Latest news release.
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Vidatron Entertainment Group Inc -
Year-end results
Vidatron Entertainment Group Inc VE
Shares issued 6,259,022 1998-11-19 close $2.18
Friday Nov 20 1998
Mr. Murray Oliver reports
Revenues for the year ended Aug. 31, 1998 increased by 36 per cent to $32.5-million from prior year revenues of $23.6-million. Revenues from operations related to Vidatron's core business, the production and distribution of live-action entertainment programming for television, increased by approximately 54 per cent. Vidatron's educational software division, which accounted for revenues of $2.4-million in 1997, was sold at the end of fiscal 1997.
Revenues for the quarter were $15-million compared to revenues of the prior comparable quarter of $9-million. The 67 per cent increase is due mainly to the increase in delivery of episodic programming to 14 hours from seven hours in prior comparable quarter.
The company reported net earnings of $1.8-million or 27 cents per share compared to a loss for the prior year of $1.2-million or 26 cents per share. The prior year loss was due to total onetime charges of $2.6-million. The company reported an increase in annual earnings of 23 per cent over prior year earnings before onetime charges. Fourth quarter earnings of $1.3-million represented an increase of 86 per cent over earnings of $0.7-million (before onetime charges) during the comparable quarter of the prior year.
Shareholder equity at year end was $17.7-million, a 94 per cent increase over the prior year. Working capital increased 40 per cent from $4.2-million to $5.9-million.
During the year the company delivered the last 10 episodes of the first season of Dead Man's Gun, the one-hour urban western television series, distributed by Buena Vista Television and airing on Showtime Networks in the United States and CHUM/City's VR Station in Canada. The company received a renewal for a second 22 episode season distributed by MGM, bringing the total number of episodes to 44. Six episodes of the second season were delivered in the fourth quarter. Also in the fourth quarter, the company delivered eight episodes of its 22 episode sci-fi television series First Wave, which is distributed internationally by Pearson Television International. In Canada, First Wave airs nationally on CHUM's Space: The Imagination Station, as well as on eight other regional networks. These programs combined will deliver 30 hours of programming, primarily in the first and second quarters of 1999.
Other highlights for the year included:
Delivery of 26 half hours of the company's news magazine show Electric Playground profiling the electronic game industry.
Commencing production of two one hour documentaries for Baton Broadcasting.
Acquiring a 55,000 square foot office/warehouse facility in a prime location contiguous to Vancouver's downtown waterfront. Approximately 30,000 square feet are leased to third parties and the balance has been converted to a state-of-the-art post production facility with adjoining production offices, construction and storage space.
Securing a $10-million revolving credit facility with the Royal Bank of Canada.
Completing a $5.0-million equity financing with the Royal Bank Capital Corporation, the investment arm of the Royal Bank of Canada, and the British Columbia based Working Opportunity Fund.
Listing of Vidatron's common shares on the TSE.
CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended Aug. 31
(in thousands of dollars)
1998 1997
Revenue $14,970 $ 8,973
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Expenses
Amortization of film
and television
programs 11,557 7,035
Other costs of
production and sales 1,047 689
Amortization other 154 65
Selling, general and
admin 641 527
Interest 184 70
Foreign exchange gain (292) (116)
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Total expenses 13,291 8,270
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Earnings from
operations 1,679 703
Taxes and non-recurring
charges
Loss on asset sale of
subsidiaries - (333)
Writeoff of limited
partnership product
Revenue interest - (2,313)
Capital taxes and
income taxes (349) (25)
------- -------
Net earnings (loss)
for the year $ 1,330 $(1,968)
======= =======
Net earnings per
common share 20 cents (43 cents)
CONSOLIDATED STATEMENT OF OPERATIONS
Year ended Aug. 31
(in thousands of dollars)
1998 1997
Revenue $32,457 $23,584
------- -------
Expenses
Amortization of film
and television
programs 24,124 14,972
Other costs of
production and sales 3,577 4,261
Amortization other 389 273
Selling, general and
admin 2,106 2,415
Interest 576 367
Foreign exchange gain (465) (176)
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Total expenses 30,307 22,112
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Earnings from
operations 2,150 1,472
Taxes and non-recurring
charges
Loss on asset sale of
subsidiaries - (333)
Writeoff of limited
partnership product
Revenue interest - (2,313)
Capital taxes and
income taxes (392) (38)
------- -------
Net earnings (loss)
for the year $ 1,758 $(1,212)
======= =======
Net earnings per
common share 27 cents (26 cents)
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