HALIFAX – Despite a 59% jump in revenue, DHX Media ended the first quarter of fiscal 2015 with a $7.7 million loss after acquiring former Astral Media assets Family Channel, Disney XD, and Disney Junior from Bell Media earlier this year.
For the period ended September 30, 2014, the broadcaster, creator, producer and marketer of family entertainment posted revenues of $43.03 million, up from $27.00 million for Q1 2014, due to the acquisition of DHX Television in July, as well as increases in distribution, producer and service fee revenue.
Net income was a loss of $7.7 million, down from $2.1 million year-over-year, while EBITDA was a loss of $4.41 million, down 167% versus $6.57 million for Q1 2014. Adjusted EBITDA increased 76% to $13.73 million, from $7.80 million in the same period last year, which included DHX Television acquisition costs totaling $3.92 million and a tangible benefit expense of $14.22 million related to DHX Television.
Gross margin for Q1 2015 was $25.07 million, an increase in absolute dollars of $9.81 million or 64% compared to $15.26 million for Q1 2014.
The company also announced that it added a library of 151 television series, feature films and television specials, including all international distribution rights to DHX Media's Degrassi, Instant Star and The L.A. Complex series. The aggregate purchase price for the library was approximately USD $12 million.
"The first quarter of fiscal 2015 was marked by strong growth in revenues and adjusted EBITDA as we realized the first two months of cash flow from DHX Television”, said CEO Dana Landry, in the news release. “Our distribution business and our merchandising-and-licensing arms all saw solid double-digit growth this quarter, over Q1 2014, as did our gross margin. A comparative drop in proprietary production revenues over Q1 last year was expected and was due largely to the specific timing of deliveries in the quarter. Proprietary production deliveries are nonetheless progressing as planned for fiscal 2015 and we remain confident of achieving the targets previously stated in our outlook for the year."
