- Revenue increased 27% to $129.5
million in Q3 2022, compared to $102.2 million in Q3 2021. YTD 2022 revenue grew
16% to $395.2 million, compared to
$339.9 million in YTD 2021. These
increases reflected continued strong demand for our content and
sustained growth in Consumer Products.
- Net income increased to $21.3
million in Q3 2022, compared to net loss of $26.5 million in Q3 2021. YTD 2022 net income
grew to $4.5 million, compared to net
loss of $18.5 million in YTD
2021.
- Cash provided by operating activities in Q3 2022 was
$39.7 million, compared to
$22.1 million in Q3 2021. YTD 2022
cash flow provided by operating activities of $39.6 million, compared to $83.0 million YTD 2021.
- Positive Free Cash Flow1 of $8.1 million in Q3 2022, compared with negative
Free Cash Flow1 of $3.3
million in Q3 2021. YTD 2022 negative Free Cash
Flow1 of $12.7 million,
compared to positive Free Cash Flow1 of $17.6 million YTD 2021, primarily due to
significant growth in accounts receivables associated with larger
deals in the current year and timing of working capital
settlements.
- Adjusted EBITDA1 in Q3 2022 increased 75% to
$30.2 million, compared with
$17.2 million in Q3 2021. YTD 2022
adjusted EBITDA1 increased 21% to $77.3 million, compared to $63.9 million in YTD 2021.
- Content Production and Distribution revenue increased 61% to
$57.4 million in Q3 2022 vs
$35.6 million in Q3 2021. YTD 2022
revenue grew 11% to $156.3 million,
compared to $140.5 million in YTD
2021.
- Consumer Products revenue grew 11% to $50.9 million in Q3 2022, compared to
$45.7 million in Q3 2021. YTD 2022
revenue increased 24% to $161.8
million, compared to $131.0
million in YTD 2021.
- WildBrain Spark ("Spark") revenue increased 11% to $10.7 million in Q3 2022, compared to
$9.6 million in Q3 2021. YTD 2022
revenue increased 29% to $44.1
million, compared to $34.1
million in YTD 2021.
HALIFAX,
NS, May 5, 2022 /CNW/ - WildBrain Ltd.
("WildBrain" or the "Company") (TSX: WILD), a global leader in
kids' and family entertainment, today reported its Fiscal 2022
third-quarter ("Q3 2022") and nine-month ("YTD 2022") results for
the periods ended March 31, 2022.
Eric Ellenbogen, WildBrain CEO,
said: "Our third-quarter results reflect the success of our
360-degree IP strategy, which is now driving momentum across
multiple earnings streams. We're seeing the returns from
investments in our branded IP library, premium productions and
consumer products. We have a robust creative pipeline -- that
we're constantly adding to -- assuring years of opportunities and
upside."
Aaron Ames, WildBrain CFO, added:
"In Q3 2022, we delivered a strong quarter, reflecting growth
across all our content-driven businesses. We're aggregating
margin across our studio, distribution and licensing sectors, which
is responsible for another quarter of EBITDA growth. We're
delighted with our team's early execution on deals which were
expected later in the year. Given our production pipeline and
large distribution deals now reported in our results, we remain on
track to deliver our guidance for Fiscal 2022 revenue in the range
of $480.0 million to $500.0 million and adjusted EBITDA between
$87.0 million to $93.0 million."
Q3 2022 Performance – Executing on Priorities
PRIORITIES
|
HIGHLIGHTS
|
Activate IP and Grow
Key Brands
|
- Signed a multi-year
deal to produce a new Degrassi series, launching exclusively on HBO
Max in the US in 2023. Additionally, HBO Max has picked up the US
rights for the entire 14-season library of Degrassi: The Next
Generation, which revenue was recognized in the current
quarter. WildBrain retains all distribution rights outside of the
US in the new series as well as the library.
- More new Peanuts
content rolling out on Apple TV+ with the recent premiere of The
Snoopy Show Season 2 and two more family specials — celebrating
Earth Day and Mother's Day — debuting this Spring.
