Q3 2023 Cinedigm Corp Earnings Call
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Good day, ladies and gentlemen, today, we are hosting a conference call to discuss and in time. The school 2023 third quarter results. My name is Bethany and I'll be your conference. Operator currently all participants are in a listen only mode. We will have a question and answer.
Session at the end of the call at which time participants can press star followed by the number one and identify themselves before to ask a question if anyone needs operator hub Press Star Zero. Please note that this call is being recorded your host for today is Gary Loffredo C O.
Oh and General Counsel. Please go ahead.
Okay.
Good afternoon, everyone and welcome to the Celadon fiscal 2023 third quarter results Conference call.
Before we begin I would like to point out that certain statements made on today's call contain forward looking statements. These statements are based on management's current expectations and are subject to risks uncertainties and assumptions.
The company's periodic reports that are filed with the SEC.
Scribed potential risks and uncertainties that could cause the company's business and financial results to differ materially from these forward looking statements.
All of the information discussed on this call is as of today February 14, and undertakes no duty to update update it.
In addition, certain financial information presented in this call represents non-GAAP financial measures and we encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics.
I'm, Gary <unk>, Chief operating Officer General Counsel of Senate arm.
With me today are Chris Mcgurk, Chairman and Chief Executive Officer.
John Canning, Chief Financial Officer, Yolanda, Mr Yu, Chief content Officer.
Eric <unk>, Chief strategy Officer, and President of <unk> networks.
Tony We adore, Chief Technology, and product officer, and Mark Lindsey Executive Vice President Finance and accounting.
All of whom will be available for questions. Following the prepared remarks.
I will now turn the call over to Chris Mcgurk to begin.
Thanks, Gary and welcome everyone and thanks for joining us on the call today.
Obviously, we had a great quarter as our financial results exceeded our internal expectations and those of the analysts that follow us by an extremely wide margin on both the top and bottom lines with total revenues up 98%.
Net income up 1139% to $4 9 million and.
And EPS of <unk> <unk> per share.
And all of our key operating metrics grew dramatically once again this quarter across all of our business lines.
Rather than dwell on great performance, where the numbers clearly speak for themselves I would first like to start out by stating how proud I am of the Senate on team, which continues to deliver outstanding record results across all sectors of our business quarter after quarter.
I also thank our investors for standing with us and a challenging equity market.
While so many other companies in the streaming and entertainment business are struggling to figure out the best path forward.
As they try to reconcile years of record breaking spending on content and marketing and an overreliance on the paid subscription model.
<unk> continues to demonstrate our streaming content company can develop and execute a business plan that worked successfully and real time today.
Because of sound unreasonable business principles like diversification portfolio management.
Sensible content and marketing spending practice.
Part of our success is of course by virtue of our company not trying to be everything to everybody.
We've become experts in our sector of the screening business that is serving passionate fans across popular in specific enthusiast genres better than anybody else.
One example of this success is in our approach to heart a category that continues driving some of the most exciting success stories not only for our company, but in all of Hollywood.
Sydney is.
He is a truly unique position in the streaming industry, having built upon our strong momentum to wrap a profitable third quarter with triple digit growth in net income and adjusted EBITDA as we continue towards our goal of <unk>.
Sustained long term annual profitability and positive cash flow.
All units of our company contributed to our successful quarter.
Which speaks to the value of our differentiated revenue streams across content licensing a portfolio of channels, which are made up of a strategic mix of third party and owned and operated networks.
And they span <unk>.
Avon and fast.
Our library of 60000 films and TV episodes are resurging theatrical release business.
And our proprietary state of the art match point technology.
Diversification in our portfolio strategy is there.
Business 101 concept drilled into Nba's heads their first day in class.
Cinedigm is implementing that strategy to great success.
All of it within the streaming content business the fastest growing segment in the entertainment industry.
Many of our one channel one line of revenue heavy spending non diversified streaming competitors are struggling.
