- Adjusted net income attributable to shareholders of $24.4 million for the second quarter and $76.6 million year-to-date
- Free cash flow up 12% year-to-date
- Consolidated segment profit margins of 30% for the second quarter and 36% year-to-date
- Movie Central finished the quarter above 1 million subscribers
(April 11, 2013 – Toronto, Canada) Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter and six months year-to-date financial results today.
“The second quarter business results were soft, as expected, but we were able to end the first half of the year with significant increases in year-to-date free cash flow and improved margins,” said John Cassaday, President and Chief Executive Officer of Corus Entertainment. “The highlight of the quarter was the successful refinancing of our Senior Unsecured Guaranteed Notes, which resulted in a 300 basis point reduction in our financing costs. This activity was followed up by a series of significant transactions subsequent to the quarter, certain of which are subject to CRTC approval, which will enable us to expand our presence in Radio, consolidate our position in TELETOON and ABC Spark, enter the Quebec specialty television market and realize substantial gains on the sale of our minority interest in the Food Network (Canada) and on the revaluation of TELETOON.”
|Three months ended||Six months ended|
|February 28,||February 29,||February 28,||February 29,|
(unaudited – in thousands of Canadian dollars
|Segment profit (1)|
|Net income attributable to shareholders||5,944||31,571||58,103||82,119|
|Adjusted net income attributable to shareholders (1) (2)||24,432||31,571||76,591||82,119|
|Basic earnings per share||$ 0.07||$ 0.38||$ 0.70||$ 0.99|
|Adjusted basic earnings per share (1) (2)||$ 0.29||$ 0.38||$ 0.92||$ 0.99|
|Diluted earnings per share||$ 0.07||$ 0.38||$ 0.69||$ 0.99|
|Free cash flow (1)||45,974||50,772||83,859||74,831|
(1) See definitions and discussion under Key Performance Indicators in MD&A
(2) Excludes the impact of debt refinancing costs of $25.0 million ($0.22 per share)
Consolidated Results from Continuing Operations
Consolidated revenues for the three months ended February 28, 2013 were $183.7 million, down 11% from $205.7 million last year. Consolidated segment profit was $54.6 million, down 12% from $62.2 million last year. Net income attributable to shareholders for the quarter was $5.9 million ($0.07 basic and diluted per share), compared to $31.6 million ($0.38 basic and diluted per share) last year. Net income for the current quarter includes a pre-tax charge for debt refinancing of $25.0 million. Removing the impact of this item results in adjusted net income attributable to shareholders of $24.4 million ($0.29 per share) in the current quarter.
Consolidated revenues for the six months ended February 28, 2013 were $409.8 million, down 7% from $442.6 million last year. Consolidated segment profit was $147.3 million, down 4% from $153.5 million last year. Net income attributable to shareholders for the six months was $58.1 million ($0.70 basic and $0.69 diluted per share), compared to $82.1 million ($0.99 basic and diluted per share) last year. Removing the impact of the debt refinancing costs results in adjusted net income attributable to shareholders of $76.6 million ($0.92 per share) in the current year.
Operational Results – Highlights
- Movie Central finished the quarter with 1,013,000 subscribers, up 37,000 year-to-date
- Segment profit margin of 41% year-to-date
- Segment revenues decreased 12% in Q2 2013 and 9% year-to-date
- Segment profit(1) decreased 14% in Q2 2013 and 7% year-to-date
- Segment profit margin of 31% year-to-date
- Segment revenues decreased 5% in Q2 2013 and 2% year-to-date
- Segment profit(1) decreased 2% in Q2 2013, but increased 9% year-to-date
- Issued $550.0 million of 4.25% Senior Unsecured Guaranteed Notes due in 2020
- Agreements completed, subsequent to the quarter, to extend Radio presence into Ottawa, consolidate ownership of TELETOON and ABC Spark, acquire 100% of Historia and Séries+, and divest Corus’ minority interest in the Food Network (Canada)
(1) See definitions and discussion under Key Performance Indicators in MD&A.
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), Cosmopolitan TV, Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana, Kids Can Press, Toon Boom and 37 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 and six months ended February 28, 2013 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 April 11, 2013 at 2:00 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 1.800.732.6870 and for local/international callers is 416.981.9030. PowerPoint slides for the call will be posted 15 minutes prior to the start of the call and can be found on 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.