Rebrand as “WildBrain” across all Business Units and new organizational structure reflects focus on creativity, digital media and 360˚ management of brands
DHX Media, a global kids’ and family content and brands company, today reported its fourth quarter (“Q4 2019”) and year-end results (“Fiscal 2019”) for the period ended June 30, 2019. The Company also announced that it will change its name to WildBrain and has begun rolling out a new corporate brand identity. Additionally, the Company commenced a management and business reorganization to advance its strategic priorities, and has appointed a new Chief Financial Officer (“CFO”).
Eric Ellenbogen, the Company’s newly appointed Chief Executive Officer and Vice Chair, said: “In Fiscal 2019, we advanced our priorities of creating premium content, growing our AVOD business, improving our cash flow and strengthening our balance sheet. In Q4 2019, revenue rose 12% to $108.8 million and adjusted EBITDA was up 26% to $20.2 million.”
“Rebranding as WildBrain embraces our commitment to creativity, imagination and innovation, and our 360° approach to brand management. For many years, our WildBrain group has been at the leading edge of the digital media business. As that landscape continues to rapidly evolve, now is time to unify all the parts of our Company under both the name and entrepreneurial culture that WildBrain represents.”
Company-Wide Rebranding as WildBrain
The Company’s comprehensive rebrand to WildBrain includes a new logo and website. A new tagline for the Company – “Imagination runs wild” – speaks to becoming the best home for talent and a place where creativity comes first. The Company’s website can now be found at www.wildbrain.com. The Company’s YouTube business, formerly known as “WildBrain,” has been renamed “WildBrain Spark.”
The Company will be exhibiting at the upcoming major trade conferences, Brand Licensing Europe and MIPCOM, under the new Company brand WildBrain.
Shareholders of the Company will be asked to approve a special resolution to change the corporate name to WildBrain at the upcoming 2019 Annual Meeting of Shareholders, which is expected to be scheduled for December 2019. Following approval, the Company also expects to change its ticker on the Toronto Stock Exchange (“TSX”) and NASDAQ to “WILD”. Until that time, the Company will continue to report under the DHX Media name and to trade on both stock exchanges under its present symbols, DHX on the TSX and DHXM on the NASDAQ.
Management and Business Reorganization to Support Company’s Strategy
As part of its strategic repositioning, subsequent to year-end the Company’s new CEO initiated a reorganization of its management team to simplify the organizational structure and reduce costs. These initiatives began in Q1 2020 and are expected to be completed by the end of Fiscal 2020. As a result, the Company expects to incur one-time cash reorganization charges in the range of $10.0 – $12.0 million that are expected to generate annual savings of approximately $10.0 million. A portion of these savings will be redeployed to invest in growth areas of the business including our AVOD business and brands.
As part of this reorganization, Aaron Ames, Chief Operating Officer (“COO”), has been appointed CFO effective immediately, succeeding Doug Lamb, who has decided to step down. To ensure a smooth transition, Lamb will remain with the Company in an advisory role until October 31, 2019. The COO position will not be replaced.
Ellenbogen continued: “Aaron has a lengthy history with the Company and has made significant contributions as COO. I’m confident that with his deep knowledge of our operations and a background in business improvement, integration and synergies, Aaron will be a strong leader of our finance function. We thank Doug for his considerable contributions to the Company.”