- 8% increase in net earnings1
- 6% increase in diluted EPS1
- 5% increase in EBITDA2
- 2% increase in revenues
- 9% increase in cash flow from operations2
MONTREAL, April 11, 2013 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A ACM.B) today reported its financial results for the second quarter ended February 28, 2013, which saw continued growth in net earnings, EPS, EBITDA2, revenues and cash flow from operations2.
In the second quarter, consolidated net earnings1 totalled $41.2 million, an 8% increase over the $38.2 million recorded last year for the same period, while diluted earnings per share1 rose 6% to $0.73 from $0.69 last year. EBITDA2 grew 5% to $69.4 million from $66.0 million for the same period last year, while consolidated revenues reached $237.1 million, a 2% growth over the $233.5 million recorded last year. Cash flow from operations2 rose 9% to $54.7 million for the second quarter compared to $50.2 million for the corresponding period last year.
For the first half of the year, consolidated net earnings1 grew 7% to $100.8 million from $94.0 million for the same period last year, while diluted earnings per share1 increased by 6% to $1.78 from $1.68 last year. EBITDA2 totalled $163.1 million, a 4% increase over the $156.4 million recorded last year for the same period, while consolidated revenues rose 1% to $511.6 million compared to $504.6 million for the corresponding period last year. Cash flow from operations2 rose 4% to $123.9 million for the first half of the year compared to $119.2 million for the corresponding period last year.
"I am very pleased by the Company's performance in the second quarter of Fiscal 2013, which is Astral's 66th consecutive quarter of profitable growth," said Ian Greenberg, Astral's President and Chief Executive Officer. "Our diversified portfolio, innovative multiplatform offering and financial discipline enabled us to thrive in a still challenging market environment."
BELL-ASTRAL TRANSACTION3
On March 16, 2012, the Company announced that it entered into a definitive agreement with Bell for the sale of its business through the acquisition of all of its issued and outstanding shares. Following the October 18, 2012 decision of the CRTC to deny Bell's application to acquire the control of the Company, the Company and Bell announced on November 19, 2012 that they have amended the arrangement agreement signed on March 16, 2012 and submitted a new proposal to the CRTC for approval of Bell's acquisition of the Company. The outside date for the closing of the transaction is June 1, 2013, with each of the Company and Bell having a further right to postpone it to July 31, 2013. The consideration payable to the Company's shareholders remains unchanged under the amended arrangement agreement.
On March 4, 2013, the Company and Bell announced that the Canadian Competition Bureau has issued a "no action letter" in connection with the acquisition of the Company by Bell. The issuance of the no action letter constitutes one of the two required regulatory approvals contemplated in the Arrangement Agreement.
The Bell-Astral Transaction remains subject to closing conditions, including the approval of the CRTC. The CRTC approval is the only remaining regulatory approval required in connection with the Bell-Astral Transaction. The CRTC announced on March 6, 2013 that a public hearing will be held in Montreal, commencing on May 6, 2013, to consider the new proposal for the approval of the acquisition of the Company by Bell. There can be no assurance that the Bell-Astral Transaction will occur, or that it will occur on the terms and conditions currently contemplated.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Television
- 2% revenue growth for the quarter (2% growth for the six-month period);
- EBITDA2 growth of 6% for the quarter (5% for the six-month period);
- Launch, on February 27, of The Movie Network GO including HBO GO, a new video streaming service giving subscribers access to The Movie Network, HBO Canada and TMN Encore from their iPhone, iPad, iPod touch, Mac or PC at no extra charge. The service is currently available to Bell TV, Cogeco and Rogers Cable subscribers.
- Subsequent to end of quarter, TELETOON Retro reached the nine million subscribers mark, a record for subscriber penetration of any all-digital Canadian specialty channel.
Radio
- Revenue decline of 1% for the quarter, a performance in line with that of the industry (consistent year-over-year performance for the six-month period, outperforming the industry);
- On February 5, launch of Astral Radio's new Built for BlackBerry® application.
Out-of-Home
- Revenue growth of 10% for the quarter (5% growth for the six-month period);
- EBITDA2 growth of 9% for the quarter (3% growth for the six-month period);
- On December 19, rollout of a new landmark in the domestic jetty at Montréal-Trudeau international airport;
- In February, addition of 6 new Digital faces on Toronto's Gardiner Expressway, bringing Astral's popular national Digital Network to 51 faces.
