GNUS - Earnings call transcript Q3 2018

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Operator

Greetings, and welcome to Genius Brands International Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference to Michael Porter, with Porter, LeVay & Rose. begin. may you Please,

Michael Porter

might, meaning Good Brands and Certain third as statements. call similar within estimate, of this or should, believe, or operator. securities current to intent, belief similar statements and the conference the statements forward-looking Genius expressions quarter constitute expectations laws. continue, may, the expect, morning, plan, you, federal gentleman, ladies welcome forward-looking project, in Words will, such of regarding are Thank intend conference expressions anticipate, or call. statements

subject set Company risk believes risks the materially should not disclaims Securities other factors Thus, and limitation, for filings The contained actual XXXX be expressly heading different. statements conference including based with this results on without the statements related therein. in uncertainties, any forth Company the Commission, to these While us reasonable, to risk could limited forward-looking and of any Exchange Risk December, the are undue the not various report as are a current to fiscal business Heyward. Good events morning, such to the call. statements by call and to based Andy of I’d statements These upon or the over those altered obligation otherwise, like new and Andy. reliance information, on now, update further under which on to except date And result whether are Company’s or law. required as to turn Factors estimates the information annual forward-looking available be and placed the end XX-K year are assumptions, forward-looking

Andy Heyward

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happy to Now, be will any take questions. I

Operator

Chardan with with Capital. question. Instructions] Our Jim your first Please Thank question from McIlree [Operator is you. proceed

Jim McIlree

the the what steps I in comment this geographies you. bit now sell Thank retailers just morning, of Rainbow we’re Andy, you is help baked product on sales. if other how right and you be viewership the continued waiting have product ratings. Good time, that or to drive and the congratulations little on sure in available making a on already, next could would for will and at kind that wondering was Rangers right you

Andy Heyward

Okay.

So, two questions there. Thank you.

we’ve priority it coming other intimate. one, in with first We’ve Let’s and sales, we the in well, announce a start will We’ve would say, of there a with weeks the license, sales. that number has dialogue working Mattel I the triggers the international and a virtually already world. we major lineup as is their mature. us the to been global international every and in which very more Mattel. and There will broadcaster becomes number guarantees global additional from is marketplace which them been get in do a think broadcasters as place. very of the given broadcasters, list a they’ve of job small completed

performing. global the All announce a the what will think United next if see of States, very we broadcasters. quarter show broadcasters goes of I the be in on a is in substantial in to lineup watch position And the they

been we’ve performs as that Nickelodeon. at major don’t talking all. American coveted overseas We very of them. that one product all as I strong problem said, product networks the to a especially is As of see on and

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all the major we’ve So, categories. got

with that why And product every the category our we’ve toys, then can them Of be they be selling. seeing much will the lot as pretty but ratings continue you and of products begun, course, everywhere reason got there Mattel the if is anchored won’t no imagine. have a

Jim McIlree

And ratings just any I ratings particularly strong just that I forward, know, Christmas or as of the far or seasonality by weaker? don’t guessing or during we sort as stronger we’re of about? mean or So, moving a weaker surprised should ratings the be aware I’m so not might here, is stronger make period, is weak going summer time

Andy Heyward

the as weather will Generally, go the up gets bad. viewing

you cold But So, for are and quarter. to Thursday the we a why perfect the during generally months, these the the and follow fourth to launched they And launch show, time that’s now numbers greater is speaking, see right viewing. getting going will week. show’s them -- we previous every get be in

coming week numbers broadcast. will second we Thursday, this So, that should of have the reflect

Jim McIlree

Well, thank good a hope luck, good. for Very winter. cold right. All let’s you and and

Andy Heyward

Thank you.

Operator

Our with Ishfaque from next question. is WestPark Capital. question with proceed Faruk Please your

Ishfaque Faruk

A Rangers. quick Rainbow on question

for You Spin mentioned Patrol was Company. that Master hit big PAW a

think conversations? do the propel beyond So, a you and your manner, in can Rainbow Brands Rangers similar ratings, Genius higher initial

Andy Heyward

I Well, or multibillion-dollar these dream, Strawberry of of hits, be PAW of there’s fraction the of or Pokémon, types were become PAW Patrol. magnitude those have Ninja to a that would And fortunate businesses. -- a magnitude the Power mean a of Rangers hit I Shortcake if or our come continuously, a or so -- they you of a Patrol get a mean Turtles a any along we hits

in that categories, year. too Master all billion said this that licensee storm this But, want at that a sales to Patrol if from for is would don’t signs perfect total Spin amount Everything of magnitude. but to we’re say the positive we the is early $X that just I toy to point. can Toy what It’s was was have you did I say all in there. what I place know Master. As last the hit of the published PAW going are

de is broadcaster. superb It animated talent television right absolute I creative the the in if out don’t crème industry. the the shows industry; have you’ve the crème. the of of seen la the the came come didn’t it motion out picture shows are that know We shows is yet, with

Frozen of successful most the picture’s create from Walt motion people have animated this Lion we King Disney’s show. and So,

place. in in So licensees are everything The the is broadcasting is in place, place.

mute, going viewership just Porter. there, Michael, for the if products products. consumer If to down the it’s the show is viewership Now, sell. completely there. you’re kids Michael to come [Technical will is designed Difficulty] is it the This speaking and like consumer on

Sorry.

ahead. So, anyway, go

Ishfaque Faruk

Okay. did Excuse Nick -- Yes. so to A they you might… Jr. Difficulty] as to how indications is [Technical that follow-up many give and seasons me, sorry.

