In This Article:
Company Delivers Strong Q2 Performance with Growth in Revenue, Adjusted EBITDA, and Increased Free Cash Flow, Staying Aligned with Strategic Guidance
Conference call and webcast tomorrow, February 20, at 11 a.m. PT/ 2 p.m. ET
VANCOUVER, British Columbia, February 20, 2025--(BUSINESS WIRE)--Thunderbird Entertainment Group Inc. (TSXV: TBRD, OTCQX: THBRF) ("Thunderbird" or the "Company") today announced its Q2 fiscal 2025 results for the three and six-month periods ended December 31, 2024, and provided a corporate update.
Financial Summary
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Revenue increased 6% from $44.5 million to $47.2 million and 19% from $78.1 million to $92.8 million for the three and six months ended December 31, 2024. This growth is attributable to an increase in production service engagements in the quarter.
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Adjusted EBITDA ("AEBITDA")1 increased 8% from $3.9 million to $4.2 million and 30% from $6.4 million to $8.3 million for the three and six months ended December 31, 2024. AEBITDA Margins1 increased 20 basis points from 8.8% to 9.0% and 70 basis points from 8.2% to 8.9% and for the three and six months ended December 31, 2024, respectively. This increase is attributable to the growth in revenues and reduction in general and administrative costs over the comparative periods.
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Free Cash Flow1 was $0.6 million and $10.3 million for the three and six months ended December 31, 2024, respectively, representing increases of $0.2 million and $12.3 million from $0.4 million and ($2.0) million in the comparative periods a year ago. The increase is primarily attributed to the increase in deferred revenue and accounts payable, partially offset by the increase in tax credits receivable.
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Net income was $0.8 million and $2.3 million for the three and six months ended December 31, 2024, respectively, representing increases of $0.2 million and $2.4 million from the comparative periods a year ago. These increases are also attributable to the increase in revenues and reduction in general and administrative costs and amortization over the comparative periods.
Financial Outlook
The Company maintains its forecast of a return to top-line growth in fiscal 2025, targeting for 20% revenue growth and over 10% AEBITDA1 growth. The variance between revenue and AEBITDA1 growth reflects the anticipated Gross Margin1 difference associated with the types of projects being forecasted in fiscal 2025 compared to fiscal 2024. These targets are supported by a strong content pipeline, strategic investments, and signs of a stabilizing market environment.
The Company continues to search for efficiencies that will generate additional savings throughout 2025 without sacrificing the quality that the Company is known for. Thunderbird’s balance sheet remains robust, with no corporate debt, providing the financial flexibility needed to pursue growth opportunities. This strength supports the Company’s plans to invest in new content production, a key driver of future growth. By aligning its content strategy with disciplined financial oversight, Thunderbird is committed to delivering increased value to shareholders.
The Company’s fiscal 2025 outlook is based on the Company’s latest internal projections, though certain risks remain, as detailed in the Risk and Uncertainties section of the Company’s June 30, 2024 MD&A. With a clear focus on executing its strategic priorities, Thunderbird is well-positioned to succeed in a competitive and evolving market landscape.
"Thunderbird’s second-quarter performance is a testament to our incredibly hard working and talented teams," said Jennifer Twiner McCarron, CEO and Chair of Thunderbird. "We are pleased with the progress we’ve made, delivering growth, higher revenues, and continued profitability. This progress reflects the strength of the Company’s growth strategy, and its ability to adapt and be nimble in an ever-changing marketplace."
Normal Course Issuer Bid and TSX Listing Exploration
Thunderbird implemented a normal course issuer bid (the "NCIB") which is detailed in the Company’s December 4, 2024 news release, pursuant to which it may repurchase its own common shares for cancellation through the facilities of the TSX Venture Exchange (the "TSXV") in an amount not to exceed 10% of its public float, as may be permitted by the TSXV and applicable securities laws.
Through December 31, 2024, the Company did not repurchase for cancellation any common shares under the NCIB. However, the Company intends to use the NCIB opportunistically.
