Reservoir Media (RSVR) 13 Nov 212022 Q2 Earnings call transcript

Good morning everyone and thank you for participating in today's Conference Call to discuss Reservoir Media's Financial Results for the Second Quarter of Fiscal 2022 ended September 30th, 2021. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to turn the call over to Ms. Alpha the who company's the agenda review with and today forward-looking Marcus IR will Group our Jackie statements. Jackie?

issued conference Thank and you, second XXXX Reservoir fiscal earnings September XXXX for earlier thank everyone press Media call. XXth, you for quarter with operator. participating in its Good results an earnings morning this ended release of today's morning.

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made career-defining a significant us, the Songwriter Celeste. won incredible music we and Novello is that it of support recognizing And of legendary and in the Reservoir to past all assets continued to with Hartman Over addition legacy investments artists. trusted welcome our our achievements of and roster Jamie award their all portfolio and continuing to starts evidence months, for alongside the me, geographies, the across artists. coveted and Longtime Reservoir iconic client his in moment few incredible roster of artists the genres songwriters accomplishments. of the and the steward for build Ivor to Joni Year and partner assets Mitchell, our

market celebrated the Year to a Music for of Business along with capture recognitions. share XX and awards States A&R Publisher the at United We nomination to according Awards, Worldwide a and in of Billboard top continue slew

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offset specifically seen Our source. revenue strong revenue two challenges from COVID-related performance our sources these results helped with some

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So, of certain intangible these non-recurring such of as certain costs capitalized metrics or impact do tangible not Adjusted expenses in stock-based reflect generating assets periodic used the EBITDA non-cash comp. removes revenues. other and

well costs OIBDA offset increased public These associated with costs were quarter, $XX.X adjusted XX% as a second higher increases driven revenues the Tommy by being to grew with the of XXXX. partially For year-over-year company. million fiscal segments, primarily which from million, were Boy as EBITDA in XX% associated revenues, $XX.X higher to while cost both quarter the by acquisition, of

second quarter interest Net the which Our income the an fiscal fiscal period year last period. million resulted $X.X $X.XX $X.X compared of the for million quarter the increase second share the was share for XXXX for of XX% million, from to was for year. second XXXX. for expense same of was quarter $X.X per of This compared in earnings to prior $X.XX the quarter diluted per

Lastly, million. our is diluted outstanding XX.XX average weighted share count

business. roughly In the some cash allowed terms of the of cash by power organic redemptions our strong the of That remain remain flow leverage prudent to supported our balance with million use investments liquidity sheet, comprised nearly flexibility $XX.X revolver, and combined additional need of our With operating generating notwithstanding, $XX.X has million cash fund total us the of our on strong cadence year. strategic objectives. of million $XX we we original hand our of available under on have with track the to and for

I'd for and total two remarks outlook In compares providing debt have our year we're which end. million That range of $X.X quarter of costs, EBITDA. to XXXX. like the maintain for important $XXX.X revenue a prepared of thus adjusted end million my outlook debt. deferred XXXX was last KPIs; and debt, to financing financial Today, initial net fiscal fiscal fiscal with our we our of terms we million at for of most ended $XXX.X net $XXX.X as net million,

fiscal the midpoint March growth range. in For the $X.X or currently XX% full XXXX revenue. actual revenue to we million XXXX, fiscal end million year, which $XXX compares forecast will million of XXst, at This $XXX for our XXXX to at of

near-term For growth this prior the year, projecting year. public $XX forecasts generating again, to million company acquisitions to complimentary provide balance our midpoint to Organic growth need that $XX.X da, with in related compares sheet $XX cash adjusted million we're should EBIT execute million M&A which we the to XX% our and in fuel fiscal support and the additional fiscal the even and costs included to a in at our topline Again, on opportunities XXXX. power looking being pipeline. equates

as value that consider maximize will move We we will those capital activities sure we any make are forward.

we streams. topline for as remind our we controls, a the overhead strong to will I'll those may our Generally last for be additional by efforts, adjusted EBITDA, to every we the need few one leverage may copyrights only new has acquire. talent wages, In higher often add revenue add that administrator we become range of when operating slightly more cost we service be investors acquire to and as model progressed XX,XXX That don't supported need significant the terms that by cost we catalogs, offset healthy royalty maintain speaking, quarters. said, we've of and to certainly expensive provided

pass adjusted expanding the the Golnar. margins the With that, at I'll back lead call level. that to will to we EBITDA expect Over long-term, now this

Jim. Thank you,

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will the line open We now questions. for

Baldry a Capital. comes Richard Instructions] first ROTH Our [Operator from of question line of

Your is open. line

Thanks.

long-term down seasons a So, but shutdowns start then gets well of obvious sort and as the What if concert that's is on contributing a be outside to could that thing movements we sort dragged lockdowns? of, back that bit. the of performing in that got people our why sort of performance normalized regular, not as sort categories, is level of the full COVID only

primarily we're lagging the a the, the Jim. is Rich, on report still international particular, you? what seeing how are Hey, with in lag. of really Those I effect, three markets six-month Well, the think revenue, to is markets. here performance This

numbers QX of we're out, So, include good we the of the us of progress, in this last really, international numbers pre-pandemic reflective the of numbers, to are on lot last seeing and QX of we're year that there's are pandemic. this while certainly year's that think year's the when comparing levels, and still year, really of where way some a midst being

So, we which think And is move we next over back two that expect to where a our will we forward back. to three international we level quarters, around as be, side come start to performance the really XX% the to it will is -- we'll overall get really where revenue. of

