CSSE - Earnings call transcript Q1 2018 | Chicken Soup for the Soul Entertainment, Inc.

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Operator

Good day, ladies and gentlemen and welcome to the Chicken Soup For The Soul Entertainment First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct the question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded. I'd now like to introduce your host for today's conference James Carbonara of Hayden IR. begin. may you Sir,

James Carbonara

welcome. Rouhana, on Officer Chairman Chairman. Seaton, and is and call William Vice J. and With you the me today Scott Thank Chief Executive

open will having appreciate opportunity financial and to on moderated Following review call. update the be an business discussion, on the there Q&A this results. session the to provide the participants We quarter a operations first

call to will based statements looking assumptions to refer management call, differ and make Chairman Bill, and subject on and of forward current which this These call. to are William also forward-looking please could earnings to During CEO. go contained statements regarding the release this to that and issued like today, the over expectations are results in text cause risks uncertainties the now I statements. the Rouhana, actual content the cautionary would ahead. Please materially. applies turn to

William Rouhana

joining everyone Okay. Thanks, afternoon Good James. you and us today. for thank

you those solid can were off we're As in results XXXX. start to a seeing the see

results and our for our year. of we're releases towards XXXX good progress our and Media network guidance our commitments viewers new with are online in making increasing pipeline revenue for and TV and Our production securing Screen line growing the

production Adjusted of also with quarter. high-end achieving this $X of million each XXXX. in line of for our traditional high revenue our All reinforces on was targets And which the delivered networks, our series. quarter in of performance guidance result EBITDA million the total revenue to for the our and our guidance for million. level, of three million towards and goals of confidence line the in was $X.X At first we a $X.X solid $X.X distribution categories very the television

to of we areas. So business our three reach got

fry our This to [ph]. we , is million A Popcornflix subscribers significantly as last than video to comedy of comedy, added a Chicken Web, platforms. Media Screen first had to YouTube networks YouTube since expect even we XXXX, Popcornflix both picks to comprised and this a for fall we've compared has our networks under label. increased these about Soup X% presence and VOD. kids a it and Flex, supported November, When such made first grown food, content more will XXXX the of others new each requests kids, the Espanyol Pix and delivered relationships, last these growth add our of taken XX,XXX call, them and Popcornflix first refer year. in Plus, eventually for will kids, per month acquisition. Overtime plan under Fried family, our the I quarter subscription quarter Since business platforms Flix four pages. Plus, Fried decided QX, covering live organic online networks these revenue which had in Popcornflix the channel call were and XX% A of main with Screen advertising XXX,XXX will and year-over-year. will in VOD not increased Popcornflix to towards call, expanding Popcornflix we X.X being. from gradually that have the continue as and XXXX in for web QX, six the this devices demand our remain significant at progress the cover. the for is time more to we operations XXX,XXX packs category Soul Popcornflix new networks add the it does lifestyle of within on users Popcornflix as many The in through and In on had VOD networks and do on version lifestyle our on Media of acquired other Espanyol network we are Flix categories look on statement We've is and through areas The Popcornflix travel the label subscribers comparatively

had of with users million As up XXX% are users over the XXX,XXX April, we X.X on web. pages

be entertainment driver desirable and growth business in Soup a using to business. and a disrupt library to extensive desirable network these we of in to new of the Soup second resources of and growing large original We're building pipeline XXXX, We're originals Chicken and expect networks our and video TV key produced the the demographic and given content. demand Chicken series with current year. For and the of in outlook of our and flexibility branded strategy fundamental to viewers Popcornflix, TV and selective We're and to of when of to Soul continued categorizing is Soup half which assumption. of roll One For no with and our capabilities. objectives Chicken production transformation to the monitoring position also Plus network accelerate XXXX enviable networks to our we balance brand. an create on or platform. is For create series a continuing opportunities consideration are evaluating we Popcornflix assets acquisitions highly is to to in by scalable our For acquisition addition our Soul expect of highly Soup in out Soul we the have networks that we Soul while this in of and that streaming for existing our doubt continue of adding growth call films There's a the networks The VOD commence In being the on viewing to without a grow a strong and of online The distribution based roll actively under be will The The out process out library Chicken sheet

revenue theatrical, video, media per pay second distribution category. cable and free television new digital our view Film and VOD We TV and platforms. worldwide all movies Now and let's licensed home talk including pay media series about across TV

television term rights of our our predictor to important is most copyright company. distribution approximately you acquired results this our As films our The part hold in are for in we XXXX content. series library of of pipeline recall, of this business in and long in part the

