Earnings call transcript Q4 2022

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Operator

Greetings, Good evening, and welcome to the IDW Media Holdings Fourth Quarter and Full Year Fiscal 2022 Earnings Call. [Operator instructions].

I will now turn the call over to Jen Belodeau of IMS Investor Relations.

Jen Belodeau

Good evening. I'll take a brief moment to read the safe harbor. to during in call, general to the in are made prepared in or differ statements that nature, or uncertainties which remarks Q&A subject anticipates. materially forward-looking from this actual the either conference the specific may those Any cause and company results risks session, whether and in the company's These risks are but discussed include, not limited filings. uncertainties and uncertainties to, specific risks SEC make those have or either obligation update forward-looking made to that or they cause differ may forecast. update IDW results assumes no may to statements any factors that the to that actual materially they from Please page release of note is website. earnings Media Relations IDW Investor corporate Holdings the that the IDW available the on

Grafman. With Allan. of that I'll turn out way, go Allan Please the to the ahead, over conference

Allan Grafman

the strategy thank joining full quarter for us. My and Thank you for October XX, great have an on provide and XXXX, fiscal our will XXXX. year everyone to overview you call to and of execution remarks with which It's closed us. fourth you, the today

with just about thoughts your Brooke CEO happy questions. some our remarks, provide for After provide now our will take around our forward. and in details results, then months CFO, we'll vision moving I'll and around seat, IBW Feinstein, the my financial to our five strategy Additionally, be

XX%, level, of finished with growth strong XXXX So on results, operating to at consolidated our results. improved Brooke profitability. revenue will we but a fourth provide a results deeper high dive including and quarter enhanced

Key driver this was primary of the of during Locke third the growth. delivery season quarter & Our of revenue the

delivery Locke Season of Key growth of consolidated year as well and X Girls. fiscal of achieved full & revenue For X of Surfside included XX%, which Seasons we of as X the XXXX,

fiscal progress made year results compared improving as profitability to XXXX. also our operating year We and full

Now and in to year. the where coming look future going the we're let's

constantly submissions growing. let coming in industry to with is heightened today creates of one this how me valuable library our in property opportunity hundreds is our go our library IDW, a about through of of focus what of frame leveraging tremendous and spoken To back intellectual bit have libraries the most step our each titles in year, We our on the basics hundreds strategy. robust we believe for

IDW in along with its teens for as all is tweens, the top work comics some novels, and leading of adults. of original as publish traditional creators industry the and known print a kids, graphic best shelf with publisher well to we in audiences, titles

titles late Called them and examples personalities some partners. by we're March Us They And of These Rodriguez. Congressman Takei; pleased to Locke and and creators, the you and Enemy recognize may by Joe well-known John Lewis; George are Key by are Gabriel Hill call &

with new publishing yet or creators exciting release characters. unique on foundation intriguing positioned submissions visions. well ability concepts, and from to also is and Our first time undiscovered every goal team identifying our and new and as With original stories to and of IDW publish hundreds new, capitalize year creative reviews of the content find solid

perhaps It even feature film, that of video. our entertainment so can can a podcast move series, vehicle have platforms, short multiple show, to a environment vehicle take We a to to best focus the long shapes. today's team to in media television entertainment opportunity And streaming that many work success. idea content be and creative a a could acquiring which or talent on identify, top published original financial attracting submissions from

our as talented our fairly creators. best partner industry choice at its goal. that content Continue are the recognition simple. most from core, increase our first So we to the strategy presented That's creative of is with the

novels publish are and audiences successful. to is Our second and resonate broad that graphic comics with

feature shows, V and & Faction. and comics Wynonna to include date, third Earp, our novels other Surfside stories is and Key, platforms. those media published develop Lock And like entertainment TV content, podcasts Wars graphic October girls, films, our goal vehicles To into success

speak are projects in there it time delivered development getting being entertainment virtually the We up. it to confident come, premier time agreement to project develop place to year, At achieving developed. a deals and have this Having had from last into entertainment that that, XX are said we success. production, to idea we getting about an having no it takes to currently more new and successes

difficult, and can to team executive is how Predicting entire that our the shareholders. business. know be frustrating with nature is of I, that timing It along the

of IDWs our control, library reputation focused growing the can partner we a platforms. that creative material continue excellent while are that from on of inventive we media see submissions to expand creative as identifying so believe also of go we the We material choice to on variety distance what can creators to continue

