 |
) |
(41,225 |
) | |||||
|
|
|||||||||
|
|
$ |
14,078 |
$ |
16,642 |
|||||
|
|
|||||||||
|
|
|
|
|||||||
Assets held under capital lease |
|
|
|
|||||||
Cost |
|
$ |
1,048 |
$ |
999 |
|||||
|
|
|||||||||
Depreciation |
|
(167 |
) |
(96 |
) | |||||
|
|
|||||||||
Net Book Value |
|
$ |
881 |
$ |
903 |
|||||
|
|
Page 77 | ||
| ||
|
| ||||||
December 31, |
|||||||
|
2002
US$ 000's |
|
|
2001
US$ 000's |
|||
Current: |
|
|
|||||
VAT recoverable |
$ |
118 |
$ |
318 |
|||
Other |
4,023 |
4,990 |
|||||
|
|
||||||
|
$ |
4,141 |
$ |
5,308 |
|||
|
|
||||||
|
|
|
|||||
Long term: |
|
|
|||||
Satellite transponder deposits |
$ |
852 |
$ |
773 |
|||
(See Note 12, "Commitments and Contingencies") |
|
|
|||||
Capitalized debt costs |
2,184 |
2,451 |
|||||
Other |
1,250 |
2,041 |
|||||
|
|
||||||
|
$ |
4,286 |
$ |
5,265 |
|||
|
|
For the Year Ended December 31 (US$ 000's) |
||||
|
2002 |
|||
Income taxes at Netherlands Rates (35% for all years) |
$ |
(3,308 |
) | |
Difference between Netherlands rates and rates applicable to international subsidiaries |
4,378 |
|||
Income tax credits |
- |
|||
Change in valuation allowance |
65 |
|||
Other (Netherlands tax settlement) |
3,000 |
|||
|
||||
Income Tax Provision |
$ |
4,135 |
||
|
Page 78 | ||
| ||
|
For the Year Ended December 31, (US$ 000's) | |||
|
2002 |
|||
Assets: |
|
|||
Tax benefit of loss carry forwards and other tax credits |
$ |
18,498 |
||
Property, plant and equipment |
- |
|||
|
|
|||
Liabilities: |
|
|||
Property, plant and equipment |
(268 |
) | ||
|
||||
|
|
|||
Gross deferred income tax assets |
$ |
18,230 |
||
|
|
|||
Valuation allowance: |
(18,230 |
) | ||
|
||||
|
|
|||
Net deferred income tax assets / (liability): |
$ |
Nil |
||
|
December 31 |
|||||||
|
|||||||
|
2002 |
|
|
2001 |
|||
|
|
||||||
|
US$ 000's |
|
|
US$ 000's |
|||
|
|
||||||
Short Term: |
|
|
|||||
|
|
|
|||||
Payable to other |
$ |
1,256 |
$ |
1,256 |
|||
|
|
||||||
|
|
|
December 31, |
|||||||
|
|||||||
|
2002
US$ 000's |
|
|
2001
US$ 000's |
|||
|
|
||||||
CME B.V. |
|
|
|||||
GoldenTree Asset Management Facility |
(a) |
$ |
14,193 |
$ |
- |
||
Ceska Sporitelna Loan |
(b) |
8,304 |
7,028 |
||||
|
|
|
|||||
Romanian Operations |
|
|
|||||
Long-term loan |
(c) |
- |
989 |
||||
Overdraft Facility |
(d) |
- |
2,660 |
||||
Slovenian Operations |
|
|
|||||
Long-term loan |
(e) |
5,643 |
- |
||||
Capital lease, net of interest, and unsecured short-term loans |
582 |
530 |
|||||
Ukrainian Operations |
|
|
|||||
Capital lease, net of interest, and unsecured short-term loans |
(f) |
236 |
285 |
||||
|
|
||||||
Less current maturities |
(8,440 |
) |
(10,785 |
) | |||
|
|
||||||
|
$ |
20,518 |
$ |
707 |
|||
|
|
Page 79 | ||
| ||
Page 80 | ||
| ||
|
Total
US$ 000's |
|||
|
|
|||
2003 |
$ |
- |
||
2004 |
14,193 |
|||
2005 |
8,304 |
|||
2006 |
- |
|||
2007 |
- |
|||
2008 |
- |
|||
2009 |
5,208 |
|||
|
|
|||
Total |
$ |
27,705 |
||
|
|
Dollar Note |
|
Euro Note |
|
| ||
|
Redemption Price |
|
Redemption Price |
|
| ||
2003 and thereafter |
100% |
|
100% |
Page 81 | ||
| ||
Page 82 | ||
| ||
|
December 31, 2002 | ||||
| |||||
|
Shares |
|
Weighted Average Exercise Price $ |
|
Option Price $ |
Outstanding at start of year |
1,037,458 |
|
15.12 |
|
0.31 67.00 |
Granted |
233,000 |
|
4.15 |
|
3.92 4.28 |
Exercised |
(5,000) |
|
1.67 |
|
1.67 |
Forfeited |
(13,600) |
|
45.03 |
|
40.00 46.00 |
|
|||||
Outstanding at end of year |
1,251,858 |
|
12.81 |
|
0.31 67.00 |
|
December 31, 2001 | ||||
| |||||
|
Shares |
|
Weighted Average Exercise Price $ |
|
Option Price $ |
Outstanding at start of year |
979,998 |
|
18.56 |
|
0.40 67.00 |
Granted |
124,000 |
|
0.34 |
|
0.31 0.53 |
Exercised |
(3,500) |
|
0.40 |
|
0.40 |
Forfeited |
(63,040) |
|
40.38 |
|
22.88 67.00 |
|
|||||
Outstanding at end of year |
1,037,458 |
|
15.12 |
|
0.31 67.00 |
|
December 31, 2000 | ||||
| |||||
|
Shares |
|
Weighted Average Exercise Price $ |
|
Option Price $ |
Outstanding at start of year |
1,237,816 |
|
37.16 |
|
0.40 67.00 |
Granted |
693,000 |
|
2.97 |
|
2.97 |
Exercised |
- |
|
- |
|
- |
Forfeited |
(950,818) |
|
31.42 |
|
1.67 67.00 |
|
|||||
Outstanding at end of year |
979,998 |
|
18.56 |
|
0.40 67.00 |
Date of Option Grant |
|
Average Risk Free Interest Rate |
|
| |
1 April 2002 3 year rate |
|
4.29% |
15 May 2002 5 year rate |
|
4.59% |
Page 83 | ||
| ||
Year Ended December 31, |
|||||||||||||
|
|
2002 |
|
|
2001 |
|
|
2000 |
|||||
|
|
|
|||||||||||
|
|
|
|
|
|||||||||
Net Loss from continuing operations |
As Reported |
(14,184 |
) |
(24,827 |
) |
(37,498 |
) | ||||||
|
Pro Forma |
(14,823 |
) |
(25,500 |
) |
(40,150 |
) | ||||||
Net income/(Loss) from discontinued operations |
As Reported |
- |
2,716 |
- |
|||||||||
|
Pro Forma |
- |
2,716 |
- |
|||||||||
Net Loss |
As Reported |
(14,184 |
) |
(22,111 |
) |
(37,498 |
) | ||||||
|
Pro Forma |
(14,823 |
) |
(22,784 |
) |
(40,150 |
) | ||||||
Net Loss Per Common Share from ($) |
As Reported |
(1.07 |
) |
(1.88 |
) |
(2.84 |
) | ||||||
Continuing operations basic and diluted |
Pro Forma |
(1.12 |
) |
(1.93 |
) |
(3.04 |
) | ||||||
Net Loss Per Common Share from ($) |
As Reported |
- |
(0.21 |
) |
- |
||||||||
Discontinued operations basic and diluted |
Pro Forma |
- |
(0.21 |
) |
- |
||||||||
Total net Loss Per Common Share ($) |
As Reported |
(1.07 |
) |
(1.67 |
) |
(2.84 |
) | ||||||
Basic and Diluted |
Pro Forma |
(1.12 |
) |
(1.72 |
) |
(3.04 |
) |
Page 84 | ||
| ||
Page 85 | ||
| ||
Page 86 | ||
| ||
Page 87 | ||
| ||
Page 88 | ||
| ||
|
At December 31, 2002
(US$ 000's) |
|||
|
||||
2003 |
$ |
1,443 |
||
2004 |
633 |
|||
2005 |
633 |
|||
2006 |
633 |
|||
2007 |
538 |
|||
2008 and thereafter |
2,674 |
|||
|
|
|||
Total |
$ |
6,554 |
||
|
|
Voting Interest |
|
|
As at December 31, 2002
(US$ 000's) |
|
|
As at December 31, 2001
(US$ 000's) |
| ||
STS |
49 |
% |
$ |
20,469 |
$ |
21,483 |
||||
CET 21 |
3.125 |
% |
277 |
6 |
||||||
Tele 59 |
10 |
% |
889 |
- |
||||||
Other |
- |
2 |
13 |
|||||||
|
|
|||||||||
|
|
$ |
21,637 |
$ |
21,502 |
|||||
|
|
|
At December 31, (US$ 000's) | ||||||
|
2002 |
|
|
2001 |
|||
|
|
|
|||||
Consolidated Balance Sheet Items Current Assets |
|
|
|||||
Advances to related parties |
|
|
|||||
Boris Fuchsmann |
$ |
1,000 |
$ |
1,600 |
|||
Adrian Sarbu |
- |
170 |
|||||
Affiliates of Media Vision |
13 |
96 |
|||||
Affiliates of Innova and Studio 1+1 |
1,188 |
1,004 |
|||||
Affiliates of POP TV |
647 |
700 |
|||||
Affiliates of POP TV d.o.o. |
45 |
- |
|||||
|
|
|
|||||
|
|
|
|||||
Other |
949 |
3,776 |
|||||
|
|
||||||
|
$ |
3,842 |
$ |
7,346 |
|||
|
|
Page 89 | ||
| ||
|
|
|
|||||
Consolidated Balance Sheet Items Non-Current Assets |
|
|
|||||
Loans to related parties |
|
|
|||||
Boris Fuchsmann |
$ |
2,838 |
$ |
2,850 |
|||
Inter Media s.r.l. |
1,302 |
1,302 |
|||||
Media Pro Pictures |
1,347 |
1,347 |
|||||
Other |
2,255 |
1,777 |
|||||
|
|
||||||
|
$ |
7,742 |
$ |
7,276 |
|||
|
|
||||||
|
|
|
|||||
Consolidated Balance Sheet Items Current Liabilities |
|
|
|||||
Amounts due from related parties |
|
|
|||||
Tele 59 |
$ |
77 |
$ |
39 |
|||
MMTV |
- |
253 |
|||||
Marijan Jurenec |
- |
25 |
|||||
Affiliates of MPI |
1,022 |
552 |
|||||
Affiliates of Media Vision |
262 |
286 |
|||||
|
|
||||||
|
$ |
1,361 |
$ |
1,155 |
|||
|
|
||||||
|
|
|
Page 90 | ||
| ||
Consolidated Statements of Operations Items |
|
|
| |||||||
Year Ended December 31, |
||||||||||
|
||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
|
|
|
||||||||
|
|
|
|
|||||||
Corporate Operating Costs and Development Expenses |
|
|
|
|||||||
Shareholder controlled affiliates |
- |
- |
246 |
Markiza TV |
Studio 1+1 |
||||||||||||
|
|
||||||||||||
At December 31, 2002 |
|
At December 31, 2001 |
|
At December 31, 2002 |
|
At December 31, 2001 |
|||||||
|
|
|
|
||||||||||
|
(US$ 000's) |
|
|
(US$ 000's) |
