Astral Media reports strong year-end results and reaches new milestones
Revenues break $900 million mark and EBITDA(2) reaches $300 million
Record net earnings from continuing operations(1) and basic EPS from
continuing operations(1) for the year
Record $216.6 million in cash flow from continuing operations(4) for
the year
Non-cash net impairment charge on radio broadcast licences of $317.5
million
Consolidated revenues totalled
Consolidated net earnings from continuing operations, before the impairment charge on broadcast licences and future income tax recoveries, grew 6% in Fiscal 2009 to
"I am delighted by Astral's effective response to the effects of the current economic downturn which has adversely affected advertising markets across the country. I am particularly pleased with the performance and continued contribution of each of our business units, that enabled Astral to grow despite these challenging times, and to reach new milestones with record revenues, EBITDA(2), and cash flows in Fiscal 2009," said
"Our operational discipline during this downturn allowed us to gain efficiencies and to further deleverage our balance sheet by reducing debt by
FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR FISCAL 2009 (12-month period)
Television
- Revenue growth of 3% to $513.3 million;
- Specialty-television subscriber revenue growth of 7%;
- Pay-television subscriber revenue growth of 6%;
- Advertising revenue decline of 4% explained in part by one less week in
Fiscal 2009 compared to the Fiscal 2008 broadcasting calendar;
- EBITDA(2) growth of 5% to $188.4 million;
- Launch of HBO Canada.
Radio
- Revenue growth of 9% to $323.0 million partly explained by an
additional two-month contribution in Fiscal 2009 of the assets acquired
from Standard Radio;
- Granting by the CRTC of a radio licence in the Ottawa-Gatineau market;
- Rebranding of 18 radio stations, including the integration of global
radio brands Virgin Radio and NRJ.
Outdoor Advertising
- Revenue decline of 4% to $69.5 million explained in part by one less
week in Fiscal 2009 compared to the Fiscal 2008 broadcasting calendar;
- EBITDA(2) growth of 11% to $26.2 million;
- Launch of a new Digital outdoor advertising network.
In the fourth quarter of Fiscal 2009, in accordance with current accounting requirements, the Company recorded a
The audited consolidated financial statements with related notes and Management's Discussion and Analysis are available on the Company's website: www.astralmedia.com.
There will be a conference call with analysts and media at
This press release contains certain forward-looking statements concerning the future performance of the Company. These forward-looking statements are based on current expectations. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including technological change, economic conditions, regulatory change, competitive factors and changes in accounting rules or standards, many of which are beyond the Company's control. We disclaim any intention or obligation to update or revise any forward-looking statements.
Astral Media is a leading Canadian media company, active in specialty and pay television, radio, outdoor advertising and interactive media. Astral Media's solid and dynamic presence in the country's major markets rests on its commitment to offer a unique combination of high-quality, targeted media for all its audiences. For more details, visit www.astralmedia.com.
1. Excluding the impact of the $317.5 million ($5.66 per share) non-cash
net impairment charge on the Company's radio broadcast licences. See
Appendix 1.
2. EBITDA is defined as earnings before interest, taxes, depreciation and
amortization, and excludes restructuring charges. See Appendix 1.
3. Excluding the favourable impact of the $28.3 million ($0.51 per share)
non-cash future income tax recovery resulting from enacted income tax
rate changes. See Appendix 1.
4. See Appendix 1.
ASTRAL MEDIA INC.