realizing during and months our first early of From I experienced my X company its what potential. the enormous I've seen stages as is in CEO, believe

to strategic on financial XXXX, various the We will we keep the and the see and as publishingdrive control, IDW which opportunity of continue focusing we to Looking work move properties into on through are returns to initiatives we together optimize Entertainment tremendous year. the you Publishing for efficiency. we apprised IDW intellectual

scale our more term, very Over drive and is company medium profitability. and we'll consistent to the revenue to enhance long positioned

ahead. growth to to Long-term platforms. entity and we discover drive management independent be team, and and the continue as Ultimately, accelerated move leverage energized are respective to XXXX, brand creators to will we, we rewarded. through as well our our our is a of drive we position investors new IDW a grow all our to pipeline. media entire of strength project leading across positioned ideas content are we work and the As lot have library a

over for over the turn call I'll Now of our quarter XXXX. fourth CFO, to go Feinstein to the Brooke our financials

Brooke Feinstein

I'll of fiscal of 'XX. results fiscal I fiscal the and comparing year Allan. you, full the results, 'XX Except remarks otherwise, be three fourth full year be My fourth will XX-month October and I'll quarter indicate XX full fourth the quarter 'XX, on ended also quarter XXXX. today to comparing periods Thank fiscal XX, and results the focus 'XX to where fiscal

revenue strong million 'XX million period. QX to Ronin the Primarily The $X.X increased prior IDW the fourth also $XX.X to XX% 'XX. a the fiscal revenue to of comic Turtle: year was quarter of compared in 'XX. in #X compared revenue decrease released reflected last year release Holdings for million $X.X titles quarter ago. Media in Publishing million IDW's overall in to Teenage of $XX.X decreased fiscal a $X.X compared million $XX.X Mutant year in to number Ninja 'XX fourth consolidated million 'XX to and the related

to exclusive for slightly due to an Publishing increased Hedgehog. revenue related XX Sonic $XX.X the increase million, Batman in increased retailer games an to primarily market non-direct increase to revenue and fiscal related Adventures revenue, revenue in

decrease strong was to US market a offset fiscal Called sales by a for revenue Enemy. fewer in They direct year addition In and due Teenage sales Mutant 'XX. decrease book and published to to titles This compared Turtle: market Ronin Ninja Last in digital The being

& quarter the of for 'XX, $X.X In the Entertainment the million, of of of X to fourth IDW delivery mainly Locke Key. recognition reported Season of related revenue revenue

by IDW Entertainment the primarily well Locke Season as reported of revenue the million, X as full 'XX. of & of fiscal For driven X X delivery Key and Surfside year of Season $XX.X Girls.

from period. the in to a $XXX,XXX from fourth income of was XX year quarter prior operations compared the of loss million consolidated Our $X.X in operations

IDW of fiscal 'XX was in breakeven For million prior in reported reported million Publishing's fiscal in $XXX,XXX of of loss the from compared fourth October compared $XXX,XXX 'XX. loss in compared of XX, to from operations in the full a in operations period. $X.X quarter to operations the XX, loss Publishing loss ended In $X.X of year IDW to XXXX, a million $X.X we operations 'XX. a of year operations loss a year fiscal

$X.X a Entertainment's quarter operations $X.X IDW 'XX. million million from to of compared quarter operations in from fourth was fourth loss the of income

net in fiscal prior period. was or share $X.XX the from or IDW fourth per Entertainment's net fiscal fiscal 'XX, 'XX per income or the a share net a $X.XX $X.X 'XX. year operations Consolidated per was of of compared loss $XXX,XXX million or income net $X.XX $XXX,XXX to an loss In $X.X was in in compared of quarter $XXX,XXX to million compared to share in per 'XX. fiscal share $X.XX operating million loss loss for $X.X

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

we head XXXX, our the As into us balance resources provides execute sheet with to strategy. our on strong

efficiencies capital continue deploying increase growth. to Our judiciously and to drive operating plan long-term is

That concludes Allan? remarks. my

Allan Grafman

you Thank much, so Brooke. Wonderful.

back questions. Q&A. Now you Operator, to we for welcome

Operator

[Operator EF comes Edward Instructions] from first The with Reilly Hutton. question

