Alliance Atlantis Communications, reported a loss of $18.8 million in its fiscal year ended March 31, 2003. This compares to net earnings of $27.5 million the previous year. The loss is ‘due to higher than expected charges for amortization and interest,’ according to AAC’s year-end report.

The numbers came out in late June, a turbulent month for the company. After a study of governance practices conducted by Montreal’s Desjardins Securities ranked it last on a list of 10 Canadian media companies, AAC went on damage control, pointing out inaccuracies and omissions in the study. With that behind it, AAC can now focus on the positive and is reporting debt reduction of $73 million for fiscal ’03 (down from $613.6 million in ’02 to $540.2 million this year), which is a hurdle the company is constantly working toward clearing.

Consolidated revenue for the year was $889.6 million, down from $912.8 million in 2002. The EBITDA (not including developing channels’ operating losses, which amounted to $17 million) rose 7% to $165 million. Free cash flow for the year ended at almost $39 million.

For its fourth quarter, AAC reports revenues of $231 million, down slightly from the $243.2 reported in Q4 ’02. EBITDA for the quarter was up 50% at $52 million. Including operating losses suffered through AAC’s developing channels, the EBITDA is actually up 55% to $48.6 million over the same period last year.

Revenues for AAC’s Entertainment Group, despite the strength of its CSI franchise, dropped to $96.1 million in the last quarter from $134 million in the same ’02 period. CSI was solely responsible for 55% of 2003 revenues for the group.

AAC Motion Picture Distribution Group revenues rose to $85.1 million from $70.8 million for Q4 ’02, based on continuing revenues carried over from the Q3 release of Oscar winners Lord of the Rings: The Two Towers, Chicago, Gangs of New York and others.

For its Broadcast Group, AAC reports a Q4 revenue increase from its operating channels of 32% to $43.8 million from $33.1 million for the final quarter of ’02. Revenue from developing channels in the quarter was also up, to $5.6 million from $4.9 million. -www.allianceatlantis.com