Corus Entertainment Announces Fiscal 2019 Second Quarter Results

  • Consolidated revenues increased 4% for the quarter and 3% year-to-date, driven by an 11% increase in Television advertising revenues for the quarter and 7% year-to-date
  • Consolidated segment profit(1) was flat for the quarter and up 5% for the year-to-date
  • Consolidated segment profit margin(1) of 29% for the quarter and 36% for the year-to-date
  • Net income attributable to shareholders of $6.3(2) million ($0.03 per share basic) for the quarter and $66.8(2) million ($0.31 per share basic) for the year-to-date
  • Free cash flow(1) of $83.9 million for the quarter and $126.3 million for the year-to-date

TORONTO, April 5, 2019 /PRNewswire/ – Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

“Corus delivered another strong quarter, with double-digit Television advertising revenue growth exceeding our expectations,” said Doug Murphy, President and Chief Executive Officer. “The benefits of our ongoing progress in advanced advertising and data initiatives, our client centric approach and robust advertising demand are reflected in these positive results, partially offset by softness in our Radio segment and timing-related variability in our content business. Notably, the strength of our free cash flow in the quarter is accelerating our progress towards our leverage targets and supporting the advancement of our strategic priorities as we continue to build for the future.”

Financial Highlights


Three months ended

Six months ended


February 28,

February 28,

(in thousands of Canadian dollars except per share amounts)

2019

2018

2019

2018

Revenues





Television

353,466

336,222

779,656

751,686

Radio

30,649

33,243

71,930

75,167


384,115

369,465

851,586

826,853

Segment profit (1)





Television

113,709

103,646

298,262

272,248

Radio

4,955

6,883

17,967

20,404

Corporate

(5,516)

2,230

(11,443)

(2,006)


113,148

112,759

304,786

290,646

Net income attributable to shareholders (2)

6,344

40,042

66,759

117,715

Adjusted net income attributable to shareholders (1) (2) (3)

15,733

41,880

85,844

120,765

Basic earnings per share (2)

$0.03

$0.19

$0.31

$0.57

Adjusted basic earnings per share (1) (2) (3)

$0.07

$0.20

$0.40

$0.58

Diluted earnings per share (2)

$0.03

$0.19

$0.31

$0.57

Free cash flow (1)

83,909

82,073

126,315

165,288

(1)

Segment profit, segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, and free cash flow do not have standardized meanings prescribed by IFRS. The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions, explanations and reconciliations see discussion under the Key Performance Indicators section of the Second Quarter 2019 Report to Shareholders.

(2)

Net income attributable to shareholders as well as basic and diluted earnings per share for the three and six months ended February 28, 2019 was impacted by a change in accounting estimate related to the useful life of the Company’s television brand assets. Commencing September 1, 2018, the useful life of television brand assets was changed from indefinite life to lives ranging from three to 20 years. For the three and six months ended February 28, 2019, this has resulted in an additional $34.9 million and $69.8 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income attributable to shareholders, net of income taxes, by $25.7 million ($0.12 per share basic) and $51.3 million ($0.24 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Second Quarter 2019 Report to Shareholders.

(3)

Refer to page 10 of this press release for details of adjustments to arrive at adjusted net income attributable to shareholders and adjusted basic earnings per share.

Consolidated Results from Operations

Consolidated revenues for the three months ended February 28, 2019 were $384.1 million, up 4% from $369.5 million last year and consolidated segment profit was $113.1 million, relatively consistent with $112.8 million last year. Net income attributable to shareholders for the quarter ended February 28, 2019 was $6.3 million ($0.03 per share basic), compared to $40.0 million ($0.19 per share basic) last year. Net income attributable to shareholders for the second quarter of fiscal 2019 includes business acquisition, integration and restructuring costs of $4.0 million ($0.01 per share, net of income taxes) and an impairment of an investment in associates of $8.7 million ($0.03 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $15.7 million ($0.07 per share basic) for the quarter. Net income attributable to shareholders for the prior year quarter includes business acquisition, integration and restructuring costs of $2.5 million ($0.01 per share, net of income taxes). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $41.9 million ($0.20 per share basic) for the prior year quarter.

