Malofilm Communications - results of the second quarter ended March 31, 1997.MONTREAL--(BUSINESS WIRE)--May 30, 1997--MALOFILM(ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : MFM (Modified Frequency Modulation) The magnetic disk encoding method used on most floppy disks and most earlier hard disks under 40MB. MFM has twice the capacity of the previous FM method, transfers data at 625 Kbytes per second and uses the ST506 interface. .A., ME, TSE:MFM.B.) Malofilm Communications Inc. today announced financial results for the second quarter ended March 31, 1997 and for the first six months of the fiscal year. Non-recurring factors such as the Company re-structuring detailed in the April 28, 1997 news release, are the main reasons for the net loss of the two periods. Highlights of consolidated statement of operations See Income statement. For the second quarter, consolidated revenues grew by 78 percent to reach $20.5 million compared to $11.6 million for the same period last year. The earnings, before interest, income taxes, depreciation and amortization (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 ) went from $1.4 million to a $558,000 loss this year. A net loss of $23.5 million or $2.33 per share (before dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. ) and $2.25 per share (after dilution) was posted, compared to a net profit of $615,000 or $0.08 per share for the second quarter last year. For the first six months, consolidated revenues increased by 90 percent to $44.9 million compared to $23.7 million for the same period last year. Earnings before interest, before interest, income taxes, depreciation and amortization (EBITDA) dropped by 72 percent to $989,000 from $3.5 million for the first six months ended March 31, 1996. The net loss is $23 million or $2.45 per share (before dilution) or $2.37 (after dilution), compared to a net profit of $1.8 million or $0.24 per share for the first six months of last year. Second quarter The $8.9 million or 78 percent increase in revenues comes mainly from two sources: - Live-action production from subsidiaries acquired in 1996 including Filmline International with its television series Highlander ($8.2 million) and Image Organization with the film Stranger in the House Stranger In The House is the title of two horror films, one released in 1967 and the other in 1997. 1967 version The 1967 version was directed by Pierre Rouve, produced by Anatole de Grunwald, and starred James Mason, Geraldine Chaplin, and Bobby Darin. ($2 million). - A $3 million contribution by Malofilm Production from the feature film J'en suis!. However, distribution revenues have decreased by $3.1 million due to lower video sales (sellthrough and rental), lower television, box-office and international revenues. The revenues in animation and in the interactive division decreased by $1.2 million. The loss, before interest, income taxes, depreciation and amortization, was caused mainly by a lower gross margin for the interactive group ($400,000) and distribution group ($1.3 million) compared to the second quarter of the previous year. Interest expenses and amortization increased by approximately $600,000, reflecting a higher level of 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. as well as an increase in goodwill resulting from acquisitions. As announced in the April 28, 1997 news release, the Board of Directors has elected to interrupt A signal that gets the attention of the CPU and is usually generated when I/O is required. For example, hardware interrupts are generated when a key is pressed or when the mouse is moved. Software interrupts are generated by a program requiring disk input or output. the activities of three subsidiaries (Desclez Productions Desclez Productions is a Canada-based television production company based in 1991. Their favourite series was Iris, the Happy Professor which ran from 1992 to 1994. In 1995 Desclez is purchased by Malofilm, before closing down in 1997 and changing the name from Malofilm to Seville , ReadySoft and MMI (Man Machine Interface) See HMI. 1. MMI - Man-Machine Interface. 2. (company) MMI - The company which developed the first Programmable Array Logic devices. MMI was bought by AMD. MultiMedia Interactive) which were not performing to expectations as well as reduce the net value of some assets. This decision was made after re-assessing the projected sales for the fiscal year and the impact of this adverse variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality on the company's cash flow. Total charges resulting from these decisions are approximately $25.5 million, allocated as follows: -0- - write down of entertainment products $12.4 million - write down of tangible assets $3.4 million - write down of goodwill $6.4 million - severance payments and other restructuring costs $3.3 million During the second quarter, the Company lost approximately $1 million on disposal of its investment in TotalNet. Malofilm Communications Inc. (soon to become Behaviour Communications) is an international, diversified diversified (di·verˑ·s entertainment company involved in the development, production and distribution of unique brand content and packaging for the corporate, film, television and on-line marketplace. The Corporation has its headquarters in 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. and offices in 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 , Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. City and 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. . Its shares are publicly traded on the Montreal and Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under MFM.A and MFM.B.
MALOFILM COMMUNICATIONS INC.
Consolidated Statements of Operations
Period of six months ended March 31
1997 1996
____________ ____________
Revenues $44,907,330 $23,685,527
Expenses:
Distribution and production 37,800,846 16,886,014
General and administration 6,117,561 3,337,728
Interest 494,045 83,937
Depreciation and amortization 740,437 380,385
____________ ____________
(245,559) 2,997,463
Write down of entertainment products 12,430,000
Write down of other tangible assets 3,352,080
Write down of goodwill 6,447,000
Severance payments and other
restructuring costs 3,261,000
Loss on disposal of investment 1,038,000
Equity in loss of affiliated company 121,989
____________ ____________
(Losses) Earnings before income
taxes (26,895,628) 2,997,463
Income taxes: (3,926,318) 1,238,096
_____________ ____________
Net (losses) earnings ($22,969,310) $1,759,367
_____________ ____________
(Losses) Earnings per share
Basic ($2,45) $0,24
Fully diluted ($2,37) $0,24
Weighted average number of common shares
outstanding 9,377,323 7,320,545
_____________ ____________
Malofilm Communications Inc.
Consolidated Statements of Operations
Period of three months ended March 31
1997 1996
____________ ____________
Revenues $20,537,753 $11,565,961
Expenses:
Distribution and production 17,867,987 8,570,413
General and administration 3,227,400 1,627,990
Interest 393,073 46,203
Depreciation and amortization 408,913 192,332
____________ ____________
(1,359,620) 1,129,023
Write down of entertainment products 12,430,000
Write down of other tangible assets 3,352,080
Write down of goodwi ll6,447,000
Severance payments and other
restructuring costs 3,261,000
Loss on disposal of investment 1,038,000
____________ ____________
Earnings (losses) before income taxes (27,887,700) 1,129,023
Income taxes: (4,389,966) 514,050
____________ _____________
Net (losses) earnings ($23,497,734) $614,973
_____________ ____________
(Losses) Earnings per share
Basic ($2,33) $0,08
Fully diluted ($2,25) $0,08
Weighted average number of common
shares outstanding 10,102,725 8,005,671
CONTACT: Malofilm Alain Alain: see Chartier, Émile Auguste. Dupont, Annie-Gabrielle Doucine, |
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