12.5% increase in quarterly dividend;
growing WildBrain's online audience & building out of global
brands expected to continue in 2017
HALIFAX, NS, Sept. 28, 2016 /PRNewswire/ - DHX Media Ltd. (or
the "Company") (NASDAQ: DHXM; TSX: DHX.A, DHX.B), the world's
leading independent, pure-play children's content
company, reports its fourth quarter and fiscal year-end
results for the period ended June 30,
2016.
"Fiscal 2016 marked another year of profitable growth for DHX
Media as we continued to benefit from the global appetite for
children's content," said Dana
Landry, CEO of DHX Media. "The Amazon deal announced
recently for more than three dozen of our shows highlights the
breadth and depth of our library. This validates the investments we
are making in key business areas to capture market share at a time
when demand for content is high. In 2017, we aim to add more
proprietary titles, grow our WildBrain network and further leverage
our well-known kids' brands as we capitalize on the shift to
on-demand viewing."
Financial
Highlights
(in millions of
Cdn$)
|
Three Months
ended
June
30,
|
Year
ended
June
30,
|
|
2016
|
2015
|
2016
|
2015
|
Revenue
|
$75.3
|
$71.2
|
$304.8
|
$264.0
|
Gross
Margin
|
$44.0
|
$37.7
|
$173.3
|
$145.0
|
Gross Margin
(%)
|
58%
|
53%
|
57%
|
55%
|
Adjusted
EBITDA1
|
$24.8
|
$22.8
|
$103.7
|
$90.2
|
Net Income
(Loss)
|
$(1.7)
|
$3.7
|
$27.7
|
$19.5
|
Adjusted Net
Income1
|
$0.49
|
$5.0
|
$32.8
|
$38.4
|
|
1Adjusted EBITDA represents income of
the Company before amortization, finance income (expense), taxes,
development expenses, impairments, share-based compensation
expense, and adjustments for other identified charges. Adjusted Net
Income adjusts net income (loss) for certain identified charges,
net of the tax affect. (See the definition of Adjusted EBITDA and
Adjusted Net Income in the Company's Fiscal 2016 Management
Discussion and Analysis for full details).
|
|
Highlights included:
- Fiscal 2016 full year revenue grew 15% to $304.8 million with adjusted EBITDA up 15% to
$103.7 million and net income rising
42% to $27.7 million, evidence of
continued strong demand for our content.
- For Q4 2016, revenue of $75.3
million was in line with management's expectation. Adjusted
EBITDA rose 9% to $24.8 million while
net loss was $1.7 million. The
net loss was significantly impacted by currency exchange
fluctuations, which resulted in an unrealized foreign exchange loss
directly attributable to the material effect the decline in the
British Pound over the Canadian Dollar had on DHX Media's foreign
exchange exposure.
- During the quarter, further investments were made to drive
continued growth in WildBrain, our Multi-Platform Kid's network,
and to take advantage of merchandise and licensing (M&L)
opportunities and global expansion of digital distribution
platforms. This contributed to an 11% increase in
distribution revenue and a 44% growth in M&L revenue in Fiscal
2016 over the prior year.
- While television revenues declined 9% for Fiscal 2016, gross
margins increased to 66% from 51% in Fiscal 2015 as a result of
lower third-party external content costs. The decline in
television revenues was within management's expectations and
aligned with a strategy to shift programming focus to better
leverage DHX Media's library.
- Investment in content continued to expand our library offering
with 215 half-hours of proprietary titles added in Fiscal
2016. This exceeded our stated annual goal of 100-200
half-hours and was up 20% from the year prior. A strong
production pipeline is planned for Fiscal 2017.
- The latest deals with Amazon Prime Video included a U.S.
exclusive for Looped, a U.K. exclusive for season one of the
new Teletubbies, and a range of catalogue titles, totalling
more than three dozen shows licensed for the U.S., U.K. and
Germany. These deals highlight the appeal of DHX's original
content and classic kids' shows for on-demand subscribers worldwide
and the robust demand for children's programming.