Consolidated Statements of Earnings
for the periods ended August 31, 2009 and 2008
(in thousands of Canadian dollars except for per-share data)
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-------------------------------------------------------------------------
3 months 12 months
----------------------- -----------------------
2009 2008 2009 2008
-----------------------------------------------
(unaudited)
Revenues $ 219,427 $ 229,872 $ 905,725 $ 865,370
Operating expenses 142,691 148,818 605,346 575,792
-----------------------------------------------
EBITDA(1) 76,736 81,054 300,379 289,578
Depreciation 5,941 6,068 24,764 21,617
Amortization of
intangible assets 1,116 318 2,756 1,195
Interest expense, net 7,978 11,101 36,968 37,465
Restructuring charges 1,076 - 4,383 -
-----------------------------------------------
Earnings from con-
tinuing operations
before undernoted(1) 60,625 63,567 231,508 229,301
-----------------------------------------------
Impairment charge on
broadcast licences 399,459 - 399,459 -
-----------------------------------------------
Earnings (loss) from
continuing operations
before income taxes (338,834) 63,567 (167,951) 229,301
-----------------------------------------------
Income tax provision
before undernoted 16,773 22,761 72,044 78,839
Future income tax
recovery resulting
from impairment
charge on broadcast
licences (81,970) - (81,970) -
Future income tax
recovery resulting
from income tax rate
changes - - - (28,259)
-----------------------------------------------
(65,197) 22,761 (9,926) 50,580
-----------------------------------------------
Net earnings (net loss)
from continuing
operations (273,637) 40,806 (158,025) 178,721
Net loss from dis-
continued operations - (1,868) - (1,711)
-----------------------------------------------
Net earnings (net
loss) $ (273,637) $ 38,938 $ (158,025) $ 177,010
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Earnings (loss)
per share from
continuing
operations
- Basic $ (4.87) $ 0.72 $ (2.82) $ 3.18
-----------------------------------------------
- Diluted $ (4.87) $ 0.72 $ (2.82) $ 3.12
-----------------------------------------------
Earnings (loss)
per share
- Basic $ (4.87) $ 0.69 $ (2.82) $ 3.15
-----------------------------------------------
- Diluted $ (4.87) $ 0.68 $ (2.82) $ 3.09
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Weighted average
number of shares
outstanding -
basic (in
thousands) 56,170 56,362 56,100 56,257
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-------------------
(1) See Appendix 1
ASTRAL MEDIA INC.
Consolidated Statements of Cash Flows
for the periods ended August 31, 2009 and 2008
(in thousands of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
3 months 12 months
----------------------- -----------------------
2009 2008 2009 2008
-----------------------------------------------
(unaudited)
Cash and cash equi-
valents provided
by (used for):
OPERATING ACTIVITIES
Net earnings
(net loss) from
continuing
operations $ (273,637) $ 40,806 $ (158,025) $ 178,721
Non-cash charges
(credits):
Depreciation
and amorti-
zation 7,057 6,386 27,520 22,812
Stock-based
compensation 1,141 1,415 5,912 6,270
Impairment
charge on
broadcast
licences 399,459 - 399,459 -
Future income
tax expense
(recovery)
net before
undernoted (72,857) 10,533 (61,564) 22,715
Future income
tax recovery
resulting from
income tax rate
changes - - - (28,259)
Imputed interest
on other
non-current
liabilities 734 743 2,637 2,507
Amortization
of deferred
financing
costs 172 172 687 576
-----------------------------------------------
Cash flow from
continuing
operations(1) 62,069 60,055 216,626 205,342
Net change in
non-cash
operating
items (545) (4,263) 12,712 (56,352)
-----------------------------------------------
Cash flow from
continuing
operating
activities 61,524 55,792 229,338 148,990
-----------------------------------------------
DISCONTINUED
OPERATIONS (63) (237) (1,677) (591)
-----------------------------------------------
INVESTING
ACTIVITIES
Short-term
investments -
purchased - (9,962) - (9,962)
Short-term
investments -
cashed - - 9,962 51,128
Additions to
property, plant
and equipment (17,603) (18,036) (51,304) (35,995)
Additions to
other non-
current assets (326) (733) (10,358) (2,685)
Business
acquisition,
net of cash
acquired - (3,040) (2,787) (907,156)
-----------------------------------------------
(17,929) (31,771) (54,487) (904,670)
-----------------------------------------------
FINANCING ACTIVITIES
Deferred
financing costs - - - (2,835)
Increase in
long-term debt - - - 825,000
Repayment of
long-term debt (45,000) (10,000) (120,000) (10,000)
Shares
repurchased - (28,502) - (55,416)
Stock options
exercised 151 226 1,654 3,182
Dividends (14,046) (14,144) (28,084) (28,541)
-----------------------------------------------
(58,895) (52,420) (146,430) 731,390
-----------------------------------------------
Net change in
cash and cash
equivalents (15,363) (28,636) 26,744 (24,881)
Cash and cash
equivalents
(bank overdraft)
- beginning of
period 38,463 24,992 (3,644) 21,237
-----------------------------------------------
Cash and cash
equivalents
(bank overdraft)
- end of period $ 23,100 $ (3,644) $ 23,100 $ (3,644)
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-------------------
(1) See Appendix 1
ASTRAL MEDIA INC.
