Corus Entertainment Announces Fiscal 2021 Fourth Quarter and Year End Results
- Consolidated revenue increased 13% for the quarter and 2% for the year
- Consolidated segment profit1 increased 9% for the quarter and 4% for the year
- Consolidated segment profit margin1 of 28% for the quarter and 34% for the year
- Net income attributable to shareholders of $19.9 million ($0.10 per share basic) for the quarter and $172.6 million ($0.83 per share basic) for the year
- Net debt to segment profit1 of 2.76 times at August 31, 2021, down from 3.18 times at August 31, 2020
- Free cash flow1 of $35.2 million for the quarter and $251.9 million for the year
TORONTO, Oct. 22, 2021 /PRNewswire/ - Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year end financial results today.
"The benefits we are seeing from the disciplined execution of our strategic plan, in concert with emerging powerful tailwinds from the economic recovery, have resulted in yet another impressive quarter of top and bottom-line growth," said Doug Murphy, President and Chief Executive Officer. "Our winning Fall schedule is already delivering a strong start to the new fiscal year. We will maintain the focus on our balanced capital allocation strategy, with free cash flow directed towards the pursuit of our leverage target while we fund our attractive dividend and invest in the incredible opportunities we see in digital video, advertising innovation and our owned content business."
Financial Highlights
Three months ended |
Year ended |
||||||
August 31, |
% |
August 31, |
% |
||||
(in thousands of Canadian dollars except per share amounts) |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
|
Revenue |
|||||||
Television |
335,844 |
299,122 |
12% |
1,446,287 |
1,408,238 |
3% |
|
Radio |
25,411 |
19,274 |
32% |
97,196 |
102,998 |
(6%) |
|
361,255 |
318,396 |
13% |
1,543,483 |
1,511,236 |
2% |
||
Segment profit (loss) (1) |
|||||||
Television (2) |
110,026 |
98,787 |
11% |
549,159 |
508,715 |
8% |
|
Radio (2) |
4,316 |
1,195 |
261% |
14,151 |
16,023 |
(12%) |
|
Corporate (2) |
(11,642) |
(5,480) |
112% |
(38,692) |
(18,899) |
105% |
|
102,700 |
94,502 |
9% |
524,618 |
505,839 |
4% |
||
Segment profit margin (1) |
|||||||
Television |
33% |
33% |
38% |
36% |
|||
Radio |
17% |
6% |
15% |
16% |
|||
Consolidated |
28% |
30% |
34% |
33% |
|||
Net income (loss) attributable to shareholders |
19,920 |
30,278 |
(34%) |
172,550 |
(625,362) |
n/m |
|
Adjusted net income attributable to shareholders (1) |
21,669 |
33,181 |
(35%) |
182,218 |
158,057 |
15% |
|
Basic earnings (loss) per share |
$0.10 |
$0.15 |
$0.83 |
($2.98) |
|||
Adjusted basic earnings per share (1) |
$0.10 |
$0.16 |
$0.88 |
$0.75 |
|||
Diluted earnings (loss) per share |
$0.10 |
$0.15 |
$0.83 |
($2.98) |
|||
Free cash flow (1) |
35,181 |
87,353 |
(60%) |
251,947 |
296,247 |
(15%) |
|
(1) |
Segment profit (loss), segment profit margin, adjusted net income (loss) attributable to shareholders, adjusted basic earnings per share, free cash flow and net debt to segment profit do not have standardized meanings prescribed by International Financial Reporting Standards ("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 Fourth Quarter 2021 Report to Shareholders. |
(2) |
Segment profit included $1.0 million in Q4 (Television: $1.1 million; Radio: $0.2 million; Corporate reduction of $0.3 million) and $13.5 million for the year (Television: $11.1 million; Radio: $1.9 million; Corporate: $0.5 million) of estimated Canada Emergency Wage Subsidy ("CEWS") benefit and a reduction in the relief on CTRC regulatory fees of $0.2 million in Q4 (Television $0.3 million reduction, offset by Radio increase of $0.1 million) and $8.6 million for the year (Television: $7.5 million; Radio: $1.1 million). In the prior year, segment profit included $17.5 million in Q4 (Television: $14.3 million; Radio: $2.1 million; Corporate: $1.1 million) and $34.9 million for the year (Television: $27.8 million; Radio: $4.7 million; Corporate: $2.3 million) of estimated CEWS benefit. |
Segment Revenue
Three months ended |
Year ended |
||||||
August 31, |
% |
August 31, |
% |
||||
(in thousands of Canadian dollars) |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
|
Revenue |
335,844 |
||||||
Television |
299,122 |
12% |
1,446,287 |
1,408,238 |
3% |
||
Advertising |
176,942 |
146,565 |
21% |
842,202 |
823,448 |
2% |
|
Subscriber |
125,735 |
122,066 |
3% |
498,049 |
490,985 |
1% |
|
Merchandising, distribution and other |
33,167 |
30,491 |
9% |
106,036 |
93,805 |
13% |
|
Radio |
25,411 |
19,274 |
32% |
97,196 |
102,998 |
(6%) |
|
Total Revenue |
361,255 |
318,396 |
13% |
1,543,483 |
1,511,236 |
2% |
|
Optimized advertising revenue (1) |
34% |
21% |
100% |
31% |
22% |
43% |
|
New platform revenue (2) |
10% |
8% |
46% |
8% |
5% |
62% |
|
(1) |
Optimized advertising revenue reflects progress on the transformation of how Television advertising is sold. This metric includes revenue from audience segment selling as well as the Cynch automated buying platform expressed as a percentage of Television advertising revenue. |
(2) |
New platform revenue reflects progress on Corus' participation in rapidly growing streaming distribution platforms and digital advertising markets. This metric includes incremental subscriber revenue from new streaming initiatives and advertising revenue from digital platforms expressed as a percentage of total Television advertising and subscriber revenue. |
Operational Highlights
The Company advanced its Strategic Priorities, positioning Corus for a solid start to its new fiscal year. Global Television's line-up of Fall premieres has performed well in the rankings, Corus' streaming services once again experienced strong subscriber gains and demand for Nelvana and Corus Studios content remains robust, with a number of recent sales in the international market.
- On October 12, 2021, Discovery, Inc. announced an integrated marketing partnership with the Company as part of their expansion of discovery+ into Canada. Canadians will be introduced to discovery+ via marketing campaigns across the Company's portfolio of media assets, including linear networks, radio, digital and social platforms.
- As of October 21, 2021, the Company has reached a new milestone of more than 675,000 paying subscribers to its STACKTV, Nick+ and other streaming platforms, an increase from more than 600,000 paying subscribers on June 29, 2021.
- On October 21, 2021, the Company's subsidiary Nelvana announced international distribution for The Hardy Boys has been secured on Disney+ outside of the U.S. and Canada. The Daytime-Emmy® nominated live-action mystery series will launch in select international markets in 2022.
- On October 22, 2021, the Company's Corus Studios announced multiple international licensing sales, comprising 70 hours of content for the fiscal 2022 year-to-date. In addition to over 200 episodes sold in April, 2021, Hulu has acquired 58 episodes of original Corus Studios series Project Bakeover, Salvage Kings (Seasons 1 and 2), Worst to First (Seasons 1 and 2) and the pre-sale of Deadman's Curse. This latest sale follows an international sale to Discovery U.S.'s MotorTrend Group for Rust Valley Restorers (Seasons 1, 3 and the pre-sale of Season 4), announced August 10, 2021.
- Global Television has delivered 9 of the top 20 shows this Fall, including #1 hit program Survivor, as well as the top four new shows of the season with CSI: Vegas, NCIS: Hawai'i, Ghosts and FBI International.
Source: Numeris PPM Data, Total Canada, AMA(000), FL'21 Premiere Weeks: Sept20/21 – Oct10/21 – confirmed up to Oct3/21. Mo-Su 2a-2a, 1+ airings. A25-54. CDN CONV COM ENG excluding election coverage, specials and one-offs. |
Financial Highlights
- Free cash flow(1) of $35.2 million in Q4 and $251.9 million for the year compared to $87.4 million and $296.2 million, respectively, in the prior year. The decrease in free cash flow in the fourth quarter is attributable to higher income tax installments, higher payments for program rights in the current year due to COVID-19 related programming delays and cancellations in the prior year, as well as increased additions to property, plant, equipment, and software compared to the prior year. Free cash flow for the year decreased principally as a result of higher income tax installments, offset by CEWS receipts of $33.0 million.
- Net debt to segment profit(1) was 2.76 times at August 31, 2021, down from 3.18 times at August 31, 2020, principally due to repayment of bank loans of $650.6 million for the year, offset by the issue of the Senior Unsecured Notes due 2028 (the "Notes") of $500.0 million in the third quarter that were added to net debt, and the improvement in segment profit.
- As of August 31, 2021, the Company had $43.7 million of cash and cash equivalents and a committed $300 million revolving credit facility that remains undrawn.
(1) |
Free cash flow and net debt to segment profit 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 Fourth Quarter 2021 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended August 31, 2020. |
Corus Entertainment Inc. reports its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial statements and accompanying notes for the three months and year ended August 31, 2021 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 October 22, 2021 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 1.647.792.1240 and for North America is 1.800.437.2398. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
COVID-19 Update
All provinces and territories continue with vaccination programs to inoculate Canadians against COVID-19, with approximately 82% of eligible Canadians fully inoculated as of October 15, 2021. Many provinces and territories have eased restrictions, but have seen infection rates increase considerably amongst those who remain unvaccinated, which may lead to the reintroduction of emergency measures to counter a resurgence of COVID-19 cases. Disruptions caused by the imposition of emergency measures, particularly in the retail, tourism and entertainment sectors, would continue to negatively impact advertising revenue. There can be no certainty that inoculations will continue to reduce the impact of the COVID-19 pandemic on the Company's business in the short to medium term.
The extent to which COVID-19 and any other pandemic or public health crisis impacts the Company's business, affairs, operations, financial condition, liquidity, availability of credit and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to continue to contain the COVID-19 virus or remedy its impact, among others.
The Company's financial priorities remain unchanged. Importantly, the Company remains committed to increasing its financial flexibility over the longer term. In this environment the Company believes it is prudent to conserve cash out of an abundance of caution. The Company is constantly evaluating the situation and monitoring any impacts or potential impacts to its business.
Use of Non-IFRS Financial Measures
This press release includes the non-IFRS financial measures of segment profit, segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, free cash flow, net debt to segment profit, optimized revenue, and new platform revenue 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 press release 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 the adoption and anticipated impact of our strategic plan, advertising and our expectations of advertising trends for fiscal 2022, distribution, merchandise and subscription revenue, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", including the adoption and anticipated impact of our strategic 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, 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 including the potential impact of new competition and industry mergers and acquisitions, 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 revenue; 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; failure to meet covenants under our senior credit facility; epidemics, pandemics or other public health crises, including the current outbreak of COVID-19 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, 2020 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. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompass 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital and streaming assets, animation software, technology and media services. Corus is an internationally-renowned content creator and distributor through Nelvana, a world class animation studio expert in all formats and Corus Studios, a globally recognized producer of hit scripted and unscripted content. The company also owns innovative full-service social digital agency so.da, lifestyle entertainment company Kin Canada, leading 2D animation software supplier Toon Boom and children's book publishing house, Kids Can Press. Corus' roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX, along with broadly distributed Canadian streaming platforms STACKTV, Nick+, the Global TV App and Curiouscast. For more information visit www.corusent.com.
CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited - in thousands of Canadian dollars) |
As at August 31, |
As at August 31, |
2021 |
2020 |
|
ASSETS |
||
Current |
||
Cash and cash equivalents |
43,685 |
45,900 |
Accounts receivable |
325,587 |
297,585 |
Income taxes recoverable |
5,597 |
— |
Prepaid expenses and other assets |
24,106 |
17,112 |
Total current assets |
398,975 |
360,597 |
Tax credits receivable |
24,501 |
26,745 |
Investments and other assets |
98,667 |
59,424 |
Property, plant and equipment |
316,226 |
333,762 |
Program rights |
576,076 |
637,819 |
Film investments |
39,732 |
44,891 |
Intangibles |
1,687,432 |
1,789,018 |
Goodwill |
664,958 |
664,958 |
Deferred income tax assets |
50,050 |
53,668 |
3,856,617 |
3,970,882 |
|
LIABILITIES AND EQUITY |
||
Current |
||
Accounts payable and accrued liabilities |
509,817 |
451,682 |
Current portion of long-term debt |
35,328 |
76,339 |
Provisions |
7,202 |
8,621 |
Income taxes payable |
— |
12,698 |
Total current liabilities |
552,347 |
549,340 |
Long-term debt |
1,313,965 |
1,429,750 |
Other long-term liabilities |
331,482 |
492,956 |
Provisions |
9,497 |
9,494 |
Deferred income tax liabilities |
428,963 |
440,923 |
Total liabilities |
2,636,254 |
2,922,463 |
EQUITY |
||
Share capital |
816,189 |
816,189 |
Contributed surplus |
1,512,431 |
1,511,325 |
Accumulated deficit |
(1,282,897) |
(1,425,432) |
Accumulated other comprehensive income (deficit) |
21,811 |
(2,258) |
Total equity attributable to shareholders |
1,067,534 |
899,824 |
Equity attributable to non-controlling interest |
152,829 |
148,595 |
Total equity |
1,220,363 |
1,048,419 |
3,856,617 |
3,970,882 |
CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
Three months ended |
Year ended |
|||
August 31, |
August 31, |
|||
(unaudited - in thousands of Canadian dollars except per share amounts) |
2021 |
2020 |
2021 |
2020 |
Revenue |
361,255 |
318,396 |
1,543,483 |
1,511,236 |
Direct cost of sales, general and administrative expenses |
258,555 |
223,894 |
1,018,865 |
1,005,397 |
Depreciation and amortization |
37,850 |
38,798 |
152,255 |
158,549 |
Interest expense |
26,665 |
27,201 |
104,078 |
115,185 |
Broadcast licences and goodwill impairment |
— |
— |
— |
786,790 |
Debt refinancing |
— |
— |
1,885 |
— |
Integration, restructuring and other costs |
2,379 |
3,961 |
11,264 |
19,155 |
Other expense (income), net |
3,415 |
(21,713) |
(8,197) |
(8,077) |
Income (loss) before income taxes |
32,391 |
46,255 |
263,333 |
(565,763) |
Income tax expense |
8,538 |
12,465 |
68,760 |
41,944 |
Net income (loss) for the period |
23,853 |
33,790 |
194,573 |
(607,707) |
|
||||
Items that may be reclassified subsequently to income: |
||||
Unrealized change in fair value of cash flow hedges |
2,680 |
2,405 |
12,320 |
(15,466) |
Unrealized foreign currency translation adjustment |
1,190 |
(921) |
(517) |
(87) |
3,870 |
1,484 |
11,803 |
(15,553) |
|
Items that will not be reclassified to income: |
||||
Unrealized change in fair value of financial assets |
(4,202) |
2,001 |
12,266 |
1,108 |
Actuarial gain (loss) on post-retirement benefit plans |
5,459 |
(5,164) |
19,359 |
8,871 |
1,257 |
(3,163) |
31,625 |
9,979 |
|
Other comprehensive income (loss), net of income taxes |
5,127 |
(1,679) |
43,428 |
(5,574) |
Comprehensive income (loss) for the period |
28,980 |
32,111 |
238,001 |
(613,281) |
Net income (loss) attributable to: |
||||
Shareholders |
19,920 |
30,278 |
172,550 |
(625,362) |
Non-controlling interest |
3,933 |
3,512 |
22,023 |
17,655 |
23,853 |
33,790 |
194,573 |
(607,707) |
|
Comprehensive income (loss) attributable to: |
||||
Shareholders |
25,047 |
28,599 |
215,978 |
(630,936) |
Non-controlling interest |
3,933 |
3,512 |
22,023 |
17,655 |
28,980 |
32,111 |
238,001 |
(613,281) |
|
Earnings (loss) per share attributable to shareholders: |
||||
Basic |
$0.10 |
$0.15 |
$0.83 |
($2.98) |
Diluted |
$0.10 |
$0.15 |
$0.83 |
($2.98) |
CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited - in thousands of Canadian dollars) |
Share |
Contributed |
Accumulated |
Accumulated |
Total equity |
Non- |
Total equity |
As at August 31, 2020 |
816,189 |
1,511,325 |
(1,425,432) |
(2,258) |
899,824 |
148,595 |
1,048,419 |
Comprehensive income |
— |
— |
172,550 |
43,428 |
215,978 |
22,023 |
238,001 |
Dividends declared |
— |
— |
(49,991) |
— |
(49,991) |
(17,676) |
(67,667) |
Actuarial gain on post-retirement |
— |
— |
19,359 |
(19,359) |
— |
— |
— |
Share-based compensation expense |
— |
1,106 |
— |
— |
1,106 |
— |
1,106 |
Return of capital to non-controlling |
— |
— |
— |
— |
— |
(1,622) |
(1,622) |
Reallocation of equity interest |
— |
— |
617 |
— |
617 |
(617) |
— |
Equity funding by a non-controlling |
— |
— |
— |
— |
— |
2,126 |
2,126 |
As at August 31, 2021 |
816,189 |
1,512,431 |
(1,282,897) |
21,811 |
1,067,534 |
152,829 |
1,220,363 |
(unaudited - in thousands of Canadian dollars) |
Share |
Contributed |
Accumulated |
Accumulated |
Total equity |
Non- |
Total equity |
As at August 31, 2019 |
830,477 |
1,512,818 |
(758,757) |
12,187 |
1,596,725 |
145,512 |
1,742,237 |
Comprehensive income (loss) |
— |
— |
(625,362) |
(5,574) |
(630,936) |
17,655 |
(613,281) |
Dividends declared |
— |
— |
(50,184) |
— |
(50,184) |
(19,983) |
(70,167) |
Share repurchase under normal |
(14,288) |
(2,605) |
— |
— |
(16,893) |
— |
(16,893) |
Actuarial gain on post-retirement |
— |
— |
8,871 |
(8,871) |
— |
— |
— |
Share-based compensation expense |
— |
1,112 |
— |
— |
1,112 |
— |
1,112 |
Equity funding by a non-controlling |
— |
— |
— |
— |
— |
5,411 |
5,411 |
As at August 31, 2020 |
816,189 |
1,511,325 |
(1,425,432) |
(2,258) |
899,824 |
148,595 |
1,048,419 |
CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended |
Year ended |
|||
August 31, |
August 31, |
|||
(unaudited - in thousands of Canadian dollars) |
2021 |
2020 |
2021 |
2020 |
OPERATING ACTIVITIES |
||||
Net income (loss) for the period |
23,853 |
33,790 |
194,573 |
(607,707) |
Adjustments to reconcile net income (loss) to cash flow from operations: |
||||
Amortization of program rights |
118,437 |
109,590 |
493,598 |
495,814 |
Amortization of film investments |
3,027 |
5,649 |
12,927 |
20,063 |
Depreciation and amortization |
37,850 |
38,798 |
152,255 |
158,549 |
Deferred income tax expense (recovery) |
621 |
3,615 |
(22,035) |
(23,992) |
Broadcast licences and goodwill impairment |
— |
— |
— |
786,790 |
Share-based compensation expense |
276 |
260 |
1,106 |
1,112 |
Imputed interest |
9,535 |
12,569 |
42,288 |
52,371 |
Debt refinancing |
— |
— |
1,885 |
— |
Payment of program rights |
(161,793) |
(142,290) |
(533,837) |
(547,486) |
Net spend on film investments |
3,629 |
2,829 |
(17,690) |
(43,178) |
CRTC benefit payments |
(478) |
(1,403) |
(1,113) |
(2,448) |
Other |
(1,406) |
4,103 |
797 |
(1,658) |
Cash flow from operations |
33,551 |
67,510 |
324,754 |
288,230 |
Net change in non-cash working capital balances related to operations |
16,540 |
26,688 |
(50,261) |
25,042 |
Cash provided by operating activities |
50,091 |
94,198 |
274,493 |
313,272 |
INVESTING ACTIVITIES |
||||
Additions to property, plant and equipment |
(13,370) |
(5,294) |
(19,554) |
(15,385) |
Proceeds from sale of property |
(3) |
26 |
316 |
314 |
Net cash flows for intangibles, investments and other assets |
(7,776) |
(1,727) |
(10,288) |
(3,934) |
Cash used in investing activities |
(21,149) |
(6,995) |
(29,526) |
(19,005) |
FINANCING ACTIVITIES |
||||
Decrease in bank loans |
(48,471) |
(98,854) |
(650,634) |
(229,514) |
Financing fees |
— |
— |
(12,119) |
— |
Issuance of senior unsecured notes |
— |
— |
500,000 |
— |
Share repurchase under NCIB |
— |
— |
— |
(16,893) |
Return of capital to non-controlling interest |
— |
— |
(1,622) |
— |
Equity funding by a non-controlling interest |
1,976 |
— |
4,102 |
5,411 |
Payment of lease liabilities |
(4,109) |
(3,840) |
(16,245) |
(15,945) |
Dividends paid |
(12,498) |
(12,498) |
(49,991) |
(50,399) |
Dividends paid to non-controlling interest |
(6,133) |
(5,315) |
(17,676) |
(19,983) |
Other |
(140) |
(428) |
(2,997) |
(3,612) |
Cash used in financing activities |
(69,375) |
(120,935) |
(247,182) |
(330,935) |
Net change in cash and cash equivalents during the period |
(40,433) |
(33,732) |
(2,215) |
(36,668) |
Cash and cash equivalents, beginning of the period |
84,118 |
79,632 |
45,900 |
82,568 |
Cash and cash equivalents, end of the period |
43,685 |
45,900 |
43,685 |
45,900 |
CORUS ENTERTAINMENT INC.
BUSINESS SEGMENT INFORMATION
(unaudited - in thousands of Canadian dollars) |
|||||
Three months ended August 31, 2021 |
|||||
Television |
Radio |
Corporate |
Consolidated |
||
Revenue |
335,844 |
25,411 |
— |
361,255 |
|
Direct cost of sales, general and administrative expenses |
225,818 |
21,095 |
11,642 |
258,555 |
|
Segment profit (loss)(1) |
110,026 |
4,316 |
(11,642) |
102,700 |
|
Depreciation and amortization |
37,850 |
||||
Interest expense |
26,665 |
||||
Integration, restructuring and other costs |
2,379 |
||||
Other expense, net |
3,415 |
||||
Income before income taxes |
32,391 |
||||
Three months ended August 31, 2020 |
|||||
Television |
Radio |
Corporate |
Consolidated |
||
Revenue |
299,122 |
19,274 |
— |
318,396 |
|
Direct cost of sales, general and administrative expenses |
200,335 |
18,079 |
5,480 |
223,894 |
|
Segment profit (loss)(1) |
98,787 |
1,195 |
(5,480) |
94,502 |
|
Depreciation and amortization |
38,798 |
||||
Interest expense |
27,201 |
||||
Integration, restructuring and other costs |
3,961 |
||||
Other income, net |
(21,713) |
||||
Income before income taxes |
46,255 |
||||
Year ended August 31, 2021 |
|||||
Television |
Radio |
Corporate |
Consolidated |
||
Revenue |
1,446,287 |
97,196 |
— |
1,543,483 |
|
Direct cost of sales, general and administrative expenses |
897,128 |
83,045 |
38,692 |
1,018,865 |
|
Segment profit (loss)(1) |
549,159 |
14,151 |
(38,692) |
524,618 |
|
Depreciation and amortization |
152,255 |
||||
Interest expense |
104,078 |
||||
Debt refinancing |
1,885 |
||||
Integration, restructuring and other costs |
11,264 |
||||
Other income, net |
(8,197) |
||||
Income before income taxes |
263,333 |
||||
Year ended August 31, 2020 |