- DHX Media's WildBrain network is benefiting from the global
growth in ad-based video-on-demand (AVOD) platforms, which
contributed to full-year revenue rising 53% to $18.4 million from a year ago. On a
year-over-year basis, total views on WildBrain grew 79% to 6.1
billion for the 12-month period in Fiscal 2016 while watch times
increased 56% to 32.2 billion minutes, as we continue to leverage
our large content library to drive incremental revenue from new
online audiences through networks such as YouTube.
- The Teletubbies global brand rollout continues to gain
momentum. In the U.K., the new TV show is scoring high
ratings and the Teletubbies are ranked the number one new
pre-school toy property by sales (according to NPD). 23
broadcast licensees and over 85 consumer product deals worldwide
have been signed to date. Licensees are reporting strong sell
through on the first wave of products in the U.K. while the full
toy launch for the U.S. market is expected to begin January 2017.
- Strategic partnerships on Strawberry Shortcake and
Mega Man have added to our
portfolio of global brands, which hold the potential for the
company to participate across multiple revenue streams, including
production, distribution and consumer products.
Dividend Declaration
Today, the Company declared a dividend for the quarter of
$0.018, an increase of 12.5%, on each
common voting share and variable voting share outstanding to the
shareholders of record at the close of business on October 11, 2016 to be paid on October 21, 2016.
Strategy and Priorities
DHX Media's strategy has been designed with the objective of
delivering profitable growth through multiple revenue streams by
leveraging the growing global demand for children's and family
content in today's on-demand environment.
The Company is guided by three core imperatives: (1)
creating engaging children's content with the annual goal of adding
approximately 150-225 half-hours of proprietary titles; (2)
distributing its content worldwide across all media platforms, and
now specifically WildBrain by targeting global revenue streams from
our entire library and growing the views and watch times on our
WildBrain network; and (3) leveraging high-profile global brands
with increased merchandising and licensing and other ancillary
potential, which would include rollout of the new
Teletubbies series and consumer product programs into new
territories, continuing to add new distribution and M&L deals
for Teletubbies as well as advancing the development and
production of new brands.
Details of management's expectations for revenues, gross margins
and operating expenses for Fiscal 2017 can be found in the Outlook
section of the Company's Fiscal 2016 MD&A, available at
www.dhxmedia.com, on www.sedar.com or http://www.sec.gov/edgar.
Analyst call details
DHX Media will hold a conference call for analysts and investors
to discuss its Fiscal 2016 and Q4 2016 results on Wednesday, September 28, 2016 at 9:00 a.m. ET. Media are welcome to listen
in.
Conference call numbers:
To access the call, please dial +1(888) 231-8191 toll-free or
+1(647) 427-7450 internationally. Please allow 10 minutes to be
connected to the conference call.
Replay: Instant replay will be available beginning approximately
two hours after the call on +1(855) 859-2056 toll free or +1(416)
849-0833, and passcode 81868291, until 11:59 p.m. ET,
October 5, 2016.
Consolidated Statements of Income and Comprehensive Income
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income and Comprehensive Income (Loss)
Data:
|
|
|
|
|
|
|
|
|
(All numbers are in
thousands)
|
Q4 2016
|
Q4 2015
|
Fiscal
2016
|
Fiscal
2015
|
|
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
Revenue………………………………………………
|
75,332
|
71,170
|
304,817
|
264,039
|
|
|
|
|
|
|
|
Gross
Margin1…..……………………………………
|
43,966
|
37,666
|
173,134
|
145,040
|
|
|
|
|
|
|
|
Adjusted
EBITDA1…..……………………………….
|
24,822
|
22,810
|
103,180
|
90,209
|
|
|
|
|
|
|
|
Net Income
(Loss)1……….…………………………
|
(1,746)
|
3,696
|
27,502
|
19,533
|
|
|
|
|
|
|
|
Adjusted Net
Income1….…………...………………
|
489
|
5,006
|
32,398
|
38,404
|
|
|
|
|
|
|
|
Comprehensive Income
(Loss)…………………….
|
(4,329)
|
6,014
|
17,660
|
12,381
|
|
|
|
|
|
|
|
Basic Earnings (Loss)
Per Common Share……….
|
(0.01)
|
0.03
|
0.22
|
0.16
|
|
Diluted Earnings
(Loss) Per Common Share………
|
(0.01)
|
0.03
|
0.22
|
0.16
|
|
Adjusted Basic
Earnings Per Common Share…….
