Adjusted EBITDA of
Net income of
Announces Intent to File Notice to Commence Normal Course Issuer Bid
- Revenue of
$65.4 million for Q2 2022 compared with$62.1 million for Q2 2021, an increase of 5%, and$112.3 million for the six months endedJune 30, 2022 versus$114.6 million in the same period of 2021, a decrease of 2%. - Adjusted EBITDA1 of
$7.8 million for Q2 2022 versus$2.7 million for Q2 2021, an increase of 185%, and$1.7 million for the six months endedJune 30, 2022 versus$1.1 million in the same period of 2021, an increase of 54%. - Net income of
$4.6 million for Q2 2022 compared with net loss of$8.8 million for Q2 2021, an increase of$13.4 million , and net loss of$7.8 million for the six months endedJune 30, 2022 compared to a net loss of$13.8 million in the same period of 2021, an increase of$6.1 million . - Debt-free2 with total cash at
June 30, 2022 of$100.8 million . - Generated positive Free Cash Flow1 in the six months ended
June 30, 2022 of$7.6 million as compared to negative Free Cash Flow1 in same period of 2021 of$44.0 million .
"This quarter we saw continued momentum across our business units with more than 40 shows in various stages of production and more greenlit to start in the second half of the year," said
_________________________________ |
1 See "Non-IFRS measures |
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. |
Boat Rocker continues to see high overall activity levels across its three reporting segments: Television, Kids and Family, and Representation. The Kids & Family division, in particular, saw 61% quarter over quarter revenue growth. For 2022, the Company is producing high-quality scripted, unscripted and Kids and Family titles for major buyers around the world including Netflix, Apple TV+, AMC, The ROKU Channel, Amazon Freevee, Nickelodeon and Discovery+ as well as key domestic platforms including CTV, CBC and Global.
Recent highlights include:
Television
- Recently announced the early renewal of the second season of sci-fi series Beacon 23 for Spectrum and AMC.
Krysten Ritter (Breaking Bad,Jessica Jones ) will star in Orphan Black: Echoes, the highly anticipated spin-off series of international hit show Orphan Black.- Near-fi scripted series
Robyn Hood began production inToronto & Hamilton in June. The original series for Corus is created by and directed by frequent Drake collaborator, Director X and written by award winning screenwriter,Chris Roberts (OrphanBlac k). Boat Rocker is distributing the show internationally. - Season two of Boat Rocker's premium scripted drama series, American Rust, starring Emmy winner
Jeff Daniels and Golden Globe winnerMaura Tierney , has been picked up by Amazon Freevee. The show will be produced and distributed worldwide by Boat Rocker and stream exclusively on Amazon Freevee. Insight Productions has wrapped up production on the first season ofCanada's Ultimate Challenge for the CBC. The series is set to premiere in winter 2023.- Downey's Dream Cars, (working title), featuring
Robert Downey Jr ., is being produced by Team Downey and Matador Content and is expected to launch in late 2022 on the Warner Bros. Discovery streaming platform. - Matador Content also received a greenlight from Hulu for Drag Me to Dinner, a new cooking series created and executive produced by and featuring
Neil Patrick Harris andDavid Burtka . The new series is slated to premiere on Hulu in 2023.
Kids & Family
Dino Ranch remains the #1 preschoolU.S. cable show for kids aged two to five in its7pm time slot.- All new season two episodes of
Dino Ranch premieredJuly 22 nd on Disney Junior in theU.S. Dino Ranch is now available to view in 170 countries with a total of 45 licensee partners globally joining the excitement in bringing theDino Ranch world to life through toys, apparel, publishing, costumes, footwear, bedding, and more. - Rebel Cheer Squad: A Get Even Series, the teen thriller series adapted from the book series "Don't Get Mad" by
Gretchen McNeil , premiered on Netflix worldwide in July. Amber Brown premiered on Apple TV+ onJuly 29 th. FromEmmy Award-nominated writer and directorBonnie Hunt and based on the bestselling book series byPaula Danziger , with over 10 million copies in print.
Representation
- Untitled clients were associated with numerous projects which received Emmy nominations, including 5 acting nominations for Untitled clients:
Jean Smart - Lead Actress in a Comedy Series – HacksChristina Ricci –Supporting Actress in a Drama Series – YellowjacketsRhea Seehorn - Supporting Actress in a Drama Series – Better Call SaulAlexandra Daddario – Supporting Actress in a Limited Series or TV Movie – The White LotusConnie Britton - Supporting Actress in a Limited Series or TV Movie – The White Lotus- Untitled added a number of new clients in Q2, including singer/songwriter
Robbie Williams ,Denis Hamill (writer/Co-Producer on Law & Order: SVU), and Dave Needham (story artist and Pixar director associated with projects including Trolls andBoss Baby ). - Buried in Barstow, starring Untitled client
Angie Harmon and produced by Untitled, premiered on Lifetime to strong ratings.
