Kartoon Studios Inc (TOON) 2022 Q2 法說會逐字稿

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Genius Brands International Second Quarter 2022 Business Update Call. (Operator Instructions) I would now like to turn the call over to David Waldman, Investor Relations. David, please go ahead.

女士們，先生們，大家好！感謝您的收看。歡迎參加 Genius Brands International 2022 年第二季業務更新電話會議。 （接線員指示）現在，我想將電話轉給投資者關係部門的 David Waldman。 David，請開始。

Thank you. Good afternoon, everyone, and welcome to Genius Brands' Second Quarter 2022 Financial Results and Investor Update Conference Call. On the call with us this afternoon is Andy Heyward, Chairman and CEO; Bob Denton, Chief Financial Officer; and Michael Hirsh, CEO of WOW!. The company issued a press release this morning. If you have not received a copy, you can view it on the company's website at gnusbrands.com.

謝謝。大家下午好，歡迎參加 Genius Brands 2022 年第二季財務業績及投資人更新電話會議。今天下午與我們一起參加電話會議的嘉賓包括董事長兼首席執行官 Andy Heyward、首席財務官 Bob Denton 以及 WOW! 首席執行官 Michael Hirsh。公司今天上午發布了一份新聞稿。如果您尚未收到，請造訪公司網站 gnusbrands.com 查看。

Before I turn the call over to Genius Brands' CEO, Andy Heyward, I would like to remind you that this call, certain statements constitute forward-looking statements within the meaning of the federal securities laws. Words such as may, might, will, should, believe, expect, anticipate, estimate, continue, predict, forecast, project, plan, intend or similar expressions or statements regarding intent, belief or current expectations are forward-looking statements. While the company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this call.

在我將電話會議轉交給 Genius Brands 執行長 Andy Heyward 之前，我想提醒您，本次電話會議中的某些陳述構成聯邦證券法所定義的前瞻性陳述。諸如「可能」、「或許」、「將會」、「應該」、「相信」、「預期」、「預期」、「估計」、「繼續」、「預測」、「預測」、「計畫」、「打算」等字眼，或類似的關於意圖、信念或當前預期的表述或陳述均屬於前瞻性陳述。儘管本公司認為這些前瞻性陳述合理，但不應過度依賴任何此類前瞻性陳述，這些陳述基於我們在本次電話會議召開之日掌握的資訊。

These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including risk factors set forth in the Risk Factors section of the company's most recent annual report on Form 10-K and the company's subsequent filings with the Securities and Exchange Commission. Thus, actual results could differ materially from those reported. The company expressly disclaims any obligations to update or alter statements, whether as a result of new information, future events or otherwise, except as required by law.

這些前瞻性陳述是基於目前的估計和假設，並受各種風險和不確定性的影響，包括公司最新10-K表格年度報告「風險因素」部分以及公司隨後向美國證券交易委員會提交的文件中所列的風險因素。因此，實際結果可能與報告結果有重大差異。本公司明確表示，除非法律另有規定，否則本公司不承擔因新資訊、未來事件或其他原因而更新或修改陳述的任何義務。

Following their prepared remarks, the company will field a number of investors have submitted in anticipation of the call. I'd now like to turn the call over to Genius Brands CEO, Andy Heyward. Please go ahead, Andy.

在各位準備好發言之後，公司將邀請多位已提交電話會議的投資人發言。現在，我想將電話會議交給 Genius Brands 執行長 Andy Heyward。 Andy，請開始。

Thank you, David, and good morning, everyone.

謝謝你，大衛，大家早安。

The second quarter was very strong for Genius Brands. We experienced significant top line growth with record revenues of $21 million, which we now expect to continue and accelerate. The assets currently now in-house and those being acquired and developed, we believe, will lead to recurring positive cash flow, more growth and sustained profitability.

Genius Brands 第二季業績強勁。我們的營收大幅成長，達到創紀錄的 2,100 萬美元，我們預計這一成長動能將持續並加速。我們相信，目前公司內部的資產以及正在收購和開發的資產將帶來持續的正現金流、更快的成長和持續的獲利能力。

During this last quarter, we've gone from a company with 100 employees to a company of over 900 employees, with offices in Los Angeles, New York, New Jersey, Toronto, Vancouver, Munich and London. We've grown our owned or controlled catalog of animated children's programs from 450 episodes to over 3,800 episodes and now have over 22,000 animated children's episodes under license to the Kartoon Channel! system. We have grown our Kartoon Channel! distribution footprint from just the U.S. to now being seen in over 60 territories worldwide via satellite, cable and terrestrial as well as streaming in Europe, the Middle East, Africa, Latin America and Asia.

在上個季度，我們從一家擁有 100 名員工的公司發展成為一家擁有 900 多名員工的公司，在洛杉磯、紐約、新澤西、多倫多、溫哥華、慕尼黑和倫敦設有辦事處。我們擁有或控制的兒童動畫節目庫已從 450 集增加到 3800 多集，目前已授權 Kartoon Channel! 系統播放超過 22000 集兒童動畫劇集。我們的 Kartoon Channel! 發行範圍已從僅覆蓋美國，如今已透過衛星、有線和地面電視以及串流媒體在全球 60 多個地區播出，覆蓋歐洲、中東、非洲、拉丁美洲和亞洲。

We've gone from a company producing 26 episodes of content at this time last year to producing over 200 half-hour episodes with over $135 million of production and a robust pipeline with significant committed contracts going forward for the next 3 years and beyond. Our programs are seen not only on our growing Kartoon Channel!, but are additionally licensed to Netflix, Amazon, YouTube, Peacock, Paramount+, HBO Max and terrestrial and satellite broadcasters worldwide.