The Company had an existing NCIB in effect, which began on December 7, 2023 and expired on December 6, 2024 (the "Prior NCIB"). Under the Prior NCIB, the Company repurchased for cancellation an aggregate of 591,400 common shares for a total consideration of $1.2 million, representing an average price of $2.08 per common share.
The Company continues to assess initiatives aimed at enhancing shareholder returns, such as exploring the potential for an uplisting to the Toronto Stock Exchange ("TSX"). This initiative is under active consideration and proceeding as anticipated.
Thunderbird’s Fiscal 2025 Q2 Corporate Highlights
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In fiscal 2025 Q2, the Company had 21 programs in various stages of production and was working with 18 clients. Of the 21 programs in production, seven were Thunderbird IP, and 14 were service productions.
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Thunderbird Kids and Family, producing under Atomic Cartoons ("Atomic"), was in production on 15 programs, and working for 11 clients, including: Super Team Canada for Bell Media’s Crave, The Day You Begin for PBS Kids, Zombies: The Re-Animated Series for Disney+, Marvel’s Iron Man and his Awesome Friends for Disney Junior, Marvel's Spidey and His Amazing Friends (Seasons 3 and 4) for Disney Junior, among others, and Atomic original Mermicorno: Starfall for Warner Bros. Discovery.
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Thunderbird Unscripted, producing under Great Pacific Media ("GPM"), was in production on six unscripted series in Q2, including: Timber Titans (Season 2) for USA Network (Canada), Highway Thru Hell (Seasons 13 and 14) for USA Network (Canada), Rocky Mountain Wreckers (Season 1) for The Weather Channel (US) and USA Network (Canada), Extracted (Season 1) for Fox/Sony Pictures and Wild Rose Vets (Season 2) for APTN.
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Company highlights during and subsequent to the quarter included LEGO Pixar: BrickToons making the shortlist for the 2025 Kidscreen Awards in the Best Animated Series kids programming category, LEGO Star Wars: Rebuild the Galaxy being nominated for an Annie Award for Best TV / Media – Limited Series, Princess Power receiving a nomination for a GLAAD Media Award in the Outstanding Children’s Programming category, and the companion podcast for the hit series, Deadman’s Curse: Volcanic Gold, taking home a Gold 2024 Signal Award for Best History Series for the second year in a row.
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During the quarter, the Company had 20 scripted projects in active development, of which four are in paid network development.
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Subsequent to the quarter, the highly-anticipated Atomic original Mermicorno: Starfall, also recently debuted on Max in the US and on YTV in Canada, as well as on STACKTV's Teletoon+.
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Also, subsequent to the quarter, a sequel was announced for the Tubi Original Sidelined: The QB and Me. The original film, which was produced by GPM, premiered in the Fall. It brought in the platform’s highest-ever number of viewers within seven days.
Results of Operations
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| For the three months ended | For the six months ended | ||
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| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 |
| ($000’s, except per share data) | $ | $ | $ | $ |
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| Revenue | 47,175 | 44,539 | 92,844 | 78,139 |
| Expenses | 46,425 | 43,920 | 90,514 | 78,248 |
| Net income (loss) for the period | 750 | 619 | 2,330 | (109) |
| AEBITDA1 | 4,220 | 3,904 | 8,298 | 6,392 |
| AEBITDA Margin1 | 9.0% | 8.8% | 8.9% | 8.2% |
| Free Cash Flow1 | 645 | 437 | 10,314 | (1,998) |
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| Basic income per share | 0.02 | 0.01 | 0.05 | - |
| Diluted income per share | 0.01 | 0.01 | 0.04 | - |
1 These items are Non-IFRS Measures. See "Non-IFRS Measures" and "Reconciliations Tables" section of this press release for further information.
For more information, please see the financial statements and the management’s discussion and analysis (MD&A) for the Q2 results for fiscal 2025, which ended December 31, 2024, available on SEDAR+ and the Company’s website.
