- Consolidated revenue decreased 7% for the quarter
- Consolidated segment
profit(1) decreased 26% for the quarter
- Consolidated segment profit
margin(1) of 31% for the quarter
- Net income attributable to shareholders of $31.4 million ($0.16 per share basic) for the quarter
- Net debt to segment
profit(1) of 3.38 times at November
30, 2022, up from 3.02 times at August 31, 2022
- Free cash flow(1) of $20.8 million
for the quarter
TORONTO, Jan. 13,
2023 /PRNewswire/ -
Corus Entertainment Inc. (TSX: CJR.B) announced
its first quarter financial results today.
"While we navigate the recent macroeconomic headwinds, Corus
remains steadfast in our pursuit of long-term growth for the
business," said Doug Murphy,
President and Chief Executive Officer. "Our recent launch of Pluto
TV with Paramount Global redefines the FAST-channel business in
Canada. We have bolstered the
value proposition of STACKTV with the addition of our suite of
Disney channels. Our owned content business is gearing up for a
significant increase in episodic deliveries in the year ahead.
Importantly, we have implemented a rigorous cost review to address
recent revenue weakness while remaining focused on advancing our
strategic plan and priorities."
Financial Highlights
|
|
Three months
ended
November
30
|
%
|
|
(in thousands of Canadian dollars
except per share amounts)
|
2022
|
2021
|
Change
|
|
Revenue
|
|
|
|
|
Television
|
401,529
|
434,747
|
(8 %)
|
|
Radio
|
29,662
|
29,126
|
2 %
|
|
431,191
|
463,873
|
(7 %)
|
|
|
|
|
Segment profit (loss)
(1)
|
|
|
|
|
Television
|
131,759
|
178,886
|
(26 %)
|
|
Radio
|
6,022
|
5,746
|
5 %
|
|
Corporate
|
(6,089)
|
(7,462)
|
18 %
|
|
131,692
|
177,170
|
(26 %)
|
|
|
|
|
Segment profit margin
(1)
|
|
|
|
|
Television
|
33 %
|
41 %
|
|
|
Radio
|
20 %
|
20 %
|
|
|
Consolidated
|
31 %
|
38 %
|
|
|
|
|
|
Net income attributable to shareholders
|
31,387
|
76,165
|
(59 %)
|
|
Basic earnings per
share
|
$0.16
|
$0.37
|
|
|
Diluted earnings per share
|
$0.16
|
$0.36
|
|
|
|
|
|
Free cash flow (1)
|
20,810
|
79,987
|
(74 %)
|
|
(1)
|
In addition to
disclosing results in accordance with International Financial
Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board ("IASB"), the Company also provides
supplementary non-IFRS measures as a method of evaluating the
Company's performance and to provide a better understanding of
how management views the Company's performance. These non-IFRS
or non-GAAP measures can include: segment profit (loss),
segment profit margin, free cash flow,
net debt to segment profit,
optimized advertising revenue and new platform
revenue. These are not measurements in accordance with
IFRS and should not be considered as an alternative to any other
measure of performance under IFRS. Please see additional
discussion and reconciliations under the Key Performance
Indicators and Non-GAAP Financial Measures section of the Company's
First Quarter 2023 Report to Shareholders
|
Segment Revenue
|
|
Three months
ended
November 30,
|
%
|
|
(in thousands of
Canadian dollars)
|
2022
|
2021
|
Change
|
|
Revenue
|
401,529
|
|
|
|
Television
|
434,747
|
(8 %)
|
|
Advertising
|
252,513
|
285,037
|
(11 %)
|
|
Subscriber
|
127,515
|
127,535
|
—
|
|
Distribution, production and other
|
21,501
|
22,175
|
(3 %)
|
|
Radio
|
29,662
|
29,126
|
2 %
|
|
Total Revenue
|
431,191
|
463,873
|
(7 %)
|
|
|
|
|
Optimized advertising revenue
(1)
|
55 %
|
37 %
|
31 %
|
|
New platform revenue (1)
|
10 %
|
9 %
|
13 %
|
|
(1)
|
Optimized advertising
revenue and new platform revenue do not have standardized meanings
prescribed by IFRS. For definitions and explanations, see
the discussion under the Key Performance Indicators and
Non-GAAP Financial Measures section of the First Quarter 2023
Report to Shareholders.
