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Corus Entertainment Announces Fiscal 2019 Third Quarter Results

  • Consolidated revenues increased 4% for the quarter and 3% year-to-date, driven by a 10% increase in Television advertising revenues for the quarter and 8% for the year-to-date
  • Consolidated segment profit(1) was consistent with the quarter and up 3% year-to-date
  • Consolidated segment profit margin(1) of 37% for the quarter and 36% year-to-date
  • Net income attributable to shareholders of $66.4(2) million ($0.31 per share basic) for the quarter and $133.1(2) million ($0.63 per share basic) for the year-to-date
  • Free cash flow(1) of $90.1 million for the quarter and $216.4 million for the year-to-date

TORONTO, June 26, 2019 /CNW/ - Corus Entertainment Inc. (TSX:CJR-B.TO - News) announced its third quarter financial results today.

"Corus delivered a third consecutive quarter of consolidated revenue growth, driven primarily by a double-digit increase in Television advertising, partially offset by lower subscriber revenues and softness in our radio segment," said Doug Murphy, President and Chief Executive Officer. "Significant innovations such as the debut of STACKTV on Amazon Prime Video Channels and expansion of Corus' social and digital content offerings, combined with our robust new slate of owned content and a strong programming line-up demonstrate our commitment to optimize our core business and build for the future. Importantly, these strong Q3 results have enabled us to achieve our leverage target one quarter ahead of our goal, once again improving our financial flexibility."

Financial Highlights         







Three months ended

Nine months ended



May 31,


 May 31,

(in thousands of Canadian dollars except per share amounts)

2019

2018

2019

2018

Revenues





Television

421,481

402,990

1,201,137

1,154,676

Radio

36,936

38,420

108,866

113,587


458,417

441,410

1,310,003

1,268,263

Segment profit (1)





Television

166,650

160,803

464,912

433,051

Radio

9,768

11,447

27,735

31,851

Corporate

(5,895)

(1,829)

(17,338)

(3,835)


170,523

170,421

475,309

461,067

Net income (loss) attributable to shareholders (2)

66,378

(935,899)

133,137

(818,184)

Adjusted net income attributable to shareholders (1) (2) (3)

66,077

78,112

153,077

198,877

Basic earnings (loss) per share (2)

$0.31

($4.49)

$0.63

($3.94)

Adjusted basic earnings per share (1) (2) (3)

$0.31

$0.37

$0.72

$0.96

Diluted earnings (loss) per share (2)

$0.31

($4.49)

$0.63

($3.94)

Free cash flow (1)

90,101

87,753

216,416

253,041

(1)

Segment profit, segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, and free cash flow do not have standardized meanings prescribed by IFRS. The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions, explanations and reconciliations see discussion under the Key Performance Indicators section of the Third Quarter 2019 Report to Shareholders.



(2)

Net income attributable to shareholders as well as basic and diluted earnings per share for the three and nine months ended May 31, 2019 was impacted by a change in accounting estimate related to the useful life of the Company's television brand assets. Commencing September 1, 2018, the useful life of television brand assets was changed from indefinite life to lives ranging from three to 20 years. For the three and nine months ended May 31, 2019, this has resulted in an additional $16.7 million and $86.5 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income and comprehensive income attributable to shareholders, net of income taxes, by $12.3 million ($0.06 per share basic) and $63.6 million ($0.30 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Third Quarter 2019 Report to Shareholders.



(3)

Refer to page 10 of this press release for details of adjustments to arrive at adjusted net income attributable to shareholders and adjusted basic earnings per share.

 

Consolidated Results from Operations

Consolidated revenues for the three months ended May 31, 2019 were $458.4 million, up 4% from $441.4 million    last year and consolidated segment profit was $170.5 million, consistent with $170.4 million last year. Net income attributable to shareholders for the quarter ended May 31, 2019 was $66.4 million ($0.31 per share basic), compared to a net loss attributable to shareholders of $935.9 million ($4.49 loss per share basic) last year. Net income attributable to shareholders for the third quarter of fiscal 2019 includes business acquisition, integration and restructuring costs of $2.3 million ($0.01 per share, net of income taxes), a gain on debt modification of $3.9 million ($0.01 per share, net of income taxes) and a loss on disposal of the Telelatino Network of $0.3 million ($nil per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $66.1 million ($0.31 per share basic) for the quarter. Net loss attributable to shareholders for the prior year quarter includes broadcast license and goodwill impairment charges of $1,013.7 million ($4.84 per share basic, net of income taxes), and business acquisition, integration and restructuring costs of $5.3 million ($0.02 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $78.1 million ($0.37 per share basic) for the prior year quarter.

