Thunderbird Entertainment Group (TBRD) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 ended with three consecutive profitable quarters, a 30% increase in Adjusted EBITDA to CAD 16.7 million, and a return to profitability, exceeding guidance despite industry headwinds.

• Strategic review concluded with a decision to pursue internal growth plans, remain independent, and explore uplisting to the TSX for increased visibility and liquidity.

• Robust content pipeline and strong industry relationships position the company for future value creation.

Financial highlights

• Q4 revenue was CAD 51.8 million, up 37% year-over-year; full-year revenue was CAD 165.3 million, down 1% year-over-year but ahead of guidance.

• Q4 net income was CAD 2.5 million, compared to a loss of CAD 2.6 million in the prior year; full-year net income reached CAD 2.4 million, reversing a net loss of CAD 5 million last year.

• Adjusted EBITDA for Q4 was CAD 7 million (vs. CAD 0.7 million last year); full-year Adjusted EBITDA margin increased to 10.1% from 7.7%.

• Free cash flow for fiscal 2024 was CAD 6.6 million, up from CAD 4.3 million year-over-year.

• Basic EPS for fiscal 2024 was CAD 0.048, compared to a loss of CAD 0.101 in the prior year.

Outlook and guidance

• Targeting over 20% revenue growth and more than 10% Adjusted EBITDA growth for fiscal 2025.

• Adjusted EBITDA margin expected to grow more slowly than revenue due to a higher mix of lower-margin service work.

• Anticipates margin pressure in 2025, with a potential return to higher-margin proprietary work as market conditions improve.

• Free cash flow expected to improve in fiscal 2025.

• Growth supported by a strong content pipeline, strategic investments, and a stabilizing market.