Alliance Atlantis Communications Inc. Reports Results For The First Quarter Ended June 30, 1999.TORONTO--(BUSINESS WIRE)--Aug. 26, 1999-- (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AACB AACB Australasian Association of Clinical Biochemists AACB Alliance Atlantis Communications Inc. AACB Aeronautics and Astronautics Coordinating Board AACB Aeronautics & Astronautics Coordinating Board AACB Ann Arbor Concert Band (Ann Arbor, MI) ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AAC (Advanced Audio Coding) An audio compression technology that is part of the MPEG-2 and MPEG-4 standards. AAC, especially MPEG-4 AAC, provides greater compression and better sound quality than MP3, which also came out of the MPEG standard. .A.) (ME:AAC.A.) (TSE:AAC.B.) (ME:AAC.B.) - Revenues of $163.3 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $17.9 million increased 31 percent and 38 percent, respectively, compared to last year on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis. - Strong quarter for domestic Motion Picture Distribution fueled by the box office strength of Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum Powers: The Spy Who Shagged shag 1 n. 1. A tangle or mass, especially of rough matted hair. 2. a. A coarse long nap, as on a woolen cloth. b. Cloth having such a nap. 3. A rug with a thick rough pile. Me. ALLIANCE ATLANTIS Alliance Atlantis Communications Inc. (formerly traded as TSX:AAC) is a Toronto-based media company, which now operates primarily as a specialty service operator in Canada. COMMUNICATIONS INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (ALLIANCE ATLANTIS) today announced results for its first quarter ended June June: see month. 30, 1999. Unless otherwise indicated, the comparative information for the prior year is presented on a pro forma combined basis as if the merger had occurred on April 1, 1998. Revenues for the first quarter increased by 31 percent to $163.3 million, compared to $124.6 million last year. Revenue growth resulted from very strong performance by the Motion Picture Group and growth in subscriber revenue in the Broadcasting Group. Corporate and Other also contributed increased revenues in the quarter as compared to the previous year on the strength of Alliance Atlantis Equicap's structured financing business. Gross profit for the quarter increased by 13 percent to $34.0 million, compared to $30.1 million last year. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $18.0 million. This represents a reduction of $0.8 million as compared to the fourth quarter of fiscal 1999 and a reduction of $5.3 million as compared to the third quarter of fiscal 1999, which was the first full quarter of operations following the completion of the merger. During the quarter, ALLIANCE ATLANTIS recorded a $1.6 million after tax gain on the sale of a portion of the Company's interest in ExtendMedia (formerly, Digital Renaissance). ALLIANCE ATLANTIS acquired its initial stake in ExtendMedia last August and continues to own approximately 10 percent of the company. Net earnings for the first quarter were $7.1 million compared to $4.8 million in the prior year. Earnings per share were $0.24 basic and $0.23 fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. based on 25.1 million and 27.7 million common shares outstanding, respectively, versus $0.17 basic and fully diluted in the prior year based on 22.4 million common shares outstanding. "We are pleased by our performance in the first quarter of our first fiscal year following the merger", said Michael MacMillan Michael I.M. MacMillan is the current executive Chairman of Alliance Atlantis. Winner of one Academy Award A graduate of Queen's University, it was announced on November 29, 2006, that he had been elected, as of January 1, 2007, as Chair of the Board of Governors of , Chairman and Chief Executive Officer. "We have achieved significant revenue and EBITDA gains over last year in what is our seasonally slowest period for production and are on track to achieve the savings in operating costs operating costs npl → gastos mpl operacionales that we have promised for the current fiscal year. We look forward to a very exciting year with margin improvement in the coming quarters with the delivery of our new, higher margin television series and with continued strength and growth in our other core businesses." Television Group Television Group's revenues in the first quarter ended June 30, 1999 increased marginally to $68.2 million from $67.6 million in the previous year. Deliveries in the quarter consisted of 28 hours of television series and 8 