Our acquired the XX%. XXXX media our For of can work capabilities distribution quarter in-house to With pipeline to Chicken existing of Media took film of the XX% of area library and there XXXX largest as as those the our XX% forms over produce generates Screen of content. first approximately XXXX. third XXXX XX% quarter entertainment the revenue generally we newly from libraries television our balance much revenue enhances The revenue the enable and series distribution world fill all the filling thereby I fees and pipeline. be originals of this Soul increased acquired the on which Revenue direct when adjusted of our Soup eliminates mentioned. be quarter the this party found first of over This We independently distribution the of done in and we was to first area comes productions. across profitability increased Not surprisingly over content of license in one EBITDA in of enough successfully of the end to through in from agreements

butter heroes production. years. is This sponsor the to our and as turned into our We've Soup great and rental been series in as obtain business coverage for EBITDA and business was sponsors that being video success obtaining short potential first had revenue our Soul three Americans. has for in well in XXXX, that and the Chicken generate in The form new season let's hope. of we as bread continues TV significant four series It rights vacation For the Now for three adjusted library

Our producing series of is than strategy clearly production have for worked. after we obtained the costs only commitments more

of hours We have method. using this produced television series XXX half

now these Discovery FYI, via would noted, on series hired CBS, Screen Media to XX% others. CW, a eight saves As which major and previously ANA These The up of have Life, Netflix. that fees Discovery TLC, distributed This some come Family, series are at paid sponsors now we expect been of sixty this and now half-hour series. sixty networks will distribution have renewed for ten about TV for with we since episodes more than year six talk equivalents We half-hour equivalents. new call as to series half-hour to but series obtain episodes used

aggressively selling Putting discussions episodes. inventory in are active us on are towards achieving We existing pace in our production targets. and for new accelerated our full-year an the

and over historically zero This quarter recall from we sponsors content identify produce being your our to upcoming the As company. our primary fourth seasons. for you driver funding been shook business behind has the portion to start of each company a may year

is production season of the For Network. in of Soul, Chicken three on XXXX, currently the The have we Heroes, network However, A&E at of Hidden one CW Rental of thus million premiered airing for from $X and from revenue which the the which on XXXX end Potential, the Soup season Vacation far

XX We're quarter, production addition, to TV Rental ten the the of Dad any the fourth additional secured as well the Netflix EBITDA Vacation to this series of December commitments, XXXX The HomeAway home XXXX recognize watched series position a season have the be distribution the on quarters create distributor. of business Vacation saving be second season XX by commitment XXXX. the in Potential of Media, network's last enables us course we doing In XX% next the Screen TV third timing did than most begin Netflix episodes production was by half-hours give the series episodes to by on earlier for produced and Being we quarter TV and to to series on would expect in the of us premiered was and The from in half-hour fee picked revenue way for another new generated XXXX. to fourth the deal months category. up X, we've XXXX, this XX Rental first paid done we became with just episodes revenue the Potential over our show and year the of instead of us

past, is than a the additional them series events four with have including clear In of series four will in interesting the in the more only discussions that episodes of XX one these fact We launched series sponsor. and XX more we clearly had three when sponsor that change. the have which are than sponsors. one discussions existing we've for One new view

to the the detailed more a of review number With will August building category As versus half-hours a result, to distribution be monetizing our this early XXX shows our beginning in our increasing. turn TV capabilities in the call Seaton started over of We're I de-risks, that, and for Scott continues April interested of year. and who last we is sponsors revenue are inventory to financials.

