Rainmaker Entertainment Announces Financial Results for the 3rd Quarter of 2015
VANCOUVER, BC--(Marketwired - November 25, 2015) - Rainmaker Entertainment Inc. (TSX VENTURE: RNK) today announced its results for the three and nine months ended September 30, 2015. Rainmaker reported a loss of $340,914 ($0.02 per share) for the third quarter of 2015 compared with a loss of $626,178 ($0.04 per share) for the third quarter of 2014. For the nine months ended September 30, 2015 Rainmaker reported a loss of $894,767 ($0.05 per share) compared with a loss of $1,901,125 ($0.11 per share) for the nine months ended September 30, 2014.
For the three months ended | For the nine months ended | ||||||||||||
$thousands, except per share amounts | 30-Sep-15 | 30-Sep-14 | 30-Sep-15 | 30-Sep-14 | |||||||||
Revenue | 3,954 | 2,726 | 12,354 | 6,809 | |||||||||
Loss from operations | (341 | ) | (626 | ) | (895 | ) | (2,011 | ) | |||||
Deferred Income tax recovery | – | – | – | 110 | |||||||||
Loss and total comprehensive loss | (341 | ) | (626 | ) | (895 | ) | (1,901 | ) | |||||
Loss per share | |||||||||||||
- basic and diluted | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.11 | ) | |
The Company achieved a 45% increase in revenue in the third quarter of 2015 compared to 2014, and 81% in the nine months ended September 2015 compared to the nine months ended September 30, 2014. The significant improvement in revenue in 2015 compared to 2014 reflects the additional production contracts of Bob the Builder and Open Season -- Scared Silly.
Loss from operations, while also showing significant improvement compared to 2014, was impacted by the expensing of debenture interest from the second quarter of 2015, and professional fees incurred as a result of the previously announced Shaftesbury transaction and Unit Offering. In 2014, interest on the debentures was being capitalized to Ratchet & Clank, which ceased upon its substantial completion in the first quarter of 2015.
Michael Hefferon, President and Chief Creative Officer, commented, "We're pleased with the recent accomplishments in all aspects of our core business. The Company successfully concluded the US theatrical distribution deal with Focus Features for its upcoming film, Ratchet & Clank, which is expected to release across 2,500 screens in the US on April 20, 2016. This included closing the prints and advertising financing necessary to release the film as well. In addition, Rainmaker has increased its service production activity with the commencement of three new direct to DVD animated films."
Shaftesbury Films Proposed Transaction and Proposed Offering of Units
As previously announced, on October 30, 2015, Rainmaker filed a final prospectus in respect of a proposed offering of Units in connection with the proposed transaction to acquire all the shares of Shaftesbury Films Inc. with the British Columbia Securities Commission. Rainmaker and Shaftesbury continue to work to satisfy the conditions to closing of the Transaction, including completion of the prospectus offering of units. Rainmaker and Shaftesbury have agreed to extend the "Outside Date" for completion of the Transaction to December 15, 2015.
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. For more information, visit www.rainmaker.com.
