You will be redirected back to your article in seconds

Nelvana scores success

Company sees a record 75% earnings increase

Multifaceted entertainment company Nelvana reported Tuesday a record increase of 75% in net earnings for the year, as well as a fourth-quarter jump of 34%.

Total revenues for the year ended Dec. 31, 1998, jumped to C$75.1 million ($49.2 million), a 34% increase from $36.8 million in 1997. Net earnings for the year were $5.6 million or 79¢ per share, up from $3.2 million or 56¢ a share the previous year, with a net margin of 12%, compared with 9% last year. For the fourth quarter, the company reported net earnings of $2.8 million or 39¢ per share, up from $2.1 million or 36¢ per share.

“The results are really spectacular, in line with analysts’ expectations,” said Adam Shine, a research analyst at CIBC Wood Gundy in Montreal.

“1998 was really a year of quite a few successful endeavors,” said the company’s co-CEO, Michael Hirsh. “It was our best year ever, a golden year.” The biggest push to help the Toronto-based animated TV and film company, according to Hirsh, was a strategic decision made 18 months ago to eliminate all third-party service work and to shift to an exclusively proprietary production slate that provided higher margins and enlarged Nelvana’s library.

Series spur success

Nelvana produced and delivered 14 series and completed production on the balance of three more that were started in 1997. Proprietary production deliveries increased by 61% to 187 half-hour episodes from 116 in 1997, and library sales increased 35% to $14.4 million, up from $10.7 million in the prior year.

“We had a terrific number of rating successes in ’98,” said Hirsh, “rating winners like ‘Bob and Margaret,’ ‘Rolie Polie Olie,’ ‘Franklin’ and ‘Little Bear.’ ”

The company also made several major sales, including six series for CBS Television, and saw the addition of $2.8 million in revenue from publishing opera-tions since the acquisition of Kids Can Press in August.

“1999 is shaping up to be a record production year,” said co-CEO Patrick Loubert in a prepared statement. “We have 10 confirmed series renewals and seven new shows which are already in production.”

Shine, who has given the stock a “strong buy,” agreed. “I think as the Nelvana story unfolds in terms of its heightened growth profile, its track record and its inherent appeal, I think you’ve got a pretty solid story going forward.”

More Biz

  • WGA Agency Packaging Fight Placeholder Writer

    Writers Guild Agrees to Resume Meetings With Talent Agencies

    The Writers Guild of America has agreed to resume negotiations with Hollywood’s talent agents, six weeks after talks between the two sides cratered. WGA West President David A. Goodman announced Wednesday night that the WGA had approved a proposal by UTA co-president Jay Sures to get back to the bargaining table. Sures had made the [...]

  • Contract Placeholder Business WGA ATA Agent

    Agencies Offer to Restart Talks With WGA to End Packaging Fee Standoff

    Hollywood’s largest talent agencies have offered to restart negotiations with the WGA to end the standoff over the guild’s effort to impose new rules on talent agents. In a letter to WGA West president David Goodman sent Wednesday, UTA co-president Jay Sures extended an olive branch and suggested resuming talks next week. UTA later sent [...]

  • Woodstock 50 Files Appeal Seeking Return

    Woodstock 50 Files Appeal Seeking Return of $18 Million From Former Financial Partner

    In the latest round of the ongoing legal battle between the organizers of Woodstock 50 and their erstwhile partners Dentsu Aegis, attorney Marc Kasowitz announced that the festival has filed an appeal for Dentsu to return some $18.5 million the financial giant withdrew from the organizers’ bank account. That money has been a point of [...]

  • Spider-Man Homecoming

    Film and TV Productions Are Using Drones for Scouting Locations, Lighting and More

    Since a ruling by the Federal Aviation Administration in 2014 that cleared the use of drones in film and TV production, the acquisition of footage by these unmanned flying machines has become de rigueur for aerial shooting in cases when cranes or aircraft are impractical or unsafe.  As such, drones have been greeted enthusiastically not [...]

  • White House Communications Director Hope Hicks,

    House Judiciary Committee Issues Subpoena for Fox Spokeswoman Hope Hicks

    The House Judiciary Committee has issued a subpoena for Hope Hicks, the Fox Corporation communications chief who previously worked as the communications director in President Donald Trump’s White House. The call for Hicks to appear before the committee was issued Tuesday. Hicks could not be reached for immediate comment on the matter. Hicks was in [...]

  • Stephanie Dalton City National Bank

    Why City National Handles Financing for Half the Shows on Broadway

    Seen a Broadway show lately? If the answer is yes, then there’s a pretty good chance that Stephanie Dalton and her team at City National Bank have played a role in the financial life of the production. That can mean anything from managing the cash that a show takes in at the box office to [...]

  • Broadway Theater Placeholder

    The Great Green Way: Inside Broadway's Economic Boom

    Here’s an old Broadway story, probably apocryphal, but with the ring of truth: A worried producer checks in on his ticket sales to see how his show is doing. “We had a terrible night, boss,” the treasurer tells him. “We did one penny.” The producer sulks through Shubert Alley and runs into a rival. “How’s [...]

More From Our Brands

Access exclusive content