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July 15, 1998 10:10 AM
TORONTO--(BUSINESS WIRE)--July 15, 1998--Networks North Inc. NETN
announced its results for the third quarter and the nine months ended
May 31, 1998.
Revenues of $3,651,725 for the third quarter of this fiscal year
increased 42.8% over the previous year and revenues of $11,143,311 for
the first nine months of the current fiscal increased 50.2% over the
similar nine-month period of last year.
Operating Income (income before income taxes and minority interest)
was $236,295 for the third quarter of this fiscal year, an increase of
277.3% over the third quarter of fiscal 1997 while the Operating
Profit for the first nine months of this fiscal year was $923,684 an
increase of 49.8% over the first nine months of last fiscal year.
Net income for the quarter was $144,807, an increase of 142.4% over
the similar quarter last year and net income for the nine-month period
was $493,798, an increase of 28.4% over the similar period last year.
All figures are reported in Canadian dollars.
For the For the
nine months ended nine months ended
May 31, 1998 May 31, 1997
Revenues $11,143,311 $ 7,420,034
Operating Income 923,684 616,730
Net Income 493,798 384,704
Earnings per Common Share 0.19 0.16
For the For the
three months ended three months ended
May 31, 1998 May 31, 1997
Revenues $3,651,725 $2,557,706
Operating Income 236,295 62,632
Net Income 144,807 59,739
Earnings per Common Share 0.05 0.02
As at May 31, 1998 As at Aug. 31, 1997
Total Current Assets $6,636,862 $6,718,877
Total Assets 15,656,939 14,287,602
Total Current Liabilities 2,551,046 3,219,015
Shareholder's Equity 10,596,411 9,488,648
"We are extremely pleased with our results to date," said Peter Rona,
President and CEO of Networks North Inc. "Both our core business, the
interactive Hospitality network and the recent acquisitions have
contributed to our profitable growth. Not often can a company embark
upon an aggressive expansion path and see profits climb as quickly as
we have."
The company's interactive hospitality network, which distributes
programming to restaurants, sports bars and other group viewing
locations continues to show a healthy improvement over the previous
year, resulting from an aggressive sales and marketing effort to both
the owners of the establishments and the end users of the programs.
The division of the company that experienced the most growth is Magic
Lantern. The growth is primarily as a result of the acquisition of
the assets of Image Media. This acquisition added to the educational
video library, added a line of educational software and added a strong
presence on the west coast of Canada.
Interlynx Multimedia Inc., the company's 51% subsidiary, had a
significant quarter, signing a contract with CIBC, one of the largest
banks in North America, to provide web-based training for certain
staff.
Network's North Inc.'s operating units include wholly owned NTN
Interactive Network Inc. (NTNIN), Magic Lantern Communications Ltd.
and 51% of Interlynx Multimedia Inc. NTNIN is the exclusive Canadian
Licensee of NTN Communications, Inc. NTN , a leading producer and
programmer of interactive television, on-line and Internet
entertainment. The NTN Entertainment Network distributes programming
to more than 15 million participants per month at restaurants, sports
bars, and other group viewing locations throughout North America,
including 525 in Canada with over 2.5 million participants.
Magic Lantern is Canada's premier distributor of educational media
resources, with exclusive right's to over 14,000 titles in English and
French. Magic's subsidiaries provide MPEG encoding, video
duplication, distribution, and fulfillment services for broadcasters.
Interlynx Multimedia is a new media production and distribution
company encompassing all aspects of electronic communications
including computer based learning, CD-ROM, the Internet and World Wide
Web.
Financial Statements in this press release other than historical facts
are "forward-looking" statements within the meaning of section 27A of
the Securities Act of 1933, section 21E of the Securities Exchange
Act of 1934, and as that term is defined in the Private Securities
Litigation Reform Act of 1995. The Company intends that such
statements about the Company's future expectations, including future
revenues and earnings, and all other forward-looking statements are
subject to the safe harbors created thereby. Since these statements
(future operational results and sales) involve risks and uncertainties
and are subject to change at any time, the Company's actual results
could differ materially from expected results. |
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