DHX Media (DHXM) Reports Q1 Revenues of $104M

DHX Media (NASDAQ: DHXM) reported Q1 EPS of $. Revenue for the quarter came in at $104 million.

• Q1 2019 revenue rose 5.5% to $104.0 million up from $98.6 million the year-ago quarter. Implementation of the IFRS 15 accounting standard reduced revenue by $2.4 million1 in Q1 2019. Without this adjustment, revenue would have been up 7.9%
• Q1 2019 adjusted EBITDA was $17.3 million compared to $22.8 million in the year-ago quarter. Adjusted EBITDA was reduced by $1.0 million due to IFRS 151 and by $3.8 million from the sale of a 39% minority stake in Peanuts2
• Net loss was $2.4 million vs net income of $8.1 million in Q1 2018
• WildBrain revenue grew 49% to $16.2 million vs $10.9 million in the year-ago quarter
• Net debt declined 31% to $502.9 million from the end of Fiscal 20183
• Net leverage ratio for covenant purposes was 5.35x, down from 6.07x at year-end4

"We are pleased with the progress we are making to solidify our operations, upgrade our management team and reduce our leverage," said Michael Donovan, Executive Chair and CEO, DHX Media. "We are making the necessary investments for sustainable organic growth. While it is still early days, our pipeline of business on the content and consumer products side is starting to build, laying the foundation for improving results in the quarters and years ahead. Peanuts continued to perform ahead of plan, contributing to 12% growth in our consumer products-owned business from a year ago. WildBrain also delivered another excellent quarter, with strong double-digit growth in revenues and minutes watched. In the last three months, 1/3 of the approximately 830 million children globally with access to YouTube tuned into our WildBrain network5. We believe this growing scale and the quality of experience we offer will cement our position as the go-to platform in the AVOD space for children, content owners and advertisers. We are just beginning to scratch the surface of this unique and strategic asset."

Mr. Donovan added: "As part of our Q4 2018 call, we laid out a strategic plan to better leverage our core assets in distribution and content – including WildBrain, our vast library, IP, and new productions – to maximize the value of these assets in the marketplace while simplifying our organization. The recent agreement to sell our Halifax animation studio is another important step on this path. This sale will streamline our operations, allowing us to consolidate production and focus our resources around our premium-content strategy."

For earnings history and earnings-related data on DHX Media (DHXM) click here.

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