DHX Media (DHXM) Reports Q1 Revenues of $112.3M

DHX Media (NASDAQ: DHXM) reported Q1 revenue for the quarter came in at $112.3 million, versus $104 million reported last year.

• Revenue increased 8% to $112.3 million in Q1 2020 vs $104.0 million in Q1 2019.
• Cash flow from operations increased to $18.7 million in Q1 2020 vs negative cash flow of $10.0 million in Q1 2019.
• $7.6 million was paid down on the term loan in Q1 2020 from excess cash flow.
• Adjusted EBITDA rose to $19.6 million compared to $17.3 million in Q1 2019.
• Net loss was $16.0 million vs a net loss of $2.4 million in Q1 2019, affected by one-time reorganization charges and a non-cash foreign exchange loss.
• WildBrain Spark1 views grew 66% to over 12 billion in Q1 2020; revenue rose 37% to $22.1 million vs $16.2 million in Q1 2019.
• Post quarter-end, we announced a $60.0 million rights offering, of which $50.0 million will be used to reduce the term loan and the remaining balance for working capital. After this repayment, the net leverage ratio5 will be reduced from 5.66x to approximately 5.14x as at September 30, 2019 on a pro forma basis.
• Post quarter-end, lender consent was obtained to amend the term loan to remove the step downs in the net leverage covenant5 and retain the covenant at 6.75x for the remainder of the loan term.

["DHX] Snoopy in Space, our first new original Peanuts content for Apple TV+ that debuted worldwide this month. The recently announced rights offering is an important vote of confidence from our shareholders – backstopped by our largest shareholder – that strengthens WildBrain's financial position and is a further step towards long-term sustainable growth. In the six months since taking on my advisory position and two months now as CEO, I've become more energized and enthused about the untapped opportunities across our portfolio of assets. It will take time and investment to fully unlock this value, but I couldn't be more optimistic about our future."

Aaron Ames, WildBrain CFO, added: "We continued to improve our cash generation in the quarter. We paid down $7.6 million of debt in the quarter from excess cash flow and expect to make an additional $50.0 million payment on the term loan upon closing of the rights offering. Our ability to eliminate the covenant step downs on the term loan following this repayment will provide us with greater flexibility to invest in the long-term growth areas of our business."

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

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