M8 Entertainment Inc. ("M8" or the "Corporation") (TSE: MEE.MV.A and MEE.SV.B), a leading Canadian film entertainment company engaged in the financing, development, production, and worldwide licensing of theatrical feature films, reported today financial results of operations for the three months ended March 31, 2005.
For the three months ended March 31, 2005, net loss was $2.6 million as compared to net earnings of $1.4 million for the three months ended March 31, 2004. Loss before income taxes was $2.6 million for the three months ended March 31, 2005, as compared to earnings before income taxes of $1.8 million for the three months ended March 31, 2004.
Operating revenue decreased from $21.5 million for the three months ended March 31, 2004 to $6.6 million for the three months ended March 31, 2005.
Production and distribution expenses decreased from $18.5 million for the three months ended March 31, 2004 to $7.3 million for the three months ended March 31, 2005.
"The decrease in revenue was caused primarily by the absence of a new film release for the quarter," stated Devin Cutler, Vice President of Finance and Controller of the Corporation. "At this time last year we had Monster in wide release and were able to recognize substantial foreign revenues in the second fiscal quarter of 2004."
"Despite this second consecutive quarterly loss for the Corporation, we are looking forward to the remainder of our fiscal year," continued Mr. Cutler, "which should see substantial revenue from the Corporation's impressive film slate, which includes Lovewrecked, Santa's Slay, Running Scared, and Man About Town."
Total assets of the Corporation decreased from $87.8 million as of December 31, 2004 to $85.9 million as of March 31, 2005. Total liabilities remained relatively constant, increasing slightly from $56.0 million as at December 31, 2004 to $56.3 million as at March 31, 2005.
"We are looking forward to reaping the benefits of our investment into our slate of films," stated Sammy Lee, Chairman of the Corporation. "We feel we have assembled, over the last two years, the most impressive slate of feature films in the history of the Corporation, and we expect to continue to strengthen this slate with upcoming projects."
"With the imminent delivery of several of our films, we expect to begin to reflect the proceeds and revenues of these films in upcoming financial statements," stated Jenna Sanz-Agero, President of the Corporation. "We are confident that the performance of these films will more than justify the investment the Corporation has made to produce them." |
