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Corus Entertainment Announces Fiscal 2019 Fourth Quarter and Year End Results

  • Consolidated revenues were consistent for the quarter and increased 2% for the year, driven by continued strong performance in Television advertising revenues, up 4% for the quarter and 7% for the year
  • Consolidated segment profit(1) was down 4% for the quarter and up 2% for the year
  • Consolidated segment profit margin(1) of 29% for the quarter and 35% for the year
  • Net income attributable to shareholders of $22.9 million ($0.11 per share basic) for the quarter and $156.1 million ($0.74 per share basic) for the year
  • Net debt to segment profit(1) leverage down to 2.82 times, in part due to debt repayments of $249.9 million
  • Free cash flow(1) of $93.6 million for the quarter and $310.0 million for the year

 

TORONTO, Oct. 18, 2019 /CNW/ - Corus Entertainment Inc. (TSX:CJR-B.TO - News) announced its fourth quarter and year end financial results today.

"Our strong performance in fiscal 2019 reflects the disciplined execution of our strategy to optimize our core business and build for the future. Corus delivered both record annual consolidated revenue and segment profit, driven by strong growth in Television advertising in every quarter," said Doug Murphy, President and Chief Executive Officer. "Our focus on providing great content to audiences across multiple platforms and our client-centric, data-driven selling approach is yielding impressive results. Additionally we ramped up our slate of owned content in the year, which will further accelerate our long-term revenue diversification objectives through increased sales in the global content marketplace. The purposeful combination of targeted investments and the significant progress we are making towards our leverage goals are building a stronger, more resilient Corus. We are excited to build on the momentum in the coming year."

Financial Highlights


Three months ended

Year ended


August 31,

August 31,

(in thousands of Canadian dollars except per share amounts)

2019

2018

2019

2018

Revenues





Television

343,755

344,646

1,544,892

1,499,322

Radio

33,724

34,438

142,590

148,025


377,479

379,084

1,687,482

1,647,347

Segment profit (1)





Television

108,612

108,738

573,524

541,789

Radio

6,911

8,457

34,646

40,308

Corporate

(5,747)

(2,634)

(23,085)

(6,469)


109,776

114,561

585,085

575,628

Net income (loss) attributable to shareholders

22,947

33,675

156,084

(784,509)

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

27,930

39,534

181,006

238,411

Basic earnings (loss) per share

$0.11

$0.16

$0.74

($3.77)

Adjusted basic earnings per share (1) (2)

$0.13

$0.19

$0.85

$1.14

Diluted earnings (loss) per share (2)

$0.11

$0.16

$0.74

($3.77)

Free cash flow (1)

93,554

95,966

309,970

349,007



(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 Fourth Quarter 2019
Report to Shareholders.



(2)

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 August 31, 2019 were $377.5 million, consistent with $379.1 million last year, and consolidated segment profit was $109.8 million, a decrease of 4% from $114.6 million last year. Net income attributable to shareholders for the quarter ended August 31, 2019 was $22.9 million ($0.11 per share basic), as compared to $33.7 million ($0.16 per share basic) last year. Net income attributable to shareholders for the fourth quarter of fiscal 2019 includes business acquisition, integration and restructuring costs of $6.8 million ($0.02 per share, net of income taxes). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $27.9 million ($0.13 per share basic) for the quarter. Net income attributable to shareholders for the prior year quarter includes business acquisition, integration and restructuring costs of $7.7 million ($0.03 per share, net of income taxes). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $39.5 million ($0.19 per share basic) for the prior year quarter.

