WOW! Unlimited Media Announces Financial Results for the Third Quarter of 2020 TSX Venture Exchange:WOW

VANCOUVER, British Columbia, Nov. 26, 2020 (GLOBE NEWSWIRE) — WOW! Limitless Media Inc. (“WOW!” or the “Firm”) (TSX-V: WOW; OTCQX: WOWMF) introduced at the moment its monetary outcomes for the three and 9 months ended September 30, 2020.

KEY Q3 2020 HIGHLIGHTS

• Income for the quarter was $15.5 million
• Working EBITDA was $0.6 million
• The Firm reported optimistic working EBITDA for the 9 months ended Sep 30, 2020
• The Firm introduced and closed the primary Tranche of a non-brokered personal placement providing of unsecured convertible debentures, to interchange the present unsecured convertible debentures maturing in December 2020
• Firm’s revolving credit score facility elevated from $1.5 million to $5.0 million
• Restructuring at Frederator anticipated to offer potential EBITDA financial savings in extra of $2.0 million on an annualized foundation
• Netflix picked up the Firm’s acclaimed Bee & PuppyCat collection
• Mainframe’s digital World Studio Pipeline has elevated total manufacturing capability additional
• Manufacturing pipeline continues to be sturdy – $57.6 million as of September 30, 2020
• Barbie Princess Journey was delivered to Mattel and made obtainable for streaming on Netflix starting September 2020
• Octonauts and the Nice Barrier Reefwas launched on Netflix in October 2020

Working highlights

• The Firm’s operations continued with minimal disruption in the course of the international COVID-19 disaster
• Castlevania, season 4, produced by WOW!’s Frederator Studios, commenced deliveries of episodes in Q3 2020 with last deliveries anticipated by the tip of Q1 2021.
• WOW!’s Mainframe Studios’ continues manufacturing on a brand new animated collection titled Madagascar: A Little Wild for DreamWorks Animation, with deliveries of episodes on the brand new collection commencing shortly.
• Barbie Princess Journey, produced for our long-time consumer, Mattel, was made obtainable for streaming on Netflix starting September 1, 2020.
• In October 2020, Netflix and the Firm introduced a brand new animated collection Bee and PuppyCat: Lazy in House, set to premiere in Spring 2022. The announcement was acquired with pleasure on social media. Previous episodes of the present on YouTube additionally noticed elevated viewership and engagement.
• The Firm is in lively discussions with companions for brand spanking new animation initiatives for 2021 and 2022
• As introduced earlier, the Firm applied a restructuring and reorganization challenge at its Frederator operations in an effort to cut back the headcount at Frederator and to implement overhead and value saving initiatives, that are anticipated to offer potential EBITDA financial savings in extra of $2.0 million on an annualized foundation.
• In April 2020, Frederator Networks Inc. (“Frederator”), a subsidiary of the Firm, was awarded an unsecured mortgage of $0.9 million below the Paycheck Safety Program, which is assured by the US Small Enterprise Administration, pursuant to the Coronavirus Assist, Reduction and Financial Safety Act. The mortgage bears curiosity at 1% each year and, topic to the satisfaction of sure circumstances, the mortgage could also be forgiven throughout its 24-month time period. A mortgage forgiveness utility was filed subsequent to September 30, 2020. The Firm has no cause to consider that it received’t obtain full forgiveness of its mortgage for eligible prices incurred over its elected 24-week protection interval. As at November 26, 2020, the Firm has not acquired a response from the US Small Enterprise Affiliation in respect of its mortgage forgiveness utility.

Monetary spotlights

• Income for the quarter was $15.5 million
• Working EBITDA was $0.6 million
• Working EBITDA for the 9 months ended September 30, 2020 was $0.04 million
• As of September 30, 2020, WOW!’s animation manufacturing backlog was $57.6 million

OVERVIEW OF RESULTS

• Income for the three months ended September 30, 2020, was $15.5 million. This included $6.6 million generated by the Networks and Platforms phase and $8.9 million for the Animation Manufacturing phase for the three months ended September 30, bolstered by the continued manufacturing of Made by Maddie, Madagascar: A Little Wild, the Octonauts specials, Octonauts, seasons 5 by way of 8, and numerous initiatives for our long-standing buyer Mattel.
• Working EBITDA was $0.6 million, and the online loss was ($1.0) million, for the three months ended September 30, 2020.

Michael Hirsh, Chairman & CEO, commented: “Throughout Q3, the Firm continued on its progress trajectory and now we’re EBITDA optimistic for the yr so far. We proceed to have stable discussions with shoppers and companions for brand spanking new animation initiatives, the demand for which stays very encouraging. The restructuring and reorganization of Frederator is full, and we stay up for an thrilling 2021 throughout the group.”

