Amcomri Reports Strong Third Quarter Results

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VANCOUVER, British Columbia, Nov. 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, today reported its financial results for the three months ended September 30, 2023 (“third quarter” or “Q3”). All dollar amounts are in Canadian dollars unless otherwise stated.

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.

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“Our third quarter was highlighted by strong growth in revenue and profitability,” said Robert Price, Chief Executive Officer of Amcomri. “Abacus had an exceptional quarter, including the acquisition of three major 2024 releases, the compulsive crime thriller, Scrublands, coming onstream, and several smaller projects being delivered. While our film business experienced both a seasonal decline and temporary setbacks due to the labour disruptions in Hollywood, the continued robust performance of our TV business has highlighted the advantage of our diversified business model.”

“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  
September 30,
2023
$
September 30,
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  
September 30,
2023
$
September 30,
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 $6,960,430 compared to $4,360,217 in Q3 of 2022. The increase was largely due to an exceptionally strong quarter for the Company’s TV business, which saw the release of several previously delayed projects, Scrublands coming onstream, and various smaller projects being delivered and recognised in revenue.

Direct costs in the quarter increased 46.4% to $1,271718, reflecting an increase in the Company’s activities in funding the development of various early stage TV projects. Operating expenses were up 13.9%, largely due to higher salaries and wages as a result of annual increases, higher management fees, and share-based compensation expenses relating to options/RSUs being recoded for the Chief Executive Officer.

Adjusted EBITDA increased 159.2% to $3,568,798, or 51.3% of revenue. Net profit was $2,516,731, or $0.03 per share, versus a loss of $316,789, or $0.01 per share, a year ago.

Amcomri’s financial statements and management’s discussion and analysis, for the three-month and nine-month periods ended September 30, 2023, will be filed on SEDAR+ at www.sedarplus.ca on November 14, 2023, and will also be available on Amcomri’s website at www.amcomrient.com/investors.

Correction of Prior Period Disclosure

During the preparation of the financial statements for the three and nine-month periods ended September 30, 2023, management identified an error in the accounting for its production loan receivable and distribution rights with Bow River Productions as reported in its Company’s financial statements for the three and six months ended June 30, 2023. The effects of the correction were applied retrospectively, and the restated balances are included in the Company’s financial statements and management’s discussion and analysis, for the three-month and nine-month periods ended September 30, 2023, which are available on SEDAR+.

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
  Sept. 30,
2023
(unaudited)
$
Sept. 30,
2022

(unaudited)
$
Sept. 30,
2023

(unaudited)
$
Sept. 30,
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 April 14, 2023 and in the Company’s management’s discussion and analysis for the quarter ended September 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.

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/

For more information, please contact:
   
Larry Howard  Trevor Heisler
Amcomri, Chief Financial Officer MBC Capital Markets Advisors
Email: [email protected] Email: [email protected]
Phone: +353-87-686-8255 Phone: 1-416-500-8061

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