EX-99.1 2 tv514691_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Cleansing Materials

The Ad Hoc Group requested certain sales information, that when aggregated, differs from reported Net Sales due to various adjustments, including adjustments for certain customer allowances. For purposes herein, and specifically in items number 2 and 3 below, we refer to this adjusted sales information as Net Invoiced. The table below reconciles total Net Invoiced to Net Sales, as reported in the applicable period ($ in millions):

	Year Ended December 31,									9 Months Ended September 30,						Last 12 Months Ended
	2015			2016			2017			2017			2018			September 30, 2018
Net Invoiced		755.5			720.9			624.6			480.9			452.6			596.4
Adjustments		(9.8	)		(14.3	)		(11.5	)		(4.4	)		(17.1	)		(24.3	)
Net Sales as reported		745.7			706.6			613.1			476.5			435.5			572.1

The Ad Hoc Group's financial advisors worked with the Company to categorize the Net Invoiced information into two major groups, Releases and Non-Releases. The Releases group reflects Net Invoiced amounts related to major entertainment releases, such as a theatrical movie ("Movie Release") or television network program ("Network Release"). The Non-Releases group reflects the balance. The table below presents the Net Invoiced amounts for Releases and Non-Releases for the applicable period ($ in millions):

	Year Ended December 31,						9 Months Ended September 30,				Last 12 Months Ended
	2015		2016		2017		2017		2018		September 30, 2018
Releases		352.9		266.6		224.8		170.1		168.9		223.6
Non-Releases		402.6		454.3		399.8		310.8		283.7		372.8
Net Invoiced		755.5		720.9		624.6		480.9		452.6		596.4

The table below groups Releases by year of release to show the related Net Invoiced amounts by release year from 2015 to September 30, 2018 ($ in millions).

($ Millions)

LTM

Movie Releases

Network Releases

2015

2016

2017

Q3 2018

2013

§ FROZEN

§ GI JOE

§ PAW PATROL

§ SHERIFF CALLIE

237.6

109.0

61.5

41.7

2014

§ DISNEY MALEFICENT

§ BIG HERO 6

§ GODZILLA

§ RIO 2

§ PENGUIN OF MADAGASCAR

§ TRANSFORMERS MOVIE 4

§ DORA AND FRIENDS

3.5

2.2

0.6

0.5

2015

§ STAR WARS (in ’15, ’16, ’17, ’18)