|
0.00
|
0.04
|
0.26
|
0.32
|
|
Adjusted Diluted
Earnings Per Common Share…...
|
0.00
|
0.04
|
0.25
|
0.31
|
|
|
|
|
|
|
|
1See "Use
of Non-GAAP Financial Measures" section of the Company's MD&A
for further details.
|
|
Fiscal 2016 Results
Revenues
Revenues for Fiscal 2016 were $304.82
million, up 15% from $264.03
million for Fiscal 2015. The increase for Fiscal 2016 was
due to higher distribution revenues (98% organic, 2% acquisitive),
accounting for 22% of the increase, strong growth in proprietary
production revenues (97% organic, 3% acquisitive), accounting for
13% of the increase, strong growth in M&L-represented revenues
(all organic), accounting for 35% of the increase, a significant
increase in producer and service fee revenues (90% organic, 10%
acquisitive), accounting for 40% of the increase, and an increase
in M&L-owned revenues (95% organic, 5% acquisitive), accounting
for 12% of the growth, offset by a decrease in DHX Television
revenues, which included twelve months of activity, versus eleven
months in Fiscal 2015, offsetting 17% of the growth, and a decrease
in new media revenues (86% organic, 14% acquisitive), offsetting 5%
of the growth.
Proprietary production revenues: Proprietary production revenues
for Fiscal 2016 were $43.31 million,
an increase of 14% (10% organic and 4% acquisitive) compared to
$38.08 million for Fiscal 2015.
Management is pleased to report that for Fiscal 2016, the Company
added 215.0 proprietary half-hours to the library, up 20% from
179.0 half-hours for Fiscal 2015, well above Management's stated
goal of adding 100-200 half-hours annually to the library. For the
Fiscal 2016, the Company added 150.0 half-hours of third party
produced titles with distribution rights (Fiscal 2015-45.0
half-hours), an increase of 233% and a direct result of the
operational synergies associated with owning DHX Television. The
proprietary production revenue was above the mid-point of
Management's most recent annual guidance as included in the Q3 2016
MD&A.
Distribution revenues: Management is pleased to report
that for Fiscal 2016, distribution revenues were up 11% to
$86.56 million (9% organic and 2%
acquisitive), from $77.67 million for
Fiscal 2015, primarily due to the continuing growth of new digital
customers, platforms, and territories. Fiscal 2015 distribution
revenues included $12.78 million in
streaming revenues for Degrassi. At $86.56 million for Fiscal 2016, the distribution
revenue was above the mid-point of Management's most recent annual
guidance as included in the Q3 2016 MD&A. The results for
Fiscal 2016 continued to benefit somewhat from the weakness in the
Canadian dollar relative to the USD and GBP, although this gap
narrowed during the second half of Fiscal 2016. For Fiscal 2016,
the Company closed significant deals, among others previously
announced, as follows: DirectTV Digital LLC, Hessischer Rundfunk,
Lagardere Thematiques, Netflix, OTT Pacifico, Turner Broadcasting
Corporation, Zhejiang Tmall Network Co., Ltd (Alibaba). Also
included in these figures are advertising and subscription video on
demand revenues, from multiple platforms, including Amazon and
YouTube. The gross revenue from Wildbrain, unveiled on April 25, 2016, (formerly known as Google
(YouTube.com) relationship) for Fiscal 2016 was $18.44 million, up 53% versus Fiscal 2015
$12.05 million.
M&L-owned revenues (including music and royalties):
For Fiscal 2016, M&L-owned revenues increased 25% (19% organic
and 6% acquisitive) to $25.00 million
(Fiscal 2015-$20.03 million). For
Fiscal 2016, the Company also recognized revenues of $4.82 million associated with the combination of
the 2015 Big Ticket Concert tour and The Next Step Wild
Rhythm Tour, a drop of 11%, versus $5.42
million in Fiscal 2015 for Yo
Gabba Gabba! Live! and The Next Step Live on
Stage tours (see "Live Tours Update" section for further
details). Excluding the live tour revenues, M&L-owned revenues
for Fiscal 2016 were up 5.57 million or 38% from Fiscal 2015 as the
Company continued to see acceleration and recognized revenues
related to non-refundable minimum guarantees associated with
Teletubbies, In The Night Garden, and
Twirlywoos. These results were at the mid-point of
Management's previously reported annual guidance as reported in the
Q3 2016 MD&A and Management continues to be pleased with the
strong growth in the non-live tour M&L-owned revenues.
