Amcomri added 2,400 hours of TV and 1,400 films to content library in 2022
VANCOUVER, BRITISH COLUMBIA, April 14, 2023 — Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (NEO: AMEN) (OTC: AMNNF) (Frankfurt: 25Y0), a global producer and distributor of independent movies, TV series and documentaries, announced today financial results for the fourth quarter and year ended December 31, 2022. All dollar amounts are in Canadian dollars unless otherwise stated.
- Adjusted EBITDA for the year was $5,089,594 despite a loss of $147,561 in the fourth quarter;
- Television and documentary (Abacus Media Rights Limited) revenue increase 41% in 2022;
- Revenue for the quarter decreased 40% to $1,799,538 compared to Q4 2021, resulting in revenue of $13,889,501 for the year, which was flat compared to the prior year;
- Movie production performance continued to be impacted by production delays;
- Recorded non-cash impairment charges totalling $1,217,983 pertaining to the de-recognition of the Screen Media distribution rights out of Amcomri Productions and two film titles that received negligible deals for distribution as at December 31, 2022;
- Net loss was $2,084,592 for the quarter and $359,932 for the year.
“In 2022, we made great strides in expanding our business and increasing our market share,” said Robert Price, Chief Executive Officer of Amcomri. “We completed three content library acquisitions, expanded our global reach, solidified partnerships with broadcasters and streaming platforms, and now offer aggregation and scale to nearly 200 independent producers. Our TV business performed particularly well and continues to benefit from strong demand from streaming services and broadcasters. And, despite delays on the film side of our business, which impacted our 2022 financial results, our successful theatrical release of ‘Left Behind – Rise of the Antichrist’ this past January highlights the strides we made in developing our in-house production capabilities in 2022.”
“Looking ahead, we’re particularly excited about the continued opportunities for our TV business. We have a great slate of programs for 2023, including big dramas like Scrublands. We have plans for co-producing four TV shows and four films this year. At the same time, we remain focused on expanding our global distribution channels, with a specific focus on North America, and growing our content portfolio to feed the strong demand from streaming channels.”
Fourth Quarter Overview
Revenue for the quarter decreased 40% to $1,799,538 compared to $3,014,621 for the same period in 2021. Revenue in the fourth quarter was negatively impacted by the delay of five movies titles to the Company, which held back sales at 101 Films International, the Company’s international sales agency business. Three of the five titles have now been delivered to the Company and sales activity has commenced. The Company expects to receive the other two titles later in 2023.
Operating expenses for the quarter amounted to $4,038,938, an increase of $2,337,376 compared to the same quarter the prior year. Contributing to the rise were a $562,188 increase in professional fees attributable to additional sales consultants in both TV and film production, ICFR accreditation consultancy fees, audit fees and taxation advisors. Sales and benefits increase by $365,318 as a result of the significant growth in the Company, including the hiring of an executive management team, and two additional employees joining the Company in the third quarter (a Head of Legal Affairs and an Acquisitions Manager). Other significant contributors to the rise in operating expenses included higher advertising and promotion expenses; higher interest and bank charges attributable to funding ‘Left Behind: Rise of the Antichrist’ and other films; and other increases attributable to the growth of the Company.
Based on the assessment as at December 31, 2022, Amcomri recorded a non-cash impairment charge of $428,356 related to two film titles that received negligible deals for distribution as at December 31, 2022.
Excluding the one-off non-cash charges above, Adjusted EBITDA for the quarter amounted to a loss of $147,561 compared to Adjusted EBITDA of $1,552,139 in the fourth quarter of 2021.
The Company reported a net loss of $2,084,592 for the quarter compared to net income of $170,586 for the fourth quarter in the prior year.