BEVERLY HILLS, CA--(Marketwired - August 16, 2016) - Genius Brands (GNUS)recently released a letter to shareholders from Chairman & CEO Andy Heyward. The complete letter follows:
"The most important investment you can make
is an investment in yourself."
At Genius Brands International, we've taken these simple words from Warren Buffett to heart and the results are beginning to show. Today we released our 10Q filing for the 2nd quarter of 2016. We are on track to finish the year with material growth in revenues, asset creation, licensees, channel subscribers, and advertising revenue to our growing channel with Comcast currently in 21 million homes, KID GENIUS.
Here are some specific Q2, 2016 financial highlights I would like to share.
This is a milestone agreement for Genius Brands on many levels. Since we sold neither stock nor equity, there is no dilution. It ensures we will have access to the value of the Netflix contract (which is payable on and in the months after delivery), and Genius will have no need for raising funds to produce the series. It also speaks to 3rd party validation of GBI's creditworthiness, by an active and well respected lender in the entertainment credit community.
Despite the continuing investment in Genius' seven core kids brands and catalogue, I anticipate us to be cash flow positive on an operational basis for 2016. In addition to the above, I would like to share some specific data points in the growth of our company.
As cited above, Warren Buffett has said in our series the Secret Millionaires Club, 'The most important investment you can make, is an investment in yourself'.
We believe this strategy will pay off handsomely, and to that end, I would like to share with you some of the benchmarks today of one of those 7 brands…SpacePOP, which we have been investing in.
To refresh everyone's memory, SpacePOP is a short format tween targeted animated series incorporating animated music videos, which debuted on YouTube, June 20.
It follows the adventures of the 5 Princesses of the Pentangle. Having been forced from their home planets by the evil Empress Geela in her quest to rid the galaxy of Music, Fashion and Beauty the Princesses form a band called SpacePOP, tour the galaxy sending messages of hope, freedom and happiness while they ultimately lead the resistance to Geela and restore order to the Galaxy. SpacePOP delivers positive messages to young girls that they can overcome adversity, be an individual while working as a team, and the benefits of friendship.
SpacePOP was designed to fill a void in the marketplace for tween girls from the decline of Mattel's Monster High. Monster High, was a hugely successful multi-billion dollar girls brand, with animated entertainment.
Since its launch on YouTube, June 20, SpacePOP has amassed approximately 4.5MM views and more than 12K subscribers, which is outpacing both Monster High (Mattel) and My Little Pony Equestria Girls (Hasbro) at similar times in their introductory periods
The significance of that is Monster High from Mattel and My Little Pony/Equestria Girls from Hasbro, are proven billion dollar brands, which we benchmarked against as our direct competition. The licensing program which was conceived a year ago, has today an unprecedented amount of consumer products and retailer support for a non-theatrical animated property with over 180 licensed products being manufactured by over 20 blue-chip licensing partners for SpacePOP's introduction this fall at retail. Coming into the marketplace this fall are:
We have secured extraordinary retailer support for a first-time animated property including three major national retailers on board for fall 2016:
We are cautiously optimistic, as we benchmark where our direct competitors have been.
The books come out next week.
The rest of the SpacePOP product rolls out for Christmas season, between October and December.