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Alliance Communications Corporation Announces Fiscal 98 First Quarter Results



TORONTO Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , Aug. 25 /PRNewswire/ -- Alliance Communications Corporation (Nasdaq: ALLIF; Toronto, Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. : AAC.A, AAC.B) today announced financial results for the three months ended June 30, 1997. All currency amounts are 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.  dollars.

Consolidated revenues for the first quarter of 1998 were $66,556,000 compared to $63,517,000 reported in the same period last year. Net earnings and earnings per common share for the quarter were $7,795,000 and $0.59 respectively ($4,777,000 and $0.36 excluding the gain on sale of investment), compared to $955,000 and $0.10 reported in last year's fiscal first quarter.

Overall gross margins increased from 19.5% of gross revenue or $12.4 million, in the first quarter of fiscal 1997 to 28% of revenue, or $18.6 million this year. Gross Margin from our core production, distribution and broadcasting businesses increased from 18.8% last year, or $11.7 million to 25.7%, or $15.4 million this year.

Alliance Motion Pictures posted a 27.8% increase in year over year revenue of $41,804,000 from $32,700,000 reported in last year's first quarter. The improved returns are attributable in part to strong international sales which, in addition to The Sweet Hereafter In the future.

The term hereafter is always used to indicate a future time—to the exclusion of both the past and present—in legal documents, statutes, and other similar papers.
, were achieved by another film from our Alliance Independent Films label, the Sundance Sundance is a popular ski resort located near Provo, Utah. It was bought by the actor Robert Redford in 1968. Redford's wife was from Utah and they had built a home in the area five years earlier.  Festival award winner, In The Company of Men. Alliance Releasing added to the division's strong performance in the quarter with films such as 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 English 1. English - (Obsolete) The source code for a program, which may be in any language, as opposed to the linkable or executable binary produced from it by a compiler. The idea behind the term is that to a real hacker, a program written in his favourite programming language is  Patient, and Shine.

Lower revenues in Alliance Television in the first quarter of 1998 of $11,635,000 compared to $21,738,000 in the first quarter of 1997 were due primarily to decreased production revenues. In the first quarter of the prior year, eight hours were delivered compared to 10.5 hours in the current quarter; however, the prior year's results reflected the premium budgets of two pilots, including the two hour Once A Thief THIEF, crimes. One who has been guilty of larceny or theft. , resulting in higher revenues in the division.

Revenues for Alliance Equicap increased quarter over quarter, to $6,599,000 from $1,375,000 last year, when sales were lower due to uncertainties at that time regarding the marketability of tax shelters. Of revenues, $452,000 was generated by Equicap Financial Corporation, which did not complete it's first transaction until the third quarter in the prior year.

Alliance Broadcasting recorded increased revenues of $5,636,000 compared to $4,686,000. This strong performance reflects growth in both advertising and subscriber revenues.

Alliance Multimedia posted revenues of $882,000 down from $3,018,000 reported in last year's first quarter. The decrease in revenues was due to lower revenues in the animation production division, where five episodes of Beast Wars Beast Wars: Transformers (Beasties on YTV) is a Transformers toyline released by Hasbro between 1995 and 1999. The toys spawned a full-CG animated series set in the "original" Transformers universe, produced by Mainframe Entertainment of Canada.  were delivered in the first quarter in the prior year compared to one episode of Captain Star delivered in the current quarter.

Alliance Communications Corporation is an international, integrated entertainment company with five operating units which include Alliance Motion Pictures, Alliance Television, Alliance Broadcasting, Alliance Multimedia and Alliance Equicap with headquarters in Toronto and offices in Montreal, Vancouver Vancouver, city, Canada
Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border.
, 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. , Paris and Shannon Shannon, principal river of the Republic of Ireland and longest (c.240 mi/390 km) in the British Isles. It rises near Cuilcagh Mt., NW Co. Cavan, and flows S through the Central Plain into Co. Limerick, where it turns west in a broad estuary (c. . Shares trade in Toronto and Montreal (AAC.A, AAC.B) and on Nasdaq (ALLIF).
                     ALLIANCE COMMUNICATIONS CORPORATION
                         CONSOLIDATED BALANCE SHEETS
                    As at June 30, 1997 and March 31, 1997
                      (In thousands of Canadian dollars)
                                                    As at        As at
                                               June 30, 1997  Mar. 31, 1997
                                                  (Unaudited)


ASSETS
       Cash and short-term investments              $5,679      $10,777
       Accounts receivable                         210,279      167,739


Investment in film and television programs
        and program rights                         186,371      149,410
       Property and equipment                       10,394       10,314
       Other assets                                 16,779       15,482
    Total                                         $429,502     $353,722


LIABILITIES
      Operating loan and bank indebtedness         $44,513       $3,361
      Accounts payable and accrued liabilities     104,675      109,491
      Income taxes                                  14,541       10,927
      Deferred revenue                              90,824       62,980
      Convertible debenture                         16,500       16,500
      Minority interest                                 45           39
    Total                                          271,098      203,298


SHAREHOLDERS' EQUITY
      Capital stock                                 89,021       88,836
      Retained earnings                             69,383       61,588
    Total                                          158,404      150,424
    Total                                         $429,502     $353,722
                     ALLIANCE COMMUNICATIONS CORPORATION
                     CONSOLIDATED STATEMENTS OF EARNINGS
          For the Three Months Ended June 30, 1997 and June 30, 1996


(in thousands of Canadian dollars, except per share information)
                                              Unaudited
                             Three Months            Three Months
                                    Ended                   Ended
                            June 30, 1997           June 30, 1996


REVENUE
    Alliance Television           $11,635                 $21,738
    Alliance Motion Pictures       41,804                  32,700
    Alliance Equicap                6,599                   1,375
    Alliance Broadcasting           5,636                   4,686
    Alliance Multimedia               882                   3,018
    Total revenues                 66,556                  63,517


DIRECT 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.
 