As I mentioned, our total revenue was up 98%, including our 11th straight quarter of record advertising revenue growth.
79% over the prior year quarter and up 258% on a two year basis.
We were at the <unk>.
AD supported streaming TV or fast train before many in the industry.
And with new senior sales executives added to our center demand solutions team, we remain very bullish on this part of our business we.
We also grew our subscription streaming revenue, 38% versus last year's third quarter.
And nearly tripled revenue from two years ago.
We now have one to 2 million subscribers across our portfolio of streaming brands up 28% from third quarter last year.
<unk>, which we acquired two years ago this month.
The fastest growing horror streaming service in the business.
With subscriptions, increasing 900% over that time.
In fact in the two weeks following our exclusive streaming release of instant Coke Classic slasher film Clarifier to screen box subscribers grew 144%.
And what can I say about purifier too.
It was a late 2022 theatrical box office phenomenon it performed.
Incredibly well on transactional Vod and streaming and consumer.
Product versions of the title are flying off the shelves.
The fact of the matter is the smart and talented bloody discussing team, which operate screen box deteriorates, our horror vertical work closely with our content team to identify a breakout film and our breakout creator and the incredible Damian Leone that was very much worth investing here.
In turn we not only trusted their expertise, but we also leaned in to support the release with a cost effective viral marketing strategy.
Boy did it pay off.
We have much more to come on the horse.
With last week's limited theatrical release and upcoming screen box exclusive of the critically acclaimed town footage film the outwork, others, which flash sale and others said rightfully feels like this generation Blair Witch project.
Also we have the recently announced acquisition of Hollywood Dreams, and nightmares, the Robert England story, and many other films and series in the Horizon.
And we are also mirroring this strategy with other genres for which we have a proven expertise including family.
And Asia comps.
John will cover our financial results in more detail and Eric will delve into our rapidly increasing operating metrics and the continued early success of the important business initiatives that are initiatives that are key parts of our plan to continue our high growth, while achieving sustainable profitability on an annual ongoing basis.
Starting with next fiscal year.
These include centers, which we believe will become the Spotify of independent streaming video content.
Rytary match point technology platform are growing advertising unit and our expanding podcast business.
I also want to point out that as our business has scaled and players in the industry are taking notice of our operating and technological capabilities.
<unk> of our discussions with potential strategic partners for operating partnerships investments and M&A has rapidly expanded.
Look for more announcements in that regard in the coming months and in addition, our balance sheet remains in a very very strong position right now and we currently see no need to raise additional capital at this point.
With that let me turn it over to John for a more detailed review of our financial results.
Yes.
Thank you, Chris and good afternoon everybody.
Touch on a few third quarter highlights.
Update you on our outlook for the year, while we've previously laid out our aggressive year over year revenue growth sustainable profitability expectations annually, we continue to stand by our intention to achieve those objectives and are making great progress on all fronts.
Our key third quarter financial results for the quarter ended December 31, 2020 and cleared.
Consolidated revenue of $27 9 million compared to $14 1 million in the prior year quarter, an increase of 98%.
Streaming revenue increased 63% to $8 $9 million driven by another increase in record AD supported revenue up 79% and a 38% increase in subscription revenue over the prior year quarter, Eric will get into the drivers for these increases in his comments.
Overall content and entertainment revenue grew by 72% over the prior year quarter. This was driven by organic user growth New film performance as Chris mentioned, increasing market demand personal lines extensive connected TV AD inventory and the launch of new streaming channels versus the prior year.
Similar to last quarter in Q3, Cinedigm once again delivered total revenue and all component revenues, which exceed our own internal growth plans for the quarter.
<unk> EBITDA was.
This $1 million in the current year quarter compared to adjusted EBITDA of $1 3 million in the prior year quarter.
Given by the phenomenal success of tariff iron two across multiple revenue streams as Chris mentioned, our streaming content growth and further decreases in the scale of our digital cinema business as it nears its end of life.
