VANCOUVER, British Columbia, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (CBOE: AMEN) (OTC: AMNNF) (Frankfurt: 25YO), a global producer and distributor of independent movies, TV series and documentaries, announced today financial results for the second quarter ended June 30, 2023. All dollar amounts are in Canadian dollars unless otherwise stated.
Q2 2023 Highlights
(Compared to Q2 2022)
- Revenue increased 110.8% to $7.5 million;
- Adjusted EBITDA1 increased 83.5% to $4.1 million;
- Net income increased 21.4% to $1.5 million;
- Strong contributions from the digital and physical distribution of “Left Behind: Rise of the Antichrist”, Abacus (Television and Documentary division), and 101 Films (Movie Distribution);
- Paid down debt by approximately $2.2 million.
“We more than doubled our revenue and achieved strong increases in Adjusted EBITDA and net income in the second quarter,” said Robert Price, Chief Executive Officer of Amcomri. “We benefited from strong demand for “Left Behind: Rise of the Antichrist” in the quarter after the physical and digital distribution window in North America opened near the end of March. We also had strong contributions from Abacus, with two major titles released in the quarter, and continued strength from 101 Films.”
“While we continue to embrace our diversified content business model, we will be focusing more on our film and TV distribution businesses – and particularly in TV where we represent and invest in a wide range of quality productions and see stronger growth opportunities. We continue to make progress in our mission to establish Amcomri as the home for independent storytellers. And while we are monitoring the strikes in Hollywood, our existing content libraries, focus on independent productions, and the documentary side of our business should help shield us from the effects of those strikes.”
Selected Financial Information
Audited
|
Three months ended |
|
June 30,
2023
$ |
June 30,
2022
$ |
Change
% |
| Revenue |
7,513,160 |
3,546,563 |
110.8 |
% |
| Direct costs |
866,395 |
264,850 |
227.1 |
% |
| Operating expenses |
4,784,548 |
1,906,646 |
150.9 |
% |
| Other expenses (income) |
329,062 |
129,893 |
153.3 |
% |
| Net profit |
1,533,155 |
1,263,174 |
21.4 |
% |
| Adjusted EBITDA1 |
4,102,282 |
2,235,605 |
83.5 |
% |
Audited
|
Six months ended |
|
June 30,
2023
$ |
June 30,
2022
$ |
Change
% |
| Revenue |
12,631,836 |
7,729,746 |
63.4 |
% |
| Direct costs |
1,817,572 |
1,090,347 |
66.7 |
% |
| Operating expenses |
7,469,351 |
4,209,014 |
77.5 |
% |
| Other expenses (income) |
222,512 |
388,756 |
(42.8 |
%) |
| Net profit |
3,122,401 |
2,041,629 |
52.9 |
% |
| Adjusted EBITDA1 |
6,543,099 |
3,455,418 |
89.4 |
% |
(1)Adjusted EBITDA is a non-IFRS measure. See the “Non-IFRS Measures” section for reconciliation to net income.
Second Quarter Overview
Revenue (net sales after royalties) for the quarter increased by 110.8% to $7,513,160 compared to $3,546,563 for the second quarter of 2022. The increase was primarily attributable to the addition of physical and digital distribution of “Left Behind: Rise of the Antichrist,” which commenced in March of 2023. Also contributing to the increase were strong sales from Abacus (TV and Documentaries) and 101 Films.
Direct costs in the quarter increased 227.1% to $866,395, mostly due to the costs associated with physical distribution of discs for “Left Behind: Rise of the Antichrist.” Operating expenses increased 138.5%, largely due to higher headcount as a result of the significant operational growth in the past year, higher professional fees attributable to additional sales agents located in various countries, and expenses incurred in relation to accounting software.
Adjusted EBITDA increased 83.5% to $4,102,282, or 54.6% of revenue. Net profit increased 21.4% to $1,533,155, or 20.4% of revenue.
Amcomri’s financial statements and management’s discussion and analysis, for the three-month and six-month periods ended June 30, 2023, will be filed on SEDAR+ at www.sedarplus.ca on Monday, August 14, 2023, and will also be available on Amcomri’s website at www.amcomrient.com/investors.
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 |
Six months ended |
|
June 30,
2023
(unaudited)
$ |
June 30,
2022
(unaudited)
$ |
June 30,
2023
(unaudited)
$ |
June 30,
2022
(unaudited)
$ |
| Net Income |
1,533,155 |
1,263,174 |
3,122,401 |
2,041,449 |
| Add: |
|
|
|
|
| Interest |
428,569 |
126,812 |
423,963 |
154,248 |
| Tax |
139,401 |
324,327 |
150,065 |
539,895 |
| Amortization and depreciation |
1,743,598 |
521,292 |
2,589,111 |
719,826 |
| Impairment – film distribution rights |
257,559 |
- |
257,559 |
- |
| Adjusted EBITDA |
4,102,282 |
2,235,605 |
6,543,099 |
3,455,418 |
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 April 14, 2023 and in the Company’s management’s discussion and analysis for the quarter ended June 30, 2023, available under the Company’s profile on SEDAR+ at www.sedarplus.ca. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions, including COVID-19 and the strikes in Hollywood.
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. For a more detailed discussion such risks and uncertainties, please see the section entitled “Risk Factors” in the Company’s annual information form dated April 14, 2023 and in the Company’s management’s discussion and analysis for the quarter ended June 30, 2023, available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
About Amcomri Entertainment Inc.
Amcomri Entertainment Inc. (CBOE: AMEN) (Frankfurt: 25Y0) provides global distribution capabilities for independent movie, documentary and TV series producers as well as for its own in-house productions. With decades of experience across all key media platforms, Amcomri is rapidly becoming the go-to team for independent producers seeking the broadest possible audience for their productions. The Amcomri Entertainment Inc. group of companies includes 101 Films, 101 Films International, Hollywood Classics International, Amcomri Productions, Appreciated Media Global, Amcomri Productions and Abacus Media Rights.
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/
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