IDW - Earnings call transcript Q3 2022 | IDW Media Holdings, Inc.

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Operator

Good evening and welcome to the IDW Media Holdings Third Quarter Fiscal 2022 Earnings Call.

During management's prepared remarks, all participants will be in a listen-only mode. [Operator Instructions] After the prepared remarks, you are invited to participate in the Q&A. [Operator Instructions]

I’ll now turn the call over to John Nesbett of IMS Investor Relations.

John Nesbett

evening. Good brief the a harbor to moment take safe read statement. I'll or conference statements the in general cause are actual made from that forward-looking differ which and call to Q&A in risks subject during whether results in Any may or the this either company uncertainties nature remarks the session, materially to specific those prepared anticipates. in uncertainties but specific uncertainties discussed to are risks filings. limited These the not include, SEC risks and company's and

statements actual corporate that either make those obligation assumes page differ note forward-looking IDW release the Please or the update IDW that Media materially forecast. have to may Relations earnings they of IDW any is or factors website. no made that results from update on to available they Investor Holdings the may that cause to the

will I ahead, go over turn call conference now Grafman. to Please Allan the Allan.

Allan Grafman

And John. you, call on everyone us. Thank joining you for thank the to

my IDW is in the graphic with is the companies this the build media first on has IDW, solid CEO XXXX. of comic independent resources premier country this of to in novel about both IDW established. divisions. in outstanding While our excited and Company publishing entertainment Board the joined opportunity as the one foundation call and I I'm

potential been strengthen original our our accelerate Over employees. the we I've content to-date to to strategy past library. several our spending tremendous talented with have progress time our weeks, growth. We've made with And solid

our relationships Our growth leveraging will with creators. expertise come internal strong from our and

to for watch facilitate will be broad just stories the appeal relationships a we growing unique us. and audience. and characters continue new will IDW, And new company that develop that to We opportunities bringing to

look many weeks, in coming the of you forward person. meeting I Over to

which subject around provide our and to XXXX, results, Now, of our provide of July and overview then remarks, Brooke CFO remarks during your an call, happy will XX. details we'll of our will Feinstein, questions. fiscal my execution the strategy year quarter closed be After today's onward my third today the to financial take

revenue to continued XX%, they demonstrated Surfside of quarter TV related Girls, of growth the progress primarily Apple third on delivery mid-August. Our in viewed and first season which of our

moved we our projects bottom the which of year fourth original contributions heightened also quarter from on expect to end revenue we October, adding our encouraged of realize rate at close fiscal our to at focus toward & line X Locke Season the by new delivery As With Key. the and entertainment content, we're the of we're roster. of

and on solid content. focus and beginning that And our We library. with to announced To in streaming IP expand we development efforts our and are are Productions, our to and Publishing developing original publishing of based range comics. to on August, Top-Shelf series committed our end, networks five IDW we television well-known novels, acquiring see services graphic sharpening develop traction a series from deals studios, to

authors and originals stories, Our most creative library the and industry's and into content feature robust the continuing look creators. tap films, podcasts we leading adaptation for our and to characters forward stories available, represent compelling to with some of

with we our currently recap, pipeline. development XX in A XXX have the at titles original in titles stages library various over new

each about is titles add Our quality year. original to goal XX

on a announced Jeser the Dave In a creative driver our audiences. sci-fi accomplishment, is and Matt and series, to and Our based Silverstein Time. original for Family IP IDW of the comic launch recently book with the of and deal an first business, comedy project, access genres co-development economic also providing television new noteworthy a engine we

open to Publishing between up projects, goal compelling bringing we We contents Through multiple for with can divisions, our Entertainment avenues have working our distribution been the time. to platforms. for thoughtfully new strategy new advance our of partnerships some and co-development audiences creative across

time titles with original remain our to by to a partnering response of positive on growth develop partner. collaborative and focused creative industry beginning stories platforms. the for of and and to We that strategic IDW, will value a members. exciting seeing This work recognition creators, a realize a really just and driving heightened are we of across diverse are as resonate results iconic independent by our media We characters lot is of team lot

media very projects our XXXX, we As growth Likewise, as close look drive accelerated balance of content strong strength sheet pipeline relationships. of our leveraging platforms. library solid through a a our new refocus to to the and move our the we entity independent provides creator new across foundation to are we drive continue all developing well by and strategy as leading our grow position positioned of

Feinstein So over Brooke to the over to quarter go call now, the of for financials I’ll XXXX. CFO, our our third turn

Brooke Feinstein

of third Thank the XXXX, quarter results the you, the XXXX fiscal today XXXX. where focus will on My months XXXX, July our XX, except the of to our indicate year quarter ended fiscal quarter remarks Allan. third three otherwise, comparing I’ll fiscal third of be I

