CORUS ENTERTAINMENT ANNOUNCES FISCAL 2024 THIRD QUARTER RESULTS
- Consolidated revenue decreased 16% for the quarter and 15% for the year-to-date
- Consolidated segment profit(1) decreased 30% for the quarter and 16% for the year-to-date
- Consolidated segment profit margin(1) of 20% for the quarter and 24% for the year-to-date
- Net loss attributable to shareholders of
$769.9 million ($3.86 loss per share basic) for the quarter and$747.0 million ($3.74 loss per share basic) for the year-to-date, which includes non-cash impairment charges of$960.0 million related to goodwill, broadcast licences as well as trade mark and brand assets, and program rights - Proforma net debt to segment profit(1) of 3.91 times at
May 31, 2024 , which excludes contributions to segment profit from a prior year business divestiture, was up from the proforma net debt to segment profit as atAugust 31, 2023 of 3.62 times - Free cash flow(1) of
$18.4 million for the quarter and$75.0 million for the year-to-date
"The third quarter results reflect the ongoing impacts of a challenging advertising environment," said
"As part of our mandate as co-CEOs, we are decisively reducing more costs and taking actions to right-size our business given the realities of our operating environment," said
Financial Highlights
|
Three months ended |
Nine months ended |
||||
|
|
|
% |
|
|
% |
(in thousands of Canadian dollars except per share amounts) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
Revenue |
|
|
|
|
|
|
Television |
308,198 |
371,159 |
(17 %) |
928,690 |
1,094,236 |
(15 %) |
Radio |
23,606 |
26,176 |
(10 %) |
72,555 |
78,161 |
(7 %) |
|
331,804 |
397,335 |
(16 %) |
1,001,245 |
1,172,397 |
(15 %) |
|
|
|
|
|
||
Segment profit (loss) (1) |
|
|
|
|
|
|
Television |
68,412 |
96,028 |
(29 %) |
249,073 |
290,806 |
(14 %) |
Radio |
2,633 |
4,112 |
(36 %) |
8,035 |
10,484 |
(23 %) |
Corporate |
(3,510) |
(3,235) |
(9 %) |
(15,979) |
(13,558) |
(18 %) |
|
67,535 |
96,905 |
(30 %) |
241,129 |
287,732 |
(16 %) |
|
|
|
|
|
||
Segment profit margin (1) |
|
|
|
|
|
|
Television |
22 % |
26 % |
|
27 % |
27 % |
|
Radio |
11 % |
16 % |
|
11 % |
13 % |
|
Consolidated |
20 % |
24 % |
|
24 % |
25 % |
|
|
|
|
|
|
||
Net loss attributable to shareholders |
(769,897) |
(495,073) |
(56 %) |
(746,966) |
(479,136) |
(56 %) |
Adjusted net income (loss) attributable to shareholders(1) |
(19,873) |
18,042 |
(210 %) |
15,430 |
37,628 |
(59 %) |
|
|
|
|
|
||
Earnings (loss) per share: |
|
|
|
|
|
|
Basic |
( |
( |
|
( |
( |
|
Diluted |
( |
( |
|
( |
( |
|
Adjusted basic(1) |
( |
|
|
|
|
|
|
|
|
|
|
||
Free cash flow (1) |
18,440 |
25,979 |
(29 %) |
75,010 |
75,186 |
— |
(1) In addition to disclosing results in accordance with International Financial Reporting Standards ("IFRS") as issued by the |
Segment Revenue
|
Three months ended |
Nine months ended |
||||
|
|
|
% |
|
|
% |
(in thousands of Canadian dollars) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
Revenue |
308,198 |
|
|
928,690 |
|
|
Television |
371,159 |
(17 %) |
1,094,236 |
(15 %) |
||
Advertising |
178,182 |
209,008 |
(15 %) |
536,457 |
630,645 |
(15 %) |
Subscriber |
116,914 |
124,225 |
(6 %) |
352,449 |
375,791 |
(6 %) |
Distribution, production and other |
13,102 |
37,926 |
(65 %) |
39,784 |
87,800 |
(55 %) |
Radio |
23,606 |
26,176 |
(10 %) |
72,555 |
78,161 |
(7 %) |
Total Revenue |
331,804 |
397,335 |
(16 %) |
1,001,245 |
1,172,397 |
(15 %) |
|
|
|
|
|
||
New platform revenue percentage (1) |
12 % |
12 % |
(9 %) |
12 % |
11 % |
(6 %) |
(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 Third Quarter 2024 Report to Shareholders. |
Operational Highlights
Corus has appointed Co-CEOs
-
Global TV announces its 2024/2025 primetime lineup of new acquisitions and returns of major hit series. Global TV's roster will deliver 18.5 hours of simulcast programming in primetime this fall and introduces new dramas