§ MINIONS

§ CINDERELLA

§ DISNEY/PIXAR'S INSIDE OUT

§ PJ MASK-ENT ONE/UK LIM

§ PALACE PETS

§ STAR DARLINGS

§ MILES FROM TOMORROWLAND

§ DC SUPER HERO GIRLS

§ NEXO KNIGHTS

§ SHIMMER AND SHINE

59.9

38.2

23.5

16.1

2016

§ MOANA

§ BATMAN VS SUPERMAN

§ WARCRAFT

§ HARRY POTTER

§ FINDING DORY

§ DREAMWORKS TROLL

§ UNIVERSAL'S SECRET LIFE OF PET

§ TROLLS

§ PETE'S DRAGON

§ ZOOTOPIA

§ DREAMWORKS KUNG FU PANDA

§ CAPTAIN AMERICA

§ ELENA OF AVALOR

§ NINJA TURTLE

§ THE LION GUARD

6.9

66.4

78.1

53.9

2017

§ POWER RANGER

§ ORIGINAL POWER RANGER

§ HASBRO'S TRANSFORMERS

§ DISNEY CARS

§ NINJAGO MOVIE

§ NINJAGO MOVIE

§ SMURFS

§ MY LITTLE PONY MOVIE

§ LEGO BATMAN MOVIE

§ POWER RANGERS 2017

§ PIRATES OF THE CARIBBEAN 5

§ TRANSFORMERS MOVIE 5

§ BEAUTY & THE BEAST

§ CAPTAIN UNDERPANTS

§ GUARDIANS OF THE GALAXY

§ THOR

§ TANGLED - THE SERIES

§ SUNNY DAY

§ POWER RANGERS SERIES

§ ORIGINAL POWER RANGERS

§ DISNEYS PUPPY DOG PALS

§ DISNEY TV SERIES

§ NINJAGO SERIES

12.1

19.1

43.7

22.2

2018

§ THE INCREDIBLES 2

§ DISNEY - Z-O-M-B-I-E-S

§ TRANSFORMERS 2018-BUMBLEBEE

§ DISNEY/PIXAR BRAVE

§ NUTCRACKER & THE FOUR REALMS

§ PARAMOUNT MOVIE

§ DISNEY MOVIES

§ WRECK-IT-RALPH 2

§ FANCY NANCY

§ NETFLIX ORIGINAL

0.1

75.0

2019

§ FROZEN 2

§ LION KING LIVE ACTION

§ POKEMON LIVE ACTION

§ TOY STORY 4

§ LEGO MOVIE 2

§ GODZILLA

§ HOW TO TRAIN YOUR DRAGON 3

§ SONIC

§ ALADDIN LIVE ACTION

§ DESCENDANTS 3

§ MEGAMAN

Other

All other

§ SOFIA THE FIRST (2012)

§ DANIEL TIGER’s (2012)

32.8

31.6

17.3

14.2

Total Releases:

352.9

266.6

224.8

223.6

The Ad Hoc Group requested information related to the borrowing base under the Company's Credit Facility with Wells Fargo. The Company is required to compute its borrowing base under the Credit Facility on a monthly basis. For the thirteen months between September 2017 and September 2018, the Company's gross borrowing base computation, before deductions for outstanding borrowings and letters of credit, ranged from $23.7 million to $63.7 million. Availability under the Credit Facility over the same time period ranged from $9.2 million to $50.9 million. During this time period, the Credit Facility was amended in June 2018 to add customer receivables of the Company's Hong Kong based subsidiaries in the borrowing base computation.

The Ad Hoc Group requested information related to the borrowing base associated with the Company's Term Loan with Great American Capital Partners. The Company closed the $20.0 million Term Loan in June 2018 and is required to compute its borrowing base underlying the Term Loan balance on a monthly basis. The first computation was completed for May 2018. From May 2018 through September 2018, the Company's monthly gross borrowing base computation ranged from $23.7 million to $32.7 million, and exceeded the Term Loan balance of $20.0 million in each of the applicable months.

The tables below include certain consolidated Balance Sheet information at the end of each month presented ($ in millions).

	Jan-16		Feb-16		Mar-16		Apr-16		May-16		Jun-16		Jul-16		Aug-16		Sep-16		Oct-16		Nov-16		Dec-16
Total Current Assets		371.8		345.9		314.8		311.4		308.8		352.5		377.8		397.0		446.7		427.6		400.7		353.4
Total Assets		488.2		460.3		430.8		427.2		426.1		469.9		494.4		513.1		560.1		539.6		512.6		464.3
Total Current Liabilities		123.2		106.1		87.8		99.6		103.8		135.9		156.6		160.9		199.1		178.7		161.0		116.8
Total Liabilities		340.7		323.7		305.6		316.5		320.4		353.4		374.1		378.6		416.8		390.8		373.0		329.1
Stockholders' Equity		147.5		136.6		125.2		110.6		105.7		116.5		120.2		134.5		143.3		148.8		139.6		135.2
Total Liabilities & Equity		488.2		460.3		430.8		427.2		426.1		469.9		494.4		513.1		560.1		539.6		512.6		464.3

	Jan-17		Feb-17		Mar-17		Apr-17		May-17		Jun-17		Jul-17		Aug-17		Sep-17		Oct-17		Nov-17		Dec-17
Total Current Assets		338.8		288.1		267.6		269.0		267.4		289.4		317.5		340.3		371.3		328.8		312.2		282.7
Total Assets		448.8		397.4		376.3		375.8		374.4		398.4		422.1		444.0		453.3		410.8		394.5		370.3
Total Current Liabilities		113.6		91.2		69.3		63.4		67.4		98.4		114.8		134.5		189.3		145.4		130.8		135.8
Total Liabilities		315.7		264.9		243.1		237.3		241.3		259.4		275.8		295.5		329.4		285.4		270.9		275.8
Stockholders' Equity		133.2		132.5		133.3		138.6		133.1		139.0		146.4		148.4		123.9		125.4		123.5		94.5
Total Liabilities & Equity		448.8		397.4		376.3		375.8		374.4		398.4		422.1		444.0		453.3		410.8		394.5		370.3

