Year End Adjusted EBITDA1 of
Total Cash of
__________________________ |
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 our MD&A for the three months and year ended |
2 Ibid. |
3 The Company currently has no corporate term debt, only interim production financing (including through two borrowing base facilities) in the ordinary course of operations. |
Selected Financial Highlights
- Full year revenue of
$475.4 million versus$304 million in 2022, an increase of 56.2%. - Full year Adjusted EBITDA of
$32.6 million versus$34.6 million , a decrease of 5.8%. - Revenue of
$65.0 million for Q4 2023 versus$111.3 million for Q4 2022, a decrease of 41.6%. - Adjusted EBITDA of
$7.6 million for Q4 2023 versus$17.3 million for Q4 2022, a decrease of 56%. - Net loss of
$26.9 million for full year 2023 versus net income of$1.8 million in 2022. The current year's net loss includes the non-cash goodwill impairment charge of$15.2 million taken in the Company's Unscripted cash generating unit (CGU) in Q3 2023.4 - Debt-free with total cash at
December 31, 2023 of$72.5 million .$37.0 million of Cash Available for Use*, an increase of$5.5 million fromDecember 31, 2022 .
______________________________ |
4 For the purposes of allocating goodwill, the Company has determined it has six groups of CGUs: Scripted, Unscripted, Insight, Kids & Family, Animation and Representation |
"We're pleased with our full year performance, particularly given the challenging industry environment we've been operating within," said
Selected Content Highlights
General
- Boat Rocker shows received 49 nominations for the 2024 Canadian Screen Awards across scripted, unscripted, and kids & family. The awards take place at the end of
May 2024 . - Extended first-look deal with TeaTime Pictures to continue to develop and produce scripted and unscripted television and digital content. TeaTime was co-founded by
Dakota Johnson andRo Donnelly . - Extended first-look deal with
Bay Mills Studios to continue to develop and produce original television projects. Bay Mills was co-founded byStephan James (Beacon 23) andShamier Anderson (Invasion). - Boat Rocker has a multi-genre content library of approximately 9,700 half hours of owned and third party IP, which it distributes to leading platforms internationally including Netflix, Apple, Roku, Amazon,
Disney ,Paramount , AMC Networks,BBC , Bell Media, Corus Entertainment, and ITV.
Television
Scripted
- Sci-fi drama series Invasion was renewed for a third season by Apple TV+. The second season spent several months on the platform's top 10 most watched shows list last year.
- American Rust: Broken Justice, as well as the show's first season, starring
Jeff Daniels andMaura Tierney , premiered on Amazon Prime in theU.S. ,UK ,Germany ,Australia ,New Zealand , andCanada onMarch 28 th, 2024. - AMC announced Orphan Black: Echoes, starring
Krysten Ritter andKeeley Hawes , will premiere inJune 2024 . - Following a strong debut on MGM+, the second season of Beacon 23 will premiere on
April 7 th, 2024. Boat Rocker also recently sold Beacon 23 season one to Amazon Prime Video, where it premiered onMarch 15 th, 2024 inCanada ,Australia ,New Zealand , and Sub-Saharan Africa. Sales were also made toParamount ,Disney & PCCW Media Entertainment for theUK ,Ireland ,Bulgaria , The Balkans,Macau , andHong Kong . - Slip was nominated for two Independent Spirit Awards: Best New Scripted Series and Best Lead Performance in a New Scripted Series for lead and show creator
Zoe Lister-Jones . - Palm Royale, starring
Kristen Wiig ,Ricky Martin , withLaura Dern ,Allison Janney , and extra special guest starCarrol Burnett , premiered on Apple TV+ onMarch 20 th, 2024.
Unscripted
- War Game, from award-winning directors
Jesse Moss andTony Gerber , had its world premiere at theSundance Film Festival inJanuary 2024 . - Producing new premium feature documentary Merchants of Joy from director
Celia Aniskovich . - Big Brother season 12 premiered on
March 5 th, 2024 on Global Television. - Intervention
Canada premiered on T+E onJanuary 15 th, 2024. The episodes will air as part of the series Intervention on A&E in late 2024. - Produced The Juno Awards, the 2024 edition of which was held on
March 24 th, 2024 inHalifax and broadcast on CBC. - Dear…
Selena Gomez won Best Primetime Program – Special or Movie at the 38th Annual Imagen Awards. - Drag Me to Dinner was nominated for both a GLAAD Award for Outstanding Reality Competition Series and a Queerties Award for Best Reality/Docuseries.
- Downey's Dream Cars, starring Oscar-winner
Robert Downey Jr ., won Best Documentary Series at the 2023 Environmental Media Awards.
Kids and Family
Dino Ranch won a 2024 Kidscreen Award for Best Holiday or Special Episode: "ADino-Might Night ."Olga Da Polga , from the author of Paddington Bear, will be distributed by Boat Rocker globally (excluding theUK ).
Representation
- Client
Penelope Cruz was nominated for aScreen Actors Guild award for Outstanding Performance by a Female Actor in a Supporting Role in Ferrari. - Client
Skyler Gisondo is set to star in the upcomingDC Studios film Superman: Legacy. - Client
Ralph Macchio will team withJackie Chan in the latest film in the Karate Kid franchise. - Forbes' "30 Under 30" (
Hollywood & Entertainment ) list includes clientsNoah Schnapp (Stranger Things) andLexi Underwood (Little Fires Everywhere).