As part of its ongoing capital allocation strategy, the board of directors has approved Boat Rocker filing with the
Selected Financial Information | |||
(Amounts in thousands CAD) | Three months ended | ||
2022 | 2021 | % change | |
Revenue | |||
Television | 36,736 | 41,669 | (12) % |
Kids and Family | 19,112 | 11,843 | 61 % |
Representation | 9,585 | 8,576 | 12 % |
Total revenue | 65,433 | 62,088 | 5 % |
Net income (loss) | 4,557 | (8,819) | 152 % |
Adjusted EBITDA* | 7,813 | 2,746 | 185 % |
(Amounts in thousands CAD) | Six months ended | ||
2022 | 2021 | % change | |
Revenue | |||
Television | 55,489 | 72,223 | (23) % |
Kids and Family | 38,615 | 24,310 | 59 % |
Representation | 18,178 | 18,049 | 1 % |
Total revenue | 112,282 | 114,582 | (2) % |
Net income (loss) | (7,775) | (13,835) | 44 % |
Adjusted EBITDA* | 1,652 | 1,072 | 54 % |
* See "Non-IFRS Measures" |
Revenue for Q2 2022 was
Adjusted EBITDA* for Q2 2022 was
Net income for Q2 2022 was
*Adjusted EBITDA is a non-IFRS measure. See "Non-IFRS Measures" below. |
Total cash at
(Amounts in thousands CAD) |
| % change | |||
Cash Available for Use* | $ 38,884 | $ 57,247 | (32) % | ||
Cash Required for Use in Productions* | 61,940 | 39,703 | 56 % | ||
Total cash, net of restricted cash | $ 100,824 | $ 96,950 | 4 % |
*Cash Available for Use and Cash Required for Use in Productions are non-IFRS measures. See "Non-IFRS Measures" below. |
Management continues to forecast meaningful Adjusted EBITDA* growth and margin expansion in 2022. Boat Rocker commenced the year with an expectation that full-year Adjusted EBITDA* would be in the range of
For 2022, as in 2021, the Company expects financial results to continue to improve in the second half of the year, supported principally by anticipated deliveries and the beginnings of a meaningful contribution from consumer products revenue. Revenue results may fluctuate from year to year depending on production budgets, the relative mix of service productions and owned IP on the Company's slate, and the timing of greenlights and deliveries. Boat Rocker remains focused on annual Adjusted EBITDA* as the most important measure of the Company's performance, as well as Adjusted EBITDA* growth over multiple years given the length of the Company's production cycles. The expected improvement in performance is based on certain assumptions which are outlined in the Company's annual MD&A dated
Management expects demand for new and returning series to remain robust through the balance of 2022. Boat Rocker anticipates growth in each segment over the long term, including greater revenue from consumer products which is expected to contribute to higher margins, and further synergies attributable to Boat Rocker's enhanced scale. With its diverse content creation engine and long track record of successfully delivering multi-genre programming at all budget levels to the world's leading broadcasters and streamers, Boat Rocker believes that it is well positioned to capitalize on the demand for high quality programming.
* See "Non-IFRS Measures" |
Boat Rocker management will host a conference call to discuss its fiscal second quarter financial results at
https://www.boatrocker.com/investor-relations/events-and-presentations/default.aspx. Listeners should access the webcast or call 10-15 minutes before the start time to ensure they are connected.
Boat Rocker (TSX: BRMI) is the home for creative visionaries. An independent, integrated global entertainment company, Boat Rocker'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 & Family television production, distribution, brand & franchise management, a world-class animation studio, and talent management through
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, 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 adjusted for amortization of non-cash program intangibles, change in fair value of financial assets, other financial liabilities related to put options, certain other financial liabilities, convertible debt and contingent consideration, share-based compensation, IPO and transaction-related costs, 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 and unrealized gain or loss on forward currency contracts. Adjusted EBITDA includes the gain on remeasurement of other financial liabilities as the gain is directly related to a production and is considered by management to be operational. Adjusted EBITDA is used by management as a measure of the Company's operating performance. For further details refer to the "Reconciliation of non-IFRS Measures" section of this press release.
