Image Turns Third Quarter Profit15 Feb, 2011 By: Erik Gruenwedel
Strong catalog and Blu-ray Disc sales contributed to Image Entertainment Feb. 15 reporting third-quarter (ended Dec. 31) net income of nearly $1.4 million, compared with a loss of $2 million during the previous-year period.
Chatsworth, Calif.-based Image has seen a complete reorganization since being acquired more than a year ago by San Francisco-based investment company JH Holdings and hiring new CEO Ted Green.
Sales of Blu-ray titles increased 85% to $5.7 million, compared with $3.1 million last year. DVD sales declined 3.7%, to $19 million from $19.7 million. Notably, digital distribution revenue fell 14.2%, to $1.1 million from $1.3 million in the same period a year ago.
Total revenue increased 10%, to $27.6 million from $25.1 million during the same period a year ago due to stronger catalog performance and the inclusion of results for Madacy Home Video. Revenue was partially offset by a weaker new release schedule as compared with the same period a year ago.
Best-selling DVD releases for the quarter included 16 Wishes, Night of the Hunter, Paths of Glory and "Tapout: The Complete Series."
“The inclusion of Madacy’s library as well as a very strong performance of Image catalog product afforded us an increase in revenues for this quarter,” Green said in a statement.
COO and CFO John Avagliano said gross margins increased 6.9%, while selling expenses declined nearly 10%. General and administrative costs fell nearly 7%, primarily due to reduced personnel costs.
“As a result of our numerous initiatives, we achieved a pre-tax income of $2.3 million, compared to a pre-tax loss of $2 million in the same quarter last year,” Avagliano said.