Corporate
- During the quarter, the Company repaid $22.0 million of its long-term debt for a total of $29.0 million since the beginning of the fiscal year and reduced its available credit facility by $240.0 million.
- On February 1, Astral paid a cash dividend of $28.1 million to shareholders of record at the close of business on January 15, 2013.
The unaudited interim condensed consolidated financial statements with related notes and Management's Discussion and Analysis are available on the Company's website: www.astral.com.
There will be a conference call with analysts and media at 10:30 a.m. ET on Thursday, April 11, 2013. 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 www.astral.com.
Founded in 1961, 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 www.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. Except as required under applicable securities regulations, we disclaim any intention or obligation to update or revise any forward-looking statements.
- Excluding Bell-Astral transaction costs in Fiscal 2013 and acquisition and other costs in Fiscal 2012. See "Additional IFRS and Non-IFRS Measures" in Appendix 1.
- For more details, see "Additional IFRS and Non-IFRS Measures" in Appendix 1.
- For more details, see the "Bell-Astral Transaction" section in the Management's Discussion and Analysis for the periods ended February 28, 2013.
ASTRAL MEDIA INC.
Interim Consolidated Statements of Earnings
for the periods ended February 28, 2013 and February 29, 2012
(in thousands of Canadian dollars except for per-share data)
(unaudited)
3 months | 6 months | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Revenues | $ | 237,102 | $ | 233,503 | $ | 511,567 | $ | 504,603 | ||
Operating expenses | 167,662 | 167,459 | 348,473 | 348,158 | ||||||
Depreciation of property, plant and equipment | 7,040 | 7,360 | |
13,971 | 14,866 | |||||
Amortization of other intangible and non-current assets | 2,406 | 1,976 | 4,769 | 3,938 | ||||||
Financial expense, net | 3,024 | 3,973 | 5,860 | 7,926 | ||||||
Acquisition and other costs | - | 4,311 | - | 4,311 | ||||||
Bell-Astral Transaction costs | 4,004 | - | 4,664 | - | ||||||
Earnings before income taxes | 52,966 | 48,424 | 133,830 | 125,404 | ||||||
Income tax expense | 14,637 | 13,419 | 36,396 | 34,643 | ||||||
Net earnings | $ | 38,329 | $ | 35,005 | $ | 97,434 | $ | 90,761 | ||
Earnings per share | ||||||||||
|
- Basic | $ | 0.68 | $ | 0.63 | $ | 1.74 | $ | 1.64 | |
|
- Diluted | $ | 0.68 | $ | 0.63 | $ | 1.72 | $ | 1.62 |
ASTRAL MEDIA INC.
Interim Consolidated Statements of Comprehensive Income
for the periods ended February 28, 2013 and February 29, 2012
(in thousands of Canadian dollars)
(unaudited)
3 months | 6 months | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Net earnings | $ | 38,329 | $ | 35,005 | $ | 97,434 | $ | 90,761 | ||
Item that is never subsequently reclassified to the statements of earnings | ||||||||||
Actuarial gain (loss) on employee future benefit plans, net of income tax expense (recovery) of $3.0 million and ($1.3 million) respectively for the three months, and $1.2 million and ($3.7 million) respectively for the six months | 8,122 | (3,591) | 3,292 | (10,363) | ||||||
Item that may be subsequently reclassified to the statements of earnings | ||||||||||
Change in fair value of derivatives designated as cash flow hedges, net of income tax expense (recovery) of ($0.1 million) and $0.5 million respectively for the three months, and ($0.3 million) and $0.6 million respectively for the six months | (181) | 1,523 | (844) | 1,633 | ||||||
Other comprehensive income (loss) | 7,941 | (2,068) | 2,448 | (8,730) | ||||||
Comprehensive income | $ | 46,270 | $ | 32,937 | $ | 99,882 | $ | 82,031 |
ASTRAL MEDIA INC.