Okay. driver the of something population a is are areas or we but that sort new us it's to Middle to of, ways revenue potential think when like that large that big metrics, few probably buckets, more that's about how and scale East international, this be years about closer that few maybe parts there a come? what are the tells And the per obviously for to -- to or the of versus Europe, U.S. a maybe can think Asia

been a one used the factors out there's like there's Those this size, that East. into that of now revenue touches through of with on in able it. market coming it to go much do to that mentioned performance an have of potential music And are laws the have and say you we're And things a on a of lot way I'd not entity in historically, without that of that, the because regions. oftentimes of licensing it's markets seen Golnar music. has different license with population a ESMAA. that not there's lot properly monetizing really copyright the Middle lot a and do just But there lot in we of think ESMAA, to that hasn't

that a those think revenue. the growth also will performance lot in of markets growth I contribute to emerging of subscription the

time to through new period Xx you adding how what organic you're Xx for et Not the see of organically you the incremental And growth synchronizations, over sort costs that but about your that Then you sustainable organic of been libraries, some growing talk are wholesale when industry, obviously extensible? are growth? cetera? need almost or the support can simply

Its Rich, are you? how Golnar,

Good.

As far have goes, that sustainable. don't any not as growth organic indicator it's we

by we Our a power of through cetera. obviously here those and organic execute continue on growth continue we driven et to is our continue to undertake to sync and lot are staff initiatives that the team, that ones and

have good a we that could have and of indication an pretty that growth we record So, organic track that don't consistent being change.

factors we Then about that revolver. Okay. if drive the capacity the on think the

So, recurring when visible streams. buying highly high assume revenue they you're I that understand -- margin

to buy So, business, flex them those be as over of tools you integrate that grow time. the some sort M&A revolver the have to key of a into the is keep one up that Will effort?

us. lenders. of very have group do really who revenues, Yes, they're it's understand and strong of long our and fortunate lenders I supportive been relationship us. of a mean, predictive a we and our where always position with nature They've we recurring are to be of in very the a And supportive

with we move capacity we forward. revolver our as don't So, any at foresee looking or revolver options around our issues with

And side. new you still walk us can because running you but through the the overall in maybe down, on seasonality are very sorry markets, for the public revenue

Now, you as you've -- given distinct seasonality. number, topline but is a a there

us so of sort that, calibrates it together. that remind just So, everyone of

versus accounting. revenue. a September more with we process some that some that primarily the XX the have to of try of working those end our in international quarters the of We're between move we and have but reality of have to them sub-publishers success Yes. June periods. been cyclicality there, be I larger won't that revenue days side international on periods March of And to moving pay sources, likely everyone our historically to the We're December the make and because distinction number us schedule. a of and semi-annually, who the to seasonality is the like after to quarterly

third you being fourth So, quarter because and March that in than the context in second the provided come that certainly cyclicality timeframe. year and half in the of the guidance our in quarter more about of semi-annual think the that the the the we of accounting can significant

Thanks. The picture, quarter for And last broad me. about been a but now. from one you've -- more public

but touched more little your in market, source just cetera, et and you, maybe come that visibility how kind so color the to transforms for ability gauge Thanks. to we do the pipelines going impact on of get it, forward? early You have lightly could your a you deals, build on think a how that

insofar independent that we certainly that with milestone interest comes visibility and Sure. that there's first other we And that. we because currency publicly-traded to we that so and the as the recognize we potential structure that was can we recognizing, there be mean, States a well. deals our of do going seeing that a seller greater market in certainly are interest seeing hand-in-hand have and people United as public, are the as it's now are have I we seen but within and insofar vehicle how one has the have traction

and we as continue a the marketplace. given greater two said So, it's hope quarter. that, And within together to things visibility build you those it been has to come us on only

it. to continue will momentum track behind and that hopefully So, have

quarter. the on congrats And Thanks.

Thank much you Rich. very

Thanks Rich.

Alex comes the [Operator Instructions] Our of Craig-Hallum Group. Capital question next line Furman from of

open. is line Your

wanted are stands look that how Great. you for a the of a is taking there quarter. that as you deal. at having my you acquisition on integration large over question. actually deals year, I been Thanks M&A pipeline, out, Can any like have really you're other very but ask the particularly guys seriously about a about that going? lot the you're And talk strong Boy Tommy large considering? your looks past on Congratulations very much executed M&A to seeing,

you? are a now. say And Thanks very I track, going How that's Boy the As it far integration goes, Sure. would for few Tommy obviously on months of ingestion as those as is on ahead probably with much been et that of Alex. very and staffing is copyrights and just so schedule, those and There cetera. services team are charge we results. ingesting in pleased far and an it's

a not are an due or on that there mentioned. As as but far in in size over large-size exclusivity But pipeline billion there of that a we right similar -- diligence in I deal $X.X deal evaluating presently. are now, sort of said, as a we are few confirmatory deals of -- being transactions exclusivity, I

little helpful. And markets? about much market. and emerging years? the Can a touched looking context are in today talk the part little factor business next call over of a Thanks think then And the really you about into that M&A then you that's bit a you're much I of Golnar. emerging level of of at, emerging markets in deals could few how pipeline Jim your that how the that and Okay, bit

the and the we a from emerging see flow obviously, that course next to presently, coming X% growing do on are that is from potential and and in the those significant of is our pipeline obviously, markets that about emerging not X% see revenue number. are So, markets our there, contributing deal we it currently executing great But we few do some the years. over substantive

much. very Okay, helpful. Thank that's really you

the for turn to closing this time, back call remarks. I like over Khosrowshahi to At Golnar you. Thank

Thanks updated again. for so thanks continuing you and forward to and to joining today you us we Thank to much. look keep everyone

call. you This conference for Thank participating You concludes may today's disconnect. now