|
Operational Highlights
Corus advanced its strategic priorities on multiple
fronts. The Company expanded its premium digital video
offerings for subscribers and advertisers, and launched its
Fall programming lineup for Global TV and Corus' portfolio of
Specialty Networks. The Company advanced its capital allocation
priorities through investments in the business to support future
growth opportunities while continuing to navigate an uncertain
macroeconomic environment.
- Corus and Paramount Global launched Pluto TV. Pluto TV,
the world's leading FAST (free ad-supported streaming television)
service, launched in Canada on
December 1, 2022. Corus' leading
advertising sales capabilities have combined with Pluto TV's best-
in-class platform and technology, serving compelling content to
audiences and providing a differentiated model for advertisers. The
service launched with more than 110 unique channels and over 20,000
hours of content, including access to a selection of Canadian
series and shows from Corus' portfolio spanning a variety of
genres. Pluto TV is available on all major platforms including web,
mobile and connected TVs.
-
Corus Expanded STACKTV Content Offering with Addition of Three Disney Channels. Disney Channel, Disney Junior and Disney XD
launched December 14, 2022 on STACKTV, Corus'
premium multi-channel streaming service, providing value
for subscribers.
- Release of Inaugural Sustainability Report. Corus
released its 2022 Sustainability Report,
which outlines the Company's focused approach
to build a more sustainable future through Environment, Social and
Governance ("ESG") initiatives. Centred on
Corus' three key pillars - People, Planet
and Responsibility - the inaugural Sustainability Report outlines
the progress made to-date as well as
a set of foundational goals that anchor Corus' ambition and
approach to sustainability.
Financial Highlights
- Free cash flow(1) of $20.8 million
in Q1 compared to $80.0 million in the prior year's quarter.
The decrease in free cash flow(1) in the first quarter is attributable to a decrease
in cash provided
by operating activities of $14.1 million
and higher cash used in investing activities. In
the prior year's quarter, cash provided from investing activities
included a $43.5 million
non-recurring venture fund distribution.
- Net debt to segment profit(1) was 3.38 times at
November 30, 2022, up from 3.02 times
at August 31, 2022. The main driver
of the increase in this ratio is the decrease of segment
profit(1) for the most recent four quarters.
- In the first quarter, the Company purchased 785,000 of its
Class B Non-Voting Participating Shares under a normal course
issuer bid at an average acquisition price of $2.51.
- As of November 30, 2022, the
Company had $80.9 million of cash and
cash equivalents and approximately $270.0
million available under its Revolving Facility, $214.1 million of which could be drawn.
|
(1)
|
Free cash flow, net
debt to segment profit and segment profit do not have standardized
meanings prescribed by IFRS. The Company reports on these because
they are key measures used to evaluate performance. For definitions
and explanations, see the discussion under the Key
Performance Indicators and Non-GAAP Financial
Measures section of the First Quarter 2023 Report to
Shareholders and/or Management's Discussion and Analysis in the
Company's Annual Report for the year ended August 31,
2022.
|
Corus Entertainment Inc. reports
its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial
statements and accompanying notes for the three months ended
November 30, 2022 and Management's
Discussion and Analysis are available on the Company's website at
www.corusent.com in the Investor Relations section
and under the Company's SEDAR profile at www.sedar.com.
A conference call with Corus senior management is scheduled for
January 13, 2023 at 8:00 a.m. ET. While this call is directed at
analysts and investors, members of the media are welcome to listen
in. The dial-in number for the conference call for local and
international callers is 1.647.794.4605 and for North America is 1.888.394.8218. More
information can be found on the Corus Entertainment website at
www.corusent.com in the Investor Relations section.
