Rainmaker Entertainment Group Announces First Quarter 2000 Results and HDTV Capabilities
Summary
Rainmaker Entertainment Group reported a return to profitability in Q1 2000, posting $66,000 in earnings from continuing operations after a 1999 restructuring. The Vancouver-based post-production company invested $1.2 million in HDTV infrastructure, becoming western Canada's first HDTV-capable facility and providing services for James Cameron's 'Dark Angel' and Chris Carter's 'The Lone Gunman.'
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Rainmaker Announces First Quarter Results
VANCOUVER, BRITISH COLUMBIA--Rainmaker Entertainment Group Ltd. (``Rainmaker'' or the ``Company'') announces its financial results for the first quarter of the 2000 fiscal year, which ended March 31, 2000.
Condensed Consolidated Statements of Operations
Three month period ended March 31 (in 000s) except per share figures
2000 1999
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Revenue $4,254 $5,063
Earnings (loss) from continuing operations 66 (73)
Earnings (loss) from discontinued operations 0 (1,183)
Net earnings (loss) for the period 66 (1,256)
EBITDA from continuing operations 882 795
Earnings (loss) per share from continuing
operations $0.01 $(0.01)
Net earnings (loss) per share $0.01 $(0.11)
Following the restructuring efforts in 1999, management is pleased to report a return to profitability for the three months ended March 31, 2000. Earnings from continuing operations improved over the prior year, despite revenues being below the same period for 1999 and forecast. The lower revenue, which was more than offset by a drop in operating costs, resulted primarily from the delay in pilot season from mid-February to mid March and the cancellation and or suspension of 3 television series late in 1999.
During the first quarter, the Company spent $1.2 million on capital assets relating to its investment for high definition television (``HDTV''). Rainmaker is western Canada's first HDTV capable facility with high-definition services including:
* Film to tape (telecine) transfers and colour correction;
* Conversions;
* digital visual effects;
* on-line editing; and
* program assembly.
Rainmaker's HDTV capabilities were tested as soon as the facility was operational by providing HDTV telecine services and conversions to James Cameron's television pilot ``Dark Angel'' and Chris Carter's ``X-Files'' spin-off ``The Lone Gunman''. A number of other HDTV projects are currently scheduled for upcoming months and the Company expects this new service line to be very busy for the balance of the year.
Established in 1979 and located in Vancouver, British Columbia, Rainmaker is one of North America's leading film and television post-production companies. Rainmaker offers a complete range of post production services for film, television and new media including film processing, digital video post production, digital visual effects and DVD authoring.
This press release and any related attachments may contain forward-looking statements that involve a number of risks and uncertainty. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports and documents filed with The Toronto Stock Exchange and other regulatory authorities. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Rainmaker Entertainment Group Ltd. undertakes no obligation to update the forward-looking statements should there be a change in conditions, or in management's estimates or opinions.
Contact:
Rainmaker Entertainment Group Ltd. Investor Relations (604) 874-8700 or Toll-free 1-800-616-4433 (604) 874-1719 Email: [email protected] Website: www.rainmaker.com