Matlock , Murder in aSmall Town , and NCIS: Origins. The fall schedule also features the return of #1 show Survivor(1), #1 drama 9-1-1(1), and Elsbeth, along with popular franchises FBI and NCIS, and Top 10 ranked comedy Ghosts(1). -
Corus' Specialty networks and streaming platforms announce 2024/2025 series lineup. Corus' specialty drama networks and STACKTV will feature returning seasons of
Bel Air , Ted, Based on a True Story, Outlander and The Way Home along with new Peacock OriginalsUntitled Steph Curry/Adam Pally Project (WT), Fight Night: The Million Dollar Heist and Lockerbie. Corus' unscripted and reality networks, and STACKTV will see the return of Celebrity IOU and The Secret ofSkinwalker Ranch , and new series 100Day Hotel Challenge (WT), Holy Marvels withDennis Quaid , and more.
(1) Source: Numeris Personal People Meter Data, Total Canada, Spring 2024 season (Jan 8-Jun 2/24) – Confirmed data, 3+ airings, Adults 25-54, Average Minute Audience(000), Canadian Conventional Commercial English national networks, and Connected TV com all others 'Total', excludes playoffs. |
Financial Highlights
- Free cash flow(1) of
$18.4 million in Q3 and$75.0 million year-to-date compared to$26.0 million and$75.2 million , respectively, in the same comparable prior year periods. The decrease in free cash flow(1) for the third quarter and the year-to-date is mainly attributable to lower cash provided by operating activities. - Net debt to segment profit(1) was 3.86 times as at
May 31, 2024 . Proforma net debt to segment profit(2) was 3.91 times atMay 31, 2024 , up from 3.62 times atAugust 31, 2023 . This ratio increased as a result of the decline in segment profit(1) for the most recent four quarters exceeding the effect of the reduced net debt. - In the third quarter of fiscal 2024, Corus paid down
$4.6 million of debt and$36.1 million for the year-to-date. - As of
May 31, 2024 , the Company had$67.2 million of cash and cash equivalents and$98.4 million available to be drawn under its$300.0 million Revolving Facility. OnJune 1, 2024 , availability on the Revolving Facility decreased to$30.2 million as a result of the decrease in the maximum total debt to cash flow ratio required under the financial covenants on that date.
(1) Free cash flow, segment profit (loss), 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 Third Quarter 2024 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended |
(2) Proforma net debt to segment profit ratio excludes contributions to segment profit from |
The unaudited interim condensed consolidated financial statements and accompanying notes for the three and nine months ended
A conference call with Corus senior management is scheduled for
Risks and Uncertainties
Significant risks and uncertainties affecting the Company and its business are discussed under the heading "Risks and Uncertainties" and "Seasonal Fluctuations" in the 2023 MD&A, as filed at www.sedarplus.ca on
As discussed further in the 2023 MD&A, the Company's operating performance is affected by general Canadian and worldwide economic conditions. Changes or volatility in domestic or international economic conditions, economic uncertainty or geopolitical conflict and tensions, including current ongoing factors that can create or exacerbate recessionary conditions, may affect discretionary consumer and business spending, including on advertising and marketing, resulting in changes to demand for Corus' product and services offerings. The continued elevated consumer price index inflation also affects the Company's business, operations and financial performance through disruption to supply chains, increased costs of programming, services and labour, reduced advertising demand or spending, or lower demand for the Company's products and services, all of which may lead to decreased revenue or profitability.
