Thunderbird Entertainment Group Inc.

Thank you for joining. We are here to provide a corporate update and report on Thunderbird Entertainment Group's third quarter fiscal 2022 results, which ended March 31st, 2022. Speaking on today's call are Ms. Jennifer Twyner-McCarran, Thunderbird CEO, and Ms. Barb Harwood, Thunderbird CFO. Ms. Twyner-McCarran will provide a strategic overview of Thunderbird Entertainment Group. and Ms. Howard will review the company's Q3 2022 financials. Following the corporate update and review, corporate financial review, the call will open for a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. Alternatively, if you have questions, you can call plus one six zero four six eight double three triple five. or email investors at Thunderbird TV and the company will follow up directly after the call. At this time, 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 objective goals or future plans and the business and operations 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 and environmental and other judicial, regulatory, political and competitive developments. Those additional risks set out in the company's filing statement and other public documents filed on CEDAR at www.cedar.com and other matters discussed in the quarterly 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 events will occur in the disclosed timeframes or at all. Except where required by law and the company disclaims any intentions or obligations to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For your convenience, the press release, MD&A, and unaudited financial statements for the Q3 2022 of Thunderbird Entertainment Group, which ended the 31st March 2022, are filed on SEDAR and available online under the investor section of our website. We do not expect to update forward-looking statements continually as conditions change. The conference call is being webcasted live and the archive will be available on the company's website at www.thunderbird.tv. Following today's call, please note that the Thunderbirds reports in Canadian dollars unless stated otherwise. Ms. Twyna McCarron will now provide the corporate update.

Thank you so much. My name is Jen Twyna McCarron and I'm the CEO of Thunderbird Entertainment Group. On behalf of the company, I'd like to welcome you to today's call to discuss our Q3 2022 results, which ended March 31st, 2022. Thunderbird CFO Barb Harwood is with me today, and we appreciate you joining us and following Thunderbird's story. I will provide the corporate and divisional updates, and Barb will share the financials. Apologies for my voice. I have a good old-fashioned cold. which after two years of wearing masks, what the heck are those? Anyway, I apologize if my voice is cracking. Once Barb and I are finished, we will be happy to answer any questions you may have. I'd like to begin our call by addressing some of the conversations taking place around recession fears, specific to the entertainment industry. We are seeing more speculation in the industry following Netflix's announcement about its subscriber growth and streaming outlets like CNN Plus shutting down. While this was somewhat offset with Disney and Warner Brothers Discovery reporting revenue gains and news around Paramount Plus and Showtime's combined subscribers topping 62 million, there appears to be a lingering undercurrent of uncertainty. We have entered a new phase of the streaming revolution. And for our company, Thunderbird, this is actually really good news. Major streamers are adjusting their offerings to attract and retain subscribers by creating tiered packages and opening the doors for more advertising to support to stay competitive and to win in a fierce market. What investors in Thunderbird should take great confidence in is that while the streaming wars are entering a new era, Thunderbird is the beneficiary of these events. Our high-quality, family-oriented programming and co-viewing that we provide with factual and animated content will be in greater demand as the large players cut back internally and turn to Thunderbird for A-plus high-quality, diverse, and inclusive content. This is a case of quality over quantity. The fact remains that major streamers with deep pockets continue to execute on their growth strategies, all of which include premium, diverse, and inclusive content Buyers may be tightening your belt, so to speak, but they are not going away. All streamers need to constantly refresh their sites to include subscribers. More than ever, it's becoming again a quality versus quantity discussion, and quality will always win. This is what we specialize in, keeping quality as our North Star. We have ongoing relationships in place with all of the major streamers, and we are renowned for premium, award-winning content. There's no doubt that the landscape will keep evolving to stay competitive. And throughout this, we will continue to be well positioned to grow within it. At the end of the day, for platforms to gain and maintain customers, they have to spend on premium content. And we are seeing that. Take our foothold in animation, for example. Currently, we're working on major brands such as Molly of Denali for GBH and PBS, Pinecone and Pony for DreamWorks and Apple. Pocomelon for Moonbug and Netflix, Young Love for Sony and HBO Max, Spider-Man for Disney Junior, just to list a few. The pandemic elevated animation and its importance to new levels, and adult animation is also seeing a huge boost. We also have a presence in this space, including Teenage Euthanasia, which we're producing for Adult Swim. When physical production was shut down, animators worked from home, keeping the industry afloat. Animation represents some of the most carefully and cinematically directed films of the year. In 21, Luca, Raya and the Last Dragon, and The Mitchells and the Machines were three of the 10 most streamed movies of the year, according to the U.S. streaming platform tracked by Nielsen. And in total, seven of 10 were animated. Animation is for everyone, and the studios know it. That's why we're seeing unprecedented investment in animation production. Add to this, after relying heavily on unscripted programming during the pandemic and witnessing the genre soar, broadcasters and streamers continue to order and provide a steady flow of factual programming in spite of the return to normal for scripted production. With factual programming having lower production costs and very high approval ratings, factual series will remain a key point of all buyer strategies. as highlighted in this year's May TV Upfront. This is further reinforced with National Geographic's recent announcement around the launch of National Geographic Premium with Disney+, featuring original shows, documentaries, and more. The ability to grow in an ever-changing landscape is the result of mindful and strategic planning initiatives and infrastructures put in place under the overarching long-term goal of Thunderbird becoming the next major global studio. At Thunderbird, we have a balanced approach and are playing the long game, which is why many of you have heard myself and our Thunderbird team members refer to fiscal 22 as our build year. There's an ebb and flow to our business and within our industry in general, based on when productions deliver. We have visibility to this and have carefully navigated the company's course while maximizing the value of our storytelling skills for the massive opportunity that Fiscal 22 has involved the company leaning into our strengths and greatest growth opportunities, including diversifying our portfolio, securing compelling IP, a focus on our global distribution and consumer products division, and partnering with top industry talents like HBO Max, Netflix, Disney, among others, to create global hits. While we can't pull back the curtain completely on everything we're working on as much as we'd like to, we can share that we are building an incredible portfolio with recognizable brands and significant brand building capabilities to drive profitable growth and long-term shareholder returns. And we are doing this methodically with zero corporate debt so we can move nimbly and capitalize on opportunities that other content creators in this similar position simply cannot. On top of this, we are continuing to explore M&A options in Europe, including ways to partner with streamers as they look to increase subscriptions internationally. This is just the beginning, and as we look ahead, we can assure you we are excited. Our teams continue to grow. We're now over 1,400 team members across North America, and our flexible hybrid work structure continues to contribute to our ongoing growth and ability to strategically scale up as needed based on demand. We have worked from home for over two years, and many people continue to do so. We haven't missed a single delivery, and this is a testament to our talented, hardworking team and also a major contributor to the strong, ongoing relationships we have with industry's top players. The team's exceptional reputation precedes us, and we look forward to continuing to create and deliver award-winning hits worldwide. With this, I'll turn it over to Bart to go over the numbers, and then I'll return to provide a high-level corporate update. Thanks so much.