|||||
Television |
Radio |
Corporate |
Consolidated |
||
Revenue |
1,408,238 |
102,998 |
— |
1,511,236 |
|
Direct cost of sales, general and administrative expenses |
899,523 |
86,975 |
18,899 |
1,005,397 |
|
Segment profit (loss)(1) |
508,715 |
16,023 |
(18,899) |
505,839 |
|
Depreciation and amortization |
158,549 |
||||
Interest expense |
115,185 |
||||
Broadcast licences and goodwill impairment |
786,790 |
||||
Integration, restructuring and other costs |
19,155 |
||||
Other income, net |
(8,077) |
||||
Loss before income taxes |
(565,763) |
||||
(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 Fourth Quarter 2021 Report to Shareholders. |
REVENUE BY TYPE
Three months ended |
Year ended |
|||
August 31, |
August 31, |
|||
(unaudited - in thousands of Canadian dollars) |
2021 |
2020 |
2021 |
2020 |
Advertising |
200,991 |
164,718 |
934,151 |
920,849 |
Subscriber fees |
125,735 |
122,066 |
498,049 |
490,985 |
Merchandising, distribution and other |
34,529 |
31,612 |
111,283 |
99,402 |
361,255 |
318,396 |
1,543,483 |
1,511,236 |
|
NON-IFRS FINANCIAL MEASURES
Three months ended |
Year ended |
|||
(unaudited - in thousands of Canadian dollars, except per share amounts) |
August 31, |
August 31, |
||
Adjusted Net Income Attributable to Shareholders |
2021 |
2020 |
2021 |
2020 |
Net income (loss) attributable to shareholders |
19,920 |
30,278 |
172,550 |
(625,362) |
Adjustments, net of income tax: |
||||
Broadcast licences and goodwill impairment |
— |
— |
— |
769,338 |
Debt refinancing |
— |
— |
1,389 |
— |
Integration, restructuring and other costs |
1,749 |
2,903 |
8,279 |
14,081 |
Adjusted net income attributable to shareholders |
21,669 |
33,181 |
182,218 |
158,057 |
Basic earnings (loss) per share |
$0.10 |
$0.15 |
$0.83 |
($2.98) |
Adjustments, net of income tax: |
||||
Broadcast licences and goodwill impairment |
— |
— |
— |
$3.66 |
Debt refinancing |
— |
— |
$0.01 |
— |
Integration, restructuring and other costs |
— |
$0.01 |
$0.04 |
$0.07 |
Adjusted basic earnings per share |
$0.10 |
$0.16 |
$0.88 |
$0.75 |
Three months ended |
Year ended |
|||
(unaudited - in thousands of Canadian dollars) |
August 31, |
August 31, |
||
Free Cash Flow |
2021 |
2020 |
2021 |
2020 |
Cash provided by (used in): |
||||
Operating activities |
50,091 |
94,198 |
274,493 |
313,272 |
Investing activities |
(21,149) |
(6,995) |
(29,526) |
(19,005) |
Add: cash used in business acquisitions and strategic investments (1) |
28,942 |
87,203 |
244,967 |
294,267 |
6,239 |
150 |
6,980 |
1,980 |
|
Free cash flow |
35,181 |
87,353 |
251,947 |
296,247 |
(1) |
Strategic investments are comprised of investments in venture funds and associated companies. |
Year ended |
||
(unaudited - in thousands of Canadian dollars) |
August 31, |
August 31, |
Net Debt and Net Debt to Segment Profit |
2021 |
2020 |
Total debt, net of unamortized financing fees |
1,349,293 |
1,506,089 |
Lease liabilities |
143,546 |
148,580 |
Cash and cash equivalents |
(43,685) |
(45,900) |
Net debt (numerator) |
1,449,154 |
1,608,769 |
Segment profit (denominator) (1) |
524,618 |
505,839 |
Net debt to segment profit |
2.76 |
3.18 |
(1) |
Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the "Quarterly Consolidated Financial Information" section of the Fourth Quarter 2021 Report to Shareholders. |
SOURCE Corus Entertainment Inc.
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