As previously identified, additional key factors that have and may continue to adversely impact the Company's ability to compete successfully and its financial results include, but are not limited to: industry-wide, continuing reduced advertising demand or spending on linear television; macroeconomic supply chain disruptions, which in turn impact advertising; ability to secure programming rights; changes to acquired programming costs and arrangements, which continue to increase; and continued inaction or slower action by Corus' federal broadcast regulator to revisit Canadian program spending requirements, which represent a significant portion of the Company's cost base. A more extensive discussion of risks and uncertainties that may affect the Company's business, operations and financial performance can be found in the 2023 Annual MD&A.
Programming and trade mark output arrangements for
In addition, the Company has entered into the Credit Facility and issued the Senior Unsecured Notes, all of which contain certain financial covenants including with respect to the maintenance of certain leverage ratios. Management has taken and continues to take significant cost reduction actions and make appropriate investments in areas or assets which support sustainable profitability. Management also intends to actively pursue options for such amendments or relief, concurrent with such cost reduction actions and its regulatory advocacy. However, should the financial performance, specifically the impacts to profitability, continue to decline without successful mitigation and should there be no further changes or amendments to the foregoing financing arrangements, there is material risk that the Company will not meet its covenants under (i) the terms of the Credit Facility, anticipated to be in effect as at
The Company's ability to mitigate the concerns above is dependent on its ability to continue to access financing and / or obtain relief from or amendments to terms with lenders or noteholders with respect to relevant financial covenants or repayment terms under such facilities. While the Company has been successful in obtaining requisite relief and amendments in the past, there can be no assurance it will be able to do so in the future.
Other financial risks which may be related to or elevated by the foregoing include the volatility of the market price for the Company's Class B Non-Voting Shares, which can be impacted by factors beyond the Company's control and which can decline even if the Company's operating results, underlying asset values or prospects have not changed. Please see the 2023 MD&A for a full discussion of these and other risks and uncertainties.
Outlook
In the fourth quarter, we continue to expect lingering impacts from the lengthy disruption of advertising markets due to the
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 (loss) attributable to shareholders, adjusted basic earnings (loss) 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 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 nine months ended
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 and 2025, 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 including new or re-programmed channels; 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
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
About
CORUS ENTERTAINMENT INC. |
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
|
|
(unaudited - in thousands of Canadian dollars) |