|
|
(US$ 000's) |
|
|
(US$ 000's) |
| ||
|
|
|
|
||||||||||
Current assets |
$ |
15,596 |
$ |
14,083 |
$ |
5,935 |
$ |
4,241 |
|||||
Non-current assets |
13,254 |
10,768 |
1,033 |
1,290 |
|||||||||
Current liabilities |
(10,734 |
) |
(12,703 |
) |
(8,218 |
) |
(6,194 |
) | |||||
Non-current liabilities |
(2,629 |
) |
(802 |
) |
- |
- |
|||||||
|
|
|
|
||||||||||
Net Assets |
$ |
15,487 |
$ |
11,346 |
$ |
(1,250 |
) |
$ |
(663 |
) | |||
|
|
|
|
Page 91 | ||
| ||
Markiza TV |
|
Studio 1+1 |
| ||||||||||
|
|
|
|
|
| ||||||||
|
|
For the Years Ended |
|
For the Years Ended |
|||||||||
|
|
||||||||||||
|
December 31, 2002 |
|
|
December 31, 2001 |
|
|
December 31, 2002 |
|
|
December 31, 2001 |
| ||
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
(US$ 000's) |
|
|
(US$ 000's) |
|
|
(US$ 000's) |
|
|
(US$ 000's) |
|
|
|
|
|
||||||||||
Net revenues |
$ |
38,397 |
$ |
34,696 |
$ |
20,491 |
$ |
15,865 |
|||||
Operating (loss)/profit |
3,842 |
3,735 |
(51 |
) |
6,887 |
||||||||
Net (loss)/profit |
5,956 |
1,354 |
(587 |
) |
5,305 |
||||||||
Movement in Accumulated other comprehensive income/(loss) |
2,879 |
(228 |
) |
- |
- |
|
At December 31, 2002 (US$ 000's) |
|||
|
||||
2003 |
$ |
137 |
||
2004 |
150 |
|||
2005 |
110 |
|||
2006 |
65 |
|||
2007 |
72 |
|||
2008 and thereafter |
284 |
|||
|
|
|||
Total |
$ |
818 |
||
|
Page 92 | ||
| ||
Page 93 | ||
| ||
Segment Financial Information |
|||||||||||||||||||
|
|||||||||||||||||||
For the Years Ended December 31, |
|||||||||||||||||||
|
|||||||||||||||||||
Net Revenues |
Segment EBITDA |
Segment Broadcast Cash Flow |
|||||||||||||||||
|
|
|
|||||||||||||||||
|
2002 |
|
|
2001 |
|
|
2002 |
|
|
2001 |
|
|
2002 |
|
|
2001 |
|||
|
|
|
|
|
|
||||||||||||||
Station |
|
|
|
|
|
|
|||||||||||||
Romania |
$ |
33,547 |
$ |
32,553 |
$ |
6,347 |
$ |
(2,007 |
) |
$ |
4,607 |
$ |
(3,522 |
) | |||||
Slovak Republic (Markiza TV) |
38,397 |
34,696 |
7,132 |
6,033 |
7,774 |
6,922 |
|||||||||||||
Slovenia (POP TV and Kanal A) |
33,864 |
28,465 |
11,052 |
8,367 |
11,884 |
7,932 |
|||||||||||||
Ukraine (Studio 1+1 Group) |
31,732 |
23,098 |
6,892 |
4,613 |
4,930 |
4,509 |
|||||||||||||
|
|
|
|
|
|
||||||||||||||
Total Combined Operations' Net Revenues / Segment EBITDA |
$ |
137,540 |
$ |
118,812 |
$ |
31,423 |
$ |
17,006 |
$ |
29,195 |
$ |
15,841 |
|||||||
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Reconciliation to Consolidated Statement of Operations: |
|
|
|
|
|
|
|||||||||||||
Consolidated Net Revenues / Income/(loss) before provision for income taxes, minority interest and discontinued operations |
$ |
92,602 |
$ |
73,238 |
$ |
(9,450 |
) |
$ |
(25,584 |
) |
$ |
(9,450 |
) |
$ |
(25,584 |
) | |||
Other Consolidated Entities: |
|
|
|
|
|
|
|||||||||||||
Czech Republic (CNTS) |
(308 |
) |
(1,869 |
) |
900 |
(630 |
) |
900 |
(630 |
) | |||||||||
Write down of asset held for sale |
- |
- |
3,446 |
- |
3,446 |
- |
|||||||||||||
Corporate Expenses |
- |
- |
15,111 |
10,295 |
15,111 |
10,295 |
|||||||||||||
Net Arbitration (Proceeds)/Costs |
- |
- |
(16,602 |
) |
4,509 |
(16,602 |
) |
4,509 |
|||||||||||
Unconsolidated Affiliates: |
|
|
|
|
|
|
|||||||||||||
Ukraine (Studio 1+1 Group) |
6,849 |
12,747 |
276 |
7,495 |
276 |
7,495 |
|||||||||||||
Slovak Republic (Markiza TV) |
38,397 |
34,696 |
7,132 |
6,033 |
7,132 |
6,033 |
|||||||||||||
Other operations (Hungary) |
- |
- |
- |
- |
- |
- |
|||||||||||||
Station Depreciation |
- |
- |
7,751 |
11,331 |
7,751 |
11,331 |
|||||||||||||
Loss on write down of investment |
- |
- |
2,685 |
- |
2,685 |
- |
|||||||||||||
Equity in income/(loss) of unconsolidated affiliates |
- |
- |
(2,861 |
) |
(7,137 |
) |
(2,861 |
) |
(7,137 |
) | |||||||||
Net interest and other expense |
- |
- |
13,912 |
17,759 |
13,912 |
17,759 |
|||||||||||||
Change in fair value of derivative |
- |
- |
(1,108 |
) |
1,576 |
(1,108 |
) |
1,576 |
|||||||||||
Gain on sale of subsidiaries |
- |
- |
- |
(1,802 |
) |
- |
(1,802 |
) | |||||||||||
Foreign currency exchange gain/(loss), net |
- |
- |
10,231 |
(1,651 |
) |
10,231 |
(1,651 |
) | |||||||||||
Gain on sale of investment |
- |
- |
- |
- |
- |
- |
|||||||||||||
Gain on discharge of obligation |
- |
- |
- |
(5,188 |
) |
- |
(5,188 |
) | |||||||||||
Cash paid for programming |
- |
- |
- |
- |
(31,080 |
) |
(22,460 |
) | |||||||||||
Programming Amortization |
- |
- |
- |
- |
28,852 |
21,295 |
|||||||||||||
|
|
||||||||||||||||||
Total Combined Operations' Net Revenues / Segment EBITDA |
$ |
137,540 |
$ |
118,812 |
$ |
31,423 |
$ |
17,006 |
$ |
29,195 |
$ |
15,841 |
|||||||
|
|
|
|
|
|
Page 94 | ||
| ||
Segment Financial Information |
|||||||||||||||||||
|
|||||||||||||||||||
For the Years Ended December 31, |
|||||||||||||||||||
|
|||||||||||||||||||
Net Revenues |
Segment EBITDA |
Segment Broadcast Cash Flow |
|||||||||||||||||
|
|
|
|||||||||||||||||
|
2001 |
|
|
2000 |
|
|
2001 |
|
|
2000 |
|
|
2001 |
|
|
2000 |
|||
|
|
|
|
|
|
||||||||||||||
Station |
|
|
|
|
|
|
|||||||||||||
Romania |
$ |
32,553 |
$ |
39,591 |
$ |
(2,007 |
) |
$ |
1,564 |
$ |
(3,522 |
) |
1,584 |
||||||
Slovak Republic (Markiza TV) |
34,696 |
33,155 |
6,033 |
4,368 |
6,922 |
4,670 |
|||||||||||||
Slovenia (POP TV and Kanal A) |
28,465 |
24,168 |
8,367 |
6,024 |
7,932 |
7,206 |
|||||||||||||
Ukraine (Studio 1+1 Group) |
23,098 |
17,164 |
4,613 |
775 |
4,509 |
581 |
|||||||||||||
|
|
|
|
|
|
||||||||||||||
Total Combined Operations' Net Revenues / Segment EBITDA |
$ |
118,812 |
$ |
114,078 |
$ |
17,006 |
$ |
12,731 |
$ |
15,841 |
$ |
14,041 |
|||||||
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
Reconciliation to Consolidated Statement of Operations: |
|
|
|
|
|
|
|||||||||||||
Consolidated Net Revenues / Income/(loss) before provision for income taxes, minority interest and discontinued operations |
$ |
73,238 |
$ |
76,813 |
$ |
(25,584 |
) |
$ |
(37,343 |
) |
$ |
(25,584 |
) |
$ |
(37,343 |
) | |||
Other Consolidated Entities: |
|
|
|
|
|
|
|||||||||||||
Czech Republic (CNTS) |
(1,869 |
) |
(3,257 |
) |
(630 |
) |
1,933 |
(630 |
) |
1,933 |
|||||||||
Write down of asset held for sale |
- |
- |
- |
- |
- |
- |
|||||||||||||
Corporate Expenses |
- |
- |
10,295 |
10,248 |
10,295 |
10,248 |
|||||||||||||
Net Arbitration (Proceeds)/Costs |
- |
- |
4,509 |
2,839 |
4,509 |
2,839 |
|||||||||||||
Unconsolidated Affiliates: |
|
|
|
|
|
|
|||||||||||||
Ukraine (Studio 1+1 Group) |
12,747 |
7,369 |
7,495 |
2,144 |
7,495 |
2,144 |
|||||||||||||
Slovak Republic (Markiza TV) |
34,696 |
33,155 |
6,033 |
4,368 |
6,033 |
4,368 |
|||||||||||||
Other operations (Hungary) |
- |
(2 |
) |
- |
29 |
- |
29 |
||||||||||||
Station Depreciation |
- |
- |
11,331 |
24,654 |
11,331 |
24,654 |
|||||||||||||
Loss on write down of investment |
- |
- |
- |
- |
- |
- |
|||||||||||||
Equity in income/(loss) of unconsolidated affiliates |
- |
- |
(7,137 |
) |
514 |
(7,137 |
) |
514 |
|||||||||||
Net interest and other expense |
- |
- |
17,759 |
18,245 |
17,759 |
18,245 |
|||||||||||||
Change in fair value of derivative |
- |
- |
1,576 |
- |
1,576 |
- |
|||||||||||||
Gain on sale of subsidiaries |
- |
- |
(1,802 |
) |
- |
(1,802 |
) |
- |
|||||||||||
Foreign currency exchange gain/(loss), net |
- |
- |
(1,651 |
) |
2,286 |
(1,651 |
) |
2,286 |
|||||||||||
Gain on sale of investment |
- |
- |
- |
(17,186 |
) |
- |
(17,186 |
) | |||||||||||
Gain on discharge of obligation |
- |
- |
(5,188 |
) |
- |
(5,188 |
) |
- |
|||||||||||
Cash paid for programming |
- |
- |
- |
- |
(22,460 |
) |
(23,889 |
) | |||||||||||
Programming Amortization |
- |
- |
- |
- |
21,295 |
25,199 |
|||||||||||||
|
|
|
|
|
|
||||||||||||||
Total Combined Operations' Net Revenues / Segment EBITDA |
$ |
118,812 |
$ |
114,078 |
$ |
17,006 |
$ |
12,731 |
$ |
15,841 |
$ |
14,041 |
|||||||
|
|
|
|
|
|
Page 95 | ||
| ||