Net income was $4 $9 million or <unk> <unk> per share compared to a net loss of.
One half of $1 million or zero cents per share in the prior year quarter. This was also driven by the success of tier fire tube and our streaming expansion as well as the recognition of other income under the cares Act and variable consideration attributable to the digital cinema business winding down.
Our balance sheet remains very strong as Chris said with just under $9 million in cash and our only debt and small revolving working capital facility. We just took last fall.
Provide additional dry powder for key content like the aforementioned careful here too.
As previously mentioned, we expect to generate substantial full year total revenue growth for the company. This fiscal year versus last so far this year total year to date revenue has increased by 42% over the same period last year. Despite a shrinking contribution from digital cinema looking closer in digital cinema results are.
<unk> from year to date revenue in both periods, our revenue growth of 60%, which exceeds our long term growth goals are.
Streaming business.
Our M&A, driven synergistic expectation topline and Bottomline and streamlining initiatives are already starting to produce benefits.
As both Chris and I have stated previously we've made significant progress toward our goal of achieving $7 5 million in annual cost savings through operating cost improvement.
Sourcing and application of our <unk> technology as we finalize the integration of the seven acquisitions, we made in the past two years, we remain confident that we will achieve our goal in the coming months with that I'll hand off to Eric.
Thanks, John and thanks to everyone for joining the call today.
First I'm going to discuss our topline streaming business results and then after that I'm going to discuss universe mission and strategy in detail.
So first total streaming minutes in the quarter rose to approximately $2, one 4 billion up 60% over the prior year quarter.
This was heavily driven by the continued expansion of our streaming services onto new connected TV platforms, like Samsung LG and others and the expansion of our overall subscriber base and user base as well as the impact from popular original and acquired premium library titles.
This consumption serve drove a substantial increase in audience <unk> total AD supported streaming audience, including web mobile social and connected TV increased to approximately $82 9 million average monthly viewers up 151% over the prior year quarter.
Total subscribers in the company's subscription video streaming services increased to approximately $122 million I'm, sorry, $1 2 million, representing an increase of 28% over the prior year quarter. This.
This was driven by a considerable growth in subscribers at the three flagship owned and operating streaming services screen box <unk> as well as the Dove channel.
Additionally, our podcast business continues to flourish with nearly 74 million cumulative downloads to date across 28 shows.
We have become a major player in the new and emerging scripted podcast category category with our show the Mayfair Watchers Society picked up by Apple as a top podcast for 2022.
And we had five shows on Spotify top 50 fiction charts.
We continue to scale this business with the forthcoming international language launches of key shows our partnership with the Georgia Ramiro Foundation on our new living dead property and much more to come.
We also made considerable progress on the technology side, having relaunched <unk> screen box onto version two of match point, our proprietary streaming platform we.
Also announced our partnership with <unk> during the quarter and I'm happy to announce the product is now officially live bringing thousands of high quality Hollywood recent theatrical releases and premium catalog titles. This universe.
In addition to utilizing match point as the means to expand our own distribution footprint. We continue to work on making match point available to select partners on a license basis.
We see tremendous interest and demand in this area from other content owners and channel operators, who are struggling with the challenges of effectively competing in this highly complex business.
We will have more to share on this in the months ahead.
And finally, we added multiple key hires in the quarter to bolster our Senate I'm advertising solutions unit I am happy to report, we're already seeing considerable benefits some lift in our programmatic and direct businesses.
Now let me take some time to talk about the company's strategy mission around San averse.
<unk> was born out of a simple idea to enable the discovery of the amazing diaspora of film and television shows from around the world.
With the top 10 streaming services accounting for just 3% of the movies and shows ever made the vast majority of movies and TV shows are simply inaccessible to most people.
