WOW Unlimited Media Announces Termination of Distribution Agreement With Key Channel Affiliate
TORONTO and VANCOUVER, British Columbia, Dec. 30, 2019 (GLOBE NEWSWIRE) — WOW Unlimited Media Inc. (“WOW!” or the “Company”) (TSX-V: WOW/OTCQX: WOWMF) announces that WOW!’s subsidiary, Frederator Networks, Inc. (“Frederator”), and ADME (CY), Ltd. (“ADME”) have agreed to terminate their agreement pursuant to which Frederator distributes certain of ADME’s channels on YouTube. Both parties will work towards the operational transition of the channels back to ADME during the notice period.
The termination of this agreement will not change management’s latest financial guidance as provided on November 26, 2019, of revenue in excess of $90 million and operating EBITDA in excess of $0.6 million for financial year ending December 31, 2019.About WOW! Unlimited Media Inc.WOW! Unlimited is creating a leading animation-focused entertainment company by producing top-end content and building brands and audiences on the most engaging media platforms. The Company produces animation in its two established studios: Frederator Studios in Los Angeles, which has a 20-year track record; and one of Canada’s largest, multi-faceted animation production studios, Mainframe Studios in Vancouver, which has a 25-year track record. The Company’s media assets include Channel Frederator Network, on YouTube, as well as WOW! branded programming on Crave, Canada’s leading streaming entertainment platform, owned by Bell Media. The Company operates out of offices in Toronto, New York, Vancouver and Los Angeles. The common voting shares of the Company and variable voting shares of the Company are listed on the TSX Venture Exchange and the OTCQX Best Market.Further information available at:Website: www.wowunlimited.coNeither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.NON-IFRS FINANCIAL MEASURESThis press release makes reference to certain financial terms that the Company utilizes to assess the financial performance of its business that are not measures recognized under International Financial Reporting Standards (“IFRS”). In addition to results reported in accordance with IFRS, the Company reports using certain non-IFRS financial measures as supplemental indicators of the Company’s financial and operating performance. These non-IFRS financial measures include operating profit or loss, operating profit or loss per share and operating EBITDA. The Company believes these supplemental financial measures reflect the Company’s on-going business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.The Company defines operating profit or loss as net profit or loss excluding the impact of specified items affecting comparability, including, where applicable, share of gain or loss of equity accounted investees, other non-operational income and expenses, deferred taxes and other gains or losses. The use of the term “non-operational income and expenses” is defined by the Company as those that do not impact operating decisions taken by the Company’s management and is based upon the way the Company’s management evaluates the performance of the Company’s business for use in the Company’s internal management reports. Operating profit or loss per share is calculated using diluted weighted average shares outstanding and does not represent actual profit or loss per share attributable to shareholders. The Company believes that the disclosure of operating profit or loss and operating profit or loss per share allows investors to evaluate the operational and financial performance of the Company’s ongoing business using the same evaluation measures that management uses, and is therefore a useful indicator of the Company’s performance or expected performance of recurring operations.The Company defines operating EBITDA as profit or loss net of amortization of investment in film and television programming, but before interest, taxes, depreciation and amortization, adjusted for certain items affecting comparability as specified in the calculation of operating profit or loss. Operating EBITDA is presented on a basis consistent with the Company’s internal management reports. The Company discloses operating EBITDA to capture the profitability of its business before the impact of items not considered in management’s evaluation of operating performance. Unless otherwise stated, the Company includes the amortization of investment in film and television programming in the calculation of operating EBITDA.The Company defines backlog as the undiscounted value of signed agreements for production services and intellectual property (“IP”) in relation to licensing and distribution agreements for work that has not yet been performed, but for which the Company expects to recognize revenue in future periods. Backlog excludes estimates of variable consideration for transactions involving sales or usage-based royalties in exchange for licences of intellectual property. The extent of eventual revenue recognized in future periods may be materially higher or lower than this amount, depending upon factors which include, but are not limited to the following: (i) contract modifications, (ii) fluctuations in foreign exchange rates for contracts not denominated in Canadian dollars, (iii) changes to production and delivery schedules, or (iv) valuation issues in connection with the collectability of fees.Operating profit or loss, operating profit or loss per share, operating EBITDA, and backlog do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The Company cautions readers to consider these non-IFRS financial measures in addition to, and not as an alternative for, measures calculated in accordance with IFRS.Forward-looking StatementsThis news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes. These statements relate to future events or future performance and reflect management’s expectations or beliefs regarding future events. In particular, this news release contains forward-looking statements relating to: management’s latest financial guidance of revenue and operating EBITA for fiscal 2019 and the transition of channels back to ADME. The reader is cautioned that such forward-looking statements may prove to be incorrect.Management of the Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions, certain of which are beyond WOW!’s control, are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including information obtained from third party industry analysts and other third party sources. Specific material factors and assumptions include, but are not limited to: (i) the performance of WOW!’s business, including current business and economic trends; (ii) capital expenditure programs and other expenditures by WOW! and its customers; (iii) dependence on key personnel and the ability of WOW! to retain and hire qualified personnel; (iv) the ability of WOW! to market its content successfully to existing and new customers; (v) the ability of WOW! to retain customers; (vi) the ability of WOW! to obtain timely financing on acceptable terms; (vii) a stable competitive environment; (viii) WOW!’s ability to anticipate and adapt to changes in technology and product consumption patterns; (ix) a stable industry regulatory environment; (x) ongoing relationships with WOW!’s distributors and business partners; and (xi) competitive forces within the entertainment industryForward-looking statements are not a guarantee of future performance and are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in the Company’s annual information form for the year ended December 31, 2017 and the management’s discussion and analysis for the year ended December 31, 2018 both of which have been filed with the Canadian Securities Administrators and are available on www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
Contact: Bill Mitoulas, Investor Relations
Tel: (416) 479-9547