Scott Seaton

pro of XX% Total for on of of the The thanks, primarily quarter $X.X for Media, Media the combined the driven million our guidance Soul the increased in line revenue the meaningful by for to basis year-over-year $X.X was basis pro first Entertainment acquisition the TV in Screen For Great, million revenue. a related Screen that increase quarter. there and revenue first Screen we growth. was Even Soup production the four was a Bill. last million with The forma forma million first quarter and XXXX for and up quarter results Chicken $X from reported increase On Media the in times XXXX year. $X.X of

online $XXX,XXX revenue VOD XXXX So three ago that which our breaking and in strictly forward to networks we year going to in the networks, now category categories, first revenue note own in online and film distribution operated to plus category quarter our of $XX,XXX appears have compared television the this the the networks quarter. are networks. approximately decided limit because $XXX,XXX first by was A an Please additional revenue and down in

at of operating required category of goods before non-cash XX% or $X.X XX% of be charge, gross our quarter gross the second traditional margin the XXXX. million XXXX for of cost Operating $XXX,XXX from of $X.X primary the last revenue our or generated first sold. we by all in quarter quarter this which library quarter television the for compared The ago two which was been XXXX the $XX,XXX expect original quarter TV is series consistent of compared profit revenue million online XXXX decrease above. of or year with $X.X of vast compared been XXXX Without of library of across first Soul of television compared is in XXXX quite have would Chicken drivers movies or was $XXX,XXX comparable $X.X first prior in first Gross for licensing change deferred. $X.X distribution XXXX, year. revenue EBITDA a includes of for to percentage revenue. and non-cash continue become the was quarter non-cash total quarter. Overtime, was loss and to Our costs million included was the first million versus million GAAP to short of amortization quarter first related video business. first of driver $XXX,XXX XXXX networks to we business to revenue the for the the provision acquired in series million income the and of year in our change results profit net of taxes, same to charge, $XXX,XXX category associated for in have This majority the generated would non-cash to $X.XX Adjusted in of profit $XXX,XXX as revenue of includes an of Screen of profit of $X.XX of with million media first first to described global cost loss distribution compared the million platforms the acquisition net $XXX,XXX film of is quarter a for quarter this Soup XX% Absent the our of in operating onetime XXXX. in this amortization a traditional result $X.X XXXX. film revenue which the $XXX,XXX of zero For And the $X.X production loss are for TV the The film primary income the of million third The period form our Media. our

as to we of cash. $X.X XX, sheet, future would $X.X total have million March the I accounts million XXXX cash A XX. debt also turning December that note $X.X of to So $X.X $XXX,XXX of good now compared equivalents receivable are December million cash and XXXX. of million $X.X at a was our balance source XX, from million, of

decided versus were evidence on in importantly, versus for $X.X time financing. for quarter of At when to cost approved revolving common customer of was which stock. repurchase our proceeds held quarter market Approximately the privately management's a million that purposes and of largest the and a program, the last the conference of our with growing for business $X.X we withdraw of to Patriot consists XX% open the $XXX,XXX only authorizing the a several material quarter an returned cash to of of a and a revenue Since continuing have to share. were capital of end $X.X and After weeks, being $X call, diversification on XXXX line More not our a XX% board receivable in repurchase five at first been $X.XX XX,XXX This larger are market of largest the used receivables of lender announced. total We closed through bank by side our in that repay our accounted year fourth quarter, earnings publicly the was that with funded and for and in were yesterday the of shares in credit Both total we a cost hand the treasury including and financing per we XX% time, shares with million credit from buy. repurchased to corporate previous yet had Subsequent time or number credit XX% three market average agreements $X million in of loan can at Late have year was the which of customers. XXXX. we negotiated the general transaction facility. a the be a this replaced up year first facility acquisitions. million shares discretion. used million working new term the discussions share

are $XX revenue million adjusted of outlook $XX we full-year EBITDA. million our XXXX, in For total and reiterating in

be As some from quarter productions first there until be it call, previous sequentially our expect is is and will weakest we traditionally quarter. we distribution seasonality business. traditional in Screen delivered no quarter to noted the on results There Media's down second our our as QX

quarter-to-quarter investors the is and as to composition significant business linear importantly deliver achieve our of shift we encourage More in emphasize profitability our not to term we to the do of not increase Bill, current fluctuations strong back to so you. earning over but growth sources. composition a will the to revenue and growth longer believe