- Launched our new
original Strawberry Shortcake series, Berry in the Big City,
on Netflix worldwide as we build awareness for the property across
all media platforms.
|
Maximizing the Value
of WildBrain Spark
|
- Spark revenue
increased 11% to $10.7 million in Q3 2022 vs $9.6 million in Q3
2021, reflecting stable advertising revenue as well as growth in
other revenue streams from direct-ad sales, paid media and digital
production. These other revenues collectively increased by
approximately 117% in Q3 2022 vs Q3 2021.
|
Deliver Sustainable
Growth
|
- Revenue increased
27% to $129.5 million in Q3 2022, compared to $102.2 million in Q3
2021, reflecting continued strong demand for our content as well as
sustained growth in our Consumer Products business.
- Adjusted
EBITDA1 increased 75% to $30.2 million in Q3 2022 vs
$17.2 million in Q3 2021.
- We reaffirm our
expectations for Fiscal 2022 of achieving revenue in the range of
$480.0 million to $500.0 million and adjusted EBITDA1
between $87.0 million to $93.0 million.
|
Q3 2022 Financial Highlights
Financial
Highlights1
(in millions of
Cdn$)
|
Three Months
ended
March
31,
|
Nine Months
ended
March
31,
|
2022
|
2021
|
2022
|
2021
|
Revenue
|
$129.5
|
$102.2
|
$395.2
|
$339.9
|
Gross Margin
|
$63.7
|
$43.9
|
$178.9
|
$148.9
|
Gross Margin
(%)
|
49%
|
43%
|
45%
|
44%
|
Adjusted EBITDA
attributable to WildBrain
|
$30.2
|
$17.2
|
$77.3
|
$63.9
|
Net Income (Loss)
attributable to WildBrain
|
$21.3
|
$(26.5)
|
$4.5
|
$(18.5)
|
Basic Earnings (Loss)
per Share
|
$0.12
|
$(0.15)
|
$0.03
|
$(0.11)
|
Cash Provided by
Operating Activities
|
$39.7
|
$22.1
|
$39.6
|
$83.0
|
Free Cash
Flow
|
$8.1
|
$(3.3)
|
$(12.7)
|
$17.6
|
In Q3 2022, revenue grew 27% to $129.5
million, compared with $102.2
million in the prior year, reflecting growth across all our
content-driven businesses in Content Production and Distribution,
Spark and Consumer Products. YTD 2022 revenue increased 16%
to $395.2 million, compared to
$339.9 million in YTD 2021.
Content Production and Distribution revenue increased 61% to
$57.4 million in Q3 2022 vs
$35.6 million in Q3 2021, benefiting
from the Degrassi library deal, distribution agreements with Amazon
Prime and BBC and a pipeline of premium productions including
Sonic Prime and a range of new Peanuts content. YTD
2022 revenue grew 11% to $156.3
million, compared to $140.5
million in YTD 2021.
Consumer Products revenue grew 11% to $50.9 million in Q3 2022, compared with
$45.7 million in Q3 2021, reflecting
the strength of the Peanuts franchise, supported by consistent
output of new content and the synergies of our vertically
integrated licensing business. YTD 2022 revenue increased 24% to
$161.8 million, compared to
$131.0 million in YTD 2021.
Q3 2022 revenue at Spark increased 11% to $10.7 million vs $9.6
million in Q3 2021, reflecting stable advertising revenue
and growth in other revenue streams from direct-ad sales, paid
media and digital production. YTD 2022 Spark revenue increased 29%
to $44.1 million, compared to
$34.1 million in YTD 2021. Kids
continued to be highly engaged on Spark, attracting 8.2 billion
views across 49.4 billion minutes of videos watched on our network
in Q3 2022, consistent with Q3 2021.
Q3 2022 Gross Margin1 increased to 49% vs 43% in Q3
2021, reflecting a strong slate of premium projects in our studio
and the distribution deals in the current quarter. Gross
Margin1 for YTD 2022 increased to 45% vs 44% in YTD
2021.
Cash provided by operating activities in Q3 2022 was
$39.7 million, compared to
$22.1 million in Q3 2021.
