- Consolidated revenue decreased 13% for the quarter and 14% for
the year-to-date
- Consolidated segment profit(1) decreased 11% for the
quarter and 9% for the year-to-date
- Consolidated segment profit margin(1) of 18% for the
quarter and 26% for the year-to-date
- Net loss attributable to shareholders of $9.8 million ($0.05
loss per share basic) for the quarter and net income attributable
to shareholders of $22.9 million
($0.12 per share basic) for the
year-to-date
- Proforma net debt to segment profit(1) of 3.62 times
at February 29, 2024, which excludes
contributions to segment profit from a prior year business
divestiture, was consistent with the proforma net debt to segment
profit as at August 31, 2023
- Free cash flow(1) of $32.9
million for the quarter and $56.6
million for the year-to-date
TORONTO, April 12,
2024 /PRNewswire/ -
Corus Entertainment Inc. (TSX: CJR.B) announced
its second quarter financial results today.
"We delivered a strong quarter of free cash flow generation that
was directed towards reduction of our term loan facility as we
maintained focus on streamlining our operating model," said
Doug Murphy, President and Chief
Executive Officer. "Television advertising revenue for the second
quarter was in line with our expectations. Importantly, premium
scripted content returned to our networks and platforms in February
with promising early audience results. That said, visibility in the
advertising market remains limited despite the normalization of our
program supply. Demand creation is our priority to monetize
these audiences while we concurrently deploy a disciplined
focus on expense reduction to improve operational efficiency."
Financial Highlights
|
Three months
ended
|
|
Six months
ended
|
|
|
February 29,
|
February
28,
|
%
|
February 29,
|
February
28,
|
%
|
|
(in thousands of Canadian dollars
except per share amounts)
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
Revenue
|
|
|
|
|
|
|
|
Television
|
278,059
|
321,548
|
(14 %)
|
620,492
|
723,077
|
(14 %)
|
|
Radio
|
21,478
|
22,323
|
(4 %)
|
48,949
|
51,985
|
(6 %)
|
|
299,537
|
343,871
|
(13 %)
|
669,441
|
775,062
|
(14 %)
|
|
|
|
|
|
|
Segment profit (loss) (1)
|
|
|
|
|
|
|
|
Television
|
58,903
|
63,019
|
(7 %)
|
180,661
|
194,778
|
(7 %)
|
|
Radio
|
857
|
350
|
145 %
|
5,402
|
6,372
|
(15 %)
|
|
Corporate
|
(7,015)
|
(4,234)
|
(66 %)
|
(12,469)
|
(10,323)
|
(21 %)
|
|
52,745
|
59,135
|
(11 %)
|
173,594
|
190,827
|
(9 %)
|
|
|
|
|
|
|
Segment profit margin (1)
|
|
|
|
|
|
|
|
Television
|
21 %
|
20 %
|
|
29 %
|
27 %
|
|
|
Radio
|
4 %
|
2 %
|
|
11 %
|
12 %
|
|
|
Consolidated
|
18 %
|
17 %
|
|
26 %
|
25 %
|
|
|
|
|
|
|
|
Net income
(loss) attributable to shareholders
|
(9,780)
|
(15,450)
|
37 %
|
22,931
|
15,937
|
44 %
|
|
Adjusted net income
(loss) attributable to shareholders (1)
|
(5,944)
|
(13,880)
|
57 %
|
35,303
|
19,586
|
80 %
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
($0.05)
|
($0.08)
|
|
$0.12
|
$0.08
|
|
|
Adjusted basic earnings (loss) per share
(1)
|
($0.03)
|
($0.07)
|
|
$0.18
|
$0.10
|
|
|
Diluted earnings (loss)
per share
|
($0.05)
|
($0.08)
|
|
$0.12
|
$0.08
|
|
|
|
|
|
|
|
Free cash flow (1)
|
32,862
|
28,397
|
16 %
|
56,570
|
49,207
|
15 %
|
|
(1)
|
In addition to
disclosing results in accordance with International Financial
Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board ("IASB"), the Company also provides
supplementary non-IFRS measures as a method of evaluating the
Company's performance and to provide a
better understanding of how management views the Company's performance. These non-IFRS
or non-Generally Accepted
Accounting Principles ("GAAP") measures can
include: segment profit (loss), segment profit margin, free
cash flow, adjusted net income (loss) attributable to shareholders,
adjusted basic earnings (loss)
per share, net debt to segment profit,
proforma net debt to segment
profit and new platform revenue.