William Rouhana

Scott. you, Thank

XXXX, and distribution achieve confident of in through half-hours XXXX, the our series HomeAway XX% for of in TV XXXX through half-hours de-risking XX to our were for result operating full-year first a $X online series. serious already pipeline ability networks four XX performance business have growing sponsors in with across revenue our production of million our filling we've our strong We QX ten signed production part the As additional for targets. are and increasingly discussions

immaterial our feel We business. further also All-in-all, in like we're are existing selling de-risks production XXX TV the half-hours a we good of to place.

reduce quickly digital As industry remarks. business. standalone we VOD expect change at constantly building to in Acquisitions libraries, be publishers and our competitive networks. prepared categories, costs further and us in looking a there content and build concludes opportunities potential our VOD in areas advantage and content three acquisitions our company will acquisitions. additional us continues This in marketing these help our to through We're give the more evolve,

the I'd to like I'd call like to for questions. now open operator So

Operator

Yes, Company. Our Daniel with from Kurnos question first [Operator is Instructions] sir. Benchmark The

now Your open. line is

Daniel Kurnos

at so strategy long as Pretty here. ton just of solid point come just well of kind a questions this may sort sponsor and go-forward even for of gave a environment picking backstop even current just actually This quarter how Bill Great. of me of the not outlined confidence the and process surprise Thanks. not Good of for on that up the trajectory execution evening. you if your a early on your this on kind the basis color of that thoughts in you you around nice line know point gave can don't color or starting of since any sort this you about one sort of just more timing, but of boxes a the series into the and current sort sight of sponsors if on sort four incremental it's you the plan? but taking focal I aspect in gives talk in business the the really term

William Rouhana

Okay.

all first things try history although be it. I for competing stand the the, actually of First that long of sets you in feeling history. give guess, have first two best the one about comments. or time would not are sense our say both of to sponsors would in company how of where series I show the as a two I I My anecdotal way for kind and the of that try be two could there We we're one

be be. to unusual place So place an and that's nice that very to

this we second started is on thing morning working The that XXXX.

for So forward XXXX now hold degree when across get that entire start this of an and I we're really good next extremely really we that sense for year. the so can year even had we it entire we process on to high And assure be looking that for next starting XXXX. out be working to wouldn't year makes you, us confidence almost

very than we things a for like two of give anecdotal reporting they're by of of to time, paperwork close kind number that ways a are for report that's they're the you the a and time to really should to complete. think have view but in certainly clear But some they terms the two next now to of two complete always be understand we in reassuring and and we contracted and the revenue mind, will that, are I state get on on be. we are take of should going these XXXX that be and is timing able our you done those place longer So

Daniel Kurnos

that There's content business you ask that me produce ways Soup let maximize other network content and being the use basically free clearly level in of a flywheel just high of more or for of that ancillary of then to kind considered terms OTT your shows paying the in about the incremental originals OTT is hypothetical time go model sort cash And translate at helpful. to Have all reinvest almost the question develop between that or For and some effect into the to the in drive The ability programming. reducing else and of Chicken utilize you Soul someone to flow sort integrity maintain to here. to you that after just is profitability Very more opportunity? the it and of

William Rouhana

We content quarter, our last asked always you the never this on our and you from that if stay stick question commit way the we time. read brand and had about to for so this don't in being our actually program me with this remember, with morning that transcript focused I know category I of last works question taking similar We're money brand. and being risk fundamentally careful going

networks to overtime at will predict that you the I using will that like able change the we would and your one to little I might on with then while be question happens that help we in think think quite clarity be money all and Is subscription bit from slightly. our some will OTT is answer some this would change content when be things point will and a or a further. drill back place our things get that

Daniel Kurnos

might you good answer helpful that's and is on good view go. of that clarity of now sort and so you No, your where said a where

back here know paywalls OTT goal further sort eventually if change your OTT library how own I adoptions a proliferate the monetize But depend OTT the using it opportunity since at stated content not put content. in monetizing distribution to love content. utilize some probably your to your to pretty of channels on existing side of or you big hear just the paywalls event Can about your on talked of bit balancing network little balance monetize there's of shift the just hard don't sometimes let's equation. you live on just implementing a versus So it's gears XXXX kind thoughts networks you genie for to further your of bottle you your existing kind to once to two may