Since I mentioned those statistics last quarter things have become decidedly worse at the major streamers major TV shows are being removed without warning heightened anticipated movies already completed or being shown at ulta.
Ultimately millions of consumers are becoming increasingly frustrated as movies and shows vantage with no notice. Meanwhile.
Meanwhile, the big streamers are increasingly trying to squeeze more profits by imposing usage restrictions and rapidly raising monthly subscription prices.
And with more cost cuts to come this trend is only going to get worse.
So do we want to entrust the world's collective film and television history, and the blood sweat and tears of filmmakers to this environment and these gatekeepers, how will consumers ensure access to content. They care about when day after day the shows become more and accessible.
What happens when the major streaming platforms decide that the transactional business is no longer in their strategic interest as we saw which happened with the music industry.
Vast swaths of our collective cinematic heritage's heritage will be inaccessible for viewing.
We feel there is clearly room in the world to provide an alternative ecosystem, where movies and TV series of all types and made by filmmakers from around the world are easily available protected and celebrated an ecosystem where films shows and their creators are not treated as commodities and where people are looked at as unique Audi.
<unk> and communities not just eyeballs.
We're not looking to assert the major streamers instead, we aspire to make <unk> a valuable part of the mix that sits alongside them.
As an important archive and discovery platform for film and television content.
Spot.
<unk> provides an interesting parallel with non major label music now driving 25% of music consumption on that service and rising rapidly. This.
This is because Spotify is very very good at helping each listener discover the perfect music or platelets for them and that is what we're going to do with film and television on center versus well.
We have a big mission in front of us, but we're excited about the challenge.
And we're confident that we possess the technology to achieve this goal through our end to end match point distribution platform.
Through the extensive use of AI and machine learning match point has been designed to operate at significant scale a scale that few others in the video streaming industry can compete with <unk>.
Match point allows us to easily ingest and deliver tens of thousand movie titles and TV shows very efficiently and an extremely low cost.
To put this in perspective in January 2023, just last month, we delivered over 9000 titles, comprising 50000 assets into the streaming ecosystem with our automation platform.
So in context, we delivered about two three times the total number of movies on Netflix or seven two times the number of movies on Hulu in one month.
This is a level of operational scale and efficiency simply unheard of in the streaming industry and provides us a massive technological moat as we look to add hundreds of thousands of titles in the coming years.
Despite <unk> being in its infancy, you can see those advantages already bearing fruit bearing fruit.
First we have dramatically expanded our content library now totaling close to 60000 movies and shows.
Bucking the industry trends, we're focused on rapidly making all of these titles available to consumers and are adding thousands of titles per months. This universe and its sister streaming services and plan to add four cane uncut versions of films for subscribers in the coming months.
Speaking on the sister streaming services for a minute.
We continue to focus on several key content verticals, where we super serve audiences.
Versus the Sun. These are the Jupiter size audience that that we believe could each become major businesses in and of themselves.
The same way anime streaming service crunchy role is $1 billion business for Sony.
Our horror service screen box has become one of those pillars for us. Thanks to original programming like terrified to fan favorite documentary Penny Wise, a story of it the psychedelic festival favorite all jacked up until worms, the Belgian French survival horror movie deep fear among dozens of others. In addition, with the outward or living with Chucky.
Robo Doctor, Robert England story, and so much more on the way, we're very excited about the future and we're not just in theaters on transactional and through screen box, but across bloody cuttings editorial content, our podcast network consumer products and beyond.
This philosophy of curation and our 360 degree approach to serving enthusiast fan basis is being brought to our other channel brands and verticals, including indie film with <unk>.
Family with the Dove channel anime with retro crush and Asian content with Asian Crush, we see and we also see an opportunity to establish ourselves and super serve other key verticals such as the African American vertical LGBTQ and others.
We're focused on pursuing and establishing partnerships with key brands and each of these areas.
So to sum it up.