Producer and service fee revenues: For Fiscal 2016, the
Company earned $48.95 million for
producer and service fee revenues, an increase of 50% (35% organic
and 15% acquisitive) versus the $32.61
million for Fiscal 2015, and slightly below the mid-point of
Management's previously reported annual guidance as reported in the
Q3 2016 MD&A. This increase was a result of a combination of
continued strong global demand for children's content and the
acquisition of Nerd Corps.
New media and rental revenues: For Fiscal 2016, new media
revenues decreased 39% ((31)% organic and (8)% acquisitive) to
$3.10 million (Fiscal
2015-$5.11 million) based primarily
on apps, games, and the final UMIGO deliverables.
Television revenues: For Fiscal 2016, television revenues
were $69.13 million compared to
$76.18 million for Fiscal 2015, which
included the 11 month period from July 31,
2014 through June 30, 2015, an
actual decrease of 9% and a 17% decrease based on number of days.
The decline in the revenues has been driven by lower rates
resulting from the Company's transition away from its content
supply agreement with the Walt Disney Company ("Disney") and
the rebranding strategy launched in early 2015. Approximately 89%
or $61.22 million of the television
revenues were subscriber revenues, while advertising, promotion,
and digital revenues accounted for a combined 11% or $7.92 million of the total television
revenues.
M&L-represented revenues: For Fiscal 2016,
M&L-represented revenue was $28.77
million up 100% (all organic) (Fiscal 2015-$14.35 million) and above the mid-point of
Management's previously increased annual guidance as reported in
the Q3 2016 MD&A, driven mainly by the exceptional performance
of our represented brands Despicable Me and Minions
in several territories, and also significant growth in Sesame
Street, Dora the Explorer, The Pink Panther, and
Jurassic World. The 2016 results also benefited somewhat
from weakness in the Canadian dollar compared to the GBP, although
that trend reversed somewhat in Q4 2016.
Gross Margin
Gross margin for Fiscal 2016 was $173.32
million, an increase in absolute dollars of $28.28 million or 19% compared to $145.04 million for Fiscal 2015. The overall
gross margin for Fiscal 2016 at 57% of revenue was just slightly
below the mid-point of Management's previously reported annual
guidance as reported in the Q3 2016 MD&A, driven by lower than
expected distribution gross margins and slightly lower than
expected M&L-owned gross margins, offset by stronger than
expected gross margins for DHX Television, slightly higher than
expected proprietary production gross margins, and higher than
expected, in terms of absolute dollars, gross margins for
M&L-represented. Gross margin for Fiscal 2016 was calculated as
revenues of $304.82 million, less
direct production costs and expense of investment in film of
$126.99 million and $4.51 million expense of book value of acquired
libraries, (Fiscal 2015-$264.04
million less $116.13 million
and less $2.87 million,
respectively).
For Fiscal 2016, the margins for each revenue category in
absolute dollars and as a margin percentage were as follows:
production revenue margin of $15.09
million or 35%, net producer and service fee revenue margin
of $20.55 million or 42%,
distribution revenue margin of $47.26
million or 55% ($34.38 million
or 40% when the remaining $12.88
million for the expense of acquired libraries below the line
is considered), M&L-owned margin was $14.36 million or 57%, M&L-represented
revenue margin was $28.77 million or
100%, and new media margin of $1.48
million or 48%. Gross margins for DHX Television were
$45.81 million or 66%, calculated as
revenue of $69.13 million less
programming costs, third party content fees, and other direct
creative costs of $23.32 million.