As at |
As at |
2024 |
2023 |
|
ASSETS |
|
|
Current |
|
|
Cash and cash equivalents |
67,208 |
56,163 |
Accounts receivable |
284,728 |
295,175 |
Income taxes recoverable |
11,791 |
21,597 |
Prepaid expenses and other assets |
20,776 |
21,285 |
Total current assets |
384,503 |
394,220 |
Tax credits receivable |
38,210 |
44,270 |
Investments and other assets |
55,742 |
74,415 |
Property, plant and equipment, net |
253,602 |
268,214 |
Program rights |
530,133 |
668,976 |
Film investments |
56,990 |
53,085 |
Intangible assets, net |
265,200 |
1,198,229 |
Deferred income tax assets |
— |
44,653 |
Total assets |
1,584,380 |
2,746,062 |
LIABILITIES AND EQUITY (DEFICIT) |
|
|
Current |
|
|
Accounts payable and accrued liabilities |
525,210 |
565,052 |
Current portion of long-term debt |
14,057 |
13,434 |
Provisions |
17,004 |
9,811 |
Total current liabilities |
556,271 |
588,297 |
Long-term debt |
1,045,111 |
1,078,950 |
Other long-term liabilities |
229,002 |
316,912 |
Provisions |
8,695 |
9,041 |
Deferred income tax liabilities |
56,396 |
293,862 |
Total liabilities |
1,895,475 |
2,287,062 |
EQUITY (DEFICIT) |
|
|
Share capital |
281,052 |
281,052 |
Contributed surplus |
2,013,509 |
2,012,936 |
Accumulated deficit |
(2,764,045) |
(2,014,077) |
Accumulated other comprehensive income |
29,174 |
37,841 |
Total equity (deficit) attributable to shareholders |
(440,310) |
317,752 |
Equity attributable to non-controlling interests |
129,215 |
141,248 |
Total equity (deficit) |
(311,095) |
459,000 |
|
1,584,380 |
2,746,062 |
|
|
|
||
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS |
|
|||
|
Three months ended |
Nine months ended |
||
|
|
|
|
|
(unaudited - in thousands of Canadian dollars except per share amounts) |
2024 |
2023 |
2024 |
2023 |
Revenue |
331,804 |
397,335 |
1,001,245 |
1,172,397 |
Direct cost of sales, general and administrative expenses |
264,269 |
300,430 |
760,116 |
884,665 |
Depreciation and amortization |
27,397 |
40,178 |
87,565 |
120,594 |
Interest expense |
26,004 |
33,278 |
83,165 |
102,401 |
|
960,000 |
590,000 |
960,000 |
590,000 |
Debt refinancing |
— |
— |
753 |
— |
Restructuring and other costs |
10,893 |
10,580 |
26,961 |
15,546 |
Other expense (income), net |
452 |
(1,997) |
135 |
6,424 |
Loss before income taxes |
(957,211) |
(575,134) |
(917,450) |
(547,233) |
Income tax recovery |
(184,109) |
(83,982) |
(173,670) |
(75,760) |
Net loss for the period |
(773,102) |
(491,152) |
(743,780) |
(471,473) |
Other comprehensive income (loss), net of income taxes |
|
|
|
|
Items that may be reclassified subsequently to loss: |
|
|
|
|
Unrealized change in fair value of cash flow hedges |
65 |
461 |
(2,779) |
1,755 |
Unrealized foreign currency translation adjustment |
84 |
(143) |
316 |
1,166 |
|
149 |
318 |
(2,463) |
2,921 |
Items that will not be reclassified to loss: |
|
|
|
|
Unrealized change in fair value of financial assets |
254 |
(578) |
(6,204) |
(1,266) |
Actuarial loss on post-retirement benefit plans |
(1,426) |
(578) |
(3,856) |
(31) |
|
(1,172) |
(1,156) |
(10,060) |
(1,297) |
Other comprehensive income (loss), net of income taxes |
(1,023) |
(838) |
(12,523) |
1,624 |
Comprehensive loss for the period |
(774,125) |
(491,990) |
(756,303) |
(469,849) |
|
|
|
|
|
Net loss attributable to: |
|
|
|
|
Shareholders |
(769,897) |
(495,073) |
(746,966) |
(479,136) |
Non-controlling interests |
(3,205) |
3,921 |
3,186 |
7,663 |
|
(773,102) |
(491,152) |
