TORONTO, July 30 /CNW/ - KNIGHTSCOVE MEDIA CORP (TSXV: KC.A/KC.B)
("Company", "Knightscove" www.knightscove.com) filed its unaudited interim
consolidated financial statements for the third fiscal quarter ended May 31,
2008, posting an increase in revenue of 178 percent.
The Company changed its fiscal year end from December 31 to August 31 in
2007, resulting in comparative analysis made to the three-month period ended
June 30, 2007 and eight-month period ended August 31, 2007.
Highlights during the period:
- Revenue of $986,014 generated in three-month period ended May 31,
2008 compared to $353,835 for the quarter ended June 30, 2007.
- Gross profit increased to $764,671 or 77 percent of revenues during
the May 31, 2008 quarter versus $221,828 or 62 percent of revenues
for the quarter ended June 30, 2007.
- Revenues of $3.19 million posted for nine months ended May 31, 2008,
a 250 percent increase from revenue of $916,145 in the eight-month
transitional year ended August 31, 2007.
The increase in revenue is primarily due to the acquisition and
successful integration of Morningstar Entertainment Inc. ("Morningstar")
(www.morningstarent.com), a leading Canadian DVD distributor.
"We have initiated a plan for strategic growth and the creation of a full
service entertainment corporation within North America, focusing on Family
Friendly content. While the current market conditions make raising capital
challenging for small companies we are focusing on the expansion of our
revenues through organic measures, including the launch of many new and
existing titles to the U.S.", noted Leif Bristow, President & CEO of
Knightscove Media Corp. "Morningstar launched its catalogue to the U.S. buyers
recently and expects to commence shipping its first orders in late August and
September. This will add new sources of revenue for both new and existing
library titles and will assist us as we continue to analyze new acquisitions.
We remain highly focused and determined to increase top line revenues and
enhanced shareholder value by maximizing the infrastructure which is now in
place and can manage much higher volumes of business."
The Company reported net loss of $19,165 versus a net loss of $1,197,958
for the eight-month transitional year ended August 31, 2007 respectively.
These losses are primarily attributed to non-cash items and amortization of
intangible assets related to the acquisition of Morningstar.
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 1,200 titles in its DVD library. Knightscove currently has 10,646,475
subordinate voting shares (KC.A) and 9,742,904 multiple voting shares (KC.B)
outstanding. Additional information regarding the business of Knightscove may
be found on www.knightscove.com on SEDAR at www.sedar.com. The TSX Venture
Exchange does not accept responsibility for the adequacy or accuracy of this
For further information:
For further information: Spinnaker Capital Markets Inc., Ali Mahdavi,
Partner, (416) 962-3300; Knightscove Media Corp., Leif Bristow, President and
CEO, (416) 444-7900 x222; or Annette Grot, VP Finance, (416) 444-7900 x231