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 June 30, 2005.
For the three months ended June 30, 2005, net earnings were $0.9 million as compared to net earnings of $1.0 million for the three months ended June 30, 2004.
Operating revenue increased to $17.9 million for the three months ended June 30, 2005 from $11.7 million for the three months ended June 30, 2004.
Production and distribution expenses increased from $8.7 million for the three months ended June 30, 2004 to $15.9 million for the three months ended June 30, 2005.
“The increase in revenue was attributable primarily to recognition of sales for the films Running Scared and Santa's Slay,” stated Devin Cutler, Vice President of Finance and Controller of the Corporation. “Similarly, the increase in production and distribution expenses is primarily attributable to the amortization of film costs associated with these two films.”
“We are pleased that the Corporation has resumed its profitable ways,” continued Mr. Cutler, “and we look forward to continued sales on both films as well as the remainder of our film slate, including Lovewrecked (starring Amanda Bynes) and Man About Town (starring Ben Affleck and Rebecca Romijn).”
Total assets of the Corporation decreased from $85.9 million as of March 31, 2005 to $85.4 million as of June 30, 2005. Total liabilities decreased from $56.3 million as at March 31, 2005 to $54.6 million as at June 30, 2005.
“The Corporation continues to exploit the slate of films it has invested in over the past two years,” stated Sammy Lee, Chairman of the Corporation. We expect to continue to reap the benefits of our investment over subsequent quarters, while at the same time positioning the Corporation to maintain its momentum by producing a strong new slate of films over the next fiscal year.”
“Along with the excitement of seeing all of our efforts come to fruition with the exploitation of our film slate, we are equally as excited about our upcoming slate of films,” stated Jenna Sanz-Agero, President of the Corporation. “The Corporation is poised to continue its success into the next fiscal year.” |
