Astral records a 16th consecutive year of growth

• 10% increase in Diluted EPS¹
• 9% increase in Net Earnings¹
• 4% increase in EBITDA²
• 1% in Revenues
• 5% increase in Cash Flow from Operations²
  
  

MONTREAL, Oct. 31, 2012 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A ACM.B) today reported solid financial results for the fourth quarter and the year ended August 31, 2012 and delivered continued growth in revenues, EBITDA², net earnings, EPS, and cash flow from operations².

In Fiscal 2012, consolidated net earnings¹ grew 9% over last year to $204.4 million from $188.0 million, while diluted earnings per share¹ grew 10% to $3.64 from $3.30 last year. EBITDA² rose 4% to $331.2 million from $318.4 million for the same period last year. Consolidated revenues for Fiscal 2012 totalled $1,021.9 million, a 1% increase over the $1,015.4 million recorded last year for the same period. Cash flow from operations² rose a healthy 5% to $259.0 million for the year compared to $246.5 million for the corresponding period last year.

In the fourth quarter, consolidated net earnings¹ grew 14% over last year to $54.3 million from $47.7 million, while diluted earnings per share¹ grew 13% to $0.96 from $0.85 last year. EBITDA² rose 11% to $85.6 million from $77.2 million for the same period last year. Consolidated revenues in the fourth quarter totalled $251.8 million, a 2% increase over the $247.6 million reported last year for the same period. Cash flow from operations² rose 11% to $71.1 million for the fourth quarter compared to $63.8 million for the corresponding period last year.

"I am very pleased with the solid performance delivered by our business units in Fiscal 2012, particularly with the strong finish in the fourth quarter, consolidating the Company's 16th consecutive year of profitable growth," said Ian Greenberg, President and Chief Executive Officer. "We remain fully committed to maintain the same financial discipline that allowed the Company to grow in Fiscal 2012 and to continue to invest in content and new products in order to offer the highest possible quality of products and services."

Bell-Astral Transaction³
On March 16, 2012, the Company announced that it entered into a definitive agreement with BCE Inc. ("Bell") for the sale of its business through the acquisition of all of its issued and outstanding shares. The transaction is valued at approximately $3.38 billion, including an estimated net debt of $380.0 million. The transaction is subject to closing conditions, including regulatory approvals from the CRTC and the Competition Bureau. On October 18, 2012 the CRTC issued its decision on Bell's application for authority to acquire and change the effective control of the Company and denied Bell's application. On October 22, 2012, Bell submitted its request that the Federal Cabinet issue a policy direction to the CRTC, under Section 7 of the Broadcasting Act, that directs the CRTC to follow its existing policies when reviewing change of control transactions in broadcasting. Bell stated that with such a Cabinet policy direction in place, it would then re-submit a Change of Control Application to the CRTC. There can be no assurance that the transaction will occur, or that it will occur on the terms and conditions currently contemplated.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television

• Revenue growth of 1% for the year (1% for the fourth quarter);
• EBITDA² growth of 2% for the year (1% for the fourth quarter);
• In July 2012, launch of the new Cartoon Network service, currently available to 2.3 million subscribers on Cogeco, Eastlink, Telus and Bell;

Radio

• Revenue decrease of 1% for the year (2% growth for the fourth quarter);
• EBITDA² growth of 4% for the year (23% growth for the fourth quarter);
• In January 2012, Astral completed the acquisition of all outstanding shares of Shore Media Group Inc., a radio broadcaster in Vancouver, BC, for a consideration of $13.4 million;
• In February 2012, launch of Astral Radio's all-new digital music service across NRJ and Virgin Radio networks.

Out-of-Home

• Revenue growth of 8% for the year (6% for the fourth quarter);
• EBITDA² growth of 10% for the year (9% for the fourth quarter);
• In June 2012, Astral Out-of-Home announced the addition of two new digital advertising faces in the greater Montréal region, bringing the total of faces in Astral's Digital Network to 41;
• Subsequent to year-end, launch by Astral Out-of-Home of a brand new network of 30 urban Digital Columns in the heart of downtown Montréal.

Corporate

• In October 2011, the Company established, in addition to its existing credit facility, a $700.0 million unsecured five-year revolving credit facility and entered into two new interest-rate swap agreements to hedge its exposure to interest rate fluctuations;
• During the year, the Company repaid $133.0 million of its long-term debt and repurchased 423,800 Class A shares for a total consideration of $14.2 million.
• Under the terms of the Bell-Astral Transaction³, the Company's dividend payment scheduled for August 2012 and activity under the Company's normal course issuer bid have been suspended;

The audited consolidated financial statements and related notes and the 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 2:30 p.m. (ET) on Wednesday, October 31, 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 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. We disclaim any intention or obligation to update or revise any forward-looking statements.

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.

ASTRAL MEDIA INC.
Consolidated Statements of Earnings
for the periods ended August 31, 2012 and 2011
(in thousands of Canadian dollars except for per-share data)
(unaudited)

ASTRAL MEDIA INC. 
Consolidated Statements of Comprehensive Income
for the periods ended August 31, 2012 and 2011
(in thousands of Canadian dollars)
(unaudited)

ASTRAL MEDIA INC. 
Consolidated Statements of Cash Flows
for the periods ended August 31, 2012 and 2011
(in thousands of Canadian dollars)
(unaudited)

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

ASTRAL MEDIA INC.
Business Segments
for the periods ended August 31, 2012 and 2011
(in thousands of Canadian dollars) (unaudited)

___________________

⁽¹⁾ See Appendix 1.

ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended August 31, 2012 and 2011
(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 additional pension plan contributions and 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, Bell-Astral Transaction costs and impairment of broadcast licences 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 audited consolidated statements of earnings for the periods ended August 31, 2012 and 2011 to EBITDA:

Earnings before income taxes, excluding impairment of broadcast licences. This measure provides an indication of the Company's ability to generate earnings and cash flows from its ongoing operations, by excluding the non-cash impairment of broadcast licences. The following table reconciles IFRS measures disclosed in the audited consolidated statements of earnings for the periods ended August 31, 2012 and 2011 to earnings before income taxes, excluding impairment of broadcast licences:

Net earnings and diluted earnings per share before acquisition and other costs, Bell-Astral Transaction costs, impairment of broadcast licences and tax rate changes. 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, Bell-Astral Transaction costs, impairment of broadcast licences and tax rate changes as they are not considered to be in the ordinary course of business.

The following tables reconcile IFRS measures disclosed in the audited consolidated statements of earnings for the periods ended August 31 2012 and 2011 to net earnings and diluted earnings per share before acquisition and other costs, Bell-Astral Transaction costs, impairment of broadcast licences and tax rate changes:

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.