Chicken Soup for the Soul Entertainment, Inc. · OTC:CSSEQ
Chicken Soup for the Soul Entertainment — Investor Presentation (April 2023)
24 slides from Chicken Soup for the Soul Entertainment's investor presentation, Apr 6, 2023
Slide 1: Investor Presentation April 2023
INVESTOR PRESENTATION April 2023
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS This presentation (the “Presentation”) relates to Chicken Soup for the Soul Entertainment, Inc . (“CSS Entertainment”, “CSSE”, or the “Company”) . This presentation contains various information and projections regarding the Company’s business, including its operations th
Slide 3: Leading Provider of Premium Entertainment for Value Conscious Consumers
LEADING PROVIDER OF PREMIUM ENTERTAINMENT FOR VALUE CONSCIOUS CONSUMERS
Slide 4: We Have the Ingredients for Success
160+ FAST Channels 32k N a tio n w i d e DVD Kiosks 60m Owned & Op e ra ted MAUs 42m Redbox Loyalty M embe r s ~160 Distribution To uchpoin t s $500m FY23 Revenue Top 5 AVOD 4 WE HAVE THE INGREDIENTS FOR SUCCESS 68k C o n te n t Library Assets $100 - $150m FY23 Adj. EBITDA Top 4 TVOD
Slide 5: TV's New Landscape Is Coming Into View
TOTAL UNIVERSE 120M TV HOUSEHOLDS (U.S.) CORD “Converters” 1 2 THE FALSE PROMISE OF vMVPDS Once promising consumers skinny bundles at an affordable price, this is no longer the case 52% of cord cutters don’t miss anything about Cable/Satellite 52% of cord cutters don’t miss anything about Cable/Sate
Slide 6: Poised to Capture Massive AVOD Opportunity
(1) Dataxis, 2022 (2) T i V o V i d e o T r e n d s R e p o r t Q 2 ’ 2 2 6 The US AVOD market is expected to overtake the traditional TV market in revenue by the end of 2025 1 AVOD accounts for 22% of total viewing time across television, compared to only 10% in Q4’21 2 AVOD accounts for 32% of ove
Slide 7: Widely Distributed Digital Offerings
WIDELY DISTRIBUTED DIGITAL OFFERINGS Crackle is a leading, free to use video entertainment network featuring full length movies, TV shows and original programming FAST Channels A free ad - supported streaming television service with over 160 channels On - mission content: entertaining, uplifting, an
Slide 8: Meeting Consumers Everywhere They Make Viewing Decisions
MEETING CONSUMERS EVERYWHERE THEY MAKE VIEWING DECISIONS Rapidly expanding viewership with ~ 160 distribution touchpoints Distributing FAST channels across our broad touchpoint network Launching new VOD and linear platforms across all brands LINEAR CHANNELS & VOD EXPERIENCES ACROSS: 8
Slide 9: Nationwide Kiosk Network
LOYALTY M E M B ERS WEEKLY RETAIL IM P R E S S I ONS 340m 42m 32k NAT I O NW I DE KIOSKS Growth Drivers: • Return of feature film releases • Broadening access to original content across kiosk network • Cross - advertising opportunities Broadens distribution, delivers high - margin cash flow stream N
Slide 10: Kiosk Rebound Underway
Studios have recommitted to theatrical distribution with new releases driving rentals and new customer transactions Theatrical Hits Drive Week - Over - Week Lifts Legacy DVD business expected to grow next 12 - 24 months as feature films return to kiosks First - run films expected to return to normal
Slide 11: Steady Stream of New Releases Fueling Redbox
STEADY STREAM OF NEW RELEASES FUELING REDBOX 11
Slide 12: DVD Rentals on the Rise
As new releases continue to grow in number, Redbox’s weekly DVD rental trajectory is on track to surpass expectations DVD RENTALS ON THE RISE 25K 50K 75K 10 0 K 12 5 K 15 0 K 0 1 2 3 4 5 Weekly Theatrical Releases 6 50 0 K 1 . 0 M 1 .5 M 2 . 0 M Weekly Rates 2.5M J F J A J 2023 Weekly Rents S O N Pr
Slide 13: Production & Acquisition Capabilities