Consolidated revenues for the six months ended February 28, 2019 were $851.6 million, up 3% from $826.9 million last year.  Consolidated segment profit was $304.8 million, up 5% from $290.6 million last year.  Net income attributable to shareholders for the six months ended February 28, 2019 was $66.8 million ($0.31 per share basic), compared to net income attributable to shareholders of $117.7 million ($0.57 per share basic) last year. Net income attributable to shareholders for the six months ended February 28, 2019 includes business acquisition, integration and restructuring costs of $17.2 million ($0.06 per share, net of income taxes) and an impairment of an investment in associates of $8.7 million ($0.03 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $85.8 million ($0.40 per share basic) for the current fiscal year. Net income attributable to shareholders for the six months ended February 28, 2018 includes business acquisition, integration and restructuring costs of $4.1 million ($0.01 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $120.8 million ($0.58 per share basic) for the prior fiscal year.

Consolidated net income attributable to shareholders as well as basic and diluted earnings per share for the three and six months ended February 28, 2019 was impacted by a change in accounting estimate related to the useful life of the Company’s television brands. Commencing September 1, 2018, the useful life of television brands was changed from indefinite life to lives ranging from three to 20 years. For the three and six months ended February 28, 2019, this has resulted in an additional $34.9 million and $69.8 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income attributable to shareholders, net of income taxes, by $25.7 million ($0.12 per share basic) and $51.3 million ($0.24 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Second Quarter 2019 Report to Shareholders.

Operational Results – Highlights for Q1 2019 

Television

  • Segment revenues increased 5% in Q2 2019 and 4% for the year-to-date
  • Advertising revenues increased 11% in Q2 2019 and 7% for the year-to-date
  • Subscriber revenues were down 1% in Q2 2019 and flat for the year-to-date
  • Merchandising, distribution and other revenues were down $2.5 million (13%) in Q2 2019 and $2.0 million (6%) for the year-to-date
  • Segment profit(1) increased 10% in both Q2 2019 and the year-to-date
  • Segment profit margin(1) of 32% in Q2 2019 and 38% for the year-to-date, compared to 31% and 36%, respectively, in the prior year

Radio

  • Segment revenues decreased 8% in Q2 2019 and 4% for the year-to-date
  • Segment profit(1) decreased $1.9 million (28%) in Q2 2019 and $2.4 million (12%) for the year-to-date
  • Segment profit margin(1) of 16% in Q2 2019 and 25% for the year-to-date, compared to 21% and 27%, respectively, in the prior year

(1)

Segment profit and segment profit margin 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 section of the Second Quarter 2019 Report to Shareholders.

Corporate

  • Free cash flow(1) of $83.9 million in Q2 2019 and $126.3 million for the year-to-date, compared to $82.1 million and $165.3 million, respectively, in the prior year
  • Net debt to segment profit(1) leverage of 3.05 times at February 28, 2019, down from 3.28 times at August 31, 2018, in part due to debt repayments of $117.6 million for the year-to-date
  • Consolidated segment profit margin(1) of 29% in Q2 2019 and 36% for the year-to-date, compared to 31% and 35%, respectively, in the prior year

(1)

Segment profit, segment profit margin, and free cash flow 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 section of the Second Quarter 2019 Report to Shareholders.

Corus Entertainment Inc. reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three and six months ended February 28, 2019 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 April 5, 2019 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 1.647.427.7450 and for North America is 1.888.231.8191. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of adjusted net income attributable to shareholders, adjusted basic earnings per share and free cash flow that are not in accordance with, nor an alternate to, generally accepted accounting principles (“IFRS”) and may be different from non-IFRS measures used by other companies. In addition, these non-IFRS measures are not based on any comprehensive set of accounting rules or principles.

Non-IFRS 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-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company’s non-IFRS 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 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 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 information”). 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 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 may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions and 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, interest rates, stability of the advertising, distribution, merchandise and subscription markets, operating and capital costs and tariffs, taxes and fees, our ability to source desirable content and our capital and operating results being consistent with our 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: 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 any forward-looking information may be found under the heading “Risks and Uncertainties” in the Management’s Discussion and Analysis for the year ended August 31, 2018 and the second quarter ended February 28, 2019 and under the heading “Risk Factors” in our Annual Information Form. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on our 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. The company’s portfolio of multimedia offerings encompass 37 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital assets, animation software, technology and media services. Corus is also an established creator of globally distributed content through Nelvana animation studio, Corus Studios, and children’s book publishing house Kids Can Press. The company also owns innovative full-service social digital agency so.da, and lifestyle entertainment company Kin Canada. Corus’ roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, National Geographic, Disney Channel Canada, YTV and Nickelodeon Canada, Global News, Globalnews.ca, Q107, Country 105, and CFOX. Visit Corus at www.corusent.com.

