- Specialty advertising revenues up 7% in the quarter
- Consolidated segment profit margin up 290 basis points in the quarter, with Television and Radio margins of 40% and 30%, respectively, for the fiscal year
- Free cash flow(1) up 15% in fiscal 2012 to $155.1 million
- Adjusted net income attributable to shareholders(1)(3) up 9% in the quarter and 10% for the fiscal year
- Adjusted basic earnings per share(1)(3) up 6% in the quarter and 8% for the fiscal year
- Segment profit up 8% for the quarter and 1% for the fiscal year
(October 25, 2012 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year-end financial results today.
“Corus finished the year with strong gains in specialty advertising revenues and segment profit for the fourth quarter. We are particularly pleased with our excellent segment profit margins and record free cash flow,” said John Cassaday, President and CEO of Corus Entertainment. “Looking ahead, we are confident that disciplined cost controls, coupled with our portfolio of assets, position us well for continued growth in fiscal 2013.”
|Financial Highlights (from continuing operations)|
(unaudited in thousands of Canadian dollars except per share amounts)
|Three months ended||Year ended|
|August 31,||August 31,|
|Segment profit (1)|
|Net income attributable to shareholders||23,341||27,670||148,681||141,511|
|Adjusted net income attributable to shareholders (1) (3)||30,175||27,670||155,515||141,511|
|Basic earnings per share||$ 0.28||$ 0.34||$ 1.79||$ 1.73|
|Adjusted basic earnings per share(1)(3)||$ 0.36||$ 0.34||$ 1.87||$ 1.73|
|Diluted earnings per share||$ 0.28||$ 0.33||$ 1.78||$ 1.72|
|Free Cash Flow(1)||24,962||31,887||155,147||134,861|
(1) See definitions and discussion under Key Performance Indicators in MD&A.
(2) Reflects the disposition of the Quebec Radio operations, which occurred on February 1, 2011, as discontinued operations in all periods presented.
(3) Excludes the impact of a $6.8 million ($0.08 per share) non-cash tax expense related to an increase in the Ontario long-term tax rate which was substantively enacted in the fourth quarter 2012.
Consolidated Results from Continuing Operations
Consolidated revenues for the three months ended August 31, 2012 were $195.6 million, down 2% from $200.2 million last year. Consolidated segment profit for the quarter was $60.9 million, up 8% from $56.5 million last year. Net income attributable to shareholders for the quarter was $23.3 million ($0.28 per share basic and diluted), down 16% compared with $27.7 million ($0.34 per share basic and $0.33 per share diluted) last year. On June 20, 2012, the Ontario government passed legislation cancelling planned future corporate tax rate reductions. Accordingly, the Company remeasured certain deferred tax assets and liabilities resulting in a non-cash tax expense of $6.8 million ($0.08 per share) in the fourth quarter 2012. Excluding the impact of this item, adjusted basic earnings per share was $0.36 in the fourth quarter 2012, up 6% from the prior year.
Consolidated revenues for the year ended August 31, 2012 were $842.3 million, up 2% from $825.2 million last year. Consolidated segment profit for the fiscal year was $290.0 million, up 1% from $285.9 million last year. Net income attributable to shareholders for the fiscal year was $148.7 million ($1.79 per share basic and $1.78 per share diluted), up 5% compared to $141.5 million ($1.73 per share basic and $1.72 per share diluted) last year. Excluding the impact of the income tax rate changes that occurred in the fourth quarter 2012, adjusted basic earnings per share was $1.87 in the current year, up 8% from the prior year. Free cash flow(1) from continuing operations for fiscal 2012 was $155.1 million, up 15% from $134.9 million last year.
Operational Results – Highlights
- Segment revenues decreased 3% in Q4 2012, but increased 3% for the fiscal year
- Segment profit(1) increased 7% in Q4 2012 and was flat for the fiscal year
- Specialty advertising revenues increased 7% in Q4 2012 and were flat for the fiscal year
- Subscriber revenues decreased 1%, both in Q4 2012 and for the fiscal year
- Merchandising, distribution and other revenues decreased 16% in Q4 2012, but increased 21% for the fiscal year
- Movie Central finished the fiscal year with 976,000 subscribers
- Segment revenues were flat in Q4 2012 and decreased 2% for the fiscal year
- Segment profit(1) increased 1% in Q4 2012 and decreased 3% for the fiscal year
(1)See definitions and discussion under Key Performance indicators in MD&A.
(2)Radio results reflect the disposition of the Quebec Radio operations, which occurred on February 1, 2011, as discontinued operations in all periods presented.
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, children’s animation and animation software. The company’s multimedia entertainment brands include YTV, Treehouse, Nickelodeon (Canada), ABC Spark, W Network, OWN: Oprah Winfrey Network (Canada), CosmoTV, Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana, Kids Can Press, Toon Boom 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, 2012 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 25, 2012 at 1:00 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 1.800.926.5230 and for local/international callers is 416.981.9039. PowerPoint slides for the call will be posted 15 minutes prior the start of the call and can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.
Corus’ annual investor day conference is scheduled for November 29, 2012 at 9:00 a.m. ET and will be webcast from the Corus Entertainment website at www.corusent.com in the Investor Relations section.
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.