Interim Consolidated Statements of Cash Flows
for the periods ended February 28, 2013 and February 29, 2012
(in thousands of Canadian dollars)
(unaudited)
3 months | 6 months | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net earnings | $ | 38,329 | $ | 35,005 | $ | 97,434 | $ | 90,761 | |||
Non-cash items: | |||||||||||
Stock-based compensation costs | 2,699 | 1,872 | 4,797 | 4,024 | |||||||
Depreciation and amortization | 9,446 | 9,336 | 18,740 | 18,804 | |||||||
Imputed interest, net | 372 | 426 | 660 | 685 | |||||||
Amortization of deferred financing costs | 606 | 272 | 887 | 477 | |||||||
Deferred tax expense | 3,270 | 3,288 | 1,368 | 4,410 | |||||||
Cash flows from operations | 54,722 | 50,199 | 123,886 | 119,161 | |||||||
Net change in non-cash operating items | 22,357 | 6,260 | (22,484) | (38,847) | |||||||
Cash provided by operating activities | 77,079 | 56,459 | 101,402 | 80,314 | |||||||
INVESTING ACTIVITIES | |||||||||||
Additions to property, plant and equipment | (6,382) | (6,808) | (16,090) | (12,382) | |||||||
Additions to other intangible and non-current assets | (2,040) | (1,344) | (3,039) | (2,296) | |||||||
Business acquisition, net of cash acquired | - | (11,520) | - | (11,520) | |||||||
Cash used for investing activities | (8,422) | (19,672) | (19,129) | (26,198) | |||||||
FINANCING ACTIVITIES | |||||||||||
Repayment of long-term debt | (22,000) | (20,000) | (29,000) | (30,000) | |||||||
Deferred financing costs | - | (6) | - | (2,017) | |||||||
Stock options exercised | 4,642 | 14,166 | 6,344 | 17,276 | |||||||
Shares repurchased | - | (6,369) | - | (14,126) | |||||||
Dividends | (28,061) | (27,919) | (28,061) | (27,923) | |||||||
Cash used for financing activities | (45,419) | (40,128) | (50,717) | (56,790) | |||||||
Net change in cash | 23,238 | (3,341) | 31,556 | (2,674) | |||||||
Cash - beginning of period | 29,210 | 23,320 | 20,892 | 22,653 | |||||||
Cash - end of period | $ | 52,448 | $ | 19,979 | $ | 52,448 | $ | 19,979 |
ASTRAL MEDIA INC.
Interim Consolidated Balance Sheets as at
(in thousands of Canadian dollars)
(unaudited)
February 28, 2013 |
August 31, 2012 |
||||
ASSETS | |||||
Current | |||||
Cash | $ | 52,448 | $ | 20,892 | |
Accounts receivable | 172,193 | 174,384 | |||
Program and film rights | 114,331 | 114,753 | |||
Prepaid expenses and other current assets | 30,561 | 29,007 | |||
369,533 | 339,036 | ||||
Program and film rights | 58,478 | 51,208 | |||
Property, plant and equipment | 209,216 | 210,035 | |||
Broadcast licences | 1,631,307 | 1,631,307 | |||
Goodwill | 118,489 | 118,489 | |||
Other intangible and non-current assets | 62,605 | 64,750 | |||
Non-current financial assets | 15,691 | 16,084 | |||
Deferred tax assets | 37,831 | 34,582 | |||
$ | 2,503,150 | $ | 2,465,491 | ||
LIABILITIES | |||||
Current | |||||
Accounts payable and accrued liabilities | $ | 115,775 | $ | 141,729 | |
Provisions | 2,978 | 5,319 | |||
Income taxes payable | 18,192 | 15,531 | |||
Program and film rights payable | 75,380 | 63,619 | |||
212,325 | 226,198 | ||||
Long-term debt | 362,025 | 390,138 | |||
Deferred tax liabilities | 136,882 | 131,377 | |||
Program and film rights payable | 9,568 | 7,446 | |||
Provisions | 6,258 | 6,717 | |||
Other non-current liabilities | 67,494 | 76,556 | |||
Other non-current financial liabilities | 8,910 | 8,466 | |||
803,462 | 846,898 | ||||
SHAREHOLDERS' EQUITY | |||||
Capital stock | 788,381 | 778,548 | |||
Contributed surplus | 19,886 | 20,445 | |||
Retained earnings | 892,135 | 819,470 | |||
Accumulated other comprehensive income (loss) | (714) | 130 | |||
891,421 | 819,600 | ||||
1,699,688 | 1,618,593 | ||||
$ | 2,503,150 | $ | 2,465,491 |
ASTRAL MEDIA INC.