Consolidated revenues for the year ended August 31, 2019 were $1,687.5 million, up 2% from $1,647.3 million last year, and consolidated segment profit was $585.1 million, an increase of 2% from $575.6 million last year. Net income attributable to shareholders for the year ended August 31, 2019 was $156.1 million ($0.74 per share basic), as compared to a net loss attributable to shareholders of $784.5 million ($3.77 loss per share basic) last year. Net income attributable to shareholders for the year ended August 31, 2019 includes business acquisition, integration and restructuring costs of $26.3 million ($0.09 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 $181.0 million ($0.85 per share basic, net of income taxes) for the current fiscal year. Net loss attributable to shareholders for the year ended August 31, 2018 includes broadcast license and goodwill impairment charges of $1.0 billion ($4.85 per share basic, net of income taxes), and business acquisition, integration and restructuring costs of $17.1 million ($0.06 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $238.4 million ($1.14 per share basic) for the prior fiscal year.

Consolidated net income attributable to shareholders as well as basic and diluted earnings per share for the three months and year ended August 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 months and year ended August 31, 2019, this has resulted in an additional $16.7 million and $103.2 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 $75.9 million ($0.36 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 Fourth Quarter 2019 Report to Shareholders.

Operational Results - Highlights for Q4 2019 Television

  • Segment revenues were flat in Q4 2019 and increased 3% for the year
  • Advertising revenues increased 4% in Q4 2019 and 7% for the year
  • Subscriber revenues were down 4% in Q4 2019 and 2% for the year
  • Merchandising, distribution and other revenues were down $3.5 million in Q4 2019 and $6.7 million for the year
  • Segment profit(1) was flat in Q4 2019 and increased 6% for the year
  • Segment profit margin(1) of 32% in Q4 2019 and 37% for the year, compared to 32% and 36%, respectively, in the prior year


Radio

  • Segment revenues decreased 2% in Q4 2019 and 4% for the year
  • Segment profit(1) decreased $1.5 million in Q4 2019 and $5.7 million for the year
  • Segment profit margin(1) of 20% in Q4 2019 and 24% for the year, compared to 25% and 27%, 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
Fourth Quarter 2019 Report to Shareholders.


 

Corporate

  • Free cash flow(1) of $93.6 million in Q4 2019 and $310.0 million for the year, compared to $96.0 million and $349.0 million, respectively, in the prior year
  • Net debt to segment profit(1) leverage of 2.82 times at August 31, 2019, down from 3.28 times at August 31, 2018, in part due to debt repayments of $249.9 million for the year
  • Consolidated segment profit margin(1) of 29% in Q4 2019 and 35% for the year, compared to 30% and 35%, 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 Fourth 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 months and year ended August 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 October 18, 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 adjusted 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 fourth quarter ended August 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. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompass 35 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

(unaudited - in thousands of Canadian dollars)

As at August 31,
2019

As at August 31,
2018

ASSETS



Current



Cash and cash equivalents

82,568

94,801

Accounts receivable

372,828

388,751

Income taxes recoverable

13,772

3,305

Prepaid expenses and other assets

19,557

20,723

Total current assets

488,725

507,580

Tax credits receivable

25,035

18,047

Investments and other assets

51,707

82,213

Property, plant and equipment

225,927

231,192

Program rights

507,913

538,357

Film investments

53,336

43,424

Intangibles

1,876,235

2,012,086

Goodwill

1,383,958

1,387,652

Deferred income tax assets

59,463

62,403


4,672,299

4,882,954

LIABILITIES AND EQUITY



Current



Accounts payable and accrued liabilities

429,483

405,762

Current portion of long-term debt

76,339

106,375

Provisions

10,331

11,175

Total current liabilities

516,153

523,312

 

Long-term debt

 

1,655,406

 

1,877,558

Other long-term liabilities

278,117

295,206

Provisions

7,686

7,801

Deferred income tax liabilities

472,700

502,274

Total liabilities

2,930,062

3,206,151

 

EQUITY



Share capital

830,477

2,330,477

Contributed surplus

1,512,818

12,119

Accumulated deficit

(758,757)

(856,668)

Accumulated other comprehensive income

12,187

36,460

Total equity attributable to shareholders

1,596,725

1,522,388

Equity attributable to non-controlling interest

145,512

154,415

Total equity

1,742,237

1,676,803


4,672,299

4,882,954

 