|
For the Years Ended December 31,
(US$ 000's) | |||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
Arbitration Related Proceeds |
$ |
(28,953 |
) |
$ |
- |
$ |
- |
|||
Arbitration Related Costs |
12,351 |
4,509 |
2,839 |
|||||||
|
|
|
||||||||
Net Arbitration Related (Proceeds)/Costs |
$ |
(16,602 |
) |
$ |
4,509 |
$ |
2,839 |
|||
|
|
|
||||||||
|
Balance Sheet As At December 31, |
Income Statement Weighted Average for the years ended December 31, |
||||||||||||||||||
|
|
||||||||||||||||||
|
2002 |
|
|
2001 |
|
|
% change |
|
|
2002 |
|
|
2001 |
|
|
% change |
|||
|
|
|
|
|
|
||||||||||||||
Euro equivalent of $1.00 |
0.95 |
1.12 |
15.2 |
% |
1.06 |
1.12 |
5.4 |
% | |||||||||||
Czech koruna equivalent of $1.00 |
30.14 |
36.27 |
16.9 |
% |
32.74 |
38.04 |
13.9 |
% | |||||||||||
Romanian lei equivalent of $1.00 |
33,500 |
31,597 |
(6.0) |
% |
33,043 |
29,032 |
(13.8) |
% | |||||||||||
Slovak koruna equivalent of $1.00 |
40.04 |
48.47 |
17.4 |
% |
45.10 |
48.51 |
7.0 |
% | |||||||||||
Slovenian tolar equivalent of $1.00 |
221.07 |
250.95 |
11.9 |
% |
240.15 |
243.99 |
1.6 |
% | |||||||||||
Ukrainian hryvna equivalent of $1.00 |
5.33 |
5.30 |
(0.6) |
% |
5.33 |
5.29 |
(0.8) |
% |
Page 96 | ||
| ||
For the Years Ended December 31, |
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net Income/(Loss) |
Common Shares |
Net Income/(Loss) per Common Share |
||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|
|
2002 |
|
|
2001 |
|
|
2000 |
|
|
2002 |
|
|
2001 |
|
|
2000 |
|||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Basic EPS |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net loss attributable to |
$ |
(14,184 |
) |
$ |
(22,111 |
) |
$ |
(37,498 |
) |
13,224 |
13,224 |
13,220 |
$ |
(1.07 |
) |
$ |
(1.67 |
) |
$ |
(2.84 |
) | |||||||
Common stock |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Effect of dilutive securities: |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||
Stock options |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net loss attributable to Common stock and Assumed option exercises |
$ |
(14,184 |
) |
$ |
(22,111 |
) |
$ |
(37,498 |
) |
13,224 |
13,224 |
13,220 |
$ |
(1.07 |
) |
$ |
(1.67 |
) |
$ |
(2.84 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 97 | ||
| ||
Company Name |
CME Voting Interest |
Jurisdiction of Organization |
Subsidiary / Equity Accounted Affiliate/Investment (1) |
|
|
|
|
|
|
|
|
Media Pro International S.A. |
66% |
Romania |
Subsidiary |
Media Vision S.R.L. |
70% |
Romania |
Subsidiary |
MPI Romania B.V |
66% |
Netherlands |
Subsidiary |
Media Pro S.R.L |
44% |
Romania |
Equity Accounted Affiliate |
Pro TV S.R.L. |
49% |
Romania |
Equity Accounted Affiliate |
Media Pro Chisinau S.R.L |
39% |
Moldovia |
Equity Accounted Affiliate |
|
|
|
|
International Media Services Ltd. |
60% |
Bermuda |
Subsidiary |
Innova Film GmbH |
60% |
Germany |
Subsidiary |
Enterprise "Inter-Media" |
60% |
Ukraine |
Subsidiary |
Broadcasting Company "Studio 1+1" |
18% |
Ukraine |
Equity Accounted Affiliate |
Gravis |
30% |
Ukraine |
Equity Accounted Affiliate |
|
|
|
|
Ceska Nezavisla Televizni Spolecnost, spol. s.r.o. |
93.2% |
Czech Republic |
Subsidiary |
CET 21 spol. S.r.o. |
3.125% |
Czech Republic |
Investment |
|
|
|
|
Slovenska Televizna Spolocnost, spol. s.r.o. |
49% |
Slovak Republic |
Equity Accounted Affiliate |
Markiza s.ro. Slovak Republic |
34% |
Slovak Republic |
Equity Accounted Affiliate |
Gamatex s.r.o. |
49% |
Slovak Republic |
Equity Accounted Affiliate |
ADAM (Slovak Republic) |
49% |
Slovak Republic |
Equity Accounted Affiliate |
|
|
|
|
MKTV Rt (Irisz TV) |
100% |
Hungary |
Subsidiary |
GammaSat Media Investment Holding Kft |
100% |
Hungary |
Subsidiary |
|
|
|
|
MM TV 1, d.o.o. |
100% |
Slovenia |
Subsidiary |
Produkcija Plus, d.o.o. |
96.85% |
Slovenia |
Subsidiary |
POP TV d.o.o. |
96.85% |
Slovenia |
Subsidiary |
Kanal A d.d. |
96.85% |
Slovenia |
Subsidiary |
Page 98 | ||
| ||
Superplus Holding d.d. |
96.85% |
Slovenia |
Subsidiary |
Tele 59, d.o.o. |
10% |
Slovenia |
Equity Accounted Affiliate |
MTC Holding, d.o.o. |
24% |
Slovenia |
Equity Accounted Affiliate |
|
|
|
|
CME Media Enterprises B.V. |
100% |
Netherlands |
Subsidiary |
CME Czech Republic B.V. |
100% |
Netherlands |
Subsidiary |
CME Czech Republic II B.V. |
100% |
Netherlands |
Subsidiary |
CME Germany B.V. |
100% |
Netherlands |
Subsidiary |
CME Hungary B.V. |
100% |
Netherlands |
Subsidiary |
CME Poland B.V. |
100% |
Netherlands |
Subsidiary |
CME Romania B.V. |
100% |
Netherlands |
Subsidiary |
CME Slovak Republic B.V. |
100% |
Netherlands |
Subsidiary |
CME Slovenia B.V. |
100% |
Netherlands |
Subsidiary |
CME Ukraine B.V. |
100% |
Netherlands |
Subsidiary |
|
|
|
|
CME Media Enterprises Ltd |
100% |
UK |
Subsidiary |
CME Ukraine Holding GmbH |
100% |
Austria |
Subsidiary |
CME Germany GmbH |
100% |
Germany |
Subsidiary |
CME Development Corporation |
100% |
USA |
Subsidiary |
CME Programming Services B.V. |
100% |
Netherlands |
Subsidiary |
Central European Media Enterprises N.V. |
100% |
Netherlands Antilles |
Subsidiary |
Page 99 | ||
| ||
Page 100 | ||
| ||
Page 101 | ||
| ||
Page 102 | ||
| ||
|
December 31, 2002 |
|
|
December 31, 2001 |
|||
ASSETS |
|
|
|||||
Current Assets |
|
|
|||||
Cash and cash equivalents . |
$ |
2,887 |
$ |
1,437 |
|||
Accounts receivable (net of allowances of $1,867, $1,792). |
10,105 |
10,809 |
|||||
Program rights costs |
1,121 |
978 |
|||||
Advances to affiliates.. |
101 |
129 |
|||||
Income taxes receivable... |
230 |
0 |
|||||
Other short-term assets .. |
743 |
730 |
|||||
Deferred tax asset. |
409 |
- |
|||||
|
|
||||||
Total current assets |
15,596 |
14,083 |
|||||
|
|
||||||
Property, plant and equipment (net of depreciation of $17,562, $13,167 |
9,805 |
8,882 |
|||||
Program rights costs |
1,682 |
1,467 |
|||||
License costs and other intangibles (net of amortization of $1,159, $910).. |
101 |
419 |
|||||
Deferred Tax Assets |
1,666 |
- |
|||||
Total Assets |
$ |
28,850 |
$ |
24,851 |
|||
|
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|||||
Current Liabilities: |
|
|
|||||
Accounts payable and accrued liabilities.. |
$ |
7,893 |
$ |
6,664 |
|||
Duties and other taxes payable. |
290 |
799 |
|||||
Current portion of credit facilities and obligations under capital leases |
815 |
1,370 |
|||||
Advances from affiliates... |
1,715 |
3,852 |
|||||
Other current liabilities |
21 |
18 |
|||||
|
|
||||||
Total Current Liabilities |
$ |
10,734 |
$ |
12,703 |
|||
|
|
||||||
Long term portion of credit facilities and obligations under capital leases |
2,629 |
802 |
|||||
Total Non Current Liabilities |
|
|
|||||
Commitments and contingencies (note 14) |
2,629 |
802 |
|||||
SHAREHOLDERS' EQUITY |
|
|
|||||
Common stock |
6 |
6 |
|||||
Additional paid in capital |
39,326 |
39,326 |
|||||
Shareholders' Loan |
(4,694 |
) |
- |
||||
Accumulated deficit............................ |
(12,080 |
) |
(18,036 |
) | |||
Accumulated other comprehensive loss |
(7,071 |
) |
(9,950 |
) | |||
|
|
||||||
Total shareholders' equity |
15,487 |
11,346 |
|||||
|
|
||||||
Total liabilities and shareholders' equity |
$ |
28,850 |
$ |
24,851 |
|||
|
|
Page 103 | ||
| ||
For the Years Ended December 31, |
||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
Net revenues |
$ |
38,397 |
$ |
34,696 |
$ |
33,156 |
||||
EXPENSES: |
|
|
|
|||||||
Operating costs and expenses |
18,854 |
16,131 |
15,882 |
|||||||
Amortization of programming rights |
8,429 |
7,960 |
8,847 |
|||||||
Depreciation of station fixed assets and other intangibles |
1,680 |
1,549 |
3,206 |
|||||||
Selling, general and administrative expenses |
5,592 |
5,321 |
4,809 |
|||||||
Goodwill impairment |
- |
- |
1,706 |
|||||||
Operating income/(loss) |
3,842 |
3,735 |
(1,294 |
) | ||||||
