Corus Entertainment Announces Fiscal 2015 Third Quarter Results
- Free cash flow of $156.0 million year-to-date
- Landmark multi-year licensing agreements completed with Nickelodeon and Disney
- Consolidated revenues down 5% for the quarter and 2% year-to-date
- Consolidated segment profit down 14% for the quarter and 4% year-to-date
- Net loss attributable to shareholders of $8.1 million for the quarter, which includes a non-cash program rights and film investments impairment charge of $51.8 million
- Adjusted basic earnings per share of $0.36 per share, down 27% for the quarter
TORONTO, July 15, 2015 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its third quarter financial results today.
"While our third quarter operating results were disappointing, we were pleased to deliver solid year-to-date free cash flow of $156 million," said Doug Murphy, President and Chief Executive Officer of Corus Entertainment. "Over the next 18 months, our focus will be to fortify our brands and competitive position by leveraging our strategic investments in premium content across platforms and delivery systems. We have already made significant progress, inking ground-breaking content and rights deals with Nickelodeon and Disney, and expanding our digital presence in Radio and Television, most recently with the launch of the first in our suite of innovative kids TV Everywhere apps, TreehouseGO. We are confident that we are on the right track to deepen our engagement with audiences and evolve the company for future growth in a dynamic, consumer-centric marketplace."
| Financial Highlights |
|||||||||
| Three months ended |
Nine months ended |
||||||||
| May 31, |
May 31, |
||||||||
| (unaudited - in thousands of Canadian dollars except per share amounts) |
2015 |
2014 |
2015 |
2014 |
|||||
| Revenues |
|||||||||
| Television |
162,767 |
170,565 |
499,432 |
500,615 |
|||||
| Radio |
40,354 |
43,476 |
122,284 |
130,844 |
|||||
| 203,121 |
214,041 |
621,716 |
631,459 |
||||||
| Segment profit(1) |
|||||||||
| Television |
64,075 |
75,679 |
207,554 |
216,237 |
|||||
| Radio |
9,457 |
11,678 |
28,504 |
35,985 |
|||||
| Corporate |
(4,833) |
(7,626) |
(14,364) |
(20,933) |
|||||
| 68,699 |
79,731 |
221,694 |
231,289 |
||||||
| Net income (loss) attributable to shareholders |
(8,109) |
(30,325) |
(42,989) |
126,682 |
|||||
| Adjusted net income attributable to shareholders(1) (2) |
31,550 |
41,602 |
111,955 |
123,560 |
|||||
| Basic earnings (loss) per share |
$ (0.09) |
$ (0.36) |
$ (0.50) |
$ 1.49 |
|||||
| Adjusted basic earnings per share(1) (2) |
$ 0.36 |
$ 0.49 |
$ 1.30 |
$ 1.46 |
|||||
| Diluted earnings (loss) per share |
$ (0.09) |
$ (0.36) |
$ (0.50) |
$ 1.49 |
|||||
| Free cash flow(1) |
63,419 |
59,399 |
156,043 |
182,440 |
|||||
| (1) |
Adjusted net income attributable to shareholders, adjusted basic earnings per share, segment profit, and free cash flow do not have standardized meanings prescribed by IFRS. The Company reports on segment profit and free cash flow because they are key measures used to evaluate performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2015 Report to Shareholders. |
||||
| (2) |
For the three months ended May 31, 2015, excludes intangible asset impairment charges of $51.8 million ($0.44 per share) and business acquisition, integration and restructuring charges of $2.7 million ($0.02 per share). For the nine months ended May 31, 2015, excludes radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), intangible asset impairment charges of $51.8 million ($0.44 per share), business acquisition, integration and restructuring charges of $10.7 million ($0.09 per share), offset by a gain on distribution of investment of $17.0 million ($0.17 per share). For the three months ended May 31, 2014, excludes radio broadcast license and goodwill impairment charges of $75.0 million ($0.85 per share), business acquisition, integration and restructuring costs of $0.6 million ($0.01 per share), capital asset impairment charges of $1.2 million ($0.01 per share) and a decrease in the purchase price obligation of $2.0 million ($0.02 per share). For the nine month period ended May 31, 2014, excludes the impact of $127.9 million ($1.51 per share) gain on remeasurement to fair value of the Company's 50% interest in TELETOON which was held prior to consolidation on September 1, 2013, radio broadcast license and goodwill impairment charges of $83.0 million ($0.92 per share), capital asset impairment charges of $1.2 million ($0.01 per share), business acquisition, integration and restructuring costs of $41.2 million ($0.47 per share), an increase in the purchase price obligation of $3.3 million ($0.04 per share), and investment impairment related charges of $3.3 million ($0.04 per share). |