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


Three months ended   

Year ended


August 31,  

August 31,

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

2019

2018

2019

2018

Revenues

377,479

379,084

1,687,482

1,647,347

Direct cost of sales, general and administrative expenses

267,703

264,523

1,102,397

1,071,719

Depreciation and amortization (1)

37,326

19,839

182,354

81,861

Interest expense

26,313

31,005

117,718

127,346

Broadcast license and goodwill impairment

1,013,692

Gain on debt modification

(3,889)

Business acquisition, integration and restructuring costs

6,779

7,703

26,316

17,071

Other expense (income), net

(1,455)

609

10,474

5,692

Income (loss) before income taxes

40,813

55,405

252,112

(670,034)

Income tax expense

12,287

15,545

71,445

88,129

Net income (loss) for the period

28,526

39,860

180,667

(758,163)






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





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





Unrealized foreign currency translation adjustment

(206)

117

309

724

Unrealized change in fair value of cash flow hedges

(3,887)

(344)

(31,538)

12,916


(4,093)

(227)

(31,229)

13,640

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





Unrealized change in fair value of financial assets

(801)

(2,440)

(118)

Actuarial gain (loss) on post-retirement benefit plans

1,647

7,421

(9,295)

11,550


846

7,421

(11,735)

11,432

Other comprehensive income (loss), net of income taxes

(3,247)

7,194

(42,964)

25,072

Comprehensive income (loss) for the period

25,279

47,054

137,703

(733,091)

Net income (loss) attributable to:





Shareholders

22,947

33,675

156,084

(784,509)

Non-controlling interest

5,579

6,185

24,583

26,346


28,526

39,860

180,667

(758,163)

Comprehensive income (loss) attributable to:





Shareholders

19,700

40,869

113,120

(759,437)

Non-controlling interest

5,579

6,185

24,583

26,346


25,279

47,054

137,703

(733,091)

Earnings (loss) per share attributable to shareholders:





Basic

$0.11

$0.16

$0.74

($3.77)

Diluted

$0.11

$0.16

$0.74

($3.77)



(1)

Net income attributable to shareholders as well as basic and diluted earnings per share for the three months and year ended August 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 months and year ended August 31, 2019, this has
resulted in an additional $16.7 million and $103.2 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 $75.9 million ($0.36 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 Fourth 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)

156,084

(42,964)

113,120

24,583

137,703

Dividends declared

(50,863)

(50,863)

(28,366)

(79,229)

Reduction of stated capital

(1,500,000)

1,500,000

Actuarial loss on post-retirement








benefit plans

(9,295)

9,295

Share-based compensation








expense

699

699

699

Divestiture of subsidiary with a








non-controlling equity interest

(5,120)

(5,120)

As at August 31, 2019

830,477

1,512,818

(758,757)

12,187

1,596,725

145,512

1,742,237









(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)

(784,509)

25,072

(759,437)

26,346

(733,091)

Dividends declared

(198,201)

(198,201)

(30,809)

(229,010)

Issuance of shares under








dividend reinvestment plan

38,578

38,578

38,578

Issuance of shares under stock








option plan

85

85

85

Actuarial gain on post-








retirement benefit plans

11,550

(11,550)

Share-based compensation








expense

670

670

670

Funding of equity interest

50

50

As at August 31, 2018

2,330,477

12,119

(856,668)

36,460

1,522,388

154,415

1,676,803



(1)

Refer to the Company's Fourth 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

Year ended


August 31,

August 31,

(unaudited - in thousands of Canadian dollars)

2019

2018

2019

2018

OPERATING ACTIVITIES





Net income (loss) for the period

28,526

39,860

180,667

(758,163)

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





Amortization of program rights

122,301

122,966

516,431

516,300

Amortization of film investments

3,591

5,980

16,035

16,197

Depreciation and amortization

37,326

19,839

182,354

81,861

Broadcast license and goodwill impairment

1,013,692

Deferred income taxes (recovery)