Production margins at 35%, varies on product delivery mix and
were just above the mid-point of Management's revised annual
expectations (per Q3 2016 MD&A). Producer and service fee
margins can vary greatly and at 42% (as compared to 42% for Fiscal
2015) were at the mid-point of Management's annual expectations
(per Q3 2016 MD&A) and have been positively impacted by the
weakness in the Canadian dollar. Distribution margins can fluctuate
greatly from title-to-title and at 55% were near the low end of
Management's revised annual guidance (per Q3 2016 MD&A) as the
product mix for the Fiscal 2016 contained a higher than expected
weighting towards both newer and live action titles, which
typically carry lower gross margins than library sales. As
previously noted, this trend does however continue to bode well for
future margins and for additional sales as the newer titles are in
high demand. DHX Television margins at 66% for the Fiscal 2016 were
above the high end of Management's revised annual guidance (per Q3
2016 MD&A), driven by lower third party external content costs.
M&L-owned margins at 57% were below the mid-point of
Management's revised annual expectations (per Q3 2016 MD&A),
driven by the mix between live tour revenues, a much lower margin
as compared to traditional M&L-owned revenues.
SG&A
SG&A costs for Fiscal 2016 were up 28% at $75.61 million compared to $59.09 million for Fiscal 2015. The increase in
SG&A costs in Fiscal 2016 is attributable to a number of
factors, including Management's decision to add resources within
DHX Brands and DHX Distribution as Management has continued to add
resources in these areas to take advantage of the M&L
opportunities associated with Teletubbies and
Twirlywoos and the global expansion of digital distribution
platforms, including opportunities in China. The continued ramp-up of Wildbrain, the
Company's recently unveiled Multi-Platform Kids' Network, has
further contributed to the increase in SG&A costs as resources
have been added to drive growth. As previously noted,
M&L-represented revenues have grown 100% in Fiscal 2016,
triggering higher than forecast incentive compensation within the
Company's CPLG operating unit. Finally, for Fiscal 2016, SG&A
includes all of the SG&A associated with the DHX Television,
Echo Bridge, and Nerd Corps
acquisitions. SG&A also includes $5.98
million in non-cash share-based compensation up 41% (Fiscal
2015-$4.25 million). When adjusted,
cash SG&A at $69.63 million was
above the top end of Management's Fiscal 2016 SG&A guidance
from the Q3 2016 MD&A, as noted herein, as the Company
continues to aggressively pursue growth opportunities.
Adjusted EBITDA
For Fiscal 2016, Adjusted EBITDA was $103.69 million, up $13.48
million or 15% over $90.21
million for Fiscal 2015. Please see the "Use of Non-GAAP
Financial Measures" and "Reconciliation of Historical Results to
Adjusted EBITDA" sections of the Fiscal 2016 MD&A for the
definition and calculation of Adjusted EBITDA.
Q4 2016 Results
Revenues
Revenues for Q4 2016 were $75.33
million, up 6% from $71.16
million for Q4 2015. In absolute dollars, the increase in Q4
2016 was due to significantly higher distribution revenues, strong
growth in M&L-represented revenues, M&L-owned revenues, and
proprietary production revenues, offset by a significant, but
expected, decline in DHX Television revenues and more modest
declines in producer and service fee revenues and new media
revenues. Comparatively, Q4 2016 and Q4 2015 include the same
assets in terms of previous acquisitions; accordingly, all revenue
fluctuations in comparing Q4 2016 to Q4 2015 are organic. A
detailed review of each source of revenue is included below.
Proprietary production revenues: Proprietary production
revenues for Q4 2016 were $6.39
million, an increase of 25% compared to $5.12 million for Q4 2015. For Q4 2016, the
Company added 37.0 proprietary half-hours to the library up 23%
versus 30.0 proprietary half-hours for Q4 2015. For Q4 2016, the
Company added 30.0 half-hours of third party produced titles with
distribution rights (Q4 2015-45.0 half-hours), a decline of 33%.
The proprietary production revenue was ahead of Management's
expected range for quarterly pacing as provided in the Q3 2016
MD&A.