These are not measurements in accordance with IFRS and should
not be considered as an alternative to any other measure of
performance under IFRS. Please see additional discussion and
reconciliations under the Key Performance Indicators and Non-GAAP
Financial Measures section of the Company's Second Quarter 2024
Report to Shareholders.
|
Segment Revenue
|
Three months ended
|
|
Six months
ended
|
|
|
February 29,
|
February 28,
|
%
|
February 29,
|
February 28,
|
%
|
|
(in thousands of
Canadian dollars)
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
Revenue
|
278,059
|
|
|
620,492
|
|
|
|
Television
|
321,548
|
(14 %)
|
723,077
|
(14 %)
|
|
Advertising
|
148,979
|
169,124
|
(12 %)
|
358,275
|
421,637
|
(15 %)
|
|
Subscriber
|
117,285
|
124,051
|
(5 %)
|
235,535
|
251,566
|
(6 %)
|
|
Distribution, production and other
|
11,795
|
28,373
|
(58 %)
|
26,682
|
49,874
|
(47 %)
|
|
Radio
|
21,478
|
22,323
|
(4 %)
|
48,949
|
51,985
|
(6 %)
|
|
Total Revenue
|
299,537
|
343,871
|
(13 %)
|
669,441
|
775,062
|
(14 %)
|
|
|
|
|
|
|
New platform revenue percentage (1)
|
12 %
|
12 %
|
—
|
12 %
|
11 %
|
(4 %)
|
|
(1)
|
New platform revenue
does not have a standardized meaning prescribed by IFRS. For
definition and explanation, see the discussion under the Key
Performance Indicators and Non-GAAP Financial Measures section of
the Second Quarter 2024 Report to Shareholders.
|
Operational Highlights
Corus advanced its strategic priorities on multiple fronts. The
Company launched its Winter/Spring 2024 schedule for Global TV on
traditional and streaming platforms, continued to implement cost
savings initiatives and made bank debt repayments. The Company
continues to navigate an uncertain macroeconomic
environment.
- Global launches its Winter/Spring 2024 Programming.
Global Television's core prime-time audiences
increased(1) following the return of blockbuster
franchises NCIS and FBI, hit dramas CSI: Vegas
and 9-1-1, acclaimed comedies Abbott Elementary and
Ghosts, season 46 of Survivor, fan favourite Big
Brother Canada and the introduction of new drama
Elsbeth.
- HGTV Canada and MEM announced the greenlight of Renovation
Resort. HGTV Canada's Scott
McGillivray and Brian
Baeumler return as co-hosts and judges in Season 2 of
Renovation Resort, distributed by Corus Studios. The series
successfully debuted as the #1 Canadian original series on
Specialty television in Spring 2023(2).
|
(1)
|
Source: Numeris PPM Data, Total Canada,
Spring'24 (Feb 12/24 - Mar 17/24) vs Spring '24 Prior Weeks (Jan 1/24 - Feb 11/24) - confirmed to 3/1/24, A25-54,
AMA(000), core primetime: Mo-Su 8-11pm, Local
time
|
|
(2)
|
Source: Numeris PPM Data,
SP'23 (Jan 2/23 – May 28/23) – confirmed data,
Total Canada, 3+ airings, CDN SPEC COM ENG excluding sports, based on AMA(000), A25-54
|
Financial Highlights
- Free cash flow(1) of $32.9
million in Q2 and $56.6
million year-to-date compared to $28.4 million and $49.2
million year-to-date, respectively, in the same comparable
prior year periods. The increase in free cash flow(1)
for the second quarter and the year-to-date is mainly attributable
to higher cash provided by operating activities.
- Net debt to segment profit(1) was 3.55 times as at
February 29, 2024. Proforma net debt
to segment profit(2) was 3.62 times at
- February 29, 2024, unchanged from
August 31, 2023 and down from 3.67
times at November 30, 2023.
- In the second quarter of fiscal 2024, Corus paid down
$21.5 million of debt and
$31.5 million year-to-date.
- As of February 29, 2024, the
Company had $61.5 million of cash and
cash equivalents and $236.4 million
available to be drawn under its $300.0
million Revolving Facility.
|
(1)
|
Free
cash flow, segment
profit, net debt to segment
profit and proforma
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 and Non-GAAP Financial Measures
section of the Second Quarter 2024 Report to Shareholders and/or Management's Discussion and Analysis in
the Company's Annual Report for the year ended August 31, 2023
("2023 MD&A").
|
|
(2)
|
Proforma net debt to segment profit
ratio excludes contributions to segment profit from Toon Boom Animation
Inc., which was sold in August 2023, for the most
recent four quarters.
|
Corus Entertainment Inc. reports its financial results
in Canadian dollars.
