LONGUEUIL, QC, April 29 /CNW Telbec/ -
-------------------------------------------------------------------------
SUMMARY
-------
December 31, 2007 December 31, 2006
(Audited) (Audited)
SALES $2,651,136 $2,874,571
EBITDA ($ 198,192) $ 82,600
LOSS (CONTINUING OPERATIONS) ($ 740,199) ($ 77,491)
LOSS (DISCONTINUED OPERATIONS) ($ 780,305) ($ 267,287)
NET LOSS ($1,520,504) ($ 344,778)
NET LOSS PER SHARE ($ 0.038) ($ 0.011)
-------------------------------------------------------------------------
SECTION ROUGE MEDIA inc (TSX-V: SRO) filed its 2007 financial results
today.
The Company reported an operating loss, which was compounded by the accounting impact of two divestitures: its games and crossword magazines, which it no longer anticipated could be profitable over the long term, and its Image In Media inc. division, the earlier-announced film-related activities of which experienced continued start-up delays. The Company was also obliged to assume a write-off of assets in its family-oriented magazines division, due to the effects of a general slowdown in the publications market over the past year.
The Company posted sales in the amount of $2,651,136 for its activities during the financial year ended December 31, 2007, compared to $2,874,571 for the previous year - a drop of 8%. It also posted a net loss of $1,520,504, versus a loss of $344,778 for the financial year ended December 31, 2006. The net loss per share was 0.038, compared to a loss of $0.011 in 2006.
The Company's results were also affected by almost $150,000 in financing costs incurred during the last financial year, in connection with its actions to realize the transaction with Evolutra Corporation inc., which was announced on September 14, 2007.
Despite the above negative data, Section Rouge Media remains debt-free over the long term.
"Our withdrawal from certain unprofitable activities has enabled us to reorganize our administrative staff and place certain locations on the rental market. These moves will significantly reduce our financial expenses beginning the second quarter of 2008, and better position us to quickly develop the Company's anticipated activities," stated Mr. Desmarais. Richard Desmarais, President and Chief Executive Officer of Section Rouge Media inc., expressed his disappointment with the delays encountered in finalizing the transaction announced, which is preventing resumption of trading in this stock.
The management report and financial statements for the year ended December 31, 2007 are available on the SEDAR site, at www.sedar.com .
Section Rouge Media inc. is a publishing company listed on the TSX Venture Exchange.
The TSX Venture Exchange has neither approved nor disapproved the
contents of this release.
%SEDAR: 00008697EF