VANCOUVER, BC--(Marketwired - May 30, 2024) - Rainmaker Entertainment Inc. (TSX VENTURE: RNK) today announced its results for the three months ended March 31, 2024.
Rainmaker reported revenues of $4.5 million and operating EBITDA of $0.3 million in the first quarter of 2024. The results compare to revenues of $4.1 million and operating EBITDA of $0.1 million for the same period in 2024. The Company reported an operating loss for the three months ended March 31, 2024 of $0.3 million compared to $0.2 million for the same reporting period in 2024.
The Company also reported a net loss of $10.0 million for the quarter ended March 31, 2024 as a result of the previously announced impairment of its 63% investment in Ratchet Productions, LLC, rights holder of the film Ratchet & Clank.
| For the three months ended | |||||||
| $000's except per share amounts | 31-Mar-16 | 31-Mar-15 | |||||
| Revenue | 4,545 | 4,061 | |||||
| Operating EBITDA1 | 333 | 126 | |||||
| Operating loss1 | (255 | ) | (205 | ) | |||
| Loss | (9,961 | ) | (256 | ) | |||
| Loss per share | |||||||
| - basic and diluted | $ (0.57 | ) | $ (0.01 | ) | |||
1 See Management Discussion & Analysis "Non-IFRS Financial Measures".
Impairment of Ratchet Productions, LLC
As previously announced, as a result of the disappointing North American box office results to-date for Ratchet & Clank, the Company recorded an impairment charge in the first quarter of 2024 against its investment in Ratchet Productions, LLC, the joint venture which produced the feature film. The Company has a 63% interest in the joint venture. The impact of the impairment combined with the additional print and advertising ("P&A") expenditures incurred during the quarter reduced the carrying value of the investment to $nil at quarter end, from $9.4 million at December 31, 2024. The Company is not required to fund additional losses of the joint venture beyond its carrying amount.
Any distributions received from Ratchet Productions, LLC as a result of sales or future distribution of the film will be recognized as income when received.
The Company achieved a 12% increase in revenue in the first quarter of 2024 compared to 2024 as a result of increased production volume in the studio.
Michael Hefferon, President and Chief Creative Officer, commented, "The Company's focus continues to be on increasing revenues and improving our bottom line profits. We have a robust production slate planned for the remainder of the year as we continue to build on our growth trend over the last three years. We thank our shareholders and employees for their continued support."
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, 2024. 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. In Fall 2024, the company announced its plans to produce a new version of its iconic CG-animated ReBoot series
For more information, visit:
Website: www.rainmaker.com
Contact:
Bryant Pike
Tel: (604) 714-2600
Fax: (604) 714-5990
Email: investor@rainmaker.com