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

 

(unaudited – in thousands of Canadian dollars)

As at February 28,

As at August 31,

2019

2018

ASSETS



Current



Cash and cash equivalents

67,650

94,801

Accounts receivable

436,966

388,751

Income taxes recoverable

3,305

Prepaid expenses and other assets

24,591

20,723

Total current assets

529,207

507,580

Tax credits receivable

25,744

18,047

Investments and other assets

69,593

82,213

Property, plant and equipment

219,216

231,192

Program rights

579,897

538,357

Film investments

54,172

43,424

Intangibles (1)

1,935,236

2,012,086

Goodwill

1,387,652

1,387,652

Deferred income tax assets

69,243

62,403


4,869,960

4,882,954

 

LIABILITIES AND EQUITY



Current



Accounts payable and accrued liabilities

444,275

405,762

Current portion of long-term debt

79,466

106,375

Provisions

11,462

11,175

Income taxes payable

9,274

Total current liabilities

544,477

523,312

 

Long-term debt

 

1,789,166

 

1,877,558

Other long-term liabilities

329,907

295,206

Provisions

10,831

7,801

Deferred income tax liabilities

484,952

502,274

Total liabilities

3,159,333

3,206,151

 

EQUITY



Share capital

830,477

2,330,477

Contributed surplus

1,512,366

12,119

Accumulated deficit

(814,531)

(856,668)

Accumulated other comprehensive income

31,326

36,460

Total equity attributable to shareholders

1,559,638

1,522,388

Equity attributable to non-controlling interest

150,989

154,415

Total equity

1,710,627

1,676,803


4,869,960

4,882,954

(1)

Net income attributable to shareholders as well as basic and diluted earnings per share for the three and six months ended February 28, 2019 was impacted by a change in accounting estimate related to the useful life of the Company’s television brand assets. Commencing September 1, 2018, the useful life of television brand assets was changed from indefinite life to lives ranging from three to 20 years. For the three and six months ended February 28, 2019, this has resulted in an additional $34.9 million and $69.8 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income attributable to shareholders, net of income taxes, by $25.7 million ($0.12 per share basic) and $51.3 million ($0.24 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Second Quarter 2019 Report to Shareholders.

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)


Three months ended

Six months ended


February 28,

February 28,

(unaudited – in thousands of Canadian dollars except per share amounts)

2019

2018

2019

2018

Revenues

384,115

369,465

851,586

826,853

Direct cost of sales, general and administrative expenses

270,967

256,706

546,800

536,207

Depreciation and amortization (1)

54,801

20,832

109,129

41,590

Interest expense

31,846

31,766

63,185

63,841

Business acquisition, integration and restructuring costs

4,047

2,475

17,228

4,083

Other expense (income), net

6,521

(3,473)

7,758

4,081

Income before income taxes

15,933

61,159

107,486

177,051

Income tax expense

4,213

15,446

28,990

46,331

Net income for the period

11,720

45,713

78,496

130,720

 

Other comprehensive income (loss), net of income taxes:





Items that may be reclassified subsequently to income:





Unrealized foreign currency translation adjustment

(170)

(8)

120

430

Unrealized change in fair value of cash flow hedges

(14,368)

14,128

(14,746)

13,719


(14,538)

14,120

(14,626)

14,149

Items that will not be reclassified to income:





Unrealized change in fair value of financial assets

96

96

Actuarial gain (loss) on post-retirement benefit plans

(3,502)

1,871

(1,176)

(868)


(3,406)

1,871

(1,080)

(868)

Other comprehensive income (loss), net of income taxes

(17,944)

15,991

(15,706)

13,281

Comprehensive income (loss) for the period

(6,224)

61,704

62,790

144,001

Net income attributable to:





Shareholders

6,344

40,042

66,759

117,715

Non-controlling interest

5,376

5,671

11,737

13,005


11,720

45,713

78,496

130,720

Comprehensive income (loss) attributable to:





Shareholders

(11,600)

56,033

51,053

130,996

Non-controlling interest

5,376

5,671

11,737

13,005


(6,224)

61,704

62,790

144,001

Earnings per share attributable to shareholders:





Basic

$0.03

$0.19

$0.31

$0.57

Diluted

$0.03

$0.19

$0.31

$0.57

(1)

Net income attributable to shareholders as well as basic and diluted earnings per share for the three and six months ended February 28, 2019 was impacted by a change in accounting estimate related to the useful life of the Company’s television brand assets. Commencing September 1, 2018, the useful life of television brand assets was changed from indefinite life to lives ranging from three to 20 years. For the three and six months ended February 28, 2019, this has resulted in an additional $34.9 million and $69.8 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income attributable to shareholders, net of income taxes, by $25.7 million ($0.12 per share basic) and $51.3 million ($0.24 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Second Quarter 2019 Report to Shareholders.

