Total cash of $123.7 million with $77.6 million of Cash Available for Use1 and Debt-Free2 TORONTO, Aug. 13, 2024 /CNW/ - Boat Rocker Media Inc. ("Boat Rocker" or the "Company") (TSX:BRMI), an independent, integrated global entertainment company, today reported its financial results for the three months ended June 30, 2024 ("second quarter" or "Q2"). The Company's consolidated financial statements and accompanying notes and Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2024 and 2023 are available under the Company's profile on SEDAR+ (www.sedarplus.ca). All dollar amounts are expressed in Canadian currency, unless otherwise noted. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures (see "Non-IFRS Measures" below). Selected Financial Highlights3 On June 28, 2024, Boat Rocker announced the close of the sale of its 51% interest in Untitled Entertainment LLC ("Untitled") to TPG Group, LLC ("TPG"). The Company received gross cash proceeds of $52.1 million, net equity with a fair value of $11.3 million, and recognized an after-tax gain of $50.3 million from the sale. Untitled comprised the majority of Boat Rocker's Representation reporting segment, and is reported as a discontinued operation in accordance with IFRS 5, Non-current assets held for sale and discontinued operations ("IFRS 5"). Accordingly, Untitled's financial performance has been classified as discontinued operations. Q2 Adjusted EBITDA1 of $2.6 million versus $5.4 million in Q2 2023, a decrease of $2.9 million. Year-to-date Adjusted EBITDA1 increased by $2.1 million or 58.2% to $5.8 million compared to $3.7 million in the prior year comparative period. Net income of $41.9 million in Q2, which includes the gain on the sale of Untitled, versus a net loss of $5.8 million in Q2 2023, an increase of $47.7 million. Year-to-date net income of $39.4 million versus a loss of $15.3 million in the comparative year period, an increase of $54.7 million or 357.6% Q2 revenue of $47.5 million versus $120.9 million in Q2 2023, a decrease of 60.7%. Year-to-date revenue of $90.5 million decreased $100.6 million or 52.6% compared to $191.1 million in the prior year period. Debt-free2 with total cash at June 30, 2024 of $123.7 million, including $77.6 million of Cash Available for Use1. ______________________________ 1 This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three and six months ended June 30, 2024. 2 The Company currently has no corporate term debt, only interim production financing (including through two borrowing base facilities) in the ordinary course of operations. 3 Selected Financial Highlights include net income (loss) and Adjusted EBITDA* from both continuing and discontinued operations. Revenue excludes amounts from Untitled Entertainment, which are included in discontinued operations for all periods presented. Corporate Updates Agreement to Purchase Non-Controlling Interest in Insight Productions Pursuant to the Insight Productions Limited ("Insight Productions") unanimous shareholders agreement (the "USA"), Boat Rocker has agreed to purchase the remaining 30% ownership interest from the minority shareholder of Insight Productions (the "Minority Shareholder") for the fair market value of the shares (the "Transaction"). The purchase price of the Minority Shareholder's shares will be based on fair market value as mutually agreed by the parties or as determined by an independent valuator. Boat Rocker anticipates that the closing of the Transaction will be completed within 30 to 180 days following the determination of fair market value. Boat Rocker purchased a 70% controlling ownership stake in Insight in May 2018. Normal Course Issuer Bid The Board of Directors has approved Boat Rocker filing with the Toronto Stock Exchange ("TSX") a notice of intention to renew its Normal Course Issuer Bid to purchase a maximum of approximately two million subordinate voting shares, equal to 10% of its public float ("NCIB", the current NCIB will expire on August 31, 2024). The notice will be subject to regulatory approval by the TSX and there can be no assurance that it will be accepted.  