WOW! Unlimited Media Inc. announced its financial results for the three and nine months ended September 30, 2020.
KEY Q3 2020 HIGHLIGHTS
Operating highlights
Financial highlights
OVERVIEW OF RESULTS
For the three months ended | For the nine months ended | ||||||||||||
$000’s, except per share amounts | September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
|||||||||
Revenue | $ | 15,463 | $ | 23,349 | $ | 40,686 | $ | 69,459 | |||||
Operating EBITDA1 | 594 | 831 | 38 | (1,608 | ) | ||||||||
Operating loss1 | (891 | ) | (723 | ) | (4,410 | ) | (6,204 | ) | |||||
Operating loss per share | |||||||||||||
– basic and diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.14 | ) | $ | (0.20 | ) | |
Net loss | $ | (1,001 | ) | $ | (1,356 | ) | $ | (5,838 | ) | $ | (7,110 | ) | |
Net loss per share | |||||||||||||
– basic and diluted | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.18 | ) | $ | (0.23 | ) | |
Weighted average number of shares outstanding: | |||||||||||||
– basic and diluted | 32,024,314 | 32,024,314 | 32,024,314 | 31,397,931 | |||||||||
1 Operating EBITDA and operating loss include amortization of investment in film and television programming. Refer to discussion | |||||||||||||
under Consolidated Results for a reconciliation of Operating EBITDA and Operating loss to Net loss. |
Michael Hirsh, Chairman & CEO, commented: “During Q3, the Company continued on its growth trajectory and now we are EBITDA positive for the year to date. We continue to have solid discussions with clients and partners for new animation projects, the demand for which remains very encouraging. The restructuring and reorganization of Frederator is complete, and we look forward to an exciting 2021 across the organization.”
CONSOLIDATED RESULTS
For the three months ended | For the nine months ended | ||||||||||||
$000’s | September 30, 2020 |
September 30, 2019 |
September 30, 2020 |
September 30, 2019 |
|||||||||
Revenue | $ | 15,463 | $ | 23,349 | $ | 40,686 | $ | 69,459 | |||||
Amortization of investment in film and television programming | $ | 1,742 | $ | 2,109 | $ | 2,866 | $ | 2,767 | |||||
Operating EBITDA | $ | 594 | $ | 831 | $ | 38 | $ | (1,608 | ) | ||||
Finance costs | 497 | 505 | 1,498 | 1,484 | |||||||||
Depreciation and amortization1 | 988 | 1,049 | 2,950 | 3,112 | |||||||||
Operating loss | (891 | ) | (723 | ) | (4,410 | ) | (6,204 | ) | |||||
Items affecting comparability: | |||||||||||||
Share-based compensation expense | 110 | 633 | 403 | 906 | |||||||||
Restructuring costs | – | – | 1,100 | – | |||||||||
Deferred income tax expense (recovery) | – | – | (75 | ) | – | ||||||||
110 | 633 | 1,428 | 906 | ||||||||||
Net loss | $ | (1,001 | ) | $ | (1,356 | ) | $ | (5,838 | ) | $ | (7,110 | ) | |
1 Excludes amortization of investment in film and television programming |
Revenue and Operating EBITDA
Revenue for the three and nine months ended September 30, 2020, decreased by $7.9 million and $28.8 million, respectively, compared to the same periods in 2019.
For the three and nine months ended September 30, 2020, revenues for the Networks and Platforms segment decreased by $6.8 million and $30.4 million, respectively. The decrease in revenue for the Networks and Platforms segment for the three and nine months ended September 30, 2020, was primarily the result of decreased views generated by Channel Frederator Network after the termination of the ADME agreement, as previously announced in December 2019.
Revenue for the Animation Production segment for the three months ended September 30, 2020, decreased by $1.1 million. The higher revenue for the three months ended September 30, 2019, was the result of the delivery of IP during the period. Revenue for the Animation Production segment for the nine months ended September 30, 2020, increased by $1.6 million, mainly driven by the increased number of active productions compared to the same period in 2019.
Operating EBITDA for the three and nine months ended September 30, 2020, decreased by $0.2 million and increased by $1.6 million, respectively, compared to the same periods in 2019. The higher operating EBITDA for the nine months ended September 30, 2020, was driven by increased revenue and margins in the Animation Production segment as a result of the increase in the number of active productions. The higher Operating EBITDA for the three months ended September 30, 2019, was a result of the delivery of IP during the period.
CONFERENCE CALL
The Company will host a conference call at 9:00 a.m. Eastern Time on Friday, November 27, 2020, to discuss the Company’s financial results.
The conference call can be accessed live by dialling 1 (877) 825-9920 five minutes prior to the scheduled start time. The Conference ID is 6053118.
A digital recording of the call will be available for one month (until midnight Eastern Time, December 27, 2020) by dialling 1 (855) 859-2056 or (404) 537-3406 and using the Conference ID 6053118.
Further information available at:
Website: www.wowunlimited.co
Contact: Bill Mitoulas, Investor Relations
Tel: (416) 479-9547
Email: billm@wowunlimited.co