Boat Rocker Media (BRMI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was CAD 36.8 million, down 81% year-over-year due to lower scripted production deliveries and industry-wide slowdowns following labor disruptions.

• Adjusted EBITDA for Q3 2024 was a loss of CAD 4.6 million, compared to a positive CAD 21.3 million in Q3 2023, reflecting reduced output in the television segment.

• Net loss for Q3 2024 was CAD 18 million, or CAD 0.33 per share, including a non-cash goodwill impairment charge of CAD 8.2 million.

• Year-to-date net income reached CAD 21.4 million, driven by a CAD 50.3 million post-tax gain on the sale of Untitled Entertainment.

• The company remains debt-free with CAD 52.7 million in cash available for use at quarter-end and continues to focus on IP investment, co-productions, and cost reductions.

Financial highlights

• Q3 2024 revenue: CAD 36.8 million, down from CAD 196.4 million in Q3 2023, mainly due to the absence of premium scripted drama deliveries.

• Adjusted EBITDA loss of CAD 4.6 million in Q3 2024 versus a gain of CAD 21.3 million in Q3 2023.

• Net loss for Q3 2024 was CAD 18 million, or CAD 0.33 per share, including a non-cash goodwill impairment charge of CAD 8.2 million.

• Production, distribution, and service expenses dropped 82% year-over-year to CAD 29.5 million.

• General and administrative costs declined 28% to CAD 11.7 million in Q3 2024.

Outlook and guidance

• Full-year 2024 Adjusted EBITDA expected to be approximately CAD 10 million, but some key title deliveries may be delayed into 2025, impacting revenue recognition.

• Management is optimistic about a recovery in unscripted and kids & family segments in 2025 and 2026, while premium scripted drama remains challenged.

• Company plans to focus on distribution, rights management, and cost reductions to drive future growth.

• Intends to deploy capital for share repurchases under NCIB, with up to 2 million shares eligible through September 2025.