Fiscal 2024 Highlights
- Revenue was $461.8 million,
compared to $532.9 million in
FY2023.
- Net loss was $106.0 million,
compared with net loss of $45.6
million in FY2023.
- Adjusted EBITDA1 was $87.6
million, compared to $97.9
million in FY2023.
- Cash provided by operating activities was $73.6 million, compared to cash provided by
operating activities of $94.2 million
in FY2023.
- Free Cash Flow1 was negative $29.5 million, compared to positive $29.8 million in FY2023.
Q4 2024 Highlights
- Revenue was $130.0 million,
compared to $124.9 million in Q4
2023.
- Net loss was $80.7 million,
compared with net loss of $44.4
million in Q4 2023.
- Adjusted EBITDA1 was $23.9
million, compared to $19.1
million in Q4 2023.
- Cash provided by operating activities was $18.3 million, compared to cash provided by
operating activities of $30.4 million
in Q4 2023.
- Free Cash Flow1 was negative $6.6 million, compared to positive $16.9 million in Q4 2023.
TORONTO, Sept. 17,
2024 /PRNewswire/ - WildBrain Ltd. ("WildBrain" or
the "Company") (TSX: WILD), a global leader in kids' and family
entertainment, today reported its fourth quarter ("Q4 2024")
results for the period ended June 30,
2024.
Josh Scherba, WildBrain President
and CEO, said: "In Fiscal Year 2024, we undertook a realignment of
our global organization to focus on building key franchises across
our core competencies of Content Creation, Audience Engagement and
Global Licensing. Driven by our 360-degree franchise strategy and
led by an experienced senior management team, we have begun to see
benefits in accelerating growth for key owned franchises and
partner brands. The build in our licensing business this year was
offset by the industry-wide slowdown in the content greenlights due
to the Hollywood strikes, but our
production pipeline has been ramping up and we are seeing a return
to normal levels for Fiscal 2025 and 2026. We are confident that
the combination of our assets, our strategy and capabilities in the
kids and family entertainment space, amounts to a unique and highly
valuable foundation to deliver growth over the long term."
Nick Gawne, WildBrain CFO, added:
"We are pleased to have announced in July a comprehensive plan to
refinance our debt and repay our convertible debentures. The
successful completion of the refinancing process during a
challenging period for the wider industry demonstrates the
robustness of our model and strategic vision. With the extended
maturity, we can continue to execute on this strategic vision and
drive earnings and free cash flow growth. We will continue to focus
on disciplined financial management, improving our balance sheet
and reducing leverage over time."
Q4 2024 Performance – Executing on
Priorities
|
PRIORITIES
|
HIGHLIGHTS
|
|
Focus on Key Brands
& Partnerships
|
- The new
series Yo Gabba GabbaLand! premiered on Apple TV+ in
August 2024. The soundtrack for Season 1 also dropped on music
streaming platforms in partnership with BMG, featuring appearances
by leading music artists, including Anderson .Paak, Portugal. The
Man, Thundercat, The Linda Lindas, Big Daddy Kane, Reggie Watts and
more.
- Apple TV+ announced
a second season of Camp Snoopy, WildBrain's newest animated
Peanuts series. Subsequent to the quarter, multiple new licensing
deals across categories were also announced by Peanuts Worldwide,
including partnerships with leading licensees LeSportsac (bags
& accessories), Hush Puppies (shoes & apparel), Bamford
(watches), McDonald's (collector cups) and Anya Hindmarch
(stationery).
- WildBrain CPLG
expanded its existing partnership with Supercell to launch global
cross-category consumer products for "Brawl Stars", a mobile game
with over $2 billion in lifetime revenue. This builds on the
existing global partnership across Supercell's "World of Clash"
games, "Clash of Clans" and "Clash Royale".
- WildBrain extended
its world-leading position in kids' FAST channels through an
expanded partnership with Samsung TV Plus. New channels for
Teletubbies, Strawberry Shortcake, Caillou and Sonic launched on
Samsung's FAST platform in Australia and New Zealand. WildBrain
also signed a partnership with The Pokémon Company International to
become the only distributor of the single-IP Pokémon FAST channel.
