Recession Still Impacting Image Profits

A weaker feature film release schedule and a continuation of less consumer spending contributed to Image Entertainment Inc. posting a net loss for the first quarter. The Chatsworth-based distributor of home entertainment programming has had a difficult year what with another failed merger coupled with the recession. Still, company executives are optimistic for a turnaround in the second half through titles such as “Management” with Jennifer Aniston and Steve Zahn and a DVD from Las Vegas ventriloquist Terry Fator, a winner of “America’s Got Talent.” “While this last year has certainly tested us, we have been aggressively implementing a strategic plan, including cost-cutting measures, expanding our feature film initiative and working with our investment banking firm to explore strategic alternatives for the company,” said President and CFO Jeff Framer. For the first quarter ending June 30, Image reported a net loss of $3 million, or $0.14 per diluted share, on revenues of $23.7 million. For the same period in 2008, the company had net income of $1.7 million, or $0.08 per diluted share, on revenues of $32.6 million. Revenues for domestic DVD, Blu-ray and digital distribution were down in the first quarter while broadcast revenue was up to $1.4 million from the $165,000 from a year earlier. Image attributes the increase to more viewers of video-on-demand, basic cable and pay television.