Thunderbird Entertainment Reports on Transformational Second Quarter
VANCOUVER, March 1, 2019 /CNW/ - Thunderbird Entertainment Group Inc. (TSXV:TBRD) ("Thunderbird" or the "Company"), a global, multiplatform entertainment company with offices in Los Angeles, London, Vancouver, Ottawa and Toronto, today announced its financial and operating results for the second quarter ended December 31, 2018, and provided a corporate update.
Quarterly Highlights
Financing and Public Listing
During the quarter, the Company strengthened its balance sheet by raising $15 million in new equity capital and completed a listing on the TSX Venture Exchange. At quarter's end, the Company had over $20 million in cash.
Record Production Pipeline
During quarter, the Company had a record 17 television series in various stages of production, with roughly 1,000 employees across its Vancouver, Los Angeles, London, Toronto and Ottawa offices.
Focus on Margin, Focus on IP
Thunderbird also increased its profit margins this quarter by eliminating low margin business segments, while focusing on high margin projects, many of which are owned IP series. Thunderbird productions are now seen in more than 190 countries worldwide.
Company Recognitions
Thunderbird's Chief Executive Officer (CEO), Jennifer Twiner McCarron, was also recognized as Playback Magazine's 2018 "Exec of the Year" in the quarter. The Company proudly congratulated and shared this accomplishment through a formal announcement.
Production Overview
Thunderbird Kids
- During the quarter, Thunderbird was in various stages of production on 11 animated television series, reflecting a blend of both service based and proprietary series.
- In December, the Company also announced its expansion to Ottawa with a new production hub, which is focusing on animation, but also supporting the factual and scripted divisions. The new studio aims to have a robust operation by June 2019.
Thunderbird Factual
- During the quarter, Thunderbird's factual division, Great Pacific Media, continued to deliver Season 7 of its Highway Thru Hell television series to Discovery Canada, with five of the remaining 17 episodes being delivered in the quarter. The Company also announced that Highway Thru Hell was also commissioned for an eighth season on Discovery Canada. The new season will consist of 17 inspiring episodes and begin airing in late 2019.
- The Company announced that Heavy Rescue: 401 would return with a new season, comprised of 14 episodes, in early calendar 2019. Heavy Rescue: 401 is a Top 5 series on Discovery Canada.
- The Company continued production of the second seasons of two of its lifestyle series: Worst to First and Save My Reno for HGTV Canada.
- The Company continued production on the first season of High Arctic Haulers, which is scheduled to air on CBC in 2019.
Thunderbird Releasing
- The Company announced that it had secured the rights to distribute Hirokazu Kore-eda's Palme d'Or-winning film Shoplifters across the UK and Ireland. This was followed by another announcement highlighting the film's box office success, critical acclaim and Golden Globe and Oscar nominations.
Thunderbird Scripted
- Thunderbird's scripted division started production on the fourth season of its award-winning comedy series Kim's Convenience during the quarter. Kim's Convenience airs on CBC in Canada and is available on Netflix worldwide.
"I am thrilled with the skyrocketing trajectory of Thunderbird. Our team is building world class global brands and working with the best talent in the business." says Jennifer Twiner McCarron, Thunderbird Entertainment's CEO. "We've strengthened our balance sheet, which gives us lots of options and amazing resources to continue growing the business."
The Company's unaudited interim financial statements along with its Management's Discussion and Analysis for Q2 2019 are available on the Company's website at http://www.thunderbird.tv and under the Company's profile at www.sedar.com.
Q2 2019 Financial Highlights
Revenue: $25.95 million
Net Loss: $( 4.65) million
Adjusted EBITDA1 $ 5.6 million
Cash: $20 million
__________________________________ |
Financial and Operational Highlights for the Three and Six Months Ended December 31, 2018
- During the fiscal period, the Company took a number of steps to strengthen its capitalization table in conjunction with a public listing of its shares. As an initial step, TEI drew down a $6 million three year Non-Revolving Term Loan in order to repurchase common shares of certain shareholders of the Company on an accretive basis. The Term Loan was part of an overall credit facility negotiated with the Royal Bank during the quarter that also included an increased production line and an acquisition facility. As at December 31, 2018, the Company had repaid $3.5 million of the term loan.
