KEW MEDIA GROUP Reports First Quarter 2019 Financial Results

Reaffirms Full Year 2019 Outlook

TORONTO--()--KEW MEDIA GROUP INC. (“KEW MEDIA”, “KEW” or the “Company”) (TSX:KEW and KEW.WT) today released its financial results for the three month period ended March 31, 2019 (“Q1 2019”). KEW MEDIA’s audited annual financial statements along with its Management’s Discussion and Analysis for Q1 2019 are available on the Company’s investor relations website at https://investors.kewmedia.com and under the Company’s profile at www.sedar.com. All financial results are reported in Canadian dollars unless otherwise stated.

Q1 2019 Highlights

  • Revenue of $52.0 million (2018: $39.8 million)
  • Gross Profit1 of $14.1 million (2018: $12.8 million)
  • General and Administrative expenses2 (“G&A”) of $14.0 million (2018: $10.5 million)
  • Adjusted EBITDA3 of ($0.1) million (2018: $2.5 million)
  • Net Loss of ($7.9) million (2018: ($0.2) million)
  • Adjusted Net Loss4 after tax5 of ($3.2) million (2018: $2.5 million)
  • Reaffirmed full year 2019 outlook of mid to high single digit percentage organic growth over the annualized Pro forma 2018 Adjusted EBITDA of $31.9 million6
   

 

Three months ended

(in millions of Canadian dollars, except
per share data)

March 31,
2019

 

March 31,
2018

% Chg
Revenue
Production $ 33.5 $ 24.5 36.7 %
Distribution $ 18.5 $ 15.3 20.9 %
Total $ 52.0 $ 39.8 30.7 %
Gross Profit
Production $ 9.0 $ 6.5

38.5

%
Distribution $ 5.0 $ 6.3

(20.1

) %
Total $

14.1

$ 12.8 9.4 %
Gross Profit Margin - Production 26.9 % 26.5 %
Gross Profit Margin - Distribution 27.0 %

41.2

%
Gross Profit Margin Total 26.9 % 32.2 %
Adjusted EBITDA $ (0.1 ) $ 2.5 N.M.
Net Loss $ (7.9 ) $ (0.2 ) N.M.
Adjusted Net Income (Loss) after tax $ (3.2 ) $ 2.5 N.M.
Net Loss Per Share $ (0.64 ) $ (0.06 ) N.M.
Adjusted Earnings (Loss) Per Share $ (0.24 ) $ 0.21 N.M.
 

Steven Silver, Chief Executive Officer of KEW MEDIA, said, “Our first quarter results were in line with our expectations as the group saw a meaningful increase in revenues and gross profits, which were offset by higher levels of budgeted G&A. The difference in profitability in the first quarter compared to the prior year period is due to timing differences related to revenue recognition and product mix. Our sales momentum is strong and we have made excellent progress with our full year product pipeline. We remain focused on enhancing our quality of revenues and driving greater margins and profitability across the group.”

Peter Sussman, Executive Chairman of KEW MEDIA, added, “These are exciting times for KEW with a mountain of content being produced, both internally and by third party producers which is being sold around the world by our distribution teams. The demand for content and the proliferation of streaming players coming to market continues to be a significant tailwind for our business.”

Financial Highlights for the Three Months Ended March 31, 2019

KEW MEDIA’s results in any given quarter or year can be affected by seasonality and/or specific product mix timing. Typically, production occurs over the summer and starts delivering in the fall and winter months. Q1 2019’s revenue of $52.0 million was comprised of $33.5 million from Production and $18.5 million from Distribution. Gross Profit of $14.1 million included $9.0 million from Production and $5.0 million from Distribution. Gross Profit Margin was 26.9%, with segmented Gross Profit Margin of 26.9% for Production and 27.0% for Distribution. Overall margins met management’s expectations for the quarter. Inside the Production segment, Gross Profit Margins were higher due to improved margins in the quarter, including the introduction of Essential. Inside the Distribution segment, margin percentages met management’s expectations and were lower than in previous periods due to product mix and revenue recognition timing. Adjusted EBITDA was ($0.1 million), the Net Loss was ($7.9 million), or ($0.64) per share and Adjusted Net Loss after tax was ($3.2 million), or ($0.24) per share.