The unaudited interim condensed consolidated financial
statements and accompanying notes for the three and six months
ended February 29, 2024 and
Management's Discussion and Analysis are available on the Company's
website at www.corusent.com in the Investor
Relations section and under the Company's SEDAR+ profile at
www.sedarplus.ca.
A conference call with Corus senior management is scheduled for April 12, 2024 at 8:00 a.m.
ET. While this call is directed at analysts and investors, members
of the media are welcome to listen in. To instantly join the
conference call by phone, please use the following URL to easily
register and be connected to the conference call automatically:
https://emportal.ink/3VfgNm0. You can also dial direct to be
entered into the call by an Operator. The dial-in number for the
conference call for local and international callers is
1.416.764.8650 and for North
America is 1.888.664.6383. This call will be archived and
available for replay in the Investor Relations section of the Corus
website beginning April 12, 2024, at
11 a.m.ET or accessible by telephone
until April 19, 2024, at
1.888.390.0541 (toll-free North
America) or 416.764.8677 (local or international), using
replay code 674162#. More information can be found on
the Corus Entertainment website at www.corusent.com in the
Investor Relations section.
Outlook
In the third quarter, delivery of new episodes of scripted
programming are expected to resume closer to normal levels
following the settlement of the labour actions by the U.S.
writers and actors guilds. However, lingering impacts from the
lengthy disruption of advertising markets due to the strikes,
as well as continuing macroeconomic uncertainty and the competitive
environment, are expected to lower demand for linear advertising.
As such, the Company expects year-over-year declines in Television
advertising revenue in the third quarter of fiscal 2024 in the
range of 10% to 15%. Amortization of TV program rights is expected
to decline in the quarter by a similar range on a year-over-year
basis and the Company will continue with its implementation of
additional cost reduction initiatives. While the Company continues
to expect improvement in the
macroeconomic environment in the medium term, visibility
remains limited at this time.
Use of Non-GAAP Financial
Measures
This press release includes the non-GAAP or non-IFRS financial
measures of segment profit (loss), segment profit margin, free cash
flow, adjusted net income attributable to shareholders, adjusted
basic earnings per share, net debt to segment profit, proforma
net debt to segment profit, as well as supplementary financial
measures not presented in the financial statements such as new
platform revenue. Non-GAAP or non-IFRS measures that are not in
accordance with, nor an alternate to, generally accepted accounting
principles ("GAAP") and may be different from non-GAAP or non-IFRS
measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles.
Non-GAAP 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-GAAP financial measures are meant to supplement,
and to be viewed in conjunction with, IFRS financial results. A
reconciliation of the Company's non-GAAP measures is included in
the Company's most recent Report to Shareholders for the three and
six months ended February 29, 2024,
which is available on Corus' website at www.corusent.com as well as
on SEDAR+ at www.sedarplus.ca.
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"). This forward-looking information
relates to, among other things, the Company's objectives, goals,
strategies, targets, intentions, plans, estimates and outlook,
including the adoption and anticipated impact of the Company's
strategic plan, advertising and expectations of advertising trends
for fiscal 2024, subscriber revenue and anticipated subscription
trends, distribution, production and other revenue, the Company's
dividend policy and the payment of future dividends; the Company's
leverage target; the Company's ability to manage retention and
reputation risks related to its on-air talent; expectations
regarding financial performance, including capital allocation
strategy and capital structure management, operating costs and
tariffs, taxes and fees, and can generally be identified by the use
of words such as "believe", "anticipate", "expect", "intend",
"plan", "will", "may" or the negatives of these terms 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 impact of recessionary conditions and
continuing supply chain constraints; the potential impact of new
competition and industry mergers and acquisitions; changes to
applicable tax, licensing and regulatory regimes; inflation and
interest rates, stability of the advertising, subscription,
production and distribution markets; changes to key suppliers or
clients; operating and capital costs and tariffs, taxes and fees,
the Company's ability to source, produce or sell desirable content
and the Company's capital and operating results being consistent
with its 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: the