With almost 150 FAST (free ad-supported television) channels now
launched across multiple platforms worldwide and more on the way,
WildBrain is the world's leading expert in harnessing FAST for
kids' content.
|
|
Deliver Sustainable Growth
|
- Fiscal Year 2024
was challenged by the slowdown in greenlights in the content
production industry which impacted revenue and EBITDA in our studio
business. The Company saw continued growth in the YouTube and FAST
businesses as well as growth in Global Licensing, with particular
strength in our key franchises, Strawberry Shortcake and
Teletubbies. Also within Global Licensing, the Peanuts brand saw
strength in North America.
- In Fiscal Year
2025, we expect revenue growth of approximately 10 to 15% and
Adjusted EBITDA growth of approximately 5 to 10%.
|
|
Improve Balance Sheet
|
- Subsequent to the
quarter, in July, the Company successfully refinanced its debt,
extending debt maturity out to 2029. Proceeds of the new facility
were used to repay the prior Term Loan B and Revolving Facility.
Additionally, proceeds along with working capital and the exercise
of warrants, were placed into escrow to repay the Convertible
Unsecured Subordinated Debentures due September 30,
2024.
- The Company is committed to financial
discipline, reducing leverage and consistent free cash flow
generation. We continue to target leverage of under 4x over time.
We expect leverage to remain elevated through Fiscal Year 2025 as
we return to growth in our content production business.
|
Q4 2024 Financial Highlights
|
Financial
Highlights
(in millions of
Cdn$)
|
Year
Ended
June
30,
|
Three Months
Ended
June
30,
|
|
2024
|
2023
|
2024
|
2023
|
|
Revenue
|
$461.8
|
$532.9
|
$130.0
|
$124.9
|
|
Gross
Margin1
|
$221.1
|
$241.5
|
$59.5
|
$57.5
|
|
Gross Margin
(%)1
|
48 %
|
45 %
|
46 %
|
46 %
|
|
Adjusted EBITDA
attributable to WildBrain1
|
$87.6
|
$97.9
|
$23.9
|
$19.1
|
|
Net Income (Loss)
attributable to WildBrain
|
$(106.0)
|
$(45.6)
|
$(80.7)
|
$(44.4)
|
|
Basic Earnings (Loss)
per Share
|
$(0.51)
|
$(0.26)
|
$(0.39)
|
$(0.24)
|
|
Cash Provided by
Operating Activities
|
$73.6
|
$94.2
|
$18.3
|
$30.4
|
|
Free Cash
Flow1
|
$(29.5)
|
$29.8
|
$(6.6)
|
$16.9
|
In Q4 2024, revenue increased 4% to $130.0 million, compared to $124.9 million in Q4 2023. Fiscal Year 2024
revenue was $461.8 million, compared
to revenue of $532.9 million in
Fiscal Year 2023.
Content Creation and Audience Engagement revenue increased 7% to
$68.0 million in Q4 2024, compared to
$63.6 million in Q4 2023. Strong
distribution revenue in the current quarter as well as continued
strength in the YouTube and AVOD networks drove quarter-on-quarter
growth but was offset by lower production revenues as a result of
fewer productions in the studios. Fiscal Year revenue for the
segment was $212.8 million, compared
to revenue of $280.6 million in
Fiscal Year 2023.
Global Licensing revenue increased 4% to $53.7 million in Q4 2024, compared to
$51.8 million in Q4 2023. Revenue in
the quarter was driven by growth in Peanuts and WildBrain brands,
as well as growth in Asia Pacific
for WildBrain CPLG. Global Licensing revenue in Fiscal Year 2024
was $213.6 million, reflecting 1%
growth over Fiscal Year 2023.
Legacy WildBrain Spark revenue in Q4 2024 was $6.9 million compared to $10.3 million in Q4 2023. Kids continue to be
highly engaged on our YouTube network, with over 64 billion minutes
of videos watched in the quarter and strong engagement in the
average duration of viewing. The YouTube network saw revenue growth
in the quarter which was offset by the production headwinds seen in
the broader content industry. Legacy WildBrain Spark had revenue of
$45.2 million, compared to
$47.1 million in Fiscal Year
2023.