Risks And Uncertainties
Significant risks and uncertainties affecting the Company and
its business are discussed under the heading "Risks and
Uncertainties" and "Seasonal Fluctuations" in the 2022
MD&A, as filed at www.sedar.com on October 24, 2022.
As discussed further in the 2022 MD&A, the Company's
operating performance is affected by general Canadian and worldwide
economic conditions. Changes or volatility in domestic or
international economic conditions, economic uncertainty or
geopolitical conflict and tensions, including current ongoing
factors that can create or exacerbate recessionary conditions, may
affect discretionary consumer and business spending, including on
advertising and marketing, resulting in changes to demand for
Corus' product and services offerings. In addition, the continued
elevated consumer price index inflation also affects the Company's
business, operations and financial performance through disruption
to supply chains, increased costs of programming, services and
labour or disruption to availability of labour, reduced advertising
demand or spending, or lower demand for the Company's products and
services, all of which may lead to decreased revenue or
profitability.
Other financial risks which may be related to or elevated by the
foregoing include leverage risk related to the Company's financial
covenants and debt servicing payments, requirements and compliance
under its credit facility, and impacts thereof; the volatility of
the market price for the Company's Class B Non-Voting Shares, which
can be impacted by factors beyond the Company's control and which
can decline even if the Company's operating results, underlying
asset values or prospects have not changed; and risks related to
the payment, amount or timing of dividends. Please see the 2022
MD&A for a full discussion of these and other risks and
uncertainties.
Outlook
Given the continuing uncertain economic conditions, risks and uncertainties described above and in
the 2022 MD&A, the Company currently expects to continue to be
impacted by industry trends in advertising spending in media. At
the current time, the Company also expects to see some sequential
improvement in the calendar year in the rate of decline in
television advertising revenue given macroeconomic and industry
factors appear to be stabilizing. However, the Company
expects that the softness in Television advertising revenue
discussed in the prior quarter will continue to persist to some
degree in fiscal 2023.
While the Company's financial priorities remain unchanged, in
light of the foregoing as well as considering the continuing low
visibility into the macroeconomic environment, in addition to
continuing to take rigorous cost reduction measures, the Company
believes it is prudent to conserve cash out of an abundance of
caution. As such, the Company will not renew its share buyback
program when it expires on January 16,
2023. In addition, consistent with this approach, the
Company's Board of Directors has decided to defer its decision on
the declaration of the March dividend at this time. The outside
date for a decision on the declaration of a March dividend is
March 15, 2023. The Company will also
use this opportunity to consider the alignment of dividend
declaration and payment dates. The Company understands the
importance of the dividend to its shareholders and remains
committed to its long-term dividend philosophy.
Use of Non-GAAP Financial Measures
This press release includes
the non-GAAP or non-IFRS financial measures of
segment profit, segment profit margin, free cash flow, net debt to
segment profit, as well as supplementary financial measures not
presented in the financial statements such as optimized advertising
revenue, and new platform revenue. Non-GAAP
or non-IFRS measures
that are not in accordance with, nor an alternate to,
generally accepted accounting principles ("GAAP") and may be
different from non-GAAP or non-IFRS measures used by
other companies. In addition, these non-GAAP measures are
not based on any comprehensive set of accounting rules or
principles.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with IFRS. They are limited
in value because they exclude charges that have a material effect
on the Company's reported results and, therefore, should not be
relied upon as the sole financial measures to evaluate the
Company's financial results. The non-GAAP financial measures are
meant to supplement, and to be viewed in conjunction with, IFRS
financial results. A reconciliation of the Company's non-GAAP
measures is included in the Company's most recent Report to
Shareholders for the three months ended November 30, 2022, which is available on Corus'
website at www.corusent.com as well as on SEDAR at
www.sedar.com.