Business Segments
for the periods ended February 28, 2013 and February 29, 2012
(in thousands of Canadian dollars)
(unaudited)
3 months | 6 months | ||||||||
2013 | 2012 | 2013 | 2012 | ||||||
REVENUES | |||||||||
Television | $ | 143,209 | $ | 140,561 | $ | 299,036 | $ | 294,113 | |
Radio | 73,254 | 74,197 | 162,040 | 162,488 | |||||
Out-of-Home | 20,639 | 18,745 | 50,491 | 48,002 | |||||
$ | 237,102 | $ | 233,503 | $ | 511,567 | $ | 504,603 | ||
EBITDA(1) | |||||||||
Television | $ | 52,778 | $ | 49,665 | $ | 114,029 | $ | 108,273 | |
Radio | 17,569 | 18,396 | 45,342 | 45,987 | |||||
Out-of-Home | 4,689 | 4,310 | 16,624 | 16,145 | |||||
Corporate | (5,596) | (6,327) | (12,901) | (13,960) | |||||
$ | 69,440 | $ | 66,044 | $ | 163,094 | $ | 156,445 |
(1) See Appendix 1. |
ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended February 28, 2013 and February 29, 2012
(unaudited)
In addition to discussing earnings measures in accordance with International Financial Reporting Standards ("IFRS"), this press release provides the following additional IFRS and non-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:
Additional IFRS Measure
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.
Non-IFRS Measures
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 acquisition and other costs, and Bell-Astral Transaction costs are also 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 IFRS measures disclosed in the unaudited interim consolidated statements of earnings for the periods ended February 28, 2013 and February 29, 2012 to EBITDA:
3 months | 6 months | ||||
(in thousands of $) | 2013 | 2012 | 2013 | 2012 | |
Earnings before income taxes | 52,966 | 48,424 | 133,830 | 125,404 | |
Depreciation and amortization | 9,446 | 9,336 | 18,740 | 18,804 | |
Financial expense, net | 3,024 | 3,973 | 5,860 | 7,926 | |
Acquisition and other costs | - | 4,311 | - | 4,311 | |
Bell-Astral Transaction costs | 4,004 | - | 4,664 | - | |
EBITDA | 69,440 | 66,044 | 163,094 | 156,445 |
Net earnings and diluted earnings per share before acquisition and other costs, and Bell-Astral Transaction costs. These measures provide an indication of the Company's ability to generate earnings from its ongoing operations, by excluding some items such as acquisition and other costs, and Bell-Astral Transaction costs as they are not considered to be in the ordinary course of business.
The following tables reconcile IFRS measures disclosed in the unaudited interim consolidated statements of earnings for the periods ended February 28, 2013 and February 29, 2012 to net earnings and diluted earnings per share before acquisition and other costs, and Bell-Astral Transaction costs:
3 months | 6 months | ||||
(in thousands of $) | 2013 | 2012 | 2013 | 2012 | |
Net earnings | 38,329 | 35,005 | 97,434 | 90,761 | |
Acquisition and other costs, net of income taxes | - | 3,198 | - | 3,198 | |
Bell-Astral Transaction costs, net of income taxes | 2,896 | - | 3,380 | - | |
Net earnings before acquisition and other costs, and Bell-Astral Transaction costs | 41,225 | 38,203 | 100,814 | 93,959 | |
3 months | 6 months | ||||
(in dollars) | 2013 | 2012 | 2013 | 2012 | |
Diluted earnings per share | 0.68 | 0.63 | 1.72 | 1.62 | |
Acquisition and other costs, net of income taxes | - | 0.06 | - | 0.06 | |
Bell-Astral Transaction costs, net of income taxes | 0.05 | - | 0.06 | - | |
Diluted earnings per share before acquisition and other costs, and Bell-Astral Transaction costs | 0.73 | 0.69 | 1.78 | 1.68 |
The above additional IFRS and non-IFRS measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
SOURCE: Astral Media Inc.
Media:
Olivier Racette
Advisor, Corporate Communications
Astral Media Inc.
514-939-5000
[email protected]
Analysts :
Robert Fortier
Vice-President, Finance and
Chief Financial Officer
Astral Media Inc.
514-939-5000
[email protected]
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