Other Income/Expense: |
|
|
|
|||||||
Net interest and other expense |
770 |
(702 |
) |
(1,409 |
) | |||||
Income/(loss) before provision for income taxes |
4,612 |
3,033 |
(2,703 |
) | ||||||
Provision for income taxes |
1,344 |
(1,679 |
) |
(480 |
) | |||||
|
|
|
||||||||
Net income/(loss) |
$ |
5,956 |
$ |
1,354 |
$ |
(3,183 |
) | |||
|
|
|
Page 104 | ||
| ||
|
Accum-ulated Deficit |
|
|
Common Stock |
|
|
Share-holders' Loan |
|
|
Add-itional Paid in capital |
|
|
Accum-ulated Deficit |
|
|
Accum-ulated other Compre-hensive Income/(Loss) |
|
|
Total share-holders' equity |
|||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 1999 |
- |
6 |
- |
39,326 |
(16,207 |
) |
(8,147 |
) |
14,978 |
|||||||||||||
Comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Net loss for 2000 |
(3,183 |
) |
- |
- |
- |
(3,183 |
) |
- |
(3,183 |
) | ||||||||||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Currency translation adjustment |
(1,575 |
) |
- |
- |
- |
- |
(1,575 |
) |
(1,575 |
) | ||||||||||||
|
||||||||||||||||||||||
Comprehensive (loss) |
(4,758 |
) |
|
|
|
|
|
|
||||||||||||||
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 2000 |
|
6 |
- |
39,326 |
(19,390 |
) |
(9,722 |
) |
10,220 |
|||||||||||||
Comprehensive income: |
|
|
|
|
|
|
|
|||||||||||||||
Net income for 2001 |
1,354 |
- |
- |
- |
1,354 |
- |
1,354 |
|||||||||||||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Currency translation adjustment |
(228 |
) |
- |
- |
- |
- |
(228 |
) |
(228 |
) | ||||||||||||
|
||||||||||||||||||||||
Comprehensive income |
1,126 |
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 2001 |
|
6 |
- |
39,326 |
(18,036 |
) |
(9,950 |
) |
11,346 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
Shareholders' Loan |
|
- |
(4,694 |
) |
- |
- |
- |
(4,694 |
) | |||||||||||||
Comprehensive income |
|
|
|
|
|
|
|
|||||||||||||||
Net income for 2002 |
5,956 |
- |
- |
- |
5,956 |
- |
5,956 |
|||||||||||||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|||||||||||||||
Currency translation adjustment |
2,879 |
- |
- |
- |
- |
2,879 |
2,879 |
|||||||||||||||
Comprehensive income |
8,835 |
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||
BALANCE, December 31, 2002 |
|
6 |
(4,694 |
) |
39,326 |
(12,080 |
) |
(7,071 |
) |
15,487 |
||||||||||||
|
|
|
|
|
|
Page 105 | ||
| ||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|||||||
Net income/(loss) |
$ |
5,956 |
$ |
1,354 |
$ |
(3,183 |
) | |||
Adjustments to reconcile net income/(loss) to net cash used in operating activities: |
|
|
|
|||||||
Depreciation and amortization |
10,190 |
9,579 |
12,166 |
|||||||
Goodwill impairment |
- |
- |
1,706 |
|||||||
Provision for doubtful accounts receivable |
(206 |
) |
746 |
445 |
||||||
Exchange rate losses/(gains) |
- |
17 |
85 |
|||||||
(Gain)/Loss from sales of fixed assets |
(2 |
) |
(9 |
) |
(5 |
) | ||||
Net change in deferred income taxes |
(2,075 |
) |
707 |
251 |
||||||
Net change in: |
|
|
|
|||||||
Accounts receivable |
2,902 |
(2,426 |
) |
(1,747 |
) | |||||
Investments in Program rights |
(9,152 |
) |
(7,164 |
) |
(8,388 |
) | ||||
Other Assets |
124 |
(65 |
) |
241 |
||||||
Accounts payable |
(1,910 |
) |
(1,676 |
) |
(205 |
) | ||||
Other current liabilities |
41 |
19 |
9 |
|||||||
Income taxes payable |
(846 |
) |
803 |
634 |
||||||
|
|
|
||||||||
Net cash provided by operating activities |
5,022 |
1,885 |
2,009 |
|||||||
|
|
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|||||||
Purchase of ADAM a.s |
- |
- |
(1,706 |
) | ||||||
Acquisition of tangible assets |
(567 |
) |
(1,185 |
) |
(719 |
) | ||||
Net purchase of intangible assets |
- |
(254 |
) |
(107 |
) | |||||
Proceeds from disposal of fixed assets |
10 |
24 |
29 |
|||||||
Repayment grants |
- |
- |
428 |
|||||||
|
|
|
||||||||
Net cash used in investing activities |
(557 |
) |
(1,415 |
) |
(2,075 |
) | ||||
|
|
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|||||||
Cash used in short term credit facilities |
(749 |
) |
(273 |
) |
(294 |
) | ||||
Cash provided by long term credit facilities |
1,472 |
- |
- |
|||||||
Distribution to shareholders |
(4,168 |
) |
- |
- |
||||||
|
|
|
||||||||
Net cash used in financing activities |
(3,445 |
) |
(273 |
) |
(294 |
) | ||||
|
|
|
||||||||
Effect of exchange rate differences on cash and cash equivalents. |
430 |
(29 |
) |
(192 |
) | |||||
|
|
|
||||||||
Net increase/(decrease) in cash and cash equivalents |
1,450 |
168 |
(552 |
) | ||||||
CASH EQUIVALENTS, beginning of period |
1,437 |
1,269 |
1,821 |
|||||||
CASH EQUIVALENTS, end of period |
$ |
2,887 |
$ |
1,437 |
$ |
1,269 |
||||
|
|
|
||||||||
|
|
|
|
|||||||
SUPPLEMENTAL INFORMATION OF CASH FLOW INFORMATION: |
|
|
|
|||||||
Cash paid for interest |
356 |
288 |
281 |
|||||||
Cash paid for income taxes (net of refunds) |
1,504 |
207 |
(405 |
) | ||||||
Non cash financing activities |
- |
225 |
517 |
Page 106 | ||
| ||
Page 107 | ||
| ||
Page 108 | ||
| ||
Page 109 | ||
| ||
Category |
Description |
Example |
| ||
PA |
Prime Time |
Blockbusters |
PB |
Prime Time |
Other prime time |
LA |
Late Fringe |
Sat- Sun 22:00 programs |
A |
Access |
Anything between 17:30 and the News |
LB |
Late Fringe |
Weekdays 22:00 first run series, movies, "B" weekend 22:00 movies |
DA |
Day-part |
Great classic movies (Sat-Sun afternoon) |
DB |
Day-part |
Day-part movies/ series, morning, early afternoon late night |
DC |
Day-part |
Trash, junk |
TBA |
To be available |
Licenses already purchased, but specific condition are not defined yet (package licenses), like: title, price or license period; |
NC |
Not coded |
The licenses can not be classified, insufficient information about the license; |
ODPIS |
Waste |
Licenses fully provided for |
|
|
|
|
|
Description |
Years |
|
|
Buildings and other constructions |
25 |
Movable items |
4 8 |
|
|
Page 110 | ||
| ||
|
|
Description |
Years |
|
|
Software licenses |
4 |
Patents, rights, jingles and royalties |
4 |
Low-value and other intangibles |
1 |
|
|
Page 111 | ||
| ||
Page 112 | ||
| ||
|
||||||||||||||||
|
Balance at 31.12.2001 |
|
|
Additions |
|
|
Write off of excessive programming |
|
|
Exchange rate impact |
|
|
Balance at 31.12.2002 |
|||
|
||||||||||||||||
Cost |
|
|
|
|
|
|||||||||||
Programming licenses and dubbing |
41,363 |
9,314 |
- |
8,711 |
59,388 |
|||||||||||
Bartered programs |
1,724 |
- |
- |
363 |
2,087 |
|||||||||||
Total cost |
43,087 |
9,314 |
- |
9,074 |
61,475 |
|||||||||||
Accumulated amortization |
|
|
|
|
|
|||||||||||
Program licenses and dubbing |
(37,883 |
) |
(9,807 |
) |
- |
(7,978 |
) |
(55,668 |
) | |||||||
Bartered programs |
(1,724 |
) |
|
- |
(363 |
) |
(2,087 |
) | ||||||||
Program waste reserve |
(1,035 |
) |
- |
336 |
(218 |
) |
(917 |
) | ||||||||
Total accumulated amortization |
(40,642 |
) |
(9,807 |
) |
336 |
(8,559 |
) |
(58,672 |
) | |||||||
|
||||||||||||||||
Net book value |
2,445 |
|
|
|
2,803 |
|||||||||||
|
|
|||||||
|
Balance at 31.12.2002 |
|
|
Balance at 31.12.2001 |
|||
|
|||||||
|
|
|
|||||
VAT Receivable |
203 |
276 |
|||||
|
|
|
|||||
Prepaid expenses and advances |
|
|
|||||
Production & operation |
316 |
241 |
|||||
Licenses and dubbing |
112 |
127 |
|||||
Employee advances |
12 |
13 |
|||||
|
|
|
|||||
Other current assets |
|
|
|||||
Receivable from Sipox |
- |
42 |
|||||
Game show winning prizes |
37 |
- |
|||||
Receivable Markiza-Slovakia |
37 |
- |
|||||
Receivable Teltex |
6 |
- |
|||||
Other |
20 |
31 |
|||||
|
|||||||
Total |
743 |
730 |
|||||
|
Page 113 | ||
| ||
|
|||||||||||||||||||
|
Balance at 31.12.2001 |
|
|
Additions |
|
|
Re-classes |
|
|
Write off |
|
|
Exchange rate impact |
|
|
Balance at 31.12.2002 |
|||
|
|||||||||||||||||||
Cost |
|
|
|
|
|
|
|||||||||||||
Land |
642 |
- |
- |
- |
135 |
777 |
|||||||||||||
Buildings |
