- Net income from continuing operations of $141.3 million ($1.73 per share basic) for the fiscal year, up 18% from $119.7 million ($1.48 per share basic) last year
- Free cash flow from continuing operations of $133.3 million
- Consolidated revenues up 7% in the fourth quarter and 8% for the fiscal year
- Segment profit up 14% for the quarter and 12% for the fiscal year
- Television segment profit up 14% for the fiscal year
- Radio achieves segment profit margin of 30% for the fiscal year
(October 26, 2011 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year-end financial results today.
“Corus had an excellent year highlighted by double digit segment profit growth and a 45% dividend increase,” said John Cassaday, President and CEO of Corus Entertainment. “Corus achieved its segment profit guidance and exceeded free cash flow guidance as a result of tight cost controls in Radio coupled with exceptional revenue and segment profit growth in Television. Our annual segment profit guidance included the Quebec Radio business for a full year, so if not for the divestiture of Quebec, we would have been at the high end of our guidance range or exceeded it.”
|Three months ended||Year ended|
(unaudited in thousands of Canadian dollars except per share amounts)
|August 31,||August 31,|
|Net income from continuing operations||29,210||4,164||141,274||119,662|
|Basic earnings per share|
|From continuing operations||$ 0.35||$ 0.05||$ 1.73||$ 1.48|
|From discontinued operations||$ —||$ 0.03||$ 0.06||$ 0.09|
|$ 0.35||$ 0.08||$ 1.79||$ 1.57|
Consolidated Results from Continuing Operations
Consolidated revenues for three months ended August 31, 2011 were $200.2 million, up 7% from
$187.4 million last year. Consolidated segment profit was $58.5 million, up 14% from $51.5 million last year. Net income for the quarter was $29.2 million ($0.35 basic and diluted), compared to $4.2 million ($0.05 basic and diluted) last year.
Consolidated revenues for fiscal year ended August 31, 2011 were $825.2 million, up 8% from
$767.5 million last year. Consolidated segment profit was $285.4 million, up 12% from $256.0 million last year. Net income for the fiscal year was $141.3 million ($1.73 basic and $1.72 diluted), compared to a net income of $119.7 million ($1.48 basic and $1.47 diluted) last year. Net income for the prior year includes a debt refinancing cost of $14.3 million, a $14.0 million reversal of a disputed regulatory fee accrual and a $14.3 million recovery due to income tax rate changes. Removing the impact of these items results in adjusted basic earnings per share of $1.31 in the prior year. Free cash flow from continuing operations for fiscal 2011 was $133.3 million, exceeding our guidance of $100.0 million.
Operational Results – highlights
- Segment revenues increased 9% both in the fourth quarter and for the fiscal year
- Segment profit increased 13% in the fourth quarter and 14% for the fiscal year
- Specialty advertising revenues decreased 6% in the fourth quarter, but increased 11% for the fiscal year
- Subscriber revenues increased 3% in the fourth quarter and 6% for the fiscal year
- Movie Central finished the fiscal year with 984,000 subscribers, up 2% from the prior year
- Segment revenues for the fourth quarter remained consistent with the prior year, but increased 2% for the fiscal year
- Segment profit increased 13% in the fourth quarter and 3% for the fiscal year
- Achieved segment profit margin target of 30% for the fiscal year
Corus Entertainment Inc. reports in Canadian dollars.
About Corus Entertainment Inc.
Corus Entertainment Inc. is a Canadian-based media and entertainment company. Corus is a market leader in specialty television and radio with additional assets in pay television, television broadcasting, children’s book publishing and animation. The Company’s multimedia entertainment brands include YTV, Treehouse, Nickelodeon (Canada), W Network, OWN: Oprah Winfrey Network (Canada), CosmoTV, Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana, Kids Can Press and radio stations including CKNW AM 980, 99.3 The FOX, Country 105, 630 CHED, Q107, and 102.1 the Edge. Corus creates engaging branded entertainment experiences for its audiences across multiple platforms. A publicly traded company, Corus is listed on the Toronto Stock Exchange (CJR.B). Experience Corus on the web at www.corusent.com.
The unaudited consolidated financial statements and accompanying notes for the three months and year ended August 31, 2011 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 26, 2011 at 3:00 p.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 North America is 1.800.945.5981 and for local/international callers is 416.981.9021. PowerPoint slides for the call will be posted at 2:45 p.m. ET on October 26, 2011 and can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
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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 statements”). These forward-looking statements related 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 the 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 are forward-looking statements. Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, including without limitation factors and assumptions regarding advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees and actual results may differ materially from those expressed or implied in such statements. 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 such forward-looking statements may be found in our Annual Information Form. Corus cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, we disclaim any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.
For further information, please contact:
President and Chief Executive Officer
Corus Entertainment Inc.
Executive Vice President and Chief Financial Officer
Corus Entertainment Inc.
Corus Entertainment Inc.