- Consolidated revenue increased 8% for the quarter and 6%
year-to-date
- Consolidated segment profit(1) decreased 5% for the
quarter and 8% year-to-date
- Consolidated segment profit margin(1) of 29% for the
quarter and 31% year-to-date
- Net income attributable to shareholders of $29.6 million ($0.14 per share basic) for the quarter and
$122.0 million ($0.59 per share basic) year-to-date
- Net debt to segment profit(1) of 2.76 times at
May 31, 2022, consistent with 2.76
times at August 31, 2021
- Free cash flow(1) of $27.5
million for the quarter and $194.9
million year-to-date
TORONTO, June 29,
2022 /PRNewswire/ -
Corus Entertainment Inc. (TSX: CJR.B) announced
its third quarter financial results today.
"Our portfolio of businesses is producing growth on all fronts,
delivering strong consolidated revenue gains for the fifth
consecutive quarter," said Doug
Murphy, President and Chief Executive Officer. "The
diversity and resiliency of our business is evident with these
results, as we benefit from multiple revenue initiatives including
organic investments to further expand our digital business, grow
our streaming product offering and build out our original content
slate in pursuit of international content licensing opportunities.
We have unveiled yet another strong fall schedule that once again
secures our foothold as Canada's
home of leading entertainment and lifestyle programming."
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
May
31,
|
%
|
|
|
May
31,
|
%
|
(in thousands of
Canadian dollars
except per share amounts)
|
|
2022
|
2021
|
Change
|
|
2022
|
2021
|
Change
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Television
|
|
|
|
|
404,130
|
379,822
|
6 %
|
|
1,178,538
|
1,110,443
|
6 %
|
|
Radio
|
|
|
|
|
29,328
|
23,177
|
27 %
|
|
80,454
|
71,785
|
12 %
|
|
|
|
|
|
|
433,458
|
402,999
|
8 %
|
|
1,258,992
|
1,182,228
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
(loss) (1)
|
|
|
|
|
|
|
|
|
|
|
|
Television
(2)(3)
|
|
|
|
127,518
|
140,012
|
(9 %)
|
|
399,127
|
439,133
|
(9 %)
|
|
Radio
(2)(3)
|
|
|
|
|
5,667
|
1,285
|
341 %
|
|
11,538
|
9,835
|
17 %
|
|
Corporate
(2)
|
|
|
|
(9,457)
|
(10,626)
|
(11 %)
|
|
(23,211)
|
(27,050)
|
(14 %)
|
|
|
|
|
|
|
123,728
|
130,671
|
(5 %)
|
|
387,454
|
421,918
|
(8 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
margin (1)
|
|
|
|
|
|
|
|
|
|
|
|
Television
|
|
|
|
|
32 %
|
37 %
|
|
|
34 %
|
40 %
|
|
|
Radio
|
|
|
|
|
19 %
|
6 %
|
|
|
14 %
|
14 %
|
|
|
Consolidated
|
|
|
|
29 %
|
32 %
|
|
|
31 %
|
36 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to shareholders
|
|
|
29,621
|
40,666
|
(27 %)
|
|
122,007
|
152,630
|
(20 %)
|
Basic earnings per
share
|
|
|
|
$0.14
|
$0.20
|
|
|
$0.59
|
$0.73
|
|
Diluted earnings per
share
|
|
|
|
$0.14
|
$0.19
|
|
|
$0.59
|
$0.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(1)
|
|
|
|
27,468
|
64,702
|
(58 %)
|
|
194,872
|
216,766
|
(10 %)
|
(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 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 Third Quarter 2022 Report to
Shareholders.
|
(2)
|
No claims for the
Canada Emergency Wage Subsidy
("CEWS") have been made in fiscal 2022. In the prior year, segment profit
for the quarter included $4.5 million
(Television: $3.9 million; Radio: $0.6 million) and $12.6
million year-to-date (Television: $10.0 million; Radio: $1.7
million; Corporate: $0.9 million) of CEWS.