我們從去年同期製作 26 集內容的公司發展到如今製作超過 200 集半小時劇集，製作成本超過 1.35 億美元，擁有強大的資源儲備，並簽訂了未來 3 年及以後的重要合約。我們的節目不僅在我們不斷發展的 Kartoon Channel! 上播出，還授權給 Netflix、Amazon、YouTube、Peacock、Paramount+、HBO Max 以及世界各地的地面和衛星廣播公司。

We completed the transformational acquisition of Wow Unlimited Media, signed a 20-year deal with Marvel Studios and The Walt Disney Company to license Stan Lee for use in feature films, television productions and Disney theme parks and experiences, and we are in additional and material conversations with The Walt Disney Company on separate opportunities.

我們完成了對 Wow Unlimited Media 的轉型收購，與漫威影業和華特迪士尼公司簽署了為期 20 年的協議，授權斯坦·李在長片、電視製作和迪士尼主題公園及體驗中使用其作品，並且我們正在與華特迪士尼公司就其他合作機會進行進一步的實質性對話。

Also during this quarter, we partnered with world-renowned chef restaurateur and philanthropist, Wolfgang Puck, to create an animated children's series and healthy food products licensed from and based on the series entitled Wolfgang Puck's Secret Chef Academy. Wolfgang Puck Worldwide now generates approximately $650 million in worldwide revenues, and we see an opportunity from the show to partner on similar kitchen and healthy food products now designed for children.

本季度，我們也與世界知名廚師、餐廳老闆兼慈善家沃爾夫岡·帕克 (Wolfgang Puck) 合作，打造了一部基於該系列授權的兒童動畫劇集《沃爾夫岡·帕克的秘密廚師學院》(Wolfgang Puck's Secret Chef Academy)，並推出了一系列健康食品。沃夫岡·帕克全球 (Wolfgang Puck Worldwide) 目前全球收入約 6.5 億美元，我們認為該劇集蘊含著合作開發類似兒童廚房和健康食品產品的商機。

In addition, we are pleased to report the highest revenues in the history of the company: our Q2 revenues of $22.1 million, which is nearly a tenfold increase over the same quarter last year. We believe the continued and accelerating revenue growth is a precursor to earnings, which we are confident will be forthcoming. Our key units and businesses are growing, increasing market share and margin. Meanwhile, the company continues to maintain high levels of cash.

此外，我們欣然宣佈公司第二季營收創歷史新高：達2,210萬美元，較去年同期成長近十倍。我們相信，持續加速的營收成長是獲利的先兆，我們對此充滿信心。我們的關鍵部門和業務正在成長，市場佔有率和利潤率不斷提升。同時，公司繼續保持高額現金流。

The nonexclusive deal we signed to license the name and likeness of Stan Lee to Marvel Studios for movies and television and the exclusive license to The Walt Disney theme parks and attractions to create Stan Lee merchandise and consumer products to be sold in the Walt Disney theme parks, cruise ships and other entertainment venues for the next 20 years, all of which Genius Brands will enjoy royalty income from.

我們簽署了非獨家協議，授權漫威影業將史丹李的名字和肖像用於電影和電視，並獨家授權華特迪士尼主題樂園和景點在未來 20 年內製作史丹李商品和消費品，在華特迪士尼主題樂園、遊輪和其他娛樂場所銷售，Genius Brands 將從中獲得特許權使用費收入。

While the company received a $2.5 million license fee, the bulk of the revenues that Genius will get as a result of this agreement we expect to come from royalties that will be generated from Disney's creation and sale of Stan Lee merchandise in The Walt Disney theme parks and theme park experiences for the duration of the 20-year agreement. We also anticipate additional benefits from the ongoing and enriched exposure of the Stan Lee brand driving retail sales of our own upcoming Stan Lee content and merchandise programs separately.

雖然公司獲得了250萬美元的授權費，但我們預計Genius透過此協議獲得的大部分收入將來自於迪士尼在華特迪士尼主題樂園和主題樂園體驗中創作和銷售史丹李商品所產生的版稅，這些商品將在20年的協議期內產生。我們也預計，史丹李品牌的持續和豐富的曝光度將分別推動我們即將推出的史丹李內容和商品項目的零售額，從而帶來額外的收益。

We consider the rights we own and control in Stan Lee Universe to be extremely valuable, and we will be announcing significant news prior to Stan Lee's 100th birthday on December 28 this year. As a close friend of Stan's for many years, I can share that this was his personal desire, and we believe it's a privilege to act as a responsible steward of the Stan Lee brand on his behalf.

我們認為我們在史丹李宇宙中擁有和控制的權利極其寶貴，並將在今年12月28日史丹李百歲誕辰之前宣布這一重大消息。身為史丹多年的摯友，我可以告訴大家，這是他的個人願望，我們很榮幸能夠代表他，以負責任的方式管理史丹李品牌。

During the past quarter, we continued to make great strides in many segments of our business, which will have a significant impact on the future of the company as well as our financial growth. Also during the quarter, Kartoon Channel!, our flagship streaming platform for children, continues to experience monthly growth in downloads, viewership, advertisers, distribution and, most importantly, revenues. We are investing aggressively in Kartoon Channel! to secure the best content, the best features, the most robust distribution and the overall most attractive user experience.

在過去的一個季度，我們在多個業務領域繼續取得長足進步，這將對公司的未來發展以及我們的財務成長產生重大影響。此外，在本季度，我們面向兒童的旗艦串流平台 Kartoon Channel! 的下載量、觀看人數、廣告商數量、發行量以及最重要的收入均持續保持月度增長。我們正在大力投資 Kartoon Channel!，以確保提供最優質的內容、最出色的功能、最強勁的發行管道以及最具吸引力的整體用戶體驗。

We believe Kartoon Channel! will be a key driver and tentpole of Genius Brands' revenues and earnings for years to come. Kartoon Channel! is now being carried on virtually every major platform in the United States, including Apple iOS, Apple TV, Android TV, Android mobile, Amazon Prime, Amazon Fire, Roku, Tubi, Comcast, Cox, Samsung Smart TVs, LG Smart TVs, Pluto TV and the increasingly important YouTube platform. In fact, if you happen to be flying on JetBlue, you'll now see Kartoon Channel! carried there as well Kartoon Channel! is now firmly established as the premier viewing destination for kids and families with viewer rankings regularly placing us ahead of our major competitors in both the Apple and the Google app stores.