							Jan-18		Feb-18		Mar-18		Apr-18		May-18		Jun-18		Jul-18		Aug-18		Sep-18
Total Current Assets								259.0		245.2		215.5		190.3		188.4		250.1		272.3		308.9		353.5
Total Assets								345.5		333.0		313.9		287.2		285.9		348.9		371.4		404.8		447.6
Total Current Liabilities								120.3		114.4		112.7		96.2		101.4		165.1		176.9		206.9		240.8
Total Liabilities								260.4		254.5		253.9		237.6		242.8		308.6		328.3		358.5		392.0
Stockholders' Equity								85.1		78.5		60.0		49.6		43.1		40.3		43.1		46.3		55.6
Total Liabilities & Equity								345.5		333.0		313.9		287.2		285.9		348.9		371.4		404.8		447.6

The tables below include certain Balance Sheet information by region at the end of each month presented ($ in millions). China includes Hong Kong, and Other includes Canada, Mexico and various countries in Europe.

	Oct-17													Nov-17													Dec-17
	US			China			Other		Elim.			Total		US			China			Other		Elim.			Total		US			China			Other		Elim.			Total
Total Current Assets		135.5			149.6			41.5		2.2			328.8		147.0			118.8			44.3		2.1			312.2		136.8			109.9			43.4		(7.4	)		282.7
Total Assets		595.2			213.4			47.4		(445.2	)		410.8		606.8			182.7			50.4		(445.4	)		394.5		600.6			173.8			49.5		(453.6	)		370.3
Total Current Liabilities		538.5			(104.8	)		41.0		(329.3	)		145.4		552.4			(136.0	)		43.0		(328.6	)		130.8		568.5			(147.0	)		42.6		(328.3	)		135.8
Total Liabilities		675.7			(104.1	)		41.0		(327.2	)		285.4		689.7			(135.3	)		43.0		(326.5	)		270.9		706.1			(146.4	)		42.6		(326.5	)		275.8
Stockholders' Equity		(80.5	)		317.5			6.4		(118.0	)		125.4		(82.9	)		318.0			7.3		(118.9	)		123.5		(105.6	)		320.2			6.8		(126.9	)		94.5
Total Liabilities & Equity		595.2			213.4			47.4		(445.2	)		410.8		606.8			182.7			50.3		(445.3	)		394.5		600.6			173.8			49.5		(453.6	)		370.3

	Jan-18													Feb-18													Mar-18
	US			China			Other		Elim.			Total		US			China			Other		Elim.			Total		US			China			Other		Elim.			Total
Total Current Assets		120.2			93.2			46.2		(0.6	)		259.0		116.2			93.3			36.2		(0.5	)		245.2		98.7			96.8			36.3		(16.3	)		215.5
Total Assets		582.6			157.1			52.5		(446.7	)		345.5		580.4			156.7			42.4		(446.5	)		333.0		571.3			160.2			42.6		(460.2	)		313.9
Total Current Liabilities		559.7			(164.4	)		46.0		(321.0	)		120.3		563.3			(164.7	)		36.5		(320.7	)		114.4		558.4			(159.6	)		38.6		(324.7	)		112.7
Total Liabilities		697.4			(163.7	)		46.0		(319.3	)		260.4		701.0			(164.0	)		36.5		(319.0	)		254.5		697.1			(159.1	)		38.6		(322.7	)		253.9
Stockholders' Equity		(114.8	)		320.8			6.5		(127.4	)		85.1		(120.6	)		320.7			5.9		(127.5	)		78.5		(125.9	)		319.3			3.9		(137.3	)		60.0
Total Liabilities & Equity		582.6			157.1			52.5		(446.7	)		345.5		580.4			156.7			42.4		(446.5	)		333.0		571.3			160.2			42.5		(460.1	)		313.9