Gross margin1 for Q4 2024 was 46%, consistent with
gross margin of 46% in Q4 2023. Gross margin for Q4 2024 was
$59.5 million, an increase of
$2.0 million, compared to
$57.5 million for Q4 2023. Fiscal
Year 2024 consolidated gross margin was $221.1 million, a decrease of $20.4 million, compared to $241.5 million in Fiscal Year 2023.
Cash provided by operating activities in Q4 2024 was
$18.3 million, compared to
$30.4 million provided by operating
activities in Q4 2023. Fiscal Year 2024 cash provided by operating
activities was $73.6 million,
compared to $94.2 million in Fiscal
Year 2023. Free Cash Flow1 was negative $6.6 million in Q4 2024, compared with Free Cash
Flow of positive $16.9 million in Q4
2023. Fiscal Year 2024 Free Cash Flow was negative $29.5 million, compared to positive $29.8 million in Fiscal Year 2023.
Adjusted EBITDA1 was up 25% to $23.9 million in Q4 2024, compared with
$19.1 million in Q4 2023. The
increase in the quarter was driven by higher gross margin dollars
and a reduction in SG&A. Adjusted EBITDA in Fiscal Year 2024
was $87.6 million, compared to
$97.9 million in Fiscal Year
2023.
Q4 2024 net loss was
$80.7 million compared to net loss of
$44.4 million in Q4 2023. The change
was primarily driven by a non-cash impairment charge of intangible
assets in relation to our Television Business segment and
investments in film and television and acquired and library
content, offset by higher income tax recovery, higher gross margin
dollars, lower SG&A, and a change in fair value of embedded
derivatives in the current quarter. Fiscal Year 2024 net loss was
$106.0 million, compared to net loss
of $45.6 million in Fiscal Year
2023.
|
1. Adjusted EBITDA, Adjusted EBITDA attributable to
WildBrain, Gross Margin and Free Cash Flow are non-GAAP financial
measures - see below for further details.
|
Q4 2024 Conference Call
The Company will hold a conference call on September 18, 2024 at 10:00 a.m. ET to discuss the results.
To immediately join the call by phone on that date without
operator assistance, please use the following URL to receive an
automated instant call back connecting you into the conference:
https://link.meetingpanel.com/?id=93436
Alternatively, you may dial direct to be entered into the call
by an operator, referencing conference ID 93436 at +1 (888)
510-2154 in North America or +1
(437) 900-0527 internationally.
If dialing in, please allow 10 minutes to be connected to the
conference call.
Replay will be available after the call on +1 (888) 660-6345 or
+1 (289) 819-1450, under passcode 93436#, until September 25, 2024.
The audio and transcript will also be archived on our website
approximately three business days following the event.
For more information, please contact:
Investor Relations: Kathleen Persaud - VP, Investor
Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089
Media: Shaun Smith - Sr.
Director, Global Communications & Public Relations,
WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations through the wonder of
storytelling. As a leader in 360° franchise management, we are
experts in content creation, audience engagement and global
licensing, cultivating and growing love for our own and partner
brands with kids and families around the world. With approximately
14,000 half-hours of filmed entertainment in our library—one of the
world's most extensive—we are home to such treasured franchises as
Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Caillou, Inspector Gadget and
Degrassi. WildBrain's mission is to create exceptional
entertainment experiences that captivate and delight fans both
young and young at heart.
Our studios produce such award-winning series as The Snoopy
Show; Snoopy in Space; Strawberry Shortcake: Berry in the Big City;
Sonic Prime; Chip and Potato; Teletubbies Let's Go! and
many more. Enjoyed in more than 150 countries on over 500
platforms, our content is everywhere kids and families view
entertainment, including YouTube, where our network has garnered
over 1.5 trillion minutes of watch time. Our television group owns
and operates some of Canada's
most-viewed family entertainment channels. WildBrain CPLG, our
leading consumer-products and location-based entertainment agency,
represents our owned and partner properties in every major
territory worldwide.
