Company continues to add high-margin titles to growing content library

VANCOUVER, British Columbia, Aug. 15, 2022 (GLOBE NEWSWIRE) -- 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.

Highlights

• 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.”

Selected Financial Information

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.

(1) EBITDA is a non-IFRS measure. See the “Non-IFRS Measures” section for reconciliation to net income.
(2) Amounts in this news release have been converted from British Pounds Sterling at a rate of £1.00 to C$1.65105.

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.

Non-IFRS Measures

This news release refers to certain financial performance measures that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (termed "non-IFRS measures"). Non-IFRS measures are used by management to assess the financial and operational performance of Amcomri. The Company believes that these non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards, enable investors to evaluate Amcomri’s operating results, underlying performance and prospects in a similar manner to the Company's management. As there are no standardized methods of calculating these non-IFRS measures, Amcomri’s approach may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards. 

Amcomri defines EBITDA as net income before interest, taxes, depreciation and amortization. EBITDA is intended to provide a proxy for Amcomri’s operating cash flow and is widely used by industry analysts to compare companies.

Reconciliation of EBITDA to Net Income

Forward-Looking Statements

This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions.

Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; and the risks and uncertainties associated with foreign markets. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions, including COVID-19.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and does not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.

Investors are cautioned that, trading in the securities of the Company should be considered highly speculative. For a more detailed discussion such risks and uncertainties, please see the section entitled “Risk Factors” in the Company’s annual information form dated for March 23, 2022, and available under the Company’s profile on SEDAR at www.sedar.com.

About Amcomri Entertainment Inc.

Amcomri Entertainment Inc. (NEO: AMEN) (Frankfurt: 25Y0) provides global distribution capabilities for independent movie, documentary and TV series producers as well as for its own in-house productions. With decades of experience across all key media platforms, Amcomri is rapidly becoming the go-to team for independent producers seeking the broadest possible audience for their productions. The Amcomri Entertainment Inc. group of companies includes 101 Films, 101 Films International, Hollywood Classics International, Amcomri Productions, Appreciated Media Global, Amcomri Productions and Abacus Media Rights.

For further information about Amcomri, see its disclosure documents on SEDAR at www.sedar.com or visit the company’s website at https://amcomrientertainmentinc.com/

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