Consolidated revenues for the nine months ended May 31, 2019 were $1,310.0 million, up 3% from $1,268.3 million last year. Consolidated segment profit was $475.3 million, up 3% from $461.1 million last year. Net income attributable to shareholders for the nine months ended May 31, 2019 was $133.1 million ($0.63 per share basic), compared to a net loss attributable to shareholders of $818.2 million ($3.94 loss per share basic) last year. Net income attributable to shareholders for the nine months ended May 31, 2019 includes business acquisition, integration and restructuring costs of $19.5 million ($0.07 per share, net of income taxes), an impairment on an investment in associates of $8.7 million ($0.03 per share, net of income taxes), a gain on debt modification of $3.9 million ($0.01 per share, net of income taxes) and a loss on disposal of the Telelatino Network of $0.3 million ($nil per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $153.1 million ($0.72 per share basic, net of income taxes) for the current fiscal year. Net loss attributable to shareholders for the nine months ended May 31, 2018 includes broadcast license and goodwill impairment charges of $1,013.7 million ($4.87 per share basic, net of income taxes), and business acquisition, integration and restructuring costs of $9.4 million ($0.03 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $198.9 million ($0.96 per share basic) for the prior year-to-date period.

Consolidated net income attributable to shareholders as well as basic and diluted earnings per share for the three and nine months ended May 31, 2019 was impacted by a change in accounting estimate related to the useful life of the Company's television brands. Commencing September 1, 2018, the useful life of television brands was changed from indefinite life to lives ranging from three to 20 years. For the three and nine months ended May 31, 2019, this has resulted in an additional $16.7 million and $86.5 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income attributable to shareholders, net of income taxes, by $12.3 million ($0.06 per share basic) and $63.6 million ($0.30 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Third Quarter 2019 Report to Shareholders

Operational Results - Highlights for Q3 2019 Television

  • Segment revenues increased 5% in Q3 2019 and 4% year-to-date
  • Advertising revenues increased 10% in Q3 2019 and 8% year-to-date
  • Subscriber revenues were down 4% in Q3 2019 and 2% year-to-date
  • Merchandising, distribution and other revenues were down $1.2 million in Q3 2019 and $3.2 million year-to-date
  • Segment profit(1) increased 4% in Q3 2019 and 7% year-to-date
  • Segment profit margin(1) of 40% in Q3 2019 and 39% year-to-date, compared to 40% and 38%, respectively, in the prior year


(1)

Segment profit and segment profit margin 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 section of the Third Quarter 2019 Report to Shareholders.

 

Radio

  • Segment revenues decreased 4% in both Q3 2019 and the year-to-date
  • Segment profit(1) decreased $1.7 million in Q3 2019 and $4.1 million year-to-date
  • Segment profit margin(1) of 26% in Q3 2019 and 25% year-to-date, compared to 30% and 28%, respectively, in the prior year


Corporate

  • Divestiture of 50.5% interest in the Telelatino Network for $12.5 million, net of divested cash and prepaid revenue related to ongoing service arrangements (gross proceeds of $19.0 million) in Q3 2019
  • Free cash flow(1) of $90.1 million in Q3 2019 and $216.4 million year-to-date, compared to $87.8 million and $253.0 million, respectively, in the prior year
  • Net debt to segment profit(1) leverage of 2.92 times at May 31, 2019, down from 3.28 times at August 31, 2018, in part due to debt repayments of $190.0 million for the year-to-date
  • Consolidated segment profit margin(1) of 37% in Q3 2019 and 36% year-to-date, compared to 39% and 36%, respectively, in the prior year


(1)

Segment profit, segment profit margin, and free cash flow 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 section of the Third Quarter 2019 Report to Shareholders.