Selected Financial Information
(Amounts in thousands CAD) | Three months ended | |||
2023 | 2022 | % change | ||
Revenue | ||||
Television | 45,021 | 74,833 | (40) % | |
Kids and Family | 13,524 | 24,462 | (45) % | |
Representation | 6,460 | 11,995 | (46) % | |
Total revenue | 65,005 | 111,290 | (42) % | |
Net income (loss) | (3,074) | 5,699 | (154) % | |
Adjusted EBITDA* | 7,565 | 17,309 | (56) % |
*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 our MD&A for the three months and year ended |
(Amounts in thousands CAD) | Year ended | |||
2023 | 2022 | % change | ||
Revenue | ||||
Television | 387,005 | 172,463 | 124 % | |
Kids and Family | 58,645 | 91,065 | (36) % | |
Representation | 29,764 | 40,753 | (27) % | |
Total revenue | 475,414 | 304,281 | 56 % | |
Net income (loss) | (26,914) | 1,796 | (1599) % | |
Adjusted EBITDA* | 32,579 | 34,571 | (6) % |
Financial Review
Revenue for Q4 2023 was $65 million versus
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* | $ 37,048 | $ 31,524 | $ 5,524 | 18 % | |||
Cash Required for Use in Productions* | 35,493 | 54,270 | (18,777) | (35) % | |||
Total cash | $ 72,541 | $ 85,794 | $ (13,253) | (15) % |
*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 our MD&A for the three months and year ended |
Outlook
Owing to challenging industry-wide trends exacerbated by the 2023 WGA and
Anticipating the improvement of macroeconomic dynamics, Boat Rocker is implementing 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 will also be 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 annual 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 our MD&A for the three months and year 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 2023 Fourth Quarter and Full Year Conference Call
Boat Rocker management will host a conference call to discuss its fiscal fourth quarter and full year financial results at
The audio webcast can be accessed via https://app.webinar.net/3k1y7LamYWX or on the Company's investor relations page at https://www.boatrocker.com/investor-relations/events-and-presentations/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 (
About Boat Rocker
Boat Rocker (TSX: BRMI) is the home for creative visionaries. An independent, integrated global entertainment company, our 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, Cash Required for Use in Productions, Free Cash Flow and Free Cash Flow Attributable to Owners of the Company.
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 | |||
2023 | 2022 | |||
Net income (loss) | (3,074) | 5,699 | ||
Amortization of property and equipment, right-of-use assets and other intangible assets | 3,469 | 6,606 | ||
Finance costs, net | 1,402 | 1,909 | ||
Income taxes | 427 | 5,226 | ||
EBITDA* | 2,224 | 19,440 | ||
Adjustments: | ||||
Change in fair value of unsettled forward exchange contracts1 | (78) | (2,031) | ||
Change in fair value of other financial liabilities2 | 1,735 | (1,426) | ||
Unrealized losses on foreign exchange3 | 915 | 149 | ||
Amortization of acquired program intangibles4 | 105 | 493 | ||
Transaction-related and other costs5 | 948 | 240 | ||
COVID-19 related costs6 | — | 77 | ||
Share-based compensation7 | 904 | (231) | ||
— | — | |||
Reorganization costs9 | 812 | 598 | ||
Adjusted EBITDA* | 7,565 | 17,309 | ||
* 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 such as the Company's IPO, acquisitions, and special projects which 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, directors and employees. |
8 Impairment of goodwill associated with the Unscripted cash generating unit. |
9 Restructuring charges primarily related to personnel costs. |
The following table presents the reconciliation from net income (loss) to Adjusted EBITDA* for the year ended
(Amounts in thousands CAD) | Year Ended | |||
2023 | 2022 | |||
Net income (loss) | (26,914) | 1,796 | ||
Amortization of property and equipment, right-of-use assets and other intangible assets | 14,478 | 19,801 | ||
Finance costs, net | 7,411 | 6,226 | ||
Income taxes | 7,109 | 5,456 | ||
EBITDA* | 2,084 | 33,279 | ||
Adjustments: | ||||
Change in fair value of contingent consideration10 | — | (6,533) | ||
Change in fair value of unsettled forward exchange contracts11 | (408) | (571) | ||
Change in fair value of other financial liabilities12 | 6,549 | 3,151 | ||
Unrealized losses on foreign exchange13 | 2,141 | (1,630) | ||
Amortization of acquired program intangibles14 | 810 | 4,005 | ||
Transaction-related and other costs15 | 1,244 | 240 | ||
COVID-19 related costs16 | 129 | 77 | ||
Share-based compensation17 | 3,437 | 1,089 | ||
15,160 | — | |||
Reorganization costs19 | 1,433 | 1,464 | ||
Adjusted EBITDA* | 32,579 | 34,571 |
* 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 year ended |
____________________________________________ |
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 Movements in balances denominated in non-functional currencies not yet realized through settlement. |
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 and special projects which are not related to or are not reflective of regular business operations. |
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, directors and employees. |
18 Impairment of goodwill associated with the Unscripted cash generating unit. |
19 Restructuring charges primarily related to personnel costs. |
SOURCE
© Canada Newswire, source