Media revenue in the to $X.X #X year comic ago. House million quarter slightly Last IDW to a compared million transitioned the to period, in The in $X.X prior third direct a released $X.X Ronin same revenue current this quarter. primarily increased during Publishing Distributor the decreased to $X.X titles release year quarter in million market of fewer decrease XX% the million year. the Random Holdings $X.X million year to related strong to and to prior Penguin due consolidated of third year compared the

exclusive collection offset Sonic Teenage the a The Ninja Mutant sales were saw are Ronin Last and only by as strong These Called of we in They we Hardcover strong revenue, back Turtles games previously and book on market Enemy. from Hedgehog addition, In sales orders decreases filling games. Scholastic Us decrease partially created

no the year $X.X of third of to the measurable to related increased revenue one to Girls. Entertainment delivery revenue million Surfside the in quarter prior of XXXX period full compared season in

period, to million a loss consolidated primarily income from operations by quarter our $X.X operating Our third the entertainment driven of in business $X.X of an compared increase year consolidated from the was operations the million. side of prior $XXX,XXX loss from in in

a cost $X.XX in Net $XXX,XXX offsetting or of of third fees period. operations income loss $XX,XXX income of in in quarter third IDW or from operations a share was Earp. from third the production to IDW loss million of was included compared in $X.X was $X.XX quarter as operations Publishing’s from quarter compared recouped associated per the advanced Wynonna the of prior the loss compared XXXX. with million of from third season $X.X of was $XXX,XXX four fiscal same year Entertainment’s XXXX, $XX,XXX to operations to in $XXX,XXX share an quarter net per loss

current totaled to XX, in held $XX.X had July no now At capital, balance assets, $XX.X liabilities and cash our sheet. equivalents Turning current Working million we cash less million. and debt.

library sheet continue we solid cash IP with growing balance our no need remains resources investing Our position growth debt financial and flexibility with opportunities. to strong providing a us and and the

direct library to well to feed business. continue consistent revenues our are our and original the our positioned across that grow Entertainment margin We content toward focus segment IP and to believe we we generate high

That concludes remarks. my

your to be Now, Allan questions. and would take happy I

Operator

comes your Swiss question. [Operator from with First Rock proceed Please question with Capital. Wright Tyler Instructions]

Tyler Wright

you Hey my guys, questions. thank for taking

the of is management strategy? So my question change, this a first signify does change

Allan Grafman

for in, Allan question. been for with is this and the short at been years company Thank board. is on active three Grafman. answer XX that I’ve The the time. no you having So, days this I’m

does major at strategy. this no, in change this So signify not time a

Tyler Wright

role you Okay, IDW to particularly, then as relevant second it. some about could what’s my Allan, at And got background, additional new your you. Thank question just details CEO? provide your

Allan Grafman

I Sure. to Would time. to and love happy that know content, monetize need is for intellectual property be and been What it I’ve a Allan long too. Graftman doing you about

middle roles, to of my am IDW. to shows. CEO and it is work body only that relationships If to Hallmark companies. have I’ve at President I’ve large just like you I a variety EVP. ABC growth experience, and a executive lot doing think but and And of large past part of companies that curve, And a decades, bell done of Disney focused companies, produced in mid-cap couple a including to on bringing the emerging Chairman experience a of I also several over from the

on version available more can be to just that publicly material touched the happy answer but be I’d or there’s happy on. I’d I’ve to it, what short expand that’s amplify on and me and

Tyler Wright

lot Okay, a a great. question. Thank you. That my guys, that’s very Thanks thanks That’s it helpful. for lot.

Operator

the line question from next of what Hutton. And proceed Please the comes Edward with your EF Reilly question.

Edward Reilly

Hey my guys, question. for thanks taking

if a the wondering the Allan seeing IDW. was First about talk little of next shows, the maybe continued expect delivery delivered for those year. looking cadence to you I off, you congrats, if be wondering five could momentum the new the for in fiscal forward, bit

Allan Grafman

you. I thank appreciate that Ed, asking. That’s So, are you question a

number in involved television executive been mentioned a I and a both as previously, companies. an with producer So, I’ve production, as of

were that announced shows optioned. the clarify were to So

much is market So original is the such there’s of different options recently opportunities. on shows. activity process there that now concluded in controls, number We which a the selling those have IP, those IDW

forward During some a property that presentations, with is at move the to later scripts, back there work comes that And done there with limited that’s conversations. to period, IDW. then with option commitment internal is date, for

optioned. clarify to again, those were announced that just were So

are and to at able but working productions, that. any hopeful stage those further into We this and than expecting not turning comment towards

Edward Reilly

I’m think picking streaming for platform? it up. a four is possibility a me different season if of back & there. wrong Any gotcha. Locke Correct Okay, Key don’t on I Netflix

Allan Grafman

guidance show even show, So characters, the the elsewhere. Locke can forward. – shows, with situations speak monetize stock, which I and to the party ways would so party through I is But further taking from controlling Locke where or some there that projecting instances prequels, can party a other there to I Key say either sequels, possibly specifically barrel with that it & in are won’t rethinks similar the same be Key lock, successful & because selling are or

Does monetize any not there are Locke speaking ways Key. that a to show So I’m successful while similar many your & specifically to particular question? about answer show,

Edward Reilly

and That’s Yes. it for Thanks. Appreciate me. Yes. it really congrats.