Caution Concerning Forward-Looking Information
This press release contains forward-looking information and
should be read subject to the following cautionary language:
To the extent any statements made in this press release contain
information that is not historical, these statements are
forward-looking statements and may be forward-looking information
within the meaning of applicable securities laws (collectively,
"forward-looking information"). This forward-looking information
relates to, among other things, the Company's objectives, goals,
strategies, targets, intentions, plans, estimates and outlook,
including the adoption and anticipated impact of the Company's
strategic plan, advertising and expectations of advertising trends
for fiscal 2023, subscriber revenue and anticipated subscription
trends, distribution, production and other revenue, the Company's
dividend policy and the payment of future dividends; the Company's
leverage target; the Company's proposed share purchases, including
the number of Class B non-voting shares to be repurchased under its
normal course issuer bid, if any, and timing thereof; the Company's
ability to manage retention and reputation risks related to its
on-air talent; expectations regarding financial performance,
including capital allocation strategy and capital structure
management, operating costs and tariffs, taxes and fees, and can
generally be identified by the use of words such as "believe",
"anticipate", "expect", "intend", "plan", "will", "may" or the
negatives of these terms and other similar expressions. In
addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances may be
considered forward-looking information.
Although Corus believes that the expectations reflected in such
forward-looking information are reasonable, such information
involves assumptions, risks and uncertainties and undue reliance
should not be placed on such statements. Certain material factors
or assumptions are applied with respect to the forward-looking
information, including without limitation, factors and assumptions
regarding the general market conditions and general outlook for the
industry including: the impact of recessionary conditions and
continuing supply chain constraints; the potential impact of new
competition and industry mergers and acquisitions; changes to
applicable tax, licensing and regulatory regimes; inflation and
interest rates, stability of the advertising, subscription,
production and distribution markets; changes to key suppliers or
clients; operating and capital costs and tariffs, taxes and fees,
the Company's ability to source, produce or sell desirable content
and the Company's capital and operating results being consistent
with its expectations. Actual results may differ materially from
those expressed or implied in such information.
Important factors that could cause actual results to differ
materially from these expectations include, among other things: the
Company's ability to attract, retain and manage fluctuations in
advertising revenue; the Company's ability to maintain
relationships with key suppliers and clients and on anticipated
financial terms and conditions; audience acceptance of the
Company's television programs and cable networks; the Company's
ability to manage retention and reputation risks related to its
on-air talent; the Company's ability to recoup production costs;
the availability of tax credits; the availability of expected news,
production and related credits, programs and funding; the existence
of co-production treaties; the Company's ability to compete in any
of the industries in which it does business including with
competitors which may not be regulated in the same way or to the
same degree; the business and strategic opportunities (or lack
thereof) that may be presented to and pursued by the Company;
conditions in the entertainment, information and communications
industries and technological developments therein; changes in laws
or regulations or the interpretation or application of those laws
and regulations including statements, decisions or positions by
applicable regulators including, without limitation, the Canadian
Radio-television and Telecommunications Commission ("CRTC"),
Canadian Heritage and Innovation, Science and Economic
Development Canada ("ISED"); changes to licensing status or
conditions; unanticipated or un-mitigatable programming costs; the
Company's ability to integrate and realize anticipated benefits
from its acquisitions and to effectively manage its growth; the
Company's ability to successfully defend itself against litigation
matters and complaints; failure to meet covenants under the
Company's senior credit facility, senior unsecured notes or other
instruments or facilities; epidemics, pandemics or other public
health and safety crises in Canada
and globally, including COVID-19; physical and operational changes
to the Company's key facilities and infrastructure; cybersecurity
threats or incidents to the Company or its key suppliers and
vendors; and changes in accounting standards.
Additional information about these factors and about the
material assumptions underlying any forward-looking information may
be found under the heading "Risks and Uncertainties" in the
Company's Management's Discussion and Analysis for the year ended
August 31, 2022 and under the heading
"Risk Factors" in the Company's Annual Information Form for the
year ended August 31, 2022. Corus
cautions that the foregoing list of important assumptions and
factors that may affect future results is not exhaustive. When
relying on the Company's forward-looking information to make
decisions with respect to Corus, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. Unless otherwise specified, all
forward-looking information in this document speaks as of the date
of this document and may be updated or amended from time to time.