6,844 |
- |
6 |
- |
1,442 |
8,292 |
|||||||||||||
Vehicles under capital lease |
849 |
- |
- |
(25 |
) |
179 |
1,003 |
||||||||||||
Machinery and equipment |
9,976 |
- |
418 |
- |
2,100 |
12,494 |
|||||||||||||
Other equipment |
2,009 |
- |
426 |
(141 |
) |
423 |
2,717 |
||||||||||||
Vehicles |
1,631 |
- |
57 |
(47 |
) |
343 |
1,984 |
||||||||||||
Construction in progress |
98 |
888 |
(907 |
) |
- |
20 |
99 |
||||||||||||
Total acquisition cost |
22,049 |
888 |
- |
(213 |
) |
4,642 |
27,366 |
||||||||||||
Accumulated depreciation |
|
|
|
|
|
|
|||||||||||||
Buildings |
(1,076 |
) |
(332 |
) |
- |
- |
(226 |
) |
(1,634 |
) | |||||||||
Vehicles under capital lease |
(415 |
) |
(309 |
) |
- |
25 |
(88 |
) |
(787 |
) | |||||||||
Machinery and equipment |
(8,984 |
) |
(637 |
) |
- |
- |
(1,892 |
) |
(11,513 |
) | |||||||||
Other equipment |
(1,725 |
) |
(258 |
) |
- |
141 |
(363 |
) |
(2,205 |
) | |||||||||
Vehicles |
(967 |
) |
(300 |
) |
- |
47 |
(202 |
) |
(1,422 |
) | |||||||||
Total accumulated depreciation |
(13,167 |
) |
(1,836 |
) |
- |
213 |
(2,771 |
) |
(17,561 |
) | |||||||||
|
|||||||||||||||||||
Net book value |
8,882 |
|
|
|
|
9,805 |
|||||||||||||
|
|||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||
|
|
|||||||||||||||||||
|
Balance at 31.12.2000 |
|
|
Additions |
|
|
Re-classes |
|
|
Write off |
|
|
Exchange rate impact |
|
|
Balance at 31.12.2001 |
|||
|
|||||||||||||||||||
Cost |
|
|
|
|
|
|
|||||||||||||
Land |
657 |
- |
- |
- |
(15 |
) |
642 |
||||||||||||
Buildings |
5,368 |
- |
1,595 |
- |
(119 |
) |
6,844 |
||||||||||||
Vehicles under capital lease |
854 |
- |
226 |
(212 |
) |
(19 |
) |
849 |
|||||||||||
Machinery and equipment |
9,581 |
- |
618 |
(10 |
) |
(213 |
) |
9,976 |
|||||||||||
Other equipment |
1,946 |
- |
231 |
(125 |
) |
(43 |
) |
2,009 |
|||||||||||
Vehicles |
1,637 |
- |
64 |
(33 |
) |
(37 |
) |
1,631 |
|||||||||||
Construction in progress |
94 |
2,740 |
(2,734 |
) |
- |
(2 |
) |
98 |
|||||||||||
Total acquisition cost |
20,137 |
2,740 |
- |
(380 |
) |
(448 |
) |
22,049 |
|||||||||||
Accumulated depreciation |
|
|
|
|
|
|
|||||||||||||
Buildings |
(855 |
) |
(240 |
) |
- |
- |
19 |
(1,076 |
) | ||||||||||
Vehicles under capital lease |
(387 |
) |
(248 |
) |
- |
212 |
8 |
(415 |
) | ||||||||||
Machinery and equipment |
(8,685 |
) |
(502 |
) |
- |
10 |
193 |
(8,984 |
) | ||||||||||
Other equipment |
(1,661 |
) |
(226 |
) |
- |
125 |
37 |
(1,725 |
) | ||||||||||
Vehicles |
(784 |
) |
(233 |
) |
- |
33 |
17 |
(967 |
) | ||||||||||
Total accumulated depreciation |
(12,372 |
) |
(1,449 |
) |
- |
380 |
274 |
(13,167 |
) | ||||||||||
|
|||||||||||||||||||
Net book value |
7,765 |
|
|
|
|
8,882 |
|||||||||||||
|
Page 114 | ||
| ||
| |
Leasing |
Amount |
| |
Payments due in 2003 |
156 |
Payments due in 2004 |
78 |
Payments due in 2005 |
113 |
Total |
347 |
Less: Amounts representing interest |
(102) |
| |
Total |
245 |
|
| |
Due |
Amount |
| |
2003 |
556 |
2004 |
42 |
2005 |
- |
| |
Total |
598 |
|
Page 115 | ||
| ||
|
||||||||||||||||
|
Balance at 31.12.2001 |
|
|
Additions |
|
|
Reclass-ifications |
|
|
Exchange rate impact |
|
|
Balance at 31.12.2002 |
|||
|
||||||||||||||||
Cost |
|
|
|
|
|
|||||||||||
Software |
746 |
- |
4 |
157 |
907 |
|||||||||||
Rights |
29 |
- |
17 |
6 |
52 |
|||||||||||
Jingles |
224 |
- |
- |
47 |
271 |
|||||||||||
Other |
88 |
- |
23 |
18 |
129 |
|||||||||||
Intangibles not put in use |
242 |
(249 |
) |
(44 |
) |
51 |
0 |
|||||||||
Total acquisition cost |
1,329 |
(249 |
) |
- |
279 |
1,359 |
||||||||||
Total accumulated amortization |
(910 |
) |
(157 |
) |
- |
(191 |
) |
(1,258 |
) | |||||||
|
||||||||||||||||
Total |
419 |
|
|
|
101 |
|||||||||||
|
|
||||||||||||||||
|
Balance at 31.12.2000 |
|
|
Additions |
|
|
Reclass-ifications |
|
|
Exchange rate impact |
|
|
Balance at 31.12.2001 |
|||
|
||||||||||||||||
Cost |
|
|
|
|
|
|||||||||||
Software |
719 |
- |
43 |
(16 |
) |
746 |
||||||||||
Rights |
30 |
- |
- |
(1 |
) |
29 |
||||||||||
Jingles |
229 |
- |
- |
(5 |
) |
224 |
||||||||||
Other |
73 |
- |
17 |
(2 |
) |
88 |
||||||||||
Construction in progress |
49 |
254 |
(60 |
) |
(1 |
) |
242 |
|||||||||
Total acquisition cost |
1,100 |
254 |
- |
(25 |
) |
1,329 |
||||||||||
Total accumulated amortization |
(741 |
) |
(185 |
) |
- |
16 |
(910 |
) | ||||||||
|
||||||||||||||||
Total |
359 |
|
|
|
419 |
|||||||||||
|
|
|||||||
|
Balance at 31.12.2002 |
|
|
Balance at 31.12.2001 |
|||
|
|||||||
Program rights payable |
|
|
|||||
Distributors |
587 |
1,418 |
|||||
Dubbing/Subtitling |
159 |
417 |
|||||
Non invoiced programs |
1,741 |
1,022 |
|||||
Accounts payable |
|
|
|||||
Equipment |
199 |
371 |
|||||
Production |
1,114 |
1,192 |
|||||
Operation |
1,104 |
683 |
|||||
|
|||||||
Accrued liabilities |
|
|
|||||
|
|||||||
Production |
998 |
136 |
|||||
|
|||||||
Payroll bonuses |
815 |
334 |
|||||
|
|||||||
Operation |
449 |
301 |
|||||
|
|||||||
Other |
727 |
790 |
|||||
|
|||||||
Total |
7,893 |
6,664 |
|||||
|
Page 116 | ||
| ||
|
|||||||
|
Balance at 31.12.2002 |
|
|
Balance at 31.12.2001 |
|||
|
|||||||
Obligation under capital lease current |
103 |
271 |
|||||
Credit facilities current |
712 |
322 |
|||||
Short-term related party loans |
- |
777 |
|||||
Current portion of debt |
815 |
1,370 |
|||||
Obligation under capital lease non-current |
142 |
220 |
|||||
Credit facilities - non-current |
2,486 |
582 |
|||||
Long-term related party loans |
- |
- |
|||||
Long-term debt |
2,629 |
802 |
|||||
|
|||||||
Total |
3,444 |
2,172 |
|||||
|
|
||||||||||
|
VUB credit facilities |
ZT Slovakia Trading facilities |
Total |
|||||||
|
||||||||||
2004 |
250 |
238 |
488 |
|||||||
2005 |
1,998 |
- |
1,998 |
|||||||
|
||||||||||
Total |
2,248 |
238 |
2,486 |
|||||||
|
Page 117 | ||
| ||
| |
|
Ownership in % |
| |
MARKIZA-SLOVAKIA, s.r.o. |
51 |
CME |
49 |
| |
|
100 |
|
|
||||||||||||||||
Receiv-ables |
|
|
Advances granted |
|
|
Accruals |
|
|
Loans granted |
|
|
Payables |
||||
|
||||||||||||||||
Credit Partner (3) |
1,819 |
- |
- |
- |
- |
|||||||||||
Tv Tip (2) |
63 |
- |
- |
- |
26 |
|||||||||||
Forza, a.s. (3) |
3 |
- |
- |
- |
139 |
|||||||||||
www.markiza.sk (2) |
1 |
- |
- |
- |
31 |
|||||||||||
Forza music, s.r.o. (3) |
- |
- |
- |
- |
3 |
|||||||||||
Axis Media (3) |
1 |
- |
- |
- |
3 |
|||||||||||
Fajn Production (2) |
2 |
1 |
- |
- |
56 |
|||||||||||
ARJ (3) |
6 |
- |
- |
- |
|
|||||||||||
Studio L+S (2) |
- |
- |
- |
- |
2 |
|||||||||||
Falcon Safety (2) |
- |
- |
- |
- |
21 |
|||||||||||
Vyhra (2) |
11 |
- |
- |
- |
2 |
|||||||||||
Media Invest (1) |
- |
- |
- |
2,088 |
- |
|||||||||||
CME (1) |
- |
- |
- |
2,606 |
489 |
|||||||||||
MARKIZA-SLOVAKIA, s.r.o. (1) |
- |
100 |
37 |
- |
693 |
|||||||||||
CNTS (3) |
- |
- |
- |
- |
104 |
|||||||||||
|
||||||||||||||||
Total |
1,906 |
101 |
37 |
4,694 |
1,569 |
|||||||||||
|
Page 118 | ||
| ||
|
|||||||
|
Revenues |
|
|
Expenses |
|||
|
|||||||
Credit Partner (3) |
2,123 |
- |
|||||
Tv Tip (2) |
27 |
27 |
|||||
Media Invest (1) |
267 |
- |
|||||
Forza, a.s. (3) |
82 |
358 |
|||||
www.markiza.sk (2) |
52 |
144 |
|||||
Forza music, s.r.o. |
- |
15 |
|||||
Axis Media (3) |
22 |
25 |
|||||
Slovenská Strategická (2) |
|
16 |
|||||
Fajn Production (2) |
13 |
212 |
|||||
Media Mix |
12 |
23 |
|||||
Studio L+S (2) |
- |
10 |
|||||
Falcon Safety (2) |
- |
90 |
|||||
Výhra (2) |
47 |
39 |
|||||
CME (1) |
96 |
1,610 |
|||||
MARKIZA-SLOVAKIA, s.r.o. (1) |
- |
35 |
|||||
|
|||||||
Total |
2,757 |
2,588 |
|||||
|
|
|||||||
|
Revenues |
|
|
Expenses |
|||
|
|||||||
Media Invest (1) |
80 |
- |
|||||
CME (1) |
96 |
- |
|||||
|
|||||||
Total |
176 |
- |
|||||
|
Page 119 | ||
| ||
|
|||||||
|
Revenues |
|
|
Expenses |
|||
|
|||||||
Credit Partner (3) |
1,940 |
- |
|||||
Tv Tip (2) |
211 |
25 |
|||||
Mirox (2) |
80 |
42 |
|||||
