No mention of FirstLaw initiative. Anyone have any info on this or when share consolidation takes place??
Net income for the quarter was $215,959 and $0.01 per share as
compared to a net loss of $467,106 and $0.02 per share in 1997. Revenues
for the second quarter of 1998 were $1,346,354, up 26% or $274,105 over
1997. For the year the net loss was $173,695 and $0.01 per share as
compared to a net loss of $251,813 and $0.01 per share in 1997. Year to
date revenues were $2,236,929 compared to $2,610,381 in 1997.
The second quarter revenue increase was attributable to our core audio
business strategies. The new packaging and graphic presentation combined
with a more focused publishing program and our alliance with Harlequin have
increased our presence in the US bookstore marketplace. Bookstore sales
were 78% ahead of 1997 by the end of June. Our focus on reducing returns is
starting to show results. Both the rate of return and absolute amounts
returned have shown reductions. Offsetting this progress was the decrease
in government grants of $36,000 in the second quarter and $151,000 year to
date. Animazing Entertainment continued to show promise. Sales of
international broadcast rights exceeded $100,000 in the second quarter.
Significant merchandise sales will be driven by television exposure. From a
revenue perspective, this was the best second quarter since 1994.
Operating costs decreased by 14% or $140,230 in the second quarter and
by $15,802 year to date. At Animazing operating costs of $283,561 incurred
while no costs were incurred in the second quarter of 1997. Year to date
Animazing operating costs were $524,304. Operating costs decreased at DH
Audio by $309,798 in the second quarter and by $540,106 year to date. The
second quarter 1997 expenses include $120,000 of one time charges relating
to the Algonquin Mercantile takeover.
During the second quarter of 1998 we continued to appeal the proposed
reassessment of our US income tax returns by the I.R.S.. We have
successfully appealed this reassessment saving $356,000 US.
For the past year our activity has focused on turnaround issues - our
publishing program, Durkin Hayes perception in the marketplace, an emphasis
on marketing and stringent cost control. We are now at the stage where
action will focus on returning the core business to growth. Further
publishing partnerships, similar to our Bloomberg Press association, will
be sought in order to expand our market reach. During the third
quarter we anticipate an acquisition as well as completion of our share
consolidation previously approved by the shareholders.
Consolidated Statement of Operations
3 months ended June 30 6 months ended June 30
1998 1997 1998 1997
Revenues $1,346,354 $1,072,249 $2,236,929 $2,610,381
Cost of Sales 480,087 325,860 768,043 663,512
Gross Margin 866,267 746,389 1,468,886 1,946,869
Operating Expenses 881,705 1,027,935 1,892,870 1,908,672
Operations (15,438) (281,546) (423,984) 38,197
Amortization 120,360 105,456 218,513 209,906
Minority Interest (96,360) 0 (213,405) 0
Pre-tax Income (39,438) (387,002) (429,092) (171,709)
Income Tax (255,397) 80,104 (255,397) 80,104
for the Period $215,959 ($467,106) ($173,695) ($251,813)
Earnings per Share $0.01 ($0.02) ($0.01) ($0.01)
Consolidated Balance Sheet as at June 30
Cash $175,366 $1,996,743
Accounts Receivable 2,432,876 3,153,112
Inventory 2,573,971 1,319,409
Prepaids 1,054,277 906,752
Long Term Assets 4,116,159 1,213,931
Total Assets $10,352,649 $8,589,947
Liabilities & Equity
Accounts Payable and
Accrued Liabilities $1,505,274 $776,630
Bank Indebtedness 0 0
Long Term Liabilities 348,833 458,000
Minority Interest 0 0
Capital Stock 9,098,745 7,393,124
Retained Earnings (758,975) 97,742
Current Earnings (173,695) (251,813)
Translation Account 332,467 116,264
Total Liabilities & Equity $10,352,649 $8,589,947
Consolidated Changes in Financial Position
as at June 30
Net Income(Loss) for the period ($173,695) ($251,813)
Add non cash expenses:
Depreciation and Amortization 218,513 209,906
Changes in Working Capital: (319,384) (401,191)
Cash from Operations (274,566) (443,098)
Issue of New Shares 0 0
Total Funds Generated (274,566) (443,098)
Minority Interest (207,562) 0
Long Term Liabilities & Assets (67,067) 0
Production Masters (269,862) (136,245)
Other 8,735 (14,458)
Total Investing Activity (261,127) (150,703)
Increase\(Decrease) in Cash (810,322) (593,801)
Cash, Beginning of Period 985,688 2,590,544
Cash, End of Period $175,366 $1,996,743
Donald Matheson, President & CEO of Durkin Hayes Publishing Ltd.
announced the Company has earned $0.01 per share, or $216,000 for the
quarter ending June 30, 1998 on the best second quarter revenues in four
(4) years. Revenues were up 26% to $1.35 million for the quarter as
compared to last year at $1.07 million. Durkin Hayes is in the process of
consolidating its shares on a seven for one basis and currently has
23,880,516 shares outstanding. The above results are unaudited.
For the six months ended June 30 Durkin Hayes reduced its loss to
$174,000, an improvement of 31% over the 1997 loss of $252,000. Revenues
were $2.24 million for the six months, compared to last years revenue of
$2.61 million. The Company launched new marketing initiatives in March 1998
which included new packaging, graphics and a strategic alliance with
Harlequin Enterprises. These initiatives have landed 3 recent releases on
the Barnes and Noble best selling audio list. The Company announced earlier
an alliance with Bloomberg Press to publish Bloomberg's Personal Bookshelf
series of highly regarded financial self help titles in audio.
Durkin Hayes, long known as an audiobook publisher, will change it's
corporate name coincident with the share consolidation. Donald Matheson
states, "We have applied state of the art marketing strategies to the core
audio business including branding our operating business and product as DH
Audio. Our new corporate name will reflect our vision as marketers of
intellectual property, or content, as its called. With the wave of delivery
mediums for product we believe controlling content is the key. Our new
name, which will be announced soon, will reflect our vision".
TEL: (905) 639-6552 (ext. 226) D. L. Matheson President & CEO
FAX: (905) 639-9007
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Companies or Securities discussed in this article:
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