(743,780) |
(471,473) |
|
|
|
|
|
Comprehensive income (loss) attributable to: |
|
|
|
|
Shareholders |
(770,920) |
(495,911) |
(759,489) |
(477,512) |
Non-controlling interests |
(3,205) |
3,921 |
3,186 |
7,663 |
|
(774,125) |
(491,990) |
(756,303) |
(469,849) |
|
|
|
|
|
Loss per share attributable to shareholders: |
|
|
|
|
Basic |
( |
( |
( |
( |
Diluted |
( |
( |
( |
( |
CORUS ENTERTAINMENT INC. |
|
|
|
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) |
|||||||
(unaudited - in thousands of Canadian dollars) |
Share |
Contributed surplus |
Accumulated deficit |
Accumulated
other income |
Total equity
(deficit) |
Non- |
Total equity (deficit) |
As at |
281,052 |
2,012,936 |
(2,014,077) |
37,841 |
317,752 |
141,248 |
459,000 |
Comprehensive income (loss) |
— |
— |
(746,966) |
(12,523) |
(759,489) |
3,186 |
(756,303) |
Dividends declared |
— |
— |
— |
— |
— |
(10,073) |
(10,073) |
Change in fair value of put option liability |
— |
— |
854 |
— |
854 |
(5,146) |
(4,292) |
Actuarial loss on post-retirement benefit plans |
— |
— |
(3,856) |
3,856 |
— |
— |
— |
Share-based compensation expense |
— |
573 |
— |
— |
573 |
— |
573 |
As at |
281,052 |
2,013,509 |
(2,764,045) |
29,174 |
(440,310) |
129,215 |
(311,095) |
(unaudited - in thousands of Canadian dollars) |
Share capital |
Contributed surplus |
Accumulated deficit |
Accumulated
other income |
Total equity |
Non- |
Total equity |
As at |
781,918 |
1,511,481 |
(1,574,358) |
33,000 |
752,041 |
151,940 |
903,981 |
Comprehensive income (loss) |
— |
— |
(479,136) |
1,624 |
(477,512) |
7,663 |
(469,849) |
Dividends declared |
— |
— |
(17,490) |
— |
(17,490) |
(15,750) |
(33,240) |
Reduction of stated capital |
(500,000) |
500,000 |
— |
— |
— |
— |
— |
Change in fair value of put option liability |
— |
— |
(754) |
— |
(754) |
65 |
(689) |
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 loss on post-retirement benefit plans |
— |
— |
(31) |
31 |
— |
— |
— |
Share-based compensation expense |
— |
562 |
— |
— |
562 |
— |
562 |
Reallocation of equity interest |
— |
— |
3,226 |
— |
3,226 |
(3,226) |
— |
Equity funding by a non-controlling interest |
— |
— |
— |
— |
— |
3,855 |
3,855 |
As at |
281,052 |
2,012,658 |
(2,068,543) |
34,655 |
259,822 |
144,547 |
404,369 |
CORUS ENTERTAINMENT INC. |
|
|
|
|
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
|
|
|
Three months ended |
Nine months ended |
||
|
|
|
|
|
(unaudited - in thousands of Canadian dollars) |
2024 |
2023 |
2024 |
2023 |
OPERATING ACTIVITIES |
|
|
|
|
Net loss for the period |
(773,102) |
(491,152) |
(743,780) |
(471,473) |
Adjustments to reconcile net loss to cash flow from operations: |
|
|
|
|
Amortization of program rights |
135,027 |
158,748 |
374,395 |
454,688 |
Amortization of film investments |
6,890 |
12,195 |
14,211 |
22,704 |
Depreciation and amortization |
27,397 |
40,178 |
87,565 |
120,594 |
Deferred income tax recovery |
(186,302) |
(91,630) |
(189,425) |
(100,189) |
|
960,000 |
590,000 |
960,000 |
590,000 |
Share-based compensation expense |
162 |
194 |
573 |
562 |
Imputed interest |
9,854 |
13,675 |
33,275 |
45,031 |
Debt refinancing |
— |
— |
753 |
— |
Payment of program rights |
(149,981) |
(161,185) |
(416,163) |
(494,232) |
Net spend on film investments |
(11,484) |
(18,674) |
(21,627) |
(54,949) |
Other |
253 |
1,015 |
(529) |
1,156 |
Cash flow from operations |
18,714 |
53,364 |
99,248 |
113,892 |
Net change in non-cash working capital balances related to operations |