Segment Information

Production

During the first quarter, Revenues were $33.5 million, an increase of 36.7%, Gross Profit was $9.0 million, an increase of 38.5%, and the Gross Margin percentage was 26.9% (2018: 26.5%). G&A increased by 38.7% to $7.2 million. All of these increases were predominantly due to the inclusion of Essential in the quarter. Adjusted EBITDA increased by $0.2 million to $1.0 million. The titles that were produced across the segment included: Texas Flip and Move 12-13, Death Row Stories 4 for CNN in the US, Dance Moms 8 for A&E in the US, Dirty Money 2 for Netflix, Stats of Life 2 for CBC, Backyard Builds 2 for Corus, Fire Masters for Corus, and The Brigade for Outdoor Network.

Distribution

During the first quarter, Revenues were $18.5 million, an increase of 20.6%, Gross Profit was $5.0 million, a decrease of 20.1%, and the Gross Margin percentage was 27.0% (2018: 41.3%). G&A increased by 32.4% to $4.5 million. Adjusted EBITDA decreased by $2.4 million to $0.5 million. The segment’s revenues benefitted from the delivery in the quarter of some high revenue/low margin titles. Consequently, whilst revenues increased, gross profit decreased compared to Q1 last year, which had a product mix with comparatively higher margin titles. Additionally, we have budgeted for higher G&A in this segment this year to drive its growth. The titles that were distributed across the segment included: Slasher 3, Paranormal 911, Republic of Doyle, Leaving Neverland, Egypt’s Unexplained Files, and Abandoned Engineering.

Gross Profit and G&A

KEW MEDIA focuses on Gross Profit as a performance indicator given that the Company has a diverse product range with some low revenue items attracting 100% Gross Profit Margins and other high revenue items having Gross Profit Margins as low as 5%. Gross Profit for Q1 2019 was $14.1 million compared to $12.8 million last year, an overall increase of 9.4%.

G&A was in line with our expectations, with an increase of $3.5 million in the quarter compared to last year. This was predominantly due to the inclusion of Essential in this year’s Q1 results, together with an increased investment in our distribution platform and the addition of centralized infrastructure costs.

Developments in the Quarter

Across the Group there have been a number of positive developments in Q1 that have contributed to our confidence in the full year result. These include:

  • Leaving Neverland became one of the industry’s most prominent documentaries attracting front page coverage and some of the highest ratings seen for a documentary in particular territories. Some of the revenues for this title were recognized in Q1 and will continue in Q2 and throughout the year
  • The highly awaited reboot of Dance Moms, one of the largest series in the Group, went into full production and will start delivering in Q2 with a forecast first broadcast date in June. Several specials in relation to the series have been ordered and ongoing revenues are anticipated throughout the year
  • Jigsaw delivered The Inventor: Out for Blood in Silicon Valley, the highly anticipated documentary on Elizabeth Holmes and the Theranos scandal for HBO in the US
  • Several major series have been renewed in the Distribution segment, including Frankie Drake Mysteries 3 and Abandoned Engineering 4
  • In the Production segment, there have been renewals for Best Cake Wins 2, Paranormal Survivor 5 and Haunted Hospitals 2, and new series were commissioned including Backyard Beats as well as several new documentaries from Jigsaw

Balance Sheet and Net Debt

As of March 31, 2019, the Company had cash and cash equivalents of $23.6 million, approximately $3.6 million in loan availability and Net Debt7 of $103.9 million.

Adjusted Net Debt8 as of March 31, 2019 was $84.7 million. This figure takes into account material foreign exchange movements since the beginning of the year and amounts expended by KEW MEDIA’s treasury on interim production financing.

The Adjusted Net Debt of $84.7 million to Pro forma 2018 Adjusted EBITDA of $31.9 million is 2.7:1. The Company continues to anticipate that this ratio will reduce further into 2019 with an overall target of 2:1 or below, reflecting the projected growth in our Adjusted EBITDA for the year, together with the expected benefits from positive cash flow generation.

Free Cash Flow (FCF)91

FCF before movements in working capital and before movements in film and television rights was ($3.0 million) compared to $1.1 million last year. FCF after movements in working capital but before investments in film and television rights was $6.2 million compared to ($2.0 million) last year. After movements in both working capital and investments in film and television rights, FCF was ($2.0 million) compared to ($2.2 million) last year.

