RE:RE:RE:RE:RE:RE:Analyst cutsAlphaseeker1973 wrote: Love the personal attack without addressing the many issues I have laid out. How do you explain the increase in SG&A from $80mm to $104mm with an increase in EBITDA of $5mm (or $10mm adjusted)?? Getting back 20 or 30 cents for every dollar invested?? How do explain the salaries which have risen from $47mm in 2019 when the generated $78mm in EBITDA to $80mm in 2022 where they generated $89mm?? Investing $1 in payroll and getting back 30 cents?? The increase in SG&A has been so poorly explained by the beginner CEO and CFO that markets have more questions than answers regarding the leverage and their ability to lower it. Talk all you want about great deals, blah, blah, blah...but if those deals cost more than they generate in EBITDA then it is bad for shareholders. That is what we are dealing with here...and time is not on our side. They have serious leverage issues that they are not dealing with and it is killing the equity holders.
Page 88 answers your questions:
https://filecache.investorroom.com/mr5ircnw_wildbrain/851/WildBrain%20Investor%20Day%20October%202021.pdf
CP doesn't kick in until 1 or 2 years after launching an IP. You have to lay out money for preparation of launching products. Peanuts was with apple since 2018 but its CP was not growing until recently (2021-2022). Same thing will happen to Sonic. It will launch at the end of this year and CP will kick in next year. Strawberry shortcake is the same. But in the mean time, a lot of money will be spend on prep works and preparation to launch the products. It's not a great model. I have to admit that. However, the reward is huge when you get a hit on great IP like Peanuts, Sonic or SS.