我們相信，Kartoon Channel! 將成為未來幾年 Genius Brands 收入和盈利的關鍵驅動力和支柱。 Kartoon Channel! 目前已在美國幾乎所有主流平台上播出，包括 Apple iOS、Apple TV、Android TV、Android 手機、Amazon Prime、Amazon Fire、Roku、Tubi、Comcast、Cox、三星智慧電視、LG 智慧電視、Pluto TV 以及日益重要的 YouTube 平台。事實上，如果您剛好搭乘捷藍航空，現在也會在平台上看到 Kartoon Channel!。 Kartoon Channel! 現已牢固確立為兒童和家庭首選的觀看平台，其觀眾排名在 Apple 和 Google 應用商店中均領先於主要競爭對手。

Advertising revenues have continued their solid growth trajectory as we continue to sign up new advertisers and have invested to build out a premium ad sales team led by a proven industry leader, Cindy Kelly, who joined Genius Brands during the quarter and now oversees all advertiser sales.

廣告收入繼續保持穩健的成長軌跡，因為我們繼續簽約新的廣告商，並投資打造一支優質的廣告銷售團隊，該團隊由經驗豐富的行業領袖 Cindy Kelly 領導，Cindy Kelly 在本季度加入 Genius Brands，目前負責監督所有廣告商的銷售。

Concurrent with Kartoon Channel! as a free product supported by advertising, we launched in the second quarter our commercial-free streaming subscription product at $3.99 a month, the Kartoon Channel! Kidaverse. We expect subscription growth to become a critical component of our future revenue stream as it is for all content providers such as Netflix, Disney+ and HBO Max.

與Kartoon Channel!（廣告支援的免費產品）同步，我們在第二季推出了無廣告的串流訂閱產品－Kartoon Channel! Kidaverse，每月3.99美元。我們預計訂閱成長將成為我們未來收入來源的關鍵組成部分，就像Netflix、Disney+和HBO Max等所有內容提供者一樣。

However, whereas several of our competitors have seen declines, Genius subscriber statistics are growing. We're building both on the subscription distribution we have now in Amazon Prime as well as the subscription network we acquired with the Ameba Channel acquisition in January and their technology and superb management group.

然而，儘管我們的一些競爭對手的用戶數量有所下降，Genius 的用戶統計數據卻在成長。我們正在鞏固亞馬遜 Prime 現有的訂閱分銷管道，以及今年 1 月收購 Ameba Channel 後獲得的訂閱網絡，並藉助他們的技術和卓越的管理團隊。

As we continue to roll out the subscription-based Kartoon Channel! Kidaverse and its metaversal features, we believe Kidaverse will be a breakthrough first-of-its-kind offering for kids, including avatars, emojis, games, Kidaverse VR goggles, immersive content, NFTs for kids, collectible digital cards based on many of the channel's popular characters, including Stan Lee Universe; a digital currency for kids, which we refer to as KidaBuck$; child-safe messaging, which we refer to as Messies; podcasts; music and more.

隨著我們繼續推出基於訂閱的 Kartoon Channel! Kidaverse 及其元宇宙功能，我們相信 Kidaverse 將成為兒童的突破性首創產品，包括頭像、表情符號、遊戲、Kidaverse VR 護目鏡、沉浸式內容、兒童 NFT、基於該頻道許多人氣角色（包括 Stan Lee Universe）的可收藏數位卡；一種兒童貨幣，我們稱之為兒童播客卡；

The combination now of Kartoon Channel! as a free ad-supported service and Kartoon Channe!l Kidaverse, our enriched commercial-free service, enables us to capture those parents who want their kids to have a premium channel for free as well as those who prefer to have a children's channel without commercials, containing enriched features and are prepared to pay a monthly subscription fee. Having an ad-free and a subscription product grounded always on safe, positive programming for children is the essence of our channel strategy to grow and capture market share worldwide.

現在，Kartoon Channel! 是一項免費的廣告支援服務，而 Kartoon Channel!l Kidaverse 是我們豐富的無廣告服務，兩者強強聯手，讓我們能夠吸引那些希望孩子免費觀看付費頻道的家長，以及那些希望孩子觀看無廣告、內容豐富、願意支付月費的兒童頻道的家長。始終以安全、積極的兒童節目為基礎，提供無廣告和訂閱產品，是我們通路策略的核心，旨在拓展全球市場份額。

Okay, let's talk worldwide for a moment. The company made a strategic investment in Your Family Entertainment, the premier German children's entertainment company, trading on the Frankfurt Exchange. YFE not only has a 3,000-title catalog of animation but also an existing global distribution platform now in over 60 markets across Europe, Asia, the Middle East, Africa and Latin America. Under the leadership of Paul Robinson, who previously was Managing Director of Disney Channels Worldwide, this channel system is now being rebranded as Kartoon Channel! Worldwide and rolling out in virtually every major territory. We are now in more than 60 countries around the world and in various stages of discussion in additional markets with a group of important carriage deals currently pending.