4,217 |
(23,554) |
(14,432) |
(28,559) |
Cash provided by operating activities |
22,931 |
29,810 |
84,816 |
85,333 |
INVESTING ACTIVITIES |
|
|
|
|
Additions to property, plant and equipment |
(4,328) |
(3,548) |
(11,931) |
(8,921) |
Proceeds from sale of property |
37 |
396 |
2,261 |
736 |
Net cash flows for intangibles, investments and other assets |
(200) |
(679) |
(482) |
(2,033) |
Cash used in investing activities |
(4,491) |
(3,831) |
(10,152) |
(10,218) |
FINANCING ACTIVITIES |
|
|
|
|
Decrease in bank loans |
(4,583) |
(10,203) |
(36,069) |
(12,273) |
Financing fees |
— |
— |
(619) |
(998) |
Share repurchase under NCIB |
— |
— |
— |
(2,045) |
Equity funding by a non-controlling interest |
— |
— |
— |
3,855 |
Payment of lease liabilities |
(4,661) |
(4,570) |
(13,612) |
(13,383) |
Dividends paid |
— |
(5,979) |
— |
(29,944) |
Dividends paid to non-controlling interests |
(2,403) |
(5,677) |
(10,073) |
(15,750) |
Other |
(1,090) |
(1,229) |
(3,246) |
(3,316) |
Cash used in financing activities |
(12,737) |
(27,658) |
(63,619) |
(73,854) |
Net change in cash and cash equivalents during the period |
5,703 |
(1,679) |
11,045 |
1,261 |
Cash and cash equivalents, beginning of the period |
61,505 |
57,852 |
56,163 |
54,912 |
Cash and cash equivalents, end of the period |
67,208 |
56,173 |
67,208 |
56,173 |
CORUS ENTERTAINMENT INC. |
|
|
|
|
BUSINESS SEGMENT INFORMATION |
|
|
|
|
(unaudited - in thousands of Canadian dollars) |
|
|
|
|
Three months ended |
|
|
|
|
|
Television |
Radio |
Corporate |
Consolidated |
Revenue |
308,198 |
23,606 |
— |
331,804 |
Direct cost of sales, general and administrative expenses |
239,786 |
20,973 |
3,510 |
264,269 |
Segment profit (loss)(1) |
68,412 |
2,633 |
(3,510) |
67,535 |
Depreciation and amortization |
|
|
|
27,397 |
Interest expense |
|
|
|
26,004 |
|
|
|
|
960,000 |
Restructuring and other costs |
|
|
|
10,893 |
Other expense, net |
|
|
|
452 |
Loss before income taxes |
|
|
|
(957,211) |
Three months ended |
|
|
|
|
|
Television |
Radio |
Corporate |
Consolidated |
Revenue |
371,159 |
26,176 |
— |
397,335 |
Direct cost of sales, general and administrative expenses |
275,131 |
22,064 |
3,235 |
300,430 |
Segment profit (loss)(1) |
96,028 |
4,112 |
(3,235) |
96,905 |
Depreciation and amortization |
|
|
|
40,178 |
Interest expense |
|
|
|
33,278 |
|
|
|
|
590,000 |
Restructuring and other costs |
|
|
|
10,580 |
Other income, net |
|
|
|
(1,997) |
Loss before income taxes |
|
|
|
(575,134) |
Nine months ended |
|
|
|
|
|
Television |
Radio |
Corporate |
Consolidated |
Revenue |
928,690 |
72,555 |
— |
1,001,245 |
Direct cost of sales, general and administrative expenses |
679,617 |
64,520 |
15,979 |
760,116 |
Segment profit (loss)(1) |
249,073 |
8,035 |
(15,979) |
241,129 |
Depreciation and amortization |
|
|
|
87,565 |
Interest expense |
|
|
|
83,165 |
|
|
|
|
960,000 |
Debt refinancing |
|
|
|
753 |
Restructuring and other costs |
|
|
|
26,961 |
Other expense, net |
|
|
|
135 |
Loss before income taxes |
|
|
|
(917,450) |
Nine months ended |
|
|
|
|
|
Television |
Radio |
Corporate |
Consolidated |
Revenue |
1,094,236 |
78,161 |
— |
1,172,397 |
Direct cost of sales, general and administrative expenses |
803,430 |
67,677 |
13,558 |
884,665 |
Segment profit (loss)(1) |
290,806 |
10,484 |
(13,558) |
287,732 |
Depreciation and amortization |
|
|
|
120,594 |
Interest expense |
|
|
|
102,401 |
|
|
|
|
590,000 |
Restructuring and other costs |
|
|
|
15,546 |
