Thunderbird Entertainment Group Inc.

Thank you for joining Thunderbird Entertainment Group's Q3 2024 earnings call. Glenn Axelrod from Bristol Capital will read the forward-looking statement disclaimer.

Thank you for joining us. We're here to provide a corporate update and report on Thunderbird Entertainment Group's Q3 2024 results for the three and nine months and then March 31st, 2024. Speaking on today's call are Ms. Jennifer Twyner-McCarran, CEO and Chair of Thunderbird Board, Mr. Simon Bodymore, Thunderbird CFO. Ms. McCarran will provide a strategic overview of Thunderbird Entertainment Group and Mr. Bodymore will review the company's financial Q3 2024. Following the corporate update and 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 in your telephone keypad. Alternatively, if you have any questions, you can call one 604-683-3555, extension 2, 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 the 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, adjusted EBITDA growth and Q4 being the strongest quarter, sustained growth and a return to historical profitability levels, Mayor McCornell resonating with North American kids, future updates on the sales process, using the NCIB opportunistically, yielding cost savings in fiscal 2024, additional revenue resulting from one animation production, changes in total revenue, future updates from broadcasters, and timing of filming new movies. Forward-looking statements are based on estimates and assumptions that, while considered reasonable, are subject to unknown and known risks, uncertainties, and other factors which are set out in the company's most recent management discussion and analysis 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, Under relies should not be placed on these statements, which only appear as of the date of this presentation, and no insurance can be given that such events will occur in the disclosed timeframes or at all. Except we're required by law, the company disclaims any intention or obligation to update or revise any forward looking statements, whether 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. McCarran will now provide the corporate update.