|
(3)
|
In the prior year,
segment profit included relief on regulatory fees. As a result,
CRTC part I and II fees have increased by $1.0 million
(Television: $0.9 million; Radio: $0.1 million)
in the quarter and by $9.4 million
year-to-date (Television: $8.6 million; Radio:
$0.8 million) compared
to the same prior year periods.
|
Segment Revenue
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
Nine months
ended
|
|
|
|
|
|
|
|
|
May
31,
|
%
|
|
|
May
31,
|
%
|
(in thousands of
Canadian dollars)
|
|
|
2022
|
2021
|
Change
|
|
2022
|
2021
|
Change
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Television
|
|
|
|
404,130
|
379,822
|
6 %
|
|
1,178,538
|
1,110,443
|
6 %
|
|
|
Advertising
|
|
|
|
237,993
|
233,181
|
2 %
|
|
707,725
|
665,260
|
6 %
|
|
|
Subscriber
|
|
|
|
130,410
|
124,402
|
5 %
|
|
390,768
|
372,314
|
5 %
|
|
|
Merchandising,
distribution and other
|
35,727
|
22,239
|
61 %
|
|
80,045
|
72,869
|
10 %
|
|
Radio
|
|
|
|
29,328
|
23,177
|
27 %
|
|
80,454
|
71,785
|
12 %
|
Total
Revenue
|
|
|
|
433,458
|
402,999
|
8 %
|
|
1,258,992
|
1,182,228
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Optimized
advertising revenue (1)
|
|
47 %
|
38 %
|
29 %
|
|
42 %
|
30 %
|
45 %
|
New platform revenue
(1)
|
|
|
11 %
|
8 %
|
40 %
|
|
10 %
|
8 %
|
40 %
|
(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 Third Quarter 2022 Report to
Shareholders.
|
Operational Highlights
The Company advanced its Strategic Priorities on multiple
fronts. Corus expanded its digital and traditional video
advertising offerings; unveiled its extensive 2022/2023 programming
lineup for Global TV and Corus' portfolio of Specialty Networks,
announced its 2022/2023 original content production slate and
international sales were secured through
Corus' content business. The Company advanced
its capital allocation priorities through investments in the
business to support future growth opportunities, maintaining
dividends, bank debt repayments, and share repurchases.
- The Company's Corus Studios announced its largest U.S. output
deal ever with streaming platform Hulu. This new multi-year
agreement consists of over 400 episodes of lifestyle, renovation,
unscripted and crime content from Corus Studios, building on the
previously announced sale to Hulu of 200+ episodes last year.
- The Company and Paramount Global announced that Pluto TV, the
world's leading FAST (free ad-supported streaming television)
service, will launch in Canada
this fall. Pluto TV will encompass more than 100 unique, curated
channels and over 20,000 hours of content, offering a full spectrum
of free programming including drama, comedy, lifestyle, kids,
movies, around-the-clock news, and more. Corus will act as
advertising sales representative in Canada and provide multiple Canadian channels
to the service.
- The Company announced more than 200 additional hours of
Canadian original content across its portfolio of networks. The
lineup of premium original content for 2022/2023 includes 45
greenlights and renewals, and more than 600 episodes.
Departure and Family Law will return to the Global TV
schedule while the Corus Studios slate for 2022/2023 includes 24
titles, with returning hits Island of Bryan and Scott's
Vacation House Rules plus new series Pamela's Garden of Eden and Renovation
Resort.
- The Company's Global TV unveiled its extensive 2022/2023
programming lineup, featuring returning top hits Survivor,
9-1-1 and CSI: Vegas, and new series Fire Country,
Monarch and So Help Me Todd.