Edward Reilly

priorities if CEO, for you here for a been months you've on just your bit top Allan, expand guys. I'm maybe a wondering could now Hi XXXX as few

Allan Grafman

delighted. Ed, and clear. our just are reviewed We really priorities this

going carefully. At focus, And We which Publishing very, Random which be have nurturing revenue we the group, assiduously that key be X. have we a our we're a are not will focused some House we only to Penguin have relationship with core in instrumental that growth on. but of consists growth very and

Entertainment, we Holdings, breakout this place that will pushing the there initiatives that maniacally into bear bringing we On working options are Media digital know many have production. to we the focused that in that that we're on and potential control have what is we but in don't some We year. we we have in on be

So the focus. that's care

at into fall categories, which have it In property other They conversation can the to through There that. some companies If have we'll bankruptcy. tried are near-term I We're our in a looking very first, five fallen of briefly: sense, past, Motion intellectual challenges, some Comex. some monetizing opportunities. enumerate the have there. others form a makes

that exploring we're So carefully,

very podcasts A return Third, our share. for our and category and can where is careful fourth in a use property we with exploring we mobile resources. We're how intellectual contribute games. being are we

And We using is video. games. category have our property in a fifth our conversation possibly short-form intellectual

really we we're every endeavor. but are those some our if of gets of other We're choice will important focused in being on on really succeed So which term, focused near because core. my partner that, attention, we the are

Edward Reilly

projects, give stand these wondering then Are some whole us Okay. greenlit? indication could are And process. on officially Just some options? you XX projects maybe the of if of the Entertainment these where these within

Allan Grafman

asked that needed that Board I'm Ed, with that So so has that been you because internally. and even question clarity glad the is

how how as within about about we how talk interested talk standardized talk amongst the them Board about company. parties We to standardize We - such have the with going talk with about these. external them How yourself. them we we we're and

number a So that. don't first, I outside are when We is is in have we're talk there about a negotiations. number, list. large very negotiations, large reviewed It the don't about of what we company the talk

contract is money do that that means use and signed Options The option. modest we second term a moved. has been

something where where Locke That is. is third the Key. which category that was The is been the operating green where category, is put super saw is moving the clear we & into we That by and is is provided production. maniacally has towards I've are focused. been the important most month leverage opportunity with That

to it's really into great Entertainment options. number number control, do of great our team need have tremendous clear on cross to we base focused to outside it's line, a something is negotiations, really step that. to large but that our is put the production, and that on have we're of What home be finish and of

that's is we To option category talk do to what is, and So clear put make money. into talk an don't we it's about, negotiating, clear, Options, modest try three the production, categories. we be third significant. And about.

I hope important a for So topic Ed. clarifies you, that really

Edward Reilly

Absolutely. Yes.

wondering XX projects in entertainment you those the between silo options and categories maybe Just greenlit can the if grid.

Allan Grafman

can There publicly. number at this this projects, occasion I'm a optioned this announced? those that At production to we've is small have we a at Has time, put is small, about So which in. spoken which announced, into believe Brooke County, we've today, book. There production. time, that of one Essex none of a I been have called say sad been jump

Brooke Feinstein

That been Yes. has announced.

We are not really the production. involved in

is producing Canadian top that being in that, fee are on of getting We Canada, and an just the produced broadcast. executive

Allan Grafman

thank Brooke. you, So

that's and we production. a small So

the control things. lead at to we someone to So option and important produce great enough the is could it. it's time, It felt IP, positive modest. this But

Edward Reilly

you. then X? Got Season indication about Okay. any renewal your And for Surfside Girls

Allan Grafman

future been more has and action, of not we're been current conversations, has in Apple current have Its at the it conversations. we and furthermore, live for Girls Surfside we in share all discussions our was We're and its form. form in not Girls, renewed tween-oriented listeners when can. renewed and So Surfside about we'll

Edward Reilly

during Okay. the to you. a you Got in titles that then to review recent year. And you mentioned radio new release XXX expect XXX

the to Just this this new titles wondering compares of of number range year. new how titles released

Allan Grafman

you Publishing sorry. are I'm the you Could speaking about group?

Edward Reilly

Yes. Yes,

Allan Grafman

group have what has increase significant So we a planned. in Publishing the

We that. have reviewed

towards we of -- Our successful the in fiscal are we be will it's expectation is year working but more by early that metric, course, every being

Edward Reilly

last the Brooke, looks And SG&A quite Okay. just fourth one driving what's in was wondering for it up quarter, a like me that, bit.