WildBrain is headquartered in Canada with offices worldwide and trades on
the Toronto Stock Exchange (TSX: WILD). Visit us at
wildbrain.com. Visit us at wildbrain.com.
Forward-Looking Statements
This press release may contain forward-looking information
within the meaning of applicable securities legislation, which
reflects WildBrain's current assumptions and expectations regarding
future events as at the time they are made. The words "will",
"expects", "anticipates", "believes", "plans", "intends" and
similar expressions are often intended to identify forward-looking
information, although not all forward-looking information contains
these identifying words. Although the Company believes that the
assumptions and factors used in preparing, and the expectations
contained in, the forward-looking information and statements are
reasonable, undue reliance should not be placed on such information
and statements, and no assurance or guarantee can be given that
such forward-looking information and statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information and
statements. Forward-looking information is based on a number of
assumptions and is subject to a number of risks and uncertainties,
many of which are beyond WildBrain's control, which could cause
actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such
risks and uncertainties include but are not limited to: changes in
general economic, business and political conditions. WildBrain
undertakes no obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable law.
Non-IFRS Measures
In addition to the results reported in accordance with IFRS as
issued by the International Accounting Standards Board, the Company
uses various non-GAAP financial measures, which are not recognized
under IFRS, as supplemental indicators of our operating performance
and financial position. These non-GAAP 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 consistent
basis for comparison between periods. The following discussion
explains the Company's use of certain non-GAAP financial measures,
which are Adjusted EBITDA, Adjusted EBITDA attributable to the
Shareholders of the Company, Gross Margin and Free Cash Flow.
Investors are cautioned that these non-GAAP financial measures
should not be construed as an alternative measure to net income or
loss, or other measures as determined in accordance with GAAP, or
as an indicator of the Company's financial performance or a measure
of liquidity and cash flows.
"Adjusted EBITDA" means earnings (loss) before net finance
costs, income taxes, amortization of property & equipment and
right-of-use and intangible assets, amortization of acquired and
library content, equity-settled share-based compensation expense,
changes in fair value of embedded derivatives, gain/loss on foreign
exchange, reorganization, development and other expenses,
impairment of certain investments in film and television
programs/acquired and library content/P&E/intangible
assets/goodwill, and also includes adjustments for other identified
charges, as specified in the accompanying tables. Adjusted EBITDA
is not an earnings measure recognized by GAAP and does not have a
standardized meaning prescribed by GAAP; accordingly, Adjusted
EBITDA may not be comparable to similar measures presented by other
issuers. Management believes that certain lenders, investors and
analysts use Adjusted EBITDA to measure a company's ability to
service debt and meet other payment obligations, and as a common
valuation measurement in the media and entertainment industry.
Further, certain of our debt covenants use Adjusted EBITDA in the
calculation. The most comparable GAAP measure is earnings before
income taxes.
"Adjusted EBITDA attributable to the Shareholders of the
Company" means Adjusted EBITDA excluding the portion of Adjusted
EBITDA attributable to non-controlling interests.
"Gross Margin" means revenue less direct production costs
and expense of film and television produced. Gross Margin is not an
earnings measure recognized by GAAP and does not have a
standardized meaning prescribed by GAAP; accordingly, Gross Margin
may not be comparable to similar measures presented by other
issuers. Management believes Gross Margin is a useful measure of
profitability before considering operating and other expenses and
can be used to assess the Company's ability to generate positive
net earnings and cash flows. The most comparable GAAP measure is
gross profit.
"Free Cash Flow" means 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. Free Cash Flow does not have a standardized meaning
prescribed by GAAP; accordingly, Free Cash Flow may not be
comparable to similar measures presented by other issuers.
Management believes Free Cash Flow is a useful measure of the
Company's ability to repay debt, finance strategic business
acquisitions and investments, pay dividends, and repurchase shares.
The most comparable GAAP measure is cash from operating
activities.
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SOURCE WildBrain Ltd.