At the segment level, Production FCF before movements in working capital and investments in film and television rights was $0.6 million. FCF after movements in working capital but before movements in investments in film and television rights was $5.4 million. After movements in both working capital and investments in film and television rights, FCF was ($1.1 million).

Distribution FCF before movements in working capital and movements in investments in film and television rights was $0.5 million. FCF after movements in working capital but before movements in investments in film and television rights was $3.9 million. After movements in both working capital and investments in film and television rights, FCF was $2.2 million.

7Net Debt is debt less any cash and cash equivalent balances. 8Adjusted Net Debt is Net Debt less interim production loans provided by KEW MEDIA treasury less effect of foreign exchange movements. See “Non-IFRS Measures” and “Forward-Looking Statements” below in this press release.9Free Cash Flow is Adjusted EBITDA adjusted for additions to Property and Equipment, Interest and cash taxes. 10The statements set out in this Outlook section are based on management’s assumptions, current strategies and assessment of the outlook for the business. Given the seasonal and other fluctuations in KEW MEDIA’s business, the Company may not be in a position to provide periodic updates on its progress in meeting its expectations. These statements constitute forward looking information for purposes of applicable Canadian securities legislation and readers are cautioned that KEW MEDIA’s actual result may vary from these forward looking statements and that variation could be material. See “Forward Looking Statements” for a description of the assumptions and risks associated with these forward looking statements.

Outlook9

For the full year 2019, KEW MEDIA continues to expect a range of mid to high single digit growth on full year 2018 Pro forma Adjusted EBITDA of $31.9 million. KEW MEDIA’s results in any given quarter or year can be affected by seasonality and/or specific product delivery timing. Typically, production occurs over the summer and starts delivering in the fall and winter months. As reflected in our 2018 performance, our 2019 results are expected to be heavily weighted in the fourth quarter.

Conference Call

KEW MEDIA will host a conference call to discuss the first quarter 2019 financial results on Wednesday, May 15, 2019 at 9:00 a.m. ET. The conference call can be accessed live over the phone by dialing 877-407-0784 (USA and Canada) or 201-689-8560 (International). A replay will be available from 12:00 p.m. ET on May 15, 2019 through May 22, 2019, and can be accessed by dialing 844-512-2921 (USA and Canada) or 412-317-6671 (International). The replay passcode will be 13689714.

The call will also be webcast live from KEW MEDIA’s investor relations website at https://investors.kewmedia.com. Following completion of the call, a recorded replay of the webcast will be available on the website.

About KEW MEDIA GROUP INC.

KEW MEDIA GROUP is a leading publicly-listed content company that produces and distributes multi-genre content worldwide. Companies included in the KEW family are the production companies: Architect Films, Awesome Media & Entertainment, Bristow Global Media, Collins Avenue Productions, Essential Media Group, 4East Media, Frantic Films, Jigsaw Productions, Media Headquarters, Our House Media, Sienna Films, Spirit Digital Media, and Two Rivers Media; and the distribution companies: KEW Media Distribution and TCB Media Rights.

With primary offices in London, Los Angeles, New York, Sydney and Toronto, the KEW MEDIA GROUP companies develop, produce and distribute more than 2,000 hours of content every year, as well as manage a library of more than 14,000 hours of content, for almost every available viewing platform worldwide. KEW aspires to offer great content from all over the world to viewers of all ages and tastes. KEW promotes transparency, equality, respect, and inclusiveness and plans to grow with the benefit of people from a wide range of perspectives and backgrounds.

Forward-Looking Statements

This news release may include forward-looking statements. All such statements constitute forward looking information within the meaning of securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward-looking statements may include, but are not limited to, statements about anticipated future events or results including comments with respect to the Company’s objectives and priorities for 2019 and beyond, and strategies or further actions with respect to the Company, its business operations, financial performance and condition. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors.

