SOURCE: Rainmaker Entertainment Inc.

Rainmaker Entertainment Inc.

August 24, 2016 18:26 ET

Rainmaker Entertainment Announces Financial Results for the 2nd Quarter of 2016

VANCOUVER, BC--(Marketwired - August 24, 2016) - Rainmaker Entertainment Inc. (TSX VENTURE: RNK) today announced its results for the three and six months ended June 30, 2016.

Rainmaker reported revenues of $5.0 million and operating EBITDA of $0.7 million in the second quarter of 2016. The results compare to revenues of $4.3 million and operating EBITDA of $0.6 million for the same period in 2015. The Company reported an operating profit for the three months ended June 30, 2016 of $0.1 million compared to an operating loss of $0.03 million for the same reporting period in 2015. Highlights for second quarter include:

  • Net profit of $0.1 million, the first positive quarterly profit for the Company since Q4 2011.
  • Operating EBITDA of $0.7 million, a 101% increase from Q1 2016 and a 9% over the same period 2015.
  • Revenue of $5.0 million, an increase of 9% from Q1 2016 and a 14% over the same period 2015.

The Company reported a net loss of $9.8 million for the six months ended June 30, 2016 (2015: $0.6 million) which was primarily due to the result of the previously recorded impairment and other losses ($9.4 million) related to its investment in the film Ratchet & Clank.

          
   For the three months ended   For the six months ended  
$000's except per share amounts  30-Jun-16  30-Jun-15   30-Jun-16   30-Jun-15  
Revenue   4,964   4,339    9,508    8,400  
                     
Operating EBITDA1   668   613    1,001    739  
Operating Profit (loss)1   136   (28 )  (119 )  (232 )
Profit (Loss)   136   (298 )  (9,825 )  (554 )
                     
Loss per share                    
 - basic and diluted  $0.01  $(0.02 ) $(0.56 ) $(0.03 )
1 See Management Discussion & Analysis "Non-IFRS Financial Measures". 
  

Michael Hefferon, President and Chief Creative Officer, commented, "We're pleased with the recent accomplishments with our core production service business and own developed projects; including the previously announced Reboot series. The Company successfully recorded a quarterly profit for the first time in over four and half years. Despite the pending reduction in the British Columbia film tax credits, we continue to see a strong market for production services and new opportunities for our own original programming. Our short term focus is to continue to secure production work with the goal of filling our remaining capacity for 2016 and booking a significant portion of our production pipeline for 2017."

Craig Graham, Chief Executive Officer, added, "The current quarter's results are a credit to Management's commitment to win new business and produce shows profitably. Our goal of achieving positive financial returns for the Company in 2016 remains unchanged as we continue to develop new production opportunities for the studio."

Forward-Looking Statements

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. These statements relate to future events or future performance and include, but are not limited to, statements regarding our future plans and financial performance. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions are often used to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. In evaluating these statements, readers should specifically consider risks which may cause actual results to differ materially from any forward-looking statement. The forward-looking statements contained herein are based upon certain assumptions considered reasonable at the time they were prepared. Such assumptions include, but are not limited to, assumptions regarding: (i) general economic conditions, (ii) Rainmaker's future business prospects and opportunities, and (iii) Rainmaker's ability to complete any or all of its proposed production work. Should one or more of the risks or uncertainties identified herein materialize, or should the assumptions underlying the forward-looking statements prove to be incorrect, then actual results may vary materially from those described herein. In respect of Rainmakers business generally, readers should also refer to Forward-looking Statements in the Management Discussion & Analysis for year ended December 31, 2014. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable securities laws, Rainmaker does not assume any obligation to update the forward-looking statements contained herein.

About Rainmaker Entertainment

Based in Vancouver, British Columbia, Rainmaker Entertainment Inc. is a multifaceted animation studio and one of Canada's largest producers of CG animation. Rainmaker's first feature film, Escape From Planet Earth (distributed by The Weinstein Company), opened on 3200 screens across North America. Originally established as Mainframe Entertainment, the company produced the first ever CGI animation series, ReBoot, and over the course of its 15+ years of innovative history, Rainmaker has continued to break new ground in animation, telling engaging stories and creating compelling characters for all media. In addition to projects Rainmaker has produced with partners and clients including Mattel, The Weinstein Company, Hasbro, Lionsgate and Sony, Rainmaker also develops proprietary projects. Since announcing its return to television development and production in 2013 under the Mainframe Entertainment banner, two animated series are currently in the pipeline: in Fall 2013, the company announced its plans to develop a new version of its iconic CG-animated ReBoot series; and in April 2014, the company began production for HIT Entertainment of 104 10-minute episodes of the new CG-animated Bob the Builder series.

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