Reservoir Media simply closed its first fiscal yr as a publicly traded firm.
New York-based Reservoir – which floated on the NASDAQ through a merger with a SPAC in July 2021 – has immediately (June 21) printed monetary outcomes for its fiscal This autumn 2021 (calendar Q1 2022) and FY fiscal 2022, ended March 31, 2022.
In accordance with Reservoir’s SEC submitting, the corporate’s whole revenues (together with recorded music and publishing) in fiscal 2022 grew 34% to $107.8 million, versus $80.2 million in fiscal 2021.
On an natural foundation (i.e. discounting acquisitions), Reservoir says that its total revenues grew by 15% within the yr.
Why the large distinction? As a result of Reservoir immediately additionally disclosed that it deployed over $224 million in capital throughout 110 offers throughout its first yr as a public firm, of which 87% have been centered on catalog acquisitions.
That $224 million was a bigger deployment of capital than Reservoir’s preliminary deal-related annual spend objective of $200 million.
Some $100 million of that $224 million determine was spent on the acquisition of Tommy Boy Data, which Reservoir purchased for $100 million in June 2021.
(Inside Reservoir’s new annual report for FY 2022, the corporate writes: “Within the bizarre course of enterprise, [Reservoir] commonly acquires publishing and recorded music catalogs, that are sometimes accounted for as asset acquisitions. In the course of the fiscal years ended March 31, 2022 and 2021, [we] accomplished such acquisitions totaling $202,067,308 and $115,227,517, respectively, inclusive of deferred acquisition funds.)
“In the end, Reservoir is positioned for progress by means of turbulent occasions as a result of a recession-resistant enterprise mannequin, and this resilience is partly as a result of the truth that music stays one of the crucial under-monetized types of leisure.”
Golnar Khosrowshahi, Reservoir
In accordance with Reservoir founder and CEO, Golnar Khosrowshahi, Reservoir’s upcoming pipeline of potential offers “stays sturdy”.
Khosrowshahi added that her firm expects to “deploy over $100 million in new capital in fiscal 2023 that may assist us broaden and additional diversify our portfolio”.
Khosrowshahi instructed analysts on an earnings name earlier immediately: “Whereas our acquisition path represents a transparent progress alternative, Reservoir continues to outperform the trade on an natural progress charge as nicely.
“We stay very assured that we will preserve this as Reservoir is insulated in opposition to broader market pressures by means of having an asset class that’s uncorrelated to macroeconomic headwinds that sometimes affect different companies.”
She added: “In the end, Reservoir is positioned for progress by means of turbulent occasions as a result of a recession-resistant enterprise mannequin, and this resilience is partly as a result of the truth that music stays one of the crucial under-monetized types of leisure.”
Reservoir’s Music publishing revenues in fiscal 2022 (12 months to finish of March) reached $77.1 million, a rise of 17% in comparison with $66.1 million in fiscal 2021.
And Reservoir’s recorded music revenues for its full fiscal yr of 2022, ended March 31, elevated by 126% YoY to $29.5 million, versus $13.1 million in fiscal 2021 (see beneath).
Calendar Q1 / Fiscal This autumn outcomes
Reservoir’s whole income generated throughout its fiscal This autumn (calendar Q1 2022) elevated 46% to $35.1 million, versus $24.1 million within the prior yr quarter.
Music Publishing income generated by the corporate in calendar Q1 grew 29% year-over-year to $25.1 million, in comparison with $19.4 million in calendar Q1, in 2021.
Reservoir’s Recorded Music revenues, in the meantime, grew 123% YoY to $9.8 million in calendar Q1, versus $4.4 million within the prior yr quarter – once more, largely because of that Tommy Boy Data acquisition final yr.
A few of Reservoir’s acquisitions because the agency efficiently floated on the NASDAQ in July 2021, embrace:
- A raft of songs from nation songwriter Stephony Smith for an undisclosed charge (in November).