Distribution revenues: Management is extremely pleased to
report that for Q4 2016, distribution revenues were up 23% to
$30.02 million, from $24.43 million for Q4 2015. Management continues
to see strong growth and continued strong demand from new digital
customers, platforms, and territories. These results were at the
top of Management's expected range for quarterly pacing. For Q4
2016, amongst other key distribution deals for both linear and
digital platforms, the Company closed significant deals with
Amazon, Buena Vista International, iFlix, Netflix, Starz, and
Viacom. Also included in these figures are certain digital revenues
such as advertising and subscription video on demand revenues, from
multiple platforms including Amazon and YouTube (now unveiled as
Wildbrain). The gross revenue from Wildbrain, unveiled on
April 25, 2016, (formerly known as
Google (YouTube.com) relationship) for Q4 2016 was $5.66 million, up 101% versus Q4 2015
$2.81 million.
M&L-owned revenues (including music and royalties):
For Q4 2016, the M&L-owned revenues were $5.52 million, up 39% as compared to $3.97 million for Q4 2015. For Q4 2016,
M&L-owned revenues included $1.17
million from The Next Step Wild Rhythm Tour, compared
to Q4 2015, when the live tour revenues were negligible. Excluding
the live tour revenues, M&L-owned revenues for Q4 2016 were up
9% as the Company continued to recognize revenues related to
non-refundable minimum guarantees associated with
Teletubbies, In The Night Garden, and
Twirlywoos. M&L-owned revenues were below the mid-point
of Management's quarterly guidance from the Q3 2016 MD&A.
Producer and service fee revenues: For Q4 2016, the
Company earned $9.11 million of
producer and service fee revenues, a decrease of 18% versus the
$11.14 million from Q4 2015, which
was near the low end of Management's expected range as a couple of
service projects started later than expected for Q4 2016.
New media revenues: For Q4 2016, new media revenues were
down $0.87 million or 47% to
$0.98 million (Q4 2015-$1.85 million) based primarily on apps and games
as the UMIGO project has now been completed, accounting for the
decline in revenues.
Television revenues: For Q4 2016, DHX Television revenues
were down 20% to $15.80 million from
$19.87 million from Q4 2015, and were
within Management's expected range from the Q3 2016 MD&A. The
decline in the revenues has been driven by lower rates resulting
from the Company's transition away from its content supply
agreement with Disney and the rebranding strategy launched in early
2015. Approximately 91% or $14.45
million of the television revenues were subscriber revenues,
while advertising, promotion, and digital revenues accounted for a
combined 9% or $1.35 million of the
total television revenues. Advertising and promotion revenues
typically peak during the holiday season, and are seasonally low in
Q4.
M&L-represented revenues: For Q4 2016,
M&L-represented revenues were up $2.74
million, or 57%, to $7.52
million compared to Q4 2015 at $4.78
million, and were at the high end of Management's previously
reported guidance from the Q3 2016 MD&A, driven mainly by the
strong over-performance of our represented brands Despicable
Me and Minions in several territories but also
significant growth in Sesame Street, Dora the
Explorer, The Pink Panther, and Jurassic
World.
Gross Margin
Gross margin for Q4 2016 was $43.97
million, an increase in absolute dollars of $6.30 million or 17% compared to $37.67 million for Q4 2015. The overall gross
margin for Q4 2016 at 58% of revenue was below the mid-point of
Management's quarterly guidance as reported in the Q3 2016
MD&A. Gross margins were impacted by strong margins for DHX
Television, which at 76% was above the high end of Management's
expectations, and higher than expected absolute dollar margins for
M&L-represented, offset by weaker than expected gross margins
for M&L-owned (a result of having a higher percentage of lower
margin live tour revenues), and lower than expected percentage
gross margins for distribution. Proprietary production gross
margins were high at 51% for Q4 2016, while producer and service
fee gross margins were low at 19%, both the result of adjusting a
misclassification of costs from earlier in Fiscal 2016. Gross
margin for Q4 2016, including DHX Television, was calculated as
revenues of $75.33 million, less
direct production costs and expense of investment in film of
$30.40 million and $0.97 million expense of book value of acquired
libraries, (Q4 2015-$71.17 million
less $33.35 million and less
$0.16 million, respectively).
For Q4 2016, the margins for each revenue category in absolute
dollars and as a margin percentage were as follows: production
revenue margin of $3.26 million or
51%, net producer and service fee revenue margin of $1.74 million or 19%, distribution revenue margin
of $16.58 million or 55%
($12.62 million or 42% when the
remaining $3.97 million for the
expense of acquired libraries below the line is removed),
television margin was $12.02 million
or 76%, M&L-owned margin was $2.59
million or 47%, M&L-represented revenue margin was
$7.52 million or 100%, and new media
margin of $0.26 million or 26%.
