Montreal: In line with its stated strategy of developing its core production and international licensing slate, Behaviour Communications has announced the formation of a new production division, XL Productions, headed by industry veteran Kevin Jones.

Behaviour says the new company will produce ‘bigger-budget films to meet the needs of the marketplace as the majors scale back and look more and more to independent partners to fill their pipeline.’

The company says xl will produce ‘mainstream, studio-level films,’ with Jones charged with managing the creative development, production and post-production of all future projects, including film projects previously held under the Behaviour Worldwide banner.

Behaviour earlier announced bw had licensed or would exec produce the recently shot Love & Sex, starring Famke Janssen and Jon Favreau; The Black Dahlia, to be directed by David Fincher and based on the James Ellroy novel; The Extremists, with Montreal-based Christian Duguay slated to direct; and Pegasus Option, with Peter Hyams slated to helm.

Jones has worked on various u.s. studio projects with both Columbia and Paramount and most recently produced the Bruce Paltrow-directed film Duets, starring Gwyneth Paltrow and Maria Bello. His production and development filmography includes Forrest Gump, Another 48 Hours, The Hunt for Red October and Coming to America.

Behaviour (bhv.a/tse) recorded a net loss of $16.9 million, including an estimated $10.8-million loss resulting from the cost of divestitures in distribution ($5.8 million) and new media ($5 million) on continuing operations revenues of $1.1 million and discontinued operations revenues of $5.2 million for the three-month period ended June 30.

As part of the divestiture, Behaviour has sold a wholly owned subsidiary to its major shareholder BHVR Communications. bhvr picks up approximately $34 million of unused capital losses at a price of close to $3.3 million, recorded against the losses from discontinued operations.

The company did not deliver any movies in the quarter. Nine-month revenues stand at $42.8 million compared to $51.7 million for the same period a year ago.

Leo Rice-Barker