Thunderbird Entertainment Group Reports on Q1 2022 Results

Rhea-AI Summary

Thunderbird Entertainment Group reported a remarkable Q1 2022 revenue of $35.1 million, reflecting a 77% year-over-year increase from $19.8 million in Q1 2021. The Adjusted EBITDA rose to $6.3 million, up 31% year-over-year. Free cash flow surged by 183% to $3.4 million. The company has 27 productions in progress, with significant projects on platforms like Netflix and Disney+. CEO Jennifer Twiner McCarron emphasized the focus on quality and diversity in content production to enhance shareholder value.

Positive

• Q1 2022 revenue increased to $35.1 million, a 77% year-over-year rise.
• Adjusted EBITDA grew by 31%, reaching $6.3 million.
• Free cash flow increased by 183%, totaling $3.4 million.
• The company has 27 active productions, including series on major streaming platforms.

Negative

• None.

Q1 2022 Revenue $35.1 million, 77% year-over-year increase

 Q1 2022 Adjusted EBITDA $6.3 million, 31% year-over-year increase

 27 shows in production; 12 IP or Partner-Managed

 Conference call and webcast scheduled for November 29 at 8 a.m. PT/ 11 a.m. ET

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Thunderbird Entertainment Group Inc. (TSXV: TBRD, OTCQX: THBRF) (Thunderbird or the Company) today announced its financial results for Q1 2022, which ended September 30, 2021, and provided a corporate update.

Financial Highlights

• Revenue was $35.1 million for the three months ended September 30, 2021, as compared to $19.8 million for the comparative period of fiscal 2021, an increase of $15.3 million (77%). The majority of this increase over the comparative period in 2021 is related to growth in production service projects and due to the delivery of the live-action series Strays for CBC.

• Adjusted EBITDA was $6.3 million for the three months ended September 30, 2021, as compared to $4.8 million for the comparative period of fiscal 2021, an increase of $1.5 million (31%).

• Free cash flow was $3.4 million for the three months ended September 30, 2021, as compared to $1.2 million for the comparative period of fiscal 2021, an increase of $2.2 million (183%).

“Content remains king and Thunderbird is laying the foundation to sustainably grow with the ever-increasing demand. With quality as our North Star and our focus on maintaining a culture that is diverse, inclusive and promotes excellence, Thunderbird will continue to lead in delivering premium content to our partners, further driving shareholder value,” said Jennifer Twiner McCarron, Thunderbird CEO.

Thunderbird’s Q1 2022 Corporate Highlights

• At September 30, 2021, the Company had 27 programs in various stages of production. Twelve of these projects are Company IP or partner-managed service productions where the Company receives a percentage of certain revenue streams.

• The Company’s productions currently air on Netflix, Peacock, Nickelodeon, Apple, Sony, PBS, Bell Media's Discovery, Disney+, Corus Entertainment and the CBC, among others.

• In Q1, the Kids and Family Division, Atomic Cartoons (“Atomic”) was in various stages of production on 16 animated television series/programs and two animated feature-length films, 18 productions in total. These programs reflect a blend of both partner-managed and service-based work.

• During Q1, work produced by Atomic included: Mighty Express debuting its fourth season exclusively on Netflix; the Lego Star Wars: Terrifying Tales special streaming on Disney+; Season 4 of Trolls: TrollsTopia streaming on Peacock and Hulu; Marvel’s Spidey and His Amazing Friends — the first full-length Marvel series for preschoolers — premiering on Disney Channel and Disney Junior; and Curious George: Cape Ahoy debuting on Peacock.

• Also in Q1, Season 2 of Marvel’s Spidey and His Amazing Friends was greenlit after an impressive debut on Disney.

• In Q1, the Factual Division, Great Pacific Media (“GPM”), was in production on eight series and/or documentaries: Highway Thru Hell (Season 11), Heavy Rescue: 401 (Season 7), Mud Mountain Haulers (Season 2), Deadman’s Curse (working title) (Season 1), Gut Job (Season 1), Styled (working title) (Season 1), Dr. Savannah: Wild Rose Vet (Season 1) in conjunction with Wapanatahk Media, and The Teenager And The Lost Mayan City (working title).

• Subsequent to Q1, GPM announced it has partnered with director, writer and producer Brad Peyton and visionary physicist Michio Kaku for its new series in development, If: Imagine the Impossible. This series is based on Underknown’s What If, which is a top ranked science program on social media.

• In Q1, Thunderbird also announced Reginald the Vampire, its new fully-owned scripted series starring Spider-Man's Jacob Batalon. Reginald the Vampire was picked up in a straight-to-series 10-episode order by SyFy and is being co-produced with Modern Story Company and December Films.

• Also, in Q1, Strays, the spin-off series from Kim’s Convenience, premiered on CBC.