Forza, a.s. (3) |
203 |
228 |
|||||
www.markiza.sk (2) |
60 |
180 |
|||||
Axis Media (3) |
21 |
25 |
|||||
Slovenská Strategická (2) |
- |
21 |
|||||
Fajn Production (2) |
9 |
410 |
|||||
ARJ (3) |
4 |
- |
|||||
FORZA CZ, s.r.o. (3) |
- |
69 |
|||||
Studio L+S (2) |
- |
9 |
|||||
Falcon Safety (2) |
- |
72 |
|||||
Výhra (2) |
2 |
11 |
|||||
CME (1) |
- |
750 |
|||||
MARKÍZA-SLOVAKIA, s.r.o. (1) |
- |
858 |
|||||
|
|||||||
Total |
2,530 |
2,700 |
|||||
|
|
|||||||
|
Revenues |
|
|
Expenses |
|||
|
|||||||
CME (1) |
- |
780 |
|||||
MARKÍZA-SLOVAKIA (1) |
- |
47 |
|||||
CNTS ( 3) |
- |
3 |
|||||
TV Tip (2) |
25 |
25 |
|||||
www.markiza.sk (2) |
23 |
2 |
|||||
|
|||||||
Total |
48 |
857 |
|||||
|
Page 120 | ||
| ||
|
||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
|
||||||||||
Current |
731 |
972 |
229 |
|||||||
State |
731 |
972 |
229 |
|||||||
Deferred |
(2,075 |
) |
707 |
251 |
||||||
|
||||||||||
Total |
(1,344 |
) |
1,679 |
480 |
||||||
|
|
|||||||
|
Balance at 31.12.2002 |
|
|
Balance at 31.12.2001 |
|||
|
|||||||
Difference between tax and accounting depreciation of fixed assets |
816 |
853 |
|||||
Reserve for wall of programes |
229 |
259 |
|||||
Unrealized FX losses |
22 |
218 |
|||||
Unrealized FX gains |
(133 |
) |
(9 |
) | |||
Leasing adjustment |
15 |
24 |
|||||
Not paid services |
(9 |
) |
166 |
||||
NOL carried forward |
- |
- |
|||||
Difference between tax and accounting depreciation of licenses |
803 |
505 |
|||||
Bad debt reserve |
467 |
448 |
|||||
Subtotal |
2,210 |
2,464 |
|||||
Valuation adjustment |
(136 |
) |
(2,464 |
) | |||
|
|||||||
Total |
2,074 |
- |
|||||
|
Page 121 | ||
| ||
|
||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
|
||||||||||
Income before income taxes |
4,612 |
3,033 |
(2,703 |
) | ||||||
Tax provision at statutory rate (25% in 2002 and 29% in 2001 and 2000) |
1,153 |
880 |
(784 |
) | ||||||
Non deductible write-off of receivables and goodwill |
- |
- |
635 |
|||||||
Effect in deferred tax of changes in tax rates |
- |
394 |
- |
|||||||
Tax expenses related to prior periods |
28 |
132 |
- |
|||||||
Change in provision for deferred taxes |
(2,362 |
) |
(120 |
) |
389 |
|||||
Other permanent differences incl. the effect of foreign exchange rates used for conversion |
(163 |
) |
393 |
240 |
||||||
|
||||||||||
Provision for income taxes |
(1,344 |
) |
1,679 |
480 |
||||||
|
|
||||||||||
|
Net revenues in 2002 |
|
|
Share on total spot revenues |
|
|
Receivable as at 31.12.02 |
|||
|
||||||||||
The Media Edge |
5 511 |
13.82 |
% |
1 370 |
||||||
Unimedia |
5 192 |
13.01 |
% |
979 |
||||||
Universal McCann Erickson |
5 138 |
12.88 |
% |
1 366 |
||||||
Optimum Media Operation |
4 121 |
10.33 |
% |
647 |
||||||
Credit partner |
2 124 |
5.32 |
% |
1 819 |
||||||
|
||||||||||
Total |
22 086 |
|
6 181 |
|||||||
|
Page 122 | ||
| ||
|
||||||||||
|
Net revenues in 2001 |
|
|
Share on total spot revenues |
|
|
Receivable as at 31.12.01 |
|||
|
||||||||||
The Media Edge |
4 422 |
12,37 |
% |
1 506 |
||||||
Unimedia |
3 360 |
9,40 |
% |
889 |
||||||
Pool Media Direction |
2 608 |
7,29 |
% |
133 |
||||||
Media Direction |
2 464 |
6,89 |
% |
899 |
||||||
CIA Slovakia |
2 252 |
6,30 |
% |
374 |
||||||
Universal McCann Erickson |
2 241 |
6,27 |
% |
701 |
||||||
CPM Slovakia |
2 005 |
5,60 |
% |
763 |
||||||
Optimum Media Operation |
1 998 |
5,59 |
% |
631 |
||||||
Credit Partner |
1 940 |
5,42 |
% |
1 744 |
||||||
|
||||||||||
Total |
23 290 |
|
7 640 |
|||||||
|
|
||||||||||
|
Net revenues in 2000 |
|
|
Share on total spot revenues |
|
|
Receivable as at 31.12.00 |
|||
|
||||||||||
Unimedia |
5 163 |
15,04 |
% |
1 101 |
||||||
The Media Edge |
4 618 |
13,45 |
% |
1 347 |
||||||
Pool Media International |
4 216 |
12,28 |
% |
201 |
||||||
CIA Slovakia |
2 078 |
6,05 |
% |
719 |
||||||
Media Impact |
2 028 |
5,91 |
% |
610 |
||||||
Mediacom Praha s.r.o. |
1 805 |
5,26 |
% |
59 |
||||||
|
||||||||||
Total |
19 908 |
|
4 037 |
|||||||
|
|
||||||||||
|
2002 |
|
|
2001 |
|
|
2000 |
|||
|
||||||||||
Interest expense |
(356 |
) |
(289 |
) |
(281 |
) | ||||
Tax penalty and interest |
- |
(258 |
) |
- |
||||||
Interest revenues |
276 |
105 |
91 |
|||||||
Other financial revenues |
- |
- |
85 |
|||||||
|
||||||||||
Total |
(80 |
) |
(442 |
) |
(105 |
) | ||||
|
/s/ Frantisek Vizvary
Frantisek Vizvary |
|
/s/ Radka Doehring
Radka Doehring |
|
|
Page 123 | ||
| ||
Page 124 | ||
| ||
Page 125 | ||
| ||
Page 126 | ||
| ||
Exhibit Number |
Description |
|
|
|
|
3.01* |
Memorandum of Association (incorporated by reference to Exhibit 3.01 to the Company's Registration Statement No. 33-80344 on Form S-1, filed June 17, 1994). |
3.02* |
Bye-Laws of Central European Media Enterprises Ltd., as amended, dated as of May 25, 2000 (incorporated by reference to Exhibit 3.02 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2000). |
3.03* |
Memorandum of Increase of Share Capital (incorporated by reference to Exhibit 3.03 to Amendment No. 1 to the Company's Registration Statement No. 33-80344 on Form S-1, filed August 19, 1994). |
3.04* |
Memorandum of Reduction of Share Capital (incorporated by reference to Exhibit 3.04 to Amendment No. 2 to the Company's Registration Statement No. 33-80344 on Form S-1, filed September 14, 1994). |
3.05* |
Certificate of Deposit of Memorandum of Increase of Share Capital executed by Registrar of Companies on May 20, 1997 (incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1997). |
4.01* |
Specimen Class A Common Stock Certificate (incorporated by reference to Exhibit 4.01 to Amendment No. 1 to the Company's Registration Statement No. 33-80344 on Form S-1, filed August 19, 1994). |
4.02* |
Specimen Note for 9 3/8% Senior Notes Due 2004 (incorporated by reference to Exhibit 4.1 to the Company's Amendment No. 3 to Form S-3 filed on August 14, 1997). |
4.03* |
Specimen Note for 8 1/8% Senior Notes Due 2004 (incorporated by reference to Exhibit 4.1 to the Company's Amendment No. 3 to Form S-3 filed on August 14, 1997). |
4.04* |
Form of Indenture for 9 3/8% Senior Notes Due 2004 (incorporated by reference to Exhibit 4.2 to the Company's Amendment No. 3 to Form S-3 filed on August 14, 1997). |
4.05* |
Form of Indenture for 8 1/8% Senior Notes Due 2004 (incorporated by reference to Exhibit 4.2 to the Company's Amendment No. 3 to Form S-3 filed on August 14, 1997). |
10.01+* |
Central European Media Enterprises Ltd. Amended and Restated 1994 Stock Option Plan, as amended to October 17, 1995. (incorporated by reference to Exhibit 10.01A to Amendment No. 1 to the Company's Registration Statement No. 33-96900 on Form S-1, filed October 18, 1995). |
10.01A+ |
Central European Media Enterprises Ltd. 1995 Stock Option Plan, as amended and restated to May 17, 2001. |
10.02* |
Memorandum of Association and Investment Agreement by and between CME Czech Republic B.V. and CET 21 spol s.r.o dated May 4, 1993 and as amended (incorporated by reference to Exhibit 10.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998). |
10.03* |
Credit Agreement between Ceska Sporitelna, a.s. and Ceska Nezavisla Televizni Spolecnost, s.r.o. (incorporated by reference to Exhibit 10.16 to Amendment No. 1 to the Company's Registration Statement No. 33-80344 on Form S-1, filed August 19, 1994). |
10.04* |
Partnership Agreement of Produkcija Plus d.o.o. Ljubljana, dated February 10, 1995 among CME Media Enterprises B.V., Boutique MMTV d.o.o. Ljubljana, and Tele 59 d.o.o. Maribor. (incorporated by reference to Exhibit 10.20 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1994). |
10.05* |
Letter Agreement, dated March 23, 1995, among, Kanal A, Boutique MMTV d.o.o. Ljubljana, Tele 59 d.o.o. Maribor, Euro 3 and Baring Communications Equity as advisor to Baring Communications Equity Limited, regarding Produkcija Plus d.o.o. (incorporated by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1994). |