Andy Heyward

indications of us someone sorry, what? they over Did am I you. give spoke

talking. Michael think your is not mute you I on line hearing ahead. Go and Porter, we’re

Ishfaque Faruk

Nick indications many Rangers they seasons Jr. any might you give additional how if Did it of for for? Rainbow Yes. renew

Andy Heyward

did telling scheduled never pleased show, first than they the days tell week. But, that No, of that that two they importantly runs were they us very two of the after only after the us would performance additional right broadcast. and do with more they

Sunday we now running So, were well. as on and Saturday

Ishfaque Faruk

And you have? other portfolio be -- the existing Andy, you big amongst than what that property Rainbow your could Rangers, next

Andy Heyward

and creative now. Well, we again, Stan not very, Comics for on liberty the it Rangers highly that very and get one and marketplace working Rainbow yet, less announced am have I we that out with portfolio team, we’re feverishly than have the to been no a pedigreed ready of but do Lee to it, important at coming a hasn’t very that’s property the

Ishfaque Faruk

Okay. number now? Amazon And have subscribers the disclose last of you my -- question, you from can Amazon right can

Andy Heyward

free have for don’t should call to offline than certainly that It’s And that. he you. dig -- we a CFO, Bob slow but Denton, it to can give continues you more and build. our build, I can up that and get

Operator

question from Please Advisors [ph] is All with [ph]. next proceed. Tucker Our Above Anderson

Unidentified Analyst

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Andy Heyward

Netflix. was Netflix up being picked know, Netflix. season Yes. show on Llama numbers. Nielsen on is for second you does release a broadcast as The not Llama,

performing knows been not internally people that So, their top nobody performance. it’s I’ve But, preschool show. told by the among, if

the middle in business growing. fall. production with We’re in delivered consumer be It on The second will the them season. is of the products

We’re signing more consumer products.

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So, the I dig if you preview for more can up and we can wish. speak offline,

Unidentified Analyst

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Andy Heyward

it’s years other a or be property to but appetite partnership points. a be Marvel working right that not ago answer to has now few in an Rainbow be is have Lee. I full a time. extremely And a are cannibalizing field, to in yes stuff Stan Yes. as retail moment now, for priority a is told position it. mean, will And a regarding company, things -- got by a we with tremendous competing Rangers it’s one his some attached retail Stan to a that and it’s marketplace, both for One one we The major and who open celebrity to told it we all from toyetic. the more unique that got back. steam we said speak will just by with we very niche us It’s shortly, there’s such for on It’s right ahead that been were been superhero I have going and

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Operator

Instructions] [Operator

Andy Heyward

there excuse He for thing I who characters seen spoke. me -- a one timely unicorn extremely Rangers, And saw is are just Target of mentioned add XX-year-old she was who some Rainbow Tucker want those and an to ago daughter and unicorns so she for just costumes. for Floof or you Anderson with I Floof. of I who have one at -- our month now. unicorns not for that more got have Halloween

everywhere, are everywhere, a they this they’re So, and unicorn. is branded

steals a the show. of is Ours’ called who a the character fun Prismacorn because it’s rainbow unicorn. It’s lot very

Operator

question. [ph] Presworsky, with Our a next from Please your Jonah proceed shareholder. is question

Unidentified Analyst

On a stores, the in a or the do to time Llama, or it’s going while? like similar it’s going things, long when boom to know Llama be other you take the

Andy Heyward

have doing this more to beyond the of we marketplace. is second the done year. that Penguin, the see range our number and We a appear coloring in are from books, in key own have marketplace publishing, in books that all those publishing of publishing I think we’ll we and start with product pop-up to the books, quarter being they the out are do rolled licensees, more in activity going

have master toy license. We a

quarter reading literacy. By big politics way, Llama at the in preschools lot will Llama of We her anybody all Staples over don’t to a she Obama brand the it popping Los if this some one of see books a to and Center family has second is, is a that I the things you products. what with kids, are number whether television. who have up. and who to It of is to storyline. Those a week. went was book mom a she happened was Angeles not regardless of the metaphor a I Llama would of know promoting subsequently start Llama, and today. kids, very she was Angeles And familiar contemporary your say and single Michelle raising a different in positive And is her it’s childhood of raising Los awareness

Unidentified Analyst

going to line Mattel really? Is be for making products not too, that or

Andy Heyward

No, there. licensee the Mattel is not

Unidentified Analyst

Who is?

Andy Heyward

of the or Mike you I here back one don’t email, send me it. you us the off come an Porter, top head, we with name -- if to my but of will have

Operator

Mr. comments? Heyward, at this there’re time. closing any you have questions more no Do

Andy Heyward

possibly a receive had viewership informed No. everyone Thank keep you numbers you, you more as continue to we on auspicious start. We have all. everybody. Rangers. couldn’t Thank We’ll Rainbow

Operator

This conference. concludes today’s

may this for You your and lines you disconnect at your thank time participation.

Kartoon Studios (TOON) 19 Nov 182018 Q3 Earnings call transcript