Thanks, Jen. Good morning, everyone. Now, here are the results for the three and nine months ending March 31st, 2022. Consolidated revenues decreased from $37.7 million to $36.9 million, or 2%, and increased from $85.4 million to $104.9 million, or 23%, for the three and nine months ended March 31, 2022, compared to the comparative periods in the prior year. A slight decrease in revenue in the current quarter is due to the timing of deliveries of our IP projects, the majority of which are expected to be caught up by year-end. The decrease was almost completely offset by the growth in production service projects. Production services revenue increased by 66% to $31.2 million and 64% to $87.4 million over the comparative three- and six-month periods due to an increase in the number and size of contracts. This revenue consists primarily of animation production services, which experienced continued growth. The production services revenue reduces the volatility of results over quarters as compared to the IP recognition, the production service revenue is recognized as the work is completed rather than when the work is delivered and the term starts by the broadcaster. Licensing and distribution revenue, which represents our own IP projects, decreased to $47 million and $17.5 million from $18.3 million and $32.2 million for the three and nine months ended March 31, 2022. In the current quarter, revenue was recognized from 13 episodes of the factual series Heavy Rescue 401, Season 6, and one episode of a documentary, Teenager in a Lost Maya City. Distribution revenue was also recognized in the current quarter due to the sales to FilmRise, a New York-based streaming service, for a scripted series, Kim's Convenience, seasons one through five. In comparison, in the comparative quarter, revenue was recognized from three episodes of an animated series, Last Kids on Earth, 13 episodes of Kim's Convenience, season five, and 40 episodes of three factual series, Heavy Rescue, 401, season five, Mud Mountain Haulers, season one, and Save My Reno, season four. Adjusted EBITDA decreased by 1 million, or 14%, to 6.4 million and increased 0.4 million or 2% to 17.7 million for the three and nine months, compared to 7.4 million and 17.3 million for the comparative periods at March 31st, 2021. Gross margin on revenue in the current quarter was consistent year over year, partially offset by an increase in salaries to facilitate our continued growth. And finally, free cash flow decreased by 7 million today to $5.2 million in the current quarter, primarily due to an increase in investment in content as the company ramps up production volume and increased by $7.2 million to $14.7 million for the nine months of March due to the timing of the receipt and repayment of interim production financing net of the ramp-up of production volume, compared to $1.8 million and $7.5 million for the comparative periods in the prior year. And now back to you, Jim.