Halifax, Canada – November 14, 2013 – DHX Media Ltd. (“DHX Media” or the “Company”) (TSX: DHX), a leading independent producer, distributor and licensor of children’s entertainment content, is pleased to announce its financial results for the quarter ended September 30, 2013.
Highlights of Q1 2014 Results:
(All amounts in Canadian dollars)
- Revenues doubled to $27.00 million from $13.51 million for Q1 2013;
- Gross margin increased to $15.26 million (57% of revenues), up 182% from $5.42 million for Q1 2013 (40% of revenues);
- Adjusted EBITDA1 of $7.80 million, an increase of 322% from $1.85 million in Adjusted EBITDA for Q1 2013;
- One-time charges of $1.23 million ($0.86 million after-tax) for acquisition-related costs associated with the Ragdoll transaction; and
- Normalized net income of $3.39 million (up 304% over Q1 2013-$0.84 million), or $0.03 per share, after adding back Ragdoll acquisition-related costs. Q1 2013 reported net income was $2.16 million, or $0.02 per share, up from a net loss of $0.07 million, an increase of $2.23 million in absolute dollars
1EBITDA represents income of the Company before amortization, finance income (expense), taxes, share of loss of associates, development expenses and any impairments, share-based compensation expense, and Adjusted EBITDA includes adjustments for other non-recurring charges. (See Q1 2014 MD&A definition of EBITDA and Adjusted EBITDA for full details).
Michael Donovan, CEO, DHX Media commented, “We are pleased to announce record first quarter financial results, with triple-digit growth in Revenue, Adjusted EBITDA, and Normalized Net Income. The increase in Gross Margin to 57% of Revenue was driven largely by distribution revenue from licenses to digital content distributors. With a library of 9,500 half-hours of children’s entertainment content, we are well positioned to benefit from the proliferation of new digital buyers.”
Dividend Declaration
On November 14, 2013 the Board of Directors approved a dividend for the quarter of $0.011 on each common share outstanding to the shareholders of record at the close of business December 6, 2013 to be paid December 27, 2013.
Analyst call details
The Company will hold a conference call for analysts to discuss its Q1 2014 financial results on Friday, November 15th, 2013 at 10:00 am EST, following the release of its financial results. Media and others may access this call on a listen-in basis. Conference call details are as follows:
To access the call, please dial +1(888)231-8191 toll-free or +1(647)427-7450 internationally. Please allow 10 minutes to be connected to the conference call. Passcode 99284420.
Replay: Instant replay will be available beginning approximately one hour after the call on +1(855)859-2056 toll free or +1(416)849-0833, and passcode 99284420, until midnight EST Friday, November 22nd.