Cash Available for Use is defined as the total cash and cash equivalents 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 demand loans 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.
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
The Company uses the non-IFRS measure Adjusted EBITDA to evaluate performance. The following tables present the reconciliation from net income (loss) to Adjusted EBITDA for the three and six months ended
(Amounts in thousands CAD) | Three months ended | ||||
2022 | 2021 | ||||
Net income (loss) | 4,557 | (8,819) | |||
Amortization of property and equipment, right-of-use assets and | 4,413 | 4,849 | |||
Finance costs, net | 1,316 | 727 | |||
Income taxes | 652 | 724 | |||
EBITDA* | 10,938 | (2,519) | |||
Adjustments: | |||||
Change in fair value of contingent consideration1 | (6,533) | 139 | |||
Change in fair value of unsettled forward exchange contracts2 | 867 | 66 | |||
Change in fair value of other financial liabilities3 | 1,476 | 1,879 | |||
Amortization of acquired program intangibles4 | 630 | 966 | |||
IPO and transaction-related costs5 | — | 972 | |||
COVID-19 related costs6 | — | 851 | |||
Share-based compensation7 | 370 | 239 | |||
Reorganization costs8 | 65 | 153 | |||
Adjusted EBITDA* | 7,813 | 2,746 | |||
* See "Non-IFRS Measures" |
Note: Adjusted EBITDA as previously reported included the change in fair value of unsettled forward exchange contracts and excluded the change in fair value of financial assets. Adjusted EBITDA for the three months ended |
____________________________________ |
1 Change in value of contingent consideration represents the non-cash expense associated with certain acquisitions. |
2 Change in fair value of the unrealized forward currency contracts. |
3 Change in fair value of other financial liabilities represents the non-cash expenses on certain put options and accretion and and changes in fair value on other liabilities. |
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 such as the Company's IPO, acquisitions, and special projects which are non-recurring and are not related to or are not reflective of regular business operation. |
6 Incremental non-recoupable production costs specifically incurred due to COVID-19. |
7 Non-cash expenses associated with share-based compensation granted to certain officers and employees. |
8 Restructuring charges primarily related to personnel costs. |
(Amounts in thousands CAD) | Six months ended June | ||||
2022 | 2021 | ||||
Net income (loss) | (7,775) | (13,835) | |||
Amortization of property and equipment, right-of-use assets and | 8,772 | 9,528 | |||
Finance costs, net | 2,552 | 3,002 | |||
Income taxes | (100) | 587 | |||
EBITDA* | 3,449 | (718) | |||
Adjustments: | |||||
Change in fair value of convertible debt9 | — | (4,382) | |||
Change in fair value of contingent consideration10 | (6,533) | 266 | |||
Change in fair value of unsettled forward exchange contracts11 | (482) | 309 | |||
Change in fair value of other financial liabilities12 | 2,791 | 1,315 | |||
Gain on settlement of loans and borrowings13 | — | (2,334) | |||
Amortization of acquired program intangibles14 | 1,260 | 1,678 | |||
IPO and transaction-related costs15 | — | 972 | |||
COVID-19 related costs16 | — | 851 | |||
Share-based compensation17 | 1,007 | 2,769 | |||
Reorganization costs18 | 160 | 346 | |||
Adjusted EBITDA* | 1,652 | 1,072 | |||
* See "Non-IFRS Measures" |
______________________________________ |
9 Change in fair value of convertible debt represents the non-cash gain on the conversion of certain debentures issued by the Company. |
10 Change in value of contingent consideration represents the non-cash expense associated with certain acquisitions. |
11 Change in fair value of the unrealized forward currency contracts. |
12 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. |
13 Non-cash gain recorded on the settlement of the Company's loans and borrowings. |
14 Amortization of program intangibles acquired in business combinations included in production, distribution and service costs. |
15 Includes professional fees and other expenses related to transactions such as the Company's IPO, acquisitions, and special projects which are non-recurring and are not related to or are not reflective of regular business operation. |
16 Incremental non-recoupable production costs specifically incurred due to COVID-19. |
17 Non-cash expenses associated with share-based compensation granted to certain officers and employees. |
18 Restructuring charges primarily related to personnel costs. |
Note: Adjusted EBITDA as previously reported included the change in fair value of unsettled forward exchange contracts and excluded the change in fair value of financial assets. Adjusted EBITDA for the six months ended |
SOURCE
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