10.06* |
Credit Agreement, dated as of November 14, 1994, between Ceska Sportelna, a.s. and Ceska Nezavisla Televizni Spolecnost, s.r.o. (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1994). |
10.07* |
Contract for Space Segment Service dated June 9, 1995, between British Telecommunications plc ('BT') and CME Programming Services, Inc. for the provision of programming transmission services by BT and the payment thereon (incorporated by reference to Exhibit 10.25A to the Company's Report on Form 10-Q for the quarterly period ended June 30, 1995). |
Page 127 | ||
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10.07A* |
Guarantee by Central European Media Enterprises Ltd. in respect of obligations due to British Telecommunications plc by CME Programming Services, Inc. dated June 9, 1995 (incorporated by reference to Exhibit 10.25B to the Company's Report on Form 10-Q for the quarterly period ended June 30, 1995). |
10.08* |
Cooperation Agreement among CME Media Enterprises B.V., Ion Tiriac and Adrian Sarbu (incorporated by reference to Exhibit 10.27 to the Company's Registration Statement No.33 96900 on Form S-1 filed September 13, 1995). |
10.09* |
Preliminary Agreement, dated June 12, 1995, between CME Media Enterprises B.V. and Markiza-Slovak RepublicSlovak Republic s.r.o. (incorporated by reference to Exhibit 10.28 to the Company's Registration Statement No. 33-96900 on Form S-1, filed September 13, 1995). |
10.09A* |
Memorandum of Association between CME Media Enterprises, B.V. and Markiza-Slovak RepublicSlovak Republic s.r.o. (incorporated by reference to Exhibit 10.28A to Amendment No. 1 to the Company's Registration Statement No. 33-96900 on Form S-1, filed October 18, 1995). |
10.09B* |
Articles of Association of Slovenska Televizna Spolocnost, s.r.o. founded by CME Media Enterprises, B.V. and Markiza-Slovak RepublicSlovak Republic s.r.o. (incorporated by reference to Exhibit 10.28B to Amendment No. 1 to the Company's Registration Statement No. 33-96900 on Form S-1, filed October 18, 1995). |
10.10* |
Contract of Sale, dated July 7, 1995 between In Razvoj in Svetovanje d.o.o. Ljubljana and Produkcija Plus d.o.o. Ljubljana and Central European Media Enterprises Group (incorporated by reference to Exhibit 10.29 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995). |
10.11* |
Loan Agreement, dated December 4, 1995, between CME Media Enterprises, B.V., and Inter Media S.R.L. (incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995). |
10.12* |
Transfer Agreement between Ceska Sporitelna and CME BV (incorporated by reference to Exhibit 10.03 to the Company's Report on Form 10-Q for the quarterly period ended June 30, 1996). |
10.12A* |
Annex to Transfer Agreement between Ceska Sporitelna and CME BV (incorporated by reference to Exhibit 10.04 to the Company's Report on Form 10-Q for the quarterly period ended June 30, 1996). |
10.13* |
Loan Agreement between Ceska Sporitelna and CME BV (incorporated by reference to Exhibit 10.05 to the Company's Report on Form 10-Q for the quarterly period ended June 30, 1996). |
10.14* |
Agreement on a Future Agreement between Ceska Sporitelna and CME BV (incorporated by reference to Exhibit 10.06 to the Company's Report on Form 10-Q for the quarterly period ended June 30, 1996). |
10.15* |
Agreement between CME, Boris Fuchsmann, Alexander Rodniansky and Innova Film GmbH in English, dated October 25, 1996 (incorporated by reference to Exhibit 10.10 to the Company's Report on Form 10-Q for the quarterly period ended September 30, 1996). |
10.16* |
Agreement between CME, Boris Fuchsmann, Alexander Rodniansky and Innova Film GmbH in German, dated October 25, 1996 (incorporated by reference to Exhibit 10.11 to the Company's Report on Form 10-Q for the quarterly period ended September 30, 1996). |
10.17* |
Share Purchase Agreement between Ceska Sporitelna a.s. and CME Media Enterprises B.V., dated December 12, 1996 (incorporated by reference to Exhibit 10.58 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.18* |
Agreement on Assignment of Claim between Ceska Sporitelna, a.s. and CME Media Enterprises B.V., dated December 12, 1996 (incorporated by reference to Exhibit 10.59 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.19* |
Assignment of Shares Agreement between Balaclava B.V., Adrian Sarbu (as shareholders of PRO TV Ltd.), CME Media Enterprises B.V., Grigoruta Roxana Dorina and Petrovici Liana, dated December 6, 1996 (incorporated by reference to Exhibit 10.60 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.20* |
Net Reimbursement Agreement by and among International Teleservices Limited, International Media Services, Limited and Limited Liability Company 'Prioritet', dated February 13, 1997 (incorporated by reference to Exhibit 10.64 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
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10.21* |
Agreement by and between International Media Services Ltd and Innova Film GmbH, dated January 23, 1997 (incorporated by reference to Exhibit 10.65 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.22* |
Amended and Restated Charter of the Enterprise 'Inter-Media', dated January 23, 1997 (incorporated by reference to Exhibit 10.66 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.23* |
Amended and Restated Charter of the Broadcasting Company 'Studio 1+1', dated January 23, 1997 (incorporated by reference to Exhibit 10.67 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.24* |
Amended and Restated Foundation Agreement on the Establishment and Operation of the Broadcasting Company 'Studio 1+1,' dated January 23, 1997 (incorporated by reference to Exhibit 10.68 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.25* |
Protocol of the Participants' Assembly of the Broadcasting Company 'Studio 1+1,' dated January 23, 1997 (incorporated by reference to Exhibit 10.69 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.26* |
Marketing, Advertising and Sales Agreement by and between International Media Services Ltd and Innova Film GmbH, dated January 23, 1997 (incorporated by reference to Exhibit 10.70 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996). |
10.26A* |
Amendment Agreement to Marketing, Advertising and Sales Agreement between Innova Film GmbH and International Media Services Limited, dated May 7, 1997 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1997). |
10.27* |
IMS Advertising Service Agreement between International Media Services Ltd. and Limited Liability Company Prioritet, dated May 7, 1997 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1997). |
10.28* |
Contract on Purchase of Real Estate between Central European Development Corporation Praha, spol s.r.o. and Ceska Nezavisla Televizni Spolecnost, spol. s.r.o., dated May 21, 1997 (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997). |
10.29+* |
Employment Agreement between CME Development Corporation and Fred Klinkhammer, dated as of January 1, 1998 (incorporated by reference to Exhibit 10.72 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997). |
10.29A+* |
Amendment No. 1 to Employment Agreement between CME Development Corporation and Fred Klinkhammer, dated as of March 23, 1999 (incorporated by reference to Exhibit 10.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998). |
10.29B+* |
Employment Agreement between Central European Media Enterprises Ltd. and Fred Klinkhammer, dated as of January 1, 1998 (incorporated by reference to Exhibit 10.72 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1997). |
10.29C+* |
