Amcomri Reports First Quarter 2023 Results

VANCOUVER, British Columbia, May 15, 2023 (GLOBE NEWSWIRE) -- Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (NEO: AMEN) (OTC: AMNNF) (Frankfurt: 25Y0), a global producer and distributor of independent movies, TV series and documentaries, announced today financial results for the first quarter ended March 31, 2023. All dollar amounts are in Canadian dollars unless otherwise stated.

Q1 2023 Highlights
(Compared to Q1 2022)

• Revenue increased 22.9% to $5,118,176;
• EBITDA¹ increased 106.0% to $2,449,817;
• Net income increased 104.2% to $1,589,246;
• Left Behind 2 (Rise of the Antichrist) achieved box office revenues of $4.8m in a limited four-day release in North American theatres;
• Television and documentary revenue experienced a slower than expected start to the year as two major 2023 releases have been pushed to the middle of the year; and,
• Seven films that were delayed in 2022 have since been delivered and are now available for sale at the major film markets.

“We had a solid first quarter with growth in revenue and profitability.” said Robert Price, Chief Executive Officer of Amcomri. “The movie side of our business performed well during the quarter. Left Behind 2 performed well in a limited box office release during the quarter and we are seeing strong demand since physical and digital distribution windows opened in North America on March 26, 2023. Additionally, seven films originally slated for last year are now available for sale. And, the first quarter would have been even stronger had it not been for two of our major TV releases for the year being pushed back to the middle of the year.”

“As audiences become increasingly discerning and seek out authentic and diverse storytelling, independent content creators are uniquely positioned to deliver the content that viewers crave. We are well-aligned with this ongoing trend as we work to establish Amcomri as the home for independent storytellers. And we remain particularly excited about our TV business, where we continue to represent and invest in a diverse portfolio of productions.”

Selected Financial Information

The following table sets out selected historical financial information for Amcomri for the first quarter ended March 31, 2023. Such information is derived from and should be read in conjunction with the financial statements and management’s discussion and analysis, for the first quarter ended March 31, 2023, which will be filed under the Company’s profile on SEDAR at www.sedar.com on Monday, May 15, 2023.

^{(1) EBITDA is a non-IFRS measure. See the “Non-IFRS Measures” section for reconciliation to net income.}

First Quarter Overview

Revenue (net sales after royalties) for the quarter increased by 22.9% to $5,118,676 compared to $4,165,183 for the same period in 2022. On a sequential basis, revenue was $5,118,676 compared to $1,799,538 for the fourth quarter of 2022. This is due to revenues from the limited box office release of Left Behind 2 recognized in the quarter along with strong revenues in movie distribution when compared to the first quarter of 2022.

Direct costs increased 15.2% to $951,177 due to increased activity in the film distribution and production sectors by the Company in the quarter. Operating expenses increased 16.6%, largely due to higher headcount as a result of the significant growth in the business since becoming a public company, and higher advertising and promotion expenses, including title specific promotion and advertising in relation to tentpole titles.

EBITDA increased 104.2% to $2,449,817, or 47.9% of revenue. Net profit increased 104.2% to $1,589,246, or 31.0% of revenue.

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 EBITDA to Net Income

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/

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