 

Corus Entertainment Inc. reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2019 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 June 26, 2019 at 8:00 a.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 local and international callers is 1.647.427.7450 and for North America is 1.888.231.8191. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of net income attributable to shareholders, adjusted basic earnings per share and free cash flow that are not in accordance with, nor an alternate to, generally accepted accounting principles ("IFRS") and may be different from non-IFRS measures used by other companies. In addition, these non-IFRS measures are not based on any comprehensive set of accounting rules or principles.

Non-IFRS 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-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-IFRS measures is included in the Company's most recent Report to Shareholders which is available on Corus' website at www.corusent.com as well as on SEDAR at www.sedar.com.

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 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 information"). These forward-looking statements relate 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 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 may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions and 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, interest rates, stability of the advertising, distribution, merchandise and subscription markets, operating and capital costs and tariffs, taxes and fees, our ability to source desirable content and our capital and operating results being consistent with our 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: 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 any forward-looking information may be found under the heading "Risks and Uncertainties" in the Management's Discussion and Analysis for the year ended August 31, 2018 and the third quarter ended May 31, 2019 and under the heading "Risk Factors" in our Annual Information Form. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on our 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. Unless 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.TO - News) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. The company's portfolio of multimedia offerings encompass 37 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital assets, animation software, technology and media services. Corus is an established creator of globally distributed content through Nelvana animation studio, Corus Studios, and children's book publishing house Kids Can Press. The company also owns innovative full-service social digital agency so.da, and lifestyle entertainment company Kin Canada. Corus' roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, National Geographic, Disney Channel Canada, YTV and Nickelodeon Canada, Global News, Globalnews.ca, Q107, Country 105, and CFOX. Visit Corus at www.corusent.com.

 

CORUS ENTERTAINMENT INC.



CONSOLIDATED STATEMENTS OF FINANCIAL POSITION







As at May 31,

As at August 31,

(unaudited - in thousands of Canadian dollars)

2019

2018




ASSETS



Current



Cash and cash equivalents

69,221

94,801

Accounts receivable

451,961

388,751

Income taxes recoverable

3,305

Prepaid expenses and other assets

22,759

20,723

Total current assets

543,941

507,580

Tax credits receivable

33,079

18,047

Investments and other assets

52,513

82,213

Property, plant and equipment

215,214

231,192

Program rights

542,795

538,357

Film investments

52,968

43,424

Intangibles (1)

1,903,523

2,012,086

Goodwill

1,383,958

1,387,652

Deferred income tax assets

70,238

62,403


4,798,229

4,882,954

 

LIABILITIES AND EQUITY



Current



Accounts payable and accrued liabilities

439,694

405,762

Current portion of long-term debt

91,339

106,375

Provisions

9,628

11,175

Income taxes payable

18,856

Total current liabilities

559,517

523,312

 

Long-term debt

 

1,699,262

 

1,877,558

Other long-term liabilities

317,314

295,206

Provisions

10,275

7,801

Deferred income tax liabilities

475,444

502,274

Total liabilities

3,061,812

3,206,151

 

EQUITY



Share capital

830,477

2,330,477

Contributed surplus

1,512,604

12,119

Accumulated deficit

(770,635)

(856,668)

Accumulated other comprehensive income

17,081

36,460

Total equity attributable to shareholders

1,589,527

1,522,388

Equity attributable to non-controlling interest

146,890

154,415

Total equity

1,736,417

1,676,803


4,798,229

4,882,954


                              

CORUS ENTERTAINMENT INC.



CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)







Three months ended

Nine months ended



May 31, 


May 31,

(unaudited - in thousands of Canadian dollars except per share amounts)

2019

2018

2019

2018

Revenues

458,417

441,410

1,310,003

1,268,263

Direct cost of sales, general and administrative expenses

287,894

270,989

834,694

807,196

Depreciation and amortization (1)

35,899

20,432

145,028

62,022

Interest expense

28,220

32,500

91,405

96,341

Broadcast license and goodwill impairment

1,013,692

1,013,692

Gain on debt modification

(3,889)

(3,889)

Business acquisition, integration and restructuring costs

2,309

5,285

19,537

9,368

Other expense, net

4,171

1,002

11,929

5,083

Income (loss) before income taxes

103,813

(902,490)

211,299

(725,439)

Income tax expense

30,168

26,253

59,158

72,584

Net income (loss) for the period

73,645

(928,743)

152,141

(798,023)

 

Other comprehensive income (loss), net of income taxes:





Items that may be reclassified subsequently to income (loss):





