Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) Q1 2020 Earnings Conference Call - Final Transcript

May 14, 2020 • 04:30 pm ET


Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:CSSE) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Chicken Soup for the Soul Entertainment First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker, Mr. Jeff Majtyka. Mr. Majtyka, you may begin.

Jeff Majtyka

Thank you, and welcome.

With me on the call today are William J. Rouhana, Chairman and Chief Executive Officer; and Chris Mitchell, Chief Financial Officer, to review the results of the 2020 first quarter as well as provide a business update. Following this discussion, there will be a moderated Q&A session open to the participants on the call.

During this call, management will make forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding expectations, intentions and strategies regarding the future. Included in these risks are forward-looking statements based on management's current expectations and assumptions and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from projected results. Given these uncertainties, listeners are cautioned not to place undue reliance on any forward-looking statements contained in this conference call. Please refer to the cautionary text regarding forward-looking statements contained in the earnings release, which also applies to the content of this call. Additional risk disclosures can be found in the company's filings with the Securities and Exchange Commission.

As a reminder, on May 14, 2019, Chicken Soup for the Soul Entertainment created a subsidiary with Sony Pictures Television launching Crackle Plus. On today's call, management will make comments on certain GAAP-based and non-GAAP pro forma financial information of the combined company that includes Crackle's financial results for the relevant periods prior to the closing date as if the acquisition occurred on January 1, 2018.

The non-GAAP financial measure the company uses is adjusted EBITDA. Management believes that adjusted EBITDA provides useful information and that it excludes amounts that are not indicative of the company's core operating results and ongoing operations and provides a more consistent basis for comparison between periods. The earnings release contains a reconciliation of adjusted EBITDA to net income or loss, which is the most directly comparable GAAP measure. For further information regarding the company's historical financial performance, we refer you to our filings with the SEC, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, which was filed today.

I would now like to turn the call over to William Rouhana, Chairman and CEO. Bill, please go ahead.

William Rouhana

Thank you, Jeff, and good afternoon, everybody. Thank you all for joining us today.

We're pleased to share that during Q1 2020, we were able to maintain the momentum we talked about when we reported our Q4 '19 results. Of course, the early part of the second quarter has posed challenges as expected. But notwithstanding near-term uncertainty,