Other expense, net |
|
|
|
6,424 |
Loss before income taxes |
|
|
|
(547,233) |
(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 Third Quarter 2024 Report to Shareholders. |
REVENUE BY TYPE
|
Three months ended |
Nine months ended |
||
|
|
|
|
|
(unaudited - in thousands of Canadian dollars) |
2024 |
2023 |
2024 |
2023 |
Advertising |
200,370 |
233,840 |
604,476 |
704,901 |
Subscriber |
116,914 |
124,225 |
352,449 |
375,791 |
Distribution, production and other |
14,520 |
39,270 |
44,320 |
91,705 |
|
331,804 |
397,335 |
1,001,245 |
1,172,397 |
NON-GAAP FINANCIAL MEASURES
(unaudited - in thousands of Canadian dollars, except percentages) |
Three months ended |
Nine months ended |
||||
|
|
|
% |
|
|
% |
New platform revenue |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
New platform revenue (numerator) |
34,972 |
38,637 |
(9 %) |
105,855 |
112,497 |
(6 %) |
Television advertising revenue |
178,182 |
209,008 |
(15 %) |
536,457 |
630,645 |
(15 %) |
Television subscriber revenue |
116,914 |
124,225 |
(6 %) |
352,449 |
375,791 |
(6 %) |
Total Television advertising and subscriber revenue (denominator) |
295,096 |
333,233 |
(11 %) |
888,906 |
1,006,436 |
(12 %) |
New platform revenue percentage |
12 % |
12 % |
12 % |
11 % |
|
Three months ended |
Nine months ended |
||
(unaudited - in thousands of Canadian dollars, except per share amounts) |
|
|
|
|
Adjusted Net Income Attributable to Shareholders |
2024 |
2023 |
2024 |
2023 |
Net loss attributable to shareholders |
(769,897) |
(495,073) |
(746,966) |
(479,136) |
Adjustments, net of income tax: |
|
|
|
|
|
742,016 |
504,953 |
742,016 |
504,953 |
Debt refinancing |
— |
— |
555 |
— |
Restructuring and other costs |
8,008 |
8,162 |
19,825 |
11,811 |
Adjusted net income (loss) attributable to shareholders |
(19,873) |
18,042 |
15,430 |
37,628 |
Basic loss per share |
( |
( |
( |
( |
Adjustments, net of income tax: |
|
|
|
|
|
|
|
|
|
Debt refinancing |
— |
— |
— |
— |
Restructuring and other costs |
|
|
|
|
Adjusted basic earnings (loss) per share |
( |
|
|
|
|
Three months ended |
Nine months ended |
||
(unaudited - in thousands of Canadian dollars) |
|
|
|
|
Free Cash Flow |
2024 |
2023 |
2024 |
2023 |
Cash provided by (used in): |
|
|
|
|
Operating activities |
22,931 |
29,810 |
84,816 |
85,333 |
Investing activities |
(4,491) |
(3,831) |
(10,152) |
(10,218) |
Add: cash used in business acquisitions and strategic investments (1) |
18,440 |
25,979 |
74,664 |
75,115 |
— |
— |
346 |
71 |
|
Free cash flow |
18,440 |
25,979 |
75,010 |
75,186 |
(1) Strategic investments are comprised of investments in venture funds and associated companies. |
|
(unaudited - in thousands of Canadian dollars) |
As at |
As at |
Net Debt and Net Debt to Segment Profit |
2024 |
2023 |
Total debt, net of unamortized financing fees and prepayment options |
1,059,168 |
1,092,384 |
Lease liabilities |
118,844 |
126,084 |
Cash and cash equivalents |
(67,208) |
(56,163) |
Net debt (numerator) |
1,110,804 |
1,162,305 |
Segment profit (denominator) (1) |
287,402 |
334,005 |
Net debt to segment profit |
3.86 |
3.48 |
Proforma net debt to segment profit (2) |
3.91 |
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 Third Quarter 2024 Report to Shareholders. |
(2) Proforma net debt to segment profit ratio excludes contributions to segment profit from |
View original content:https://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2024-third-quarter-results-302196711.html
SOURCE