DHX Media Ltd. (NASDAQ:DHXM) Q4 2018 Earnings Conference Call - Final Transcript

Sep 25, 2018 • 08:00 am ET


DHX Media Ltd. (NASDAQ:DHXM) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the DHX Media Fiscal 2018 Fourth Quarter and Full Year Webcast. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I'd now like to turn the call over to Nancy Chan-Palmateer, Director, IR at DHX Media. You may begin your conference.

Nancy Chan-Palmateer

Thank you, operator, and thank you, everyone for joining us today. Speaking on the call today are Michael Donovan, our Executive Chairman and CEO; and Doug Lamb, our CFO; and Josh Scherba, our President. Also, with us and available during the question-and-answer session are Aaron Ames, our COO; and David Regan, our EVP of Strategy and Corporate Development.

(Forward-Looking Cautionary Statements)

Before the question-and-answer session that will follow, we ask that each analyst keep to one question with one follow-up, so that everyone has a chance to ask questions. If you would like to ask an additional question, please rejoin the queue.

Now turning to Slide 3, I will now hand the call over to our CEO and Executive Chairman, Michael Donovan.

Michael Donovan

Yes. Thank you, everyone for joining us on the call this morning. Today we announced, we have concluded our strategic review. Over the last year, the special committee of the Board of Directors reviewed a wide range of options to shareholder value. The review generated strong interest in our content and brands leading to formal discussions with multiple parties. Each of these opportunities was assessed diligently by the special committee of the Board and the management. These discussions resulted in the previously announced sale of the minority stake in Peanuts to Sony and also an agreement announced today for agency representation for Peanuts with Global Brands Group, Asia. I will discuss both of those in greater detail momentarily.

In addition to these agreements, the special committee and the management determined that the best way to deliver shareholder value going forward is by pursuing a refocused content strategy. One that targets the two largest growth opportunities for children's and family content. First, we're going to continue to invest in WildBrain, where we see tremendous potential for value creation and continued double-digit growth. We will prioritize investment in short form content to further drive WildBrain's growth and capitalize on the rising popularity of kids content on YouTube.

Secondarily, we are going to take a highly targeted approach to developing premium content for streaming services and key broadcasters, focusing on kid shows with the greatest consumer products potential. We intend to develop and expand global franchise brands, supported by this new premium content to drive consumer products royalties.

We are excited about both these priorities and our President, Josh Scherba will be speaking more about our content strategy. Also during the strategic review, we conducted a comprehensive internal evaluation of our teams, structures and processes. As a result and as previously announced, we changed our management team, and also consolidated a number of offices and made