	Apr-18													May-18													Jun-18
	US			China			Other		Elim.			Total		US			China			Other		Elim.			Total		US			China			Other		Elim.			Total
Total Current Assets		100.5			71.3			34.4		(15.9	)		190.3		103.5			66.8			34.3		(16.2	)		188.4		123.8			90.7			37.0		(1.4	)		250.1
Total Assets		573.0			134.2			40.6		(460.6	)		287.2		576.8			129.5			40.3		(460.7	)		285.9		597.2			153.5			42.9		(444.7	)		348.9
Total Current Liabilities		568.8			(184.7	)		36.3		(324.2	)		96.2		580.1			(190.3	)		35.5		(323.9	)		101.4		582.6			(139.9	)		41.1		(318.7	)		165.1
Total Liabilities		707.6			(184.1	)		36.3		(322.2	)		237.6		718.9			(189.8	)		35.5		(321.8	)		242.8		723.9			(139.4	)		41.1		(317.0	)		308.6
Stockholders' Equity		(134.5	)		318.3			4.3		(138.5	)		49.6		(142.1	)		319.3			4.8		(138.9	)		43.1		(126.8	)		292.9			1.8		(127.6	)		40.3
Total Liabilities & Equity		573.0			134.2			40.5		(460.5	)		287.2		576.9			129.5			40.3		(460.8	)		285.9		597.2			153.5			42.9		(444.7	)		348.9

	Jul-18													Aug-18													Sep-18
	US			China			Other		Elim.			Total		US			China			Other		Elim.			Total		US			China			Other		Elim.			Total
Total Current Assets		110.7			123.1			39.8		(1.3	)		272.3		118.2			146.8			45.6		(1.7	)		308.9		153.6			155.9			46.2		(2.2	)		353.5
Total Assets		586.6			185.2			45.7		(446.1	)		371.4		591.0			208.9			51.4		(446.5	)		404.8		626.1			217.9			52.1		(448.5	)		447.6
Total Current Liabilities		560.5			(110.0	)		44.2		(317.8	)		176.9		398.4			78.6			46.8		(316.9	)		206.9		426.0			84.4			47.4		(317.0	)		240.8
Total Liabilities		709.5			(109.4	)		44.4		(316.2	)		328.3		547.6			79.2			47.1		(315.4	)		358.5		574.8			85.1			47.6		(315.5	)		392.0
Stockholders' Equity		(123.0	)		294.7			1.3		(129.9	)		43.1		43.4			129.7			4.4		(131.2	)		46.3		51.4			132.8			4.5		(133.1	)		55.6
Total Liabilities & Equity		586.6			185.2			45.7		(446.1	)		371.4		591.0			208.9			51.4		(446.5	)		404.8		626.1			218.0			52.1		(448.6	)		447.6

The Ad Hoc Group requested certain projected Income Statement information for the year ended December 31, 2018 and for the years ending December 31, 2019 and 2020. Note that these financial projections are based on current expectations, estimates and assumptions. These financial projections are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from these financial projections. Projected Net Sales and Adjusted EBITDA are presented in the table below for the applicable period ($ in millions).

	Year Ended		Year Ending December 31,
	December 31, 2018		2019		2020
Projected Net Sales		567.8		597.5		642.0
Projected Adjusted EBITDA		2.3		27.1		45.9

Adjusted EBITDA excludes (and may exclude in future years, if applicable,) stock-based compensation, restructuring and acquisition related costs, bad debt expenses and recoveries related to accounts such as Toys R Us, and certain minimum guarantee shortfall and inventory write-down charges.

In October 2018, the Company initiated a plan to reduce our global workforce and consolidate certain of our operations and functions to significantly reduce costs. The initial high level target was to reduce annual operating costs by $24 million. The Company has currently identified approximately $16 million of annualized cost reductions, above the previously disclosed range of $10 to $15 million.