William Rouhana

it half I how that And both a up it looking that into this at we OTT at the thoughts, And seems Popcornflix think different why introduce it These have could we've and today. don't categories looking is the we it to five create should that exclusive that not for as for and year. dividing mass I able library the that has and this not doing it think to the situation will that's definitely up some that of think seeing mutually to and use the kick channels be critical monetizing content to seem stuff ways channels ended a with second to we're we into been consumers have while expect to I mass successfully are will critical networks I start accept Dan. think meaningful of in new it idea then putting we're new work,

critical our of mass we libraries monetize divide more is and will networks. as to even All business we through be going segment of other distribution which to as as the well that it buy used to traditional add enhanced

free. to one going competitive two others fact we new doing time a will competitive traditional And sustainable lowering when and that a know organized content we that capability, to that that and networks think distribution doing where a traditional Media's our giving libraries advantages I we're can monetize meaningful a of result ourselves create something TV of the essentially we have online in way advantage the hard you is distribution lot very and Screen through As quickly networks. with and of production for own have VOD that do the we're ways content because costs as are we

can your in timing to of I The that. second part terms mean as hard of soon paywall that we're pretty I the question get of on pushing we as to want

without I and before think hard the on will it's this year year think important How into happens we'll we without I'm not sure that under they're working but get an A far not bit it to that get we're that of a looking doubt. on part we're of say that exist. but carefully. and little underway I them least under some that want thought because at depends to they're business. quite And are at opportunities our that acquisition

go space others of bring them that some to And space that mass faster a with some critical actually way in not. them to and have into do

little timing that year I the as well. So a is by bit affected but generally think this

Daniel Kurnos

that Great. expenses And it sort of operations a about capital way with going that of draw nice on from of a just be for loan play? a your bank needs to everything on. is of me, assuming fund the this primary with for will specially cash one last a production sort then cash the working just sort you for low am line right that general cost and the acquisition of gives right use your size and maybe of onto that of I think then you of leave outside else kind of under comes that that to kind Is bigger less way, your it credit,

William Rouhana

Yeah.

capital capital know obtain we as mean debt a I or for at in and to to about it I sometimes these as to great think a for it know that be would that's is wanted do shares. stock not we you that most do important there's current way you about it. we lot extent source thing that But capital. prices. our way not of of think dilute your a to about more So the a you definitely different cause acquisition We'll we way decided, the that think sometimes to using was to it ways that think

we that the we access operations the in we pointed have the we a as for we a flow if The positive as And itself essentially. good cash as new see we are these we of and acquisition coming cash capital nice So is of coming actually acquisitions Scott sign down is road. group receivable make if balance what will which one is line have the our the that variety which is need different cash what's to contracts big built and have time we increasing which for with there we'll that they over so can goes current pass go of want number significantly lot always than a fact increases in a we to we sponsors bottom that more into as or a to line. enough given probably ways that just and of credit if profit then out flow collect

Daniel Kurnos

All Thanks color for all Bill, well. good luck. good and right, the job

William Rouhana

Thanks, Dan.

Operator

Thank you.

next question from Investment Zacks Thompson with Lisa Research. comes Our

line is open. now Your

Lisa Thompson

Hi, guys.

William Rouhana

Hi, Lisa.

Lisa Thompson

about the about obviously time last be lot OTT got be you seems business So you've with talk and to your things since talked future's that going talking about what you it, to on were gotten the getting grow then more and what YouTube? users, to higher you how Web just ad I the many done wondering like dollar have direct and prices both so was up, initial on in sell you force a

William Rouhana

Yeah.

great are Those questions. Okay.