Financial Highlights
- Free cash flow(1) of $27.5
million in Q3 and $194.9
million year-to-date compared to $64.7 million and $216.8
million year-to-date, respectively, in the same comparable
prior year periods. The decrease in free cash flow in the third
quarter is attributable to a decrease in cash provided by operating
activities of $37.5 million. The
decrease in free cash flow for the nine months ended May 31, 2022 is mainly attributable to a decrease
in cash provided by operating activities of $63.4 million, offset by a $43.5 million venture fund distribution.
- Net debt to segment profit(1) was 2.76 times at
May 31, 2022, up from 2.70 at
February 28, 2022, but consistent
with August 31, 2021. Although net
debt decreased from the repayment of bank loans, partially offset
by the issuance of Senior Unsecured Notes due 2030 and production
financing for an acquired subsidiary, the main driver to the
increase in this ratio is the decrease of segment
profit(1) for the most recent four quarters.
- In the third quarter, the Company purchased 4,018,000 of its
Class B Non-Voting Participating Shares under a normal course
issuer bid at an average acquisition price of $4.29.
- As of May 31, 2022, the Company
had $51.7 million of cash and cash
equivalents and the committed $300.0
million Revolving Facility that remains undrawn.
(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 Measures
section of the Third Quarter 2022 Report to Shareholders and/or Management's Discussion and Analysis in the Company's
Annual Report for the year ended August
31, 2021.
|
Corus Entertainment Inc. reports its financial results
in Canadian dollars.
The unaudited interim
condensed consolidated financial statements and accompanying notes for the three and nine months
ended May 31, 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 June 29, 2022 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
1.647.484.0477 and for North
America is 1.800.289.0571. More information can be found on
the Corus Entertainment website at www.corusent.com in the
Investor Relations section.
COVID-19 Update
Many provinces and territories have lifted many of the health
restrictions related to COVID-19, which has led to a phased return
to on-site work across various sectors. However, disruptions caused
by prior imposition or removal of public health restrictions,
public sentiment about the pandemic and continuing COVID-19
infection rates, including labour shortages, employee absenteeism
at the Company or its clients and suppliers, changes in consumer
demand, and supply chain shortages or disruptions, particularly in
the retail, tourism and entertainment sectors, can negatively
impact the Company's operations and financial performance,
including advertising demand and revenue. There can be no certainty
that current vaccination and public health measures can mitigate
negative impacts caused by the COVID-19 pandemic on the Company's
business in the short to medium term.
Other Economic and Market Conditions
As discussed further in the 2021 MD&A under the heading "Economic Conditions", 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, may
affect discretionary consumer and business spending, resulting
in increased or decreased demand for Corus' product offerings.
In addition, elevated consumer price index inflation driven by
sharp increases in energy and food prices as well as supply
disruptions and strong demand for goods can also affect the
Company's business operations and financial performance. All of the
foregoing factors may adversely affect the Company through
disruption to supply chains, increased costs of labour or
disruption to availability of labour, related 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. Finally, in all cases, the Company's business and
financial condition are subject to audience and consumer acceptance
of Corus' brands, programming and talent.
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, adjusted net income, adjusted basic
earnings per share, net debt to segment profit, optimized
advertising revenue, and new platform revenue 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 and
nine months ended May 31, 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 2022, distribution, merchandise and subscription
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 negative 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 potential impact of new
competition and industry mergers and acquisitions, interest rates,
stability of the advertising, distribution, merchandise and
subscription markets, operating and capital costs and tariffs,
taxes and fees, the Company's ability to source desirable content
and the Company's capital and operating results being consistent
with the Company's 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 and retain advertising revenue;
audience acceptance of the Company's television programs and cable
networks; the Company's ability to recoup production costs; the
availability of tax credits and the existence of co-production
treaties; the Company's ability to compete in any of the industries
in which it does business; the 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;
the Company's ability to integrate and realize anticipated benefits
from its acquisitions and to effectively manage it's 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 crises, including the current outbreak of COVID-19 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,
2021 and under the heading "Risk Factors" in the Company's
Annual Information Form for the year ended August 31, 2021. 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. Unless
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, Nick+, the Global TV App and Curiouscast. For
more information visit www.corusent.com.