Company's ability to attract, retain and manage fluctuations in
advertising revenue; the Company's ability to maintain
relationships with key suppliers and clients and on anticipated
financial terms and conditions; audience acceptance of the
Company's television programs and cable networks; the Company's
ability to manage retention and reputation risks related to its
on-air talent; the Company's ability to recoup production costs;
the availability of tax credits; the availability of expected news,
production and related credits, programs and funding; the existence
of co-production treaties; the Company's ability to compete in any
of the industries in which it does business including with
competitors which may not be regulated in the same way or to the
same degree; the business and strategic opportunities (or lack
thereof) that may be presented to and pursued by the Company;
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 including statements, decisions or positions by
applicable regulators including, without limitation, the Canadian
Radio-television and Telecommunications Commission ("CRTC"),
Canadian Heritage and Innovation, Science and Economic Development
Canada ("ISED"); changes to licensing status or conditions;
unanticipated or un-mitigatable programming costs; the Company's
ability to integrate and realize anticipated benefits from its
acquisitions and to effectively manage its growth; the Company's
ability to successfully defend itself against litigation matters
and complaints; failure to meet covenants under the Company's
senior credit facility, senior unsecured notes or other instruments
or facilities; epidemics, pandemics or other public health and
safety crises in Canada and
globally; physical and operational changes to the Company's key
facilities and infrastructure; cybersecurity threats or incidents
to the Company or its key suppliers and vendors; 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
Company's Management's Discussion and Analysis for the year ended
August 31, 2023 and under the heading
"Risk Factors" in the Company's Annual Information Form for the
year ended August 31, 2023. Corus
cautions that the foregoing list of important assumptions and
factors that may affect future results is not exhaustive. When
relying on the Company's 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 and may be updated or amended from time to time.
Except as 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, digital and
streaming platforms, and 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 full-service social
digital agency so.da, lifestyle entertainment company Kin Canada,
and children's book publishing house, Kids Can Press. Corus' roster
of premium brands includes Global Television, W Network, HGTV
Canada, Food Network Canada, Magnolia Network Canada, The HISTORY®
Channel, Showcase, Adult Swim, National Geographic, Disney Channel
Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and
CFOX, along with streaming platforms STACKTV, TELETOON+, the Global
TV App and Curiouscast. Corus is the domestic advertising
representative and an original content partner for Pluto TV, a
Paramount Company, which is the leading free ad-supported streaming
television (FAST) service. For more information
visit www.corusent.com.
|
CORUS ENTERTAINMENT INC.
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
(unaudited - in
thousands of Canadian dollars)
|
As at February 29,
|
As at August
31,
|
|
2024
|
2023
|
|
ASSETS
|
|
|
|
Current
|
|
|
|
Cash and cash
equivalents
|
61,505
|
56,163
|
|
Accounts
receivable
|
282,617
|
295,175
|
|
Income taxes recoverable
|
12,531
|
21,597
|
|
Prepaid expenses and
other assets
|
22,457
|
21,285
|
|
Total
current assets
|
379,110
|
394,220
|
|
Tax credits receivable
|
35,237
|
44,270
|
|
Investments and other assets
|
58,829
|
74,415
|
|
Property, plant and equipment, net
|
257,918
|
268,214
|
|
Program
rights
|
646,407
|
668,976
|
|
Film
investments
|
60,295
|
53,085
|
|
Intangible assets, net
|
1,169,734
|
1,198,229
|
|
Deferred income tax assets
|
45,958
|
44,653
|
|
Total assets
|
2,653,488
|
2,746,062
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
|
|
|
|
Accounts payable and accrued liabilities
|
556,105
|
565,052
|
|
Current portion of long-term debt
|
17,551
|
13,434
|
|
Provisions
|
13,489
|
9,811
|
|
Total current
liabilities
|
587,145
|
588,297
|
|
Long-term
debt
|
1,045,305
|
1,078,950
|
|
Other long-term liabilities
|
257,627
|
316,912
|
|
Provisions
|
8,881
|
9,041
|
|
Deferred income tax liabilities
|
289,155
|
293,862
|
|
Total
liabilities
|
2,188,113
|
2,287,062
|
|
EQUITY
|
|
|
|
Share capital
|
281,052
|
281,052
|
|
Contributed
surplus
|
2,013,347
|
2,012,936
|
|
Accumulated
deficit
|
(1,992,899)
|
(2,014,077)
|
|
Accumulated
other comprehensive income
|
28,771
|
37,841
|
|
Total
equity attributable to shareholders
|
330,271
|
317,752
|
|
Equity attributable to non-controlling interests
|
135,104
|
141,248
|
|
Total
equity
|
465,375
|
459,000
|
|
2,653,488
|
2,746,062
|
|
CORUS ENTERTAINMENT INC.
