A media and entertainment company generating revenue from content production and licensing with a volatile financial history marked by a sharp decline in recent years.
An investor might consider this stock if they believe the 2023 revenue drop was a cyclical anomaly and that the positive operating cash flow signals underlying business viability. The substantial financing cash inflows suggest potential capital raising efforts to fund turnaround initiatives or asset acquisitions.
The sharp decline in revenue coupled with a $10.6M net loss indicates severe operational distress and an inability to sustain previous growth trajectories. High accumulated liabilities and a retained earnings deficit raise concerns about the company's long-term solvency and ability to continue operations without further equity dilution.
Ilustrato Pictures International Inc. operates primarily in the media and entertainment sector, focusing on production, distribution, and licensing of visual content across international markets. The company leverages a portfolio of intellectual property to generate revenue through sales and licensing agreements while managing significant operational costs associated with content creation and administration.
The company experienced a dramatic deterioration in financial health, with revenue plummeting from $78.3M in 2022 to just $6.6M in 2023 and net income swinging from a $4.6M profit to a $10.6M loss. Despite generating positive operating cash flow of $1.5M, the company recorded a significant investing cash outflow of $5.8M while facing high tax expenses that further exacerbated the bottom-line decline.
The media and entertainment industry is characterized by rapid technological change, shifting consumer preferences toward streaming, and intense competition for intellectual property rights. Companies in this sector must constantly innovate content offerings while managing high upfront costs against fluctuating global economic conditions.
| Metric | 2022 | 2023 |
|---|---|---|
| Revenue | $78.3M | $6.6M |
| Cost of Revenue | $50.0M | $4.4M |
| Gross Profit | $28.4M | $2.1M |
| Operating Expenses | $30.4M | $7.9M |
| Operating Income | $-2.0M | $-5.8M |
| G&A | $13.7M | $2.1M |
| Depreciation | $242.1K | $101.2K |
| Other OpEx | $16.7M | $5.8M |
| Non-Operating Income | $0 | $0 |
| Pre-Tax Income | $-2.0M | $-5.8M |
| Income Tax | $-6.6M | $4.8M |
| Continuing Ops | $4.6M | $-10.6M |
| Discontinued Ops | $0 | $0 |
| Net Income | $4.6M | $-10.6M |
| Minority Interest | $0 | $0 |
| Net to Common | $4.6M | $-10.6M |
| Metric | 2022 | 2023 |
|---|---|---|
| Current Assets | $139.2M | $30.1M |
| Cash & Equivalents | $1.5M | $213.1K |
| Accounts Receivable | $60.7M | $22.8M |
| Inventory | $1.9M | $965.1K |
| Prepaid Expenses | $150.6K | $536.2K |
| Other Current Assets | $75.0M | $5.6M |
| Long-Term Assets | $112.2M | $32.4M |
| PP&E (Net) | $21.0M | $139.5K |
| Goodwill | — | $8.6M |
| LT Investments | $4.7M | $6.5M |
| Other LT Assets | $86.5M | $17.1M |
| Total Assets | $251.4M | $62.5M |
| Current Liabilities | $155.0M | $18.7M |
| Current Leases | $836.4K | — |
| Other Current Liab | $152.9M | $18.5M |
| Long-Term Liabilities | $40.3M | $13.9M |
| LT Operating Leases | $13.7M | — |
| Other LT Liab | $26.6M | — |
| Total Liabilities | $195.3M | $32.6M |
| Shareholders' Equity | $56.1M | $30.0M |
| Paid-In Capital | $20.6M | $24.5M |
| Retained Earnings | $5.1M | $-100.3K |
| AOCI | $-20.7K | — |
| Total L&E | $251.4M | $62.5M |
| Metric | 2022 | 2023 |
|---|---|---|
| Net Income (CFO) | $4.6M | $-10.6M |
| Non-Cash Adjustments | $-36.7M | $1.5M |
| Working Capital Changes | $60.5M | $10.6M |
| Cash from Operations | $28.3M | $1.5M |
| Cash from Investing | $-57.7M | $-5.8M |
| Cash from Financing | $35.3M | $4.4M |
| FX Effect | $-4.6M | $0 |
| Net Change in Cash | $1.3M | $43.8K |
| Beginning Cash | $176.7K | $1.5M |
| Ending Cash | $1.5M | $213.1K |
Content Production and Development, Licensing and Distribution, and International Market Expansion services
Severe revenue contraction from 2022 to 2023 indicating potential market saturation or product failure, substantial net loss eroding shareholder equity, high income tax expense relative to profitability, and significant long-term liabilities impacting liquidity.
Access to proprietary intellectual property portfolios, established international distribution networks, and flexible asset-light operational structure allowing for rapid market pivots.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.