Thunderbird Entertainment Group Reports on Second Quarter Fiscal Year 2021 Results

VANCOUVER, British Columbia–(BUSINESS WIRE)–Feb 24, 2021–
Thunderbird Entertainment Group Inc. ( TSXV: TBRD, OTCQX: THBRF ) ( Thunderbird or the Company ), today announced its financial results for the second quarter ended December 31, 2020 (“Fiscal 2021”), and provided a corporate update.
Financial Highlights

  • The Company recognized revenue of $28.0 million and $47.7 million in the three and six months ended December 31, 2020, increases of 98% ($13.9 million) and 56% ($17.1 million) over the comparative periods.
  • Adjusted EBITDA was $5.2 million and $10.0 million for the three and six months ended December 31, 2020 compared to $2.0 million and $5.7 million for the comparative periods in fiscal 2020, increases of $3.2 million and $4.3 million, respectively. These increases are primarily due to growth in the Kids and Family Division.
  • Production services revenue for the three and six months ended December 31, 2020 increased by 63% ($7.4 million) and 53% ($11.7 million) over the comparative periods, due to an increase in the number and size of contracts. This revenue consists primarily of animation production services, which experienced continued growth.
  • Licensing and distribution revenues increased by 272% ($6.4 million) and 63% ($5.3 million) for the three and six months ended December 31, 2020 over the comparative periods, due mainly to the timing of delivery of the animated series The Last Kids on Earth. In the current quarter, the Company recognized revenue from 10 episodes of TheLast Kids on Earth and six episodes of the factual series Highway Thru Hell. In the comparative quarter, revenue was recognized from seven episodes of Highway Thru Hell.
  • Free cash flow was $4.4 million and $5.6 million for the three and six months ended December 31, 2020 as compared to ($3.8) million and $0.2 million for the comparative periods, increases of $8.2 million and $5.4 million, respectively.

“As we continue to grow Thunderbird into a major global studio, Q2 results further demonstrate that our long-term strategy and initiatives are paying off, with significant increases in revenue and Adjusted EBITDA, year-over-year,” said Jennifer Twiner McCarron, President and CEO of Thunderbird. “In Q2, we were in production on 21 properties – including a growing percentage of owned-IP projects that offer higher economic value and for which we fully control the rights. This, in conjunction with our new consumer products division, allows us to fully leverage the world class brands being created at Thunderbird.”
Thunderbird’s Q2 2021 Corporate Highlights

  • During the second quarter, Thunderbird had 21 programs in various stages of production. The Company’s work airs on Netflix, Peacock, Nickelodeon, AppleTV+, Hulu, PBS, Bell Media’s Discovery, Disney+, Corus Entertainment and the CBC, among others. Ten of the projects in production are Company IP or partner-managed.
  • The Factual and Scripted Division, Great Pacific Media (GPM), was in production on four series and one documentary special: Highway Thru Hell (Seasons 9 and 10), Heavy Rescue: 401 (Seasons 5 and 6), $ave My Reno (Season 4), Mud Mountain Haulers (Season 1) and The Teenager and the Lost Mayan City (Documentary for CBC). Kim’s Convenience was in production on Season 5.
  • The Kids and Family Division, Atomic Cartoons, was in various stages of production on 13 animated series, and two feature length animated productions, 15 productions in total. Productions include co-producing Mighty Express with Spin Master for Netflix , LEGO Star Wars Holiday Special for Disney+, Molly of Denali for GBH/ PBS KIDS and Trolls: TrollsTopia in partnership with Dreamworks for streaming on Hulu and Peacock. A Curious George production is also in production for Peacock.
  • Also, during the quarter, spring 2021 timing was announced for The Last Kids on Earthand the Staff of Doom video game, which is a key component of the owned-IP The Last Kids on Earth franchise.
  • Subsequent to Q2, the Company launched a Global Distribution and Consumer Products Division, bringing on industry veteran Richard Goldsmith to lead as President of Global Distribution and Consumer Products.
  • Additionally, subsequent to the quarter, Thunderbird premiered several productions including owned-IP Kim’s Convenience (Season 5), Heavy Rescue: 401 (Season 5), and Mud Mountain Haulers (Season 1). The season premiere of $ave My Reno (Season 4) has been announced for March 16, 2021. The animated series Hello Ninja (Season 4), and Mighty Express (Season 2) also premiered.
  • Subsequent to the quarter, Thunderbird was named to the 2021 TSX Venture 50, a ranking of top performing companies traded on the TSX Venture.

