MDIF posts lower earnings for 2nd quarter

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TORONTO -- Just two days before its acquisition by Goldman Sachs & Co., Canadian distributor Movie Distribution Income Fund on Monday posted lower second-quarter earnings on lower theatrical and TV revenue and higher P&A costs.

Toronto-based Movie Distribution, which holds a 49% stake in Motion Picture Distribution LLP, Canada's largest indie movie distributor, posted earnings of CAN$900,000 ($857,000) for the three months ending June 30, compared with earnings of CAN$3.1 million in the year-ago period.

Second-quarter revenue came to CAN$87.4 million ($83.4 million), just up from a year-earlier CAN$84.9 million. Canadian theatrical revenue fell 4% to CAN$53.6 million ($51 million), and a stronger DVD slate helped offset lower Canadian library TV sales.

In early August, shareholders in the Movie Distribution Income Fund voted to sell their 49% stake in Motion Picture Distribution LLP to Goldman Sachs and Canadian partner EdgeStone Capital Partners for $10 per unit.

That deal, which values the income fund at $193 million, is expected to be completed Wednesday.

On Wednesday, Goldman Sachs and EdgeStone are expected to take possession of the controlling 51% stake in Motion Picture Distribution, acquired in January from Canadian broadcaster Alliance Atlantis Communications.
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