Positive Free Cash Flow1 of $8.1
million in Q3 2022, compared with negative Free Cash
Flow1 of $3.3 million in
Q3 2021. YTD 2022 cash flow provided by operating activities
of $39.6 million, compared to
$83.0 million in YTD 2021. YTD
2022 negative Free Cash Flow1 of $12.7 million, compared to positive Free Cash
Flow1 of $17.6 million in
YTD 2021, primarily due to significant growth in accounts
receivables associated with larger deals in the current year and
timing of working capital settlements.
Adjusted EBITDA1 increased 75% to $30.2 million in Q3 2022, compared with
$17.2 million in Q3 2021, principally
driven by the Degrassi library licensing deal and continued
strength in our Content Production and Distribution business. YTD
2022 adjusted EBITDA1 increased 21% to $77.3 million, compared to $63.9 million in YTD 2021. Q3 2021 included
$2.2 million of government wage
subsidies while YTD 2021 included $4.7
million of government wage subsidies and other income of
$4.4 million from a litigation
settlement.
Q3 2022 net income grew to $21.3
million vs net loss of $26.5
million in Q3 2021, reflecting higher gross margins.
YTD 2022 net income increased to $4.5
million, compared to net loss of $18.5 million in YTD 2021.
1.
|
Free Cash Flow,
Gross Margin, Adjusted EBITDA and Adjusted EBITDA attributable to
WildBrain are non-GAAP financial measures. Free Cash Flow is
defined as operating cash flow less distributions to
non-controlling interests, changes in interim production financing,
cash interest paid on our long-term debt, bank indebtedness and
lease liabilities and principal repayments on our lease
liabilities. Gross Margin means revenue less direct production
costs and expense of film and television programs produced (per the
financial statements). Adjusted EBITDA represents income of the
Company before amortization, finance income (expense), taxes,
reorganization and development expenses, impairments,
equity-settled share-based compensation expense, and adjustments
for other identified charges. Adjusted EBITDA attributable to
WildBrain means Adjusted EBITDA excluding the portion of Adjusted
EBITDA attributable to non-controlling interests. Further details
on the definitions of and reconciliation to Free Cash Flow, Gross
Margin, Adjusted EBITDA and Adjusted EBITDA attributable to
WildBrain can be found in the "Non-GAAP Financial Measures" section
of the Company's Q3 2022 Management Discussion and Analysis
("MD&A").
|
Q3 2022 Conference Call
The Company will hold a conference call on May 6, 2022 at 10:00 a.m.
ET to discuss the results.
To listen, call +1 (888) 254-3590 toll-free or +1 (647) 794-4605
internationally and reference conference ID 3761338. Please allow
10 minutes to be connected to the conference call. Replay
will be available after the call on +1 (888) 203-1112 toll free or
+1 (647) 436-0148, under passcode 3761338, until May 13, 2022.
The audio and transcript will also be archived on our website
approximately two days after the event.
For more information, please contact:
Investor Relations: Nancy Chan-Palmateer - Director,
Investor Relations, WildBrain
nancy.chanpalmateer@wildbrain.com
+1 416-977-7358
Media: Shaun Smith - Director,
Corporate & Trade Communications, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations to run wild, engaging kids
and families everywhere with great content across all media. With
approximately 13,000 half-hours of filmed entertainment in our
library – one of the world's most extensive – we are home to such
brands as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Caillou, Inspector Gadget,
Johnny Test and Degrassi. At our
75,000-square-foot state-of-the-art animation studio in
Vancouver, BC, we produce such
fan-favourite series as The Snoopy Show, Snoopy in Space, Chip
& Potato, Carmen Sandiego, Go,
Dog. Go! and more. Our shows are enjoyed worldwide in more than
150 countries on over 500 streaming platforms and telecasters, and
our AVOD business – WildBrain Spark – offers one of the largest
networks of kids' channels on YouTube, garnering billions of views
per month from over 245 million subscribers. Through our leading
agency, WildBrain CPLG, we also license consumer products and
location-based entertainment in every major territory for our own
properties as well as for our clients and content partners. Our
television group owns and operates four family entertainment
channels that are among the most viewed in Canada. WildBrain is headquartered in
Canada with offices worldwide and
trades on the Toronto Stock Exchange (TSX: WILD). Please visit us
at www.wildbrain.com.
