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Rainmaker Entertainment Announces Fiscal 2012 and 4th Quarter 2012 Results

Mar 28 2013 12:00AM

Marketwire

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VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- Rainmaker Entertainment Inc. (TSX: RNK) announces that it has filed on SEDAR (www.sedar.com) its audited consolidated financial statements and related Management's Discussion and Analysis for the year ended December 31, 2012 as well as its 2012 Annual Information Form.

$thousands, except per share amounts Q4 2012 Q4 2011 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue 3,178 5,124 14,205 18,827Loss from operations (611) (2,689) (3,698) (2,845)Gain on sale and equity income from Base 10 - 4,468 - 5,719----------------------------------------------------------------------------Earnings (loss) from continuing operations (611) 1,779 (3,698) 2,874Gain on sale of discontinued operations 84 379 124 473----------------------------------------------------------------------------Earnings (loss) and total comprehensive income (527) 2,158 (3,574) 3,347Earnings from continuing operations per share - basic and diluted $ (0.03) $ 0.10 $ (0.21) $ 0.16Earnings (loss) per share - basic and diluted $ (0.03) $ 0.12 $ (0.20) $ 0.19--------------------------------------------------------------------------------------------------------------------------------------------------------



Rainmaker reported a loss of $3.6 million ($0.20 per share) for the year ended December 31, 2012 compared with earnings of $3.3 million ($0.19 per share) for 2011. For the fourth quarter ending December 31, 2012 the Company reported a loss of $0.5 million ($0.03 per share) compared with income of $2.1 million ($0.10 per share) for the fourth quarter of 2011. The fiscal 2011 earnings include a gain on sale and equity income from the Company's investment in Base 10 Group Inc. ("Base 10") totaling $5.7 million and the fourth quarter of 2011 results include $4.5 million related to Base 10.

Craig Graham, CEO and Chairman of the Board, commented, "It was a challenging year for Rainmaker. The failed sale transaction to Xing Xing effectively suspended the progress of our business and led to the departure of key members of our senior management team. With a new senior management team coming together at the end of 2012 and a successful delivery of our first theatrical animated feature film, Escape from Planet Earth, we will endeavor to increase the production output of the studio and become profitable."

Mr. Graham added, "There has been positive momentum with the announcement of our second feature-length animated feature film in January of 2013, however, there are still challenges ahead in order to become profitable."

As previously announced on February 28, 2013 the Company filed a short form prospectus relating to an offering of rights to subscribe for up to $5,828,392 principal amount of 8% unsecured convertible debentures due March 31, 2016 (the "Offering"). The conversion price of the convertible debentures will be $0.20 per common share. Under the terms of the Offering, one right is being granted for each common share held and for every 3,000 rights held, a holder of the rights can subscribe for $1,000 principal amount of convertible debentures. The rights will expire at 4:30 p.m. (Eastern time) on April 9, 2013 with closing of the offering expected to occur on or about April 11, 2013.

Forward-Looking Statements

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information" under applicable securities laws. These statements relate to future events or future performance and include, but are not limited to, statements regarding the timing of the Rights Offering. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions are often used to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific. In evaluating these statements, readers should specifically consider risks which may cause actual results to differ materially from any forward-looking statement. The forward-looking statements contained herein are based upon certain assumptions considered reasonable at the time they were prepared. Such assumptions include, but are not limited to, assumptions regarding: (i) general economic conditions, (ii) Rainmaker's future business prospects and opportunities, and (iii) Rainmaker's ability to complete any or all of its proposed production work. Should one or more of the risks or uncertainties identified herein materialize, or should the assumptions underlying the forward-looking statements prove to be incorrect, then actual results may vary materially from those described herein. In respect of Rainmaker's business generally, readers should also refer to Forward-looking Statements in the Management Discussion & Analysis for year ended December 31, 2012. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by applicable securities laws, Rainmaker does not assume any obligation to update the forward-looking statements contained herein.

About Rainmaker Entertainment

Rainmaker Entertainment Inc., a multifaceted animation studio, is one of Canada's largest producers of CG animation. Rainmaker's first feature film Escape from Planet Earth, distributed by The Weinstein Company, enjoyed its theatrical release on February 15, 2013. For more information, go to www.rainmaker.com.



Contacts:
Rainmaker Entertainment Inc.
Shawn Turkington
(604) 714-2600
(604) 714-5990 (FAX)
investor@rainmaker.com
www.rainmaker.com





Source: Marketwire


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