VANCOUVER, British Columbia, April 14, 2023 (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 fourth quarter and year ended December 31, 2022. All dollar amounts are in Canadian dollars unless otherwise stated.
Highlights
- Adjusted EBITDA1 for the year was $5,089,594 despite a loss of $147,561 in the fourth quarter;
- Television and documentary (Abacus Media Rights Limited) revenue increased 41% in 2022;
- Revenue for the quarter decreased 40% to $1,799,538 compared to Q4 2021, resulting in revenue of $13,889,501 for the year, which was flat compared to the prior year;
- Movie production performance continued to be impacted by production delays;
- Recorded non-cash impairment charges totaling $1,217,983 pertaining to the de-recognition of the Screen Media distribution rights out of Amcomri Productions and two film titles that received negligible deals for distribution as at December 31, 2022;
- Net loss was $2,084,592 for the quarter and $359,932 for the year.
"In 2022, we made great strides in expanding our business and increasing our market share," said Robert Price, Chief Executive Officer of Amcomri. "We completed three content library acquisitions, expanded our global reach, solidified partnerships with broadcasters and streaming platforms, and now offer aggregation and scale to nearly 200 independent producers. Our TV business performed particularly well and continues to benefit from strong demand from streaming services and broadcasters. And, despite delays on the film side of our business, which impacted our 2022 financial results, our successful theatrical release of 'Left Behind - Rise of the Antichrist' this past January highlights the strides we made in developing our in-house production capabilities in 2022."
"Looking ahead, we're particularly excited about the continued opportunities for our TV business. We have a great slate of programs for 2023, including big dramas like Scrublands. We have plans for co-producing four TV shows and four films this year. At the same time, we remain focused on expanding our global distribution channels, with a specific focus on North America, and growing our content portfolio to feed the strong demand from streaming channels."
Selected Financial Information
The following table sets out selected historical financial information for Amcomri for the fourth quarter and year ended December 31, 2022. Such information is derived from and should be read in conjunction with the financial statements and management's discussion and analysis, for the fourth quarter and year ended December 31, 2022, which will be filed under the Company's profile on SEDAR at www.sedar.com on Friday, April 14, 2023.
| Audited | Three months ended | ||
| December 31, 2022 $ | December 31, 2021 $ | Change % | |
| Revenue | 1,799,538 | 3,014,621 | -40% |
| Direct costs | 52,471 | 653,692 | -92% |
| Operating expenses | 4,038,938 | 1,701,562 | 137% |
| Other expenses (income) | (207,279) | 488,781 | -142% |
| Net profit (loss) | (2,084,592) | 170,586 | -1322% |
| Adjusted EBITDA1 | (147,561) | 1,552,139 | -110% |
(1) Adjusted EBITDA is a non-IFRS measure. See the "Non-IFRS Measures" section for reconciliation to net income.
| Audited | Year ended | |||
| December 31, 2022 $ | December 31, 2021 $ | Change % | ||
| Revenue | 13,889,501 | 13,820,644 | 0% | |
| Direct costs | 2,011,561 | 2,031,079 | -1% | |
| Operating expenses | 11,218,253 | 4,819,892 | 133% | |
| Other expenses (income) | 1,019,619 | 2,453,112 | -58% | |
| Net profit (loss) | (359,932) | 4,516,561 | -108% | |
| Adjusted EBITDA | 5,089,594 | 8,741,714 | -42% | |
Fourth Quarter Overview
Revenue for the quarter decreased 40% to $1,799,538 compared to $3,014,621 for the same period in 2021. Revenue in the fourth quarter was negatively impacted by the delay of five movie titles to the Company, which held back sales at 101 Films International, the Company's international sales agency business. Three of the five titles have now been delivered to the Company and sales activity has commenced. The Company expects to receive the other two titles later in 2023.
Operating expenses for the quarter amounted to $4,038,938, an increase of $2,337,376 compared to the same quarter the prior year. Contributing to the rise were a $562,188 increase in professional fees attributable to additional sales consultants in both TV and film production, ICFR accreditation consultancy fees, audit fees and taxation advisors. Salaries and benefits increased by $365,318 as a result of the significant growth in the Company, including the hiring of an executive management team, and two additional employees joining the Company in the third quarter (a Head of Legal Affairs and an Acquisitions Manager). Other significant contributors to the rise in operating expenses included higher advertising and promotion expenses; higher interest and bank charges attributable to funding 'Left Behind: Rise of the Antichrist' and other films; and other increases attributable to the growth of the Company.
Based on an assessment as at December 31, 2022, Amcomri recorded a non-cash impairment charge of $428,356 related to two film titles that received negligible deals for distribution as at December 31, 2022.
Excluding the one-off non-cash charges above, Adjusted EBITDA for the quarter amounted to a loss of $147,561 compared to Adjusted EBITDA of $1,552,139 in the fourth quarter of 2021.
The Company reported a net loss of $2,084,592 for the quarter compared to net income of $170,586 for the fourth quarter in the prior year.
Cease Trade Order
Further to the news releases dated April 10, 2023, the Company has completed the filing of its annual audited financial statements, accompanying management discussion and analysis, annual information form and related Chief Executive Officer and Chief Financial Officer certifications for the year ended December 31, 2022 (the "Annual Filings") under its SEDAR profile on www.sedar.com. Therefore, it expects the cease trade order issued by the British Columbia Securities Commission and the Ontario Securities Commission in respect of the delayed Annual Filings to be revoked by the securities regulators in accordance with National Policy 11-207 - Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdiction in due course.
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 Adjusted EBITDA to Net Income
| Three months ended | Twelve months ended | ||||
| December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||
| (unaudited) | (unaudited) | (unaudited) | (audited) | ||
| Net Income | ($2,084,592) | $170,583 | ($359,932) | $4,516,561 | |
| Add: | |||||
| Interest | $139,612 | $9,440 | $596,546 | $121,367 | |
| Tax | ($248,902) | $176,252 | $228,927 | $1,264,135 | |
| Amortization and depreciation | $1,713,559 | $826,536 | $2,760,558 | $1,650,674 | |
| Share based payments | $1,205 | - | $416,750 | - | |
| Impairment - film distribution rights | $331,557 | $369,325 | $1,217,983 | $1,188,977 | |
| Professional fees related to RTO and acquisitions | - | $1,323,800 | - | ||
| Bad debt expense relating to RTO | - | - | $228,762 | - | |
| Adjusted EBITDA | ($147,561) | $1,552,139 | $5,089,594 | $8,741,714 | |
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 revocation of the cease trade order, Company's growth plans, the timing of release of the Company's films and 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; the risks and uncertainties associated with foreign markets; and those risks and uncertainties that are described in the section entitled "Risk Factors" in the Company's annual information form dated April 14, 2023, and available under the Company's profile on SEDAR at www.sedar.com. 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. All of the forward-looking statement contained in this press release are qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained herein are provided as of the date hereof, and 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 April 14, 2023, 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/
| For more information, please contact: | |
| Larry Howard | Trevor Heisler |
| Amcomri, Chief Financial Officer | MBC Capital Markets Advisors |
| Email: larry.howard@amcomri.com | Email: theisler@maisonbrison.com |
| Phone: +353-87-686-8255 | Phone: 1-416-500-8061 |