In particular, the statements set out in the Outlook section of this press release regarding our expected Adjusted EBITDA for the year ending December 31, 2019, our expected financial performance for the remainder of 2019 and our expectations regarding the performance of our production and distribution segments for the remainder of 2019, constitute forward-looking statements. These statements are based on management’s current strategies, assumptions concerning growth and assessment of the outlook for the business. In particular, such statements assume that: (i) our production companies will continue to develop, produce and deliver successful productions in a manner consistent with past experience and on expected delivery schedules as outlined under “Outlook” in the press release; (ii) the product mix of the Company’s revenues will continue to be skewed towards higher margin titles; (iii) we will continue to acquire and distribute content in a manner consistent with past experience; (iv) our operating and overhead costs will be within budget; and (v) that the companies we have acquired will meet or exceed our performance expectations. We consider the foregoing assumptions to be reasonable in the circumstances given the time period for such outlook. However, readers are cautioned that KEW’s actual results may vary from these forward-looking statements and that variation could be material. The forward-looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form for the year ended December 31, 2018, a copy of which is available on the SEDAR website at www.sedar.com under the Company’s profile. In particular, KEW’s results of operations fluctuate significantly quarter to quarter depending on the number and timing of content delivered or made available to various media. As in past years, KEW anticipates that its 2019 financial results will be heavily weighted in the fourth quarter and as a result, KEW may not have visibility on its ability to meet the 2019 guidance until the end of the fourth quarter of 2019.

Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and not place undue reliance on forward-looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, KEW does not undertake any obligation to update publicly or revise any such forward-looking statements, and as a result of new information, future events or otherwise.

Non-IFRS Measures

This news release contains references to certain measures that do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) as prescribed by the International Accounting Standards Board and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management’s perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. This news release makes reference to Gross Profit, Gross Profit Margin, Adjusted Net Income, Adjusted EBITDA, Free Cash Flow, Net debt, and Adjusted Net Debt, each of which is a non-IFRS financial measure. The Company believes these non-IFRS financial measures are frequently used by securities analysts, investors and other interested parties as measures of financial performance and it is therefore helpful to provide supplemental measures of operating performance and thus highlight trends that may not otherwise be apparent when relying solely on IFRS financial measures.

The Company’s definitions of non-IFRS financial measures are as follows:

  • Gross Profit is revenue less cost of sales.
  • Gross Profit Margin is gross profit as a percentage of revenue.
  • Adjusted Net Income is Income (Loss) before income tax recovery then includes add-back adjustments for items such as transaction costs, reorganization and exceptional costs, share-based compensation, deferred compensation, other intangibles amortization, gain on change in fair value of financial liabilities, and (gain) loss on sale of subsidiary.
  • Adjusted EBITDA is also provided to better analyze trends in performance and present a truer economic representation on a comparative basis. Adjusted EBITDA is Adjusted Net Income including additional add-back adjustments for Interest Expense, net of Interest Income, Depreciation and any non-cash amortization (to the extent not added back to Adjusted Net Income).
  • Free Cash Flow is Adjusted EBITDA adjusted for additions to Property and Equipment, Interest and cash taxes.
  • Adjusted Free Cash Flow is Free Cash Flow adjusted for additions to film and television rights, net of amortization.
  • Adjusted Net Income after tax is adjusted net income less income tax recovery.
  • Adjusted Net Debt is Net Debt less intra-group interim production financing and adjusted for the impact of foreign exchange
  • Adjusted Earnings Per Share is Adjusted Net Income divided by weighted average number of common shares in the capital of the Company

Please see the Company’s management’s discussion and analysis for the three months ended March 31, 2019 for a detailed description of these measures and a reconciliation of these measures to the nearest IFRS measure.

Selected Comparative Information

Below is selected information from the consolidated statements of loss for the three months ended March 31, 2019 and the three months ended March 31, 2018.