Amendment No. 1 to Employment Agreement between Central European Media Enterprises Ltd. and Fred Klinkhammer, dated as of March 23, 1999 (incorporated by reference to Exhibit 10.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998). |
10.30+* |
Central European Media Enterprises Ltd. Stock Appreciation Rights Plan, effective as of September 3, 1998 (incorporated by reference to Exhibit 10.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998). |
10.31+* |
Central European Media Enterprises Ltd. Director, Officer and Senior Executive Co-Investment Plan, effective as of June 5, 1998 (incorporated by reference to Exhibit 10.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998). |
10.32* |
Contract on cooperation in ensuring service for television broadcasting between Ceska Nezavisla Televizni Spolecnost, spol. s.r.o. and CET 21, spol. s.r.o. dated May 21, 1997 and Supplement dated May 21, 1997 (incorporated by reference to Exhibit 10.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1998). |
10.33+* |
Employment Agreement between Central European Media Enterprises Ltd. And Mark J. L. Wyllie dated July 26, 2000 (incorporated by reference to Exhibit 10.45 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2000). |
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10.34* |
Aldwych House Lease Agreement, dated September 29, 2000 (incorporated by reference to Exhibit 10.46 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2000). |
10.35* |
Advertising Sales Agency Agreement between Studio 1+1 and Servland Continental S.A. dated March 14, 2001 (incorporated by reference to Exhibit 10.47 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2000). |
10.36* |
Share Purchase Agreement for shares in Media Pro S.R.L. dated as of May 3, 2001, among Mr. Adrian Sarbu, Mr. Ion Tiriac and CME Romania B.V. (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2001). |
10.37* |
Employment Agreement between CME Development Corporation and Robert E. Burke dated July 6, 2001 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2001). |
10.38* |
Loan Agreement between Ceska Sporitelna, a.s. and CME Media Enterprises B.V. dated October 5, 2001 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001). |
10.39* |
Ceska Sporitelna, a.s. General Terms and Conditions for the Provision of Loans dated October 5, 2001 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001). |
10.40* |
Contract of Security Assignment of a Receivable between Ceska Sporitelna, a.s. and CME Media Enterprises B.V. dated October 5, 2001 (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001). |
10.41* |
Exclusive Contract of Providing and Broadcasting of Television Signal between Markiza Slovak RepublicSlovak Republic s.r.o. and Slovenska Televizna Spolocnost s.r.o. dated August 30, 1996 (incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001). |
10.42* |
Exclusive Rights Transfer Agreement between Markiza- Slovak RepublicSlovak Republic s.r.o and Slovenska Televizna Spolocnost s.r.o. dated October 3, 2001 (incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001). |
10.43* |
Key Agreement Boris Fuchsmann, Alexander Rodniansky, Studio 1+1 Ltd, Innova Film GmbH, International Media Services Ltd, Ukraine Advertising Holding, CME Ukraine GmbH and CME Ukraine B.V entered into as of December 23, 1998 (incorporated by reference to Exhibit 10.43 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2001). |
10.44* |
Memorandum of Association of Slovenska televizna spolocnost s.r.o (incorporated by reference to Exhibit 10.44 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2001). |
10.45* |
Articles of Association of Slovenska televizna spolocnost s.r.o (incorporated by reference to Exhibit 10.45 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2001). |
10.46* |
Amended Memorandum of Association Markiza Slovak RepublicSlovak Republic spol. s.r.o (incorporated by reference to Exhibit 10.46 to the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2001). |
10.47* |
Senior Secured Credit Agreement between CME Media Enterprises B.V. and Imperial Asset Management LLC., dated July 31,2002 (incorporated by reference to Exhibit 10.47 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002). |
10.48* |
Common Stock Registration Rights Agreement, dated July 31, 2002 (incorporated by reference to Exhibit 10.48 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002). |
10.49* |
Common Stock Purchase Warrant Agreement, dated July 31, 2002 (incorporated by reference to Exhibit 10.49 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002). |
10.50* |
Loan arrangement between Vseobecna userova banka a.s and S.T.S. s.r.o,, dated July 24, 2002 (incorporated by reference to Exhibit 10.50 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2002). |
10.51* |
Loan Agreement No. 06/02-SIN dated December 16, 2002 made among Produkcija Plus Storitveno Podjetje d.o.o., LJUBLJANA as the borrower and Bank Austria Creditanstalt d.d., Ljubljana and Nova Ljubljanska Banka d.d. as lenders and Bank Austria Creditanstalt d.d., Ljubljana as agent. |
Page 130 | ||
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10.52* |
Share Exchange Agreement re: TELE 59 and POP TV dated January 30, 2003 |
10.53* |
Share Exchange Agreement re: TELE 59 and Pro Plus dated January 30, 2003 |
10.54* |
Share Transfer Agreement re: POP TV dated January 30, 2003 |
10.55* |
TELE 59 (fifty nine) d.o.o. Maribor Share Sale and Transfer Agreement dated December 13, 2002 |
10.56* |
Share Transfer Agreement re: Kanal A dated January 29, 2003 |
10.57* |
Share Transfer Agreement re: TELE 59 dated January 30, 2003 |
10.58* |
Share Transfer Agreement re: Pro Plus dated January 30, 2003 |
21.01* |
List of subsidiaries |
23.01* |
Consent of Deloitte & Touche |
24.01* |
Power of Attorney, dated as of March 10, 2003, authorizing Fred T. Klinkhammer and Mark J. L. Wyllie as attorney for Ronald S. Lauder, Fred T. Klinkhammer, Jacob Z. Schuster, Marie-Monique Steckel, Alfred W. Langer, Charles Frank, Herb Granath, Bruce Maggin and Mark J. L. Wyllie |
31.01 |
Sarbanes-Oxley Certification S302. CEO |
31.02 |
Sarbanes-Oxley Certification S302. CFO |
32.01 |
Sarbanes-Oxley Certification CEO and CFO, dated November 14, 2003 |
|
|
|
|
* |
Previously filed exhibits |
+ |
Exhibit is a management contract or compensatory plan |
|
|
b) |
Current Reports on Form 8-K: None |
c) |
Exhibits: See (a)(3) above for a listing of the exhibits included as part of this report. |
d) |
Report of Independent Public Accountants on Schedule II Schedule of Valuation Allowances. (See pages S-1 to S-3 of this Amendment No. 2 to Form 10-K/A) |
|
|
Page 131 | ||
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|
Central European Media Enterprises Ltd. |
|
By: /s/ Wallace Macmillan
Wallace Macmillan
Principal Financial Officer |
| |
|
November 14, 2003 |
Page 132 | ||
| ||
Report of Independent Public Accountants on Schedule |
S-2 |
Schedule II : Schedule of Valuation Allowances |
S-3 |
Page 133 | ||
| ||
Page 134 | ||
| ||
|
Balance at January 1, 2002 |
Charged to Costs and Expenses |
Charged to Other Accounts (1) |
Deductions |
Balance at December 31, 2002 |
Bad debt provision |
8,219 |
354 |
(1,055) |
(37) |
7,481 |
Development costs |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
Balance at January 1, 2001 |
Charged to Costs and Expenses |
Charged to Other Accounts |
Deductions |
Balance at December 31, 2001 |
Bad debt provision |
3,539 |
6,399 |
(211) |
(1,508) |
8,219 |
Development costs |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
Balance at January 1, 2000 |
Charged to Costs and Expenses |
Charged to Other Accounts |
Deductions |
Balance at December 31, 2000 |
Bad debt provision (2) |
3,221 |
419 |
(48) |
(53) |
3,539 |
Development costs |
- |
- |
- |
- |
- |
|
|
|
|
|
|
Page 135 | ||
| ||