hours of television movies (MOWs). Television series delivered in the quarter included episodes of Outer Limits (Global), Gene Roddenberry's Earth: Final Conflict (Tribune tribune, in ancient Rome, one of various officers. The history of the office of tribune is closely associated with the struggle of the plebs against the patrician class to achieve a more equitable position in the state. From c.508 B.C. and CTV CTV Canadian Television (Network Limited) ), Sixth Grade Alien (FOX FAMILY and YTV YTV Pääkaupunkiseudun Yhteistyövaltuuskunta (Finnish: Helsinki Metropolitan Area Council) YTV Yorkshire Television YTV Youth Television ), Hoze Houndz (Family Channel) and The Famous Jett Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. (Disney Channel  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. ). Television movies
delivered included the highly acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. Joan of Arc Joan of Arc, Fr. Jeanne D'Arc (zhän därk), 1412?–31, French saint and national heroine, called the Maid of Orléans; daughter of a farmer of Domrémy on the border of Champagne and Lorraine. for CBS (Cell Broadcast Service) See cell broadcast. (also broadcast on CBC (1) (Cell Broadcast Center) See cell broadcast. (2) (Cipher Block Chaining) In cryptography, a mode of operation that combines the ciphertext of one block with the plaintext of the next block. in Canada). Joan of Arc recently won the prestigious American Television Critics Association The Television Critics Association (or TCA) is a group of approximately 200 United States and Canadian journalists and columnists who cover television programming. They meet in the Los Angeles area twice a year, in January and July, in conferences known as Winter and Summer award for outstanding achievement in movies, mini-series and specials and received an unprecedented 13 Primetime Emmy Award The Primetime Emmy Awards are awards presented by the Academy of Television Arts & Sciences in recognition of excellence in American primetime television programming. First awarded in 1949, they were originally referred to as just the "Emmy Awards" until the first Daytime Emmy nominations in the movies and mini-series category, making it the most nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. movie or mini-series and the second most nominated television program overall. The 51st Annual Primetime Emmy Awards will be televised by the FOX Television Network on Sunday Sunday: see Sabbath; week. , September 12, 1999. Gross profit for the Television Group in the first quarter was $6.6 million compared to $12.0 million in the prior year. Gross profit as a percentage of revenues was 9.7 percent in the current year, compared to 17.8 percent in the prior year. The decrease in gross margin in the current year is a result of the delivery of productions with lower than average margins in the current quarter compared to the delivery of productions with higher than average margins in the prior year. Gross margin is expected to increase in the second and subsequent quarters as the Company begins delivering its higher margin productions in those periods, including Peter Benchley's Amazon, Cold Squad Cold Squad is a Canadian procedural police series that follows the investigations of a part of the Vancouver PD Homicide Division tasked with solving cold cases, the titular Cold Squad, as led by Sgt. Ali McCormick (Julie Stewart). , Drop the Beat (formerly In Tha' Mix), PSI FACTOR(r) and Beastmaster. During the first quarter, Peter Benchley's Amazon and Beastmaster experienced significant growth in penetration of the U.S. syndication See syndication format. market. Peter Benchley's Amazon will now be available in 97 percent of U.S. households, and Beastmaster will be available in over 90 percent of U.S. households. EBITDA for the Television Group in the first quarter was $3.1 million compared to $6.8 million in the prior year, a decrease of 54 percent. Following the strong ratings performance of Joan of Arc, during the quarter, the Television Group began production on Nuremberg, a four hour mini-series to be delivered to TNT TNT: see trinitrotoluene. TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. in the fourth quarter starring and executive produced by Alec Baldwin, and also starring Jill Hennessy Jillian Noel Hennessy (born November 25, 1968) is a Canadian actress, known for her television roles on Law & Order and Crossing Jordan. Biography Early life Hennessy was born in Edmonton, Alberta. and Christopher Plummer. Motion Picture Group Revenues for Motion Pictures increased by 62 percent to $61.4 