Unrealized foreign currency translation adjustment

395

177

515

607

Unrealized change in fair value of cash flow hedges

(12,905)

(459)

(27,651)

13,260


(12,510)

(282)

(27,136)

13,867

Items that will not be reclassified to income (loss):





Unrealized change in fair value of financial assets

(1,735)

(118)

(1,639)

(118)

Actuarial gain (loss) on post-retirement benefit plans

(9,766)

4,997

(10,942)

4,129


(11,501)

4,879

(12,581)

4,011

Other comprehensive income (loss), net of income taxes

(24,011)

4,597

(39,717)

17,878

Comprehensive income (loss) for the period

49,634

(924,146)

112,424

(780,145)

Net income (loss) attributable to:





Shareholders

66,378

(935,899)

133,137

(818,184)

Non-controlling interest

7,267

7,156

19,004

20,161


73,645

(928,743)

152,141

(798,023)

Comprehensive income (loss) attributable to:





Shareholders

42,367

(931,302)

93,420

(800,306)

Non-controlling interest

7,267

7,156

19,004

20,161


49,634

(924,146)

112,424

(780,145)

Earnings (loss) per share attributable to shareholders:





Basic

$0.31

($4.49)

$0.63

($3.94)

Diluted

$0.31

($4.49)

$0.63

($3.94)

(1)

Net income attributable to shareholders as well as basic and diluted earnings per share for the three and nine months ended May 31, 2019 was impacted by a change in accounting estimate related to the useful life of the Company's television brand assets. Commencing September 1, 2018, the useful life of television brand assets was changed from indefinite life to lives ranging from three to 20 years. For the three and nine months ended May 31, 2019, this has resulted in an additional $16.7 million and $86.5 million, respectively, in amortization expense in the depreciation and amortization line within the Consolidated Statement of Income and Comprehensive Income, and reduced net income and comprehensive income attributable to shareholders, net of income taxes, by $12.3 million ($0.06 per share basic) and $63.6 million ($0.30 per share basic), respectively. Further discussion of this can be found in the Impact of New Accounting Policies and Changes in Estimates section of the Third Quarter 2019 Report to Shareholders.

 

 

 

 

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 

 

(unaudited - in thousands of Canadian dollars)

 

 

Share

capital

 

 

Contributed

surplus

 

 

Accumulated

deficit

 

Accumulated

other

comprehensive

income (loss)

 

Total equity

attributable

to

shareholders

 

 

Non-

controlling

interest

 

 

 

Total equity

As at August 31, 2018, as previously presented

 

2,330,477

 

12,119

 

(856,668)

 

36,460

 

1,522,388

 

154,415

 

1,676,803

IFRS 9 transitional adjustment (1)

9,396

9,396

9,396

IFRS 15 transitional adjustment (1)

1,985

1,985

1,985

Adjusted balance as at September 1, 2018

 

2,330,477

 

12,119

 

(854,683)

 

45,856

 

1,533,769

 

154,415

 

1,688,184

Comprehensive income (loss)

133,137

(39,717)

93,420

19,004

112,424

Dividends declared

(38,147)

(38,147)

(21,409)

(59,556)

Reduction of stated capital

(1,500,000)

1,500,000

Actuarial loss on post-retirement benefit plans

(10,942)

10,942

Share-based compensation expense

485

485

485

Divestiture of subsidiary with a non-controlling equity interest

(5,120)

(5,120)

As at May 31, 2019

830,477

1,512,604

(770,635)

17,081

1,589,527

146,890

1,736,417

 

 

 

(unaudited - in thousands of Canadian dollars)

 

 

 

Share capital

 

 

 

Contributed

surplus

 

Retained 

earnings

(accumulated

deficit)

 

Accumulated

other

comprehensive

income

 

Total equity

attributable

to shareholders

 

 

Non-

controlling

interest

 

 

 

Total equity

As at August 31, 2017

2,291,814

11,449

114,492

22,938

2,440,693

158,828

2,599,521

Comprehensive income (loss)

(818,184)

17,878

(800,306)

20,161

(780,145)

Dividends declared

(178,073)

(178,073)

(21,729)

(199,802)

Issuance of shares under dividend reinvestment plan

29,185

29,185

29,185

Issuance of shares under stock option plan

85

85

85

Actuarial gain on post- retirement benefit plans

4,129

(4,129)

Share-based compensation expense

507

507

507

Funding of equity interest

50

50

As at May 31, 2018

2,321,084

11,956

(877,636)

36,687

1,492,091

157,310

1,649,401


(1)

Refer to the Company's Third Quarter 2019 Report to Shareholders for details on New Accounting Pronouncements Adopted in Fiscal 2019 in the Impact of New Accounting Policies and Changes in Estimates section.