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
|
|
Three months ended
|
Six months
ended
|
|
February 29,
|
February 28,
|
February 29,
|
February 28,
|
|
(unaudited - in thousands of Canadian dollars except per share
amounts)
|
2024
|
2023
|
2024
|
2023
|
|
Revenue
|
299,537
|
343,871
|
669,441
|
775,062
|
|
Direct cost of sales, general
and administrative expenses
|
246,792
|
284,736
|
495,847
|
584,235
|
|
Depreciation and amortization
|
29,850
|
40,282
|
60,168
|
80,416
|
|
Interest
expense
|
28,073
|
34,751
|
57,161
|
69,123
|
|
Debt
refinancing
|
—
|
—
|
753
|
—
|
|
Restructuring and other costs
|
5,267
|
2,137
|
16,068
|
4,966
|
|
Other expense (income), net
|
253
|
1,375
|
(317)
|
8,421
|
|
Income (loss)
before income taxes
|
(10,698)
|
(19,410)
|
39,761
|
27,901
|
|
Income tax expense (recovery)
|
(3,002)
|
(4,491)
|
10,439
|
8,222
|
|
Net income (loss)
for the period
|
(7,696)
|
(14,919)
|
29,322
|
19,679
|
|
Other comprehensive income (loss), net of income
taxes
|
|
|
|
|
|
Items that may be reclassified subsequently to income
(loss):
|
|
|
|
|
|
Unrealized change in fair value
of cash flow hedges
|
(4)
|
2,336
|
(2,844)
|
1,294
|
|
Unrealized foreign currency translation adjustment
|
53
|
423
|
232
|
1,309
|
|
49
|
2,759
|
(2,612)
|
2,603
|
|
Items that will
not be reclassified to income (loss):
|
|
|
|
|
|
Unrealized change in fair value
of financial assets
|
(4,815)
|
(365)
|
(6,458)
|
(688)
|
|
Actuarial gain (loss)
on post-retirement benefit plans
|
(1,096)
|
1,489
|
(2,430)
|
547
|
|
(5,911)
|
1,124
|
(8,888)
|
(141)
|
|
Other comprehensive income (loss), net of income
taxes
|
(5,862)
|
3,883
|
(11,500)
|
2,462
|
|
Comprehensive income (loss)
for the period
|
(13,558)
|
(11,036)
|
17,822
|
22,141
|
|
|
|
|
|
|
Net income (loss)
attributable to:
|
|
|
|
|
|
Shareholders
|
(9,780)
|
(15,450)
|
22,931
|
15,937
|
|
Non-controlling
interests
|
2,084
|
531
|
6,391
|
3,742
|
|
(7,696)
|
(14,919)
|
29,322
|
19,679
|
|
|
|
|
|
|
Comprehensive income (loss)
attributable to:
|
|
|
|
|
|
Shareholders
|
(15,642)
|
(11,567)
|
11,431
|
18,399
|
|
Non-controlling
interests
|
2,084
|
531
|
6,391
|
3,742
|
|
(13,558)
|
(11,036)
|
17,822
|
22,141
|
|
|
|
|
|
|
Earnings (loss) per share attributable to shareholders:
|
|
|
|
|
|
Basic
|
($0.05)
|
($0.08)
|
$0.12
|
$0.08
|
|
Diluted
|
($0.05)
|
($0.08)
|
$0.12
|
$0.08
|
|
CORUS ENTERTAINMENT INC.
