You will be redirected back to your article in seconds

Atlantis awash on earnings rewrite

Three year's worth of pre-tax coin to shrink by $47 mil

TORONTO — Alliance Atlantis is busily shoring up its public image after it announced a restatement of earnings and an analyst issued a critical corporate governance report.

On Wednesday the company announced that it would change the way it treats its interest in successful franchise “CSI” on the books and restate its earnings for the last three years.

The company’s share price, which has been in the doldrums for close to five years, had climbed a hefty 70% due to sales of “CSI,” which it co-produces with CBS. Shares have risen C$8 ($5.96) to about $14.89 since April.

“It’s very arcane,” AAC prexy and CEO Michael MacMillan told Daily Variety of the accounting changes.

Alliance Atlantis will have to rewrite the books, which doesn’t look good. Pre-tax earnings for the past three years will shrink by $47 million and increase in the future.

“It’s obviously awkward to be restating earnings or changing any kind of accounting,” he said, “but the good news is, there’s a hell of a lot of earnings, and they’re bigger than they would have been.”

Just a week earlier, a report from Montreal-based Desjardins Securities ranked Alliance Atlantis last in a study of the governance practices of 10 companies in the Canadian media sector. AAC was dinged for having a combined prexy and CEO, and the study claims that more than half of the company’s directors are not independent.

Not so, acccording to a swift reply delivered in the form of a letter to the editor in the Globe & Mail from AAC chief financial officer Judson Martin. “The Desjardins report contains a factual inaccuracy and an error of omission, as well as one area where the analyst’s interpretation does not align with regulations,” wrote Martin.

“The whole study was ridiculous,” said MacMillan, reiterating the report’s shortcomings and pointing out a raft of changes the company has made in the last year to tighten its corporate governance practices, including reducing the size of the board and expensing stock options.

More Scene

  • Don Cheadle and Andrew Rannells Black

    Don Cheadle, Andrew Rannells Talk Snorting 'Coke' on 'Black Monday'

    “Black Monday” show creators David Caspe and Jordan Cahen divulged an intriguing detail to come later in the first season of the new Showtime comedy at its world premiere, held at the Theatre at Ace Hotel on Monday night in Los Angeles. “The fourth or fifth episode opens with a sexual harassment seminar, which very well [...]

  • Alfonso Cuaron attends the 44th Annual

    Alfonso Cuarón to LAFCA: 'Thanks to Your Help We Can Break Down Walls'

    Inclusion was the big winner at the L.A. Film Critics Association Awards, which was held Saturday night at the InterContinental in Century City. “This year’s winners are the most diverse in LAFCA’s 43-year history,” announced its president, Claudia Puig, adding that 14 out of their 18 awards were won by women and people of color. [...]

  • Mandatory Credit: Photo by Max Malandrino/REX/Shutterstock

    Hollywood Power Players Assemble to Save Iconic Deli Nate 'n Al

    A group of Hollywood executives and celebrities have banded together with the intent to save Beverly Hills deli and star haunt Nate ‘n Al, a stone’s throw from tourist destination Rodeo Drive. A consortium of investors including music kingpin Irving Azoff and wife Shelli, Universal Filmed Entertainment Group chairman Jeff Shell, and Rande Gerber and [...]

  • Charlie Collier, FOX Chief Executive Officer

    'The Passage' Team Talks Diversifying Races, Genders and Ages of Book Characters

    “The Passage” star Saniyya Sidney was unaware that the book version of her character was originally white until her father, a fan of Justin Cronin’s apocalyptic trilogy, informed her during the audition process. “I was like, ‘Oh, she is?'” Sidney told Variety at Thursday’s series premiere in Santa Monica, Calif. “And when I got it, [...]

  • KiKi Layne and Stephan James'If Beale

    Regina King Praised by 'If Beale Street Could Talk' Co-Stars for New 50/50 Initiative

    Two days had passed since Kiki Layne and Stephan James had attended their first Golden Globes and the “If Beale Street Could Talk” co-stars were still trying to wrap their heads around having been there. “It was such a special night — and pretty unreal,” says James, who was also nominated for his work opposite Julia Roberts [...]

  • Steven Van Zandt, Edie Falco, Tony

    'The Sopranos' 20th Anniversary Reunion: Cast, Producers Remember James Gandolfini

    Jan. 9’s 20th anniversary reunion of the cast and producers of HBO’s “The Sopranos” was a raucous family gathering from its first moments. “I saw a picture of myself in the newspaper,” series creator David Chase said at the start of the event. “And I thought, 20 years. Jesus Christ.” “People come up to me,” [...]

More From Our Brands

Access exclusive content