Our strategy of both Super serving enthusiastic fan basis, while also building the leading destination for the world's content are extremely compatible and we believe not only to be great businesses, but an important mission that we can all be proud to be part of.
With that let me turn things over the operator to take your questions.
Thank you, ladies and gentlemen, I would like to remind everyone that to ask a question. Please press Star then the number one on your telephone keypad.
Pause here for just a moment to compile the Q&A roster.
Our first question comes from the line of Dan <unk>.
With benchmark. Please go ahead.
Great. Thanks, Good afternoon, obviously, congratulations guys on a terrifyingly good quarter.
I have one first just on that maybe for Chris <unk>, Eric Hoover, both do you want to take this.
Obviously, the film was a tremendous success and Im sure you guys are working on clarifier, three and whatever comes next.
You have all of the Buzz you forgot some new films in the pipe how do you go beyond that to sort of capitalize on the momentum. There is it self contained into harder channel and you take them. Barney can you cross pollinate just help us think through how you take what happens.
Kind of parlay that into sort of broader based success across our other genres.
Well just first thing this is Chris Thanks, Dan for the question.
Just in the horror genre itself.
The floodgates have opened in terms of the creative community now coming to us having seen how we.
It took a little $250000 moving and turned it into a top 10 theatrical.
Blowout title.
Physical DVD and <unk> and of course on screen box. So we've got a wealth of opportunities that we're looking at in terms of new content to continue to.
Blow out that business going forward and there are also some acquisition opportunities in this space as well that we're considering.
Sort of round out.
R R.
Business.
Build it up in scale.
And serve all audiences not just like a tariff higher slasher audience, but maybe more.
Adult oriented.
I mean older skewing.
In that space.
What's called elevated horror so we're doing that in the horror space and we learned a lot through the release of.
Terrify or in terms of.
We could identify properties that had great potential.
And then market them in.
An incredibly cost effective way virally.
And we think we have the very same capability.
In the family.
Vertical that we have great capabilities and experience in.
And the same thing with Asian content an enemy.
And we are evaluating content acquisition opportunities and also some M&A.
In those areas as well to build up our bulk buildup or.
Content.
And be able to take advantage of the.
The machines that we built in each one of those arenas.
We're very confident that we can keep the momentum going.
<unk> and we're very very confident that we're going to find a clarifier on the family business the anime business in the Asian business. So.
With an ultimate goal of increasing our subscribers in viewers on our channels, because that's where the sustainable profits come from.
From our acquisition opportunities are content acquisition opportunities in those verticals.
Got it that's helpful. And then just kind of thinking I know this is really difficult to kind of tease out.
Terrified to from the quarter.
Especially since you certainly deserve the credit and screening by I'm, just wondering how youre thinking about sort of ex clarifier. The fundamental momentum if we could get some more color on that.
<unk>.
Sort of qualifications around that point.
Some of the other things that are going on.
If you were to look sort of under the hood at sort of the other segments or genres, how would we be able to sort of point to the improvements that we're continuing to see from the momentum you've built there.
Beyond what you just said.
Chris are we looking to kind of round out.
The family as we get closer to a much broader sense.
Diverse launch.
Yes, I think.
First I'll make the point that even if we took terrify or two out of our results for the quarter. We still would have had a record quarter in streaming and in our content distribution business.
So this quarter was about much more than <unk> I think another thing that I think it is important that you recognize we released tariffs higher on October 6th I belief around that time.
We got a huge increase of subscribers to screen box and now its middle of February and we've held all those subscribers.
Which we think is great news because again.
Replicable.
Profit each month year end and year out hopefully going forward. So I think if you just look for our activity in the genres that I spoke about going forward.
Right now we are evaluating a family film.
For theatrical release.
That we think could breakout in theatrical and we've got a couple of ideas in the Asia and EMEA Arena.
So I think if you look for our content acquisition opportunity in those other other arenas as a sign that things are moving forward and obviously the results following that but I want to stress, we don't need a tariff higher every quarter to continue to show great growth and hit our goal of sustainable profitability.