|
|
|
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
|
(unaudited - in
thousands of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Accumulated
deficit
|
Accumulated
other
comprehensive
income
|
Total
equity
attributable to
shareholders
|
Non-
controlling
interests
|
Total
equity
|
|
As at August 31,
2023
|
281,052
|
2,012,936
|
(2,014,077)
|
37,841
|
317,752
|
141,248
|
459,000
|
|
Comprehensive
income (loss)
|
—
|
—
|
22,931
|
(11,500)
|
11,431
|
6,391
|
17,822
|
|
Dividends
declared
|
—
|
—
|
—
|
—
|
—
|
(7,670)
|
(7,670)
|
|
Change in fair value
of put option liability
|
—
|
—
|
677
|
—
|
677
|
(4,865)
|
(4,188)
|
|
Actuarial loss on
post-retirement benefit plans
|
—
|
—
|
(2,430)
|
2,430
|
—
|
—
|
—
|
|
Share-based compensation expense
|
—
|
411
|
—
|
—
|
411
|
—
|
411
|
|
As at February 29, 2024
|
281,052
|
2,013,347
|
(1,992,899)
|
28,771
|
330,271
|
135,104
|
465,375
|
|
(unaudited - in
thousands of Canadian dollars)
|
Share
capital
|
Contributed
surplus
|
Accumulated
deficit
|
Accumulated
other
comprehensive
income
|
Total
equity
attributable
to
shareholders
|
Non-
controlling
interests
|
Total
equity
|
|
As at August 31,
2022
|
781,918
|
1,511,481
|
(1,574,358)
|
33,000
|
752,041
|
151,940
|
903,981
|
|
Comprehensive
income
|
—
|
—
|
15,937
|
2,462
|
18,399
|
3,742
|
22,141
|
|
Dividends
declared
|
—
|
—
|
(11,505)
|
—
|
(11,505)
|
(10,073)
|
(21,578)
|
|
Reduction of stated capital
|
(500,000)
|
500,000
|
—
|
—
|
—
|
—
|
—
|
|
Change in fair value
of put option liability
|
—
|
—
|
(597)
|
—
|
(597)
|
164
|
(433)
|
|
Shares repurchased under normal course
issuer bid ("NCIB")
|
(3,089)
|
1,119
|
—
|
—
|
(1,970)
|
—
|
(1,970)
|
|
Reversal
of automatic share purchase commitment
|
2,223
|
(504)
|
—
|
—
|
1,719
|
—
|
1,719
|
|
Actuarial gain on
post-retirement benefit plans
|
—
|
—
|
547
|
(547)
|
—
|
—
|
—
|
|
Share-based compensation expense
|
—
|
368
|
—
|
—
|
368
|
—
|
368
|
|
Equity funding by a non-controlling interest
|
—
|
—
|
—
|
—
|
—
|
3,855
|
3,855
|
|
As at February 28, 2023
|
281,052
|
2,012,464
|
(1,569,976)
|
34,915
|
758,455
|
149,628
|
908,083
|
|
CORUS ENTERTAINMENT INC.
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
|
February
28,
|
February 29,
|
February
28,
|
|
(unaudited - in thousands of Canadian
dollars)
|
2024
|
2023
|
2024
|
2023
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income (loss)
for the period
|
(7,696)
|
(14,919)
|
29,322
|
19,679
|
|
Adjustments to reconcile net income (loss)
to cash flow from operations:
|
|
|
|
|
|
Amortization of program rights
|
119,857
|
143,551
|
239,368
|
295,940
|
|
Amortization of film investments
|
3,188
|
6,234
|
7,321
|
10,509
|
|
Depreciation and amortization
|
29,850
|
40,282
|
60,168
|
80,416
|
|
Deferred income tax recovery
|
(238)
|
(3,575)
|
(3,123)
|
(8,559)
|
|
Share-based compensation expense
|
164
|
102
|
411
|
368
|
|
Imputed interest
|
11,189
|
15,179
|
23,421
|
31,356
|
|
Debt
refinancing
|
—
|
—
|
753
|
—
|
|
Payment of program rights
|
(135,988)
|
(173,932)
|
(266,182)
|
(333,047)
|
|
Net spend on film
investments
|
(7,027)
|
(14,691)
|
(10,143)
|
(36,275)
|
|
Other
|
53
|
(491)
|
(782)
|
141
|
|
Cash flow
from operations
|
13,352
|
(2,260)
|
80,534
|
60,528
|
|
Net change in non-cash working capital balances related to operations
|
24,775
|
33,192
|
(18,649)
|
(5,005)
|
|
Cash provided by operating activities
|
38,127
|
30,932
|
61,885
|
55,523
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to property, plant and equipment
|
(6,477)
|
(2,426)
|
(7,603)
|
(5,373)
|
|
Proceeds from sale
of property
|
931
|
247
|
2,224
|
340
|
|
Net cash flows
for intangibles, investments and other assets
|
281
|
(427)
|
(282)
|
(1,354)
|
|
Cash used in investing activities
|
(5,265)
|
(2,606)
|
(5,661)
|
(6,387)
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
Decrease in bank loans
|
(21,473)
|
(33,127)
|
(31,486)
|
(2,070)
|
|
Financing
fees
|
—
|
(998)
|
(619)
|
(998)
|
|
Share repurchase under NCIB
|
—
|
—
|
—
|
(2,045)
|
|
Equity funding by a non-controlling interest
|
—
|
3,855
|
—
|
3,855
|
|
Payment of lease liabilities
|
(4,514)
|
(4,438)
|
(8,951)
|
(8,813)
|
|
Dividends
paid
|
—
|
(11,962)
|
—
|
(23,965)
|
|
Dividends paid to non-controlling interests
|
(3,705)
|
(3,710)
|
(7,670)
|
(10,073)
|
|
Other
|
(999)
|
(1,006)
|
(2,156)
|
(2,087)
|
|
Cash used in financing activities
|
(30,691)
|
(51,386)
|
(50,882)
|
(46,196)
|
|
Net change
in cash and cash equivalents during the
period
|
2,171
|
(23,060)
|
5,342
|
2,940
|
|
Cash and cash
equivalents, beginning of the period
|
59,334
|
80,912
|
56,163
|
54,912
|
|
Cash and cash
equivalents, end of the period
|
61,505
|
57,852
|
61,505
|
57,852
|
|
CORUS ENTERTAINMENT INC.