好的，我們來談談全球業務。該公司對德國頂級兒童娛樂公司Your Family Entertainment進行了策略性投資，該公司在法蘭克福交易所上市。 YFE不僅擁有3000部動畫作品的目錄，還擁有一個涵蓋歐洲、亞洲、中東、非洲和拉丁美洲60多個市場的全球發行平台。在前迪士尼全球頻道董事總經理保羅羅賓遜的領導下，該頻道系統現已更名為Kartoon Channel! Worldwide，並在幾乎所有主要地區推出。目前，我們的業務已涵蓋全球60多個國家，並正與其他市場進行不同階段的洽談，目前有一批重要的轉播協議正在等待審批。

We've also witnessed growth in viewership of Kartoon Channel! on platforms such as Amazon Prime. We believe this trend will continue as we continuously add attractive new content, markets and distribution partners to our portfolio. In addition to our owned and produced shows like Rainbow Rangers and Stan Lee's Superhero Kindergarten, we continue to acquire timeless, top-performing content from around the world, including Peppa Pig, PAW Patrol Shorts, Scooby-Doo, Yu-Gi-Oh as well as Roblox and Minecraft-based gaming content. Strong, proven content with positive values that children will want to see will always be a component of our program strategy to increase market share, revenues and profits.

我們也見證了Kartoon Channel!在亞馬遜Prime等平台上的收視率成長。我們相信，隨著我們持續為產品組合增添有吸引力的新內容、市場和分銷合作夥伴，這一趨勢將持續下去。除了我們自有和製作的《彩虹戰隊》和《史丹李的超級英雄幼兒園》等節目外，我們還持續從世界各地收購經典的優秀內容，包括《小豬佩奇》、《汪汪隊立大功短片》、《史酷比》、《遊戲王》以及基於Roblox和《我的世界》的遊戲內容。打造優質、成熟、具有正面價值觀、孩子們樂於觀看的內容，將始終是我們提升市場佔有率、收入和利潤的專案策略的重要組成部分。

Separate from the rollout of Kartoon Channel! and Kartoon Channel! Kidaverse, the company acquired the Frederator channel as part of the acquisition of WOW!. The importance of the Frederator channel as part of Genius' overall distribution business can't be overstated. The Frederator channel is distributed exclusively on YouTube and it's a platform of over 3,000 producers, which makes up the largest animation platform on YouTube and currently generates an astonishing 1 billion views per month.

除了推出 Kartoon Channel! 和 Kartoon Channel! Kidaverse 之外，該公司還收購了 Frederator 頻道，這是收購 WOW! 的一部分。 Frederator 頻道作為 Genius 整體發行業務的一部分，其重要性不言而喻。 Frederator 頻道在 YouTube 上獨家發行，該平台擁有超過 3,000 名製作人，是 YouTube 上最大的動畫平台，目前每月的觀看次數高達 10 億次。

In itself, Frederator channel is already a profitable service. However, we expect to grow and harness it dramatically more so as we migrate top-performing YouTube programs from there to Kartoon Channel! and Kartoon Channel! Kidaverse, unlocking new value for the company and Frederator's producers. It's kind of like the biggest farm league of animation, which we are now bringing up regularly to the big leagues.

Frederator 頻道本身已經是一項獲利服務。然而，隨著我們將 YouTube 上表現最佳的節目遷移到 Kartoon Channel! 和 Kartoon Channel! Kidaverse，我們期望它能夠得到更大的發展和利用，為公司和 Frederator 的製作人釋放新的價值。它就像最大的動畫農場聯盟，我們現在定期將其帶入大型聯盟。

The combination of Genius Brands, WOW!, Frederator Channel, Ameba and Your Family Entertainment now provides Genius with one of the largest and most desirable children's content catalogs in the world as well as a fully integrated distribution system and consumer product infrastructure to maximize value. I can't emphasize this point enough as each of the catalogs has tremendous intrinsic value. Most importantly, animation is not only timeless but an asset that grows in value over time. One needs only to look at the Flintstones, Tom & Jerry and others that live on forever. Decades later, you still see branded consumer products on store shelves around the world. The more the animation is consumed, the more the value of the portfolio grows over time.

Genius Brands、WOW!、Frederator Channel、Ameba 和 Your Family Entertainment 的強強聯手，為 Genius 帶來了全球規模最大、最受歡迎的兒童內容目錄之一，以及一套完全整合的分銷系統和消費產品基礎設施，從而實現價值最大化。我再怎麼強調這一點也不為過，因為每個目錄都具有巨大的內在價值。最重要的是，動畫不僅是永恆的，而且是一種會隨著時間的推移而增值的資產。只要看看《摩登原始人》、《貓與老鼠》以及其他永垂不朽的動畫作品就知道了。幾十年後，你仍然能在世界各地的商店貨架上看到這些品牌的消費產品。動畫的消費量越大，其價值組合隨著時間的推移就越增值。

Now I want to turn the call over to Michael Hirsh, CEO of WOW!, to discuss possibly the most important event in the history of the company, the acquisition and integration of WOW! into Genius Brands. Michael, you're up.

現在我想把電話轉給WOW!的執行長邁克爾·赫什，討論公司歷史上可能是最重要的事件——WOW!被Genius Brands收購並整合。邁克爾，你上。

Thank you, Andy. The integration of Wow Unlimited Media, consisted of Frederator networks and studio and Mainframe Studios, into the Genius Brands family has been going extremely well. The transaction was expected to provide immediate and continuing financial benefits, along with strong revenues as a result of significant contracted bookings into 2023 and beyond.

謝謝你，安迪。 Wow Unlimited Media（由 Frederator 網路及工作室和 Mainframe 工作室組成）與 Genius Brands 家族的整合進展非常順利。預計此交易將帶來立竿見影且持續的財務效益，同時，由於 2023 年及以後的大量合約預訂，還將帶來強勁的收入。

Indeed, WOW! has had a banner year and continues to see revenues increasing at an accelerated pace. We are currently producing over 183 episodes of animated content with production budgets in excess of $100 million. The company operates at a profit on a cash basis, and we expect to see (inaudible) working with Genius to increase our margins and make a significant contribution to the overall Genius bottom line.