CORUS ENTERTAINMENT INC.
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
(unaudited - in
thousands of Canadian dollars)
|
As at May 31,
|
As at August
31,
|
2022
|
2021
|
ASSETS
|
|
|
Current
|
|
|
Cash and cash
equivalents
|
51,693
|
43,685
|
Accounts
receivable
|
412,801
|
325,587
|
Income taxes
recoverable
|
—
|
5,597
|
Prepaid expenses and
other assets
|
22,105
|
24,106
|
Total
current assets
|
486,599
|
398,975
|
Tax credits receivable
|
37,345
|
24,501
|
Investments and
other assets
|
68,593
|
98,667
|
Property,
plant and equipment
|
294,605
|
316,226
|
Program
rights
|
699,451
|
576,076
|
Film
investments
|
55,665
|
39,732
|
Intangibles
|
1,647,820
|
1,687,432
|
Goodwill
|
666,308
|
664,958
|
Deferred income tax assets
|
50,471
|
50,050
|
|
4,006,857
|
3,856,617
|
LIABILITIES AND
EQUITY
|
|
|
Current
|
|
|
Accounts payable
and accrued liabilities
|
612,460
|
509,817
|
Current portion
of long-term debt
|
10,811
|
35,328
|
Provisions
|
7,368
|
7,202
|
Income taxes payable
|
101
|
—
|
Total current
liabilities
|
630,740
|
552,347
|
Long-term
debt
|
1,257,184
|
1,313,965
|
Other long-term liabilities
|
393,922
|
331,482
|
Provisions
|
8,969
|
9,497
|
Deferred income tax liabilities
|
419,192
|
428,963
|
Total liabilities
|
2,710,007
|
2,636,254
|
EQUITY
|
|
|
Share capital
|
790,831
|
816,189
|
Contributed
surplus
|
1,510,198
|
1,512,431
|
Accumulated
deficit
|
(1,192,931)
|
(1,282,897)
|
Accumulated
other comprehensive income
|
31,877
|
21,811
|
Total
equity attributable to shareholders
|
1,139,975
|
1,067,534
|
Equity attributable to non-controlling interest
|
156,875
|
152,829
|
Total equity
|
1,296,850
|
1,220,363
|
|
4,006,857
|
3,856,617
|
CORUS ENTERTAINMENT INC.
|
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
|
|
Three months ended
|
Nine months
ended
|
|
May 31,
|
May
31,
|
(unaudited - in thousands of Canadian dollars except per share
amounts)
|
2022
|
2021
|
2022
|
2021
|
Revenue
|
433,458
|
402,999
|
1,258,992
|
1,182,228
|
Direct cost of sales,
general and administrative expenses
|
309,730
|
272,328
|
871,538
|
760,310
|
Depreciation and
amortization
|
39,952
|
38,117
|
117,080
|
114,405
|
Interest
expense
|
28,514
|
26,807
|
79,795
|
75,890
|
Debt
refinancing
|
(3,830)
|
3,408
|
(3,428)
|
3,408
|
Restructuring and
other costs
|
4,169
|
1,561
|
6,223
|
8,885
|
Other expense (income), net
|
10,795
|
(4,755)
|
7,592
|
(11,612)
|
Income before income taxes
|
44,128
|
65,533
|
180,192
|
230,942
|
Income tax expense
|
11,136
|
17,258
|
46,323
|
60,222
|
Net income for the period
|
32,992
|
48,275
|
133,869
|
170,720
|
Other comprehensive income, net of income
taxes:
|
|
|
|
|
Items that may be reclassified subsequently to income:
|
|
|
|
|
Unrealized change in fair value
of cash flow hedges
|
1,506
|
4,611
|
5,007
|
9,640
|
Unrealized foreign currency translation adjustment
|
8
|
(1,295)
|
40
|
(1,707)
|
|
1,514
|
3,316
|
5,047
|
7,933
|
Items that will
not be reclassified to income:
|
|
|
|
|
Unrealized change in fair value