|
|
|
|
|
|
BUSINESS SEGMENT INFORMATION
|
|
|
|
|
|
(unaudited - in
thousands of Canadian dollars)
|
|
|
|
|
|
Three months ended
February 29, 2024
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
|
Revenue
|
278,059
|
21,478
|
—
|
299,537
|
|
Direct cost of sales, general
and administrative expenses
|
219,156
|
20,621
|
7,015
|
246,792
|
|
Segment profit (loss)(1)
|
58,903
|
857
|
(7,015)
|
52,745
|
|
Depreciation and amortization
|
|
|
|
29,850
|
|
Interest
expense
|
|
|
|
28,073
|
|
Restructuring and other costs
|
|
|
|
5,267
|
|
Other expense, net
|
|
|
|
253
|
|
Loss before income taxes
|
|
|
|
(10,698)
|
|
Three months
ended February 28, 2023
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
|
Revenue
|
321,548
|
22,323
|
—
|
343,871
|
|
Direct cost of sales, general
and administrative expenses
|
258,529
|
21,973
|
4,234
|
284,736
|
|
Segment profit (loss)(1)
|
63,019
|
350
|
(4,234)
|
59,135
|
|
Depreciation and amortization
|
|
|
|
40,282
|
|
Interest
expense
|
|
|
|
34,751
|
|
Restructuring and other costs
|
|
|
|
2,137
|
|
Other expense, net
|
|
|
|
1,375
|
|
Loss before income taxes
|
|
|
|
(19,410)
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended February 29,
2024
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
|
Revenue
|
620,492
|
48,949
|
—
|
669,441
|
|
Direct cost of sales,
general and administrative expenses
|
439,831
|
43,547
|
12,469
|
495,847
|
|
Segment profit
(loss)(1)
|
180,661
|
5,402
|
(12,469)
|
173,594
|
|
Depreciation and
amortization
|
|
|
|
60,168
|
|
Interest
expense
|
|
|
|
57,161
|
|
Debt
refinancing
|
|
|
|
753
|
|
Restructuring and other
costs
|
|
|
|
16,068
|
|
Other income,
net
|
|
|
|
(317)
|
|
Income before income taxes
|
|
|
|
39,761
|
|
Six months ended
February 28, 2023
|
|
|
|
|
|
Television
|
Radio
|
Corporate
|
Consolidated
|
|
Revenue
|
723,077
|
51,985
|
—
|
775,062
|
|
Direct cost of sales,
general and administrative expenses
|
528,299
|
45,613
|
10,323
|
584,235
|
|
Segment profit
(loss)(1)
|
194,778
|
6,372
|
(10,323)
|
190,827
|
|
Depreciation and
amortization
|
|
|
|
80,416
|
|
Interest
expense
|
|
|
|
69,123
|
|
Restructuring and other
costs
|
|
|
|
4,966
|
|
Other expense,
net
|
|
|
|
8,421
|
|
Income before income taxes
|
|
|
|
27,901
|
|
|
|
|
|
|
(1)
|
Segment profit (loss)
does not have a standardized meaning prescribed by IFRS. For
definitions and explanations, see discussion under the Key
Performance Indicators and Non-GAAP Financial Measures section
of the Second Quarter 2024 Report to Shareholders.
