TORONTO, Feb. 1 /CNW/ - KNIGHTSCOVE MEDIA CORP (TSXV: KC/OTCQX: KCMDF)
("Company", "Knightscove" www.knightscove.com) filed its unaudited interim
consolidated financial statements for the fiscal quarter ended November 30,
2007. The Company generated revenue of $1,352,548 for the quarter compared to
$86,771 for the quarter ended September 30, 2006, an increase of 1400%. The
increase in revenue is due to the acquisition of Morningstar Entertainment
Inc. (www.morningstarent.com) and brisk DVD sales at that subsidiary realized
during the pre-Christmas season. Knightscove recognized a profit of $27,038 or
$0.002 per share for the quarter ended November 30, 2007 compared to a net
loss of 387,163 or ($0.03) per share for the quarter ended September 30, 2006.
The Company's total assets increased to $4,519,015 from $4,263,291 as at
August 31, 2007. In 2007, the Company changed its fiscal year end from
December 31 to August 31 to coincide with Morningstar's year end.
Knightscove posted its first profit based on Morningstar's strong first
fiscal quarter of 2008 with the release of "Terry" (The Terry Fox Story),
"Little Mosque on the Prairie Season 1", and the Barenaked Ladies' concert
DVD/CD "Talk to the Hand - Live in Michigan". In addition to complementing
Morningstar's existing DVD library of 1,400 titles, the Company is looking
forward to numerous initiatives over the next few months to boost sales and to
provide a solid foundation for growth. Specifically, Morningstar is launching
a four week campaign at Wal-Mart Canada for the release of Kathy Smith's
Fitness Catalogue. Coinciding with the post-Christmas focus on fitness, the
"Spring Into It!" campaign will feature all sixteen of Kathy Smith's Fitness
DVDs in brightly designed displays with distribution of over 28,000 units.
Additionally, Morningstar is transferring its inventory to be housed and
managed in Sony's Toronto state-of-the-art fulfillment facility. This transfer
is anticipated to generate operational savings on a going forward basis and
reflects the Company's commitment to drive shareholder value.
The Company believes that it can capitalize on the foundation of this
first acquisition to build revenue opportunities and increase profit margins
through future strategic acquisitions in the media environment.
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 19,495,808 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 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) 444-7900 x222; Annette Grot, VP Finance, (416)