Except as otherwise required by applicable securities laws, Corus
disclaims any intention or obligation to publicly update or revise
any forward-looking information whether as a result of new
information, events or circumstances that arise after the date
thereof or otherwise.
About Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and
content company that develops and delivers high quality brands and
content across platforms for audiences around the world. Engaging
audiences since 1999, the Company's portfolio of multimedia
offerings encompass 33 specialty television services, 39 radio
stations, 15 conventional television stations, a suite of digital
and streaming assets, animation software, technology and media
services. Corus is an internationally-renowned content creator and
distributor through Nelvana, a world class animation studio expert
in all formats and Corus Studios, a globally recognized producer of
hit scripted and unscripted content. The Company also owns
innovative full-service social digital agency so.da, lifestyle
entertainment company Kin Canada, leading 2D animation software
supplier Toon Boom and children's book publishing house, Kids Can
Press. Corus' roster of premium brands includes Global Television,
W Network, HGTV Canada, Food Network Canada, Magnolia Network
Canada, The HISTORY® Channel, Showcase, Adult Swim, National
Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca,
Q107, Country 105, and CFOX, along with broadly distributed
Canadian streaming platforms STACKTV, TELETOON+, the Global TV App
and Curiouscast. For more information visit www.corusent.com.
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
(unaudited - in
thousands of Canadian dollars)
|
As at November 30,
|
As at August
31,
|
|
2022
|
2022
|
|
ASSETS
|
|
|
|
Current
|
|
|
|
Cash and cash
equivalents
|
80,912
|
54,912
|
|
Accounts
receivable
|
413,734
|
311,015
|
|
Income taxes
recoverable
|
5,077
|
17,180
|
|
Prepaid expenses and
other assets
|
29,436
|
21,423
|
|
Total
current assets
|
529,159
|
404,530
|
|
Tax credits receivable
|
40,512
|
32,744
|
|
Investments and
other assets
|
60,467
|
63,931
|
|
Property,
plant and equipment
|
286,634
|
294,026
|
|
Program
rights
|
821,498
|
660,722
|
|
Film
investments
|
66,784
|
59,122
|
|
Intangibles
|
1,659,324
|
1,620,796
|
|
Goodwill
|
316,308
|
316,308
|
|
Deferred income tax assets
|
48,906
|
50,301
|
|
3,829,592
|
3,502,480
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
|
|
|
|
Accounts payable
and accrued liabilities
|
718,396
|
526,899
|
|
Current portion
of long-term debt
|
18,004
|
15,574
|
|
Provisions
|
6,808
|
8,540
|
|
Total current
liabilities
|
743,208
|
551,013
|
|
Long-term
debt
|
1,275,540
|
1,246,076
|
|
Other long-term liabilities
|
470,068
|
376,570
|
|
Provisions
|
10,269
|
9,830
|
|
Deferred income tax liabilities
|
411,457
|
415,010
|
|
Total liabilities
|
2,910,542
|
2,598,499
|
|
EQUITY
|
|
|
|
Share capital
|
781,052
|
781,918
|
|
Contributed
surplus
|
1,512,362
|
1,511,481
|
|
Accumulated
deficit
|
(1,555,745)
|
(1,574,358)
|
|
Accumulated
other comprehensive income
|
32,521
|
33,000
|
|
Total
equity attributable to shareholders
|
770,190
|
752,041
|
|
Equity attributable to non-controlling interests
|
148,860
|
151,940
|
|
Total equity
|
919,050
|
903,981
|
|
3,829,592
|
3,502,480
|
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
|
Three months ended
|
|
|
November 30,
|
|
(unaudited - in thousands of Canadian dollars except per share