of financial assets
|
(5,649)
|
18,055
|
5,019
|
16,468
|
Actuarial gain on post-retirement benefit
plans
|
4,467
|
4,171
|
6,927
|
13,900
|
|
(1,182)
|
22,226
|
11,946
|
30,368
|
Other comprehensive income, net of income
taxes
|
332
|
25,542
|
16,993
|
38,301
|
Comprehensive income for the period
|
33,324
|
73,817
|
150,862
|
209,021
|
|
|
|
|
|
Net income attributable to:
|
|
|
|
|
Shareholders
|
29,621
|
40,666
|
122,007
|
152,630
|
Non-controlling
interest
|
3,371
|
7,609
|
11,862
|
18,090
|
|
32,992
|
48,275
|
133,869
|
170,720
|
|
|
|
|
|
Comprehensive income attributable to:
|
|
|
|
|
Shareholders
|
29,953
|
66,208
|
139,000
|
190,931
|
Non-controlling
interest
|
3,371
|
7,609
|
11,862
|
18,090
|
|
33,324
|
73,817
|
150,862
|
209,021
|
|
|
|
|
|
Earnings per share
attributable to shareholders:
|
|
|
|
|
Basic
|
$0.14
|
$0.20
|
$0.59
|
$0.73
|
Diluted
|
$0.14
|
$0.19
|
$0.59
|
$0.73
|
CORUS ENTERTAINMENT INC.
|
|
|
|
|
|
|
|
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,
2021
|
816,189
|
1,512,431
|
(1,282,897)
|
21,811
|
1,067,534
|
152,829
|
1,220,363
|
Comprehensive
income
|
—
|
—
|
122,007
|
16,993
|
139,000
|
11,862
|
150,862
|
Dividends
declared
|
—
|
—
|
(37,411)
|
—
|
(37,411)
|
(14,145)
|
(51,556)
|
Business
acquisition
|
—
|
—
|
—
|
—
|
—
|
864
|
864
|
Change in fair value
of put option
liability arising from business
acquisition
|
—
|
—
|
(1,557)
|
—
|
(1,557)
|
(254)
|
(1,811)
|
Shares repurchased under
normal course issuer bid
("NCIB")
|
(21,127)
|
(2,852)
|
—
|
—
|
(23,979)
|
—
|
(23,979)
|
Share
repurchase commitment
under NCIB
|
(4,231)
|
(316)
|
—
|
—
|
(4,547)
|
—
|
(4,547)
|
Actuarial gain on post-retirement
benefit plans
|
—
|
—
|
6,927
|
(6,927)
|
—
|
—
|
—
|
Share-based compensation expense
|
—
|
935
|
—
|
—
|
935
|
—
|
935
|
Equity funding by a non-
controlling interest
|
—
|
—
|
—
|
—
|
—
|
5,719
|
5,719
|
As at May
31, 2022
|
790,831
|
1,510,198
|
(1,192,931)
|
31,877
|
1,139,975
|
156,875
|
1,296,850
|
(unaudited - in
thousands of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Accumulated
deficit
|
Accumulated
other
comprehensive income (deficit)
|
Total
equity attributable to shareholders
|
Non-
controlling interest
|
Total
equity
|
As at August 31,
2020
|
816,189
|
1,511,325
|
(1,425,432)
|
(2,258)
|
899,824
|
148,595
|
1,048,419
|
Comprehensive
income
|
—
|
—
|
152,630
|
38,301
|
190,931
|
18,090
|
209,021
|
Dividends
declared
|
—
|
—
|
(37,493)
|
—
|
(37,493)
|
(11,543)
|
(49,036)
|
Actuarial gain on post-retirement
benefit plans
|
—
|
—
|
13,900
|
(13,900)
|
—
|
—
|
—
|
Share-based compensation expense
|
—
|
830
|
—
|
—
|
830
|
—
|
830
|
Return of capital to non-controlling
interest
|
—
|
—
|
—
|
—
|
—
|
(1,622)
|
(1,622)
|
Equity funding by a
non-controlling interest
|
—
|
—
|
—
|
—
|
—
|
2,126
|
2,126
|
Reallocation of equity interest
|
—
|
—
|
617
|
—
|
617
|
(617)
|
—
|
As at May 31, 2021
|
816,189
|
1,512,155
|
(1,295,778)
|
22,143
|
1,054,709
|
155,029
|
1,209,738
|
CORUS ENTERTAINMENT INC.
