MONTREAL — Behaviour Communications had a small increase in revenue and a net loss during its second quarter, it was reported Thursday by the Montreal-based entertainment company.
Behaviour also announced the official closing of its recent deal to acquire MDP Worldwide (Daily Variety, March 27, 1998), with some changes to the terms of the agreement in order to access certain tax benefits.
MDP CEO Mark Damon, who is also MDP’s majority shareholder, and other shareholders will now receive $5.9 million in cash, up from $5 million in the original deal, along with a package of class-B shares and a $3.5 million note convertible into class-B shares. The overall deal is now worth $20.6 million, compared to $19.3 million in the initial announcement.
The MDP takeover is effective March 26, 1998 and is reflected in Behaviour’s second-quarter balance-sheet. In addition, a restructuring charge of $1 million has been reported in the second-quarter to reflect the future costs of integrating the operations of Behaviour’s two Los Angeles film units, MDP Worldwide and Image Organization.
The company’s revenues for the quarter ended March 31 were $15.3 million, up slightly from $14.1 million in the same period last year. Behaviour reported a net loss of $1.4 million or $0.05 per share, compared to a loss of $16.2 million or $1.60 per share for the second quarter last year. The losses included the $1 million one-time charge related to the MDP acquisition.
The upswing in revenue was primarily due to increases in revenue from production and the interactive decision. Filmline Intl., wholly owned by Behaviour, accounted for most of the production gains, delivering three new episodes of the “Highlander VI” series and two features, “Noose” with Denis Leary and the Aidan Quinn starrer “This Is My Father.”
Distribution revenues were down substantially to $2.1 million, compared to $4.7 million last year. The dip reflects Behaviour’s relative inactivity in terms of new releases theatrically.
Behaviour chairman Richard Szalwinski is a big booster of new media products, but the company’s new media division posted a loss of $420,000.