Financial Position

($000’s)       December 31,
2020
  June 30,
2020
             
Total assets     $ 165,337 $ 155,177
Total non-current liabilities     $ 27,357 $ 28,154
Shareholders’ equity     $ 59,302 $ 53,661
 

Results of Operations

  For the three months
ended
For the six months
ended
  Dec 31,
2020
Dec 31,
2019
Dec 31,
2020
Dec 31,
2019
($000’s, except per share data) $ $ $ $
         
Revenue 27,950 14,093 47,740 30,635
Expenses 26,422 14,399 44,744 29,601
Net income (loss) from continuing operations 1,528 (306) 2,996 1,034
Income (loss) from discontinued operation 97 (420) 16 (568)
Net income (loss) for the period 1,625 (726) 3,012 466
Foreign currency translation adjustment (19) (3) (22) (1)
Gain (loss) on translation of discontinued operation (18) 13 (62) 7
Comprehensive net income (loss) for the period 1,588 (716) 2,928 472
         
Basic income (loss) per share – continuing operations 0.032 (0.007) 0.064 0.022
Diluted income (loss) per share – continuing operations 0.030 (0.007) 0.061 0.021
Basic income (loss) per share – discontinued operation 0.002 (0.009) 0.000 (0.012)
Diluted income (loss) per share – discontinued operation 0.002 (0.009) 0.000 (0.012)
 

EBITDA, Adjusted EBITDA and Free Cash Flow

  For the three months
ended
For the six months
ended
  Dec 31,
2020
Dec 31,
2019
Dec 31,
2020
Dec 31,
2019
($000’s) $ $ $ $
         
Net income (loss) from continuing operations 1,528 (306) 2,996 1,034
         
Income tax expense 1,492 531 1,811 1,086
Deferred income tax recovery (482) (696) (423) (679)
Finance costs        
Interest 314 421 791 721
Dividends on preferred shares 18 18 36 36
Amortization        
Property and equipment 296 279 619 407
Right-of-use asset 1,614 1,436 3,537 2,418
Intangible assets 67 67 135 135
  3,319 2,056 6,506 4,124
         
EBITDA 4,847 1,750 9,502 5,158
         
Share-based compensation 223 166 343 404
Unrealized foreign exchange (gain) loss (417) 62 (702) (32)
Loss on disposal of property and equipment 736 736 11
Gain on disposal of right-of-use asset (266) (266)
Severance costs 56 283 113
Other 58 58
  334 284 452 496
         
Adjusted EBITDA 5,181 2,034 9,954 5,654
         
Cash inflows (outflows) from continuing operations 8,877 (7,060) 10,391 (1,832)
Purchase of property and equipment (347) 377 (615) (559)
(Repayment) proceeds of interim production financing (4,109) 2,913 (4,127) 2,622
Free Cash Flow 4,421 (3,770) 5,649 231

Board Transition
The Company also announced that Director and Founder Tim Gamble has made the decision, with the exceptional executive team now in place and the continued strong financial results, it is an appropriate time for him to step down from the Board to pursue other business interests.
"On behalf of Thunderbird and our Board of Directors, I want to thank Tim Gamble for his visionary leadership throughout the years. Tim always encouraged the entire leadership team to think big, operate with integrity, and to inspire with content that can positively impact our world. We proudly take this vision forward on Thunderbird’s continued journey," said Twiner McCarron.
Conference Call Webcast on February 25, 2021 at 11 a.m. PT/ 2 p.m. ET
Thunderbird will hold a conference call and webcast to share the Company’s Q2 financial results on February 25, 2021 at 11 a.m. PT/ 2 p.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: 2556969
Webcast: https://event.on24.com/wcc/r/2948485/A4BFA5D1567D7944573F1CE401B8F838
Participants joining by phone are requested to call the conference line ten 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 2556969. The teleconference replay will be available through March 11, 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), 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
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, asset impairment charges, accretion, share-based compensation, share of loss of associates, 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.
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CONTACT: Investor Relations:
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Email:glen@bristolir.com
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Email:julia@finchmedia.net
KEYWORD: NORTH AMERICA CANADA
INDUSTRY KEYWORD: OTHER ENTERTAINMENT TV AND RADIO GENERAL ENTERTAINMENT ENTERTAINMENT
SOURCE: Thunderbird Entertainment Group Inc.
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PUB: 02/24/2021 05:27 PM/DISC: 02/24/2021 05:27 PM
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