In this report we take a look at the activities and game plans of Canada’s public production companies.

In this report:

Alliance p. 40

Atlantis p. 42

Cinar p. 39

Coscient p. 40

Devine p. 42

Greenlight p. 43

Keystone p. 43

Malofilm p. 37

Nelvana p. 38

Paragon p. 40

Paragon Entertainment’s production slate, which accounts (with licence fees) for 60% of its third-quarter revenues of $28.5 million, has been focused on feature films, animation family entertainment and off-network mows since the summer of 1995.

By last September, the company’s u.s. president, Gary Randall, had departed his l.a. position and ceo Jon Slan had moved from his l.a. office and back to Toronto.

The l.a. department is nonetheless still in business, with Ken Katsumoto, vp family entertainment and Ken DuBow, vp of tv sales holding the fort. Joey Plager, vp movies and miniseries, resigned this month and will be replaced, says a Paragon spokesperson. Also in company departures, Isme Bennie, longtime president of Paragon International, left the company in September and was replaced by her protege Kirstine Layfield. In January of this year, Stewart Davidson joined Paragon as the new cfo.

In mid-February of this year, the board approved a $4-million convertible debenture issue. The proceeds will help to finance Paragon productions, including children’s animation product, and expand distribution in the u.s. syndication market.

For the third quarter (ending Dec. 31) the company shows revenues were up over the same period last fiscal year by $3.2 million and licence fees were up $1.5 million over the previous third quarter to $17 million. Earnings for the period were $234,000, up $100,000 from the nine-months period in fiscal 1995.

Distribution and other production revenues showed an increase of $1.4 million in revenues to $7.6 million, largely attributed to library product sales following the 1994 us$8.5 million purchase of the British feature film company, HandMade Films. Also with HandMade, two features, the $5-million Sweet Angel Mine and Intimate Relations, were shot in 1995 and Paragon and HandMade are currently in development on two new films, The Wrong Guy and Yanqui Dollar. As part of its feature business, Paragon is also doing a movie with Disney but was unable to release the title at press time.

With the 1995 50% purchase of Ottawa-based animation house Lacewood Films, the company has made an aggressive foray into the animation market with a heavy slate underway that includes three series: Flash Gordon, Savage Dragon and Legends of the Land, as well as a feature, Romeo and Juliet.

In its third quarter, revenues were broken down as follows: 60% from production licence fees, 19% tv and video distribution sales, 9% tax shelter which was down in the third quarter from $3.6 million in net fees for the prior period to $2.6 million, 7% from theatrical distribution and 5% from royalties and merchandising. In the third quarter, merchandising revenues were down from the pbs/ytv series Lamb Chop’s Play-Along but Paragon anticipates merchandising will be up in 1996 with the launch of its new 50-episode series for pbs and tvo, Kratt’s Creatures. The series is currently in post-production.

Last year the company also produced tv movie Kissinger and Nixon for Turner in the u.s. and tmn in Canada, completed Lives of Girls and Women for cbc and made Frequent Flyer for abc.

For fiscal 1995, ending March 31, the company’s year-end showed revenues of $40 million, profits of $150,000 and earnings per share of $0.01. At the time, Wood Gundy vp Roger Dent commented that Paragon was a disappointment to shareholders, adding ‘I think investors would like to see more momentum in the production area.’

Slan said the year-end figures were in keeping with projections made in 1994. With the third-quarter results issued earlier this month, Slan said in a statement to shareholders: ‘Paragon continues to make steady, strategic and assured progress toward its goals.’ PC