Results reflect only 11 days of contribution from companies acquired under QA
TORONTO, May 15, 2017 /CNW/ - Kew Media Group Inc. ("Kew Media" or the "Company") (TSX:KEW and KEW.WT) today released its financial results for the three months ended March 31, 2017. The Company noted that the results include the operations of the companies acquired pursuant to its recently completed qualifying acquisition ("QA") for only the final 11 days of the quarter and are therefore not indicative of the future results of the Company. The Company's unaudited condensed interim financial statements along with its management's discussion and analysis for the three months ended March 31, 2017 have been filed on SEDAR and may be viewed by investors under the Company's profile at www.sedar.com.
Kew Media, which was created as a special purpose acquisition company ("SPAC") to acquire assets and operations in the entertainment production and distribution business, completed the QA on March 20, 2017. Pursuant to the QA, Kew Media acquired all of the issued and outstanding shares of each of Content Media Corporation ("CMC"), Architect Films Inc., Bristow Global Media Inc., Frantic Films Corporation, Media Headquarters Film & Television Inc. and Our House Media Inc. for total consideration of approximately $120.3 million, including the assumption of $57.0 million of borrowings.
"Results to date in 2017 are consistent with the execution of the investment strategy outlined in our prospectus dated February 10, 2017, and we continue to expect 2017 Adjusted EBITDA1 of approximately $19.1 million," said Steven Silver, Chief Executive Officer of the Company.
Following completion of the QA, Kew Media continues to have a strong balance sheet. At March 31, 2017, the Company had approximately $32 million in cash, with $18.5 million of available borrowings and shareholders' equity of $90.9 million. Accordingly, the Company is well positioned to strategically add to its asset base and continues to assess a steady pipeline of acquisition opportunities.
Kew Media also noted that, pending completion of CMC's audit, CMC has met its EBITDA target and accordingly the full amount of the Content Media Corporation Escrowed Consideration is expected to be released during the second quarter of 2017.
Adjusted EBITDA is EBITDA excluding certain items to better analyze trends in performance. These adjustments result in a truer economic representation on a comparative basis. Adjusted EBITDA is calculated as EBITDA excluding transaction costs, realized loss on change in fair value of financial liabilities and the proportion of Adjusted EBITDA attributable to non-controlling interests. See "Non-IFRS Measures" and "Forward-Looking Statements" below in this press release.
This news release may include forward-looking statements. All such statements constitute forward looking information within the meaning of securities law and are made pursuant to the "safe harbour" provisions of applicable securities laws. Forward-looking statements may include, but are not limited to, statements about anticipated future events or results including comments with respect to the Company's objectives and priorities for 2017 and beyond, and strategies or further actions with respect to the Company, its business operations, financial performance and condition. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as "will", "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company's management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward-looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company's business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those referenced in the section entitled "Risk Factors" in the Company's annual information form for the year ended December 31, 2016, a copy of which is available on the SEDAR website at www.sedar.com under the Company's profile. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, Kew Media does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
This news release contains references to certain measures that do not have a standardized meaning under International Financial Reporting Standards ("IFRS") as prescribed by the International Accounting Standards Board and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. The Company believes that non-IFRS measures, specifically Adjusted EBITDA, are frequently used by securities analysts, investors and other interested parties as measures of financial performance and to provide supplemental measures of operating performance and thus highlight trends that may not otherwise be apparent when relying solely on IFRS financial measures. Please see the Company's management's discussion and analysis for the three months ended March 31, 2017 for a detailed description of these measures and a reconciliation of these measures to the nearest IFRS measure.
About Kew Media Group Inc.
Kew Media is one of the most significant independent entertainment content companies in the world, having recently acquired eleven best-in-class production and distribution companies. With primary offices in London, Los Angeles, New York and Toronto, the Kew Media companies develop, produce and distribute multi-platform, mass-audience, returnable content for the global market, across the following genres: factual, reality, lifestyle, drama, comedy, documentary, variety and branded content. Kew Media currently owns over 6,500 hours of premium content sold in over 150 countries on almost every available viewing platform. For more information, please visit the Company's website at www.kewmedia.com.
SOURCE Kew Media Group Inc.
For further information: Kew Media Group Inc., Steven Silver, 416-530-2583, Chief Executive Officer & Director