Brilliant brands and WOW! Reach pro forma(1) 53% increase at
Combined sales of $19.4 million(2)
Cartoonon Channel! Ad-supported and subscription-based
Streaming services saw significant growth
in revenue, users and content offerings
Shaq’s garage in production and beyond
Delivery date in autumn 2022
BEVERLY HILLS, Calif., May 17, 2022 (GLOBE NEWSWIRE) — Genius Brands International, Inc. (“Genius Brands”) (GNUS), a global brand management company that creates, produces, broadcasts and licenses children’s entertainment content, reported financial results and provided business update for the first quarter ended March 31, 2022.
The company has now achieved 10 consecutive quarters of annual revenue growth. Revenue increased 35% in the first quarter of 2022 compared to the same period last year. On April 6, 2022, the Company completed its proposed acquisition of WOW! Unlimited Media (WOW!), the Canadian animation subcontract producer of animated programs, including Coco Melon, Barbie’s dream house and Madagascar, a little wild, as well as operator of the Frederator Channel. The Frederator Channel is YouTube’s largest animated multi-channel network with over 1 billion views per month. As a result of the closing of the acquisition on April 7, 2022, the results of WOW! not included in the company’s first quarter 2022 results. Revenues of the combined companies on a pro forma basis(1) increased 53% to $19.4 million(2) in the first quarter of 2022, compared to $12.7 million(2) for the same period last year. On a standalone basis WOW! generated approximately $1 million(2) of net income and approximately $2 million(2) of EBITDA for the first quarter of 2022 (see reconciliation to net income below).
After completing the WOW! Following the acquisition, the company is now focused on maximizing operational synergies and expects to benefit from significant economies of scale to increase profitability. Meanwhile, the company has maintained a solid balance sheet with a sizeable cash position to fund internal growth.
The company also recorded a $5.4 million gain from its investment in Your Family Entertainment (YFE), the German children’s media and broadcasting company, during the quarter. The company integrates YFE with Kartoon Channel! to expand the combined content offering under the cartoon channel! Global brand.
In the first quarter of 2022, the company additionally:
- Cartoonon Channel launched! on The Roku Channel and reached an estimated 80 million people in the US alone. Cartoonon Channel! now carried on most major platforms;
- Cartoon Channel Expanded Global Presence! Worldwide in Latin America, Middle East and North Africa, now available in over 67 countries;
- Beginning the initial launch of the company’s Kartoon Channel commercial free SVOD service! Kidaverse after acquiring Canadian SVOD streamer Ameba TV; and
- Increased viewership for Stan Lee’s Superhero Kindergarten, launched in China with Alibaba on the Youku platform for children.
The Company continues its strategy to establish Genius Brands as the leading producer, broadcaster and licensor of quality children’s entertainment and children’s consumer products. Unlike Disney+ and Netflix, both of which have historically been subscription-only services, Genius maintains and builds both ad-supported and subscription-supported services. In addition, both Cartoonon Channel! and cartoonon channel! Kidaverse is available through an app that offers both video-on-demand and linear products FAST, with an ever-growing viewership and subscriber base. Cartoonon Channel! continues to be the top user-rated streaming service in its class on the Apple App Store.
Complete financial results are available on the Company’s Form 10-Q filed with the Securities and Exchange Commission and available on the Company’s website: https://ir.gnusbrands.com/sec-filings
(1) Had the acquisition occurred on January 1, 2022
(2) Based on unaudited financial results from WOW! Unlimited Media for the quarter ended March 31, 2022; CAD to USD conversion based on May 13, 2022 exchange rate; IMPRESSIVE! Financial statements prepared in accordance with IFRS, which may not correlate to US GAAP.
About Genius Brands International
Genius Brands International, Inc. (GNUS) is a leading global children’s media company that develops, manufactures, markets and licenses children’s branded entertainment and consumer products for media and retail distribution. The company’s IP portfolio of family-friendly content includes the Stan Lee brand, Stan Lee’s Superhero Kindergarten starring Arnold Schwarzenegger on Kartoon Channel!; Shaq’s Garage, starring Shaquille O’Neal, comes to Cartoon Channel!; Rainbow Rangers on the Cartoon Channel! and Netflix; Llama Llama, starring Jennifer Garner, on Netflix and more. Genius Brands recently entered into an agreement to acquire Canada’s WOW! Unlimited Media (TSX-V: WOW), which encompasses 2,500 channels under the Channel Federator Network, has also made a strategic investment in Germany’s Your Family Entertainment AG (FRA: RTV), one of Europe’s largest distributors and broadcasters of high-quality programming for children and families.
