MONTREAL — A week after a major management restructuring, troubled Canuck film company Behaviour Communications reported a C$30.6 million ($21 million) loss for the past year and a $1.5 million loss for the first quarter of this year.
The big losses were due to poor results from continuing operations and pricey charges related to the sale of its main Canadian divisions.
On March 10, Los Angeles film executive Mark Damon took over as chairman and CEO of Behaviour, with Richard Szalwinski ankling as chairman and Bernard Legendre resigning as CEO.
Damon is also now the company’s controlling shareholder. Damon said Behaviour will improve now that the company has sold off its Canadian film distribution arm and its digital studio.
The net loss for the year ended Sept. 30, 1999 was $21 million, compared to a loss the previous year of $12.8 million.
Revenue from continuing operations was $30 million, down from $37 million a year earlier. The lion’s share of the revenues came from L.A.-based Behaviour Worldwide, which generated sales of $27 million. The company expects Behaviour Worldwide to provide almost all of the company’s revenues this coming year.
Administrative expenses were up because the operations of Behaviour Worldwide were only included for six months of 1998 vs. the full year for 1999.
Loss on the sale of discontinued operations for 1999 totaled $7.4 million, including a $5.3 million loss related to the sale of the company’s Canadian distribution company and a $3 million loss due to its sale of its digital studio.
Revenues for the first quarter ended Dec. 31, 1999 were $300,000, compared to $22 million in the same quarter last year. Net loss from continuing operations for the quarter were $1.5 million, compared to net earnings of $1.4 million in the first quarter a year earlier.