Amcomri Reports Increase in Revenues, Gross Margin and Net Income for the First Quarter of Fiscal 2022

• Revenues increased 81.5% year-over-year to $4.2 million
• Gross margin improved to 80.2% from 69.0% in Q1 2021
• Net income after accounting for the cost associated with the reverse takeover of Appreciated Media totaled $0.8 million compared to $0.5 million in same period of 2021
• EBITDA grew 38.1% year-over-year to $1.3 million
• Completed reverse takeover of Appreciated Media and the acquisition of Silentpoint

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

“We’re delighted 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 substantially in the first quarter of 2022 based on operational excellence across all four business areas including in-house productions, content libraries, production finance and global distribution channels. These first-quarter results also reflect that we’re on the right path with our diversified growth strategy with the recent acquisition of Silentpoint Limited (renamed Amcomri Productions Limited) adding approximately 400 titles to our UK distribution library. As a result, we’re brimming with excitement at this year’s Marché du Film, Cannes Film Festival, where we’re showcasing an extensive slate of 12 new titles, of which four have been fully financed and produced and will be released by Amcomri in 2022.”

“We’re particularly pleased with our gross margin climbing above 80% in the first quarter on the strength of higher margins achieved from TV and movie rights acquisitions and sales,” said Larry Howard, Chief Financial Officer of Amcomri. “A high-margin and low overhead business model aligned with excellent standards of service for our production partners is what separates Amcomri from many other players in this competitive industry.”

Selected Financial Information

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

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

First Quarter Overview

Revenue increased 81.5% to $4.2 million in the first quarter of fiscal 2022 from $2.3 million in first quarter of 2021 mainly due to the strong performance of new titles released in the early part of 2022, increased consumer appetite for Advertising Video on Demand (AVOD), and a robust performance from movie libraries and TV programming acquired over the past 12 months.

Gross margin amounted to 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 being achieved from TV and movie rights acquisitions and sales.

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 three additional recruits joining the Company.

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 fees in the first quarter of 2022 are related to the closing of the reverse takeover, NEO Exchange listing and ongoing professional services associated to 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 of 2021. There were 72 million shares outstanding in Q1 FY22 compared to 141k in Q1 FY21.

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

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 Amcomri. 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 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, Amcomri’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. 

Amcomri defines EBITDA as net income before interest, taxes, depreciation and amortization. EBITDA is intended to provide a proxy for Amcomri’s operating cash flow and is widely used by industry analysts to compare companies.

Reconciliation of EBITDA to Net Income

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 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 for independent movie, documentary and TV series producers as well as for its own in-house productions. With decades of experience across all key media platforms, Amcomri is rapidly becoming the go-to team for independent producers seeking the broadest 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 further 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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