          

                                


CORUS ENTERTAINMENT INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS











 

Three months ended 

 

Nine months ended



May 31,


May 31,

(unaudited - in thousands of Canadian dollars)

2019

2018

2019

2018

OPERATING ACTIVITIES





Net income (loss) for the period

73,645

(928,743)

152,141

(798,023)

Adjustments to reconcile net income (loss) to cash flow from operations:





Amortization of program rights

137,002

134,259

394,130

393,334

Amortization of film investments

6,059

4,362

12,444

10,217

Depreciation and amortization

35,899

20,432

145,028

62,022

Broadcast license and goodwill impairment

1,013,692

1,013,692

Deferred income taxes (recovery)

821

11,641

(19,126)

11,739

Impairment of investment in associate

8,720

Share-based compensation expense

238

151

485

507

Imputed interest

10,325

10,452

31,990

33,330

Gain on debt modification

(3,889)

(3,889)

Proceeds from termination of interest rate swap

24,644

Payment of program rights

(157,264)

(133,073)

(394,068)

(371,442)

Net spend on film investments

(14,847)

(10,646)

(43,232)

(30,927)

CRTC benefit payments

(312)

(376)

(1,223)

(1,273)

Other

(2,893)

(2,546)

(6,701)

(5,274)

Cash flow from operations

84,784

119,605

276,699

342,546

Net change in non-cash working capital balances related to operations

12,039

(26,658)

(48,185)

(77,420)

Cash provided by operating activities

96,823

92,947

228,514

265,126

INVESTING ACTIVITIES





Additions to property, plant and equipment

(5,418)

(2,338)

(11,578)

(7,297)

Proceeds from sale of property

545

Business divestiture, net of divested cash

12,529

12,529

Business acquisition

(6,011)

(6,011)

Net cash flows for intangibles, investments and other assets

(1,156)

(3,763)

(3,670)

(7,442)

Cash used in investing activities

(56)

(6,101)

(8,730)

(14,194)

FINANCING ACTIVITIES





Decrease in bank loans

(72,425)

(26,724)

(189,973)

(81,451)

Deferred financing costs

(3,342)

(3,342)

(4,088)

Issuance of shares under stock option plan

85

Dividends paid

(12,715)

(48,853)

(25,432)

(148,220)

Dividends paid to non-controlling interest

(6,245)

(5,541)

(23,408)

(21,729)

Other

(469)

(444)

(3,209)

(3,530)

Cash used in financing activities

(95,196)

(81,562)

(245,364)

(258,933)

Net change in cash and cash equivalents during the period

1,571

5,284

(25,580)

(8,001)

Cash and cash equivalents, beginning of the period

67,650

80,416

94,801

93,701

Cash and cash equivalents, end of the period

69,221

85,700

69,221

85,700

 

 

CORUS ENTERTAINMENT INC.





BUSINESS SEGMENT INFORMATION





 

(unaudited - in thousands of Canadian dollars)





Three months ended May 31, 2019






Television

Radio

Corporate

Consolidated

Revenues

421,481

36,936

458,417

Direct cost of sales, general and administrative expenses

254,831

27,168

5,895

287,894

Segment profit (loss)(1)

166,650

9,768

(5,895)

170,523

Depreciation and amortization




35,899

Interest expense




28,220

Gain on debt modification




(3,889)

Business acquisition, integration and restructuring costs




2,309

Other expense, net




4,171

Income before income taxes




103,813

 

Three months ended May 31, 2018






Television

Radio

Corporate

Consolidated

Revenues

402,990

38,420

441,410

Direct cost of sales, general and administrative expenses

242,187

26,973

1,829

270,989

Segment profit (loss)(1)

160,803

11,447

(1,829)

170,421

Depreciation and amortization




20,432

Interest expense




32,500

Broadcast license and goodwill impairment




1,013,692

Business acquisition, integration and restructuring costs




5,285

Other expense, net




1,002

Loss before income taxes




(902,490)

