VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / May 27, 2014 / Gener8 Media Corp. (CSE: GNR) ("Gener8" or the "Company") is pleased to announce the release of its unaudited financial results for the first quarter ended March 31, 2014. All figures are in Canadian dollars.
"We are excited to announce these results, as they represent the best revenue and net income we have had to date," says Rory Armes, CEO. "The positive numbers are due to our strong performance on the 3D conversion side, the great work being done by our team, the support of our amazing customers, and the benefits of our early support in Reelhouse."
Q1 2014 Financial Highlights:
-Revenue for the three months ended March 31, 2014 was $4,127,609, an increase of 240% compared to the three months ended March 31, 2013
-Net income for the three months ended March 31, 2014 was $2,912,875 ($0.07 earnings per share), an increase of 270% compared to the three months ended March 31, 2013
-Net income increased due to the gain from the re-measurement to fair value of the Company's 48% interest in Reelhouse Media Ltd. ("Reelhouse")
-This quarter Gener8 achieved its highest revenue in the Company's short history
Q1 2014 Operational Update:
-Gener8 was completing the 3D conversion of two feature films at the end of March 31, 2014
-The Company acquired 48% of Reelhouse through the conversion of a $1.125 million promissory note in Reelhouse, and subsequently acquired an additional 18% interest providing the Company a 66% majority voting interest in Reelhouse
-Gener8 signed an Asset Purchase Agreement with Tianjin Fu Feng Da Movie & Television Technology Investment and Development Co. Ltd ("FFD")
-The Company signed a multi-picture deal to convert three animated films into 3D with Rainmaker Entertainment Inc.
-Gener8 launched a new visual effects division called The Feder8tion
Financial Summary for the first quarter ended March 31, 2014
------------------------------------------------------------- | | | | |-----------------------------------------------------------| | |Three months ended | |-----------------------------------------------------------| | |Mar 31, 2014|Mar 31, 2013 | |-----------------------------------------------------------| |Revenue | $ | $ 1,208,276| | | 4,127,609 | | |-----------------------------------------------------------| | | | | |-----------------------------------------------------------| |Net income (loss) | | | |and comprehensive | | | |-----------------------------------------------------------| | income (loss) for the period| | | | | 2,912,875 |(1,712,395) | |-----------------------------------------------------------| | | | | |-----------------------------------------------------------| |Basic income (loss) per share| $ | $ | | | | | | | 0.07 |(0.04) | |-----------------------------------------------------------| | | | | -------------------------------------------------------------
FFD Transaction Update:
The partnership agreement, which was targeted to close on May 23, 2014, is in the process of obtaining final approval from the Chinese government. While the $1 million advance by FFD has become non-refundable and the exclusivity provision between FFD and the Company has expired, both parties continue to proceed to close as quickly as possible.
Upon the closing of this transaction, the Company will retain a 40% interest in the 3D business, which will be accounted for going forward on an equity basis. The approximate $12 million net proceeds from the FFD transaction will be used to fund continued development and growth of the Company's Cumul8 and Reelhouse technologies.
About Gener8
Gener8 Media Corp. is a media technology company led by a team of gaming industry veterans. At the forefront of postproduction, the Company earned its stripes by developing a proprietary 3D conversion technology, garnering high-profile credits including "300: Rise of an Empire," "The Amazing Spider-Man," "Prometheus" and "Harry Potter." Gener8 has since expanded into offering visual effects services and a cloud-based data management and analytics solution called Cumul8. With its focus on developing disruptive solutions that combine design and technology, Gener8 funded and then acquired a majority interest in Reelhouse Media Ltd., an online entertainment distribution start-up. Gener8's head office is located in Vancouver, British Columbia and currently has over 200 employees. Visit the company website at www.gener8.com.
ON BEHALF OF THE BOARD OF THE COMPANY
"Rory Armes"
Rory Armes
Chief Executive Officer and Director
FOR MORE INFORMATION, PLEASE CONTACT:
Danielle Rockel
Vice President of Corporate Affairs
[email protected]
604-669-8885
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. In particular, forward-looking statements in this press release. Although Gener8 believes that the expectations reflected in the forward-looking statements are reasonable; there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: closing the definitive agreements respecting the transaction with FFD, obtaining all regulatory and third party consents, meeting our contractual timelines and milestones on our 3D film conversion contracts; general economic conditions in Canada and globally; film industry conditions; competition for, among other things, capital and skilled personnel; changes in economic and market conditions that could lead to reduced spending on 3D film conversion; potential delays or changes in plans with respect to deployment of services or capital expenditures; our ability to hire and retain qualified employees and key management personnel; possibility that government policies or laws may change; amount and timing of operating costs and capital expenditures; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; reliance on a limited number of suppliers; risks related to the Company's competition; the Company's failure to adequately protect its intellectual property; interruption or failure of information technology systems; the risk that the transaction may not be completed as planned, or at all; and business, legal and/or regulatory risks relating to Gener8's business, financings and strategic acquisitions. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.