The Genius Brands cartoon channel! is a global entertainment platform with 100% penetration in the US television market and international expansion with launches in key markets around the world. The channel is available in the US through a wide range of distribution platforms including Comcast, Cox, DISH, Amazon Prime, Amazon Fire, Apple TV, Apple iOS, Android TV, Android Mobile, Google Play, Roku, YouTube, KartoonChannel.com, Samsung Smart and LG TVs, the JetBlue inflight platform and more. Genius Brands Launches Subscription-Based Cartoon Channel Soon! Kidaverse with metaversal content and over 15,000 animated titles.
For more information, see www.gnusbrands.com.
Non-GAAP/IFRS Financial Measures
This press release relates to earnings before interest, taxes, depreciation and amortization (“EBITDA”), which is a non-GAAP/IFRS financial measure and does not have a standardized definition under US GAAP/IFRS and may not be comparable to measures similar to those used by others issuers presented. The Company has provided these non-GAAP/IFRS financial measures, which are not calculated or presented in accordance with US GAAP/IFRS, as supplemental information and in addition to the financial measures calculated and presented in accordance with US GAAP/IFRS because there are additional Provides information to complement US GAAP/IFRS measures by providing a better understanding of the company’s operating results from a management perspective. In the Company’s internal reports, management evaluates the Company’s performance using this non-GAAP financial measure because the Company believes this non-GAAP/IFRS financial measure provides management and readers of the Company’s financial statements with: a consistent basis for comparisons between accounting periods and is helpful in helping management and readers understand the company’s results of operations and the underlying operating trends. This supplemental non-GAAP financial measure should not be considered superior to, a substitute for, or an alternative to, and should be viewed only in conjunction with, US GAAP/IFRS financial measures presented in relation to the Company’s financial performance .
We calculate EBITDA as our net income for a period plus reported interest, taxes, depreciation and amortization for that period. A reconciliation of the EBITDA versus net income presented here, the most directly comparable US GAAP/IFRS measure, is presented below:
|For the past three months|
|CDN$000||March 31, 2022||March 31, 2021|
|Depreciation and Amortization1||783||666|
|Operating Profit (Loss)||1,326||804|
|Elements affecting comparability:|
|Share-based Compensation Expense||35||56|
|Waiver of CRTC Commitment to Material Benefits||—||(585||)|
|Deferred income tax expense (refund)||—||—|
|net income (loss)||$||1,290||$||1,332|
Forward-Looking Statements: Certain statements in this press release are “forward-looking statements” within the meaning of the federal securities laws. Words such as “may”, “could”, “will”, “should”, “believe”, “expect”, “anticipate”, “estimate”, “continue”, “predict”, “forecast”, “forecast” “Plan,” “intend,” or similar expressions or statements of intentions, beliefs, or current expectations are forward-looking statements. Although the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on such forward-looking statements, which are based on information available to us as of the date of this press release. These forward-looking statements are based on current estimates and assumptions and are subject to various risks and uncertainties, including but not limited to our ability to generate revenue or achieve profitability; our ability, if any, to obtain additional financing on acceptable terms; our ability to integrate acquired businesses; the potential issuance of a significant number of shares that will dilute our shareholders; period-to-period fluctuations in the results of our operations; general economic and financial situation; our ability to anticipate changes in popular culture, media and films, fashion and technology; competitive pressures from other content providers and within the retail market; our reliance on and relationships with third party production and animation studios; our ability to market and advertise our products; our reliance on third parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and other risk factors detailed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company’s subsequent filings with the Securities and Exchange Commission (the “SEC”) ) . Therefore, actual results may differ materially. The Company expressly disclaims any obligation to update or change any statement, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT INVESTOR RELATIONS: