Astral reports strong first quarter results for Fiscal 2013

• 7% increase in net earnings¹
• 5% increase in diluted EPS¹
• 4% increase in EBITDA²

MONTREAL, Jan. 10, 2013 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A ACM.B) today reported its financial results for the first quarter ended November 30, 2012, which saw continued growth in net earnings¹, EPS¹, EBITDA², revenues and cash flow from operations².

In the first quarter, consolidated net earnings¹ rose 7% to $59.6 million from $55.8 million for the same period last year, while diluted earnings per share¹ increased by 5% to $1.05 from $1.00 last year. EBITDA² grew 4% to $93.7 million from $90.4 million last year, while consolidated revenues totalled $274.5 million, an increase of 1% over the $271.1 million recorded last year for the same period. Cash flow from operations at $69.2 million is slightly above last year's figure of $69.0 million.

"I am very pleased with our Company's consolidated and segmented performance in the first quarter of Fiscal 2013, marking the single largest quarter in the Company's history" said Ian Greenberg, President and Chief Executive Officer. "Our relentless focus on delivering better value to advertisers and consumers combined with the discipline that defines Astral's decision-making approach provide us with the optimal strategy to reach our objectives and continue to deliver balanced growth across our diversified asset portfolio."

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. 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.

As a result of the amendments made to the terms of the arrangement agreement: (i) the outside date for the closing of the transaction has been extended to June 1, 2013, with each of the Company and Bell having a further right to postpone it to July 31, 2013, (ii) Bell's regulatory covenants have been modified, and (iii) the Company's Board of directors has declared a cash dividend of $0.50 per share on its class A non-voting shares and class B subordinate voting shares, payable on February 1, 2013 to shareholders of record at the close of business on January 15, 2013. The consideration payable to the Company's shareholders remains unchanged under the amended arrangement agreement. The Bell-Astral Transaction is subject to closing conditions, including regulatory approvals from the CRTC and the Competition Bureau. There can be no assurance that the Bell-Astral Transaction will occur, or that it will occur on the terms and conditions currently contemplated.

SEGMENTED FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television

• Revenue growth of 2%;
• EBITDA² growth of 5%;
• EBITDA margin² of 39.3%, up from 38.2% for the same period last year.

Radio

• Revenue growth of 1%;
• EBITDA² growth of 1%;
• EBITDA margin² of 31.3%, consistent with last year;
• Prior to the beginning of the first quarter, rebranding of two stations in London and Winnipeg to the prestigious Virgin Radio brand, bringing the total of Astral Virgin Radio stations to seven;
• On November 23, inauguration of Canada's largest private radio broadcasting centre with five Astral French- and English-language stations under the same roof in Montréal.

Out-of-Home

• Revenue growth of 2%;
• EBITDA² growth of 1%;
• EBITDA margin² of 40.0%, consistent with last year;
• In September, launch of a brand new network of 30 urban Digital Columns in the heart of downtown Montréal;
• Announcement of the addition of 6 new Digital faces by February 2013 on Toronto's Gardiner Expressway, bringing Astral's popular national Digital Network to 49 faces.

Corporate

• Over the course of the first quarter, the Company repaid $7.0 million of its long-term debt, bringing its Net Debt and leverage ratio just below $356.0 million and 1.1 respectively;
• Astral announced in November a cash dividend of $0.50 per share on its class A non-voting shares and class B subordinate voting shares, payable on February 1, 2013.

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, January 10, 2013. To access the conference call dial 1-800-731-5319. The conference call will also be broadcasted 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.

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

ASTRAL MEDIA INC. 
Interim Consolidated Statements of Comprehensive Income
for the three months ended
(in thousands of Canadian dollars)
(unaudited)

ASTRAL MEDIA INC. 
Interim Consolidated Statements of Cash Flows
for the three months ended
(in thousands of Canadian dollars)
(unaudited)

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

ASTRAL MEDIA INC.
Business Segments
for the three months ended November 30,
(in thousands of Canadian dollars)
(unaudited)

ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended November 30, 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 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 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 November 30, 2012 and 2011 to EBITDA:

Net earnings and diluted earnings per share before 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 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 November 30 2012 and 2011 to net earnings and diluted earnings per share before Bell-Astral Transaction costs:

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.