確實，WOW! 取得了輝煌的一年，收入持續快速成長。我們目前正在製作超過 183 集動畫內容，製作預算超過 1 億美元。公司以現金為基礎實現盈利，我們期待（聽不清楚）與 Genius 的合作能夠提升我們的利潤率，並為 Genius 的整體盈利做出重大貢獻。

As a result of the combination, Genius Brands now has an end-to-end animation ecosystem that has produced many profitable titles including CoComelon, the #1 children's series in the world today; as well as Barbie: It Takes Two, Octonauts: Above & Beyond and (inaudible). While many of these are work for hire, we are also now doing our own original content and currently have shows in production for YouTube, Netflix, Sony and elsewhere.

此次合併後，Genius Brands 現已擁有一個端到端的動畫生態系統，並已製作了許多盈利豐厚的作品，包括當今全球排名第一的兒童劇集《CoComelon》；以及《芭比：雙人成行》、《海底小縱隊：超越極限》和《（聽不清楚）》。雖然其中許多作品是受僱製作，但我們現在也在製作自己的原創內容，目前正在為 YouTube、Netflix、索尼等平台製作節目。

Our series, Team Zenko Go, with DreamWorks Animation just launched its second season on Netflix and our new series, Bee and PuppyCat, will launch on Netflix on September 6. Bee and PuppyCat has had tremendous support on Twitter with millions of views for our Netflix trailer as well as other social platforms from the show's enthusiastic fans. It represents a major success for the Frederator approach to developing a show, first on its YouTube platform and then upon success, migrating it to a more commercial platform that broadens the show's appeal.

我們與夢工廠動畫公司合作的影集《Team Zenko Go》第二季剛在 Netflix 上線，而我們的新影集《Bee and PuppyCat》也將於 9 月 6 日在 Netflix 上線。 《Bee and PuppyCat》在 Twitter 上獲得了巨大的支持，Netflix 預告片的觀看次數已達數百萬次，在其他社交平台上也收穫了劇集狂熱粉絲的熱烈追捧。這代表著 Frederator 劇集製作模式的巨大成功：先在 YouTube 平台上線，然後在取得成功後遷移到更商業化的平台，從而提升了劇集的吸引力。

The addition of captive in-house animation production for Genius Brands is expected to drive significant cost synergies, resulting in economies of scale, which we believe will drive increased shareholder value as new brands are produced and brought to market and eventually the Kartoon Channel! and through the Genius Brands licensing organization.

預計 Genius Brands 增加內部動畫製作將帶來顯著的成本協同效應，從而產生規模經濟，我們相信，隨著新品牌的生產和上市，並最終通過 Kartoon Channel！以及 Genius Brands 授權組織，這將推動股東價值的提升。

This transaction is a transformational event for Genius Brands as the company will continue to execute on its strategy to establish itself as a foremost producer, broadcaster and licenser of high-quality children's entertainment and children's consumer products on a global basis. There are very few asset classes with proven and enduring value as animated children's programming, and we are extraordinarily excited about what the future holds for this powerful combination.

此交易對 Genius Brands 而言意義非凡，公司將繼續執行其策略，致力於成為全球領先的優質兒童娛樂及兒童消費品製作、廣播和授權商。很少有資產類別像動畫兒童節目一樣擁有經得起時間考驗的持久價值，我們對這強強聯合的未來充滿期待。

I would now like to turn the call over to Bob Denton, CFO of Genius Brands, to discuss the company's financial results for the quarter. Bob?

現在我想將電話轉給 Genius Brands 的財務長 Bob Denton，討論公司本季的財務表現。 Bob？

Thanks, Michael. As Andy mentioned earlier, total revenues for the quarter ended June 30, 2022, were $22.1 million, largest quarterly revenues in the history of the company, an increase of $19.7 million or 843% from $2.3 million in the same quarter last year. These increases are primarily due to the addition of Ameba in January and the acquisition of WOW! at the beginning of the quarter.

謝謝，麥可。正如安迪先前所提到的，截至2022年6月30日的季度總收入為2,210萬美元，創下公司歷史上最高的季度收入，較去年同期的230萬美元增長1,970萬美元，增幅達843%。這些成長主要得益於1月份Ameba的加入以及本季初對WOW!的收購。

Expenses for the quarter increased primarily due to an increase in direct operating costs; an increase in general and administrative expenses, including the onetime charge professional fees associated with the acquisition of WOW! and its subsidiaries; an increase in incentive compensation expense, which is a noncash expense; and the inclusion of WOW!'s general and administrative expenses for the 3 months ended June 30, 2022.

本季費用增加的主要原因是直接營運成本增加；一般及行政費用增加，包括與收購 WOW！及其子公司相關的一次性收費專業費用；激勵薪酬費用增加，這是一項非現金費用；以及計入了截至 2022 年 6 月 30 日的 3 個月的 WOW！一般及行政費用。

The net loss attributable to Genius Brands for the quarter ended June 30, 2022, was $13.3 million or $0.04 per share compared to $7.4 million or $0.02 per share for the 3 months ended June 30, 2021. This increase is directly related to the increase in expenses noted above.

截至 2022 年 6 月 30 日的季度，Genius Brands 的淨虧損為 1,330 萬美元，即每股 0.04 美元，而截至 2021 年 6 月 30 日的三個月的淨虧損為 740 萬美元，即每股 0.02 美元。這一增長與上述費用的增加直接相關。

Turning to the balance sheet. As of June 30, 2022, we had current assets of $150.3 million, including cash, cash equivalents and marketable securities of $105.2 million, working capital of $63.6 million and total stockholders' equity of $143.1 million. We are closely managing our cash balances, which we consider the most important indicator for the company as we integrate and build our combined businesses and increase our assets, with the goal of increasing earnings and becoming cash positive.