||||
Consolidated Results from Operations
Consolidated revenues for the three months ended May 31, 2015 were $203.1 million, down 5% from $214.0 million last year. Consolidated segment profit was $68.7 million, down 14% from $79.7 million last year. Net loss attributable to shareholders for the quarter was $8.1 million ($0.09 loss per share basic and diluted), compared to $30.3 million ($0.36 loss per share basic and diluted) last year. Net loss attributable to shareholders for the third quarter includes intangible non-cash impairment charges of $51.8 million ($0.44 per share) and business acquisition, integration and restructuring costs of $2.7 million ($0.02 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $31.6 million ($0.36 per share) in the quarter. Net income attributable to shareholders for the prior year quarter includes radio broadcast license and goodwill impairment charges of $75.0 million ($0.85 per share), capital asset impairment charges of $1.2 million ($0.01 per share), business acquisition, integration and restructuring costs of $0.6 million ($0.01 per share) and a decrease in the purchase price obligation of $2.0 million related to the acquisition of control of TELETOON ($0.02 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $41.6 million ($0.49 per share basic) for the prior year quarter.
Consolidated revenues for the nine months ended May 31, 2015 were $621.7 million, down 2% from $631.5 million last year. Consolidated segment profit was $221.7 million, down 4% from $231.3 million last year. Net loss attributable to shareholders for the nine months ended May 31, 2015 was $43.0 million ($0.50 loss per share basic and diluted) compared to net income attributable to shareholders of $126.7 million ($1.49 per share basic and diluted) last year. Net loss attributable to shareholders for the nine months ended May 31, 2015 includes Radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), business acquisition, integration and restructuring costs of $10.7 million ($0.09 per share), and program right and film investment impairment charges of $51.8 million ($0.44 per share), offset by a gain on disposition of investment of $17.0 million ($0.17 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $112.0 million ($1.30 per share) for the current year-to-date. Net income attributable to shareholders for the nine months ended May 31, 2014 includes a non-cash gain of $127.9 million ($1.51 per share) resulting from the remeasurement to fair value of the Company's 50% interest in TELETOON which was held prior to consolidation on September 1, 2013, radio broadcast license and goodwill impairment charges of $83.0 million ($0.92 per share), capital asset impairment charges of $1.2 million ($0.01 per share), business acquisition, integration and restructuring costs of $41.2 million ($0.47 per share), an increase in the purchase price obligation of $3.3 million ($0.04 per share) and investment impairment related charges of $3.3 million ($0.04 per share). Removing the impact of these items results in an adjusted net income attributable to shareholders of $123.6 million ($1.46 per share) for the prior year-to-date.
Operational Results - Highlights
Television
- Specialty advertising revenues decreased 11% in Q3 2015 and 5% for the year-to-date
- Subscriber revenues decreased 3% in Q3 2015, but increased 2% for the year-to-date
- Merchandising, distribution and other revenues increased 15% in Q3 2015 and 9% for the year-to-date
- Segment profit(1) decreased 15% in Q3 2015 and 4% for the year-to-date
- Segment profit margin(1) of 39% in Q3 2015 and 42% for the year-to-date
- Non-cash program rights and film investments impairment charges of $51.8 million in Q3 2015
Radio
- Segment revenues decreased 7% in Q3 2015 and for the year-to-date
- Segment profit(1) decreased 19% in Q3 2015 and 21% for the year-to-date
- Segment profit margin(1) of 23% in Q3 2015 and for the year-to-date
- Non-cash broadcast license and goodwill impairment charges of $130.0 million for the 2015 year-to-date
Corporate
- Free cash flow of $156.0 million for the year-to-date
- Free cash flow guidance remains unchanged at $180 million, refer to Outlook section of the Third Quarter 2015 Report to Shareholders
| (1) |
Segment profit and segment profit margin do not have standardized meanings prescribed by IFRS. The Company reports on segment profit and segment profit margin because they are key measures used to evaluate performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2015 Report to Shareholders. |
Corus Entertainment Inc. reports in Canadian dollars.
The unaudited consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2015 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section.
