Adding TeleCine, expanding DVD cuts profits
Post-production house Todd-AO Corp. said the acquisition of TeleCine Cell Group and the expansion of its DVD operations helped increase second quarter revenues by 26% but cut profits to $897,000.The Los Angeles-based company reported revenues for the period ended Feb. 28 rose to $28.4 million from $22.6 million a year ago. Earnings before interest, taxes, depreciation and amortization ended up 11% from the year-earlier period to $5 million, from $4.5 million. Operating results from the company’s newest subsidiaries, TeleCine and Todd-AO Video Services DVD, which produced the DVD releases of “Armageddon,” “The Rock” and “Starship Troopers,” contributed to these increases. But capital spending for the operations and the acquisition of TeleCine Cell Group resulted in profits dipping to $897,000. Additionally, the company said profits for the six-month period ended Feb. 28 increased 8.9% to $3.4 million. Revenues for the period rose 31% to $62.3 mil-lion from $47.6 million in the year-earlier period. Earnings, before interest, taxes, depreciation and amortization increased 29% to $13 million from $10.1 million.