Thank you so much, Glenn. My name is Jennifer McCarran, and I am 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 Q3 2024. Thunderbird CFO Simon Bodymore is with me, and we appreciate you taking the time to hear the company's earnings update. Once Simon and I are finished, we will answer your questions and provide clarity where needed. I subscribe to the old adage that you need to look back to move forward, and my role here is to lead and support Thunderbird's growth, and critical to this success is understanding how both the companies and the industries at large history, which can inform our strategy and serve as a motivational tool for our teams. For example, last year at this time, the Writers Guild of America elected to strike, closely followed by the SAG after strike. Major streamers were cutting their content budgets, and several entertainment and media organizations were streamlining operational efficiencies. These, along with other headwinds, shifted and impacted the industry and the way that it collectively moved forward, showcasing resilience, I think, tenacity and agility. Today, across the industry, the overall outlook is beginning to improve. Gains are being made. For example, Disney recently announced that the company's streaming business is close to profitability, which is a great thing, and that the entertainment side of the direct-to-consumer division turned a US $47 million profit in Q2. During the Netflix Q1 update, the streamer announced that it had exceeded quarterly earnings and revenue estimates. Paid subscribers also increased by 16% from the year-earlier period, though Netflix shared that it will no longer report paid memberships starting next year as the company turns its focus towards growing profit rather than just growing its subscriber base. Amazon also revealed last month that its Prime Video service now has more than 200 million monthly viewers. Along with their streaming advertising, Amazon CEO Andy Yassi stated that the company has increasing conviction that Prime Video can be a large and profitable business in and of its own. A rising tide lifts all boats, and the success of Netflix and her other partners generates more opportunity for Thunderbird as a trusted provider of premium content to all the major streamers. The need for A-plus content is here to stay, and Thunderbird, Atomic, and GPM are widely known as the go-to providers. Thunderbird has strong footholds in animation and unscripted content, and a growing presence in scripted, and a solid licensing and distribution offering. During the earlier part of the year, strategic cost reduction measures were implemented to navigate these market uncertainties and pave the way for investment in future growth prospects. And our efforts to steer back towards robust growth are definitely paying off. We are delighted to share that Thunderbird has not only achieved profitability for the second consecutive quarter, but is also on track to fulfill our adjusted EBITDA targets of more than 20% growth year over year for fiscal year 24. As we've said previously, Q4 will be our strongest quarter this fiscal. And with clear insight into 25 and 26, we anticipate sustained growth and a return to our historical profitability levels. Our management team remains steadfast in its commitment to maintaining a resiliency and a strong balance sheet and exercising prudent decisions to navigate evolving market dynamics. while diligently pursuing sustainable growth. Thunderbird's success is also underscored by relationship building and increasing awareness of our brands at key industry events. Atomic's head of production, Joel Bradley, recently traveled to Ireland to attend Animation Dingle, one of the premier animation-focused events in Europe, to represent Canada and Atomic amongst an impressive grouping of animation industry leaders from Netflix, Disney, Pixar, BBC, you name it. The event lives and breathes the best aspects of what the animation industry is all about. Members of our GPM team are scheduled to attend the Banff World Media Festival, Content London, the Real Screen Summit, the NAB Show, and more. And in addition, Richard Goldsmith, President of Thunderbird Global Distribution and Consumer Products, will be attending the TV Kids Summer Festival in June as a panelist. Richard will be part of a session called Watching Windows, where he'll join industry leaders as they discuss the current state of kids' TV sales market and how distributors are employing new strategies to maximize their business. Additionally, our Atomic team will be traveling to Annecy, France, for the yearly animation festival, the largest animation market for showcasing talent, content, and buyers worldwide. Finally, our Thunderbird Brands team is also currently wrapping up a productive week at Licensing Expo, the world's largest trade show for licensing and consumer projects industry. They have met with many of the top toy, apparel, accessories, and promotion companies in the U.S. as potential partners for the company's third-party acquisitions, Mittens and Pants, and Boost New, and our owned IP, including Super Team Canada and Murmur Corner Starfall. Speaking of Mermacorno, the Thunderbird Brands team recently shared exciting updates with the announcement of additional platforms and licensing partners. The first season of Mermacorno Stalfarl will be made available in Warner Brothers, Discovery's streaming service Max in the US, LATAM, Latin America and the Caribbean, as well as Cartoon Network, LATAM and Southeast Asia. The series has also been acquired by Narrative Entertainment's Pop UK, and Chorus Entertainment for Treehouse, Stack TV, and Teletoon in Canada as well. Thunderbird Brands has also appointed the first international licensing agent for the IP. Chorus Entertainment's Nelvana, a renowned international producer, distributor, and licensor of children's animated and live action content, will represent the series in the Canadian market, covering all major categories outside of toys and publishing. Murmacorno has all the right elements for success from Tokidoki's iconic style and Thunderbird and Atomic's character-driven series to Nelvana's retail and licensing expertise in Canada. With Nelvana on board and the U.S. program well under wary, as Jazzware's preps for a fall 2025 launch at specialty retail Murmacorno Starfall is sure to resonate with the American kids. It's already a well-known and beloved Tokidoki brand. The genres we play in, kids and family and unscripted, also offer Thunderbird a level of stability. I've said it many times before, kids' content is the stickiest content because families are less likely to unsubscribe. TVRev recently noticed that younger consumers and families remain a top target for all streamers because this demographic is a reliably lower churn risk. In a report by Parrot Analytics, it was stated that children's programming is one genre that is consistent in high demand, yet in low supply in the U.S. In fact, demand for kids programming exceeds supply on Disney+, Paramount+, Amazon Prime Video, Netflix, Hulu, and Mac. The report further details the value of the trusted kids brands like Disney, Cartoon Network, and Nickelodeon, and highlights the potential of platforms like YouTube, calling it a go-to destination for kids programming. When it comes to unscripted content for streamers, it can offer a cost-efficient way to keep audiences engaged for a longer period of time, as opposed to flashy scripted series. Throughout the pandemic and during the 2023 Hollywood labor disputes, unscripted television emerged, showcasing real-world issues, uncovering new untold stories, and highlighting a diverse range of voices and perspectives, which has become so important in the content creation industry. With scripted work now, however, is really coming back into the fold, which is great. And the demand for unscripted work is anticipated to level out, but it should be noted it has secured its place with audiences worldwide. For our partners in kids and family and unscripted, and in the other areas of our business that are steadily growing, we remain a reliable partner and resource for delivering A-plus premium content. And we continue to be recognized for this across the industry. Recently, the nominees for the 2024 Leo Awards celebrating achievement in British Columbia film and television were announced. Huge congrats to all the Thunderbird teams who received a combined 18 nominations. When we succeed, our partners succeed, therefore reinforcing the strength and stability of our business and brand. We continue to have so much to be proud of, and I can't wait to be sharing more exciting updates on the horizon. Before passing things over to Simon, I want to share that the sales process is ongoing and I will share more updates as soon as I can. Our NCIB also remains in place and the company will continue to opportunistically use the NCIB as we assess the best use of our cash. And while we are in blackout from doing that at the moment, given the process and no automatic purchase plan, The purpose of the process is to close the valuation gap between where we're trading and what we think the business is worth, and to create more shareholder value. Again, we'll give an update on the process when appropriate, and depending on the outcome, we'll adjust the strategy around capital allocation accordingly and quickly. I will now pass things over to Simon to go over the numbers. We'll then share specific updates from the teams before we move to the Q&A. Over to you, Simon. Thanks, Jan.