million in the first quarter compared to $38.0 million last year. The increase in revenues resulted largely from the combination of strong performance at the box office of Austin Powers: The Spy Who Shagged Me which was released on June 11th as well as the delivery of three motion picture productions in the quarter. Austin Powers: The Spy Who Shagged Me had the second highest grossing opening weekend in Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. movie history and is the highest grossing motion picture in the Company's history. The cumulative box office for the film exceeded $14 million during the first quarter and is now approaching $20 million. During the quarter, the Motion Picture Group delivered three films: Five Senses, Felicia's Journey and A Room for Romeo Brass. Felicia's Journey, which premiered to audience acclaim and posted strong international sales at the Cannes Film Festival Cannes Film Festival Film festival held annually in Cannes, France. First held in 1946 for the recognition of artistic achievement, the festival came to provide a rendezvous for those interested in the art and influence of the movies. in May, has been selected as the opening night gala film for the Toronto International Film Festival in September. Alliance Atlantis Cinemas
Alliance Atlantis Cinemas is a small theatre chain nominally headquartered in Vancouver, British Columbia which currently operates two small urban theatres in Toronto, contributed $1.8 million in revenues in the first quarter, which exceeded our expectations in what is traditionally a slow period for independent film releases. During the quarter, the six screen state-of-the-art Alliance Atlantis Cinemas The Beach was opened in Toronto. This brings the total number of screens in the chain to 16, at two locations in Toronto and two in Vancouver. Gross profit for Motion Pictures in the quarter was $10.3 million compared to $8.7 million last year. Gross profit as a percentage of revenues was 16.8 percent compared to 23.0 percent last year. The decline reflected a lower margin in motion picture production compared to the prior year. EBITDA for the Motion Picture Group increased 35 percent to $8.4 million from $6.2 million in the first quarter last year. During the quarter, ALLIANCE ATLANTIS renewed its exclusive motion picture distribution agreement with New Line Cinema to the end of 2001. ALLIANCE ATLANTIS has had the exclusive right to distribute in Canada all motion pictures from New Line Cinema since 1989. Under this arrangement, ALLIANCE ATLANTIS distributes box office hits including Austin Powers: The Spy Who Shagged Me, The Wedding Singer, Rush Hour and Dumb and Dumber. The Motion Picture Group also entered into an exclusive long term distribution agreement with Canal Plus Image Motion Pictures under which the Company will distribute in Canada, in all media, 1,150 feature films from its catalogues with titles including Terminator (1) A character that ends a string of alphanumeric characters. (2) A hardware component that is connected to the last peripheral device in a series or the last node in a network. II and Total Recall. Broadcasting Group Revenues for Broadcasting increased by 24 percent to $22.1 million in the first quarter of this year compared to $17.8 million last year. The increase resulted from higher subscriber revenues for each of the four television networks. Gross profit for the Broadcasting Group increased by 32 percent in the quarter to $11.6 million compared to $8.8 million last year. Gross profit as a percentage of revenues improved to 52.4 percent from 49.3 percent last year. EBITDA for the Broadcasting Group was $5.6 million this year compared to $4.3 million last year, an increase of 31 percent. During the quarter, the CRTC CRTC Canadian Radio-Television & Telecommunications Commission CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column granted permission to ALLIANCE ATLANTIS to integrate its four television networks, which had been placed in trust since the time of the merger pending the CRTC decision. ALLIANCE ATLANTIS moved quickly to begin the integration of the Broadcasting Group and realize the synergies and cost reductions associated with this division. Phyllis Yaffe was named President of Alliance Atlantis Broadcasting and the new senior management team was unveiled within days of the CRTC decision. In addition, termination notices have been given to 42 full- and part-time employees. Also during the quarter, the CRTC awarded two French-language licences to ALLIANCE ATLANTIS in partnership with Astral (language) Astral - A programming