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, 2018, as previously presented

2,330,477

12,119

(856,668)

36,460

1,522,388

154,415

1,676,803

IFRS 9 transitional adjustment(1)

9,396

9,396

9,396

IFRS 15 transitional adjustment(1)

1,985

1,985

1,985

Adjusted balance as at September 1, 2018

2,330,477

12,119

(854,683)

45,856

1,533,769

154,415

1,688,184

Comprehensive income (loss)

66,759

(15,706)

51,053

11,737

62,790

Dividends declared

(25,431)

(25,431)

(15,163)

(40,594)

Reduction of stated capital

(1,500,000)

1,500,000

Actuarial loss on post-retirement benefit plans

(1,176)

1,176

Share-based compensation expense

247

247

247

As at February 28, 2019

830,477

1,512,366

(814,531)

31,326

1,559,638

150,989

1,710,627

















(unaudited – in thousands of Canadian dollars)

Share

capital

Contributed
surplus

Retained

earnings

Accumulated
other

comprehensive
income

Total equity

attributable
to

shareholders

Non-

controlling

interest

Total equity

As at August 31, 2017

2,291,814

11,449

114,492

22,938

2,440,693

158,828

2,599,521

Comprehensive income

117,715

13,281

130,996

13,005

144,001

Dividends declared

(118,294)

(118,294)

(16,188)

(134,482)

Issuance of shares under dividend reinvestment plan

18,584

18,584

18,584

Issuance of shares under stock option plan

85

85

85

Actuarial loss on post-retirement benefit plans

(868)

868

Share-based compensation expense

356

356

356

As at February 28, 2018

2,310,483

11,805

113,045

37,087

2,472,420

155,645

2,628,065









(1)

Refer to the Company’s Second Quarter 2019 Report to Shareholders for details on New Accounting Pronouncements Adopted in Fiscal 2019 in the Impact of New Accounting Policies and Changes in Estimates section.

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS


Three months ended

Six months ended


February 28,

February 28,

(unaudited – in thousands of Canadian dollars)

2019

2018

2019

2018

OPERATING ACTIVITIES





Net income for the period

11,720

45,713

78,496

130,720

Adjustments to reconcile net income to cash flow from operations:





Amortization of program rights

127,558

125,692

257,128

259,075

Amortization of film investments

2,856

3,329

6,385

5,855

Depreciation and amortization

54,801

20,832

109,129

41,590

Deferred income taxes (recovery)

(10,600)

267

(19,947)

98

Impairment of investment in associate

8,720

8,720

Share-based compensation expense

202

168

247

356

Imputed interest

11,071

11,011

21,665

22,878

Proceeds from termination of interest rate swap

24,644

Payment of program rights

(126,590)

(122,692)

(236,804)

(238,369)

Net spend on film investments

(17,722)

(11,533)

(28,385)

(20,281)

CRTC benefit payments

(50)

(186)

(911)

(897)

Other

(338)

(3,154)

(3,808)

(2,728)

Cash flow from operations

61,628

69,447

191,915

222,941

Net change in non-cash working capital balances related to operations

24,692

17,055

(60,224)

(50,762)

Cash provided by operating activities

86,320

86,502

131,691

172,179

INVESTING ACTIVITIES





Additions to property, plant and equipment

(3,591)

(3,378)

(6,160)

(4,959)

Proceeds from sale of property

6

9

545

Net cash flows for intangibles, investments and other assets

(2,124)

(2,773)

(2,523)

(3,679)

Cash used in investing activities

(5,709)

(6,151)

(8,674)

(8,093)

FINANCING ACTIVITIES





Decrease in bank loans

(60,539)

(28,165)

(117,548)

(54,727)

Deferred financing costs

(4,088)

Issuance of shares under stock option plan

85

Dividends paid

(12,717)

(50,319)

(12,717)

(99,367)

Dividends paid to non-controlling interest

(9,941)

(4,179)

(17,163)

(16,188)

Other

(431)