       

Three months
ended
March 31, 2019

   

Three months
ended
March 31, 2018

Revenue          
Production and distribution revenue 52,001 39,782
Cost of sales       37,995     26,982
Gross profit (1) 14,006 12,800
Expenses
General and administrative expenses 14,056 10,544
Amortization of other intangible assets 2,157 2,168
Amortization of right-of-use asset 1,322 -
Transaction costs - 932
Deferred compensation 902 -
Share-based compensation 923 45
Interest expense, net of interest income, on long term borrowings 2,175 1,158
Interest expense on lease obligations 326 -
Depreciation 375 190
(Gain) loss on change in fair value of financial liabilities 34 (1,897)
Foreign exchange on financial liabilities       (39)     451
Total expenses       22,231     13,591
Loss before income tax recovery (8,225) (791)
Income tax recovery       341     612
Net loss for the period       (7,884)     (179)
               
Net income (loss) attributable to:
Equity holders of the parent (8,562) (690)
Non-controlling interest       678     511
        (7,884)     (179)
Loss per share attributable to equity holders of the parent:
Loss per share
- basic and diluted (0.64) (0.06)
Weighted average number of Common Shares outstanding
- basic and diluted 13,438,866 11,818,646
 
Calculation of Adjusted net income (loss) (1) and Adjusted EBITDA: (1)
Loss before income tax recovery (8,225) (791)
Amortization of other intangible assets 2,157 2,168
Transaction costs - 932
Deferred compensation 902 -
Share-based compensation 923 45
(Gain) loss on change in fair value of financial liabilities 34 (1,897)
Foreign exchange on financial liabilities (39) 451
Corporate reorganization costs (2) - 315
Exceptional costs (2)       664     639
Adjusted net income (loss) for the period (3,584) 1,862
Depreciation 375 190
Amortization of right-of-use asset 1,322 -
Interest expense, net of interest income, on long-term borrowings 2,175 1,158
Interest expense on lease obligations       326     -
Adjusted EBITDA before NCI 614 3,210
Non-controlling interest       (760)     (733)
Adjusted EBITDA after NCI       (146)     2,477
 
(1)   Refer to the “Use of Non-IFRS Financial Measures” section of the MD&A
(2) Included in general and administrative expenses
(3) On January 1, 2019, Kew adopted IFRS 16, Leases. No adjustment was made to the three-month period ended March 31, 2018. The amounts reflected in the three months ended March 31, 2019 reflect the relevant changes under the standard. As noted in the interim condensed consolidated financial statements, payments made under lease obligations were $1,185 in the quarter.
 

Revenue, Cost of Sales, Gross Profit and Segmental Analysis

       

Three months
ended
March 31, 2019

   

Three months
ended
March 31, 2018

Revenue          
Production and distribution revenue 52,001 39,782
Cost of sales       37,995     26,982
Gross profit(1) 14,006 12,800
 

The Company’s business activities are conducted through two segments.

Three months ended March 31, 2019       Production     Distribution     Corporate     Consolidated
Revenues       33,542     18,459     -     52,001
Cost of sales       24,514     13,481     -     37,995
Gross profit(1) 9,028 4,978 - 14,006
General and administrative expenses       7,243     4,501     2,312     14,056
Segment profit (loss) 1,785 477 (2,312) (50)
Exceptionals       -     68     596     664
NCI       (760)     -     -     (760)
Adjusted EBITDA(1)       1,025     545     (1,716)     (146)
 
Three months ended March 31, 2018       Production     Distribution     Corporate     Consolidated
Revenues       24,479     15,303     -     39,782
Cost of sales       17,995     8,987     -     26,982
Gross profit (1) 6,484 6,316 - 12,800
General and administrative expenses       5,222     3,400     1,922     10,544
Segment profit (loss) 1,262 2,916 (1,922) 2,256
Exceptionals and corporate reorganization costs      

315

   

-

   

639

   

954

Non-controlling interest from EBITDA       (733)     -     -     (733)
Adjusted EBITDA(1)       844     2,916     (1,283)     2,477

(1) Refer to the “Use of Non-IFRS Financial Measures” section of the MD&A

 

Adjusted EBITDA and Free Cash Flow (FCF)

       

Three months
ended
March 31, 2019

   

Three months
ended
March 31, 2018

Adjusted EBITDA       (146)     2,477
Additions to property and equipment (372) (216)
Interest paid (2,501) (1,158)
Cash taxes       -     -
FCF before movements in working capital and before movements in film and television rights (3,019) 1,103
Net change in working capital       9,182     (3,166)
FCF after movements in working capital before movements in film and television rights 6,163 (2,063)
Additions to film and television rights net of amortisation      

(8,134)

   

(121)

FCF (1,971) (2,184)
 

