Cinedigm Corp

Good day ladies and gentlemen. Today we are hosting a conference call to discuss Cinedigm second quarter fiscal 2022 results. My name is Juan and I will be your conference operator. At this time all participants are listen only mode. We will have a question and answer session at the end of the call at which time all participants wishing to ask a question will be instructed to press star followed by the number one and identify themselves before asking a question. If anyone needs operator assistance, please press star zero on your telephone keypad. Please limit yourself to one or two questions so that others might have a chance to ask a question. You might re-enter the queue. Please note that this call is being recorded. Your host for today is Ms. Laura Kiernan, Head of Investor Relations for Cinedigm. Please go ahead.

Thank you, Juan. Good afternoon, everyone, and welcome to Senate IMF's Fiscal 2022 Second Quarter Results Conference Call. Before we begin, I would like to point out that certain statements made on today's call contain forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties, and assumptions. Potential risks and uncertainties that could cause the company's business and financial from these forward-looking statements are described in the company's periodic reports filed with the SEC from time to time. All the information discussed on this call is as of today, November 15th, and Synodyne undertakes no duty to update it. In addition, certain financial information presented on this call represent non-GAAP financial measures. With us today, we have Chris McGurk, Chairman and CEO, John Canning, CFO, Yolanda Macias, Chief Content Officer, Gary Lofredo, Chief Operating Officer, General Counsel and President, and Eric Opica, Chief Strategy Officer and President of Synodyne Networks, and Tony Hu, Chief Technology and Product Officer, all of whom will be available for questions following the prepared remarks. I will now turn the call over to Chris McGurk to begin.

Chris McGurk Thank you, Laura. Welcome, everyone, and thanks for joining us on the call today. We're once again very pleased to report record results for this quarter in the first half of our fiscal year. Our first half consolidated revenues were over $25 million, up 90% versus the prior year, and they were over $10 million in the quarter, up 41% in what is historically the seasonally slowest period of the year for our business. But most importantly, we reported record triple-digit revenue growth again for the third quarter in a row for our streaming channel business, which was up 139% in the quarter and 157% for the first half, led by our exploding ad-supported streaming business, which was up 208% in the quarter and 247% for the first half. John Canning, our new chief financial officer, will speak to these results more specifically, along with Eric Opica, in a few minutes. And speaking of our new CFO, we're very pleased to have John now leading our corporate finance function. John has very quickly onboarded after joining us two months ago and is already an integral part of the senior Synodyme team. John is joining Synodyme at the best possible time. when we're experiencing hyper growth in our streaming business and with our balance sheet in mint condition with zero debt and plenty of access to growth capital. We're confident that John's experience will enhance our financial efforts and support our exceptional management team as well as bolster our financial systems and processes. John came to us with a decade of financial experience working in leadership positions with companies like Firefly Systems, an ad tech startup in Silicon Valley, the Discovery Channel, Clear Channel Outdoor, and my own alma mater, the Walt Disney Company, after he spent the first half of his career working for consulting firms, including Deloitte and KPMG. As I've said before on these calls, I believe our senior team at Synanon is exceptional and one of the best executive groups in the business. That's one very key reason that the board and I are so confident about our growth strategy and streaming acquisition roll-up initiative. We are absolutely certain that this great management team can handle a company much, much bigger than we are sized today. And we are confident we are going to double and then triple the size of our business very quickly if we continue to execute well on both our organic growth and streaming acquisition efforts. We plan on continuing the strong business momentum as we further broaden our robust enthusiast streaming channel portfolio and expand platform distribution into the next two fiscal quarters, which are the historically strongest seasonal periods of our business. Eric will talk about those initiatives and the phenomenal growth in all of our key streaming metrics in just a minute. And as I said, with no debt, a strong cash position, and access to additional growth capital, we remain in an excellent position to continue on pace with successful accretive acquisitions to drive further growth in our streaming revenues. Just in the last few weeks, we relaunched two of the premium streaming channel services that we acquired over the prior eight months. Bandor, a leading independent cinema channel called the Netflix of Indie Film by the Wall Street Journal, and Screenbox, a leading horror streaming channel called The Perfect Horror Streaming Alternative to Netflix by TechTimes. And then we also recently announced the sixth acquisition of our streaming wallop initiative, Bloody Disgusting, the leading horror site with many multimedia programming and horror experience initiatives attached. With Bloody Disgusting and Screenbox, In the CineDime fold, combined with our decades of experience and demonstrated capabilities distributing films and TV programs in the lucrative horror arena, we plan on nothing less than becoming the number one streaming destination for the millions of horror fans worldwide who crave the genre. All told, through these accretive acquisitions, we have brought into CineDime more than 15,000 fresh films and TV episodes and five premium streaming channels in less than a year. Our unique competitive streaming position is the only independent media company with a vast content library, a successful six-year track record of launching and managing streaming channels, a state of the art proprietary streaming platform in Matchpoint, a huge distribution footprint, and a coveted public currency has led us to a very robust queue of additional streaming acquisition targets. And our acquisition philosophy is relatively simple. We target technology, content, and streaming channel assets that we believe 100% support and build our streaming future. We focus on accretive acquisitions that can immediately benefit from our infrastructure, technology, content, and distribution to ensure immediate synergies and growth. We will only buy assets at fair multiples to ensure they will be accretive with a focus on our own proprietary deal flow. Much like companies that have grown rapidly via M&A like Zynga and Cisco, we view our competencies in M&A and our platform approach to be a significant competitive advantage. So let me underscore that we are only making accretive acquisitions And we will finance those deals as appropriate to ensure that outcome. And we will smartly raise funds to finance those deals based on specific accretive content, technology, and streaming channel opportunities. We are not in the business of raising cash and stockpiling it on our balance sheet. We have turned down multiple opportunities to do that. We will only look at options to finance accretive deals in the future at the lowest possible cost of capital, combined with the highest potential return, to continue to create shareholder value. Now I will hand things over to John Canning, our CFO, who will speak to our results in the quarter and year-to-date periods. And then Eric LaPica will speak to our streaming results, the nominal streaming metrics growth and strategy. Following that, we'll take your questions And finally, I'll provide some closing remarks. John?