Mills Music Trust reported its financial performance for the three and six months ended June 30, 2026, showing a notable increase in cash receipts from EMI Mills Music Inc. The Trust received $225,863 in the second quarter of 2026, up from $202,850 in the same period of 2025. For the first half of 2026, total receipts reached $650,023, compared to $463,609 for the first half of 2025. The Trust's administrative expenses for the second quarter were $132,540, slightly higher than the $128,795 reported in the previous year. The balance available for distribution to unit holders was $93,323 for the second quarter of 2026, compared to $138,033 in the same quarter of 2025.
The Trust's cash distributions to unit holders have also seen significant changes. In June 2026, the Trust distributed $93,323, translating to $0.3360 per Trust Unit, marking a return to distributions after a period of no payouts in the previous year. This follows a distribution of $438,618 ($1.5794 per Trust Unit) in March 2026, which included payments from the fourth quarter of 2025. The Trust's cash position at the end of June 2026 showed no undistributed cash, reflecting a strategic decision to distribute available funds to unit holders.
Operationally, the Trust continues to rely on EMI for the collection of royalties from its music catalogue, which consists of over 12,000 titles. Approximately 1,430 of these titles have generated royalty income in recent years. The Trust's income is influenced by the popularity of these songs and the ongoing disputes regarding the calculation of the Contingent Portion payments. As of June 30, 2026, the Trust reported a total of $346,363 in underpayments from EMI related to the Calculation Method Dispute, which remains unresolved.
Looking ahead, the Trust's management has expressed uncertainty regarding the future recovery of underpayments and the resolution of ongoing disputes with EMI. The Trust's financial health is closely tied to EMI's ability to maintain its rights to the catalogue and the effectiveness of its royalty collection efforts. The Trust's governance structure remains unchanged, with HSBC Bank, USA, N.A. serving as the Corporate Trustee and Lee Eastman as the Individual Trustee. The Trust does not anticipate any significant changes in its operational strategy or financial reporting requirements in the near term.
About MILLS MUSIC TRUST
Mills Music Trust is a passive entity established to receive and distribute royalty payments derived from a music and lyric copyright catalog. It does not own copyrights or collect royalties directly but distributes income from a contingent payment obligation based on royalty income generated by the catalog, managed by EMI and Sony/ATV. The Trust primarily serves trust unit holders through quarterly distributions, with a focus on royalty income from historic music titles.
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