Thunderbird Entertainment Group Reports on Second Quarter Fiscal Year 2021 Results

Thunderbird Entertainment Group Inc. (TSXV: TBRD, OTCQX: THBRF) (Thunderbird or the Company), today announced its financial results for the second quarter ended December 31, 2020 (“Fiscal 2021”), and provided a corporate update.

Financial Highlights

• The Company recognized revenue of $28.0 million and $47.7 million in the three and six months ended December 31, 2020, increases of 98% ($13.9 million) and 56% ($17.1 million) over the comparative periods.
• Adjusted EBITDA was $5.2 million and $10.0 million for the three and six months ended December 31, 2020 compared to $2.0 million and $5.7 million for the comparative periods in fiscal 2020, increases of $3.2 million and $4.3 million, respectively. These increases are primarily due to growth in the Kids and Family Division.
• Production services revenue for the three and six months ended December 31, 2020 increased by 63% ($7.4 million) and 53% ($11.7 million) over the comparative periods, due to an increase in the number and size of contracts. This revenue consists primarily of animation production services, which experienced continued growth.
• Licensing and distribution revenues increased by 272% ($6.4 million) and 63% ($5.3 million) for the three and six months ended December 31, 2020 over the comparative periods, due mainly to the timing of delivery of the animated series The Last Kids on Earth. In the current quarter, the Company recognized revenue from 10 episodes of The Last Kids on Earth and six episodes of the factual series Highway Thru Hell. In the comparative quarter, revenue was recognized from seven episodes of Highway Thru Hell.
• Free cash flow was $4.4 million and $5.6 million for the three and six months ended December 31, 2020 as compared to ($3.8) million and $0.2 million for the comparative periods, increases of $8.2 million and $5.4 million, respectively.

“As we continue to grow Thunderbird into a major global studio, Q2 results further demonstrate that our long-term strategy and initiatives are paying off, with significant increases in revenue and Adjusted EBITDA, year-over-year,” said Jennifer Twiner McCarron, President and CEO of Thunderbird. “In Q2, we were in production on 21 properties – including a growing percentage of owned-IP projects that offer higher economic value and for which we fully control the rights. This, in conjunction with our new consumer products division, allows us to fully leverage the world class brands being created at Thunderbird.”

Thunderbird’s Q2 2021 Corporate Highlights

• During the second quarter, Thunderbird had 21 programs in various stages of production. The Company’s work airs on Netflix, Peacock, Nickelodeon, AppleTV+, Hulu, PBS, Bell Media's Discovery, Disney+, Corus Entertainment and the CBC, among others. Ten of the projects in production are Company IP or partner-managed.
• The Factual and Scripted Division, Great Pacific Media (GPM), was in production on four series and one documentary special: Highway Thru Hell (Seasons 9 and 10), Heavy Rescue: 401 (Seasons 5 and 6), $ave My Reno (Season 4), Mud Mountain Haulers (Season 1) and The Teenager and the Lost Mayan City (Documentary for CBC). Kim’s Convenience was in production on Season 5.
• The Kids and Family Division, Atomic Cartoons, was in various stages of production on 13 animated series, and two feature length animated productions, 15 productions in total. Productions include