再來看看資產負債表。截至2022年6月30日，我們的流動資產為1.503億美元，其中包括1.052億美元的現金、現金等價物及有價證券，6,360萬美元的營運資金，以及1.431億美元的股東權益總額。我們正在密切管理現金餘額，我們認為這是公司在整合和建構合併後業務並增加資產過程中最重要的指標，目標是提高獲利並實現現金流為正。

Our acquisition and investments are indications of our commitment to continue creating top-tier children's content, creating a global and enduring animation catalog and the expansion of our Kartoon Channel! distribution system. We believe that it is the best and smartest deployment of our capital and that in the long term, it will ultimately yield the most value for our shareholders.

我們的收購和投資彰顯了我們致力於繼續創作頂級兒童內容、打造全球持久的動畫作品庫以及擴展我們的Kartoon Channel!發行系統的決心。我們相信，這是我們最佳且最明智的資本配置，並且從長遠來看，最終將為股東創造最大價值。

I would now like to turn the call back over to Andy for some final comments. Andy?

現在我想把電話轉回給安迪，請他發表一些最後的評論。安迪？

Thank you, Bob. First, I want to thank all of our investors for participating in the call today and for your support over the years as we've transformed Genius into a powerhouse within the children's entertainment industry. We are growing across key units, increasing market share, building timeless assets and all signs point to that momentum continuing and accelerating.

謝謝你，鮑伯。首先，我要感謝所有投資人今天參加電話會議，感謝你們多年來的支持，正是你們讓我們將Genius打造成了兒童娛樂產業的巨頭。我們在各個關鍵部門都取得了成長，市場份額不斷擴大，打造了經久不衰的資產，所有跡像都表明，這種勢頭正在持續並加速。

We are now in year 2 since the launch of Kartoon Channel!, and as I said at the beginning, top line revenue growth this quarter of more than 800% to over $22 million broke all records. We will continue to make decisions to grow our asset base and reach sustainable and growing profitability. As we continue to build on the substantial progress, I look forward to speaking with everyone again and keeping you informed of initiatives, how we are building best programs for children, license products from those programs and the most effective distribution programs. But as they say, the best is yet to come.

Kartoon Channel! 上線至今已兩年，正如我一開始所說，本季營收成長超過 800%，超過 2,200 萬美元，創下歷史新高。我們將繼續做出決策，擴大資產規模，實現永續成長的獲利能力。隨著我們繼續鞏固已有的實質進展，我期待著再次與大家交流，並向大家通報各項舉措，包括我們如何打造最佳兒童節目、如何授權這些節目的產品，以及最有效的分銷方案。但正如人們所說，最好的還在後頭。

Last but not least, I am particularly excited about our upcoming series, Shaq's Garage, and the strong vehicle-based consumer products program that we anticipate will come from it. Shaq's Garage is a series we are very proud of because it has extraordinary entertainment, which we think will be a huge performer, but also it shows extremely positive value to kids in a diverse and responsible world. Shaquille O'Neal has been personally hands-on throughout, and he's very committed to the positive storytelling that the series will embrace, alongside the humor and hijinks. The pilot episode will enjoy a sneak peek on Kartoon Channel! effective immediately. It's up now and lasting for 48 hours. I encourage everyone to go see it, and not only see Shaq, but also his costar, Rob Gronkowski.

最後，同樣重要的是，我對我們即將推出的系列劇《沙奎爾的車庫》以及我們預期將由此產生的強大的汽車消費產品項目感到特別興奮。 《沙奎爾的車庫》是一部我們引以為傲的系列劇，因為它擁有非凡的娛樂性，我們相信它將會大獲成功，同時也展現了對孩子們在一個多元化和負責任的世界中極其積極的價值。沙奎爾·奧尼爾全程親自參與，他非常致力於這部劇集的積極敘事，以及幽默和搞笑元素。試播集將立即在Kartoon Channel!上搶先觀看。該劇集現已上線，為期48小時。我鼓勵大家去看，不僅能看到沙奎爾，還能看到他的搭檔羅布·格隆考斯基。

Now we want to take this opportunity to answer questions that were previously submitted to the company. David, I think you have the questions to...

現在，我們想藉此機會回答先前提交給公司的問題。大衛，我想你有一些問題…

Yes. Thank you, Andy. Sorry. In our conference call announcement press release, we suggested interested parties submit their questions in advance. We'd like to address those questions for you now. Some of them were duplicative, so we did our best to reconcile those where possible. If you have further questions after the call, please feel free to follow up with Investor Relations and we'll be sure to respond as quickly as possible.

是的，謝謝你，安迪。抱歉。在我們的電話會議公告新聞稿中，我們建議有意者提前提交問題。我們現在想為您解答這些問題。有些問題重複，所以我們盡力進行了整理。如果您在電話會議結束後還有其他問題，請隨時聯絡投資者關係部門，我們一定會盡快回覆。

Our first question from investors is the following, given the company's revenue growth, at what point do you expect to turn profitable?

投資人提出的第一個問題是：鑑於公司的收入成長，您預計什麼時候能夠獲利？

Good question. We're not prepared to give formal guidance right now. But as we continue to grow, we do expect to turn profitable in the not distant future and generate quite significant cash flow. In the meantime, we're carefully managing expenses, expect to generate significant cost synergies from the WOW! acquisition and the path to sustained and reliable and continuing earnings is from the build-out of our global animation catalog and our global distribution system. We're building Genius to become a dominant force in kids entertainment. And in order to do that, we must invest wisely to maximize long-term value for our shareholders.

問得好。我們目前還沒有準備好提供正式的業績指引。但隨著業務的持續成長，我們預計在不久的將來就能實現獲利，並產生相當可觀的現金流。同時，我們正在謹慎管理開支，預計收購WOW!將帶來顯著的成本協同效應，而實現持續、可靠和持續盈利的途徑則在於構建我們的全球動畫庫和全球發行系統。我們正在將Genius打造為兒童娛樂領域的主導力量。為了實現這一目標，我們必須明智地投資，以最大限度地提高股東的長期價值。

Thank you, Andy. Our next question is, how are you managing the rapid growth now to a company of over 900 people?

