Devine Entertainment Reports June 30, 2004 Results - Renewed Profitability from Operations and Settlement of Debt.TORONTO -- Devine Entertainment Corporation (CUB cub the newborn of a number of animal species as diverse as lion, fox and bear. :DVNN, NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). PK:DVNNF) today reported results for the second quarter and first half ended June 30, 2004 (all amounts in Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents ), highlighted by renewed profitability in both periods. Net profits in the second quarter totalled $3,105,132, or $0.16 per share as compared to a net loss of $147,767, or $0.01 per share for the same period in 2003. These profits were a combined result of completing previously announced settlements of the Company's debt and increased sales of the Company's film library. Shareholder equity at June 30, 2004 increased significantly, by $4,034,485 from a deficiency of $2,236,322 at December 31, to $1,798,163. Revenues from the Company's operations in the three months ended June 30, 2004 increased by 155% to $357,305 from $139,897 in the same period in 2003 reflecting a significant increase in library sales as compared with the same period in 2003. Revenues for the six months ended June 30, 2004 increased by 60% to $487,272, or $0.03 per share, as compared to $305,435 or $0.02 per share for the six months ended June 30, 2003. The Company's operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. were generated from sales of its library of films. Approximately 60% of these library revenues, or $288,000, reflected a new broadcast license for the Composers' Specials, Inventors' Specials and Artists' Specials to TPS (1) (Transactions Per Second) The number of transactions processed within one second. TPS is a better rating for the performance of hardware and software than the common MHz and GHz rating of the computer. in France. TPS is a premier specialty cable channel, owned by M6 and TF1, which has also made a commitment to licensing new productions of a similar genre from Devine in the future. The Company expects that this relationship with TPS and renewed broadcast sales activity in France and other foreign territories will result in additional broadcast and video/DVD licenses on an ongoing basis. President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. David Devine noted, "The Company expects that this renewed profitability is an important initial step in the Company's continuing turnaround. The Company is moving forward on a much stronger financial footing." Net earnings reflecting gains from previously announced settlements of the Company's RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). , BDC (Backup Domain Controller) In a Windows NT server, a copy of the Primary Domain Controller (PDC). The BDC is periodically synchronized with the PDC. See PDC. BDC - Backup Domain Controller , and BNP BNP B-type natriuretic peptide, brain natriuretic peptide Physiology A 32-residue peptide hormone produced predominantly in the ventricles, secreted in response to fluid overload–eg, CHF. See Atrial natriuretic peptide. debts totalled $4,039,825. A loss of $1,000,000 reflecting the write down of the Company's investment in film, television programs and recordings was also reported. Although a number of the Company's "evergreen evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. " films have continued to generate ongoing revenue beyond ten years, and the Company expects this to continue in the future, the Company reduced the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its investment to approximately $3.25 million. Five-time Emmy Award-winning Devine Entertainment Corporation develops, produces and distributes children's and family entertainment for the theatrical motion picture, television and Video/DVD marketplace world-wide. Their film series on landmark Composers', Inventors', and Artists' are critically acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. and broadcast in over 50 countries. The Company's first feature film for theatrical release, Bailey's Billion$, is slated for release in 2004. Headquartered in Toronto, the Company's common shares trade under symbol DVNN on the Canadian Unlisted Board (CUB), and the NASD OTC PK market in the U.S. under the symbol DVNNF. The Company's corporate website is www.devine-ent.com.
DEVINE ENTERTAINMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in Canadian dollars)
Three months Six months
ended June 30, ended June 30,
2004 2003 2004 2003
----------------------------------------------
REVENUE $357,305 139,897 $487,272 $305,435
----------------------------------------------
INCOME/(LOSS) before the
following: 65,307 (141,687) 16,155 (232,449)
Write-down of investment
in film, television
programs & recordings (1,000,000) 0 (1,000,000) 0
Gain on settlement of
debt
4,039,825 0 4,039,825 0
Income/(Loss) before
income taxes 3,105,132 (141,687) 3,055,980 (232,449)
Income taxes (recovered) 0 6,080 0 14,743
NET INCOME/(LOSS) for
the period 3,105,132 (147,767) 3,055,980 (247,192)
NET INCOME/(LOSS) PER
COMMON SHARE $0.16 $(0.01) $0.18 $(0.01)
==============================================
WEIGHTED AVERAGE SHARES
- BASIC 19,188,014 14,261,838 16,724,926 14,261,838
This press release may 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future performance of Devine Entertainment Corporation. Forward-looking statements, specifically those concerning future performance and the achievement of operating profitability are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties include the Company's limited operating history and fluctuations in revenues; market acceptance of the Company's products and services; competition within the film and entertainment industry and the introduction of new entrants and/or products in the Company's markets; adverse changes in governmental regulations and policies affecting the film and entertainment industry; product development risks and risks of technological change; the risk of unanticipated expenses; and other risks and uncertainties all as described in the disclosure documents filed with securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities in accordance with applicable securities laws. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on information available to it on the date such forward-looking statements are made, no assurances can be given as to future results, levels of activity and achievements. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change. |
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