Mr. Robert Price reports

AMCOMRI REPORTS STRONG SECOND QUARTER GROWTH IN REVENUE AND EARNINGS

Amcomri Entertainment Inc. has released its financial results for the second quarter ended June 30, 2023. All dollar amounts are in Canadian dollars unless otherwise stated.

Q2 2023 highlights (compared with Q2 2022)

• Revenue increased 110.8 per cent to $7.5-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 83.5 per cent to $4.1-million;
• Net income increased 21.4 per cent to $1.5-million;
• Strong contributions from the digital and physical distribution of Left Behind: Rise of the Antichrist, Abacus (television and documentary division), and 101 Films (movie distribution);
• Paid down debt by approximately $2.2-million.

"We more than doubled our revenue and achieved strong increases in adjusted EBITDA and net income in the second quarter," said Robert Price, chief executive officer of Amcomri. "We benefited from strong demand for 'Left Behind: Rise of the Antichrist' in the quarter after the physical and digital distribution window in North America opened near the end of March. We also had strong contributions from Abacus, with two major titles released in the quarter, and continued strength from 101 Films.

"While we continue to embrace our diversified content business model, we will be focusing more on our film and TV distribution businesses -- and particularly in TV where we represent and invest in a wide range of quality productions and see stronger growth opportunities. We continue to make progress in our mission to establish Amcomri as the home for independent storytellers. And while we are monitoring the strikes in Hollywood, our existing content libraries, focus on independent productions, and the documentary side of our business should help shield us from the effects of those strikes."

Second quarter overview

Revenue (net sales after royalties) for the quarter increased by 110.8 per cent to $7,513,160 compared with $3,546,563 for the second quarter of 2022. The increase was primarily attributable to the addition of physical and digital distribution of Left Behind: Rise of the Antichrist, which commenced in March of 2023. Also contributing to the increase were strong sales from Abacus (TV and documentaries) and 101 Films.

Direct costs in the quarter increased 227.1 per cent to $866,395, mostly due to the costs associated with physical distribution of discs for Left Behind: Rise of the Antichrist. Operating expenses increased 138.5 per cent, largely due to higher headcount as a result of the significant operational growth in the past year, higher professional fees attributable to additional sales agents located in various countries and expenses incurred in relation to accounting software.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 83.5 per cent to $4,102,282, or 54.6 per cent of revenue. Net profit increased 21.4 per cent to $1,533,155, or 20.4 per cent of revenue.

Amcomri's financial statements and management's discussion and analysis, for the three-month and six-month periods ended June 30, 2023, will be filed on SEDAR+ on Monday, Aug. 14, 2023, and will also be available on Amcomri's website.

About Amcomri Entertainment Inc.

Amcomri Entertainment provides global distribution capabilities for independent movie, documentary and TV series producers, as well as for its own in-house productions. With decades of experience across all key media platforms, Amcomri is rapidly becoming the go-to team for independent producers seeking the broadest possible audience for their productions. The Amcomri Entertainment group of companies includes 101 Films, 101 Films International, Hollywood Classics International, Amcomri Productions, Appreciated Media Global, Amcomri Productions and Abacus Media Rights.

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