- Consolidated revenue for Q2 2019 was $11.6 million as compared to $52.2 million in Q2 2018. The majority of this decrease was related to the Company's decision to not renew its multi season service agreement to produce the live action television series Man in the High Castle. Previous season revenues from this production were recognized in Q1 to Q3 of fiscal 2018. Although the series generated significant revenues, the profit margins were small and management decided to re-direct valuable corporate resources to the creation of owned IP programming and other core operations. A portion of the quarterly revenue decrease ($8.6 million) was related to the adoption of IFRS 15, which delayed the recognition of revenue from renewing scripted and factual television series. These revenues will be recognized in subsequent quarters of fiscal 2019.
- Consolidated net losses were $6.1 million and $4.65 million for the three and six months ending December 31, 2018, compared to net income of $0.8 million and $4.5 million for the comparative periods of fiscal 2018. In addition to the implementation of IFRS 15 and the matters referenced above that impacted the timing of revenues and EBITDA, the Company also incurred a one-time charge relating to the RTO Transaction of $5.3 million. This represented the difference between the net assets acquired and the fair value of the Golden Secret shares that were exchanged.
- Adjusted EBITDA was $1.4 million and $5.6 million for the ending December 31, 2018, compared to $3.7 million and $8.9 million for the comparative periods of fiscal 2018, a decrease of $2.3 million and $3.3 million respectively. A portion of this decrease in EBITDA (approx. $4.1 million) was due to the adoption of IFRS 15, which delayed the recognition of revenue from renewed scripted and factual television series delivered in the first half of fiscal 2019 to the second half of the year. A further $2.3 million of the decrease in EBITDA was the result of a large budget scripted television series not being renewed by ABC Network for fiscal 2019. These decreases were partially offset by growth in revenue and EBITDA from the Company's animation.
Results for the three and six months ended December 31, 2018 compared to the three and six months ended December 31, 2017:
For the three months ended |
For the six months ended |
|||
($000's, except per share data) |
December |
December |
December |
December |
Revenue |
$ 11,589 |
$ 52,171 |
$ 25,950 |
$ 118,893 |
Expenses 1 |
17,694 |
51,459 |
30,602 |
114,402 |
Net income (loss) from continuing operations |
(6,105) |
712 |
(4,652) |
4,491 |
Income from discontinued operations |
- |
93 |
- |
93 |
Non-controlling interest |
(8) |
- |
(8) |
- |
Foreign currency translation adjustment |
24 |
22 |
15 |
(52) |
Comprehensive net income (loss) for the period attributable to owners of the parent |
$ (6,089) |
$ 827 |
$ (4,645) |
$ 4,532 |
Adjusted EBITDA |
$ 1,434 |
$ 3,745 |
$ 5,624 |
$ 8,870 |
1 Expenses includes a Charge related to Public company listing of $5,316 |
About Thunderbird Entertainment Group Inc.
Thunderbird Entertainment Group is a Vancouver-based global multiplatform entertainment company with offices in Vancouver, Los Angeles, Toronto, Ottawa and London. Thunderbird creates award-winning scripted, unscripted and animated programming for the world's leading digital platforms, as well as Canadian and International broadcasters. Thunderbird's vision is to produce high quality, socially responsible content that makes the world a better place. The Company develops, produces and distributes animated, factual and scripted content through its various divisions, including Atomic Cartoons, Great Pacific Television, Thunderbird Productions and Thunderbird Releasing Limited.
On Behalf of Thunderbird Entertainment Group Inc.
"Jennifer Twiner McCarron"
Chief Executive Officer
For information on Thunderbird and to subscribe to the Company's investor list for news updates, go to www.thunderbird.tv.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility of the adequacy or accuracy of this release, which has been prepared by management.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's objectives, goals or future plans and the business and operations of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; those additional risks set out in the Company's Filing Statement and other public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
Non-IFRS Measures
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 EBITDA and 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.
SOURCE Thunderbird Entertainment Group Inc.
Investor Relations Contacts: Lucas Cahill and Freddie Leigh, Phone: + 1 604.683.3555, Email: [email protected]; Media Relations Contact: Julia Smith, Finch Media, Phone: +1 604.803.0897, Email: [email protected]
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