DHX Media (NASDAQ: DHXM) noted earnings Tuesday early morning, masking the second quarter of fiscal calendar year 2018. The maker and distributor of kid’s material and linked brands delivered continual sailing towards its complete-calendar year targets, like powerful effects from lately obtained brands.

DHX Media’s second-quarter effects: The raw numbers

Here is a brief appear at DHX Media’s economical effects. Observe that all numbers in the table and discussion down below are in DHX’s reporting forex, Canadian bucks:

Metric

Q2 2018

Q2 2017

Year-Around-Year Transform

Income

$121.nine million

$78.nine million

55%

Web money

$seven.4 million

$five.eight million

28%

GAAP earnings for every share (diluted)

$.07

$.05

forty%

Data source: DHX Media. GAAP = normally recognized accounting ideas .

Young girl and her mom watching TV on the living room floor, with a big bowl of popcorn.

Impression source: Getty Pictures.

What took place with DHX Media this quarter?

Out of DHX’s $122 million in leading-line income, sixty eight% — or $eighty two.nine million — came from the firm’s existing brands, for a five% natural and organic calendar year-about-calendar year improve. The relaxation sprung from the $345 million acquisition of Peanuts and Strawberry Shortcake , which shut in the summer time of 2017.

Buyer goods income landed at $42.seven million, up from $36.2 million in the to start with quarter and $eight.three million in the calendar year-ago interval. Strawberry Shortcake pulled her excess weight in this surge, but Peanuts delivered the bulk of these gains. Buyer goods accounted for forty% of DHX Media’s income in the to start with fifty percent of 2018, up from 17% for the exact same interval in 2017.

Synergies in between material development, distribution to global Television set networks, and linked client merchandise income are boosting DHX’s dollars generation. Free dollars movement stopped at $five.nine million in the second quarter, in comparison to dollars losses of $ten.seven million in the calendar year-ago interval and $32.4 million in the to start with quarter.

Two pie charts showing DHX Media's revenue contributions by operating segment, comparing the first halves of fiscal 2017 and 2018.

Impression source: DHX Media.

What administration experienced to say

“We continue being on track to accomplish our targeted annualized savings from the Peanuts integration and companywide cost-reduction plan,” claimed DHX Media CEO Dana Landry in a prepared assertion. “Management remains concentrated on developing the two revenues and dollars movement, as we provide on our dedication to de-lever.”

Looking in advance

The company is exploiting the Peanuts portfolio around the environment, signing co-branding partnerships with house names like Levi’s and Nordstrom  in the second quarter. Snoopy-themed shop-in-shop shows will pop up in Nordstrom locations to tie into the Chinese New Year — it’s the Year of the Canine, following all.

In maintaining with that China-based mostly marketing, DHX signed a distribution offer with Chinese electronic media big Tencent that will place 450 fifty percent-hour episodes on Tencent’s Chinese streaming movie products and services.

Primarily based on the development of the second quarter, DHX Media’s administration simply just reiterated its economical targets for fiscal calendar year 2018. As a reminder , the company aims to create modified EBITDA income of approximately $a hundred and forty million this fiscal calendar year, or $sixty million of absolutely free dollars movement. These targets are heavily weighted towards the again fifty percent of the fiscal calendar year, considering the fact that absolutely free dollars movement stands at a detrimental $26.6 million through the to start with two quarters.

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Anders Bylund has no position in any of the shares mentioned. The Motley Idiot owns shares of and endorses TCEHY. The Motley Idiot also endorses DHX Media and JWN. The Motley Idiot has a disclosure plan .

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