Business
The publications of Section Rouge Media regain profitability, but cinema division faces delays in production of revenues
The publications of Section Rouge Media regain profitability, but cinema division faces delays in production of revenues.
About this update from Falcon Energy Materials Plc
[{"type":"text","content":"\n\n\n\n-------------------------------------------------------------------------\nSYNOPSIS\n--------\n December 31st, 2006 December 31 st, 2005\n (audited) (audited)\n\nGROSS SALES $ 3,634,252 $ 3,733,139\nDIRECT EXPENSES $ 1,890,944 $ 2,181,869\nGAIN/(LOSS) BEFORE TAXES $ (100,192) $ 84,500\nNET LOSS $ 344,778 $ (126,902)\nNET LOSS PER SHARE $ 0.011 $ 0.006\n-------------------------------------------------------------------------\n\n\nLONGUEUIL, QC, April 27 /CNW Telbec/ - SECTION ROUGE MEDIA inc (TSX-V :\nSRO) today published its financial results for 2006 and announced that it had\nregained profitability in its publications division, but that its development\nexpenditures in its cinema division caused a consolidated loss.\n\n\nThe Company's gross sales of $3,634,252 for the 2006 calendar year\nrepresents a decrease of 2% in comparison to the gross sales of $3,733,139 for\nthe previous calendar year (2005). The restructuring measures implemented in\nthe Company's publications division resulted in a pre-tax gain of $194,266.\nHowever, as envisioned within the planned development of the new cinema\ndivision acquired in July of 2006, the Company reports a\ndivisional/departmental loss of $312,444. The consolidated loss of all\noperations is thus $118,178.\n\n\nThe Company's net loss is $344,778, compared to $126,902 for the period\nending December 31 st, 2005. The net loss per share is $0.011 as compared to a\nnet loss per share of $0.006 in 2005.\n\n\nCompany revenues are can be credited solely to its publications division,\nthe 2% decrease being attributed essentially to a decrease in circulation for\nthe newspaper Photo Police. The management is pleased to note that all the\nCompany's publications are now profitable, including its family oriented\nmagazine publications: Bebe, Junior and Grossesse.\n\n\nIn the cinema sector, revenues are slightly later in realization than\noriginally anticipated. The Company therefore must absorb the administration\ncosts generated by this sector since its acquisition in July of 2006, namely\n$312,444. Meanwhile, the independent appraisal of this acquisition establishes\nits value higher than the purchase price.\n\n\nThe financial results are equally affected by the transmission and\nfinancing costs incurred during the past year.\n\n\nBecause of the Company's positive cash flow and the financ...