Yeah got it that's really helpful and maybe Eric you called out.
Bolstering the AD Department.
Obviously, the market's trying to find that general putting right now.
We've heard mixed bag.
The publishers have called out sort of stabilized weakness, but your results have been pretty strong and pretty consistent and you've not generally yes. There are market pressures, but you can seemingly a little bit more immune or less prone to some of those so I'm just curious.
You could expound a little bit upon sort of you're at or expansion.
Where you are targeting and how youre sort of thinking about direct versus programmatic.
Expansion this year.
Sure so.
Just speaking generally on the broader AD market I think.
If we kind of look at it and take the tenor and tone of conversations that I've been involved with in my team has been involved with.
Thank you.
I think people probably overreacted at the end of this quarter.
Broadly in the market and everyone kind of hit pause in December we didn't really see much impact of that.
But the big players well above us who're.
$1 billion entities.
Small small amounts of downward pressure impacted them greatly we're a much smaller and nimble player we can grow by gaining market share.
By launching new channels and those will have a very material impact on growth.
So.
We're just at the beginning of our growth journey.
The broader marketplace, while it has some impact on the existing business.
We are bucking that trend early this year so far.
<unk>.
Just to give one anecdotal data point for this month.
We're probably outpace double digit outpacing the market.
And growth so I'm not I'm not concerned about our ability to maintain.
High growth rates, just given all the levers we have to pull there that probably are not available to our much larger peers.
Okay.
Thank you.
Our next question comes from the line of Brian Ken Slinger with Alliance Global Partners. Please go ahead.
Great. Thanks, so much for taking my questions and great results, especially with tariff higher too.
I wanted to see if you could.
A breakdown at all content and entertainment.
Sometimes we get to see distribution versus OTT streaming and digital and then while certainly one hit is not what you need.
<unk> made clear to drive quarterly results can you help us understand the contribution from ticket sales, which are arent as recurring as other pieces of terrify or two so that we can go forward think about the business.
This is Chris can you hear me.
Yes.
No.
We had a policy that for any specific title, we're not going to.
Reveal elements of.
Of the revenue and profits that we got we have participants and everything and it's just not.
Standard practice to do that but generally for an independent film in general in the industry.
Youll get about 40% of the box office in rentals.
So, there's a little bit lower than the bigger wide release Phil.
So you can just use that as a guide going forward.
Okay, and how about some quarters you guys have given distribution.
On distribution versus OTT streaming and digital can you share any details about the breakdown of that I didn't get a chance to go through the entire Q I know just I think youre correct.
You'll find that in the Q correct Jon.
Yes, that's all in there.
Okay.
Okay.
And then can you talk about even.
<unk> been cleared.
The outward or is going to be headed to streaming.
What are the factors.
<unk>.
Indicate whether you take a movie to wide release.
Versus keeping it as a limited releases at certain performance in those specific theaters, just maybe kind of wondering if atwater has had the chance to go to a more wide release.
While the outliers went out I think like 110 screens that did really well this weekend.
But we just announced today that we're going exclusive on screen box I believe this Friday.
It will stay in theaters.
But we're not planning on expanding it and there are a lot of reasons for that but I think.
First and foremost with terrify are we really kind of had a franchise.
We didn't know quite how it was going to perform theatrically, but there had been a tariff higher one which should become a real cult film that had a big following online and everything. So that's why we took it out originally I think of 550 screens.
Again that was a movie that cost $250000.
We spent.
Probably less than 100000 viral marketing.
And then.
With the outliers.
Those produced for $15000.
Found footage Phil.
And it didn't have sort of a built in audience that we knew we had for clarifier.
So we thought we would do is take it out on a lesser number of screens.
Probably not expand because you've got big titles, like <unk> and others coming into the market.
And take it quickly to screen box. After we created a great deal of awareness and buzz.
