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AMCOMRI ENTERTAINMENT INC.’S WHOLLY OWNED SUBSIDIARY, TRINITY PICTURES DISTRIBUTION, REPORTS RECORD ANNUAL RESULTS
VANCOUVER, BRITISH COLUMBIA, March [23], 2022 — Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (NEO : AMEN) is pleased to announce the financial results of Trinity Pictures Distribution Limited (“Trinity”), Amcomri’s wholly-owned subsidiary, for the year ended December 31, 2021.
Trinity became a wholly owned subsidiary of Amcomri on January 7, 2022, in connection with the reverse takeover of Amcomri by the shareholder of Trinity.
“We are pleased to report record Revenue of $13.7m and EBITDA of $8.7m for Trinity in the year to 31st December 2021, exceeding the levels forecast when proposing the Reverse Takeover of Amcomri. Our distribution teams have over-delivered throughout the year and Q4 was particularly strong, exhibiting the inherent strength of our distribution model around the world. The global consumption trends continue to show consistent growth in home media and we are well positioned to provide a wide variety of content into that market. With our own production content coming on-stream over the year and a strong additional slate for release in 2022 we are now also seeing the benefits of our end-to-end strategy,” said Paul McGowan, Chairman of Amcomri.
“Recent library acquisitions including the Screen Media Ventures, Shout Factory and Sonar libraries give us a firm basis for substantial growth in our distribution model and we are seeing the benefits of that strategy in the early months of 2022. Following completion of these acquisitions our distribution library contains over 2,000 movies and 750 hours of TV and documentary content.”
“Completing our end-to-end strategic approach, our production arm, Amcomri Productions, is in the final stages of production of both the high-anticipated “Left Behind – Rise of the Antichrist” and “A Home for the Holidays”, a romantic Christmas movie due for release later in the year.”
A summary of Trinity’s financial and operational highlights for the year ended December 31, 2021 are set out below, and more detailed information is contained in the financial statements and related management discussion and analysis, which are available on Amcomri’s SEDAR page at www.sedar.com.
Results for the year ended December 31, 2021
The following table sets out selected historical financial information for Trinity for the year ended December 31, 2021. Such information is derived from and should be read in conjunction with the audited consolidated financial statements of Trinity for the year ended December 31, 2021, which have been filed under the Company’s profile on SEDAR at www.sedar.com.
| For the year ended December 31(1) | ||
| 2021 | 2020 | |
| Revenues | $30,222,750 | $13,155,902 |
| Revenue after Royalties and Commissions | $13,703,641 | $7,774,315 |
| Total Assets | $22,427,912 | $15,348,293 |
| Total Liabilities | $13,065,253 | $10,463,957 |
| Shareholders’ Equity | $9,362,659 | $4,884,336 |
| Net Income/Loss | $4,478,322 | $1,610,748 |
| EBITDA(2) | $8,745,137 | $3,427,336 |
Notes:
(1) Amounts in this press release have been converted from British Pounds Sterling to Canadian Dollars at a rate of £1.00 to C$1.71 (being the Bank of Canada exchange rate on December 31, 2021).
(2) EBITDA is a non-IFRS measure. See Cautionary Note Regarding Non-IFRS Measure.
During the year ended 2021, Trinity achieved a significant increase in both sales and profit year-over-year and Trinity expects that this trend will continue into 2022. Total revenues before royalties and sales commissions increased by 230% to $30,222,750 for the year ended December 31, 2021 (year ended December 31, 2020 – $13,155,902) while revenues after royalties and sales commissions increased 176% to $13,703,641 for the year (year ended December 31, 2020 – $7,774,315).
Earnings before interest, tax, exceptional bad debt expense, depreciation and amortisation and minority interests in the year ended December 31, 2021 amounted to $8,745,137 (year ended December 31, 2020 – $3,427,336).
Robert Price, CEO of Amcomri, said, “Whilst we are always excited to see our own movies such as “Every Last One of Them” entering the market, it is encouraging to see that independent producers continue to see the benefit of working with Amcomri’s distribution teams around the world and the quality of content entering our networks is exceptional. It is these relationships which are driving growth and profitability in our distribution businesses which reached a total revenue before commissions and royalties of over $30m in the year.”
“Our market leading teams are well-positioned to take advantage of the forecast growth in home media around the world and our Canadian production team has had a busy start to 2022 completing the shooting of two feature films in Alberta.”
Larry Howard, CFO of Amcomri, added, “The performance of Trinity in the second half of 2021 was far in excess of the levels we anticipated when proposing the Reverse Takeover of Amcomri and, as a result, Amcomri has acquired a more profitable business than expected at the time and the Net Assets at completion were some $700,000 higher than planned. It is comforting to note that this exceptional level of activity has continued into the first quarter of 2022.”
About Amcomri Entertainment Inc.
Amcomri Entertainment Inc. (NEO: AMEN) provides a global distribution capability for independent movie, documentary and TV series producers as well as its own productions. Exploiting a network of distribution channels around the world, Amcomri’s companies deliver a premium, transparent and trustworthy route to market. With decades of experience across all the key media markets, the Amcomri team is fast becoming the go-to team for independent producers seeking the widest possible audience for their productions. Amcomri’s network is built on strong, trustworthy partners. Arranging strong pre-sale partners in the major markets, the teams can often provide the assurance that lenders need in order to provide production finance.
The Amcomri Entertainment Inc. group of companies includes 101 Films, 101 Films International, Hollywood Classics International, Amcomri Productions and the documentary, drama and non-fiction series focused Abacus Media Rights.
For further information regarding Amcomri, see Amcomri’s disclosure documents on SEDAR at www.sedar.com and Amcomri’s website at www.amcomrientertainmentinc.com for more.
For more information, please contact:
Larry Howard,
Chief Financial Officer
Email: larry.howard@amcomri.com
Phone: +353-87-686-8255
Cautionary Note Regarding 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 Trinity. The Company believes that these Non-IFRS measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standard, enable investors to evaluate Trinity’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, Trinity’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.
Trinity defines EBITDA as earnings before interest tax depreciation and amortisation. EBITDA is intended to provide a proxy for Trinity’s operating cash flow and is widely used by industry analysts to compare companies:
| Reconciliation of Profit to EBITDA | ||
| Profit | $4,478,322 | |
| Taxation | + | $1,253,432 |
| Interest Expense | + | $197,766 |
| Depreciation & Amortisation | + | $2,815,617 |
| EBITDA | $8,745,137 |
Note: Amounts have been converted from British Pounds Sterling at a rate of £1.00 to C$1.71.
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 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; and the risks and uncertainties associated with foreign markets. 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. 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 for March , 2022 and available under the Company’s profile on SEDAR at www.sedar.com.