Results of Operations
			For the three months ended
				Sept 30, 2021	Sept 30, 2020
($000’s, except per share data)				$	$
Revenue				35,072	19,790
Expenses				33,186	18,321
Net income from continuing operations				1,886	1,469
Loss from discontinued operation				-	(80	)
Net income for the period				1,886	1,389
Foreign currency translation adjustment				6	(3	)
Loss on translation of discontinued operation				-	(44	)
Comprehensive income for the period				1,892	1,342
Basic income per share – continuing operations				0.039	0.031
Diluted income per share – continuing operations				0.037	0.030
Basic loss per share – discontinued operation				-	(0.002	)
Diluted loss per share – discontinued operation				-	(0.002	)

EBITDA, Adjusted EBITDA and Free Cash Flow
	For the three months ended
			Sept 30, 2021		Sept 30, 2020
($000’s)			$		$
Net income from continuing operations			1,886		1,469
Income tax expense			765		318
Deferred income tax expense			113		60
Finance costs
Interest			413		477
Dividends on preferred shares			11		18
Amortization
Property and equipment			1,011		324
Right-of-use assets			1,478		1,923
Intangible assets			68		67
			3,859		3,187
EBITDA			5,745		4,656
Share-based compensation			275		119
Unrealized foreign exchange (gain) loss			3		(285	)
Severance costs			208		283
Other			70		-
			556		117
Adjusted EBITDA			6,301		4,773
Cash (outflows) inflows from continuing operations			(936	)	1,514
Purchase of property and equipment			(1,043	)	(268	)
Net advances (repayment) of interim production financing			5,416		(18	)
Free Cash Flow			3,437		1,228

Conference Call Webcast on Monday, November 29 at 8 a.m. PT/ 11 a.m. ET

Thunderbird will hold a conference call and webcast to share the Company’s Q1 financial results on November 29, 2021 at 8 a.m. PT/ 11 a.m. ET. The conference call will be webcast live and available for replay via the “Investors” section of the Thunderbird website.

Conference Call and Webcast Access:

Toll-free dial-in number: (833) 900-1530
International dial-in number: (236) 712-2271
Conference ID: 2977972
Webcast: https://events.q4inc.com/attendee/624790123

Participants joining by phone are requested to call the conference line 10 minutes early to avoid wait times while connecting to the call. The conference call will be webcast live and available for replay via the “Investors” section of the Thunderbird website. Investors can access a replay of the teleconference at: (+1) 416-621-4642 or toll-free at (+1) 800-585-8367 three hours after the call's completion. The Conference ID # is 2977972. The teleconference replay will be available through December 13, 2021.

For information on Thunderbird and to subscribe to the Company’s investor list for news updates, go to www.thunderbird.tv.

ABOUT THUNDERBIRD ENTERTAINMENT GROUP
Thunderbird Entertainment Group is a global award-winning, full-service multiplatform production, distribution and rights management company, headquartered in Vancouver, with additional offices in Los Angeles, Toronto, and Ottawa. 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 Thunderbird Kids and Family (Atomic Cartoons), and Thunderbird Factual and Scripted (Great Pacific Media). The Company also has a division dedicated to global distribution and consumer products. Thunderbird is on Facebook, Twitter, and Instagram at @tbirdent. For more information, visit: www.thunderbird.tv.

On Behalf of Thunderbird Entertainment Group Inc.

Jennifer Twiner McCarron
Chief Executive Officer

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
In addition to the results reported in accordance with IFRS, the Company uses various non-IFRS financial measures which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-IFRS financial measures are provided to enhance the user’s understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a more consistent basis for comparison between periods. The following discussion explains the Company’s use of EBITDA, Adjusted EBITDA, and Free Cash Flow as measures of performance.

“EBITDA” is calculated based on earnings before interest, income taxes, depreciation and amortization. “Adjusted EBITDA” is calculated based on EBITDA before share-based compensation, unrealized foreign exchange gain/loss and items of an unusual or one-time nature that do not reflect our ongoing operations. EBITDA and Adjusted EBITDA are commonly reported and widely used by investors and lenders as an indicator of a company’s operating performance and ability to incur and service debt, and as a valuation metric. EBITDA and Adjusted EBITDA are not earnings measures recognized by IFRS and therefore do not have a standardized meaning prescribed by IFRS. Therefore, EBITDA and Adjusted EBITDA may not be comparable to similar measures presented by other issuers.

“Free Cash Flow” (“FCF”) is calculated based on cash flows from operations, purchase of property and equipment and net interim production financing. FCF represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211124006270/en/

Investor Relations:

Glen Akselrod, Bristol Capital

Phone: + 1 905.326.1888 ext 1

Email: glen@bristolir.com

Media Relations:

Julia Smith, Finch Media

Phone: +1604.803.0897

Email: julia@finchmedia.net

Source: Thunderbird Entertainment Group Inc.

FAQ

What were Thunderbird Entertainment's Q1 2022 financial results?

In Q1 2022, Thunderbird reported revenue of $35.1 million, a 77% increase year-over-year, and Adjusted EBITDA of $6.3 million.

How much did Thunderbird's free cash flow increase in Q1 2022?

Thunderbird's free cash flow increased by 183% to $3.4 million in Q1 2022.

What major projects is Thunderbird currently working on?

Thunderbird has 27 productions in progress, including projects for Netflix, Disney+, and other platforms.

When will Thunderbird hold its conference call to discuss Q1 2022 results?

Thunderbird will hold a conference call on November 29, 2021, at 8 a.m. PT/11 a.m. ET.

What is the significance of the revenue increase for Thunderbird shareholders?

The 77% revenue increase suggests strong growth potential for Thunderbird, which could positively impact shareholder value.