Mills Music Trust reported a total revenue of $1,291,775 for the fiscal year ending December 31, 2024, reflecting an increase of 4.4% from the previous year's revenue of $1,237,548. The Trust's cash distributions to Unit Holders decreased significantly, totaling $658,733, or $2.37 per Trust Unit, compared to $863,852, or $3.11 per Trust Unit, in 2023. This decline in distributions is attributed to increased administrative expenses, which rose to $633,042 from $378,071 in the prior year, impacting the amount available for distribution.
The Trust's financial performance is closely tied to the royalty income generated from its music catalogue, which consists of over 12,000 titles. Approximately 1,430 of these titles produced royalty income in recent years, primarily from songs with copyrights established before 1960. The Trust does not own the catalogue or any copyrights, relying on EMI Mills Music Inc. to collect royalties and remit the Contingent Portion payments. The Trust has faced ongoing disputes with EMI regarding the calculation of these payments, which has led to underpayments that the Trust is currently seeking to resolve.
In terms of operational developments, the Trust has maintained its structure without significant changes. As of December 31, 2024, there were 101 Trust Unit holders of record. The Trust's reliance on EMI for royalty collection and the management of the catalogue remains a critical factor in its operations. The Trustees have engaged in discussions with EMI regarding the findings of a special audit conducted by Citrin Cooperman & Company LLP, which identified potential underpayments and discrepancies in royalty calculations.
Looking ahead, the Trust's ability to generate consistent revenue is contingent upon the continued popularity of its catalogue and the effectiveness of EMI in managing and collecting royalties. The Trustees have expressed concerns regarding the long-term sustainability of royalty income due to factors such as copyright expiration and potential changes in copyright laws. The Trust has extended a tolling agreement with EMI to address ongoing disputes related to underpayments, with the current agreement set to expire on May 31, 2025. The Trustees remain cautious about the future performance of the catalogue and its impact on cash distributions to Unit Holders.
About MILLS MUSIC TRUST
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