 

Nine months ended May 31, 2019






Television

Radio

Corporate

Consolidated

Revenues

1,201,137

108,866

1,310,003

Direct cost of sales, general and administrative expenses

736,225

81,131

17,338

834,694

Segment profit (loss)(1)

464,912

27,735

(17,338)

475,309

Depreciation and amortization




145,028

Interest expense




91,405

Gain on debt modification




(3,889)

Business acquisition, integration and restructuring costs




19,537

Other expense, net




11,929

Income before income taxes




211,299


(1)

Segment profit (loss) does not have a standardized meaning prescribed by IFRS.  For definitions and explanations, see discussion under the Key Performance Indicators section of the Third Quarter 2019 Report to Shareholders.

 

 

(unaudited - in thousands of Canadian dollars)





Nine months ended May 31, 2018






Television

Radio

Corporate

Consolidated

Revenues

1,154,676

113,587

1,268,263

Direct cost of sales, general and administrative expenses

721,625

81,736

3,835

807,196

Segment profit (loss)(1)

433,051

31,851

(3,835)

461,067

Depreciation and amortization




62,022

Interest expense




96,341

Broadcast license and goodwill impairment




1,013,692

Business acquisition, integration and restructuring costs




9,368

Other expense, net




5,083

Loss before income taxes




(725,439)


(1)

Segment profit (loss) does not have a standardized meaning prescribed by IFRS.  For definitions and explanations, see discussion under the Key Performance Indicators section of the Third Quarter 2019 Report to Shareholders.


 

           












 

Three months ended 

 

Nine months ended



May 31, 


May 31,

(unaudited - in thousands of Canadian dollars)

2019

2018

2019

2018

Advertising

314,162

291,040

875,781

824,914

Subscriber fees

121,096

126,164

373,419

379,427

Merchandising, distribution and other

23,159

24,206

60,803

63,922


458,417

441,410

1,310,003

1,268,263

 

                                                                                          






NON-IFRS FINANCIAL MEASURES






 

Three months ended 

 

Nine months ended

(unaudited - in thousands of Canadian dollars, except per share amounts) 


May 31,  


May 31,

Adjusted Net Income Attributable to Shareholders

2019

2018

2019

2018

Net income (loss) attributable to shareholders

66,378

(935,899)

133,137

(818,184)

Adjustments, net of income tax:





Impairment of investment in associates

7,565

Broadcast license and goodwill impairment charges

1,010,061

1,010,061

Gain on debt modification

(2,856)

(2,856)

Loss from disposition of the Telelatino Network

814

814

Business acquisition, integration and restructuring costs

1,741

3,950

14,417

7,000

Adjusted net income attributable to shareholders

66,077

78,112

153,077

198,877

Basic earnings (loss) per share

$0.31

($4.49)

$0.63

($3.94)

Adjustments, net of income tax:





Impairment of investment in associates

$0.03

Broadcast license and goodwill impairment charges

$4.84

$4.87

Gain on debt modification

($0.01)

($0.01)

Loss from disposition of the Telelatino Network

Business acquisition, integration and restructuring costs

$0.01

$0.02

$0.07

$0.03

Adjusted basic earnings per share

$0.31

$0.37

$0.72

$0.96


            

                                                                                                                                 







 

Three months ended

 

Nine months ended

(unaudited - in thousands of Canadian dollars)  


May 31,


May 31,

Free Cash Flow

2019

2018

2019

2018

Cash provided by (used in):





Operating activities

96,823

92,947

228,514

265,126

Investing activities

(56)

(6,101)

(8,730)

(14,194)


96,767

86,846

219,784

250,932

Add: cash used in business acquisitions and strategic investments (1)

5,863

907

9,161

2,109

Deduct: cash provided by business divestiture, net of divested cash (2)

(12,529)

(12,529)

Free cash flow

90,101

87,753

216,416

253,041

(1)

Strategic investments are comprised of investments in venture funds and associated companies

(2)

Disposition of the Telelatino Network

 

Cision

View original content:http://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2019-third-quarter-results-300875209.html

SOURCE Corus Entertainment Inc.


View original content: http://www.newswire.ca/en/releases/archive/June2019/26/c8081.html