Astral shows continued growth in the second quarter of Fiscal 2013

• 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 66^th 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.

1. 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.
2. For more details, see "Additional IFRS and Non-IFRS Measures" in Appendix 1.
3. 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)

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)

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)

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

ASTRAL MEDIA INC.
Business Segments
for the periods ended February 28, 2013 and February 29, 2012
(in thousands of Canadian dollars)
(unaudited)

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:

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:

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.