VANCOUVER, BC–(Marketwired – November 25, 2016) – Rainmaker Entertainment Inc. (TSX VENTURE: RNK) today announced its results for the three and nine months ended September 30, 2016.
Rainmaker reported revenues of $4.7 million and operating EBITDA of $0.8 million in the third quarter of 2016. The results compare to revenues of $4.0 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 September 30, 2016 of $0.2 million compared to an operating loss of $0.1 million for the same reporting period in 2015. Highlights for third quarter include:
- Net profit of $1.2 million, the second consecutive quarterly profit for the Company in 2016.
- EBITDA of $0.8 million, a 17% increase from Q2 2016 and 36% over the same period 2015.
- Revenues of $4.7 million a decrease of 5% from Q2 2016 and an increase of 19% over the same period 2015.
- Collected $1.0 million in cash from the previously impaired investment in Ratchet & Clank
The Company reported a net loss of $8.6 million for the nine months ended September 30, 2016 (2015: $0.9 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 nine months ended | |||||||||||||||
| $000’s except per share amounts | 30-Sep-16 | 30-Sep-15 | 30-Sep-16 | 30-Sep-15 | ||||||||||||
| Revenue | 4,698 | 3,954 | 14,207 | 12,354 | ||||||||||||
| Operating EBITDA1 | 782 | 576 | 1,783 | 1,100 | ||||||||||||
| Operating Profit (Loss)1 | 243 | (71 | ) | 124 | (573 | ) | ||||||||||
| Profit (Loss) | 1,226 | (341 | ) | (8,599 | ) | (895 | ) | |||||||||
| Earnings (Loss) per share | ||||||||||||||||
| – basic | $ | 0.07 | $ | (0.02 | ) | $ | (0.49 | ) | $ | (0.05 | ) | |||||
| – diluted | $ | 0.02 | $ | (0.02 | ) | $ | (0.49 | ) | $ | (0.05 | ) | |||||
| 1 See Management Discussion & Analysis “Non-IFRS Financial Measures”. |
Craig Graham, Chief Executive Officer, added, “The current quarter’s results are a credit to Management’s continued efforts to produce quality animated content and obtain positive financial results for Rainmaker’s shareholders in 2016. We are pleased to have concluded key milestones towards our Frederator/Ezrin-Hirsh transaction, and look forward to closing the transaction following our shareholder meeting on December 12th. I would like to thank our management team, our shareholders, and our debenture holders for their support over the last year and continued support as we embark on this new chapter for the company.”
Stock Trading Update:
The company is currently working to provide the TSX Venture with all remaining documentation as required for trading of the company’s common shares and convertible debentures to resume as soon as possible. No definitive timeline is currently available; however an update will be provided on the estimated timing of resumption of trading as soon as it can be reasonably determined.
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, 2015. 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. 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, including the re-launch of Rainmaker’s iconic brand Reboot. For more information, visit: www.rainmaker.com.
Website: www.rainmaker.com
Contact: Bryant Pike
Tel: (604) 714-2600
Fax: (604) 714-5990
Email: investor@rainmaker.com