Thunderbird Entertainment Group Inc (CVE:TBRD) (OTCMKTS:THBRF) posted fiscal third-quarter results on Friday that saw its revenue jump by 40% year-over-year driven by tremendous growth in the content producer's kids and family division.
For its fiscal third quarter ended March 31, 2020, the Vancouver-based producer of titles like The Last Kids on Earth and Molly of Denali reported revenue of $29.3 million, compared to $20.9 million in the fiscal third quarter of 2019.
Similarly, Thunderbird clocked up revenue of $59.6 million for the nine months ended March 31, 2020, compared to $44.7 million for the same period in fiscal 2019.
“The majority of this revenue increase over the comparative periods in 2019 related to growth in the kids and family division,” the company said in the results statement.
Thunderbird achieved record quarterly adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, of $6.9 million, up 45% from the fiscal third quarter in 2019.
The group also generated free cash flow of $4.5 million for the three months ended March 31, 2020, after retiring the balance of a $6 million term loan provided by the Royal Bank of Canada in 2018.
"With substantial increases in Thunderbird's year-over-year Q3 2020 revenue, as well as its record AEBITDA, Thunderbird demonstrates its resilience and high growth business model. Throughout (coronavirus) COVID-19, the company has continued to grow and deliver industry-leading results, with Q3 being Thunderbird's best quarter to date," Thunderbird Entertainment chairman Brian Paes-Braga said in the statement.
"All of this is further complemented with record free cash flow generation from the quarter of more than $4.5 million and a balance sheet that is not only in exceptional shape, but will also open up new opportunities for disciplined M&A," he added.
Thunderbird's team of 1,000 crew members across all divisions in Vancouver, Los Angeles, Ottawa and Toronto are set up to work remotely. Despite the coronavirus pandemic, the company's quick actions have allowed work to continue, and “all productions in development are moving forward.”
Thunderbird continues to “pitch, develop, produce, sell, deliver and service content” to its partners including Netflix, NBCUniversal, Nickelodeon, PBS, WGBH, Bell Media's Discovery, APTN, Corus Entertainment, the Weather Channel, and the CBC, among others, the company said.
"Thunderbird's unique business model allows the company to thrive," said Paes-Braga. "By remaining fully operational, Thunderbird has created new roles and hired additional team members to meet new demand from buyers looking to fill schedules with premium quality content. This is a testament to the leadership of the management team during this global crisis."
During the quarter, management decided to discontinue operations at its UK division. The related assets and liabilities have been presented as held for sale, and the net revenues and expenses are shown as a loss from discontinued operations.
Significantly, Thunderbird expanded its kids and family division with the opening of its Los Angeles animation studio. The LA studio's first project is already in production with 80 crew members working remotely on it.
The group’s hit show Molly of Denali was recently nominated for an esteemed Peabody Award, being one of only two nominees in the children and youth category.
Contact the author Uttara Choudhury at [email protected]
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