The Company reviews its capital allocation strategy on an ongoing basis and given the trading price in the Company's stock and the volatility in the markets, management and the Board believe that the market price of the Company's subordinate voting shares does not reflect the intrinsic value of the Company and that the repurchase of stock would be in the best interests of the Company and its shareholders and would represent an attractive and appropriate use of available funds. Statement on Q2 2024 from Boat Rocker Media CEO John Young "Despite the media and entertainment industry continuing to face headwinds, our performance this quarter demonstrates solid deliveries from our Canadian unscripted business and a significant increase in cash reserves due largely to the recent sale of Untitled Entertainment. By using our capital strategically, including expanding our long-standing relationship with Insight Productions and deploying funds through our NCIB to repurchase our subordinate voting shares where possible, we remain committed to building shareholder value for the long-term. In parallel, as well as continuing to focus on targeted content investments, we will be looking to more proactively manage our cost base in the back half of the year." Selected Content Highlights Television Scripted Palm Royale, starring Kristen Wiig, Ricky Martin, with Laura Dern, Allison Janney, and extra special guest star Carol Burnett, received 11 Primetime Emmy nominations. Orphan Black: Echoes, starring Krysten Ritter and Keeley Hawes premiered on AMC, AMC+, and BBC America on June 23rd. Partnered with Don Cheadle's production company, This Radical Act, to develop a scripted television adaptation of Mindset, an acclaimed science fiction mystery from Vault Comics. Unscripted Season 10 of The Amazing Race Canada premiered on CTV, CTV.ca, and the CTV app on July 2nd. War Game began a theatrical run on August 2nd through Submarine Deluxe and will be available on Video on Demand in fall through Decal Releasing. Downey's Dream Cars, starring Robert Downey Jr., won a Daytime Emmy Award in the Lifestyle Program category. Season 3 of Dark Side of the '90s premiered July 16th on VICE TV. Taken Together: Who Killed Lyric and Elizabeth? premiered on Max on August 8th. Kids and Family No Time to Spy: A Loud House Movie premiered on Nickelodeon and Paramount+ on June 21st in the U.S. and on YTV on June 22nd in Canada. 2D animated series Exploding Kittens premiered July 12th on Netflix. Selected Financial Information4 (Amounts in thousands CAD) Three months ended June 30, 2024 2023 % change Revenue Television 36,444 102,232 (64) % Kids and Family 11,044 18,662 (41) % Total revenue 47,488 120,894 (61) % Net income (loss) 41,888 (5,819) 820 % Adjusted EBITDA* 2,570 5,438 (53) %   (Amounts in thousands CAD) Six months ended June 30, 2024 2023 % change Revenue Television 66,877 156,770 (57) % Kids and Family 23,669 34,333 (31) % Total revenue 90,546 191,103 (53) % Net income (loss) 39,402 (15,293) 358 % Adjusted EBITDA* 5,800 3,667 58 % *This is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" below and see "Non-IFRS Financial Measures" in the MD&A for the three and six months ended June 30, 2024.   ______________________________ 4 Selected Financial Information in the tables above include net income (loss) and Adjusted EBITDA* from both continuing and discontinued operations. Total revenue excludes amounts from Untitled Entertainment, which are included in discontinued operations for all periods presented. Financial Review5 Revenue for the three months ended June 30, 2024 was $47.5 million versus $120.9 million in Q2 2023, a decrease of $73.4 million or 60.7%. Revenue for the six months ended June 30, 2024 was $90.5 million compared to $191.1 million in the comparative period. The decrease in both the three and six months ended June 30, 2024 is attributable to lower revenue in each segment, with production revenue declines resulting from the impact of the 2023 strikes on the current periods being the biggest driver. In the prior year period, the Company delivered several episodes of two premium scripted dramas that had significantly higher average revenue per episode, with no comparable deliveries in the three and six months ended June 30, 2024. Adjusted EBITDA* for the three months ended June 30, 2024 was $2.6 million versus $5.4 million in Q2 2023, a decrease of $2.9 million. Adjusted EBITDA* for the six months ended June 30, 2024 was $5.8 million compared to $3.7 million in the prior year comparative period, an increase of $2.1 million or 58.2%. Net income for the three months ended June 30, 2024 was $41.9 million compared to a net loss of $5.8 million in Q2 2023, a positive variance of  $47.7 million. In the six months ended June 30, 2024, net income was $39.4 million compared to a loss of $15.3 million in the comparative year period, an increase of $54.7 million. Net income in the three months ended June 30, 2024 included a net loss of $10.6 million from continuing operations, offset by net income of $52.4 million from discontinued operations. In the six months ended June 30, 2024, net income included a net loss of $15.5 million from continuing operations, offset by net income of $54.9 million from discontinued operations. ...