(742)

(2,740)

(3,086)

Cash used in financing activities

(83,628)

(83,405)

(150,168)

(177,371)

Net change in cash and cash equivalents during the period

(3,017)

(3,054)

(27,151)

(13,285)

Cash and cash equivalents, beginning of the period

70,667

83,470

94,801

93,701

Cash and cash equivalents, end of the period

67,650

80,416

67,650

80,416

CORUS ENTERTAINMENT INC.
BUSINESS SEGMENT INFORMATION

 

(unaudited – in thousands of Canadian dollars)





Three months ended February 28, 2019






Television

Radio

Corporate

Consolidated

Revenues

353,466

30,649

384,115

Direct cost of sales, general and administrative expenses

239,757

25,694

5,516

270,967

Segment profit (loss)(1)

113,709

4,955

(5,516)

113,148

Depreciation and amortization




54,801

Interest expense




31,846

Business acquisition, integration and restructuring costs




4,047

Other expense, net




6,521

Income before income taxes




15,933

 

Three months ended February 28, 2018






Television

Radio

Corporate

Consolidated

Revenues

336,222

33,243

369,465

Direct cost of sales, general and administrative expenses (recovery)

 

232,576

 

26,360

 

(2,230)

 

256,706

Segment profit(1)

103,646

6,883

2,230

112,759

Depreciation and amortization




20,832

Interest expense




31,766

Business acquisition, integration and restructuring costs




2,475

Other income, net




(3,473)

Income before income taxes




61,159

 

Six months ended February 28, 2019






Television

Radio

Corporate

Consolidated

Revenues

779,656

71,930

851,586

Direct cost of sales, general and administrative expenses

481,394

53,963

11,443

546,800

Segment profit (loss)(1)

298,262

17,967

(11,443)

304,786

Depreciation and amortization




109,129

Interest expense




63,185

Business acquisition, integration and restructuring costs




17,228

Other expense, net




7,758

Income before income taxes




107,486






(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 Second Quarter 2019 Report to Shareholders.

(unaudited – in thousands of Canadian dollars)





Six months ended February 28, 2018






Television

Radio

Corporate

Consolidated

Revenues

751,686

75,167

826,853

Direct cost of sales, general and administrative expenses

479,438

54,763

2,006

536,207

Segment profit (loss)(1)

272,248

20,404

(2,006)

290,646

Depreciation and amortization




41,590

Interest expense




63,841

Business acquisition, integration and restructuring costs




4,083

Other expense, net




4,081

Income before income taxes




177,051

(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 Second Quarter 2019 Report to Shareholders.

REVENUES BY TYPE


Three months ended

Six months ended


February 28,

February 28,

(unaudited – in thousands of Canadian dollars)

2019

2018

2019

2018

Advertising

240,284

221,663

561,619

533,874

Subscriber fees

125,639

127,008

252,323

253,263

Merchandising, distribution and other

18,192

20,794

37,644

39,716


384,115

369,465

851,586

826,853

NON-IFRS FINANCIAL MEASURES                                                                           


Three months ended

Six months ended

(unaudited – in thousands of Canadian dollars, except per share amounts)

February 28,

February 28,

Adjusted Net Income Attributable to Shareholders

2019

2018

2019

2018

Net income attributable to shareholders

6,344

40,042

66,759

117,715

Adjustments, net of income tax:





Impairment of investment in associate

6,409

6,409

Business acquisition, integration and restructuring costs

2,980

1,838

12,676

3,050

Adjusted net income attributable to shareholders

15,733

41,880

85,844

120,765

Basic earnings per share

$0.03

$0.19

$0.31

$0.57

Adjustments, net of income tax:





Impairment of investment in associate

$0.03

$0.03

Business acquisition, integration and restructuring costs

$0.01

$0.01

$0.06

$0.01

Adjusted basic earnings per share

$0.07

$0.20

$0.40

$0.58











Free Cash Flow





Cash provided by (used in):





Operating activities

86,320

86,502

131,691

172,179

Investing activities

(5,709)

(6,151)

(8,674)

(8,093)

 

Add: cash used in business combinations and strategic investments (1)

80,611

80,351

123,017

164,086

3,298

1,722

3,298

1,202

Free cash flow

83,909

82,073

126,315

165,288

(1) Strategic investments are comprised of investments in venture funds and associated companies.

SOURCE Corus Entertainment Inc.

Related Links

www.corusent.com

WHAT TO READ NEXT...