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
May 31,
|
|
May 31,
|
(unaudited - in thousands of Canadian
dollars)
|
2022
|
2021
|
2022
|
2021
|
OPERATING ACTIVITIES
|
|
|
|
|
Net income
for the period
|
32,992
|
48,275
|
133,869
|
170,720
|
Adjustments to reconcile net income to cash flow
from operations:
|
|
|
|
|
Amortization of program rights
|
150,093
|
139,301
|
426,213
|
375,161
|
Amortization of film investments
|
12,051
|
2,980
|
19,135
|
9,900
|
Depreciation and amortization
|
39,952
|
38,117
|
117,080
|
114,405
|
Deferred income tax recovery
|
(4,861)
|
(6,419)
|
(7,342)
|
(22,656)
|
Share-based compensation expense
|
324
|
269
|
935
|
830
|
Imputed interest
|
11,827
|
10,710
|
34,967
|
32,753
|
Debt
refinancing
|
(3,830)
|
3,408
|
(3,428)
|
3,408
|
Payment of program rights
|
(173,366)
|
(169,787)
|
(403,574)
|
(372,044)
|
Net spend on film
investments
|
(11,803)
|
(4,013)
|
(39,397)
|
(21,319)
|
CRTC
benefit payments
|
—
|
—
|
—
|
(635)
|
Other
|
10,882
|
(599)
|
5,826
|
680
|
Cash flow from operations
|
64,261
|
62,242
|
284,284
|
291,203
|
Net change in non-cash working capital balances related to operations
|
(34,463)
|
5,071
|
(123,284)
|
(66,801)
|
Cash provided by operating activities
|
29,798
|
67,313
|
161,000
|
224,402
|
INVESTING ACTIVITIES
|
|
|
|
|
Additions to property, plant
and equipment
|
(2,819)
|
(2,002)
|
(8,866)
|
(6,184)
|
Proceeds from
sale of property
|
—
|
172
|
125
|
319
|
Business combination, net of cash
acquired
|
—
|
—
|
3,606
|
—
|
Venture fund
distribution
|
—
|
—
|
43,478
|
—
|
Net cash flows
for intangibles, investments and other assets
|
489
|
(732)
|
(1,729)
|
(2,512)
|
Cash provided by (used in) investing activities
|
(2,330)
|
(2,562)
|
36,614
|
(8,377)
|
FINANCING
ACTIVITIES
|
|
|
|
|
Decrease in bank loans
|
(27,872)
|
(507,527)
|
(347,630)
|
(602,163)
|
Financing
fees
|
(1,492)
|
(12,119)
|
(5,892)
|
(12,119)
|
Issuance of senior unsecured notes
|
—
|
500,000
|
250,000
|
500,000
|
Share repurchase under NCIB
|
(17,231)
|
—
|
(23,081)
|
—
|
Return of capital to non-controlling interest
|
—
|
—
|
—
|
(1,622)
|
Equity funding
by a non-controlling interest
|
—
|
—
|
3,742
|
2,126
|
Payment of lease liabilities
|
(4,441)
|
(4,170)
|
(12,609)
|
(12,136)
|
Dividends
paid
|
(12,415)
|
(12,497)
|
(37,411)
|
(37,493)
|
Dividends paid
to non-controlling interest
|
(7,520)
|
(3,136)
|
(14,145)
|
(11,543)
|
Other
|
(254)
|
(406)
|
(2,580)
|
(2,857)
|
Cash used in financing activities
|
(71,225)
|
(39,855)
|
(189,606)
|
(177,807)
|
Net change
in cash and cash equivalents during the
period
|
(43,757)
|
24,896
|
8,008
|
38,218
|
Cash and cash
equivalents, beginning of the period
|
95,450
|
59,222
|
43,685
|
45,900
|
Cash and cash
equivalents, end of the period
|
51,693
|
84,118
|
51,693
|
84,118
|
CORUS ENTERTAINMENT INC.