SG&A
SG&A costs for Q4 2016 increased 29% to $20.69 million compared to $16.03 million for Q4 2015. The increase in
SG&A costs in Q4 2016 is attributable to a number of factors,
including the continued ramp-up of WildBrain, the Company's
recently announced Multi-Platform Kids' Network, a decision to
undertake an aggressive marketing campaign for Teletubbies,
and, as previously noted, M&L represented revenues have grown
100% in Fiscal 2016, triggering higher than forecast incentive
compensation within the Company's CPLG operating unit. SG&A
also includes $1.55 million (Q4
2015-$1.17 million) in non-cash
share-based compensation. When adjusted, cash SG&A at
$19.15 million was above
Management's quarterly SG&A expectations, as Management
continues, as noted above, to pursue growth opportunities.
Adjusted EBITDA
For Q4 2016, Adjusted EBITDA was $24.82
million, up $2.01 million or
9% over $22.81 million for Q4 2015.
Please see the "Use of Non-GAAP Financial Measures" and
"Reconciliation of Historical Results to Adjusted EBITDA" sections
of the Fiscal 2017 MD&A for the definition and calculation of
Adjusted EBITDA.
About DHX Media
DHX Media Ltd. (www.dhxmedia.com) is the world's leading
independent, pure-play kids' content company. Owner of the world's
largest independent library of kids' and family content, at more
than 11,800 half-hours, DHX Media is recognized globally for such
brands as Teletubbies, Yo
Gabba Gabba!, Caillou, In the Night Garden, Inspector
Gadget, Make It Pop, Slugterra and the multiple
award-winning Degrassi franchise. DHX Media is
comprised of four main business units: DHX Studios creates
high-quality original entertainment at its Vancouver and Halifax animation studios, its Toronto live-action studio, and in working
with top international producers; DHX Distribution is a major
provider of content to the global market; DHX Television, home to
the Family suite of channels, is dedicated to delivering
best-in-class programming to Canadian families; and DHX Brands
specializes in creating, building and managing high-profile global
entertainment brands within the children's and young-adult
markets. DHX Media also owns the full-service international
licensing agency, Copyright Promotions Licensing Group Ltd. (CPLG),
which represents numerous entertainment, sport and design brands.
DHX Media has offices in 15 cities worldwide, including Toronto,
Vancouver, Halifax, Los Angeles, London, Paris, Barcelona, Milan,
Munich, Amsterdam and Beijing. The Company is listed on the NASDAQ
Global Select Market under the ticker symbol DHXM, and on the
Toronto Stock Exchange under the ticker symbols DHX.A and
DHX.B.
Disclaimer
This press release contains "forward looking statements" under
applicable securities laws with respect to DHX including, but not
limited to, statements regarding DHX's library and growth thereof,
the Company's production goals and pipeline, the growth of DHX's
WildBrain business, DHX's activities with respect to the
Teletubbies brand, the business strategies and operational
activities of DHX and its pursuit of growth opportunities, the
allocation of resources of the Company, the markets and industries
in which the Company operates, including the demand for content and
the expansion of digital distribution platforms, and the growth and
financial and operating performance of DHX, its subsidiaries, and
investments. Although the Company believes that the expectations
reflected in such forward looking statements are reasonable, such
statements involve risks and uncertainties and are based on
information currently available to the Company. Actual results or
events may differ materially from those expressed or implied by
such forward looking statements. Factors that could cause actual
results or events to differ materially from current expectations,
among other things, include risk factors discussed in materials
filed with applicable securities regulatory authorities from time
to time including matters discussed under "Risk Factors" in the
Company's Annual Information Form and annual Management Discussion
and Analysis, which also form part of the Company's annual report
on Form 40-F filed with the United States Securities and Exchange
Commission. These forward-looking statements are made as of the
date hereof, and the Company assumes no obligation to update or
revise them to reflect new events or circumstances, except as
required by law.
SOURCE DHX Media Ltd.