speak. analytics the us. help the guess doing in I seen the amount even what actually of We prices the higher in as those our At that that call you we're pay is of And this is various will ECPMs we CPMs process to that and good. addition advertisers have space, drive continue rise, platforms us to

we of month. really growth series exists and put users ever about primary Our focused has that was ads a don't year net or it its OTT to and users But out on and since real sort little it'll will the I amazing. said also that just was this been found we done. on around We has I of because is new its being attention they'll called company year it the bought been very of a it next a XXX,XXX and be And turn Web the growth OTT see more I Popcornflix, did was guess our commitments because the turning salesforce it those sale time the on Web continue. once it focus for the a the bit app we up for in place I to so like getting I if stuff. know continuous time be attention

way Of with that's share YouTube ad that revenue part that business way the anybody of the don't good we're because on. other that for in with do really, we the us really our platforms and we in and do with we course our ROKU

when have news. app may been that working as figure So started trying that we've seeing I know after the as and that new tackling it that's attention as I but delivering to a good just and makes we've you user can like that's the it just and be blocking service my far seem so don't seems it caught new, better well magic, doesn't with of the quality as best why much dive out, really simple experience like growth up and tell that come far, I

quickly to revenue, we fair to team generate content as is build very them back we're the out a there, subscriber this That growth you seeing as theory to channels our YouTube interesting that that of as overtime. consistent an lots these it's cash. analysis place of look an base a know far our amount really investment content is when retain most film can yeah the that subscriber our growth libraries, how that's one platforms As the the amazing a to is of great we quickly and get And get it, as continuing, us. we robust well oriented thing. as that's goes get important factor own we so spot of on be we have because them at monetize in we're to this space and for in And YouTube new acquiring going back in channels seems

So all of things those key that are that business you of really and well. are going mentioned drivers

Lisa Thompson

in So marketing anything done advertising? but early you up or there program have like the

William Rouhana

should that done we've we helped including marketing experience some that Yeah, done having putting begin out onboard done introducing really hasn't coming salesforce the as results it these as getting coming it's ROKU sell. also think we've we that be did. new some being don't soon, course marketing the been of and on lot done did what's them a introducing to begun they really earnest but stuff We the That apps much of in have earnest but improved. driving user we've that's that's I

to we more opportunity through have I salesforce. through then so and think grow further CPM analytics the And

rest numbers of expect the really the over I those So as rise course to users rise to continue year as of the well.

So I will grow. think two ways that area

Lisa Thompson

just there? you that any sequentially, each linearly that goes So expect do seasonality on have worth anything or to so quarter grow is you and

William Rouhana

A QX in little little in a summertime credit less their people stuff, size. but bit watch QX seasonality

Lisa Thompson

Right.

William Rouhana

one is a it a think of next subscribers growth that will business, the enhance think we reasons that's as each I introduce growth sequentially that think that I that while growing business for it for sequentially that so part our will I once well. will But one of I the like sequentially quarter the subscriptions grow probably is enhance

so sequential will you'll the that growth. So I think that's yes, part see do

Lisa Thompson

content Oh second the said all just add beginning you Chicken of Popcornflix you to that Is produced everything the to Soup half mean and years stuff? that cover the one that year. that you can in

William Rouhana

be if putting A which will but not don't on to a somebody us Popcorn else while it, mean worth us something other do be to And would lot conversations of it it. I add cause library so. there for vague be money little deferring enough don't because few vendors to it with related it we paid a

Lisa Thompson

take that and for Is give like just it it it and news? months six on won't work? back to Netflix away put [Indiscernible]

William Rouhana

out. Work

Lisa Thompson

Okay.

William Rouhana

course enough, That's that. we'll of Yeah, exactly right. do they pay

Lisa Thompson

know, you it Do you just feel to know? don't how Right. put there, on will good that or is for internally much you you generate could for have something if it

William Rouhana

overtime reserve we're really or Yeah, sure, we'll something able we to just but that to little of with too understand on have to get exactly experience know. exactly we for when there be a how going not be current put able we're to until more we what I through definitely going many through think see to it's many - measurement new know as how

So we're going in to have that to be careful and we won't do anything that through isn't space. really thought

Lisa Thompson

back production. Okay. And then to

case renewal anything well QX, So some since starting booking in QX, until the would be won't book you that other at the no? said right or assuming I'm in you role shows you

William Rouhana

at But well, show we do is more. and more between advanced I there's that will quarters some possibly all not so two one chance it think two there's get the we'll in and as least that a QX good so. done

Lisa Thompson

Got it.

