Amcomri Entertainment continues to add high-margin titles to growing content library
Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (NEO: AMEN) (OTC: AMNNF) (Frankfurt: 25YO), a global producer and distributor of independent movies, TV series and documentaries, announced today financial results for the three and six months ended June 30, 2022. All dollar amounts are in Canadian dollars unless otherwise stated.
- • Group revenues for the six months ended June 30, 2022, were 6.0% ahead of the same comparable six-month period last year;
- • EBITDA of $3,455,418 for the six months ended June 30, 2022, exceeded management budgets and fell just short of the same time period last year despite the impact of delays in production deliveries;
- • Net income before translation adjustment of $2,041,449 for the six months ended June 30, 2022;
- • Abacus Media Rights Limited (TV) and 101 Films Limited (Movie Distribution) performed strongly as a result of demand from streaming services; and
- • Acquired the assets of Flame Media, a UK and Australian-based global distributor of factual and documentary TV content, for total consideration of approximately C$3.0 million.
“We had a very active second quarter as a publicly traded company,” said Robert Price, Chief Executive Officer of Amcomri. “While our revenues for the quarter were impacted by timing and production delays, we expect this to benefit our results in the back half of the year, and our revenue for the first six months remains 6.0% ahead of this time last year. Our gross margin percentage strengthened as we continued to add higher margin titles to our ever-growing content library. And we continued to demonstrate our commitment and ability to execute our diversified growth strategy.”
“Speaking of growth, during the quarter, we acquired the assets of Flame Media, adding exceptional TV content to our fast-growing library. We also expanded our global footprint in the independent movie and TV distribution markets through a series of agreements with producers at the world-renowned Marché du Film—Cannes Film Festival. Following the quarter-end, through our strategic alliance with Bohemia Media Limited, we acquired an interest in several high-quality Screen Media library assets, securing the rights to over 750 hours of feature films and TV content for the UK and Ireland. We continue to execute well across all fronts, leveraging our high-margin business for enhanced profitability while building a leading position in production, distribution, libraries and financing.”
The following table sets out selected historical financial information for Amcomri for the second quarter ended June 30, 2022. Such information is derived from and should be read in conjunction with the consolidated financial statements of Amcomri for the second quarter of 2022, which have been filed under the Company’s profile on SEDAR at www.sedar.com.
|For the three months||ended June 30||For the six months||ended June 30|
|Gross Margin Percentage||92.6%||83.5%||85.9%||78.9%|
Second Quarter Overview
Revenue for the quarter was $3,564,563, compared to $5,002,728 in the second quarter of last year. The decrease was attributable to revenue recognition timing on newly acquired libraries, and production delays at 101 Films International Limited (Movie Production) temporarily slowing the pace of new releases. Five movies originally scheduled to be released in the second quarter are now scheduled for release in the third and fourth quarters. As such, the release of these movie titles is expected to benefit the Company’s financial results in the second half of the year.
As a percentage of revenues, gross margin increased to 92.6% compared to 83.5% in the second quarter last year. The increase was attributable to acquisition of content libraries and new projects in the TV division that have stronger margins.
Operating expenses were down 2.9% to $1,906,646, compared to $1,964,423 in the second quarter of 2021. Salaries and benefits expenses increased to $650,763, compared to $347,297 in the second quarter last year. The increase in salaries and benefits was attributable to six additional personnel joining the Company in June 2022, with four of the new hires coming from the Flame Media acquisition, bringing the total employee count to 20. Professional fees decreased to $177,773, compared to $277,927 for the same quarter of 2021.
International Financial Reporting Standards (“IFRS”) net income for the quarter totaled $1,263,174, or $0.02 per diluted share, compared to $1,601,154, or $0.03 per diluted share, in the second quarter of 2021.
EBITDA amounted to $2,235,605, or 62.7% of revenues, compared to $2,662,114, or 53.2% of revenues in the second quarter of 2021.