Thunderbird’s Q2 Fiscal 2025 Conference Call & Webcast Information
Conference Call & Webcast Information
Date: February 20, 2025
Time: 11 a.m. PT/ 2 p.m. ET
Pre-Registration:
To pre-register for this call, please go to the following link and you will receive access details via email: https://registrations.events/direct/Q4I984384
If you are unable to pre-register, please see the information for joining by webcast or telephone:
Webcast: https://events.q4inc.com/attendee/980804965
Canada Toll Free: +1 (800) 715-9871
United States (Toll-Free): +1 (800) 715-9871
All other locations: +1 (646) 307-1963
Access Code: 98438
Press *1 to ask a question, press *1 again to withdraw your question, or *0 for operator assistance.
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.
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 INC.
Thunderbird Entertainment Group Inc. is a global award-winning, full-service multiplatform production, distribution and rights management company, headquartered in Vancouver, with additional offices in Los Angeles 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. The Company develops, produces, and distributes animated, factual, and scripted content through its various content arms, including Thunderbird Kids and Family (Atomic Cartoons), Thunderbird Unscripted (Great Pacific Media) and Thunderbird Scripted. Productions under the Thunderbird umbrella include Mermicorno: Starfall, Super Team Canada, Molly of Denali, Highway Thru Hell, Kim’s Convenience, Boot Camp and Sidelined: The QB and Me. Thunderbird Distribution and Thunderbird Brands manage global media and consumer products rights, respectively, for the Company and select third parties. Thunderbird is on Facebook, X, and Instagram at @tbirdent. For more information, visit: www.thunderbird.tv.
SOURCE Thunderbird Entertainment Group Inc.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release, which has been prepared by management.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this press release contain "forward-looking information" or may be "forward-looking statements" for the purposes of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements of information may be identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "plan", "project", "should", "believe", "intend", or similar expressions concerning matters that are not historical facts. Examples of forward-looking statements in this press release include, but are not limited to, forecasting a return to top-line growth in fiscal 2025, forecasted 2025 growth in revenue and AEBITDA1; anticipated Gross Margin1 differences; being successful in increasing efficiencies and realizing additional savings throughout fiscal 2025; successfully investing in new content production; aligning content strategy with disciplined financial oversight to deliver increased value to shareholders; abilities to execute strategic priorities; the ability to succeed in a competitive and evolving market landscape; uplisting to the TSX, the strength of the Company’s growth strategy, the ability to adapt and be nimble in an ever-changing marketplace; or continuing use of the NCIB.
Financial outlook and future-oriented financial information, as with forward-looking statements generally, are, without limitation, based on the assumptions and estimates and subject to various risks. The targets, forecasts and projections included herein, and the related assumptions, involve known and unknown risks and uncertainties that may cause actual results to differ materially. While management of Thunderbird believes there is a reasonable basis for these targets, forecasts and projections, such targets, forecasts, or projections may not be achieved. The Company’s actual financial position and results of operations may differ materially from management’s current expectations and, as a result, among other things, the Company’s future revenue and AEBITDA1 may differ materially from the financial outlooks and future-oriented information provided in this news release. Accordingly, investors are cautioned not to place undue reliance on the foregoing information.
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; market segment conditions; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; product capability and acceptance; international risk and currency exchange rates; and technology changes. An assessment of these risks that could cause actual results to materially differ from current expectations is contained in the "Risks and Uncertainties" section of the Company’s June 30, 2024, MD&A. The foregoing is not an exhaustive list. Additional risks and uncertainties not presently known to Thunderbird or that management believes to be less significant may also adversely affect the Company. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements contained in this document (including statements containing future-oriented financial information) are reasonable, undue reliance should not be placed on these statements, which represent the Company’s views as of the date hereof and therefore such information should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained in this press release, whether because of new information, future events or otherwise, unless so required by applicable securities laws. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements.
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 and therefore do not have standardized meanings prescribed by IFRS, as supplemental indicators of our operating performance and financial position. The Company’s method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. 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 AEBITDA, Free Cash Flow, AEBITDA Margins and Gross Margins.
