LONGUEUIL, QC, Aug. 29 /CNW Telbec/ -
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SUMMARY
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30 JUNE 2007 30 JUNE 2006 30 JUNE 2007 30 JUNE 2006
3 months 3 months 3 months 6 months
(unaudited) (unaudited) (unaudited) (unaudited)
GROSS SALES $ 882,450 $ 837,316 $ 1,724,668 $ 1,824,251
OPERATING COSTS $ 473,848 $ 491,292 $ 942,670 $ 1,002,918
LOSS BEFORE TAXES $ (227,766) $ (64,254) $ (410,162) $ 29,539
NET LOSS $ (291,526) $ (93,673) $ (759,354) $ (56,793)
LOSS PER SHARE $ (0.007) $ (0.004) $ (0.017) $ (0.003)
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SECTION ROUGE MEDIA inc (TSX : SRO) recorded a 5% increase in gross sales for its second quarter of 2007, which ended June 30th. However, the Company continues to post a loss mainly due to its cinema division, of which the Company has taken steps to divest itself.
The Company's gross sales rose to $882,450, in comparison to $837,316 reported for the same period in 2006. In spite of this performance and a rigid control of expenses, the Company recorded a net loss of $291,526 as compared to a $93,673 loss reported last year. Thus, the net loss per share is $0.007. The Company's gross profit improved, from 41% in 2006 to 46% in the second quarter of this year.
The increase in sales is ascribable solely to its publications division, which was the only division to generate revenues. The deficit in the publications division decreased from $93,673 in 2006 to $85,382 for the same period in 2007. Meanwhile, due to the addition of the cinema division during the summer of 2006, the Company's operating costs increased by 81%. For the second quarter of the year, the administration expenses of the cinema division were $144,974.
"Our Company has no long-term debt and we undertook on June 14th to sell our cinema division (Image in Media) which has lagged in producing results. This transaction should be approved on August 31", stated Mr. Richard Desmarais, President and Chairman of the Board. He further reflected that the contemplated acquisition, by reverse take-over, of Evolutra Corporation, a company specialized in internet production and diffusion, will contribute significantly to the Company's revival.
The growth stock exchange TSX has neither approved nor disapproved the
contents of this communique.
%SEDAR: 00008697EF