Q3 2023 Highlights
(Compared to Q3 2022)
- Revenue increased 59.6% to
$7.0 million ; - Adjusted EBITDA1 increased 159.2% to
$3.6 million ; - Net income was
$2.5 million compared to a loss of$0.3 million ; - Television and Documentary division (“Abacus”) acquired three major releases (Scrublands, The Boy That Never Was and The Cuckoo);
- The Film Distribution (“101 Films”) division had a slower quarter as the film industry was impacted by the work stoppages in
Hollywood .
“Our third quarter was highlighted by strong growth in revenue and profitability,” said
“We acknowledge the difficulties faced by the film industry, but we firmly believe these are cyclical. Our dedication to delivering quality content across various platforms remains steadfast. We continue to invest in a wide range of quality productions and see stronger growth opportunities, particularly on the TV side of our business. We are optimistic about the future and are committed to delivering value to our shareholders, independent storytellers, and audiences alike."
Selected Financial Information
Audited | Three months ended | |||||
2023 $ | 2022 $ | Change % | ||||
Revenue | 6,960,430 | 4,360,217 | 59.6% | |||
Direct costs | 1,271,718 | 868,743 | 46.4% | |||
Operating expenses | 3,383,657 | 2,970,301 | 13.9% | |||
Other expenses (income) | (211,676) | 837,962 | (125.3%) | |||
Net profit (loss) | 2,516,731 | (316,789) | 894.5% | |||
Adjusted EBITDA1 | 3,568,798 | 1,376,849 | 159.2% |
Audited | Nine months ended | |||||
2023 $ | 2022 $ | Change % | ||||
Revenue | 15,043,230 | 12,071,963 | 24.6% | |||
Direct costs | 1,921,768 | 1,959,090 | (1.9%) | |||
Operating expenses | 10,405,442 | 7,179,315 | 44.9% | |||
Other expenses (income) | 10,836 | 1,226,898 | (99.1%) | |||
Net profit (loss) | 2,705,184 | 1,724,660 | 56.9% | |||
Adjusted EBITDA1 | 6,738,188 | 5,008,393 | 34.5% |
(1) Adjusted EBITDA is a non-IFRS measure. See the “Non-IFRS Measures” section for reconciliation to net income.
Third Quarter Overview
Revenue (net sales after royalties) for the quarter increased by 59.6% to
Direct costs in the quarter increased 46.4% to
Adjusted EBITDA increased 159.2% to
Amcomri’s financial statements and management’s discussion and analysis, for the three-month and nine-month periods ended
Correction of Prior Period Disclosure
During the preparation of the financial statements for the three and nine-month periods ended
Non-IFRS Measures
This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (termed "non-IFRS measures"). Non-IFRS measures are used by management to assess the financial and operational performance of Amcomri. The Company believes that these non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards, enable investors to evaluate Amcomri’s operating results, underlying performance and prospects in a similar manner to the Company's management. As there are no standardized methods of calculating these non-IFRS measures, Amcomri’s approach may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards.
Amcomri defines EBITDA as net income before interest, taxes, depreciation and amortization. EBITDA is intended to provide a proxy for Amcomri’s operating cash flow and is widely used by industry analysts to compare companies. Adjusted EBITDA removes one-time, irregular, and non-recurring items from EBITDA.
Reconciliation of Adjusted EBITDA to Net Income
Three months ended | Nine months ended | |||
2023 (unaudited) $ | 2022 (unaudited) $ | 2023 (unaudited) $ | 2022 (unaudited) $ | |
Net Income | 2,516,731 | 316,789 | 2,705,184 | 1,724,660 |
Add: | ||||
Interest | 355,924 | 131,300 | 779,887 | 456,934 |
Tax | (177,365) | (62,066) | (27,300) | 477,829 |
Amortization and depreciation | 837,558 | 327,173 | 2,979,103 | 1,046,999 |
Share based payments | 35,950 | 410,805 | 43,755 | 415,545 |
Impairment – film distribution rights | - | 886,426 | 257,559 | 886,426 |
Adjusted EBITDA | 3,568,798 | 1,376,849 | 6,738,188 | 5,008,393 |
Forward-Looking Statements
This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the revocation of the cease trade order, Company’s growth plans, the timing of release of the Company’s films and the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions.
Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; the risks and uncertainties associated with foreign markets; and those risks and uncertainties that are described in the section entitled “Risk Factors” in the Company’s annual information form dated
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. All of the forward-looking statement contained in this press release are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation.
Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained herein are provided as of the date hereof, and the Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law. Investors are cautioned that, trading in the securities of the Company should be considered highly speculative.
About
For further information about Amcomri, see its disclosure documents on SEDAR at www.sedar.com or visit the company’s website at https://amcomrientertainmentinc.com/
For more information, please contact: | |
Larry Howard | |
Amcomri, Chief Financial Officer | |
Email: larry.howard@amcomri.com | Email: theisler@maisonbrison.com |
Phone: +353-87-686-8255 | Phone: 1-416-500-8061 |
Source:
2023 GlobeNewswire, Inc., source