CONSOLIDATED RESULTS

Income and Working EBITDA

Income for the three and 9 months ended September 30, 2020, decreased by $7.9 million and $28.8 million, respectively, in comparison with the identical durations in 2019.

For the three and 9 months ended September 30, 2020, revenues for the Networks and Platforms phase decreased by $6.8 million and $30.4 million, respectively. The lower in income for the Networks and Platforms phase for the three and 9 months ended September 30, 2020, was primarily the results of decreased views generated by Channel Frederator Community after the termination of the ADME settlement, as beforehand introduced in December 2019.

Income for the Animation Manufacturing phase for the three months ended September 30, 2020, decreased by $1.1 million. The upper income for the three months ended September 30, 2019, was the results of the supply of IP in the course of the interval. Income for the Animation Manufacturing phase for the 9 months ended September 30, 2020, elevated by $1.6 million, primarily pushed by the elevated variety of lively productions in comparison with the identical interval in 2019.

Working EBITDA for the three and 9 months ended September 30, 2020, decreased by $0.2 million and elevated by $1.6 million, respectively, in comparison with the identical durations in 2019. The upper working EBITDA for the 9 months ended September 30, 2020, was pushed by elevated income and margins within the Animation Manufacturing phase because of the rise within the variety of lively productions. The upper Working EBITDA for the three months ended September 30, 2019, was a results of the supply of IP in the course of the interval.

CONFERENCE CALL

The Firm will host a convention name at 9:00 a.m. Japanese Time on Friday, November 27, 2020, to debate the Firm’s monetary outcomes.

The convention name might be accessed dwell by dialling 1 (877) 825-9920 5 minutes previous to the scheduled begin time. The Convention ID is 6053118.

A digital recording of the decision shall be obtainable for one month (till midnight Japanese Time, December 27, 2020) by dialling 1 (855) 859-2056 or (404) 537-3406 and utilizing the Convention ID 6053118.

NON-IFRS FINANCIAL MEASURES

Along with outcomes reported in accordance with Worldwide Monetary Reporting Requirements (“IFRS”), this information launch consists of monetary phrases that the Firm makes use of to evaluate the monetary efficiency of its enterprise that aren’t measures acknowledged below IFRS. These non-IFRS monetary measures embrace working revenue or loss, working revenue or loss per share, working EBITDA, and backlog. The Firm believes these supplemental monetary measures mirror the Firm’s on-going enterprise in a way that enables for significant period-to-period comparisons and evaluation of traits in its enterprise. These non-IFRS measures have been constantly calculated in all durations offered.

The Firm defines working revenue or loss as internet revenue or loss excluding the impression of specified objects affecting comparability, together with, the place relevant, share of achieve or lack of fairness accounted investees, impairment of different intangible property and goodwill, different non-operational revenue and bills, deferred taxes and different positive factors or losses. Using the time period “non-operational revenue and bills” is outlined by the Firm as these that don’t impression working choices taken by the Firm’s administration and is predicated upon the way in which the Firm’s administration evaluates the efficiency of the Firm’s enterprise to be used within the Firm’s inner administration reviews. Working revenue or loss per share is calculated utilizing diluted weighted common shares excellent and doesn’t characterize precise revenue or loss per share attributable to shareholders. The Firm believes that the disclosure of working revenue or loss and working revenue or loss per share permits traders to guage the operational and monetary efficiency of the Firm’s ongoing enterprise utilizing the identical analysis measures that administration makes use of, and is due to this fact a helpful indicator of the Firm’s efficiency or anticipated efficiency of recurring operations.

The Firm defines working EBITDA as revenue or loss internet of amortization of funding in movie and tv programming, however earlier than curiosity, taxes, depreciation, and amortization, adjusted for sure objects affecting comparability as specified within the calculation of working revenue or loss. Working EBITDA is offered on a foundation in keeping with the Firm’s inner administration reviews. The Firm discloses working EBITDA to seize the profitability of its enterprise earlier than the impression of things not thought-about in administration’s analysis of working efficiency. Until in any other case acknowledged, the Firm consists of the amortization of funding in movie and tv programming within the calculation of working EBITDA.

The Firm defines backlog because the undiscounted worth of signed agreements for manufacturing providers and mental property in relation to licensing and distribution agreements for work that has not but been carried out, however for which the Firm expects to acknowledge income in future durations. Backlog excludes estimates of variable consideration for transactions involving gross sales or usage-based royalties in alternate for licences of mental property. The extent of eventual income acknowledged in future durations could also be materially greater or decrease than this quantity, relying upon elements which embrace, however aren’t restricted to the next: (i) contract modifications, (ii) fluctuations in overseas alternate charges for contracts not denominated in Canadian {dollars}, (iii) adjustments to manufacturing and supply schedules, or (iv) valuation points in reference to the collectability of charges.