Forward-Looking Statements
This press release contains "forward looking statements" under
applicable securities laws with respect to WildBrain including,
without limitation, statements regarding the growth strategy of
WildBrain, WildBrain's production pipeline and projects in
development, content agreements of WildBrain, WildBrain's brand
strategies, WildBrain's direct ad sales business, the value of
WildBrain's assets, leverage ratio and cash flow, use of capital
for investments and other growth opportunities and expected returns
therefrom, monetization of WildBrain Spark, the business strategies
and operational activities of WildBrain, the markets and industries
in which WildBrain operates, and the growth and future financial
and operating performance of WildBrain. Although WildBrain believes
that the expectations reflected in such forward looking statements
are reasonable, such statements involve risks and uncertainties and
are based on information currently available to WildBrain. Actual
results or events may differ materially from those expressed or
implied by such forward looking statements. These forward-looking
statements are made as of the date hereof, and WildBrain assumes no
obligation to update or revise them to reflect new events or
circumstances, except as required by law.
Forward-looking statements are based on factors and assumptions
that management believes are reasonable at the time they are made,
but a number of assumptions may prove to be incorrect, including,
but not limited to, assumptions about (i) WildBrain's future
operating results, (ii) the expected pace of expansion of
WildBrain's operations, (iii) future general economic and market
conditions, including debt and equity capital markets and the
availability of financing on acceptable terms, (iv) the impact of
increasing competition on WildBrain, (v) changes in the industries
and changes in laws and regulations related to the industries in
which WildBrain operates, (vi) consumers and consumer preferences,
(vii) the ability of WildBrain to execute on acquisition and other
growth strategies and opportunities and realize the expected
benefits therefrom, (viii) the ability of WildBrain to identify and
execute on production, distribution and licensing arrangements,
(ix) the availability of investment opportunities at acceptable
valuations and the ability of WildBrain to execute on such
investment opportunities, * the timing for commencement and
completion of productions, (xi) the ability of WildBrain and its
partners to execute on its brand plans and consumer products
programs, (xii) changes in the markets and industries in which the
WildBrain operates and the ability of WildBrain to adapt to such
changes, (xiii) changes to YouTube and in advertising markets,
(xiv) the ability of WildBrain to commercialize consumer products
related to its brands, (xv) changes in foreign exchange and
interest rates, (xvi) the current geopolitical landscape (including
vis a vis the recent invasion of the Ukraine by Russia and associated political and economic
repercussions).
Forward-looking statements are inherently subject to risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. Known and unknown risk
factors, many of which are beyond the control of the Company, could
cause actual results to differ materially from the forward-looking
statements in this press release. Factors that could cause actual
results or events to differ materially from current expectations
include, among other things, the current outbreak of COVID-19 and
the magnitude and length of economic disruption as a result of such
outbreak, market factors, WildBrain's ability to identify and
execute on anticipated production, distribution, licensing and
other contracts, the ability of WildBrain to realize the expected
value of its assets, supply chain and other related disruptions,
and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time including
matters discussed under "Risk Factors" in WildBrain's most recent
Annual Information Form and Management Discussion and Analysis
filed with the securities regulatory authorities in Canada and available under the Company's
profile on SEDAR (www.sedar.com).
Non-IFRS Measures
In this press release, WildBrain uses certain non-IFRS financial
measures, including "Free Cash Flow", "Gross Margin", "Adjusted
EBITDA", and "Adjusted EBITDA attributable to WildBrain", to
measure, compare and explain WildBrain's operating results and
financial performance. These measures and other non-IFRS measures
are commonly used by entities in WildBrain's industry as useful
metrics for measuring performance. However, they do not have any
standardized meaning prescribed by IFRS and are not necessarily
comparable to similar measures presented by other publicly traded
entities. These measures should be considered as supplemental in
nature and not as a substitute for related financial information
prepared in accordance with IFRS. For further details on these
non-IFRS measures, including relevant definitions and
reconciliations, see "Non-GAAP Measures" in WildBrain's most recent
MD&A.
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SOURCE WildBrain Ltd.