    Alliance Television            10,062                  17,594
    Alliance Motion Pictures       30,872                  27,998
    Alliance Equicap                3,414                     655
    Alliance Broadcasting           2,908                   2,412
    Alliance Multimedia               687                   2,454
    Total direct operating expenses47,943                  51,113


GROSS PROFIT
    Alliance Television             1,573                   4,144
    Alliance Motion Pictures       10,932                   4,702
    Alliance Equicap                3,185                     720
    Alliance Broadcasting           2,728                   2,274
    Alliance Multimedia               195                     564
    Total gross profit             18,613                  12,404


OTHER EXPENSES
    Other operating expenses        9,677                   9,378
    Amortization                    1,597                   1,104
    Interest                          458                     470
    Minority interest                   6                      45
    Total                          11,738                  10,997
    EARNINGS BEFORE UNDERNOTED      6,875                   1,407
    GAIN ON SALE OF INVESTMENT      4,535                       0
    EARNINGS BEFORE INCOME TAXES   11,410                   1,407
    PROVISION FOR INCOME TAXES      3,615                     452
    NET EARNINGS FOR THE PERIOD      7795                    $955
    EARNINGS PER COMMON SHARE        0.59                   $0.10
                       ALLIANCE COMMUNICATIONS CORPORATION
           CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
          For the Three Months Ended June 30, 1997 and June 30, 1996
                      (in thousands of Canadian dollars)
                                            Unaudited
                             Three Months            Three Months
                                    Ended                   Ended
                            June 30, 1997           June 30, 1996


CASH PROVIDED BY (USED IN):

OPERATING ACTIVITIES
    Net earnings for the period    $7,795                    $955


Items not affecting cash:

Amortization of investment in film
     and television programs       41,621                  48,044


Amortization of program
     exhibition rights              2,638                   2,280


Amortization of development costs
     and investment in scripts        750                     450


Amortization of property and equipment
     and pre-operating costs          703                     579


Amortization of broadcast
     licenses and goodwill            144                      75
    Gain on sale of investment     (4,535)                      0
    Minority interest                   6                      45
    Deferred income taxes             233                     452


Net changes in other non-cash
     balances related to operations(13,482)               (16,751)
    Total                          35,873                  36,129


INVESTING ACTIVITIES

Investment in film and
     television programs          (50,889)                (44,792)


Film and television programs
     in progress                  (27,227)                  7,915
    Program exhibition rights      (1,095)                 (1,421)


Development costs and
     investment in scripts         (2,759)                   (546)


Net additions to property
     and equipment                   (634)                 (1,344)


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).
 from sale of
     investment                     4,594                       0
    Total                         (78,010)                (40,188)


FINANCING ACTIVITIES

Operating loan and bank
     indebtedness                  41,152                  13,180


Decrease (increase) in
     loans receivable              (4,298)                      0


Increase (decrease) in
     loans payable                      0                      85
    Issue of common shares            185                       3
    37,039                         13,268


INCREASE (DECREASE) IN CASH
    AND SHORT-TERM INVESTMENTS     (5,098)                  9,209


CASH AND SHORT-TERM INVESTMENTS,
    BEGINNING OF THE PERIOD        10,777                   5,090


CASH AND SHORT-TERM INVESTMENTS,
    END OF THE PERIOD              $5,679                 $14,299


SOURCE Alliance Communications Corporation
    -0-                             08/25/97


/CONTACT: George Burger, Executive Vice President of Alliance Communications Corp., 416-967-1174; or Andrea Kaimowitz or Press: Miriam Adler, 212-850-5600, or Karen Goulet - Toronto, 416-777-6711, all of Morgen- Walke Associates/

(ALLIF AAC.)

CO: Alliance Communications Corporation ST: Ontario IN: ENT ENT ears, nose, and throat (otorhinolaryngology).

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abbr.
ear, nose, and throat



ENT

ear, nose and throat.

ENT Ears, nose & throat; formally, otorhinolaryngology
 SU: ERN

LH -- NYM Nym

humorous thief and rogue. [Br. Lit.: Merry Wives of Windsor; Henry V]

See : Thievery



1. (tool, networking) nym - /nim/ (From the third syllable of "anonymous"; or "nym server") A server that functions as an anonymous remailer.
2.
086 -- 0893 08/25/97 15:22 EDT EDT
abbr.
Eastern Daylight Time


EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

EDT 
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Date:Aug 25, 1997
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