A conference call with Corus senior management is scheduled for July 15, 2015 at 2:00 p.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 1.416.641.6701 and for North America is 1.800.734.8582. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
Use of Non-GAAP Financial Measures
This press release includes the non-GAAP financial measures of adjusted net income, adjusted basic earnings per share and free cash flow that are not in accordance with, nor an alternate to, generally accepted accounting principles ("GAAP") and may be different from non-GAAP 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 GAAP. 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, GAAP financial results. A reconciliation of the Company's non-GAAP measures is included in the Company's most recent Report to Shareholders which is available on Corus' website at www.corusent.com as well as on SEDAR.
Caution Concerning Forward-Looking Statements
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 report 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 statements"). These forward-looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees, and can generally be identified by the use of the words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, including without limitation factors and assumptions regarding advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; 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; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business; and changes in accounting standards. Additional information about these factors and about the material assumptions underlying such forward-looking statements may be found in our Annual Information Form. Corus cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Corus, investors and other should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, we disclaim any intention or obligation to publicly update or revise any forward-looking statements 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. is a Canadian-based media and entertainment company that creates, broadcasts and licenses content across a variety of platforms for audiences around the world. The Company's portfolio of multimedia offerings encompasses specialty television and radio with additional assets in pay television, television broadcasting, children's book publishing, children's animation and animation software. Corus' brands include YTV, TELETOON, ABC Spark, W Network, OWN: Oprah Winfrey Network (Canada), HBO Canada, Historia and Séries+, as well as Nelvana, Kids Can Press, Toon Boom and 39 radio stations including CKNW AM 980, Rock 101, Country 105, 630 CHED, Fresh Radio, JUMP! 106.9, Q107 and 102.1 the Edge. A publicly traded company, Corus is listed on the Toronto Stock Exchange (CJR.B). Experience Corus on the web at www.corusent.com.
| CORUS ENTERTAINMENT INC. |
||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||||
| As at May 31, |
As at August 31, |
|||||
| (unaudited - in thousands of Canadian dollars) |
2015 |
2014 |
||||
| ASSETS |
||||||
| Current |
||||||
| Cash and cash equivalents |
43,848 |
11,585 |
||||
| Accounts receivable |
188,309 |
183,009 |
||||
| Income taxes recoverable |
9,177 |
9,768 |
||||
| Prepaid expenses and other |
11,091 |
13,032 |
||||
| Total current assets |
252,425 |
217,394 |
||||
| Tax credits receivable |
33,275 |
29,044 |
||||
| Intangibles, investments and other assets |
59,249 |
47,630 |
||||
| Property, plant and equipment |
141,013 |
143,618 |
||||
| Program and film rights |
323,914 |
330,437 |
||||
| Film investments |
38,696 |
63,455 |
||||
| Broadcast licenses |
956,984 |
979,984 |
||||
| Goodwill |
827,859 |
934,859 |
||||
| Deferred tax assets |
42,099 |
38,161 |
||||
| 2,675,514 |
2,784,582 |
|||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||
| Current |
||||||
| Accounts payable and accrued liabilities |
225,881 |
170,411 |
||||
