Thunderbird Entertainment Group Inc.

Thank you for joining us. We're here to provide a corporate update and report on Thunderbird Entertainment Group's second quarter 2021 fiscal results, which ended December 31st, 2020. Speaking on today's call are Ms. Jennifer Twiner-McCarran, Thunderbird CEO, and Ms. Barb Harwood, Thunderbird CFO. Ms. Twiner-McCarran will provide a strategic overview of Thunderbird Entertainment Group and Ms. Harwood will review the company's Q2 financials. Following the corporate update and financial review, the call will open up for a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. Alternatively, if you have any questions, you can call plus 1-604-683-3555 or email investors at thunderbird.tv, and the company will follow up directly after the call. At this time, all lines have been placed on mute to prevent any background noise. I'd like to remind everyone that certain statements made on today's call will be forward-looking and constitute forward-looking statements or forward-looking information under applicable securities laws. Forward-looking statements and information discussed on this conference call include but are not limited to statements with respect to the company's objectives, goals or future plans, and the business and operation of the company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, general business, economic and social uncertainties, litigation, legislative, environmental, and other judicial, regulatory, political, and competitive developments. Those additional risks set out in the company's filing statements and other public documents filed on SIDAR at www.sidar.com and other matters discussed in the company's year-end news release. Although the company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable, undue reliance should not be placed on these statements. which only apply as of the date of this presentation, and no assurance can be given that such statements will occur in the disclosed timeframes or at all. Except when required by law, the company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. For your convenience, the press release, the MD&A, and unaudited financial statements for the second quarter of 2021 of Thunderbird Entertainment Group which ended December 31st, 2020, are filed on SADAR and are available online under the investor section of our website. We do not expect to update forward-looking statements continually as conditions change. This conference is being webcast live and the archive will be available on the company's website at www.thunderbird.tv following today's call. Please note that Thunderbird reports in Canadian dollars unless otherwise stated. Ms. Twyna McCarron will now provide the corporate update.

Good morning, everyone. I'm Jennifer Twyna McCarron, the president and CEO of Thunderbird Entertainment Group. Thank you all so much for joining Barb and I today as we provide an overview of Thunderbird's corporate results in the second quarter of fiscal 2021, which ended on December 31st, 2020. Afterwards, we're looking forward to your questions. We are so proud of the resiliency and talent of our award-winning team. The Q2 results underscore the incredible work happening at Thunderbird, and we can't wait to walk you through it all. Q2 was a fantastic quarter for Thunderbird, and the company continued to deepen relationships with our partners, such as Netflix, Disney, HBO Max, Bell, and CBC to list a few. by meeting all delivery targets and reliably delivering premium quality content. Our hard work, reputation for trust and incredible artistry is paying off in extremely important ways as Thunderbird is now winning major high profile projects over other studios, many of them much larger than we are. On top of that, we have launched a global distribution and consumer products division, which officially launched in January 2021. This division is being led by industry veteran Richard Goldsmith. We are beyond thrilled to have Richard as part of our new leadership team and to work with Richard as he lifts our world-class brand to new heights, opening up ancillary revenue streams through merchandise, video games, toys, bed sheets, you name it. The new division and our library, in addition to the premium content that we develop and produce, creates a content trifecta. Thunderbird can produce content, we can license and distribute its content, and now we can leverage our own content through all forms of cross-media exploitation. We now have all the tools and the talent that will enable us to become the next major global studio. I will now pass things over to Barb to go over our Q2 numbers, and then I'll follow up with more corporate updates. Thanks so much, and over to you, Barb.

Thanks, Jen. Hi, everybody, and thanks for joining us today. During Q2, we continued the growth pattern that has occurred over the past 12 months as reflected in our increased revenue and adjusted EBITDA and in our positive free cash flow. Turning now to our Q2 results. Revenue for the three and six months of fiscal 2021 was $28 million and $47.7 million, as compared to $14.1 million and $30.6 million, increases of 98% and 56%, respectively. Our licensing and distribution revenues increased by 272%, or $6.4 million in the quarter, from $2.4 million to $8.8 million. Just a reminder that the licensing and distribution revenues are from our own IP-owned titles. For the first six months of the year, licensing revenue increased by 63%, from 8.5 mil to 13.8 mil. The difference relates to the timing of delivery of two of our IP shows, Last Kids on Earth and Highway Through Hell Season 9. We delivered 10 episodes of Last Kids on Earth and six episodes of Highway Through Hell in Q2 of 2021. as compared to seven episodes of Highway Through Hell in Q2 2020. During the first six months of the year, we delivered a total of 10 episodes of Last Kids on Earth as compared to three episodes in the first six months of our fiscal 2020 fiscal. Of note, in the first six months of the year, $34 million, or 70% of the total revenue, $47.7 million, relates to production services work and is reflective of almost a full year of the LA studio and our continued growth in this area of the company. In production service, we had 19 active service productions in Q2 of 2021, as compared to 17 active service productions in Q2 of 2020, with a general increase in the size of the service projects over the last period. Adjusted EBITDA was 5.2 million and 10 million in the three and six months of fiscal 2021, as compared to 2 million and $5.7 million in the previous period, increases of 160% and 76%. Again, this increase was largely due to growth in animation production services, as well as a smaller but significant increase in the number of IP projects recognized in the quarter. Positive free cash flow was $4.4 million and $5.7 million for the three and six months, as compared to negative 3.8 million and 0.2 million for the comparative period. And finally, we continue to have a strong balance sheet with zero corporate debt. Back to you, Jen.