Allan Grafman

you. Thank

Operator

Zhou First question your comes from with of And Please line [ph] our the Capital. next with proceed North Devin question.

Unidentified Analyst

new did my maybe some your execution congrats follow well the on with? taking wanted company on days of your up for Thanks previous the at guys. for you and in role, you opportunities could few previous the to as Hey thought just a the and top to to of your mind given begin I but role. question, then speak involvement, the new whatnot? And what better questions

Allan Grafman

to our ask on So I’m repeat going was the little a that you question end, please. garbled to

question? So please the could repeat you

Unidentified Analyst

Yes.

well So what then IDW do for is what think involvement, you to do you you think given opportunities doing saw the IDW what some of your already? better, previous and

Allan Grafman

speak the can So past. to I

is the risk of shows. amount in put One the of of and reduction that the areas at capital that will has the developing promoting been changed company its

has company the size was very that I see you’ll and moved commitments, There of especially model. a short into the put commitment past, this would shown or capital the capital company the way for from say that through a preceding had, in the appropriate. back look too year you history over in If was large was and project active has or much two two, that not away

So finance where at we have do entirely position preferred that and we we in we partner now But is monetize where and a what focused to control success. that partner something do. do we where a to be company for not role not best table can IP, on a can the is we that are that IP we where the the

Unidentified Analyst

Got it.

the you of are to & And Girls it they the deals, great. or type does just auction follow-up Okay, potential is able deal to Surfside scale? of more it Key speak then Locke more through or a potential vary? five Are

Allan Grafman

Brooke give to and short to answer going to perhaps a invite then I’m I’m So amplify. going

exceptional, of I’m amplify Brooke, made aren’t is I not The a but that might you some commensurate of the – to types deal to ways ago. to broadly in will please? going risk, looking success upside. of to while we’re that like say on quite Locke would type was be with speak perhaps & And with for have lot that are deals we So a very what that to able happen, Key the

Brooke Feinstein

Sure.

model. was ago, years like co-studio many anymore. existence So Key And as are that Locke Allan in deal said, a signed that Surfside the the & deal not fees really is

most what million more $X of Surfside than is optioned were the executive Now a fees, these to it. deals behind there less show million which deals a range in be going depending of bit are producing of and little kind genre on kind the that $X.X on would the

hopefully answers question. So your that

Unidentified Analyst

That’s perfect. congrats. Thanks and again

Operator

And question. line our comes next Private the of proceed a question Investor. from [indiscernible] with Please your

Unidentified Analyst

like retail start more a about getting some like Hi, Target, when I have the more, come or into partner can shows expanding IDW question out Walmart [ph] comments a into like like, comics watching, it hey that. to up stuff Apple with online, we – we at you're or have, comic to like what say, related order your Netflix also store or have pick

Allan Grafman

so So which you aired, and Surfside have and Girls question shows that because glad TV & when Damien, her that does that Brooke Locke team sales. it done I'm drive like more are Key asked shows work,

change been please on And so yes, effort you amplify consistent and in there's a could Brooke, that there a has distributors. please?

Brooke Feinstein

Yes. Sure.

we So House for non-direct now. Penguin Random are our and using direct markets

So Target it's going not and going we in, to it's directly to involved in are go. we exactly if are be

allow kind of and of of that kind if seeing direct-to-consumer that. creating put our are refining our people buy at of on website that can go to comics there certain and kind links We to we to areas different times some approach are to releases accessibility the in

we're that there and of easier when the in shows kinds middle those ensuring access premiere. yes, So, of is this more linking

Allan Grafman

will viewers Damien, getting periodicals the viewership of has we that but investigating expanding if novels I expanding site and the the direct-to-consumer is much at a basis. be graphic Part enhanced of consumer, areas and margins. very, number of we and direct And profit are may is expanding these continue available, one are on challenge a available direct-to-consumer are same where that of time the and publications the

expand Brooke distributor, more to change looking in said addition with in the to driving we direct-to-consumer So addition are the also element. what to sales, shows of

Unidentified Analyst

was that all. right, All

Operator

over more remarks. our session concludes question-and-answer no questions, back management hand I'll call. as this Instructions] [Operator now conference call and there to are for the And closing

Allan Grafman

Thank to very you thank call, to all you we'll I with want together. join forward much look time and and speaking So much. very everyone the took speaking that so fourth us, with to forward looking seeing which at to you quarter

Operator

your may this at concludes And disconnect Thank time. and you you lines your today's for conference, this participation.

IDW Media (IDWM) 14 Sep 222022 Q3 Earnings call transcript