| Current portion of long-term debt |
150,000 |
— |
||||
| Provisions |
3,534 |
5,314 |
||||
| Total current liabilities |
379,415 |
175,725 |
||||
| Long-term debt |
680,332 |
874,251 |
||||
| Other long-term liabilities |
143,833 |
171,793 |
||||
| Deferred tax liabilities |
252,779 |
252,687 |
||||
| Total liabilities |
1,456,359 |
1,474,456 |
||||
| SHAREHOLDERS' EQUITY |
||||||
| Share capital |
990,019 |
967,330 |
||||
| Contributed surplus |
9,137 |
8,385 |
||||
| Retained earnings |
197,501 |
313,361 |
||||
| Accumulated other comprehensive income |
6,323 |
3,767 |
||||
| Total equity attributable to shareholders |
1,202,980 |
1,292,843 |
||||
| Equity attributable to non-controlling interest |
16,175 |
17,283 |
||||
| Total shareholders' equity |
1,219,155 |
1,310,126 |
||||
| 2,675,514 |
2,784,582 |
|||||
| 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) |
2015 |
2014 |
2015 |
2014 |
||||||
| Revenues |
203,121 |
214,041 |
621,716 |
631,459 |
||||||
| Direct cost of sales, general and administrative expenses |
134,422 |
134,310 |
400,022 |
400,170 |
||||||
| Depreciation and amortization |
6,056 |
7,385 |
17,919 |
18,653 |
||||||
| Interest expense |
13,140 |
13,453 |
38,567 |
35,327 |
||||||
| Broadcast license and goodwill impairment |
— |
75,000 |
130,000 |
83,000 |
||||||
| Intangible asset impairment |
51,786 |
— |
51,786 |
— |
||||||
| Business acquisition, integration and restructuring costs |
2,693 |
560 |
10,695 |
41,216 |
||||||
| Gain on acquisition |
— |
— |
— |
(127,884) |
||||||
| Other (income) expense, net |
1,405 |
(1,489) |
(12,691) |
7,216 |
||||||
| Income (loss) before income taxes |
(6,381) |
(15,178) |
(14,582) |
173,761 |
||||||
| Income tax expense |
486 |
13,691 |
24,962 |
43,224 |
||||||
| Net income (loss) for the period |
(6,867) |
(28,869) |
(39,544) |
130,537 |
||||||
| Net income (loss) attributable to: |
||||||||||
| Shareholders |
(8,109) |
(30,325) |
(42,989) |
126,682 |
||||||
| Non-controlling interest |
1,242 |
1,456 |
3,445 |
3,855 |
||||||
| (6,867) |
(28,869) |
(39,544) |
130,537 |
|||||||
| Earnings (loss) per share attributable to shareholders: |
||||||||||
| Basic |
$ (0.09) |
$ (0.36) |
$ (0.50) |
$ 1.49 |
||||||
| Diluted |
$ (0.09) |
$ (0.36) |
$ (0.50) |
$ 1.49 |
||||||
| Net income (loss) for the period |
(6,867) |
(28,869) |
(39,544) |
130,537 |
||||||
| Other comprehensive income (loss), net of tax: |
||||||||||
| Items that may be reclassified subsequently to income: |
||||||||||
| Unrealized foreign currency translation adjustment |
(657) |
(646) |
3,010 |
1,620 |
||||||
| Unrealized change in fair value of available-for-sale investments |
(51) |
392 |
(191) |
454 |
||||||
| Unrealized change in fair value of cash flow hedges |
191 |
37 |
(263) |
(109) |
||||||
| (517) |
(217) |
2,556 |
1,965 |
|||||||
| Comprehensive income (loss) for the period |
(7,384) |
(29,086) |
(36,988) |
132,502 |
||||||
| Comprehensive income (loss) attributable to: |
||||||||||
| Shareholders |
(8,626) |
(30,542) |
(40,433) |
128,647 |
||||||
| Non-controlling interest |
1,242 |
1,456 |
3,445 |
3,855 |
||||||
| (7,384) |
(29,086) |
(36,988) |
132,502 |
|||||||
| CORUS ENTERTAINMENT INC. |
||||||||||||||
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
||||||||||||||
| (unaudited - in thousands of Canadian dollars) |
Share |
Contributed |
Retained |
Accumulated |
Total equity |
Non- |
Total |
|||||||
| At August 31, 2014 |
967,330 |
8,385 |
313,361 |
3,767 |
1,292,843 |
17,283 |
1,310,126 |
|||||||
| Comprehensive income (loss) |
— |
— |
(42,989) |
2,556 |
(40,433) |
3,445 |
(36,988) |
|||||||
| Dividends declared |
— |
— |
(72,871) |
— |
(72,871) |
(4,553) |
(77,424) |
|||||||
| Issuance of shares under stock option plan |
6,741 |
(1,090) |
— |
— |
5,651 |
— |
5,651 |
|||||||
| Issuance of shares under dividend reinvestment plan |
15,948 |
— |
— |
— |
15,948 |
— |
15,948 |
|||||||