Brooke Feinstein

Yes.

had booked, was easy CEO the severance over in cash years. out be it paid and all So will that's one. We two an that next August, the wise

Edward Reilly

you, guys. Thank Great. Okay.

Operator

The with Research. next Singular question comes from March David

David March

quarter. on Congrats the

up you - last to quantify just SG&A? could Could First, follow on that non-recurring question. you the Brooke,

Brooke Feinstein

I could. It's guess I about $XXX,XXX.

David March

the And as all That's Key residual Entertainment was the in I of Okay. guess on hitting revenue this helpful. side. any Or of 'XX; around part year? any opportunity revenue that QX? Is Locke fiscal then start there realized one we question & year

Brooke Feinstein

Yes.

fiscal related prior was revenue the all this year. in to the So all seasons of

opportunities other that are team Entertainment exploring. the is currently there However,

of open. So that's kind

David March

And just us Okay. titles. titles That's what expect could have early these to obviously, But specific I too around the going so sense genre generally Allan, in then, that give you idea to on of pinpoint helpful. that projects, guess, forward? some we fall speaking XX a

Allan Grafman

that, two by metrics. David, So try to can I answer

including have XXth, including agreements different Bros significant century, tenth including of Cartoon diversified group we including First, Universal, including Lionsgate. Hulu, partners Network, a including with Warner

So hamstrong. not not diversified. We're to. We're we're tied

relationships we business across to is all we relates of the So four are quadrants. a genres it diversified As called have set within movie genres,

teens children we adults. for that animated have range through properties from So tweens, Cartoon the Network do and and

wide to say excellent we us relationships have set opportunities. enough and of And give portfolio of intellectual property that a diversified would like a so that I

So I your hope David that answers question,

David March

into gaming. that mentioned talk correctly? I it there? about timing helpful. forth? talk-I some that's Store And could mobile opportunities mean, and Did exploring so those broadly you kind if what of perhaps low-hanging sounds And could And again, have you've Yes, any releases that fruit but iTunes a of are be any the bit on you titles, Google perhaps perhaps some you you hear little the obviously, maybe like might possible in and

Allan Grafman

Console long timing So business mobile the was near do in I Console been Mobile before, and the not games I've business. say games in on can't, it's not. games, console take also very except time. term. I to a

can us are focused intellectual and on our see if that monetize We put it. into opportunities cheaply to property allow will games we quickly,

in do capital be to Just we our clear, not invest these Initiatives.

- little really yes, across games. be are. some I wouldn't We we're We call I come but may of explorations People don't or those conversations. bit who have we not could if future, invest a us, money in in going I'm into that's it we're David, We've to and conversations, mobile it's ask put including podcasts the and going I'm categories. where them call interested. said to negotiations, the to But

early it's So days.

David March

solid forward you cash, a you And look pretty I position. I Sure. million It is year mean, sense. do that given fund then like me, have? ended the as that it'd and lastly the a liquidity makes in going lot feel that you the the years $XX next with you operations for of which for structure guess be just guys I pipeline you see if mean multiple forward, currently to sufficient expense

Allan Grafman

strategy to is have and and beyond what our to we partner cash don't in XXXX people focused want in we're sectors, strategy That We're we're So cash. our who including being are enough said, project strong that. execute to careful, in I use other stronger and to with

able for we're going conserving executing and XXXX to on to focused we're that plan, do cash, be So our

David March

a you for for this number slip I'm in. good. capital projections of Sounds let me sorry, year? more have expenditures one Do just

Allan Grafman

Brooke?

Brooke Feinstein

capital mean you do exactly by And expenditures? what

David March

investing Just purchase the going on hit a cash from the anything flow line of new. statement to that's

Brooke Feinstein

on year. mean Like would assets hit And we improvement and and private equipment, our balance stuff. this of old leases all have the you'll I year, assets and that see signed two new sheet. basically ROU this those the and the

So I would minimal say very

Operator

no As questions, session. more our concludes there question-and-answer are this

Allan Grafman

all. you, Thank

Operator

your You lines disconnect concludes teleconference today's Thank this time. your This participation. you at may for

IDW Media (IDWM) 19 Jan 232022 Q4 Earnings call transcript