amounts)
|
2022
|
2021
|
|
Revenue
|
431,191
|
463,873
|
|
Direct cost of sales,
general and administrative expenses
|
299,499
|
286,703
|
|
Depreciation and
amortization
|
40,134
|
37,381
|
|
Interest
expense
|
34,372
|
25,522
|
|
Restructuring and
other costs
|
2,829
|
1,043
|
|
Other expense, net
|
7,046
|
3,137
|
|
Income before income taxes
|
47,311
|
110,087
|
|
Income tax expense
|
12,713
|
29,158
|
|
Net income for the period
|
34,598
|
80,929
|
|
Other comprehensive income
(loss), net of income taxes:
|
|
|
|
Items that may be reclassified subsequently to income:
|
|
|
|
Unrealized change in fair value
of cash flow hedges
|
(1,042)
|
1,986
|
|
Unrealized foreign currency translation adjustment
|
886
|
257
|
|
(156)
|
2,243
|
|
Items that will
not be reclassified to income:
|
|
|
|
Unrealized change in fair value
of financial assets
|
(323)
|
13,580
|
|
Actuarial loss on post-retirement benefit
plans
|
(942)
|
(668)
|
|
(1,265)
|
12,912
|
|
Other comprehensive income
(loss), net of income taxes
|
(1,421)
|
15,155
|
|
Comprehensive income for the period
|
33,177
|
96,084
|
|
|
|
|
Net income attributable to:
|
|
|
|
Shareholders
|
31,387
|
76,165
|
|
Non-controlling
interests
|
3,211
|
4,764
|
|
34,598
|
80,929
|
|
|
|
|
Comprehensive income attributable to:
|
|
|
|
Shareholders
|
29,966
|
91,320
|
|
Non-controlling
interests
|
3,211
|
4,764
|
|
33,177
|
96,084
|
|
|
|
|
Earnings per share
attributable to shareholders:
|
|
|
|
Basic
|
$0.16
|
$0.37
|
|
Diluted
|
$0.16
|
$0.36
|
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY
|
(unaudited - in
thousands of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Accumulated
deficit
|
Accumulated
other
comprehensive
income
|
Total
equity
attributable to
shareholders
|
Non-
controlling
interest
|
Total
equity
|
|
As at August 31,
2022
|
781,918
|
1,511,481
|
(1,574,358)
|
33,000
|
752,041
|
151,940
|
903,981
|
|
Comprehensive
income (loss)
|
—
|
—
|
31,387
|
(1,421)
|
29,966
|
3,211
|
33,177
|
|
Dividends
declared
|
—
|
—
|
(11,538)
|
—
|
(11,538)
|
(6,363)
|
(17,901)
|
|
Change in fair value
of put option
liability
|
—
|
—
|
(294)
|
—
|
(294)
|
72
|
(222)
|
|
Shares repurchased under
normal course issuer bid
("NCIB")
|
(3,089)
|
1,119
|
—
|
—
|
(1,970)
|
—
|
(1,970)
|
|
Reversal
of automatic share
purchase commitment
|
2,223
|
(504)
|
—
|
—
|
1,719
|
—
|
1,719
|
|
Actuarial loss on
post-retirement
benefit plans
|
—
|
—
|
(942)
|
942
|
—
|
—
|
—
|
|
Share-based compensation expense
|
—
|
266
|
—
|
—
|
266
|
—
|
266
|
|
As at November 30, 2022
|
781,052
|
1,512,362
|
(1,555,745)
|
32,521
|
770,190
|
148,860
|
919,050
|
|
(unaudited - in
thousands of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Accumulated
deficit
|
Accumulated
other
comprehensive
income
|
Total
equity
attributable to
shareholders
|
Non-
controlling
interest
|
Total
equity
|
|
As at August 31,
2021
|
816,189
|
1,512,431
|
(1,282,897)
|
21,811
|
1,067,534
|
152,829
|
1,220,363
|
|
Comprehensive
income
|
—
|
—
|
76,165
|
15,155
|
91,320
|
4,764
|
96,084
|
|
Dividends
declared
|
—
|
—
|
(12,497)
|
—
|
(12,497)
|
(2,925)
|
(15,422)
|
|
Actuarial loss on
post-retirement
benefit plans
|
—
|
—
|
(668)
|
668
|
—
|
—
|
—
|
|
Share-based compensation expense
|
—
|
294
|
—
|
—
|
294
|
—
|
294
|
|
Equity funding by a non-
controlling interest
|
—
|
—
|
—
|
—
|
—
|
1,976
|
1,976
|
|
As at November 30, 2021
|
816,189
|
1,512,725
|
(1,219,897)
|
37,634
|
1,146,651
|
156,644
|
1,303,295
|
CORUS ENTERTAINMENT INC.