謝謝安迪。我們的下一個問題是，您如何管理公司目前快速發展到900多人的規模？

Good question. Our Board member, Tony Thomopoulos, has graciously agreed to now serve as Vice Chairman of the Genius Brands Board of Directors. Tony brings a distinguished career of experience coming from being President of ABC Entertainment and ABC Broadcast Group, Chairman of United Artists Pictures and President of Steven Spielberg's Amblin Television. Tony will not only lead our greenlight committee but will also focus on unifying the many pieces of the company now and working with all of the units to help ensure they stay on their growth and earnings targets.

問得好。我們的董事會成員托尼·托莫普洛斯欣然同意擔任 Genius Brands 董事會副主席。東尼擁有卓越的職業生涯經驗，曾擔任 ABC 娛樂公司和 ABC 廣播集團總裁、聯美影業董事長以及史蒂芬史匹柏執掌的安培林電視公司董事長。托尼不僅將領導我們的綠燈委員會，還將專注於整合公司各個部門，並與所有部門合作，確保它們保持成長和獲利目標。

We're very fortunate to indeed have his wisdom and experience. He's already instituted protocols and disciplines. He's been working with Bob Denton and Mike Jaffa to help ensure we hit our targets and good governance remains a top priority.

我們非常幸運，能夠擁有他的智慧和經驗。他已經制定了規程和紀律。他一直與鮑勃·登頓和麥克·雅法合作，確保我們實現目標，並將良好治理始終放在首位。

Great. Thank you, Andy. The next question is, what are the company's plans to buy back stock?

太好了。謝謝你，安迪。下一個問題是，公司有什麼回購股票的計畫嗎？

I would say that given the volatility in the market and the importance of preserving capital, we've not undertaken a buyback up to this point, but we have and will continue to evaluate all our options, of which that is one.

我想說的是，鑑於市場的波動性和保留資本的重要性，我們到目前為止還沒有進行回購，但我們已經並將繼續評估我們所有的選擇，其中之一就是回購。

Okay. Thank you. Our next question, is Genius Brands affected by interest rates, energy or inflation?

好的。謝謝。我們的下一個問題是，Genius Brands 是否受到利率、能源或通貨膨脹的影響？

Good question. Well, we're not really an energy consumer. You don't use energy to build animated cartoons. We use creative energy. So if I could be a little whimsical, I would say we could be said to be an energy supplier, not a user.

問得好。嗯，我們其實不是能源消費者。製作卡通不需要能源。我們用的是創意能源。所以，如果我可以稍微異想天開一點，我想說，我們可以被稱為能源供應商，而不是能源使用者。

Interest rates, we have minimal exposure to interest rates. We have a lot of cash in the company right now. And while we do have some production-based borrowing, that's not really a factor for us.

利率，我們對利率的曝險很小。我們公司目前有大量現金。雖然我們確實有一些基於生產的借款，但這對我們來說並不是一個真正的因素。

Great. Our next question, does Genius have exposure to China through its productions or otherwise?

太好了。我們的下一個問題是，Genius 是否透過其作品或其他方式接觸到了中國市場？

Good question. We enjoy good relations because of our Superhero Kindergarten series now being broadcast with our Chinese partner, Alibaba, on their Youku platform. That's the most robust kids platform in China. And to the best of my knowledge, we're the only American supplier of children's content to Alibaba. We are paid cash for our programs we sell to China in U.S. dollars.

問得好。我們與中國合作夥伴阿里巴巴合作的《超級英雄幼兒園》系列目前在其酷炫平台上播出，因此我們與阿里巴巴保持著良好的關係。優酷是中國最強大的兒童平台。據我所知，我們是阿里巴巴唯一的美國兒童內容供應商。我們向中國銷售節目時，會收取美元現金。

At the same time, our exposure to commercial pressures from China is minimal because we've migrated the bulk of our [animation] production from Chinese animation studios to Indonesia and the Philippines, where pricing is currently much more favorable and production quality remains high.

同時，我們面臨的來自中國的商業壓力很小，因為我們已將大部分動畫製作從中國動畫工作室轉移到印尼和菲律賓，那裡的定價目前更加優惠，而且製作品質仍然很高。

Thank you. Our next question, can you provide an update on Shaq's Garage and what you think sets it apart from other productions?

謝謝。下一個問題是，您能否介紹《沙克的車庫》的最新進展，以及您認為它與其他作品有何不同？

I've talked a little bit about it earlier, but the current plan for Shaq's Garage is to begin delivering episodes in the fourth quarter of this year. All of the scripts are written, both Shaquille and Rob Gronkowski have recorded 90% of their voices. A show we consider to be a PAW Patrol with cars. It's very cool. The music is very cool. The stories are aspirational and fun, more cool cars than you can ever imagine.

我之前稍微談過，《沙奎爾的車庫》目前計劃在今年第四季開始播出。所有劇本都已寫好，沙奎爾和羅布·格隆考斯基都錄製了90%的配音。我們認為這部劇就像是一部帶著汽車的汪汪隊立大功。它非常酷炫，音樂也很棒。故事充滿靈感和樂趣，裡面的酷車比你想像的還要多。

We're also excited about a show within a show that will appear in many of the episodes. It's a segment called Baby Shaq. I'm not going to say more about it now, only that if you like Baby Shark, you're going to love Baby Shaq. We're going to do a sneak peek of the first episode. It will be on for 48 hours only. It's up now on Kartoon Channel!.

我們也對劇中劇感到興奮，它將出現在多集節目中。這個片段叫做「Baby Shaq」。我現在就不多說了，我只想說，如果你喜歡“Baby Shark”，你一定會喜歡“Baby Shaq”。我們將先睹為快第一集。它只會播出48小時。現在就在Kartoon頻道上線囉！

Great. Our next question is, given the growing importance of ESG, what, if any, steps is Genius taking, including environmental measures?