Online and on Twitter, and Tic Toc and everything.
Based on the fact that it's really kind of extraordinary breakthrough experimental film and Thats exactly whats happened.
So we also looked at the impact that purifier had on screen box subscribers.
And we think that that will be our main goal here with the waters.
<unk>.
So that's kind of that was kind of our thinking through the whole thing.
So youll see a mix going forward.
Yes, youll see a mix of release patterns going forward based on factors like that.
And.
It brings me I had a question.
Speak up tariff prior to any impact on subscriptions.
It's important.
I'm not sure if its held maybe you can talk about.
The churn or lack thereof of those that have come to screen box.
Become subscribers probably to see the movie again.
How good stick rate then has there been churn have they.
Stayed with the subscription maybe talk about yes.
Yes, as I said to Dan there's been minimal churn.
And if Eric wants to expand on that.
Stuck.
And we've got a great lineup, we think beyond the outward.
As Eric described of new titles to continue to refresh the channel. So we feel really good about the stick ability is of the subscribers have come on board and we hope to we have to continue to grow our subscriber base going forward. Eric is there anything you want to kind of.
Yes.
No.
And any of these.
Types of any any type of service, where theres a high in demand piece of content.
Youre always going to have people that sign up.
To watch the program and we will cancel that's the nature of the industry, but what we really look at our the rates that we find.
Acceptable.
That kind of practice and terrify or just because of the high volume of original movies, we had very close to the two tariffs. Following <unk> released we had very very strong take rates that exceeded our expectation retention rates that exceeded our.
<unk>.
And the net result was.
A very very.
Six digit.
Growth in subscribers on a service that when we acquired it.
Hello.
Low five figures and subscribers.
That is a pretty.
<unk> result that has really set screen box.
And the horror group as really being sort of our first breakout hit vertical and I think it's provided a very strong template. We obviously we will adjust this.
Going forward to optimize it but we were very pleased with how many subscribers stuck around.
Lastly, I'd be remiss in not commenting on Tim equipment, although it is not core.
And I know, we've been talking about it for a while winding down it provided quite a lift in the December quarter. How do we think about that and is there any visibility into the next few quarters on that business.
It will be done with it at the end of the fiscal year as we've said before there shouldnt be any appreciable.
Contribution after that point, but beyond that.
I don't think it really.
Impacted our comparability year over year, because I think we did.
Significantly more last year and the digital cinema business can you share.
So I think thats all.
I want to say about it at this point, but we're going to be very happy when.
We unhinge the last of that business next quarter.
And then we will finally be screaming.
Streaming content and technology pure play.
Which has been just going through the roof now for three years as you know.
Thank you.
Next question comes from the line of Terry Hackett with Hackett management. Please go ahead.
Gentlemen, good afternoon, and it is a good afternoon, Gary Chris Eric Tony Great job.
Just to comment that.
I don't know if everybody understands what a great comeback story. This is from four years ago, some very very difficult days for.
For you guys to say, Hey, we've got a pivot and we're going to pivot and become an aggregator and then to effectuate on that.
A great great story in and along the way cleaning up that balance sheet.
No.
Well that is all I'm going to say and keep it going.
Okay.
Well. Thank you. Thank you very much Terry and thanks for hanging in there with us over the last few years.
Thank.
We all feel that.
As good as it's been for the last three years and what a great comeback could spin and we built a business that's working now.
The best is yet to come.
Yeah.
Thank you.
Since there are no further questions I would like to turn the conference back over to Chris Mcgurk.
Closing remark.
Thanks, operator.
Thank you everyone for joining us today and for your interest in Trinidad.
Please follow up with drilling most debt with questions. You may have you can reach or at Investor relations at centered on Dot com.
We look forward to speaking with you again, when we report our fourth quarter results for the fiscal year 2023.
<unk>.
This now concludes our conference call you may now disconnect.