Astral reports strong first quarter results for Fiscal 2012

• 5% increase in net earnings
• 9% increase in diluted EPS

MONTREAL, Feb. 2, 2012 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A ACM.B) today reported its financial results for the first quarter ended November 30, 2011, which saw continued growth in revenues, EBITDA¹, net earnings, EPS, and cash flow from operations².

Consolidated revenues totalled $271.1 million for the first quarter, an increase of 2% over the $267.1 million recorded last year for the same period. EBITDA¹ for the first three months grew 1% to $90.4 million from $89.1 million for the same quarter last year. Consolidated net earnings for the first three months of Fiscal 2012 increased by 5%, rising to $55.8 million from $53.1 million last year. Diluted earnings per share for the first quarter increased by 9%, reaching $1.00 from $0.92 last year. Cash flow from operations² rose by 3% to $69.0 million for the first quarter compared to $66.7 million for the same period last year.

"I am pleased with our Company's overall growth in the first three months of Fiscal 2012. Once again, our balanced asset mix and geographical footprint enabled us to display continued consolidated growth at all levels, achieved in spite of the challenging economic and advertising conditions in which we operate," said Ian Greenberg, President and Chief Executive Officer. "While we remain in a low visibility environment, I am confident that the ongoing efforts to strengthen our multiplatform offering and presence in key markets, combined with new television distribution agreements and continued investments in our brands, provide us with the optimal conditions to achieve our goals."

SEGMENTED FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television

• Revenue growth of 3%;
• Advertising and subscriber-related revenue increases of 1% and 3% respectively;
• EBITDA¹ growth of 2%;
• Sequential addition of 9,000 new pay-television subscribers for The Movie Network and Super Écran over the course of the first quarter;
• Announcement of a new distribution agreement with Shaw Cablesystems G.P. for Disney XD and Disney Junior;
• Subsequent to the end of the first quarter, the Company announced that Disney XD and Disney Junior (French) are now available to Cogeco Cable subscribers.

Radio

• Revenue decline of 4%;
• EBITDA¹ decline of 7%;
• Subsequent to the end of the first quarter, the Company completed the acquisition of an FM radio station in Vancouver, CHHR-FM (Shore FM), bringing Astral Radio's number of stations to 84.

Out-of-Home

• Revenue growth of 13%;
• EBITDA¹ growth of 16%.

Corporate
Subsequent to quarter end, the Company announced on December 13, 2011:

• A 33.3% increase of its annual dividend from $0.75 to $1.00 per share, paid to holders of its Class A and Class B shares;
• The renewal of its normal course issuer bid to repurchase for cancellation, up to 5% of its outstanding shares, 2,630,137 Class A Shares and 137,708 Class B Shares over a maximum period of 12 months beginning on December 16, 2011.

Transition to International Financial Reporting Standards ("IFRS")

For fiscal years beginning on or after January 1, 2011, publicly accountably profit-oriented enterprises are to apply IFRS. The Company therefore issued its Fiscal 2012 First Quarter financial results in accordance with IFRS, including Fiscal 2011 comparative figures using the same reporting standards.

The unaudited interim condensed consolidated financial statements and related notes and Management's Discussion and Analysis are available on the Company's website: astral.com.

There will be a conference call with analysts and media at 10:30 a.m. ET on Thursday, February 2, 2012. To access the conference call dial 1-800-731-5319. The conference call will also be broadcast live and archived for a three-month period on the Astral website at astral.com.

Astral is one of Canada's largest media companies. It operates several of the country's most popular pay and specialty television, radio, out-of-home advertising and digital media properties. Astral plays a central role in community life across the country by offering diverse, rich and vibrant programming that meets the tastes and needs of consumers and advertisers. To learn more about Astral, visit astral.com.

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.

1. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. See the "Additional IFRS Measures" section in the Management's Discussion and Analysis.
2. See the "Additional IFRS Measures" section in the Management's Discussion and Analysis.

ASTRAL MEDIA INC. 
Interim Consolidated Statements of Earnings
for the three months ended
(in thousands of Canadian dollars except for per-share data)
(unaudited)

		November 30
		2011				2010
Revenues		$	271,100		$	267,093
Operating expenses			180,699			177,987
EBITDA ^(1)			90,401			89,106
	Depreciation of property, plant and equipment		7,506			6,840
	Amortization of other intangible and non-current assets		1,962			2,213
	Financial expense, net		3,953			5,695
Earnings before income taxes			76,980			74,358
Income tax provision			21,224			21,303
Net earnings		$	55,756		$	53,055
Earnings per share
Basic		$	1.01		$	0.93
Diluted		$	1.00		$	0.92
Interim Consolidated Statements of Comprehensive Income for the three months ended (in thousands of Canadian dollars) (unaudited)
		November 30
		2011				2010
Net earnings		$	55,756		$	53,055
Other comprehensive income
	Actuarial gain (loss) on employee future benefit plans, net of income tax expense (recovery) of ($2.4 million) and $0.8 million respectively		(6,772)			2,262
	Change in fair value of derivatives designated as cash flow hedges, net of income tax expense of $0.1 million and $0.9 million respectively		110			2,308
Comprehensive income		$	49,094		$	57,625
^(1) See Appendix 1.

