Thunderbird Entertainment Group Inc.

Thank you for joining Thunderbird Entertainment Group's fiscal 2023 year-end results call. Frank Alfano from Bristol Capital will read the forward-looking statement disclaimer.

Thank you all for joining us. We are here to provide a corporate update and report on Thunderbird Entertainment Group's results for the financial year ended June 30th, 2023. On today's call are Ms. Jennifer Twyner McCarron, the CEO and Chair of Thunderbird Board, as well as Ms. Barb Harwood, Thunderbird CFO. Ms. Twyner McCarron will provide a strategic overview of Thunderbird Entertainment Group, and Ms. Harwood will review the company's financial results for the 2023 year end. Following the corporate update and financial review, the call will open for a Q&A session. If you would like to ask a question during this time, simply press star, then the number then pardon me then the number one on your telephone keypad alternatively if you have any questions you could call 1604 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 constitute forward-looking statements or 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 evaluating unsolicited inbound expressions of interest or any offers for the sale of Thunderbird that are received by the company, the potential long-term value of the company, strategic initiatives materializing, and engagement with such opportunities, the actor strike, timing for the debut of new series and the rollout of toy lines, and estimates related to global toys, hobby and do-it-yourself e-commerce, details related to Thunderbird's first owned IP adult animation series, owned IP building long-term value, spending and growth rate projections of Netflix and Disney, future AVOD revenues, the expectation that Thunderbird will be the beneficiary of the renewed uptake in content, the proposed stock buyback program, timing for issuing a sustainability report, Debuting series to buyers at Amip Junior and Amipcom Keynes, actively pitching titles to various platforms, expectations regarding global fast revenues, and the company becoming the next major global studio. In addition, statements made today related to the financial outlook or future-oriented financial information have been approved by management of Thunderbird, Such financial outlook or future-oriented financial information is provided for the purpose of providing information about management's current expectations and plans relating to the future and may not be appropriate for other purposes. Forward-looking statements are based on estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which are set out in the company's most recent MD&A and other public documents filed under the company's profile on CDAR. 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, 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. This conference call 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. Twyner McCarron will now provide the corporate update.