|
REVENUE BY TYPE
|
Three months ended
|
Six months
ended
|
|
February 29,
|
February 28,
|
February 29,
|
February 28,
|
|
(unaudited - in thousands of Canadian
dollars)
|
2024
|
2023
|
2024
|
2023
|
|
Advertising
|
168,753
|
190,294
|
404,106
|
471,061
|
|
Subscriber
|
117,285
|
124,051
|
235,535
|
251,566
|
|
Distribution, production and other
|
13,499
|
29,526
|
29,800
|
52,435
|
|
299,537
|
343,871
|
669,441
|
775,062
|
NON-GAAP FINANCIAL MEASURES
|
Three months
ended
|
|
Six months
ended
|
|
|
(unaudited - in thousands of Canadian dollars,
except percentages)
|
February 29,
|
February 28,
|
%
|
February 29,
|
February 28,
|
%
|
|
New platform revenue
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
|
New platform revenue (numerator)
|
32,813
|
34,172
|
(4 %)
|
70,883
|
73,860
|
(4 %)
|
|
Television
advertising revenue
|
148,979
|
169,124
|
(12 %)
|
358,275
|
421,637
|
(15 %)
|
|
Television
subscriber revenue
|
117,285
|
124,051
|
(5 %)
|
235,535
|
251,566
|
(6 %)
|
|
Total
Television advertising and subscriber revenue (denominator)
|
266,264
|
293,175
|
(9 %)
|
593,810
|
673,203
|
(12 %)
|
|
New platform revenue
percentage
|
12 %
|
12 %
|
12 %
|
11 %
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
(unaudited
- in thousands of Canadian dollars, except per
share amounts)
|
February
29,
|
February 28,
|
February
29,
|
February 28,
|
|
Net income (loss) attributable to
shareholders
|
2024
|
2023
|
2024
|
2023
|
|
Adjustments, net of income tax:
|
(9,780)
|
(15,450)
|
22,931
|
15,937
|
|
Debt refinancing
|
—
|
—
|
555
|
—
|
|
Restructuring and other costs
|
3,836
|
1,570
|
11,817
|
3,649
|
|
Adjusted net income (loss) attributable to
shareholders
|
(5,944)
|
(13,880)
|
35,303
|
19,586
|
|
Basic earnings (loss) per share
|
($0.05)
|
($0.08)
|
$0.12
|
$0.08
|
|
Adjustments, net of income
tax:
|
|
|
|
|
|
Debt refinancing
|
—
|
—
|
—
|
—
|
|
Restructuring and other costs
|
$0.02
|
$0.01
|
$0.06
|
$0.02
|
|
Adjusted basic earnings (loss) per
share
|
($0.03)
|
($0.07)
|
$0.18
|
$0.10
|
|
Three months
ended
|
Six months
ended
|
|
(unaudited - in thousands of Canadian
dollars)
|
February 29,
|
February 28,
|
February 29,
|
February 28,
|
|
Free Cash
Flow
|
2024
|
2023
|
2024
|
2023
|
|
Cash provided by (used in):
|
|
|
|
|
|
Operating activities
|
38,127
|
30,932
|
61,885
|
55,523
|
|
Investing
activities
|
(5,265)
|
(2,606)
|
(5,661)
|
(6,387)
|
|
Add: cash used
in business acquisitions and strategic investments (1)
|
32,862
|
28,326
|
56,224
|
49,136
|
|
—
|
71
|
346
|
71
|
|
Free cash flow
|
32,862
|
28,397
|
56,570
|
49,207
|
|
(1)
|
Strategic investments are comprised of investments in venture funds and associated companies.
|
|
(unaudited - in thousands of Canadian
dollars)
|
As at February 29,
|
As at August
31,
|
|
Net Debt and Net
Debt to Segment Profit
|
2024
|
2023
|
|
Total debt,
net of unamortized financing fees and prepayment options
|
1,062,856
|
1,092,384
|
|
Lease liabilities
|
121,785
|
126,084
|
|
Cash and cash
equivalents
|
(61,505)
|
(56,163)
|
|
Net debt
(numerator)
|
1,123,136
|
1,162,305
|
|
Segment profit (denominator) (1)
|
316,772
|
334,005
|
|
Net debt to segment profit
|
3.55
|
3.48
|
|
Proforma net debt to segment
profit (2)
|
3.62
|
3.62
|
|
(1)
|
Reflects aggregate amounts for the most recent four quarters, as detailed in the table
in the Quarterly Consolidated Financial Information section of the Second
Quarter 2024 Report to Shareholders.
|
|
(2)
|
Proforma net debt to segment profit
ratio excludes contributions to segment profit
from Toon Boom Animation Inc.,
which was divested
on August 23, 2023, for the most
recent four quarters.
|
|
|
View original
content:https://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2024-second-quarter-results-302115331.html
SOURCE Corus Entertainment Inc (IR Group)