ASTRAL MEDIA INC. Interim Consolidated Statements of Cash Flows for the three months ended (in thousands of Canadian dollars) (unaudited)
			November 30
			2011				2010
OPERATING ACTIVITIES
	Net earnings		$	55,756		$	53,055
	Non-cash items:
		Stock-based compensation costs		2,152			2,493
		Depreciation and amortization		9,468			9,053
		Imputed interest, net		259			309
		Amortization of deferred financing costs		205			171
		Deferred tax expense		1,122			1,650
	Cash flow from operations ^(1)			68,962			66,731
	Net change in non-cash operating items			(45,111)			(30,541)
Cash provided by operating activities				23,851			36,190
INVESTING ACTIVITIES
	Additions to property, plant and equipment			(5,574)			(9,994)
	Additions to other intangible and non-current assets			(952)			(2,788)
Cash used for investing activities				(6,526)			(12,782)
FINANCING ACTIVITIES
	Deferred financing costs			(2,011)			-
	Repayment of long-term debt			(10,000)			(10,000)
	Shares repurchased			(7,757)			-
	Stock options exercised			3,110			4,816
Cash used for financing activities				(16,658)			(5,184)
Net change in cash				667			18,224
Cash - beginning of period				22,653			11,545
Cash - end of period			$	23,320		$	29,769
^(1) See Appendix 1.

 

ASTRAL MEDIA INC.
Interim Consolidated Balance Sheets as at
(in thousands of Canadian dollars)
(unaudited)

		November 30, 2011			August 31, 2011			September 1, 2010
ASSETS
Current
	Cash	$	23,320		$	22,653		$	11,545
	Accounts receivable		192,036			170,063			169,240
	Program and film rights		119,256			105,385			106,723
	Prepaid expenses and other current assets		42,975			29,096			29,451
			377,587			327,197			316,959
Program and film rights			54,609			51,058			41,640
Property, plant and equipment			193,539			195,508			180,616
Broadcast licences			1,639,785			1,639,785			1,661,949
Goodwill			116,016			116,016			116,016
Other intangible and non-current assets			64,814			70,543			64,162
Non-current financial assets			15,854			19,852			22,848
Deferred tax assets			62,638			60,747			64,683
		$	2,524,842		$	2,480,706		$	2,468,873
LIABILITIES
Current
	Accounts payable and accrued liabilities	$	140,739		$	142,627		$	143,780
	Provisions		3,561			4,621			3,380
	Income taxes payable		11,919			13,560			16,654
	Program and film rights payable		85,241			77,033			64,908
	Other current financial liabilities		887			1,945			-
			242,347			239,786			228,722
Long-term debt			512,327			524,133			588,447
Deferred tax liabilities			153,096			152,455			144,424
Program and film rights payable			10,218			8,839			12,668
Provisions			5,408			5,453			5,244
Other non-current liabilities			62,071			57,124			63,820
Other non-current financial liabilities			10,370			10,116			20,311
			995,837			997,906			1,063,636
SHAREHOLDERS' EQUITY
Capital stock			762,709			762,572			768,762
Contributed surplus			18,667			17,278			18,903
Retained earnings			757,008			705,667			624,609
Accumulated other comprehensive loss			(9,379)			(2,717)			(7,037)
			747,629			702,950			617,572
			1,529,005			1,482,800			1,405,237
		$	2,524,842		$	2,480,706		$	2,468,873

ASTRAL MEDIA INC. Business Segments for the three months ended November 30, (in thousands of Canadian dollars) (unaudited)
		2011			2010
REVENUES
Television	$	153,552		$	149,684
Radio		88,291			91,631
Out-of-Home		29,257			25,778
	$	271,100		$	267,093
EBITDA^(1)
Television	$	58,608		$	57,471
Radio		27,591			29,513
Out-of-Home		11,835			10,232
Corporate		(7,633)			(8,110)
	$	90,401		$	89,106

⁽¹⁾     See Appendix 1.

ASTRAL MEDIA INC.
Appendix 1
Additional IFRS Measures
for the three-month periods ended November 30, 2011 and 2010
(unaudited)

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In addition to discussing earnings measures in accordance with International Financial Reporting Standards ("IFRS"), this Press Release provides the following additional IFRS measures which are also factors used by the Company's management and Board of Directors 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. EBITDA is also an indicator widely used for business valuation purposes. EBITDA margin is defined as the ratio obtained by dividing EBITDA by revenues.

Cash flow from operations is defined as cash provided by 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 above additional IFRS measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. 

 

 

 

 

Media: Hugues Mousseau Director, Corporate Communications and Synergies Astral Media Inc. 514-939-5000

Analysts : Robert Fortier Vice-President, Finance and  Chief Financial Officer Astral Media Inc. 514-939-5000