Cinram Has Smooth First Quarter6 May, 2006 By: Jessica Wolf
Canadian replicator Cinram is sliding into the high-def era of media manufacturing fairly smoothly.
The company recorded its first HD DVD revenue — $66,000 in the first quarter of 2006. DVD revenue, which made up 50% of company revenue for the quarter, clocked in at $225.5 million, up slightly over last year's $224.2 million. The increase came mostly from higher unit-production volumes, which were balanced out by lower selling prices, according to the company.
Overall, Cinram reported a small decrease in net earnings for the quarter — about 5% — from $4.1 million last year to $3.9 million. Earnings per share remained at $0.07 for both first-quarter 2005 and 2006.
Consolidated revenue was down too (1.3%), to $447.8 million from last year's $453.8 million.
Earnings before interest, taxes and amortization (EBITA) were down about 5% as well, from $74.3 million last year.
The dips can mostly be attributed to one-time transactional charges the company counted in the first quarter owing to its shift to become an income trust, as well as facility restructuring at plants in California and Louviers, France.
“If the one-time transaction costs and charges were excluded, Cinram's EBITA would have been ahead of those recorded for the same quarter last year,” said CEO Isidore Philosophe. “We believe that Cinram's solid cash flows for the first quarter will provide a good start for our new income trust structure.”