Amcomri Announces Increase in Revenue, Gross Margin and Net Profit for the First Quarter of Fiscal 2022

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  • Revenue grew 81.5% year-over-year to $4.2 million
  • Gross margin improved to 80.2% from 69.0% in Q1 2021
  • Net income after taking into account costs associated with the reverse takeover of Appreciated Media totaled $0.8 million, compared to $0.5 million in the same period of 2021
  • EBITDA increased 38.1% year over year to $1.3 million
  • Completion of reverse takeover of Appreciated Media and acquisition of Silentpoint

VANCOUVER, British Columbia, May 19, 2022 (GLOBE NEWSWIRE) — Amcomri Entertainment Inc. (“Amcomri” or the “Company”) (NEO: AMEN) (OTC: AMNNF) (Frankfurt: 25), a producer and distributor global independent film, television series and documentary company, today announced its financial results for the first quarter ended March 31, 2022. All dollar amounts are in Canadian dollars unless otherwise noted.

“We are pleased with our strong financial performance in our first quarter as a publicly traded company following the reverse takeover of Appreciated Media,” said Robert Price, Chief Executive Officer of Amcomri. “Revenue, gross margin and profitability increased significantly in the first quarter of 2022 thanks to operational excellence in all four business areas, including in-house productions, content libraries, production financing and global distribution channels.These first quarter results also reflect that we are on track with our diversified growth strategy with the recent acquisition of Silentpoint Limited (renamed Amcomri Productions Limited) adding approximately 400 titles to our distribution library in As a result, we’re brimming with excitement at this year’s Marché du Film, Cannes Film Festival, where we’re showcasing a huge selection of 12 new titles, four of which have been fully financed and produced and will be released by Amcomri in 2022. . »

“We are particularly pleased with our gross margin growth above 80% in the first quarter on the back of higher margins realized from acquisitions and sales of television and film rights,” said Larry Howard, Chief Financial Officer of Amcomri. . “A high margin, low overhead business model aligned with excellent service standards for our production partners is what sets Amcomri apart from many other players in this competitive industry.”

Selected financial information

The following table sets forth selected historical financial information for Amcomri for the first quarter ended March 31, 2022. This information is derived from and should be read in conjunction with Amcomri’s consolidated financial statements for the first quarter of 2022, which have been filed under Company profile on SEDAR at www.sedar.com.

For the first quarter ended March 31(1)
2022 2021
Revenue $4,165,183 $2,295,159
Gross margin $3,339,686 $1,583,411
80.2% 69.0%
Functionnary costs $2,302,368 $828,696
Exchange loss ($195,951)
Net revenue $778,275 $531,625
EBITDA(2) $1,272,063 $921,214

(1) Amounts in this press release have been converted from British Pounds at the rate of £1.00 to C$1.71546.
(2) EBITDA is a non-IFRS measure. See the “Non-IFRS Measures” section for a reconciliation to net earnings.

First Quarter Overview

Revenue increased 81.5% to $4.2 million in the first quarter of Fiscal 2022 from $2.3 million in the first quarter of 2021, primarily due to the strong performance of newly released titles early in 2022, increased consumer appetite for video on demand (AVOD) advertising, and a strong performance from movie libraries and TV shows acquired over the last 12 months.

Gross margin was 80.2% of sales in the first quarter of fiscal 2022, compared to 69.0% in the same period in 2021. The 11 point increase can largely be attributed to higher margins high realized thanks to the acquisitions and sales of television and cinematographic rights.

Salaries and benefits expenses totaled $0.5 million in the first quarter of Fiscal 2022, compared to $0.3 million in the first quarter of 2021. The increase in the first quarter of 2022 is the result of the arrival of three additional recruits in the Society.

Professional fees reached $1.1 million in the first quarter of fiscal 2022, compared to $0.2 million in the same period last year. The additional costs in the first quarter of 2022 relate to the closing of the reverse takeover, listing on the NEO Exchange and ongoing professional services associated with being a public company.

IFRS net income totaled $0.8 million, or $0.01 per diluted share, in the first quarter of fiscal 2022, compared to $0.5 million, or $4.94 per diluted share, in the first quarter 2021. There were 72 million shares outstanding in the first quarter of FY22, compared to 141,000. in Q1 FY21.

EBITDA was $1.3 million in the first quarter of fiscal 2022, compared to $0.9 million during the same period in 2021.

Non-IFRS Measures

This press release refers to certain measures of financial performance that are not defined by International Financial Reporting Standards (referred to as “non-IFRS measures”) and which do not have a standardized meaning under them- this. Non-IFRS measures are used by management to assess Amcomri’s financial and operating performance. 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 results of operations, underlying performance and prospects of the same way as the management of the Company. Because there are no standardized methods of calculating these non-IFRS measures, Amcomri’s approach may differ from those used by others and, therefore, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide supplemental information and should not be considered in isolation or as a substitute for performance measures prepared in accordance with International Financial Reporting Standards.

Amcomri defines EBITDA as net earnings before interest, taxes, depreciation and amortization. EBITDA is intended to provide an approximation of Amcomri’s operating cash flow and is widely used by industry analysts to compare businesses.

Reconciliation of EBITDA to Net Income

Three months completed Three months completed
March, 31st March, 31st
2022 2021
Net revenue $ 778 275 $ 531 625
Add:
Interest 79,686 4,038
Tax 215,568 151 125
Amortization and depreciation 198,534 234,426
EBITDA 1,272,063 $ 921 214

Forward-looking statements

This press release contains statements that constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding plans, intentions, current beliefs and 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”, ” esteem”, “expect” or similar expressions.

Investors are cautioned that forward-looking statements are not based on historical fact but rather reflect the Company’s expectations, estimates or projections regarding future results or events based on management’s beliefs, assumptions and estimates believed to be reasonable at the date on which the declarations are made. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve risks and uncertainties, and undue reliance should not be placed on them, as unknown or unforeseeable factors could have material adverse effects on future results, performance or achievements. 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 abroad; compliance with broad government regulations; and the risks and uncertainties associated with foreign markets. These forward-looking statements may be affected by risks and uncertainties in the Company’s business 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 differ materially from those described herein as anticipated, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be those anticipated, estimated or expected and these changes could be material. The Company does not intend and undertakes no obligation to update any forward-looking statements, except as otherwise required by applicable law.

Investors are cautioned that trading in the Company’s securities should be considered highly speculative. For a more detailed discussion of these risks and uncertainties, please see the section titled “Risk Factors” in the Company’s Annual Information Form dated March 23, 2022 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 to independent producers of films, documentaries and television series as well as its own in-house productions. With decades of experience across all key media platforms, Amcomri is quickly becoming the go-to team for independent producers seeking the widest 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 more 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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