Increasing rights ownership combined with partnered approach to production enhances margin and mitigates risk Content Rights Ownership Sonar Film and Television Library Original & Exclusive Content Production PRODUCTION & ACQUISITION CAPABILITIES 13
Slide 14: Originals & Exclusives Are an AVOD Differentiator
Original & Exclusive content drives viewership and margins Draws sponsors to custom opportunities at higher CPMs Addition of TVOD, FAST channels, and kiosk network offer new windows for monetizing Originals & Exclusives ORIGINALS & EXCLUSIVES ARE AN AVOD DIFFERENTIATOR Originals & Exclusives Account
Slide 15: Large Content Library & Award-Winning Programming
LARGE CONTENT LIBRARY & AWARD - WINNING PROGRAMMING 28k+ Total Film Titles 40k+ Episodes of Television Films drive customer acquisition TV series drive customer retention 105 Emmy Awards 457 Emmy Award nominations 15 Golden Globe Awards Content Library Awards Original Series 7 series have received o
Slide 16: World Class Sales Organization
Direct to brand across all our AVOD networks with data - driven consumer targeting capabilities DIRECT SALES Offer advertisers access to premium long form video in real time across our network PROGRAMMATIC OTT has been an enhancement for the local resellers, and we provide these operators with local
Slide 17: International Growth Opportunity
Recently partnered with KC Global, a leading entertainment network and multi - channel operator in Asia, on content licensing and distribution Expanded internationally through partnerships with Keshet (Israel) and Locomotive Global (India) Chicken Soup for the Soul brand has international recognitio
Slide 18: Revenue and Cost Synergies
• Cross - selling and marketing across combined company customer bases • Increased revenue opportunity from incremental Screen Media Ventures titles in Redbox Kiosks • Greater TVOD transactions, increased AVOD engagement and watch time from combined customer base • Fully established CTV ad sales eng
Slide 19: Near-Term Victories Drive Path to FCF
Positive Free Cash Flow Revenue $500m Adj. EBITDA $100m - $150m C o m p e ll i n g Synergies $41m Capital E x p e n d itu r e Savings Rental R e b o u n d NEAR - TERM VICTORIES DRIVE PATH TO FCF 19
Slide 20: Historical Performance
HISTORICAL PERFORMANCE $10 .7 $26 .8 $55 .3 $66 .4 $110 .4 $252 .8 R e v e n ue $1.5 $8.1 $0.0 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 20 $3 .8 $4 .0 $10 .0 $6 .0 $11 .8 $21 .8 $33 .5 Adjusted EBITDA
Slide 21: Former Redbox Debt Restructured on Favorable Terms
$80m Line of Credit for Working Capital No Financial Covenants for 2+ Years 5 - year Maturity Ability to PIK Interest for first 18 Months FORMER REDBOX DEBT RESTRUCTURED ON FAVORABLE TERMS 21
Slide 22: Capitalization and Debt Summary
As of 12/31/2022 (USD in Millions) M a t u r i ty Interest Principal Outstanding Secured Debt 1st Lien HPS Senior Facilities HPS Term Loan 0 8/ 1 1/ 27 SOFR + 7.25% (1) $ 3 3 5 . 3 HPS Revolving Credit Facility 0 2/ 1 1/ 25 SOFR + 7.25% (1) 8 2 . 4 Union Bank Revolving Credit Facility (2) 1 2/ 2 9/
Slide 23: Q1 & Full Year 2023 Expectations
Q1 & Full Year 2023 Expectations FY 2023E $500m REVENUE $100m – $150m ADJ. EBITDA Q1 2023E $110m – $113m REVENUE 23 $18m – $20m ADJ. EBITDA Revenue driven primarily by return of major theatrical titles to kiosks and growth of Owned & Operated and ad - rep platforms
Slide 24: Summary Highlights
SUMMARY HIGHLIGHTS LEADING PROVIDER OF PREMIUM ENTERTAINMENT FOR VALUE CONSCIOUS CONSUMERS Leading Streaming and Consumer Brands Large and Rapidly Growing Viewership with Broad Distribution Valuable Content Library and Risk Mitigated Production Strategy Best - in - class Advertising Sales Organizati
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