| Share-based compensation expense |
— |
1,842 |
— |
— |
1,842 |
— |
1,842 |
|||||||
| At May 31, 2015 |
990,019 |
9,137 |
197,501 |
6,323 |
1,202,980 |
16,175 |
1,219,155 |
|||||||
| At August 31, 2013 |
937,183 |
7,221 |
256,517 |
1,653 |
1,202,574 |
18,259 |
1,220,833 |
|||||||
| Comprehensive income |
— |
— |
126,682 |
1,965 |
128,647 |
3,855 |
132,502 |
|||||||
| Dividends declared |
— |
— |
(68,014) |
— |
(68,014) |
(6,001) |
(74,015) |
|||||||
| Issuance of shares under stock option plan |
1,737 |
(278) |
— |
— |
1,459 |
— |
1,459 |
|||||||
| Issuance of shares under dividend reinvestment plan |
18,557 |
— |
— |
— |
18,557 |
— |
18,557 |
|||||||
| Share-based compensation expense |
— |
1,489 |
— |
— |
1,489 |
— |
1,489 |
|||||||
| At May 31, 2014 |
957,477 |
8,432 |
315,185 |
3,618 |
1,284,712 |
16,113 |
1,300,825 |
|||||||
| CORUS ENTERTAINMENT INC. |
|||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
| Three months ended May 31, |
Nine months ended May 31, |
||||||||
| (unaudited - in thousands of Canadian dollars) |
2015 |
2014 |
2015 |
2014 |
|||||
| OPERATING ACTIVITIES |
|||||||||
| Net income (loss) for the period |
(6,867) |
(28,869) |
(39,544) |
130,537 |
|||||
| Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|||||||||
| Depreciation and amortization |
6,056 |
7,385 |
17,919 |
18,653 |
|||||
| Broadcast license and goodwill impairment |
— |
75,000 |
130,000 |
83,000 |
|||||
| Intangible asset impairment |
51,786 |
— |
51,786 |
— |
|||||
| Amortization of program and film rights |
54,078 |
51,624 |
161,781 |
153,768 |
|||||
| Amortization of film investments |
4,797 |
4,201 |
18,410 |
13,256 |
|||||
| Deferred income taxes |
(2,704) |
(637) |
(3,721) |
4,384 |
|||||
| Increase (decrease) in purchase price obligation |
— |
(1,952) |
— |
3,336 |
|||||
| Share-based compensation expense |
376 |
528 |
1,842 |
1,489 |
|||||
| Imputed interest |
4,076 |
3,840 |
11,053 |
10,985 |
|||||
| Tangible benefit obligation |
— |
— |
— |
31,916 |
|||||
| Gain on disposition of investment |
— |
— |
(16,964) |
— |
|||||
| Gain on acquisition |
— |
— |
— |
(127,884) |
|||||
| Other |
1,677 |
485 |
3,565 |
1,900 |
|||||
| Net change in non-cash working capital balances related to operations |
3,058 |
14,870 |
(11,797) |
3,312 |
|||||
| Payment of program and film rights |
(36,182) |
(43,975) |
(135,189) |
(104,653) |
|||||
| Net additions to film investments |
(10,867) |
(19,017) |
(34,713) |
(32,765) |
|||||
| Cash provided by operating activities |
69,284 |
63,483 |
154,428 |
191,234 |
|||||
| INVESTING ACTIVITIES |
|||||||||
| Additions to property, plant and equipment |
(4,941) |
(3,435) |
(12,695) |
(7,715) |
|||||
| Business combinations |
— |
(5,265) |
— |
(496,706) |
|||||
| Proceeds from disposition of investment |
— |
— |
18,490 |
— |
|||||
| Net cash flows for intangibles, investments and other assets |
(2,969) |
(2,321) |
(20,555) |
(7,395) |
|||||
| Other |
(668) |
(201) |
(3,390) |
(323) |
|||||
| Cash used in investing activities |
(8,578) |
(11,222) |
(18,150) |
(512,139) |
|||||
| FINANCING ACTIVITIES |
|||||||||
| Increase (decrease) in bank loans |
(34,966) |
(39,964) |
(44,863) |
333,101 |
|||||
| Financing fees |
— |
— |
(750) |
(587) |
|||||
| Issuance of shares under stock option plan |
815 |
566 |
5,651 |
1,459 |
|||||
| Dividends paid |
(20,100) |
(16,380) |
(56,001) |
(48,316) |
|||||
| Dividends paid to non-controlling interest |
— |
— |
(4,553) |
(6,001) |
|||||
| Other |
(820) |
(532) |
(3,499) |
(1,781) |
|||||
| Cash provided by (used in) financing activities |
(55,071) |
(56,310) |
(104,015) |
277,875 |
|||||
| Net change in cash and cash equivalents during the period |
5,635 |
(4,049) |
32,263 |
(43,030) |
|||||
| Cash and cash equivalents, beginning of the period |
38,213 |
42,285 |
11,585 |
81,266 |
|||||
| Cash and cash equivalents, end of the period |
43,848 |
38,236 |
43,848 |
38,236 |
|||||