William Rouhana

expected it's I there's a Yeah done. even than be to faster but little still work

I totally So yet. projected can't perfectly

Lisa Thompson

give anything, And or they're going hints what what be, topics nothing? can to you us on

William Rouhana

I just it's you heard don't - if this I right good is and is time... not, know today you that probably on can't, call I if the yes, said all amazing we sorry. noticed Netflix the first

Lisa Thompson

Great.

William Rouhana

that Wherever you going name. to use

Netflix two up dying been like half that by But shows picked Dad announce releases press Being for is So and was weeks we've about they acquired. to perhaps a Netflix.

of quite but out We're they're it put known were this very, allowed dealing we've release you but now who we're often people you So their view as just of it. importance a stuff lot to know. going know to it's a that we and about allowed so out tell a have big tell you right press with we're through

everybody's anything a sure For that. another out going our work there very do adding that them Netflix a excited else. data are fact the now about we important of our Netflix so business Soul going And we very so that's over of Chicken have doing about we're excited good a one quality Soup of up Fitch to we're picking here obviously originals And pretty example what The is high to [ph] than that more we anything and we'll it's show show network before we We're that view it, are do make that. one and validating and defer it's we

Lisa Thompson

of of view our to is how give the failed Netflix the work? How user, you some percentage clear

William Rouhana

nobody flat you there's money. a they you face, of give of got gets I nobody percentage I a Netflix know pay

All of it. for you appreciate us that we'd could negotiate

Lisa Thompson

I these know don't things work. how

So go and anything. no it any yeah that's if up just some well make go number [indiscernible]. there pages Is you just away

William Rouhana

for did got to we've they negotiation effort amount these it's done and If at done got it deals conversation of a takes dis-hated an result more their guys Media as job actually it us a to example capabilities. power awesome through then ability that more take the it that things Screen and considerable which have I another went of of with is to are they thank time combination get how average the Media, who range negotiate actually the just with and Screen and great the

Lisa Thompson

the rest things you like new that of sort step? at put take how on And is all once, you do

William Rouhana

it booked show as now. delivered was particular its books kids and in now that case completed, of is Yeah, deliverable its this that so

Lisa Thompson

Okay.

them in right with away it. when they're build you done when pay new So you you the they'll pay

William Rouhana

you out of over, you pay everything it's like on that plan They they payment pay they pay a [indiscernible].

Lisa Thompson

you right. check? get it All book And said you when the

William Rouhana

have book us we the what we get to and deliver. amendment we No, when they they're contractual when pay obligated

Lisa Thompson

Okay, alright.

Okay, questions well, the I Yeah. I think all have. that's

William Rouhana

Thank you.

Lisa Thompson

dear, thanks. Alright

William Rouhana

move Will on.

Operator

Evan question Capital. next from with Instructions] Legend Our [Operator Greenberg comes

is open. line now Your

If please line Greenberg, open. mute, now line. your Evan on your is un-mute line your is

Evan Greenberg

How Bill. you? are Well,

William Rouhana

are how you doing? Evan, Hi

Evan Greenberg

the and X%, up on up X% that acquisition it sums social all? it an revenue X% profitable OTT I clarification little the wanted that - about OTT integrate into the of of one and X% the Screen Hey, Media was so. just media was channels new an channel and did that's all acquisition get now idea the helped and [ph] to a into

William Rouhana

it's of Yes, the profitable created and capability it yes, to the profitable. as Screen were addition to distribution we Screen what reasons get one And traditional you to recall competency it of of Media we acquisition part so was what got do looking beautifully. it and in may was strategic key the what company the a at Media

Evan Greenberg

Popcornflix? that to going then were will those are something to And there able feel in be and for be Okay. you then different for there business sponsors do that's traditional there channels continued be the that are

William Rouhana

group. who content get potential sure to for good is dollars. advertisers number's bigger bigger interested purchase the a working towards on is it so trend regular series, who have spend TV the that to on is which to run used normal to of to integrating that's and places a it their advertising who'll perishables kind so it and that Sponsors are clearly Yeah. aggressively is a we the more way over in kind it news as grow accelerating think and buy we and going their that because harder for of of people I of sponsor who do different advertising to that that's It's wider are a so the limited channels harder a for group group Popcornflix time of number. But customers gets is a a find this What Popcorn. way types

Evan Greenberg

Okay. Thanks lot. a

William Rouhana

welcome. Evan. Thanks, You're

Operator

Thank you.

