On this page of StockholderLetter.com we present the 6/30/2023 shareholder letter from Reservoir Media, Inc. — ticker symbol RSVR. Reading current and past RSVR letters to shareholders can bring important insights into the investment thesis.

 •  6/30/2023 Letter Continued (Full PDF)
 •  6/25/2024 RSVR Stockholder Letter
 •  More "Entertainment" Category Stockholder Letters
 •  RSVR Benford's Law Stock Score = 75

RSVR 6/30/2023 Shareholder/Stockholder Letter Transcript:

2023
ANNUAL
REPORT

LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
In Fiscal 2023, we continued to build on Reservoir   s position as
a leading independent music publisher and achieved important
operational and financial milestones. We surpassed our internal
expectations, evident through our consistent beat-and-raise
cadence with our financial guidance, and we closed several
attractive deals that expanded our roster and brought further
diversity to the portfolio. Our operational success was supported
by strong industry growth as the music industry continues to be
resilient in a challenging macroenvironment.
Strategic Execution
The broader music industry saw healthy indications of continued growth through higher paying
subscribers to streaming platforms and the resurgence of live performances, and while we
benefited from these strong secular tailwinds, the strength of our organic growth in the year was
largely achieved through the value enhancement initiatives we cultivated for our songwriters and
artists. One of our proudest accomplishments was bringing Grammy-winning and pioneering hiphop trio De La Soul   s entire back catalog to streaming platforms for the first time ever. Millions of
listeners streamed De La Soul   s seminal works in just the first 24 hours of the historic release,
delighting their original fans and bringing their music to a new generation of listeners.
In addition to this landmark achievement, we also closed over 50 transactions in the year. Some
of our notable deals in Fiscal 2023 included:
Renowned saxophonist and songwriter Sonny Rollins, one of the most influential jazz
musicians of all time. The deal included both publishing and recorded rights for Rollins, who is
known as the greatest living improviser.
Rock and Roll and Grammy Hall of Fame inductee Dion Francis DiMucci, professionally known
as Dion. The deal included Dion's entire publishing catalog and future works, as well as
synchronization rights to his recording masters, with hit songs such as "Runaround Sue," "The
Wanderer," "Ruby Baby," and "Dream Lover."
Grammy-nominated writer and producer Dennis Lambert. This deal included his entire catalog,
featuring hits such as    We Built This City    by Starship and    Nightshift    by the Commodores.
This deal bolsters our existing copyright interest in    Nightshift,    which was originally sourced
through our acquisition of the catalog of the Commodores    Walter Orange.
Active songwriter and producer Leroy Clampitt. This publishing deal includes future works for
the Grammy-nominated Clampitt, whose credits include collaborations by Justin Bieber, Dua
Lipa, Jennifer Lopez, Sabrina Carpenter, and Madison Beer.
American Idol producer, 19 Entertainment. Through the joint venture established by this deal,
Reservoir and 19 Entertainment will aim to sign new publishing deals with the talented
contestants featured on the longstanding television series.

LETTER TO SHAREHOLDERS
Overall, it was a very active M&A year for Reservoir. We continued to close acquisitions that
bring growth and diversity to our roster and are focused on opportunities to utilize the value
enhancement initiatives we have in place at Reservoir.
Fiscal 2023 Financial Results and 2024 Priorities
For the second consecutive year, we delivered financial results that exceeded our guidance.
This included double-digit top-line and Adjusted EBITDA growth, and significant growth for both
business segments, with Recorded Music reporting 18% year-over-year growth, and our Music
Publishing segment reporting a 9% improvement. These full year results show our ability to
execute in a challenging macroenvironment, and we believe this will continue as the music
industry is poised for further growth.
Heading into Fiscal 2024, we are in a strong financial position with our balance sheet and
current leverage profile. The predictable cash flows the business produces will allow us to
continue our acquisition strategy while also maintaining our leverage. At the end of Fiscal 2023,
we had over $147 million in total liquidity and $296.6 million in net debt. Notably, almost half of
our outstanding debt is hedged at attractive interest rates, which will help limit our exposure to a
rising rate environment.
Given our strong results in Fiscal 2023 and our balance sheet strength, we anticipate continued
growth in both the top and bottom line. We expect annual revenues to fall in the range of $127
million to $132 million, the midpoint of which would represent a 6% increase year-over-year. We
also expect Adjusted EBITDA to be in the range of $49 million to $52 million, which implies 9%
growth at the midpoint.
We are confident in our Fiscal 2024 financial targets. Our business delivers highly predictable
cash flows, which allows us to deploy capital for accretive deals while remaining focused on
meeting the needs of our business.
I want to thank our team at Reservoir and our roster of songwriters and artists, as well as our
shareholders. We look forward to another successful year at Reservoir Media.
Sincerely,
Golnar Khosrowshahi
Chief Executive Officer



 6/30/2023 Letter Continued (Full PDF)