TORONTO, Sept. 5 /CNW/ - KNIGHTSCOVE MEDIA CORP (TSXV: KC/OTCQX: KCMDF)
("Company", "Knightscove" www.knightscove.com) has filed its un-audited
interim financial statements for the fiscal quarter ended June 30th, 2007. The
Company generated revenue of $353,835 compared to $201,384 in the fiscal
quarter ended June 30th, 2006, a period over period increase of 75%. The
operations of Knightscove's recently acquired wholly owned subsidiary,
Morningstar, (www.morningstarent.com ) were consolidated in the Company's
financial statements from the date of acquisition, May 18th, 2007 to
June 30th, 2007. During that time Morningstar generated $325,589 of recognized
revenue. Total assets increased from $739,145 as at June 30th, 2006 to
$3,927,800 as at June 30th, 2007. Current annual sales for Morningstar are
approximately $4.2 million from the distribution of its 1,400 title DVD
As Morningstar is fully integrated into the Company, the sales revenue
from the library and from Knightscove's other initiatives will provide a solid
foundation for growth and enhancing shareholder value consistent with the
board and management's strategic direction. The Company's fiscal year end is
currently December 31, but an application has been made to amend the fiscal
year end to August 31 to better coincide with the business cycle of
Morningstar and the seasonal demands of the DVD business.
With the consolidation of Morningstar, the Company incurred costs of
goods sold expense for the first time in the amount of $132,007, generating a
gross profit of $221,828. Supporting Morningstar's marketing plan, CoGS are
related to the design, development, printing and manufacturing of DVD product.
The DVD product is marketed and distributed to customers including
Blockbuster, Wal-Mart, Costco., Future Shop, Best Buy, HMV, among others.
Overall expenses for the second fiscal quarter increased 15% from $221,003 to
$254,893 over the same period last year. As a result, Knightscove incurred a
net loss for the fiscal quarter ended June 30th, 2007 of $33,065 ($0.002 per
share) compared with a net loss of $19,619 ($0.001 per share) for the fiscal
quarter ended June 30th, 2006. As Knightscove continues to implement its
business strategy by building or acquiring new revenue generating entities,
expenses may increase but are expected to decrease as a percentage of revenue.
The Company is currently in discussions with other entertainment entities and
expects to acquire additional films and libraries as these opportunities are
identified and assessed.
"This first significant step will provide our shareholders with the
confidence that the executive team, Board of Directors and staff are committed
to delivering on the business vision of Knightscove both through acquisition
and internal growth," says, Leif Bristow, Knightscove's CEO. Under
Knightscove's family brand, its $9 million inhouse production of "Ruby and the
Prince" is scheduled to shoot in June 2008. In the tradition of "Free Willy",
Ruby is a young dancer whose family zoo is forced to relinquish their
elephant, Prince, to a small traveling circus. Ruby must learn to risk
everything to gain the ultimate freedom for her best friend, his repatriation
to his birthplace. "Ruby and the Prince" continues Knightscove's tradition of
inspiring family friendly films.
About Knightscove and Morningstar:
Knightscove Media Corp. along with its wholly owned subsidiaries,
Morningstar Entertainment Inc. ("Morningstar") and Knightscove Family Films
Inc., is an integrated Canadian entertainment company specializing in the
distribution, acquisition and creation of high quality live-action feature
films and television productions for the whole family. With the acquisition of
Morningstar, one of Canada's leading independent home entertainment
distribution companies in the home video and DVD markets, Knightscove has
executed the first step in its strategy to distribute family film product to
the theatrical, home video/DVD, pay, specialty and free television markets in
North America and internationally. Established 15 years ago, Morningstar has
over 1,400 titles in its DVD library.
Knightscove currently has 19,295,808 common shares outstanding.
Additional information regarding the business of Knightscove may be found on
www.knightscove.com on SEDAR at www.sedar.com and on www.OTCQX.com. The second
quarter un-audited interim financial statements and MD&A may be found at
. The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
For further information:
For further information: Knightscove Media Corp., Leif Bristow,
President and CEO, (416) 691-6655 ext 267; Porter, Levay & Rose, Michael
Porter, President or Linda Decker, (212) 564-4700