Business
Section Rouge Media inc.: Disposal of assets and impact of division sale increase annual loss
LONGUEUIL, QC, April 29 /CNW Telbec/ - ----------------------------------------------------------...
About this update from Falcon Energy Materials Plc
[{"type":"text","content":"\n\n\n\nLONGUEUIL, QC, April 29 /CNW Telbec/ -\n\n\n-------------------------------------------------------------------------\n\nSUMMARY\n-------\n\n December 31, 2007 December 31, 2006\n (Audited) (Audited)\n\nSALES $2,651,136 $2,874,571\nEBITDA ($ 198,192) $ 82,600\nLOSS (CONTINUING OPERATIONS) ($ 740,199) ($ 77,491)\nLOSS (DISCONTINUED OPERATIONS) ($ 780,305) ($ 267,287)\nNET LOSS ($1,520,504) ($ 344,778)\nNET LOSS PER SHARE ($ 0.038) ($ 0.011)\n-------------------------------------------------------------------------\n\n\nSECTION ROUGE MEDIA inc (TSX-V: SRO) filed its 2007 financial results\n\n\ntoday.\n\n\nThe Company reported an operating loss, which was compounded by the\naccounting impact of two divestitures: its games and crossword magazines,\nwhich it no longer anticipated could be profitable over the long term, and its\nImage In Media inc. division, the earlier-announced film-related activities of\nwhich experienced continued start-up delays. The Company was also obliged to\nassume a write-off of assets in its family-oriented magazines division, due to\nthe effects of a general slowdown in the publications market over the past\nyear.\n\n\nThe Company posted sales in the amount of $2,651,136 for its activities\nduring the financial year ended December 31, 2007, compared to $2,874,571 for\nthe previous year - a drop of 8%. It also posted a net loss of $1,520,504,\nversus a loss of $344,778 for the financial year ended December 31, 2006. The\nnet loss per share was 0.038, compared to a loss of $0.011 in 2006.\n\n\nThe Company's results were also affected by almost $150,000 in financing\ncosts incurred during the last financial year, in connection with its actions\nto realize the transaction with Evolutra Corporation inc., which was announced\non September 14, 2007.\n\n\nDespite the above negative data, Section Rouge Media remains debt-free\nover the long term.\n\n\n"Our withdrawal from certain unprofitable activities has enabled us to\nreorganize our administrative staff and place certain locations on the rental\nmarket. These moves will significantly reduce our financial expenses beginning\nthe second quarter of 2008, and better position us to quickly develop the\nCompany's anticipated activities," stated Mr. Desmarais. Richard Desmarais,\nPresident and Chief Executive Officer of Section Rouge Media inc., expr...