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CASH
FLOWS
|
Three months ended
|
|
|
November 30,
|
|
(unaudited - in thousands of Canadian
dollars)
|
2022
|
2021
|
|
OPERATING ACTIVITIES
|
|
|
|
Net income
for the period
|
34,598
|
80,929
|
|
Adjustments to reconcile net income to cash flow
from operations:
|
|
|
|
Amortization of program rights
|
152,389
|
142,192
|
|
Amortization of film investments
|
4,275
|
3,611
|
|
Depreciation and amortization
|
40,134
|
37,381
|
|
Deferred income tax recovery
|
(4,984)
|
(42)
|
|
Share-based compensation expense
|
266
|
294
|
|
Imputed interest
|
16,177
|
11,271
|
|
Payment of program rights
|
(159,115)
|
(94,171)
|
|
Net spend on film
investments
|
(21,584)
|
(15,265)
|
|
Other
|
632
|
(2)
|
|
Cash flow from operations
|
62,788
|
166,198
|
|
Net change in non-cash working capital balances related to operations
|
(38,197)
|
(127,495)
|
|
Cash provided by operating activities
|
24,591
|
38,703
|
|
INVESTING ACTIVITIES
|
|
|
|
Additions to property, plant
and equipment
|
(2,947)
|
(1,876)
|
|
Proceeds from
sale of property
|
93
|
25
|
|
Venture fund
distribution
|
—
|
43,478
|
|
Net cash flows
for intangibles, investments and other assets
|
(927)
|
(622)
|
|
Cash provided by (used in) investing activities
|
(3,781)
|
41,005
|
|
FINANCING
ACTIVITIES
|
|
|
|
Increase (decrease) in bank loans
|
31,057
|
(48,533)
|
|
Share repurchase under NCIB
|
(2,045)
|
—
|
|
Payment of lease liabilities
|
(4,375)
|
(4,015)
|
|
Dividends
paid
|
(12,003)
|
(12,497)
|
|
Dividends paid
to non-controlling interests
|
(6,363)
|
(2,925)
|
|
Other
|
(1,081)
|
(2,111)
|
|
Cash provided by (used in) financing activities
|
5,190
|
(70,081)
|
|
Net change
in cash and cash equivalents during the
period
|
26,000
|
9,627
|
|
Cash and cash
equivalents, beginning of the period
|
54,912
|
43,685
|
|
Cash and cash
equivalents, end of the period
|
80,912
|
53,312
|
CORUS ENTERTAINMENT INC.
BUSINESS SEGMENT
INFORMATION
|
(unaudited - in
thousands of Canadian dollars)
|
|
|
|
|
|
Three months
ended November 30, 2022
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
|
Revenue
|
401,529
|
29,662
|
—
|
431,191
|
|
Direct cost of sales, general
and administrative expenses
|
269,770
|
23,640
|
6,089
|
299,499
|
|
Segment profit
(loss)(1)
|
131,759
|
6,022
|
(6,089)
|
131,692
|
|
Depreciation and amortization
|
|
|
|
40,134
|
|
Interest
expense
|
|
|
|
34,372
|
|
Restructuring and other costs
|
|
|
|
2,829
|
|
Other expense, net
|
|
|
|
7,046
|
|
Income before income
taxes
|
|
|
|
47,311
|
|
Three months
ended November 30, 2021
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
|
Revenue
|
434,747
|
29,126
|
—
|
463,873
|
|
Direct cost of sales, general
and administrative expenses
|
255,861
|
23,380
|
7,462
|
286,703
|
|
Segment profit
(loss)(1)
|
178,886
|
5,746
|
(7,462)
|
177,170
|
|
Depreciation and amortization
|
|
|
|
37,381
|
|
Interest
expense
|
|
|
|
25,522
|
|
Restructuring and
other costs
|
|
|
|
1,043
|
|
Other expense, net
|
|
|
|
3,137
|
|
Income before income
taxes
|
|
|
|
110,087
|
|
(1)
|
Segment profit (loss)
does not have a standardized meaning prescribed by IFRS. For
definitions and explanations, see discussion under the Key
Performance Indicators and Non-GAAP Financial Measures section
of the First Quarter 2023 Report to Shareholders.