Segmental FCF

        Production     Distribution     Corporate    

Three months ended
March 31, 2019

Adjusted EBITDA       1,025     545     (1,716)     (146)
Additions to property and equipment (305) (46) (21) (372)
Interest paid (123) (29) (2,349) (2,501)
Cash taxes - - - -
FCF before movements in working capital 597 470 (4,086) (3,019)
Net change in working capital 4,759 3,402 1,021 9,182
FCF after movements in working capital 5,356 3,872 (3,065) 6,163
Additions to film and television rights net of amortization      

(6,432)

   

(1,702)

   

-

   

(8,134)

Adjusted FCF       (1,076)     2,170     (3,065)     (1,971)
 

Earnings per share (EPS) and Adjusted EPS

       

Three months ended
March 31, 2019

   

Three months ended
March 31, 2018

Adjusted EBITDA       (146)     2,477
Depreciation and amortization of right-of-use asset (1,697) (190)
Interest expense on long term borrowings (2,175) (1,158)
Interest expense on lease obligations (326) -
Tax recovery 341 612
Non-controlling interest from EBITDA       760     733
Adjusted net income after tax       (3,243)     2,474
Adjusted EPS- basic and diluted       (0.24)     0.21
Exceptional costs (664) (639)
Corporate restructuring costs - (315)
Transaction costs - (932)
Stock-based compensation (923) (45)
Deferred compensation costs (902) -
Amortization of other intangible assets (2,157) (2,168)
Gain (loss) on change in fair value of financial liabilities (34) 1,897
Gain (loss) on FX translation of financial liabilities       39     (451)
Net income       (7,884)     (179)
Basic EPS- basic and diluted       (0.64)     (0.06)
 

_____________________

1   Gross Profit is revenue less cost of sales.
2 The increase of $3.5 million in G&A was primarily due to the Essential acquisition last year and centralized infrastructure costs, as contemplated in our full year 2019 outlook.
3 Adjusted EBITDA is EBITDA excluding certain items to better analyze trends in performance and after non-controlling interests. These adjustments result in a truer economic representation on a comparative basis. Adjusted EBITDA includes the add-backs made to calculate the Adjusted Net Income and additional add-backs for interest expense, net of interest income, depreciation and any non-cash amortization (to the extent not added to Adjusted Net Income). See “Non-IFRS Measures” and “Forward-Looking Statements” below in this press release.
4 Adjusted Net Income is income (loss) before income tax recovery then includes add-back adjustments for items such as transaction costs, reorganization and exceptional costs, share-based compensation, deferred compensation, other intangibles amortization, gain on change in fair value of financial liabilities, and gain (loss) on foreign exchange on financial liabilities. See “Non-IFRS Measures” and “Forward-Looking Statements” below in this press release.
5 Adjusted Net Income after tax is Adjusted Net Income less income tax recovery.
6 2018 Pro forma Adjusted EBITDA is $31.9 million, being the 2018 Adjusted EBITDA of $26.9 million plus an additional approximate $5 million from the period January 1, 2018 to the date of acquisition to reflect a full year’s results of Essential.
7 Net Debt is debt less any cash and cash equivalent balances.
8 Adjusted Net Debt is Net Debt less interim production loans provided by KEW MEDIA treasury less effect of foreign exchange movements. See “Non-IFRS Measures” and “Forward-Looking Statements” below in this press release.
9 Free Cash Flow is Adjusted EBITDA adjusted for additions to Property and Equipment, Interest and cash taxes.
10

The statements set out in this Outlook section are based on management’s assumptions, current strategies and assessment of the outlook for the business. Given the seasonal and other fluctuations in KEW MEDIA’s business, the Company may not be in a position to provide periodic updates on its progress in meeting its expectations. These statements constitute forward looking information for purposes of applicable Canadian securities legislation and readers are cautioned that KEW MEDIA’s actual result may vary from these forward looking statements and that variation could be material. See “Forward Looking Statements” for a description of the assumptions and risks associated with these forward looking statements.

Contacts

Investor Relations:
Steven Silver
Chief Executive Officer
647-957-2194
investors@kewmedia.com

Contacts

Investor Relations:
Steven Silver
Chief Executive Officer
647-957-2194
investors@kewmedia.com