Selected Financial Highlights
- Revenue of
$55.6 million in Q4 2020 vs$59.4 million in Q4 2019. Full year 2020 revenue of$226.8 million vs$244.2 million in 2019. - Net loss of
$0.4 million in Q4 2020 vs net loss of$6.2 million in Q4 2019. Full year 2020 net loss of$44.0 million vs net loss of$19.5 million in 2019. - Adjusted EBITDA of
$8.3 million in Q4 2020 vs$7.1 million in Q4 2019. Full year 2020 adjusted EBTIDA was$14.3 million vs$32.5 million in 2019. - On
March 24, 2021 , the Company successfully completed its Initial Public Offering ("IPO") raising gross proceeds of$170.1 million . A significant portion of the net proceeds were used to repay all of the Company's corporate credit facility, resulting in a positive net cash position in excess of$100.0 million .
"Our financial performance for the fourth quarter and fiscal year largely reflects the impact of the COVID-19 pandemic that delayed live-action production and drove increased costs in 2020 but was partially offset by improved performance in our Kids and Family segment, which benefitted from a smoother transition to work-from-home protocols," said
COVID-19 Pandemic Update
The COVID-19 pandemic is unprecedented and negatively impacted Boat Rocker's financial results for the year ended
As jurisdictions began to lift restrictions on large gatherings in the third quarter of 2020, Boat Rocker worked diligently to pioneer and implement leading COVID-19 protocols, which allowed many of the Company's series to resume production.
Selected Financial Information
(in thousands of Canadian dollars) (audited) | Three months ended | Year ended | ||
Revenue | 2020 | 2019 | 2020 | 2019 |
Television | 29,251 | 30,831 | 134,298 | 150,193 |
Kids and Family | 16,693 | 17,077 | 63,851 | 58,055 |
Representation | 9,670 | 11,527 | 28,654 | 35,917 |
Total revenue | 55,614 | 59,435 | 226,803 | 244,165 |
Net loss attributable to shareholders | (2,222) | (7,106) | (48,744) | (23,707) |
Adjusted EBITDA1 | 8,284 | 7,098 | 14,303 | 32,469 |
1 See "Non-IFRS Measures" |
Financial Review
Q4 2020 revenue was
Net loss attributable to shareholders of the Company for the three months ended
Adjusted EBITDA for the three months ended
The following table presents the Company's net debt as at
(in thousands of Canadian dollars) (audited) | Dec 31, 2019 | |||
Loans and borrowings, excluding interim financing | 93.595 | 87,869 | ||
Lease liabilities | 31,543 | 29,626 | ||
Plus: loan fees, net of amortization | 314 | 1,305 | ||
Less: loan modification | (2,501) | (4,317) | ||
Less: cash available for use | (32,162) | (29,666) | ||
Net Debt | 90,789 | 84,817 | ||
Cash Available for Use | 32,162 | 29,666 | ||
Cash Required for Use in Productions | 39,592 | 29,602 | ||
Total cash | 71,754 | 59,268 |
Net Debt at
Outlook
As further set out in the Company's final prospectus dated
Fiscal 2020 Fourth Quarter Conference Call
Boat Rocker will host a conference call to discuss its fiscal 2020 fourth quarter and fiscal year end financial results at
About Boat Rocker
Boat Rocker is an independent, integrated global entertainment company that harnesses the power of creativity and commerce to tell stories and build iconic brands for audiences around the world.
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: EBTIDA, Adjusted EBITDA, Cash Available for Use, Cash Required for Use in Productions, Free Cash Flow, and Net Debt.
EBITDA is defined as net income or loss before interest, taxes, depreciation and amortization ("EBITDA").
Adjusted EBITDA is defined as EBITDA adjusted for amortization of non-cash program intangibles, change in fair value of financial liabilities, change in fair value of contingent consideration, share-based compensation, transaction and reorganization costs, goodwill impairment, loss on debt modifications and gain or loss on sale of assets. Adjusted EBITDA is used by management as a measure of the Company's profitability. For further details refer to the "Reconciliation of non-IFRS measures" section of this press release.
Net Debt is defined as the carrying value of loans and borrowings (excluding interim production financing and convertible debentures), adjusted for the loss on loan modification and loan fees, plus lease liabilities, less Cash Available for Use. Net Debt represents obligations the Company has to fund from its earnings and is viewed by management as a consistent measure of the Company's liquidity position. In contrast, interim production financing is drawn to bridge the timing between cash inflows from the license fees and production service fees of the buyer, the film and television tax credits earned on valid production expenses, and cash outflows of the production expenses. As such, interim production financing is excluded from management's calculation of Net Debt. The Company does not include other liabilities in the Net Debt calculation such as: other financial liabilities that are based on estimates and probabilities, rather than specific amounts owing, and liabilities that may not be payable in cash. For further details, refer to the "Liquidity and Capital Resources" section of the Company's MD&A.
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.
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 and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such assumptions, risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" and the assumptions discussed under "Outlook" in the final prospectus. Actual results could differ materially from those projected herein. Boat Rocker does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
Reconciliation of non-IFRS financial measures
(in thousands of Canadian dollars) (audited) | Three months ended | Year ended | ||
2020 | 2019 | 2020 | 2019 | |
Net loss | (446) | (6,204) | (43,990) | (19,483) |
Amortization of property and equipment, right-of-use assets and other intangible assets | 4,749 | 4,996 | 18,566 | 18,989 |
Finance costs, net | 2,774 | 2,116 | 10,634 | 8,415 |
Income taxes | 1,264 | 858 | 1,884 | 1,067 |
EBITDA1 | 8,341 | 1,766 | (12,906) | 8,988 |
Adjustments: | ||||
Amortization of program intangibles2 | 718 | 839 | 2,926 | 7,196 |
Change in fair value of contingent consideration3 | (3,180) | (18) | (2,300) | 368 |
Gain on sale of assets4 | (1,356) | (3,079) | (1,356) | (3,079) |
Transaction costs5 | (460) | 840 | 254 | 4,292 |
Change in fair value of embedded derivative and other financial liabilities6 | 1,792 | 2,007 | 8,743 | 8,710 |
Share-based compensation7 | 2,429 | 242 | 5,449 | 721 |
- | - | 12,959 | - | |
Loss on debt modification9 | - | 4,317 | 342 | 4,317 |
Reorganization costs10 | - | 182 | 192 | 956 |
Adjusted EBTIDA1 | 8,284 | 7,098 | 14,303 | 32,469 |
1) See "Non IFRS Financial Measures". | ||||
2) Amortization of program intangibles acquired from business combinations included in production service and distribution expenses. | ||||
3) Change in value of contingent consideration associated with acquisition of Platform One. | ||||
4) Gain on sale of an equity accounted investee in fourth quarter of 2020 and the sale of land and a building in the fourth quarter of 2019. | ||||
5) Transaction costs represent professional fees incurred in support of acquisitions in 2019. | ||||
6) Change in fair value of other financial liabilities represent the non-cash expenses on certain put options. | ||||
7) Share based compensation related to non-cash expenses associated with stock options granted to certain officers and employees. | ||||
8) Impairment of | ||||
9) Non-cash expenses incurred because of amendments to the Company's corporate credit facility during 2020 and in the fourth quarter of 2019. | ||||
10) Restructuring charges primarily related to personnel related costs. |
SOURCE
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