Consolidated Balance Sheets as at August 31
(in thousands of Canadian dollars)
-------------------------------------------------------------------------
2009 2008
--------------------------
ASSETS
Current
Cash and cash equivalents $ 23,100 $ -
Short-term investments - 9,962
Accounts receivable 143,803 155,841
Income taxes receivable - 919
Program and film rights 92,545 79,305
Prepaid expenses and other current assets 28,273 28,954
--------------------------
287,721 274,981
Program and film rights 61,219 69,502
Other non-current assets 52,828 47,751
Property, plant and equipment 158,960 133,484
Broadcast licences 1,408,037 1,807,496
Goodwill 356,945 356,945
Future income tax assets 79,522 26,448
--------------------------
$ 2,405,232 $ 2,716,607
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LIABILITIES
Current
Bank overdraft $ - $ 3,644
Accounts payable and accrued liabilities 138,771 129,906
Income taxes payable 12,191 -
Program and film rights payable 58,220 64,060
Future income tax liabilities 4,481 5,951
--------------------------
213,663 203,561
Long-term debt 692,761 812,074
Future income tax liabilities 246,098 254,912
Other non-current liabilities 64,196 78,445
Derivative financial instruments 22,377 18,374
Liabilities of discontinued operations 1,071 2,748
--------------------------
1,240,166 1,370,114
--------------------------
SHAREHOLDERS' EQUITY
Capital stock 753,028 748,121
--------------------------
Contributed surplus 17,068 14,409
--------------------------
Retained earnings 411,079 597,188
Accumulated other comprehensive loss (16,109) (13,225)
--------------------------
394,970 583,963
--------------------------
1,165,066 1,346,493
--------------------------
$ 2,405,232 $ 2,716,607
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ASTRAL MEDIA INC.
Business Segments
for the periods ended August 31
(in thousands)
3 months 12 months
----------------------- -----------------------
2009 2008 2009 2008
-----------------------------------------------
(unaudited)
REVENUES
Television $ 124,898 $ 119,786 $ 513,265 $ 497,007
Radio 76,180 88,720 323,002 296,302
Outdoor Advertising 18,349 21,366 69,458 72,061
-----------------------------------------------
$ 219,427 $ 229,872 $ 905,725 $ 865,370
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EBITDA(1)
Television $ 42,756 $ 41,815 $ 188,445 $ 179,513
Radio 28,607 37,191 110,366 111,140
Outdoor Advertising 10,258 8,370 26,175 23,645
Corporate Costs (4,885) (6,322) (24,607) (24,720)
-----------------------------------------------
$ 76,736 $ 81,054 $ 300,379 $ 289,578
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-------------------
(1) See Appendix 1
ASTRAL MEDIA INC.
Appendix 1
Supplementary Measures
for the periods ended August 31, 2009 and 2008
(unaudited)
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In addition to discussing earnings measures in accordance with Canadian generally accepted accounting principles ("GAAP"), this Press Release provides the following supplementary measures which are also factors used by management in monitoring and evaluating the performance of the Company and its business segments:
EBITDA (earnings before interest, taxes, depreciation and amortization) is provided to assist investors in determining the ability of the Company to generate cash flow from operating activities and to cover financial charges. Other items such as restructuring charges and the impairment charge on broadcast licences are excluded from earnings in the determination of EBITDA as they are not considered to be in the ordinary course of business. EBITDA is also an indicator widely used for business valuation purposes. EBITDA margin is defined as the ratio obtained by dividing EBITDA by revenues.
