IDW Media Holdings, Inc. (AMEX:IDW) Q4 2022 Earnings Call Transcript

Edward Reilly: Yes. Absolutely. Just wondering if you can maybe silo the 10 entertainment projects between options and greenlit those categories in the grid.

Allan Grafman: So I’m sad to say that at this time, we have optioned a number of projects, which we’ve spoken about publicly. At this time, at this occasion today, none of those have been put into production. There is one small, which I believe we’ve announced, Brooke can jump in. There is a small production called Essex County, a book. Has that been announced?

Brooke Feinstein: Yes. That has been announced. We are not really involved in the production. We are just getting an executive producing fee on top of that, and that is being produced in Canada, the Canadian broadcast.

Allan Grafman: So thank you, Brooke. So we and that’s a small production. So the positive is we control the IP, someone felt important enough to option and produce it. It could lead to great things. But at this time, it’s modest.

Edward Reilly: Okay. Got you. And then any indication about renewal for your Surfside Girls Season 2?

Allan Grafman: So Surfside Girls at Apple has not been renewed in its current form. Its current form for all our listeners was live action, tween-oriented and it has not been renewed and furthermore, we’re in conversations, and we have conversations. We’re in discussions about the future of Surfside Girls, and we’ll share more when we can.

Edward Reilly: Okay. Got you. And then you mentioned in a recent radio review that you expect to release 100 to 200 new titles during the year. Just wondering how this range of new titles compares to the number of new titles released this year.

Allan Grafman: I’m sorry. Could you are you speaking about the Publishing group?

Edward Reilly: Yes, Yes.

Allan Grafman: So the Publishing group has a significant increase in what we have planned. We have reviewed that. Our expectation is that we will be — we are working towards being more successful by every metric, but of course, it’s early in the fiscal year

Edward Reilly: Okay. And last one for me in the fourth quarter, it looks like SG&A was up quite a bit. Brooke, just wondering what’s driving that,

Brooke Feinstein: Yes. So that’s an easy one. We had the CEO severance in August, all that was booked, and it will be paid out cash wise over the next two years.

Edward Reilly: Okay. Great. Thank you, guys.

Operator: The next question comes from David March with Singular Research.

David March: Congrats on the quarter. First, just to follow up on that last question. Could you – Brooke, could you quantify the non-recurring SG&A?

Brooke Feinstein: I guess I could. It’s about $700,000.

David March: Okay. That’s helpful. And then as we start ’23; I guess one question on the Entertainment side. Is there any residual revenue opportunity around Locke & Key hitting any part of the fiscal year this year? Or was all of that revenue realized in Q4?

Brooke Feinstein: Yes. So all of the revenue related to the prior seasons was all in this fiscal year. However, there are other opportunities that the Entertainment team is currently exploring. So that’s kind of open.

David March: Okay. That’s helpful. And then, I guess, just on the 10 projects, Allan, obviously, too early to pinpoint specific titles. But could you give us a sense generally speaking around genre that these titles fall in so that we have some idea of what to expect going forward?