Cinram Stumbles in Q214 Aug, 2006 By: Jessica Wolf
Replicator Cinram stumbled in the second quarter as the company transitioned to its new status as an Income Fund.
Profits and revenue took a dive in the wake of $15.8 million in unusual costs during the quarter related to Cinram's conversion to an income trust.
Cinram reported a net loss of the quarter of $18.6 million, compared to net earnings of $4.6 million for the prior year. Year-to-date the company has recorded a net loss of $14.7 million, compared to $8.7 million in net earnings for at the half-year point of 2005.
Revenue stood at $398.9 million for the quarter, down 11% from 2005's $449.6 million Q2.
Company CEO Dave Rubenstein didn't blame the DVD market, even as he noted the second quarter seasonal downturn “lackluster release schedule” that could carry through to the third quarter.
“This however, should not be construed as a downturn in the DVD marketplace, and our business performance should be viewed on an annual basis,” he said.