Rainmaker Entertainment Announces Financial Results for the 4th Quarter and Fiscal Year End 2015
/EINPresswire.com/ -- VANCOUVER, BC--(Marketwired - April 29, 2016) - Rainmaker Entertainment Inc. ("Rainmaker" or the "Company") (TSX VENTURE: RNK) today announced its results for the three and 12 months ended December 31, 2015.
The Company reported revenues of $3.5 million and EBITDA
For the full year ended 2015, revenues were $15.9 million and EBITDA of $1.3 million, compared to revenues of $10.2 million and negative ($0.7) million for the same period in 2014.
The operating loss for the three and twelve months ended December 31, 2015 was $0.5 million and $0.9 million, compared to a loss of ($0.02) million and $(2.0) million for the same reporting periods in 2014.
For the three months
ended For the year ended
$000's except per
share amounts 31-Dec-15 31-Dec-14 31-Dec-15 31-Dec-14 31-Dec-13
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Revenue 3,548 3,360 15,902 10,169 7,818
Operating EBITDA 59 229 1,301 (697 ) (1,697 )
Operating loss (492 ) (23 ) (918 ) (2,034 ) (2,820 )
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Loss (1,305 ) (55 ) (2,200 ) (1,956 ) (2,937 )
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Loss per share
- basic and diluted $ (0.07 ) $ (0.00 ) $ (0.13 ) $ (0.11 ) $ (0.17 )
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The Company achieved a 56% increase in annual revenues from 2014. This stronger revenue performance reflects the Company's increased production volumes from new production service clients and additional DVD productions from existing clients in the last half of the year. The Company's performance, particularly on the revenue and operating EBITA lines, shows a clear upwards trend in the results from operations of the business.
Michael Hefferon, President and Chief Creative Officer, commented, "We are very pleased with the solid improvement in the Company's service revenues year over year. We are working toward continuing this growth trend by further increasing production service levels in 2016, together with our original IP property, ReBoot. The increased revenue and service business has been the key driver in reducing our operating losses as we look to achieve our goal of future profitability.
Mr. Craig Graham, Chief Executive Officer, added, "The 2015 year was another challenging year however we took steps this year to move the Company forward. Some of the key accomplishments include:
- Increased Annual Revenues by 56%;
- Improved EBITDA by over $1.9 million to a positive $1.3 million for 2015;
- Reduced operating losses by $1.1 million;
- Secured a wide theatrical release for our film Ratchet & Clank April 29, 2016; and
- Continued to secure production service contracts to fill our production pipeline for 2016.
We are actively pursuing new opportunities on both production service and intellectual property projects, while exploring potential strategic opportunities to further grow as a multi-faceted media Company.
The Company is preparing for the upcoming release of Ratchet & Clank on April 29, 2016, as the culmination of a production investment for the last three years. We wish to thank all the current and former employees for their tireless efforts in completing this project as well as our shareholders for their continued support in the Company."
NON-IFRS FINANCIAL MEASURES
Beginning in 2016, the Company will be reporting using certain non-IFRS ("GAAP") measures, in addition to results reported in accordance with IFRS. These non-GAAP financial measures are considered supplemental indicators of the Company's financial and operating performance. They include operating earnings, operating earnings per share and operating EBITDA. The Company believes these supplemental financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
The Company defines operating earnings as net profit or loss excluding the impact of specified items affecting comparability, including, where applicable, share of loss of equity accounted investees, other non-operational income and expenses, deferred taxes and other gains or losses. The use of the term "non-operational income and expenses" is defined by the Company as those that do not impact operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal management reports. Operating earnings per share is calculated using diluted weighted average shares outstanding and does not represent actual earnings per share attributable to shareholders. The Company believes that the disclosure of operating earnings and operating earnings per share allows investors to evaluate the operational and financial performance of the Company's ongoing business using the same evaluation measures that management uses, and is therefore a useful indicator of the Company's performance or expected performance of recurring operations.
The Company defines operating EBITDA as earnings before interest, taxes, depreciation and amortization (excluding amortization of Investments in film and television properties), adjusted for certain corporate expenses and items affecting comparability as specified in the calculation of operating earnings. Operating EBITDA is presented on a basis consistent with the Company's internal management reports. The Company discloses operating EBITDA to capture the profitability of its business before the impact of items not considered in management's evaluation of operating performance. Unless otherwise stated, the Company includes the amortization of Investment in film and television in the calculation of EBITDA.
Operating earnings, operating earnings per share and operating EBITDA do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The Company cautions readers to consider these non-IFRS financial measures in addition to, and not as an alternative for, measures calculated in accordance with IFRS.
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, 2012. 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
Rainmaker Entertainment Inc., a multifaceted animation studio, is one of Canada's largest producers of CG animation. Rainmaker's first feature film Escape from Planet Earth, distributed by The Weinstein Company, enjoyed its theatrical release on February 15, 2013. Currently the studio is working on its second feature, Ratchet and Clank. Based on the popular Sony PlayStation game, this film is slated for release in 2015.
Further information available at:
Website: www.rainmaker.com
Contact: Bryant Pike
Tel: (604) 714-2600
Fax: (604) 714-5990
Email: investor@rainmaker.com
