Genius Brands International, Inc. (NASDAQ:GNUS) Q2 2018 Earnings Conference Call - Final Transcript

Aug 14, 2018 • 01:00 pm ET


Genius Brands International, Inc. (NASDAQ:GNUS) Q2 2018 Earnings Conference Call - Final Transcript


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Greetings, and welcome to Genius Brands International, Inc. Investment Community Update Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Matthew Abenante, SVP at Porter, LeVay & Rose.

Matthew Abenante

Thank you very much. And thank you, everyone for joining us today.

(Forward-Looking Cautionary Statements)

While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of today's call. These forward-looking statements are based upon current estimates and assumptions, and are subject to various risks and uncertainties, including without limitation, those set forth in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2017 under the headline Risk Factors and other filings with the Securities and Exchange Commission, not limited to Risk Factors relating to its patent business contained therein.

Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

And now, with that, I'll turn the floor over to Andy Heyward.

Andy Heyward

Okay. Thank you, Matthew. And welcome everybody. Good afternoon on the East Coast. Good morning on the West Coast. Today, we are going to be filing our 10-Q for first quarter 2018. Revenue was uneventful, since as expected there were no deliveries in this quarter and our revenues come in quarters where we deliver our programs. Generally, those are the fourth quarter.

We did elect the write-down of our series SpacePOP, which domestically has not met expectations and with our policy of keeping our balance sheet clean and not carrying any impaired assets. What is important to note, however, is the emergence of three strong drivers of revenues and earnings on Genius Brands, which we will see later in this year and in 2019. They are two immediate content brands as well as the Genius Brands distribution system.

The content brands are Rainbow Rangers, debuting on Nickelodeon on November 5, and Llama Llama already on Netflix and now greenlit by Netflix in production on its second season. Rainbow Rangers will be the first to have an impact led by Mattel toys. We currently have 22 different companies who have become licensees of the Rainbow Rangers brand. And they are manufacturing product across every major category including toys, publishing, apparel, bedding, sleepwear, accessories, youth electronics, paper (ph), stationary and school supplies, health and beauty, sporting goods and a live touring stage show.

Additionally, we are in active negotiations, which we intend to complete shortly with footwear, games, oral care, crafts and activity kits, bath products, sunglasses and vitamins. There are approximately 377 SKUs or different products coming into the marketplace on Rainbow Rangers and being manufactured as we speak. They