"AEBITDA" 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. AEBITDA is 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. The most directly comparable measure under IFRS is net income.
"Free Cash Flow" is calculated based on cash flows from operations, purchase of property and equipment and net interim production financing. Free Cash Flow represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. The most directly comparable measure under IFRS is cash flows from operations.
"AEBITDA Margins" is calculated as a ratio of AEBITDA over total revenues. Margin is a non-IFRS ratio when applied to non-IFRS financial measures.
"Gross Margin" is calculated as a ratio of revenue that exceeds direct operating costs. Management considers Gross Margin a useful indicator of profitability before operating and other expenses, aiding in the assessment of the Company's ability to generate net earnings and cash flow. The most directly comparable measure under IFRS is gross profit.
Non-IFRS Measures Reconciliations
The following table presents the reconciliation from net income (loss) to EBITDA and AEBITDA, for the three and six months ended December 31, 2024 and 2023.
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| For the three months ended | For the six months ended | ||
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| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 |
| ($000’s) | $ | $ | $ | $ |
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| Net income (loss) for the period | 750 | 619 | 2,330 | (109) |
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| Income tax expense (recovery) | 493 | (383) | 1,692 | (225) |
| Deferred income tax expense (recovery) | 220 | 947 | (577) | 654 |
| Finance costs |
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| Interest expense (income) | (155) | 104 | 215 | 631 |
| Dividends on redeemable preferred shares | 7 | 7 | 15 | 15 |
| Amortization |
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| Property and equipment | 412 | 488 | 772 | 985 |
| Right-of-use assets | 1,468 | 1,785 | 3,039 | 3,688 |
| Intangible assets | 68 | 67 | 136 | 135 |
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| 2,513 | 3,015 | 5,292 | 5,883 |
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| EBITDA | 3,263 | 3,634 | 7,622 | 5,774 |
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| Share-based compensation | 269 | 247 | 358 | 429 |
| Unrealized foreign exchange loss (gain) | 619 | (143) | 502 | 52 |
| Loss (gain) on disposal of property and equipment | - | 6 | (356) | 6 |
| Loss (gain) on termination of leases | - | 29 | - | (25) |
| Restructuring and other costs | 69 | 131 | 172 | 156 |
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| 957 | 270 | 676 | 618 |
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| AEBITDA | 4,220 | 3,904 | 8,298 | 6,392 |
The following table presents the reconciliation from cash flows from operations to Free Cash Flow, for the three and six months ended December 31, 2024 and 2023.
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| For the three months ended | For the six months ended | ||
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| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 |
| ($000’s) | $ | $ | $ | $ |
| Cash inflows from operations | 11,687 | 18,204 | 22,549 | 20,221 |
| Net financing (purchase) of property and equipment | (477) | 737 | (764) | (222) |
| Net repayment of interim production financing | (10,565) | (18,504) | (11,471) | (21,997) |
| Free Cash Flow | 645 | 437 | 10,314 | (1,998) |
The following table presents the reconciliation from gross profit to Gross Margin, for the three and six months ended December 31, 2024 and 2023.
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| For the three months ended | For the six months ended | ||
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| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 |
| ($000’s) | $ | $ | $ | $ |
| Revenue | 47,175 | 44,539 | 92,844 | 78,139 |
| Direct Operating | 37,106 | 34,645 | 73,832 | 60,358 |
| Gross Profit | 10,069 | 9,894 | 19,012 | 17,781 |
| Gross Margin | 21.3% | 22.2% | 20.5% | 22.8% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219257098/en/
Contacts
For further information, please contact:
Investor Relations Contact:
Glen Akselrod, Bristol Capital
Phone: + 1 905 326 1888 ext 1
Email: glen@bristolir.com
Media Relations Contact:
Lana Castleman, Director, Marketing & Communications
Phone: 416-219-3769
Email: lcastleman@thunderbird.tv
Corporate Communications
Julia Smith, Finch Media
Email: Julia@finchmedia.net