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
|
|
|
|
(unaudited - in
thousands of Canadian dollars)
|
|
|
|
|
Three months ended
May 31, 2022
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
Revenue
|
404,130
|
29,328
|
—
|
433,458
|
Direct cost of sales, general
and administrative expenses
|
276,612
|
23,661
|
9,457
|
309,730
|
Segment profit (loss)(1)
|
127,518
|
5,667
|
(9,457)
|
123,728
|
Depreciation and
amortization
|
|
|
|
39,952
|
Interest
expense
|
|
|
|
28,514
|
Debt
refinancing
|
|
|
|
(3,830)
|
Restructuring and
other costs
|
|
|
|
4,169
|
Other expense, net
|
|
|
|
10,795
|
Income before income
taxes
|
|
|
|
44,128
|
Three months
ended May 31, 2021
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
Revenue
|
379,822
|
23,177
|
—
|
402,999
|
Direct cost of sales, general
and administrative expenses
|
239,810
|
21,892
|
10,626
|
272,328
|
Segment profit (loss)(1)
|
140,012
|
1,285
|
(10,626)
|
130,671
|
Depreciation and
amortization
|
|
|
|
38,117
|
Interest
expense
|
|
|
|
26,807
|
Debt
refinancing
|
|
|
|
3,408
|
Restructuring and
other costs
|
|
|
|
1,561
|
Other income, net
|
|
|
|
(4,755)
|
Income before income
taxes
|
|
|
|
65,533
|
Nine months ended May 31,
2022
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
Revenue
|
1,178,538
|
80,454
|
—
|
1,258,992
|
Direct cost of sales, general
and administrative expenses
|
779,411
|
68,916
|
23,211
|
871,538
|
Segment profit (loss)(1)
|
399,127
|
11,538
|
(23,211)
|
387,454
|
Depreciation and
amortization
|
|
|
|
117,080
|
Interest
expense
|
|
|
|
79,795
|
Debt
refinancing
|
|
|
|
(3,428)
|
Restructuring and
other costs
|
|
|
|
6,223
|
Other expense, net
|
|
|
|
7,592
|
Income before income
taxes
|
|
|
|
180,192
|
Nine months ended
May 31, 2021
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
Revenue
|
1,110,443
|
71,785
|
—
|
1,182,228
|
Direct cost of sales, general
and administrative expenses
|
671,310
|
61,950
|
27,050
|
760,310
|
Segment profit (loss)(1)
|
439,133
|
9,835
|
(27,050)
|
421,918
|
Depreciation and
amortization
|
|
|
|
114,405
|
Interest
expense
|
|
|
|
75,890
|
Debt
refinancing
|
|
|
|
3,408
|
Restructuring and other costs
|
|
|
|
8,885
|
Other income, net
|
|
|
|
(11,612)
|
Income before income
taxes
|
|
|
|
230,942
|
(1)
|
Segment profit (loss)
does not have a standardized meaning prescribed by IFRS. For
definitions and explanations, see discussion under the Key
Performance Indicators section of the Third Quarter 2022 Report to
Shareholders.
