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Rainmaker Announces Q1 Results - $0.09 EPS ***
VANCOUVER, BRITISH COLUMBIA--Rainmaker Digital Pictures Corp.
("the Company") is pleased to announce the financial results for
the first quarter of the 1997 fiscal year.
For the three month period ending March 31, 1997, the Company
reports total revenues of $6.0 million, reflecting an increase of
95 percent above the $3.1 million in revenues recorded for the
same period in 1996. The Company also reports net earnings for
the first quarter of $872 thousand or $0.09 per share,
representing growth of 94 percent above the net earnings of $453
thousand or $0.05 per share it recorded for the same period in
1996. The Company experienced growth in all five divisions,
primarily a result of increased market penetration of its existing
services and through expansion into new geographic markets.
Rainmaker continued to provide film processing, post production,
and digital effects on several primetime television series',
including: `The X-Files', `The Outer Limits', `Highlander',
`Millennium', `Poltergeist', `Two', and one of the most recent
additions `Stargate'. The first quarter also witnessed a great
level of operational activity for the Company, in the area of
digital effects for feature films in both the Vancouver facility
as well as the Company's new facility in Los Angeles, California.
The Company added special effects on numerous big budget feature
films such as `Batman & Robin', `Free Willy 3', `Steel', and
`Mortal Kombat - Annihilation'.
/T/
Condensed Consolidated Statements of Operations
(3 month period ending Mar.31/97)
(in 000's )
1997 1996
Revenues $6,019 $3,081 +95 p.cent
Expenses (4,670) (2,384)
_______ _______
Earnings Before Tax 1,349 696 +94 p.cent
_______ _______
Net Earnings $873 $454 +94 p.cent
_______ _______
Earnings per Share
Basic $0.09 $0.05
Fully Diluted $0.07 $0.04
/T/
Review of Operations
Gastown Post and Gastown Film Labs, the digital post production
and film processing divisions, report revenues of $2.5 million
and $0.7 million, respectively. During the quarter, Gastown Post
increased production capabilities in the area of film to tape
transfer through the purchase of a sixth digital telecine machine.
The new telecine is expected to be fully operational in the
second quarter. The increase in first quarter revenues for
Gastown Film Labs were primarily a result of continued penetration
into the local film processing and printing industry.
Rainmaker Interactive, the Company's Vancouver based digital video
compression division, recorded revenues of $567 thousand,
reflecting continued growth of its MPEG 1 compression services
offered to new media distributors of entertainment content.
Rainmaker Interactive also offers MPEG 1 compression solutions for
Video on Demand (`VOD') clients, as well as interactive authoring
and MPEG 2 for the forecasted growth in the DVD (`Digital Video
Disc') marketplace.
Rainmaker Imaging, the Company's Vancouver based digital special
effects division, continues to demonstrate superior capabilities
at providing high-end effects for feature films and television.
Recently, the division's capabilities were expanded through the
purchase of a new `Henry' editing system, used to create special
effects for television. Rainmaker Imaging contributed $685
thousand in revenues as it completed special effects work on two
feature films and also provided several special effects `shots' or
scenes on television series and corporate commercials.
The Company's Los Angeles facility (`Starlight'), experienced its
first full quarter as an integrated division of the Company. In
addition to the feature film effects work previously mentioned,
Starlight also created digital special effects for many television
programs, including Fox Television's `Married with Children'.
Starlight reports revenues of $1.5 million (Cdn) for the first
quarter, which represents new revenue for the Company as Starlight
was acquired late in 1996.
Rainmaker Digital Pictures Corp. operates digital post production
facilities in Vancouver, BC and Los Angeles, California, providing
a range of image processing services to producers of feature
films, television and new media. Based in Vancouver BC, the
Company operates through its divisions' Gastown Film Labs, Gastown
Post, Rainmaker Imaging (computer animation and digital special
effects), and Rainmaker Interactive (video compression and
proprietary software development). The Company's Los Angeles
facility specializes in digital special effects for the Hollywood
feature film market.
The contents of this press release have neither been approved nor
disapproved by any regulatory authority.
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