language based on Pascal, never implemented. ["ASTRAL: A Structured and Unified Approach to Database Design and Manipulation", T. Amble et al, in Proc of the Database Architecture Conf, Venice, June 1979]. Communications. The new networks, Canal Fiction and Canal Histoire, are French-language equivalents of Showcase and History Television, respectively, and will be launched in Quebec in early 2000. During the quarter, the Company filed an application with the CRTC for permission to complete the acquisition of its 47.85 percent interest in Headline Sports. The Company anticipates a decision from the CRTC by the end of the calendar year. Corporate and Other Revenues for the Corporate and Other Group increased to $11.7 million from $1.1 million in the prior year. The gain was attributable to significant activity for Alliance Atlantis Equicap, which closed a significant number of structured financing transactions in the quarter, compared to nil in the prior year. The Company does not anticipate that this quarter's level of activity for Alliance Atlantis Equicap will continue for the balance of the year. Gross profit for the Corporate and Other Group was $5.6 million compared to $0.6 in the first quarter last year. The gross margin of 48 percent is consistent with the historical gross margin for the Company's structured financing transactions. EBITDA for the Corporate and Other Group was $0.8 million in the first quarter, compared to negative EBITDA of $4.2 million last year. On August 20, the Company closed a private placement of special warrants exercisable into Class B Non Voting Shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. with the principal shareholders of Kinowelt Medien AG. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $132 million were fully applied to reduce shorter term indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . During the quarter, ALLIANCE ATLANTIS announced the creation of the New Media division, headed by Juris [Latin, Of right; of law.] A phrase that serves as the root for diverse terms and phrases dealing with the law; for example, jurisdiction, Jurisprudence, or jurist. Silkans, formerly President of Atlantis Broadcasting. New Media will lead the Company's new media strategy and develop new products for the internet and other new technologies. It also intends to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. ALLIANCE ATLANTIS' strength in broadcasting to explore new methods of delivering content and products featured on our television networks directly to the consumer. ALLIANCE ATLANTIS COMMUNICATIONS INC. is a leading international creator, producer, distributor and broadcaster of filmed entertainment with significant ownership interests in seven Canadian specialty television networks. The Company's principal business activities are conducted through three operating groups: Television, Motion Picture and Broadcasting. Headquartered in Toronto, ALLIANCE ATLANTIS operates offices in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Montreal, Vancouver, London, Sydney, and Shannon. The Company's common shares are listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and The Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg - trading symbols Trading symbol See: Ticker symbol AAC.A, AAC.B and on NASDAQ trading symbol AACB. This press release and attachments contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. -0-
ALLIANCE ATLANTIS COMMUNICATIONS INC.
CONSOLIDATED BALANCE SHEETS
as at June 30, 1999 and March 31, 1999
(in thousands of Canadian dollars)
(unaudited)
June 30 March 31
1999 1999
Assets
Cash and cash equivalents 71,381 56,883
Accounts receivable 551,890 470,058
Loans receivable 38,292 39,934
Income taxes 17,853 32,020
Investment in film and
television programs 668,288 542,722
Development costs 25,995 23,407
Property and equipment 40,991 38,662
Broadcast licences 77,865 78,297
Goodwill and other assets 106,846 103,371
-------------------------
1,599,401 1,385,354
-------------------------
Liabilities
Revolving term loans 472,056 437,030
Accounts payable and
accrued liabilities 351,914 277,956
Deferred revenue 258,527 149,337
Other term loans 42,969 48,439
Convertible debentures 8,794 8,794
Minority interest 9,017 8,941
---------------------------
1,143,277 930,497
---------------------------
Shareholders' Equity
Capital stock 439,773 438,354
Retained earnings 19,178 13,133
Cumulative translation
adjustments (2,827) 3,370
--------------------------
456,124 454,857
--------------------------
1,599,401 1,385,354
--------------------------
ALLIANCE ATLANTIS COMMUNICATIONS INC.