The following table reconciles GAAP measures disclosed in the consolidated statements of earnings for the periods ended
3 months 12 months
----------------------- -----------------------
(in thousands of $) 2009 2008 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) from
continuing operations
before income taxes (338,834) 63,567 (167,951) 229,301
Impairment charge on
broadcast licences 399,459 - 399,459 -
Depreciation and
amortization 7,057 6,386 27,520 22,812
Interest expense, net 7,978 11,101 36,968 37,465
Restructuring charges 1,076 - 4,383 -
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EBITDA 76,736 81,054 300,379 289,578
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Earnings from continuing operations before undernoted. This measure provides an indication of the Company's ability to generate earnings and cash flows from its ongoing operations, by excluding the impact of the non-cash impairment charge on broadcast licences.
The following table reconciles GAAP measures disclosed in the consolidated statements of earnings for the periods ended
3 months 12 months
----------------------- -----------------------
(in thousands of $) 2009 2008 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) from
continuing operations
before income taxes (338,834) 63,567 (167,951) 229,301
Impairment charge on
broadcast licences 399,459 - 399,459 -
-------------------------------------------------------------------------
Earnings from continuing
operations before
undernoted 60,625 63,567 231,508 229,301
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Net earnings and basic earnings per share from continuing operations before impairment of broadcast licences and future income tax recoveries. These measures provide an indication of the Company's ability to generate earnings and cash flows from its ongoing operations, by excluding the non-cash future income tax recovery or expense resulting from income tax rate changes over which the Company has no control and the impact of the non-cash impairment charge on broadcast licences.
The following tables reconcile GAAP measures disclosed in the consolidated statements of earnings for the periods ended
3 months 12 months
----------------------- -----------------------
(in thousands of $) 2009 2008 2009 2008
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings (net loss)
from continuing
operations (273,637) 40,806 (158,025) 178,721
Impairment charge on
broadcast licences 399,459 - 399,459 -
Future income tax
recovery resulting
from impairment charge
on broadcast licences (81,970) - (81,970) -
Future income tax
recovery resulting
from income tax rate
changes - - - (28,259)
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Net earnings from
continuing operations
before impairment of
broadcast licences and
future income tax
recoveries 43,852 40,806 159,464 150,462
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3 months 12 months
----------------------- -----------------------
(in thousands of $) 2009 2008 2009 2008
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-------------------------------------------------------------------------
Basic earnings (loss)
per share from
continuing operations (4.87) 0.72 (2.82) 3.18
Impairment charge on
broadcast licences 7.11 - 7.12 -
Future income tax
recovery resulting
from impairment charge
on broadcast licences (1.46) - (1.46) -
Future income tax
recovery resulting
from income tax rate
changes - - - (0.51)
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Basic earnings per share
from continuing
operations before
impairment of broadcast
licences and future
income tax recoveries 0.78 0.72 2.84 2.67
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Cash flow from continuing operations is defined as cash flow from continuing operating activities before the net change in non-cash operating items. This measure provides an indication of the Company's ability to generate cash flows without considering certain timing and other factors causing variations in non-cash operating items.
The following table reconciles GAAP measures disclosed in the consolidated statements of cash flows for the periods ended
3 months 12 months
----------------------- -----------------------
(in thousands of $) 2009 2008 2009 2008
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Cash flow from continuing
operating activities 61,524 55,792 229,338 148,990
Net change in non-cash
operating items 545 4,263 (12,712) 56,352
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Cash flow from continuing
operations 62,069 60,055 216,626 205,342
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The above supplementary measures do not have a standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies.
For further information: Media: Alain Bergeron, Vice-President, Brand Management and Chief Marketing Officer, Astral Media Inc., (514) 939-5000; Analysts: Claude Gagnon, Senior Vice-President and Chief Financial Officer, Astral Media Inc., (514) 939-5000
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