- Hit songs by Platinum-selling songwriter and producer Dallas Austin (November).
- A stake within the publishing catalog of Fred Parris, the author, lead vocalist and founding father of doo-wop group The 5 Satins (December).
- The publishing catalog of Grammy-winning DJ, songwriter, and producer Fred Rister (in January 2022).
- The publishing and recorded music catalogs of nation star Travis Tritt (January 2022).
In calendar Q1, Reservoir accomplished catalog acquisitions, together with Larry Smith, Henry Jackman, and Larry Kusik.
The corporate additionally signed a number of publishing and futures offers over the previous couple of months together with Ali Tamposi, Killer Mike and others.
Elsewhere in Reservoir’s newest submitting, the corporate reviews that its working earnings was $8.7 million in calendar Q1, a rise of 28%, in comparison with working earnings of $6.8 million within the prior yr quarter.
OIBDA (Working Earnings Earlier than Depreciation & Amortization) in calendar Q12022 elevated 34% YoY to $13.9 million, in comparison with $10.4 million within the prior yr quarter.
Adjusted EBITDA within the calendar Q1 elevated 47% to $15.4 million, in comparison with $10.5 million final yr.
Reservoir reviews that the will increase in working earnings, OIBDA, and Adjusted EBITDA was primarily pushed by double-digit income progress from each its recorded music and music publishing segments and “offset by bills associated to being a public firm that didn’t exist within the prior yr interval”.
“As we shut our first yr as a publicly traded firm, we’re proud to announce that we outperformed relative to our expectations and exceeded our capital deployment progress objectives with $224 million deployed throughout 110 distinctive transactions.”
Golnar Khosrowshahi, Reservoir
Golnar Khosrowshahi, Founder and Chief Govt Officer of Reservoir, stated: “We’re happy to report very sturdy outcomes for our fourth fiscal quarter, bringing a near what has been a record-breaking yr for Reservoir. We delivered on our monetary commitments, pushed by our strategic investments, and continued to execute on our technique of constructing a sturdy, curated, and diversified portfolio of award-winning songwriters’ and artists’ our bodies of labor,”
Added Khosrowshahi: “As we shut our first yr as a publicly traded firm, we’re proud to announce that we outperformed relative to our expectations and exceeded our capital deployment progress objectives with $224 million deployed throughout 110 distinctive transactions.
“Extra importantly, we laid the muse for future progress by considerably increasing and diversifying our roster, and we stay happy with our place inside the music trade as a trusted accomplice that may drive worth for our proficient artists.”
Khosrowshahi continued: “Going ahead, our focus stays on progress, pushed by continued execution in opposition to our M&A pipeline, in addition to by means of our trade main worth enhancement initiatives.
“Our pipeline of potential offers stays sturdy, and we count on to deploy over $100 million in new capital in fiscal 2023 that may assist us broaden and additional diversify our portfolio. We count on to proceed to ship constant and predictable leads to fiscal 2023, supported by a resilient and cash-generative enterprise mannequin.
“We stay up for leveraging our rising model and place within the music trade and imagine we now have a powerful platform and technique to drive long-term progress.”
“Given the momentum we in-built fiscal 2022, which included quite a few new additions to our rising roster of expertise, we count on to proceed to drive sturdy progress in each our prime and bottom-lines subsequent yr.”
Jim Heindlmeyer, Reservoir
Jim Heindlmeyer, Chief Monetary Officer of Reservoir, stated: “Given the momentum we in-built fiscal 2022, which included quite a few new additions to our rising roster of expertise, we count on to proceed to drive sturdy progress in each our prime and bottom-lines subsequent yr.
“This progress will likely be supported by the predictable money flows that our highly effective enterprise mannequin produces.
“Our enterprise mannequin has confirmed resilient throughout historic financial cycles, and we now have the proper technique to drive long-term worth creation for our inventive companions, the enterprise and for our shareholders.”Music Enterprise Worldwide
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