DHX Media (DHXM) Reports Q2 Loss of $0.13 on Revenues of $117M

DHX Media (NASDAQ: DHXM) reported Q2 EPS of ($0.13), versus $0.06 reported last year. Revenue for the quarter came in at $117 million, versus $121.9 million reported last year.

• The Company generated positive operating cash flow of $11.6 million in Q2 2019 vs a $1.1 million outflow in Q2 2018. $9.5 million was paid down on the Company's revolving facility in Q2 2019 and $16.4 million YTD.
• At the end of the second quarter, the Company signed its largest multi-year content partnership agreement which is expected to begin generating earnings this year.
• Total revenue for Q2 2019 was $117.0 million vs $121.9 million in Q2 2018. H1 2019 revenue was largely flat at $221.1 million.
• Adjusted EBITDA for Q2 2019 was $22.0 million vs $32.0 million in Q2 2018, and for H1 2019 was $39.3 million vs $54.8 million a year ago. Adjusted EBITDA was reduced by $4.7 million in Q2 2019 and $8.6 million in H1 2019, due to the sale of a minority stake in Peanuts to Sony1.
• Net loss for Q2 was $17.9 million, or $0.13 per share, vs net income of $7.4 million, or $0.06 per share, in Q2 2018. Net loss for H1 2019 was $20.3 million, or $0.15 per share, vs net income of $15.6 million, or $0.12 per share, in H1 2018. The decline was primarily due to increases in non-cash, unrealized foreign exchange losses.
• WildBrain grew views 29% to more than 7 billion in the quarter. Revenue rose 13% to $19.9 million vs $17.6 million in Q2 2018, marking WildBrain's highest revenue quarter to date. H1 2019 revenue rose 27% to $36.2 million from a year ago.
• Initiating process to reorganize the Company into two subsidiaries to enhance strategic flexibility.

"In our second quarter, we made progress against our three strategic priorities of producing premium content, growing WildBrain and improving cash generation," said Michael Donovan, Executive Chair and CEO, DHX Media. "We signed the largest content deal in the history of the Company, which we believe will contribute steady EBITDA for the coming years, and WildBrain continued to deliver double-digit growth. We also experienced a 7% rise in consumer products revenue from Peanuts. Our strategic shift and disciplined cost management contributed to positive cash flow and allowed us to pay down $9.5 million of our debt in the quarter."

Mr. Donovan added: "DHX Media continues to sharpen its focus on its digital strategy. The Board of Directors has decided to reorganize the Company under two subsidiaries along business lines, one for its cash-flow generating studios and TV channels, and one for its global digital and content assets with significant growth potential, including WildBrain, Distribution and Consumer Products."

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

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