太好了。我們的下一個問題是，鑑於 ESG 的重要性日益增加，Genius 正在採取哪些措施（包括環境措施）？

Okay. So our management has decided to take a leadership role in the entertainment industry on how we can best protect the environment as corporate citizens as we tell stories to depict positive environmental steps for our children. Our Chief Diversity Officer, Michael Reilly, has now been given the additional role and responsibility of Chief Environmental Officer, and the company has put a number of specific initiatives in place to make us a more environmentally friendly company and a leader in social responsibility overall. These range from carpooling incentives to adding LED energy light saving -- saving lights to having environmental lessons in our shows for the kids to learn from. We have an all-company electronic recycling day coming shortly. We have toxin reduction programs, and we have a conservation program promoting company-wide steps of reduce, reuse and recycle. These are all on our website starting today for all our clients and shareholders to see.

好的。我們的管理層決定在娛樂產業中發揮領導作用，以企業公民的身份，透過講述故事，為孩子們描繪積極的環保舉措，來展現我們如何才能更好地保護環境。我們的首席多元化官邁克爾·賴利現在被賦予了首席環境官的額外職責，公司也實施了一系列具體舉措，旨在使我們成為一家更加環保的公司，並在社會責任方面成為領導者。這些措施包括共乘獎勵、安裝LED節能燈，以及在節目中加入環保知識，供孩子們學習。我們即將舉辦全公司電子產品回收日。我們制定了毒素減排計劃，並制定了一項環保計劃，旨在推動全公司採取減少、再利用和回收的措施。從今天開始，這些計劃都將發佈在我們的網站上，供所有客戶和股東查閱。

We understand the importance of stepping forth on environmental issues. We embrace this responsibility in the stories we tell as well as broadcast on our channels and the impact it has on children as well as the concrete steps that we've taken to make the company more environmentally friendly. We believe that our company will continue to grow and flourish not in spite of our commitments to sustainability and social responsibility but because of it.

我們深知在環境議題上邁出一步的重要性。我們透過講述和播出的故事，以及它對兒童的影響，以及我們為使公司更加環保而採取的具體措施，實踐著這項責任。我們相信，公司將繼續發展壯大，這並非因為我們對永續發展和社會責任的承諾，而是因為這些承諾。

Great. Thank you. Can you talk about the merchandising strategy and when we can expect to see toys and other products on the shelves?

太好了，謝謝。能談談商品銷售策略嗎？玩具和其他產品什麼時候會上架呢？

The kids merchandise business is unpredictable, but every year, there are some very, very big hits. We don't know which of our characters, if any, will catch fire, but we believe we have several very good shots. Many of our brands have presold marquee value and existing businesses associated with them that will drive sampling. Wolfgang Puck, for example, as I said earlier, is currently a $650 million a year business. We would be very excited to have a kids version, which is a fraction of that.

兒童商品生意變幻莫測，但每年都會有一些非常熱門的商品。我們不知道哪個角色（如果有的話）會火，但我們相信我們有幾個非常好的機會。我們的許多品牌都擁有預售的高價值，並且擁有與之相關的業務，這將推動樣品銷售。例如，正如我之前所說，沃夫岡·帕克目前的年營業額為6.5億美元。我們非常期待推出兒童版，儘管這只是其中的一小部分。

Stan Lee merchandise will be coming very shortly and you can expect a significant announcement on that in the near future. The Disney merchandise of Stan Lee, which will appear in the parks and theme park experiences, will be forthcoming on their [schedule]. I believe they're very enthusiastic about this and look forward to having Stan be an important part of their Marvel experience.

史丹李的周邊商品即將上市，不久的將來會有重要消息公佈。史丹李的迪士尼週邊商品將出現在迪士尼樂園和主題樂園體驗中，並將列入迪士尼的[行程]。我相信他們對此非常熱衷，並期待史丹成為他們漫威體驗的重要組成部分。

We have a variety of brands with different activities at different stages, including Llama Llama as an ongoing staple and Rainbow Rangers, which we are going to [reboost] with a new master toy licensee because we believe in it. Shaq's Garage, we think, is a natural on many fronts. It has the same play as some very successful products like Hot Wheels, Pixar's Cars and PAW Patrol. However, we think the creative premise is very special and differentiated.

我們旗下擁有多個品牌，在不同階段進行不同的活動，包括作為持續主打產品的Llama Llama和Rainbow Rangers，我們將與新的玩具授權商合作，重新振興Rainbow Rangers，因為我們對它充滿信心。我們認為Shaq's Garage在很多方面都順理成章。它與一些非常成功的產品，例如風火輪、皮克斯的《賽車總動員》和《汪汪隊立大功》，有著相同的策略。然而，我們認為它的創意理念非常獨特，獨具特色。

There are a number of products now coming out of Frederator and Mainframe, which we have the potential to become significant in merchandising for us as well. Bee and PuppyCat, which was first incubated on YouTube and has developed a large audience and will debut next month on Netflix, is one of them.

Frederator 和 Mainframe 目前推出了許多產品，這些產品也有可能成為我們重要的行銷管道。 Bee and PuppyCat 就是其中之一，它最初在 YouTube 上孵化，已經積累了大量觀眾，並將於下個月在 Netflix 上線。

Great. Thank you, Andy. That does conclude the questions. We appreciate everybody's support, and we look forward to providing further updates. Thank you.

太好了。謝謝你，安迪。問題到此結束。感謝大家的支持，我們期待提供進一步的更新。謝謝。

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.

謝謝各位，女士們，先生們。今天的電話會議到此結束。各位現在可以掛斷電話了，祝大家有個美好的一天。感謝各位的參與。