Boat Rocker Media Reports First Quarter 2024 Financial Results
Selected Financial Highlights
- Q1 revenue of
$51.3 million versus$79.8 million in Q1 2023, a decrease of 35.7%. - Q1 Adjusted EBITDA1 of
$3.2 million versus a loss of$1.8 million in Q1 2023, an increase of 279.7%. - Net loss of
$2.5 million in Q1 versus a net loss of$9.5 million in Q1 2023, an improvement of$7.0 million . - Debt-free2 with total cash at
March 31, 2024 of$98.2 million , including$35.9 million of Cash Available for Use3.
"The media and entertainment industry continues to seek its footing post-strikes but as our solid Q1 earnings demonstrate, there are signs of resilience," said
______________________________ |
1
This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three months ended |
2 The Company currently has no corporate term debt, only interim production financing (including through two borrowing base facilities) in the ordinary course of operations. |
3
This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three months ended |
Selected Content Highlights
Television
Scripted
-
Palm Royale, starring
Kristen Wiig ,Ricky Martin , withLaura Dern ,Allison Janney , and extra special guest starCarol Burnett , premiered as the #1 show on Apple TV+'s Top 10. -
American Rust: Broken Justice, starring
Jeff Daniels andMaura Tierney , premiered in Amazon Prime Video's Top 10 television series and movies. -
Beacon 23, starring
Lena Headey andStephan James , premiered in Amazon Prime Video Canada's Top 10 television series. Season two of Beacon 23 also premiered on MGM+ in theU.S. onApril 7 th. -
Orphan Black: Echoes is premiering on ITVX in the
UK onMay 16 th and onJune 23 rd on AMC, AMC+, and BBC America. - Production is underway in
Ireland on Video Nasty, a new scripted series co-production with Deadpan Pictures. - Co-producing international live action scripted series
Mix Tape withIreland's Suboptica andAustralia's Aquarius Films for Binge/Foxtel inAustralia . Boat Rocker will also distribute the series internationally.
Unscripted
-
Downey's Dream Cars, starring Oscar-winner
Robert Downey Jr ., secured two Daytime Emmy nominations for Sound Mixing/Sound Editing and Lifestyle Program. - Season two of
Canada's Ultimate Challenge premiered on CBC onApril 28 th. -
War Game was selected as the closing night film at the Doc10
Chicago film festival. - Partnered with
Shark Teeth Films to distribute three upcoming unscripted shows, Secrets in the Ice season four and new factual series Discovered By Disaster and Secrets in the Dark.
Kids and Family
-
The Next Step season nine premiered on YTV and CBBC on
May 13 th. - Production continues on
Dino Ranch season three (Disney+, CBC), The Sunnyridge 3 (Disney EMEA), and The Loud House season eight (Nickelodeon).
Representation
- Nine Untitled clients participated in films selected for the 77th
Cannes Film Festival includingUma Thurman (OhCanada ),Demi Moore (The Substance),Hunter Schafer (Kinds of Kindness), andDiane Kruger (The Shrouds). - Client
Laura Dern to joinGeorge Clooney andAdam Sandler in a new untitled Netflix film directed byNoah Baumbach . - Untitled clients' work was recognized with 10 2024 Tony Award nominations including
Jessica Lange , Best Leading Actress in a Play in Mother Play, LaChanze in Best New Play nominee Jaja's African Hair Braiding and Best New Musical nominee The Outsiders, andLeslie Odom Jr ., Best Leading Actor in a Play in Purlie Victorious.
Selected Financial Information
(Amounts in thousands CAD) |
Three months ended |
|||
|
2024 |
|
2023 |
% change |
Revenue |
|
|
|
|
Television |
30,393 |
|
54,460 |
(44) % |
Kids and Family |
12,625 |
|
15,671 |
(19) % |
Representation |
8,294 |
|
9,629 |
(14) % |
Total revenue |
51,312 |
|
79,760 |
(36) % |
Net income (loss) |
(2,486) |
|
(9,474) |
74 % |
Adjusted EBITDA* |
3,182 |
|
(1,771) |
280 % |
*This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three months ended |
Financial Review
Revenue for the three months ended
Adjusted EBITDA* for the three months ended
Net loss for the three months ended
Total cash at
(Amounts in thousands CAD) |
|
|
|
|
$ change |
|
% change |
Cash Available for Use* |
$ 35,929 |
|
$ 37,048 |
|
$ (1,119) |
|
(3) % |
Cash Required for Use in Productions* |
62,293 |
|
35,493 |
|
26,800 |
|
76 % |
Total cash |
$ 98,222 |
|
$ 72,541 |
|
$ 25,681 |
|
35 % |
*This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three months ended |
Outlook
Owing to challenging industry-wide trends exacerbated by the 2023 WGA and
Anticipating the improvement of macroeconomic dynamics, Boat Rocker is continuing to implement a content-first strategy with an increased focus on developing owned IP, particularly in scripted television and premium documentary programming, and its exploitation internationally. As part of this strategy, Boat Rocker is pursuing more international co-production and completion financing opportunities. These capabilities round out the Company's diversified portfolio, which will continue to include healthy margin service work across scripted, unscripted and kids and family content and steady performance in its Representation segment.
With
Boat Rocker's content strategy is supported by sound operational management and a continued focus on prudent cost management across production and corporate. In addition, Boat Rocker's balance sheet remains strong, with no corporate debt** and a healthy cash position.
The Company's expected future performance is based on certain assumptions that are outlined in the Company's MD&A dated
*This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three months ended
**The Company currently has no corporate term debt, only interim production financing (including through two borrowing base facilities) in the ordinary course of operations.
