Montreal: Motion International president and ceo Guy Crevier says the company is on the lookout for an acquisition, likely in a sector complementing its three existing production divisions. At Motion’s Dec. 9 agm, Crevier noted that with the exception of the late ’98 Alliance Atlantis merger, the production sector in Canada remains largely unconsolidated. He says there as many as 500 producers active across the country.

Motion also announced a $10.6-million investment in Lovin’ Heart, a new 52-episode animation series, and confirmation of a multimillion-dollar production credit facility.

At the agm, Crevier told shareholders Motion will continue to diversify and expand rights retention. He says projected international sales will make up 35% of sales in fiscal 2000, compared to 29% this year.

Motion also reported revenues are up 20% and net profit is up 18% for the first quarter in fiscal 2000.

The company had $37.5 million in revenues in the period ending Oct. 31. Net profits were $744,635 or $0.03 a share, compared with $629,823 or $0.03 a share last year. Gross margins declined to 17.46% from 21.11%, and ebitda rose to $2.8 million.

Motion had profits of $2.6 million in ’99 on revenues of $125.7 million. Top-line projection for fiscal 2000 is $145 million.

Lovin’ Heart

On the new project front, Motion and 3D puzzle-maker Wrebbit have announced a deal to develop and internationally market the Lovin’ Heart/Brin d’Amour concept, a line of stuffed space babies and a 52 x 12-minute animated tv series.

The two Montreal-based companies are investing $15 million in the project, including $10.6 million in the extended tv series.

TF1 International is on board to distribute in Europe, and its subsidiary Protecrea is also part of the start-up. In addition to the television series, the Lovin’ Heart concept will see the creation of dolls, an innovative Internet site and other spin-off products.

Crevier says the property meshes with Motion’s strategic orientation towards ‘a franchise-based system where we can keep the international television rights.’

Andre A. Belanger, president of Motion’s animation and youth division, will exec produce the tv series. Michele Tougas is responsible for script development and direction.

Motion further announced it has obtained $75 million of bank financing in the form of revolving credit facilities. The syndicate of banks includes the National Bank of Canada (acting as the agent bank), the Toronto-Dominion Bank and the Caisse Centrale Desjardins. The loan is for a three-year period, which may be extended for one year.

Q1 summary

First-quarter 2000 divisional highlights include:

* The youth and animation unit generated $4.8 million in revenues, up $2.5 million over last year’s first quarter. Nearly $2.3 million comes from youth programs (Les Debrouillards, Dans une Galaxie pres de chez vous, Hello Mrs. Cherrywinkle, Popular Mechanics for Kids, Yaa! To the Max) and $2.5 million from six animation series, including Xcalibur, Marsupilami and Fly Tales.

* Sales for the international drama unit are $9.6 million, down $2.4 million from the same period last year. Revenues mainly come from the tv movie The Courage to Love, the Little Men series, and the startup of Largo Winch.

* Sales for Motion’s Canadian content unit were $12.5 million in the first quarter, up $3.4 million over last year. Production highlights includes Dr. Lucille, La fin du Monde est a 7 heures, the teleroman Sous le signe du lion ii, Flash and the legit production Notre-Dame de Paris.

* Distribution unit revenues grew to $10.6 million, an increase of $2.7 million over last year. Of the total, $2.9 million comes from international sales, $3 million from Canadian television and $3.2 million from kids merchandising.