Thank you, Frank. My name is Jennifer Twyner McCarron, and I'm the CEO and Chair of Thunderbird Entertainment Group. On behalf of the company, I'd like to thank you for joining today's call to discuss our year-end 2023 results, which ended June 30th, 2023. Thunderbird CFO Barb Harwood is with me, and we appreciate you taking the time to hear the company's earnings updates. Once Barb and I are finished, we will be happy to answer any and all questions. Today, I am going to start by providing some clarity around the company's Strategic Advisory Committee updates. Since March, the Advisory Committee has been assessing Thunderbird's capital allocation strategy and all opportunities to maximize shareholder value for ultimate recommendation to the board. This has involved working along ACF, our investment bank, to evaluate any unsolicited inbound expressions of interest that may be received by the company from time to time and handle the potential sale of Thunderbird in the event the company receives an offer that meets our standard for shareholder value creation. Our most recent analysis with the bank has indicated a considerable difference between our internal assessment of Thunderbird's valuation based on our line of sight on production services booking, promising owned IP pipeline, and expectations for margin expansion versus the valuations that prospective buyers might be willing to offer. given the current negative macro environment in the media industry. We believe that this discrepancy does not reflect the true potential and long-term value of Thunderbird. As such, we believe it is in the best interest of Thunderbird and our shareholders to wait to go to market until our strategic initiatives begin to materialize to demonstrate our true worth. While we continue to evaluate all unsolicited inbound expressions of interest. This approach will ensure that when we do begin proactive engagement, we will come from a position of strength to ensure maximum value for our shareholders. In the interim, to showcase our unwavering belief in our company's value and future prospects, we are announcing that the board yesterday approved the company to pursue a normal course issuer bid through the facilities of the TSX Venture Exchange, which is subject to prior acceptance by the TSX-V. This initiative underscores our commitment to our shareholders and our confidence in Thunderbird's direction. We will be doing this as expeditiously as possible. Once we complete and submit our application to the TSX Venture and designate a broker, we will be able to share more details with you such as the number of shares sought and what percentage of our public float are issued and outstanding shares that represent. I can say that TSX-C companies may apply to repurchase a maximum of 10% of their public float, and this is what we are seeking to do, and also commonplace with other companies we've looked at. Details regarding this will be provided in a subsequent news release as they become available. We appreciate the continued support of our shareholders, employees, and partners, and we remain dedicated to our mission as well as to delivering outstanding value to all stakeholders. As expected, our 2023 financials do not reflect what we had hoped at the start of the financial year due to headwinds Thunderbird faced and several productions living into fiscal 24 and 25. That being said, Thunderbird is very much a strong company with valuable assets. We have a very healthy balance sheet, solid financial projections, which we will go into over in more detail, a robust pipeline with an intentional mix of owned IP and service production, and internal capabilities for consumer products and global distribution. We have strong footholds in animation and unscripted content. We have several projects in development with various networks. And we have a newly launched scripted team based in LA that is now ready to hit the ground running as the actor's strike is officially wrapping up behind us. One of the productions we are excited to move forward with, just as an example, is New York Times bestselling novel, Mad Honey, co-written by renowned authors Jodi Picoult and Jennifer Finney Boylan for a premium series adaptation. Now let's take a deeper dive into our company's strengths to better understand how they put Thunderbird in an attractive position within the industry. We are focused on owned IP and the ancillary revenue streams that go alongside it. Owned IP is crucial to building the long-term value of our business, as it will increase our multiples in the marketplace. There is a lot of buzz around our company right now because of the team's amazing talent and its new and legacy IP. This week, we shared that renowned toy maker Jazzwares will act as a global master toy licensee for Mermacorno Starfall. This is the original animated series produced by Atomic Cartoons in partnership with Tokidoki, with the licensing program being co-managed by Thunderbird Brands and Tokidoki. This multi-category line will include, but is not limited to, figures, dolls, play sets, squish malice, I'm sure a lot of you have those in your house. Halloween costumes and pet costumes, all created for distribution channels, including mass market, e-commerce, and direct-to-consumer platforms. The Starfall line is set to launch with limited assortment of projects in spring 2025, with a larger rollout in the fall. Statistics Digital Market Outlook estimates that global toys, hobby, and DIY e-commerce are projected to reach more than $1 trillion by 2026. This underscores the value of our partnership with Jazwares and how it is a great win for Thunderbird as we leverage our own IP through all cross-media exploitation. For those of you who aren't familiar with Jazwares, it was named Master Toy Licensee for Sanrio Global Sensation, Hello Kitty, and Friends in North America. The Toy Foundation also recently announced Squishmallows from Jazwares as the winner of both the Toy of the Year and People's Choice Awards as part of the 23rd edition of the Toy of the Year Awards and Celebrations. We also recently announced that Rocket Saves the Day, an original TV special from Atomic, will debut on PBS Kids in the U.S. on December 26. This one-hour special is based on Todd Hill's New York Times best-selling Rocket book series. It's both entertaining and educational, with exceptional animation. Thunderbird will manage and control global media rights to this owned IP production. We are so proud of Rocket Saves the Day and its curriculum to help launch new readers. And we look forward to bringing families together for this captivating and, I think, adorable content. As we expand our portfolio of IP projects, we're looking forward to sharing more details about some of the exciting announcements we have on the rise. And these announcements span multiple genres. One of these represents our first owned IP adult animation series. We've recently sold this series and are now in full production, with Thunderbird handling global distribution as well. More details will come as soon as we're able to share. Critical to our growth is also the success we've had with the legacy IP like Highway Through Hell. With the 12th season having premiered in August, Highway Through Hell represents one of the longest running unscripted series in Canada. This is a testament to the hard work of the many individuals involved in making the show happen. And it's also an example of what it takes to create and foster a brand that makes an impact. We are proud to have Highway Through Hell as a key component of our Thunderbird Brands offering, with distribution in more than 170 territories and counting. We're also focused on service productions. The relationships these productions forge with big companies such as Disney, Netflix, Apple TV, Max, and Adult Swim, and the experiences they offer on big brands such as Curious George for Peacock, 101 Dalmatians for Disney, and Trolls for DreamWorks are second to none. Our production service work is a key element of our growth strategy. Service work is margin-driven and provides the opportunity for steady cash flow. Our service work includes several of what we call high-end building block shows, such as Marvel's Spidey and His Amazing Friends for Disney Junior, Lego Star Wars for Disney Plus, and My Little Pony for E1 and Hasbro. These multi-season shows provide ongoing work for the team, driving us forward at a time where the industry itself is shifting. Our long-running relationships with companies like Lego are resulting in multiple years of steady work ahead. And this work continues to be recognized broadly within the industry. Through Atomic, we've produced award-winning productions such as Molly of Denali, Last Kids on Earth, and Beat Bugs. And through GBM, recognitions include multiple awards for series such as Dead Man's Curse, Highway Through Hell, and Reginald the Vampire. In fiscal 2023, additional company recognitions included Thunderbird ranking in the top 10 of all independent production companies in Canada on Playback 2023 Indie List, Atomic being included on the annual Kids Screen Hot 50 list of top production countries around the world, Molly of Denali receiving a 2022 BC Reconciliation Award, a 2022 Kids Screen Award for Best Web and App Series branded, and GPM was named to RealScreen's Global 200 list for the 11th consecutive year. Excitingly, in September, the Globe and Mail also included Thunderbird as one of its top-growing companies with a verified three-year growth rate of 158%. It's no secret that the entertainment and media industry is at an important inflection point, and many companies have, and are reconfiguring their businesses, re-leveling spending, and adjusting growth rate projections. For example, Netflix expects to spend $17 billion in 2024, which is steady with 2023 levels. And after implementing several cost-cutting measures in 2023, Disney Plus is expected to increase its annual investment in original content by 82.8% between 2022 and 2027. Digital TV research noted that AVOD revenues for TV series and movies will reach 69 billion by 2029, which is up 30 billion from 39 billion in 23. However, while these figures demonstrate growth, it should be noted that they are lower than originally forecasted. The takeaways from these statistics are that growth is measured, and we are no longer in a period where streamers' content demand is insatiable. However, while growth is more measured, there's still a place for premium content. People always need entertainment and a healthy escape. This is especially true in an overall market downturn when people look to consume more content at home. Again, Thunderbird remains incredibly well positioned due to the excellent reputation of the team, the company, and the quality of work that we deliver. Importantly, we have also taken measures to right-size our business. and will continue to make decisions that ensure we remain both nimble and efficient while providing the highest quality productions to our clients. We have a close eye on expenditures and will ensure we are spending within our dollars in the areas of the business that need it most. In June, I had noted that we were the most booked we'd ever been for this time of year. While that is held true, over the summer with the strikes, despite them not affecting animation or unscripted, there was an overall slowdown in content orders. And we are now right-sizing the business to the work and making prudent decisions at every level of the business to operate as efficiently as possible. Finally, now that the strikes are ending and the industry is stabilizing, as a very well-regarded, high-quality studio, Thunderbird will be the beneficiaries of a renewed uptick in content. With this, I'll pass things over to Barb to go over the numbers. I will then share specific updates from the team before we move to our Q&A.