Fiscal 2024 First Quarter Conference Call
Boat Rocker management will host a conference call to discuss its fiscal first quarter financial results at
The audio webcast can be accessed at https://emportal.ink/3xjumXB or on the Company's investor relations page at https://www.boatrocker.com/investor-relations/events-and-presentations/event-details/2024/Q1-2024-Conference-Call/default.aspx
Or to participate by phone, dial 416-764-8650 (Local) or 888-664-6383 (North American Toll-Free).
Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.
To access a replay of the call, dial 416-764-8677 (Local) or 1-888-390-0541 (North American Toll-Free), Access Code 639723#. The replay will be available until midnight (EDT) on
About Boat Rocker
Boat Rocker (TSX: BRMI) is the home for creative visionaries. An independent, integrated global entertainment company, the Company's purpose is to tell stories and build iconic brands across all genres and mediums. With offices around the world, Boat Rocker's creative and commercial capabilities include Scripted, Unscripted, and Kids and Family television production, distribution, brand & franchise management, a world-class animation studio, and talent management through
Non-IFRS Measures
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS. The intent of using non-IFRS measures is to provide investors with supplemental measures of the Company's operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures, in addition to providing a greater understanding of the Company's liquidity position and available financial resources. The Company's management uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets, and to determine components of management compensation. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.
Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our MD&A. Such reconciliations can also be found in this press release under the heading Reconciliation of Non-IFRS Measures. The non-IFRS measures the Company uses include: EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Cash Available for Use, and Cash Required for Use in Productions.
EBITDA is defined as net income or loss before interest, taxes, depreciation, amortization of property and equipment, right-of-use assets and other intangible assets.
Adjusted EBITDA is defined as EBITDA before certain expenses, costs, charges or benefits incurred in the period which in management's view are not indicative of continuing operations, including: amortization of non-cash program intangibles, change in fair value of other financial liabilities related to put options, certain other financial liabilities, convertible debt and contingent consideration, share-based compensation, professional and consulting fees relating to non-core operating activities, non-recoupable COVID-19 costs, goodwill impairment, reorganization costs, loss on debt modifications, gain on settlement of loans and borrowings, gain or loss on sale of assets, unrealized gains or losses on foreign exchange, unrealized gains or losses on forward currency contracts, and other costs not indicative of the Company's core operating results. Adjusted EBITDA is used by management as a measure of the Company's operating performance.
Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenue, expressed as a percentage.
Cash Available for Use is defined as the total cash of the Company less Cash Required for Use in Productions. Cash Available for Use funds ongoing working capital requirements, principal and interest payments on corporate debt as well as ongoing development and growth efforts and thus is an important liquidity measure that management uses to monitor the business on an ongoing basis.
Cash Required for Use in Productions is defined as cash required for the funding of productions in progress that is not considered by the Company to be available for other uses. The cash is not legally restricted and has not been classified as Restricted Cash on the consolidated statement of financial position. This cash has been provided by buyers and third-party IP owners that have engaged the Company to provide services, as well as banks with whom Boat Rocker has contracted to provide interim production financing. Management uses the amount of Cash Required for Use in Productions to determine the Company's Cash Available for Use.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities laws, which reflects the Company's current expectations regarding future events. Forward-looking information is based on a number of assumptions, many of which are beyond the Company's control. Such assumptions include, but are not limited to, the factors discussed under "Outlook" in the Company's annual MD&A dated
Reconciliation of Non-IFRS Measures
The Company uses the non-IFRS measure Adjusted EBITDA to evaluate performance. The following table presents the reconciliation from net income (loss) to Adjusted EBITDA* for the three months ended
(Amounts in thousands CAD) |
|
Three Months Ended |
||
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(2,486) |
|
(9,474) |
Amortization of property and equipment, right-of-use assets and other intangible assets |
|
3,331 |
|
3,761 |
Finance costs, net |
|
1,588 |
|
1,556 |
Income taxes |
|
(47) |
|
(161) |
EBITDA* |
|
2,386 |
|
(4,318) |
|
|
|
|
|
Adjustments: |
|
|
|
|
Change in fair value of unsettled forward exchange contracts1 |
|
201 |
|
(273) |
Change in fair value of other financial liabilities2 |
|
(888) |
|
1,537 |
Unrealized (gains) losses on foreign exchange3 |
|
(199) |
|
278 |
Amortization of acquired program intangibles4 |
|
105 |
|
365 |
Transaction-related and other costs5 |
|
425 |
|
129 |
Share-based compensation6 |
|
430 |
|
274 |
Reorganization costs7 |
|
722 |
|
237 |
Adjusted EBITDA* |
|
3,182 |
|
(1,771) |
|
|
|
|
|
* See "Non-IFRS Measures" |
Note: Adjusted EBITDA as previously reported included the unrealized gains and losses on foreign exchange other than the change in fair value of unsettled forward exchange contracts. Management considers that all unrealized gains or losses on foreign exchange should be excluded from Adjusted EBITDA as they are not reflective of the Company's performance until such time that the amounts become realized. Adjusted EBITDA for the three months ended |
______________________________ |
1 Change in fair value of the unrealized forward currency contracts. |
2 Change in fair value of other financial liabilities represents the non-cash expenses on certain put options and accretion and changes in fair value on other liabilities. |
3 Movements in balances denominated in non-functional currencies not yet realized through settlement. |
4 Amortization of program intangibles acquired in business combinations included in production, distribution and service costs. |
5 Includes professional fees and other expenses related to transactions and special projects which are not related to or are not reflective of regular business operations; comparative period amounts include incremental non-recoupable production costs specifically incurred due to COVID-19. |
6 Non-cash expenses associated with share-based compensation granted to certain officers, directors and employees. |
7 Restructuring charges primarily related to personnel costs. |
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