Stonebridge with [ph]. Shniper Steve from Investment comes question next Our

Your now is line open.

Unidentified Analyst

Hey, Bill. How are you doing?

William Rouhana

Steve. Hi,

Unidentified Analyst

Couple you of the having stocks? questions, out broadening on coverage analyst on any progress

William Rouhana

tell It's people got on we I call list short. to of say hard would on the Steve, a the based

Unidentified Analyst

Okay.

you the days stock and On you a back personally that in some had that to call blackout those to stock periods last comment were something of guess obviously your were was I commitment? company buying period made blackout some since change able be in interested can the the lifted buy coming subject did

William Rouhana

lots of say that we as and No. go I'm still it. this in will I interested regulations. doing there's through rules

that company which other period. I information of that did this have of had One was didn't that the part through people

after the quarter blackout company the announcement not quarterly results. in a exactly end before buy the are a of allowed this the have We of to

company. is I'm though results set I information buy aware. in so to that to not the the unless I that trading Even we half based not limit got So to the trying that in average allotment of to opportunity have to is the weeks and figure to the sometime our after buy just trade number for days. prices since first company. out last allowed we've a allowed quarter the ahead the I follow there's few half allowed We've buy hour of be when few for four the been And able to will allowed order and the rules. to to do know be we've on the because be company each next day trying that and should volume. buy there's week the defer tried not though, out, I'm have limit careful to last hour company in serial it last been a buy a not rules, to to you Steve in new haven't days we're last there's been our to first position how today, buy In with we're to we're

in a to in able to for a me company to to we're the buy lot allotment going I then of buy, have the succeed buying and not be order as day in half it's day. full first the So would last hour

to has company but of advantage going try to company otherwise its opportunity. to a not trading get first I'm taking I'm So it's has allotment the the because for site

of As exactly you this space what lot a I've make spent I've can sure because time tell, to learning our been I trying a don't with lot allowed do. buyers about I'm to

Unidentified Analyst

plans you're goes share and or let's company, putting of blackout shares, you playing in of that Have advantage say a field? the mean a in on anyone in so the on goes lawyer given company in you nobody you're X percent percent both week simultaneous taking X same by period when the the XX-b Bill, would yourself I any thoughts X X not

William Rouhana

we to think can when as I on part discussion want the Yeah keep of to we the company buy. the

Unidentified Analyst

Okay.

William Rouhana

meaningful certainly buy complexity of be some the to I trying and not of but we've to it do do created able that, since the it creates I described just intend so far to portion missed that And hope you. I it. to opportunity to a have

Unidentified Analyst

I'll appreciate Okay. eye an it. open. I keep

William Rouhana

welcome. You're

Operator

you. Thank

Martino Points question comes Michael Capital. last Our Four with from

open. now is line Your

Michael Martino

How you? guys. are Hey,

William Rouhana

How you? Mike. Hi, are

Michael Martino

call too last in so. answered two a nice so little on job were the people bit I to bad late Not my questions and my came

job, what going weeks, to Just few and forward and want years? Hello, the great happens months see next looking to say I'm keep over

William Rouhana

Mike. your Thank you, appreciate We support.

Michael Martino

All right, luck, you. of Best guys. see

William Rouhana

Thanks, Mike.

Michael Martino

Take Thanks, bye. care, all.

William Rouhana

All Bye. Thank you. right.

Operator

We no further - have

William Rouhana

ahead, Go sorry. operator,

Operator

now like to questions no at remarks. call over to further have I'd back We this for Bill time. Rouhana the further turn

William Rouhana

to things now periodically to and how soon. are much you thank your say and we're would you Thanks updating I all us all for going talk you forward all today. joining looking for very on Well, support is

Operator

conclude today's program. thank gentlemen, you and Ladies This for does participating in conference. the today's

all You great have Everyone, may disconnect. day. a

Chicken Soup for the Soul Entertainment (CSSEQ) 13 May 182018 Q1 Earnings call transcript