Source : Globe & Mail

Canadian Press

TORONTO — The Movie Distribution Income Fund is joining Alliance Atlantis Communications Inc. in putting their Motion Picture Distribution Limited Partnership up for sale.

Also Wednesday, the partnership reported a summer-quarter profit of $16.5-million, up from $14.5-million in the year-ago period, as revenue edged up to $123-million from $122.4-million.

Alliance Atlantis, a specialty broadcaster whose marquee property is the CSI TV-series franchise, said Oct. 20 it wanted to sell its 51 per cent stake in Motion Picture Distribution LP, a leading movie distributor in Canada with other operations in Britain and Spain.

The Movie Distribution Income Fund, holding the other 49 per cent, said Wednesday it has "determined to participate with Alliance Atlantis" in "a process that may result in a sale of some or all of its indirect interest in Motion Picture Distribution LP."

The decision "is guided solely by our desire to obtain the best available value for our unitholders should control of MPD be affected by this process," stated Rubin Osten, chair of a special committee of the fund.

Each side needs the approval of the other to sell its interest in the partnership, whose third-quarter results showed a seven per cent increase in revenue within Canada to $95.7-million, as Bon Cop Bad Cop "became the highest-grossing Canadian film ever made," the trust reported.

Revenue from the partnership's library, largely on high-margin sales to TV, was $33.7-million, up from $14.8-million a year ago.

Distributable cash for the quarter was calculated at $16.8-million or 42 cents per unit. This was down from year-ago distributable cash of $18.3-million or 46 cents per unit, with the decrease attributed primarily to increased interest expense.

Adjusted earnings before interest, taxes, depreciation and amortization were flat at $20.2-million, but net earnings per unit came to 33 cents, up from 31 cents a year ago.

Distributions for the quarter were 29 cents per unit.

"Our Canadian operations delivered very strong results this quarter due to theatrical successes such as Bon Cop Bad Cop, a solid DVD slate, and exceptional television sales from our library," stated CEO John Bailey.

"In the United Kingdom we recorded solid revenue growth due to strong DVD sales. . . . Despite a higher volume of releases in Spain, results were disappointing. We remain committed to investing in the future of our Spanish operations."

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