Working revenue or loss, working revenue or loss per share, working EBITDA, and backlog do not need any standardized which means prescribed by IFRS and due to this fact is probably not akin to related measures offered by different firms. The Firm cautions readers to contemplate these non-IFRS monetary measures along with, and never instead for, measures calculated in accordance with IFRS.

For extra data concerning the Firm’s use of non-IFRS measures, together with the calculation of those measures and a reconciliation of working EBITDA and working (loss) revenue to internet (loss) revenue, please check with the “Reconciliations” part of the Firm’s administration’s dialogue and evaluation for the three and 9 months ended September 30, 2020, obtainable on the Firm’s web site at www.wowunlimited.co and on SEDAR at www.sedar.com.

Forward-looking Statements

This information launch accommodates sure forward-looking statements and forward-looking data (collectively referred to herein as “forward-looking statements”) inside the which means of relevant Canadian securities legal guidelines. All statements apart from statements of current or historic truth are forward-looking statements. Ahead-looking statements are sometimes, however not all the time, recognized by means of phrases resembling “anticipate”, “obtain”, “might”, “consider”, “plan”, “intend”, “goal”, “steady”, “ongoing”, “estimate”, “outlook”, “anticipate”, “could”, “will”, “challenge”, “ought to” or related phrases, together with negatives thereof, suggesting future outcomes.

Specifically, this information launch accommodates forward-looking statements referring to, amongst different issues: (i) normal financial circumstances; (ii) future revenues to be acquired by WOW!; (iii) WOW!’s future enterprise prospects and alternatives; (iv) WOW!’s potential to finish all or any of its proposed manufacturing work; (v) the impression of overhead and value financial savings initiatives on the Firm’s Frederator operations; (vi) Mainframe’s plans to adapt its earn a living from home mannequin; (vii) deliveries of Castlevania, season 4; (viii) deliveries of Mainframe Studios’ manufacturing on a brand new animated collection; and (ix) streaming on Netflix of Barbie Princess Journey.

Administration of the Firm believes the expectations mirrored in such forward-looking statements are affordable as of the date hereof however no assurance might be on condition that these expectations will show to be right and such forward-looking statements shouldn’t be unduly relied upon. Numerous materials elements and assumptions are sometimes utilized in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Particular materials elements and assumptions embrace, however aren’t restricted to: (i) the efficiency of WOW!’s enterprise, together with present enterprise and financial traits; (ii) capital expenditure packages and different expenditures by WOW! and its clients; (iii) dependence on key personnel and the power of WOW! to retain and rent certified personnel; (iv) the power of WOW! to market its content material efficiently to present and new clients; (v) the power of WOW! to retain clients; (vi) the power of WOW! to acquire well timed financing on acceptable phrases; (vii) a secure aggressive surroundings; (viii) WOW!’s potential to anticipate and adapt to adjustments in expertise and product consumption patterns; (ix) a secure business regulatory surroundings; (x) ongoing relationships with WOW!’s distributors and enterprise companions; and (xi) aggressive forces inside the leisure business. These materials elements and assumptions are based mostly on data presently obtainable to the Firm, together with information from publicly obtainable governmental sources in addition to from market analysis and business evaluation and on assumptions based mostly on information and information of this business which the Company believes to be affordable. Nevertheless, though usually indicative of relative market positions, market shares and efficiency traits, such information is inherently imprecise.

Ahead-looking statements aren’t a assure of future efficiency and are topic to and contain various identified and unknown dangers and uncertainties, a lot of that are past the management of the Firm, which can trigger the Firm’s precise efficiency and outcomes to vary materially from any projections of future efficiency or outcomes expressed or implied by such forward-looking statements. These dangers and uncertainties embrace, however aren’t restricted to, the dangers recognized within the Firm’s Administration’s Dialogue and Evaluation for the yr ended December 31, 2019, which has been filed with the Canadian Securities Directors and is on the market on www.sedar.com. Any forward-looking statements are made as of the date hereof and, besides as required by legislation, the Firm assumes no obligation to publicly replace or revise such statements to mirror new data, subsequent or in any other case.

Neither TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

About WOW!
WOW! is creating a number one animation-focused leisure firm by producing top-end content material and constructing manufacturers and audiences on partaking media platforms. The Firm produces animation in its two established studios: Mainframe Studios in Vancouver and Frederator Studios within the USA. The Firm’s media choices embrace Channel Frederator Community on YouTube, in addition to WOW! branded programming on Crave, Canada’s premier streaming leisure platform, owned by Bell Media. The widespread voting shares of the Firm and variable voting shares of the Firm are listed on the TSX Enterprise Trade and the OTCQX Finest Market.

Neither the TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this launch.

Additional data obtainable at:
Web site: www.wowunlimited.co
Contact: Invoice Mitoulas, Investor Relations
Tel: (416) 479-9547
E-mail: billm@wowunlimited.co