GuruFocus -
- Q4 Revenue: $51.8 million, a 37% increase from $37.7 million in the same period last year.
- Full Year Revenue: $165.3 million, slightly lower than $166.7 million last fiscal year.
- Production Services Revenue: $132.6 million for the full year, a 5% increase.
- Licensing and Distribution Revenue: $33 million, an 18% decrease year-on-year.
- Gross Margin: Improved from 22.2% to 22.7% year-on-year.
- Q4 Net Income: $2.5 million, compared to a loss of $2.6 million in the same period last year.
- Full Year Net Income: $2.4 million, compared to a net loss of $5 million in the prior year.
- General and Administrative Costs: Reduced to $21.5 million from $25.9 million last year.
- Q4 Adjusted EBITDA: $7 million, up from $0.7 million in the same period last year.
- Annual Adjusted EBITDA: $16.7 million, a 30% increase from $12.8 million last year.
- Adjusted EBITDA Margin: Improved by 240 basis points to 10.1% from 7.7% last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Thunderbird Entertainment Group Inc (THBRF) ended fiscal 2024 on a strong note, exceeding forecasted targets and achieving three consecutive profitable quarters.
- The company reported a 37% increase in Q4 revenue, driven by strong licensing and distribution revenue.
- Thunderbird's strategic review process concluded that their growth plan and potential uplisting to the TSX are the best ways to maximize shareholder value.
- The company has a robust content pipeline and strong industry relationships, positioning it well for future growth.
- Thunderbird's animation division and IP ownership are expanding, with new projects like 'The Day You Begin' and 'Mermicorno: Starfall' set to debut soon.
- The media industry headwinds have impacted the commissioning of new shows, leading to a decrease in licensing and distribution revenue by 18% year over year.
- The company anticipates margin pressure in fiscal 2025 due to a higher mix of service work compared to own IP projects.
- Despite strong financial performance, the stock price has been underwhelming, and the company is working to improve visibility and liquidity.
- The content market challenges have led to a slowdown in the production of proprietary content, affecting revenue growth potential.
- Thunderbird had to implement cost-cutting measures, including staff reductions, to achieve profitability, indicating operational challenges.
A: Jennifer McCarron, CEO, stated that the company is focusing on maximizing shareholder value and plans to increase visibility by hitting the investor relations trail. They are considering an uplisting to the TSX to attract new shareholders. Simon Bodymore, CFO, added that they have already started steps towards this and aim to improve the liquidity of shares by actively engaging with investors.
Q: Will the company's margins be affected by taking on more service work?
A: Simon Bodymore, CFO, confirmed that margins will face pressure due to a higher mix of service work compared to proprietary content. This shift is expected to continue through 2025, with hopes of returning to more proprietary work as the market improves.
Q: Should we expect service revenue to increase as a percentage of total revenue?
A: Yes, Simon Bodymore, CFO, indicated that service revenue is likely to increase as a percentage of total revenue due to the current market conditions, although they continue to pursue proprietary IP work.
Q: Can we expect an improvement in free cash flow in fiscal 2025?
A: Simon Bodymore, CFO, stated that free cash flow should improve in fiscal 2025 as the company grows and expands EBITDA and revenue.
Q: How will revenue unfold in fiscal 2025 on a quarterly basis?
A: Simon Bodymore, CFO, mentioned that while specific quarterly guidance is not provided, growth is expected to be phased over time, with the latter half of the year likely seeing higher revenue than the first half.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.