<<
-------------------------------------------------------------------------
SUMMARY
MARCH 31, 2006 MARCH 31, 2005
3 months 3 months
Unaudited Unaudited
GROSS SALES $ 986,935 $ 953,699
OPERATING COSTS $ 511,626 $ 502,925
GAIN (LOSS) BEFORE TAXES $ 98,493 $ 84,408
NET GAIN (LOSS) $ 36,880 $ 28,817
NET GAIN (LOSS) PER SHARE $ 0.002 $ 0.001
-------------------------------------------------------------------------
>>
LONGUEUIL, May 30 /CNW Telbec/ - SECTION ROUGE MEDIA inc (TSX : SRO)
today published the financial results of its first quarter of 2006 and
announces that it has increased its profitability.
The gross sales of the Company increased from $953,699 for the first
quarter of 2005 (ended March 31, 2005) to $986,935 for the current quarter, an
increase of 3%. The Company realized a net profit of $36,880, as compared to
$28,817 for the same period in 2005. Section Rouge MDedia inc. thus posts a net
gain (before taxes, etc.) of $98,493, i.e., $0.002 per share.
The Company has successfully completed its reorganization program
implemented following the close of one of its periodicals in 2004 and the sale
of one of its publication divisions.
"We rapidly took the necessary steps to reposition the Company
financially and allow us to concentrate on the Company's development through
acquisition", stated the President and Chairman of the Board of Section Rouge
MDedia, Mr. Richard Desmarais.
On October 11, 2005, the Company announced that it would acquire all
issued and outstanding stock of Image In Media inc., a Montreal-based
enterprise acting as financial broker and executive producer in
cinematography. This acquisition will permit Section Rouge Media to establish
itself in international film trade, television and other new televisual
technologies. Furthermore, it will permit Section Rouge Media, through its
by-products, to strengthen its publishing operations.
The original transaction of October 2005 was modified on April 7, 2006 by
the partial elimination of certain assets, a decrease in the purchase price, a
reduction in the call for public financing, and a change in the issuing
broker. On May 25, the provisional prospectus setting forth the details of the
transaction and the financing thereof was filed with the governing
authorities, and can be viewed on Sedar.
This new project will secure public investment financing of between
$1,000,000 and $2,500,000. A portion of this amount will be designated to the
development of this new acquisition, and the balance of the funds will become
part of the Company's working capital for other eventual acquisition(s).
Section Rouge MDedia inc. is a Company registered with the growth stock
exchange (TSX) and publishes approximately thirty periodicals.
The above-mentioned information is a summary of certain elements of
financial information concerning the Company and must be read in conjunction
with the financial statements for the first quarter and the notes made a part
thereof, available on SEDAR.
The growth stock exchange TSX has neither approved nor disapproved the
contents of this communiquDe.
