Canada's Alliance Atlantis recorded improved year-end results, ending a bad run for the company with net earnings of $31m (C$47.3m), a 35% increase over the previous fiscal year.

In January, the company reduced its LA office, cutting 80 staff and paring down distribution and marketing operations. A further 35 positions were cut in the company's broadcast arm.

The distribution group notched up its best-ever year, driven by the first instalment of The Lord Of The Rings trilogy. Its $34m made it the highest grossing film in Canadian history after Titanic.

AAC CEO Michael Macmillan said the group's EBITDA was up an "exceptional" 78% compared to the previous year.

Among the theatrical releases slated for the next fiscal year are: Austin Powers In Goldmember, Spy Kids 2, The Two Towers and Martin Scorsese's Gangs Of New York.