|
REVENUE BY TYPE
|
|
|
|
|
|
Three months ended
|
Nine months
ended
|
|
|
May 31,
|
|
May 31,
|
(unaudited - in thousands of Canadian
dollars)
|
2022
|
2021
|
2022
|
2021
|
Advertising
|
265,915
|
255,082
|
784,228
|
733,160
|
Subscriber
|
130,410
|
124,402
|
390,768
|
372,314
|
Merchandising, distribution and
other
|
37,133
|
23,515
|
83,996
|
76,754
|
|
433,458
|
402,999
|
1,258,992
|
1,182,228
|
NON-GAAP FINANCIAL MEASURES
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
(unaudited - in
thousands of Canadian dollars, except percentages)
|
May 31,
|
%
|
May
31,
|
%
|
Optimized advertising revenue
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
Optimized advertising revenue (numerator)
|
112,677
|
87,496
|
29 %
|
294,880
|
202,739
|
45 %
|
Television
advertising revenue (denominator)
|
237,993
|
233,181
|
2 %
|
707,725
|
665,260
|
6 %
|
Optimized advertising revenue
percentage
|
47 %
|
38 %
|
42 %
|
30 %
|
|
Three months ended
|
|
Nine months
ended
|
|
(unaudited - in thousands of Canadian dollars, except percentages)
|
May 31,
|
%
|
May 31,
|
%
|
New platform revenue
|
2022
|
2021
|
Change
|
2022
|
2021
|
Change
|
New platform revenue (numerator)
|
40,992
|
29,199
|
40 %
|
109,223
|
77,842
|
40 %
|
Television
advertising revenue
|
237,993
|
233,181
|
2 %
|
707,725
|
665,260
|
6 %
|
Television
subscriber revenue
|
130,410
|
124,402
|
5 %
|
390,768
|
372,314
|
5 %
|
Total
Television advertising and subscriber revenue (denominator)
|
368,403
|
357,583
|
3 %
|
1,098,493
|
1,037,574
|
6 %
|
New platform revenue
percentage
|
11 %
|
8 %
|
|
10 %
|
8 %
|
|
|
Three months
ended
|
Nine months
ended
|
(unaudited - in
thousands of Canadian dollars)
|
May 31,
|
May
31,
|
Free Cash Flow
|
2022
|
2021
|
2022
|
2021
|
Cash provided by (used in):
|
|
|
|
|
Operating activities
|
29,798
|
67,313
|
161,000
|
224,402
|
Investing
activities
|
(2,330)
|
(2,562)
|
36,614
|
(8,377)
|
Add: cash used in (provided by) business acquisitions and strategic investments (1)
|
27,468
|
64,751
|
197,614
|
216,025
|
—
|
(49)
|
(2,742)
|
741
|
Free cash flow
|
27,468
|
64,702
|
194,872
|
216,766
|
(1)
|
Strategic investments
are comprised of investments in venture funds and associated
companies.
|
|
Nine months
ended
|
(unaudited - in
thousands of Canadian dollars)
|
May
31,
|
August
31,
|
Net Debt and Net
Debt to Segment Profit
|
2022
|
2021
|
Total debt,
net of unamortized financing fees and prepayment options
|
1,267,995
|
1,349,293
|
Lease liabilities
|
136,722
|
143,546
|
Cash and cash
equivalents
|
(51,693)
|
(43,685)
|
Net debt
(numerator)
|
1,353,024
|
1,449,154
|
Segment profit (denominator) (1)
|
490,154
|
524,618
|
Net debt to segment profit
|
2.76
|
2.76
|
(1)
|
Reflects aggregate
amounts for the most recent four quarters, as detailed in the table
in the "Quarterly Consolidated Financial Information" section of
the Third Quarter 2022 Report to Shareholders.
|
View original
content:https://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2022-third-quarter-results-301577793.html
SOURCE Corus Entertainment Inc.