|
REVENUE BY TYPE
|
Three months ended
|
|
|
November 30,
|
|
(unaudited - in thousands of Canadian
dollars)
|
2022
|
2021
|
|
Advertising
|
280,767
|
312,774
|
|
Subscriber
|
127,515
|
127,535
|
|
Distribution, production and other
|
22,909
|
23,564
|
|
431,191
|
463,873
|
NON-GAAP FINANCIAL MEASURES
|
Three months
ended
|
|
|
(unaudited - in
thousands of Canadian dollars, except percentages)
|
|
November 30,
|
%
|
|
Optimized advertising revenue
|
2022
|
2021
|
Change
|
|
Optimized advertising revenue (numerator)
|
137,676
|
104,967
|
31 %
|
|
Television
advertising revenue (denominator)
|
252,513
|
285,037
|
-11 %
|
|
Optimized advertising revenue
percentage
|
55 %
|
37 %
|
|
Three months
ended
|
|
|
(unaudited - in thousands of Canadian dollars,
except percentages)
|
|
November 30,
|
%
|
|
New platform revenue
|
2022
|
2021
|
Change
|
|
New platform revenue (numerator)
|
39,689
|
35,215
|
13 %
|
|
Television
advertising revenue
|
252,513
|
285,037
|
-11 %
|
|
Television
subscriber revenue
|
127,515
|
127,535
|
0 %
|
|
Total
Television advertising and subscriber revenue (denominator)
|
380,028
|
412,572
|
-8 %
|
|
New platform revenue
percentage
|
10 %
|
9 %
|
|
Three months ended
|
|
(unaudited - in thousands of Canadian
dollars)
|
|
November 30,
|
|
Free Cash Flow
|
2022
|
2021
|
|
Cash provided by (used in):
|
|
|
|
Operating activities
|
24,591
|
38,703
|
|
Investing
activities
|
(3,781)
|
41,005
|
|
Add: cash used
in business acquisitions and strategic investments (1)
|
20,810
|
79,708
|
|
—
|
279
|
|
Free cash flow
|
20,810
|
79,987
|
|
(1) Strategic investments are comprised of investments in venture funds and associated companies.
|
|
(unaudited - in
thousands of Canadian
dollars)
|
Three months ended
|
|
November 30,
|
August 31,
|
|
Net Debt and Net
Debt to Segment Profit
|
2022
|
2022
|
|
Total debt, net of unamortized financing fees and prepayment options
|
1,293,544
|
1,261,650
|
|
Lease liabilities
|
131,620
|
134,369
|
|
Cash and cash
equivalents
|
(80,912)
|
(54,912)
|
|
Net debt
(numerator)
|
1,344,252
|
1,341,107
|
|
Segment profit (denominator) (1)
|
398,165
|
443,643
|
|
Net debt to segment profit
|
3.38
|
3.02
|
|
(1) Reflects aggregate amounts for
the most recent four quarters, as detailed in the table in the
Quarterly Consolidated Financial Information section of the
First Quarter 2023 Report to Shareholders.
|
View original
content:https://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2023-first-quarter-results-301721080.html
SOURCE Corus Entertainment Inc.