CONSOLIDATED STATEMENTS OF EARNINGS
For the three month periods ended June 30, (in thousands of
Canadian dollars - except per share amounts)
(unaudited)
1999 1998 1998
(Actual)
(Actual) (Actual) (Proforma)
Revenues
Television 68,212 32,946 67,623
Motion Picture 61,376 38,011 38,011
Broadcasting 22,071 8,976 17,814
Corporate and Other 11,650 719 1,142
-----------------------------------------------------------------------
163,309 80,652 124,590
-----------------------------------------------------------------------
Direct Operating Expenses
Television 61,629 24,793 55,595
Motion Picture 51,049 29,274 29,274
Broadcasting 10,517 3,599 9,037
Corporate and Other 6,066 539 538
-----------------------------------------------------------------------
129,261 58,205 94,444
-----------------------------------------------------------------------
Gross Profit
Television 6,583 8,153 12,028
Motion Picture 10,327 8,737 8,737
Broadcasting 11,554 5,377 8,777
Corporate and Other 5,584 180 604
-----------------------------------------------------------------------
34,048 22,447 30,146
-----------------------------------------------------------------------
Other Operating Expenses
Television 4,877 4,934 5,744
Motion Picture 2,499 3,132 3,132
Broadcasting 5,916 2,858 4,489
Corporate and Other 4,749 2,999 4,831
----------------------------------------------------------------------
18,041 13,923 18,196
-----------------------------------------------------------------------
Earnings Before the
Undernoted 16,007 8,524 11,950
Amortization (4,546) (1,744) (3,474)
Interest (3,352) (694) (1,184)
Minority Interest (159) (118) (128)
Gain on Sale of
Investments 2,450 -- --
-----------------------------------------------------------------------
Earnings Before Income
Taxes 10,400 5,968 7,164
Provision for Income
Taxes 3,308 1,835 2,372
-----------------------------------------------------------------------
Net Earnings For the
Period 7,092 4,133 4,792
Dividends on Preferred
Shares (258) -- (258)
Accretion of Conversion
Feature of Preferred Shares (789) -- (789)
-----------------------------------------------------------------------
Net Earnings Available to
Common Shareholders 6,045 4,133 3,745
-----------------------------------------------------------------------
EPS Information:
Weighted Average Shares
Outstanding (000's) 25,102 16,176 22,394
Basic Earnings Per Share 0.24 0.26 0.17
Fully Diluted Weighted
Average Shares
Outstanding (000's) 27,705 18,367 22,394
Fully Diluted Earnings
Per Share 0.23 0.24 0.17
-----------------------------------------------------------------------
EBITDA
Television 3,102 3,716 6,781
Motion Picture 8,355 6,197 6,197
Broadcasting 5,638 2,519 4,288
Corporate and Other 835 (2,819) (4,227)
-----------------------------------------------------------------------
Total EBITDA 17,931 9,613 13,039
-----------------------------------------------------------------------
EBITDA excludes $5,276 (1998 - $1,783) of interest - $3,352
(1998 - $694) of which has been charged to interest and $1,924
(1998 - $1,089) of which has been charged to direct operating expenses
during the year. On a pro forma basis, 1998 EBITDA excludes $2,273 of
interest - $1,184 of which has been charged to interest and $1,089 of
which has been charged to direct operating expenses.
-----------------------------------------------------------------------
Note: The Company's "Actual" results of operations, as reported above,
include the activities of Atlantis Communications Inc. and its
subsidiaries from the date of the merger, September 21, 1998, and the
results of Alliance Communications Corporation for all periods noted
ALLIANCE ATLANTIS COMMUNICATIONS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended June 30
(in thousands of Canadian dollars)
(unaudited)
1999 1998
Cash and Cash Equivalents
provided by (used in):
Operating Activities
Net earnings for the period 7,092 4,133
Items not affecting cash:
Amortization of film and
television programs 120,553 57,513
Amortization of development costs 1,045 475
Amortization of property and equipment 1,989 1,097
Amortization of broadcasting licences 432 56
Amortization of goodwill and other
assets 1,080 116
Gain on sale of investments (2,450) -
Minority interest 159 118
Net changes in other non-cash balances
related to operations 105,083 (15,419)
------- ------
234,983 48,089
Investing Activities
Loans receivable 1,642 5,216
Film and television programs (246,119) (129,447)
Development costs (3,633) (3,151)
Property and equipment (4,318) (1,417)
Business acquisitions - (2,625)
Minority interest in acquired businesses - 875
Long-term investments, net of proceeds
from sale 2,645 -
------- -------
(249,783) (130,549)
Financing Activities
Revolving term loans 35,026 83,485
Other term loans (5,470) 417
Issue of common shares - 431
Dividends (258) -
------- -------
29,298 84,333
Increase in Cash and Cash Equivalents 14,498 1,873
Cash and Cash Equivalents, Beginning
of Period 56,883 2,430
Cash and Cash Equivalents, End of
Period 71,381 4,303
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