| CORUS ENTERTAINMENT INC. |
|||||||||
| BUSINESS SEGMENT INFORMATION |
|||||||||
| (unaudited - in thousands of Canadian dollars) |
|||||||||
| Three months ended May 31, 2015 |
|||||||||
| Television |
Radio |
Corporate |
Consolidated |
||||||
| Revenues |
162,767 |
40,354 |
— |
203,121 |
|||||
| Direct cost of sales, general and administrative expenses |
98,692 |
30,897 |
4,833 |
134,422 |
|||||
| Segment profit (loss)(1) |
64,075 |
9,457 |
(4,833) |
68,699 |
|||||
| Depreciation and amortization |
6,056 |
||||||||
| Interest expense |
13,140 |
||||||||
| Intangible asset impairment |
51,786 |
||||||||
| Business acquisition, integration and restructuring costs |
2,693 |
||||||||
| Other expense (income), net |
1,405 |
||||||||
| Loss before income taxes |
(6,381) |
||||||||
| Three months ended May 31, 2014 |
|||||||||
| Television |
Radio |
Corporate |
Consolidated |
||||||
| Revenues |
170,565 |
43,476 |
— |
214,041 |
|||||
| Direct cost of sales, general and administrative expenses |
94,886 |
31,798 |
7,626 |
134,310 |
|||||
| Segment profit (loss)(1) |
75,679 |
11,678 |
(7,626) |
79,731 |
|||||
| Depreciation and amortization |
7,385 |
||||||||
| Interest expense |
13,453 |
||||||||
| Broadcast license and goodwill impairment |
75,000 |
||||||||
| Business acquisition, integration and restructuring costs |
560 |
||||||||
| Other expense (income), net |
(1,489) |
||||||||
| Loss before income taxes |
(15,178) |
||||||||
| Nine months ended May 31, 2015 |
|||||||||
| Television |
Radio |
Corporate |
Consolidated |
||||||
| Revenues |
499,432 |
122,284 |
— |
621,716 |
|||||
| Direct cost of sales, general and administrative expenses |
291,878 |
93,780 |
14,364 |
400,022 |
|||||
| Segment profit (loss)(1) |
207,554 |
28,504 |
(14,364) |
221,694 |
|||||
| Depreciation and amortization |
17,919 |
||||||||
| Interest expense |
38,567 |
||||||||
| Broadcast license and goodwill impairment |
130,000 |
||||||||
| Intangible asset impairment |
51,786 |
||||||||
| Business acquisition, integration and restructuring costs |
10,695 |
||||||||
| Other expense (income), net |
(12,691) |
||||||||
| Loss before income taxes |
(14,582) |
||||||||
| (1) |
Segment profit does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2015 Report to Shareholders. |
|||||
| Nine months ended May 31, 2014 |
|||||||||
| Television |
Radio |
Corporate |
Consolidated |
||||||
| Revenues |
500,615 |
130,844 |
— |
631,459 |
|||||
| Direct cost of sales, general and administrative expenses |
284,378 |
94,859 |
20,933 |
400,170 |
|||||
| Segment profit (loss)(1) |
216,237 |
35,985 |
(20,933) |
231,289 |
|||||
| Depreciation and amortization |
18,653 |
||||||||
| Interest expense |
35,327 |
||||||||
| Broadcast license and goodwill impairment |
83,000 |
||||||||
| Gain on acquisition |
(127,884) |
||||||||
| Business acquisition, integration and restructuring costs |
41,216 |
||||||||
| Other expense (income), net |
7,216 |
||||||||
| Income before income taxes |
173,761 |
||||||||
| (1) |
Segment profit does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2015 Report to Shareholders. |
|||||
| Revenues by type |
||||||||||||
| Three months ended |
Nine months ended |
|||||||||||
| May 31, |
May 31, |
|||||||||||
| 2015 |
2014 |
2015 |
2014 |
|||||||||
| Advertising |
97,048 |
108,039 |
299,323 |
319,281 |
||||||||
| Subscriber fees |
84,282 |
86,522 |
254,941 |
249,199 |
||||||||
| Merchandising, distribution and other |
21,791 |
19,480 |
67,452 |
62,979 |
||||||||
| 203,121 |
214,041 |
621,716 |
631,459 |
|||||||||
SOURCE Corus Entertainment Inc.
Doug Murphy, President and Chief Executive Officer, Corus Entertainment Inc., 416.479.6649; Tom Peddie, Executive Vice President and Chief Financial Officer, Corus Entertainment Inc., 416.479.6080; Sally Tindal, Director, Communications, Corus Entertainment Inc., 416.479.6107
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