8,960

5,130

(10,166)

16,869

Impairment of investment in associate

8,720

Share-based compensation expense

214

163

699

670

Imputed interest

9,219

9,910

41,209

43,240

Gain on debt modification

(3,889)

Proceeds from termination of interest rate swap

24,644

Payment of program rights

(143,886)

(141,744)

(537,954)

(513,186)

Net spend on film investments

(1,797)

(2,795)

(45,029)

(33,722)

CRTC benefit payments

(1,338)

(1,059)

(2,561)

(2,332)

Other

780

(1,391)

(5,921)

(6,665)

Cash flow from operations

63,896

56,859

340,595

399,405

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

51,143

48,922

2,958

(28,498)

Cash provided by operating activities

115,039

105,781

343,553

370,907

INVESTING ACTIVITIES





Additions to property, plant and equipment

(18,477)

(8,820)

(30,055)

(16,117)

Proceeds from sale of property

300

845

Business divestiture, net of divested cash

12,529

Business acquisition

(6,011)

Net cash flows for intangibles, investments and other assets

(3,008)

(2,866)

(6,678)

(10,308)

Cash used in investing activities

(21,485)

(11,386)

(30,215)

(25,580)

FINANCING ACTIVITIES





Decrease in bank loans

(59,976)

(27,188)

(249,949)

(108,639)

Deferred financing costs

(98)

(3,440)

(4,088)

Issuance of shares under stock option plan

85

Dividends paid

(12,718)

(50,588)

(38,150)

(198,808)

Dividends paid to non-controlling interest

(6,957)

(7,080)

(30,365)

(28,809)

Other

(458)

(438)

(3,667)

(3,968)

Cash used in financing activities

(80,207)

(85,294)

(325,571)

(344,227)

Net change in cash and cash equivalents during the period

13,347

9,101

(12,233)

1,100

Cash and cash equivalents, beginning of the period

69,221

85,700

94,801

93,701

Cash and cash equivalents, end of the period

82,568

94,801

82,568

94,801


CORUS ENTERTAINMENT INC.
BUSINESS SEGMENT INFORMATION

(unaudited - in thousands of Canadian dollars)





Three months ended August 31, 2019






Television

Radio

Corporate

Consolidated

Revenues

343,755

33,724

377,479

Direct cost of sales, general and administrative expenses

235,143

26,813

5,747

267,703

Segment profit (loss)(1)

108,612

6,911

(5,747)

109,776

Depreciation and amortization




37,326

Interest expense




26,313

Business acquisition, integration and restructuring costs




6,779

Other income, net




(1,455)

Income before income taxes




40,813






Three months ended August 31, 2018






Television

Radio

Corporate

Consolidated

Revenues

344,646

34,438

379,084

Direct cost of sales, general and administrative expenses

235,908

25,981

2,634

264,523

Segment profit (loss)(1)

108,738

8,457

(2,634)

114,561

Depreciation and amortization




19,839

Interest expense




31,005

Business acquisition, integration and restructuring costs




7,703

Other expense, net




609

Income before income taxes




55,405






Year ended August 31, 2019






Television

Radio

Corporate

Consolidated

Revenues

1,544,892

142,590

1,687,482

Direct cost of sales, general and administrative expenses

971,368

107,944

23,085

1,102,397

Segment profit (loss)(1)

573,524

34,646

(23,085)

585,085

Depreciation and amortization




182,354

Interest expense




117,718

Gain on debt modification




(3,889)

Business acquisition, integration and restructuring costs




26,316

Other expense, net




10,474

Income before income taxes




252,112



(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 Fourth Quarter 2019 Report to Shareholders.


 

(unaudited - in thousands of Canadian dollars)





Year ended August 31, 2018
















Television

Radio

Corporate

Consolidated

Revenues

1,499,322

148,025

1,647,347

Direct cost of sales, general and administrative expenses

957,533

107,717

6,469

1,071,719

Segment profit (loss)(1)

541,789

40,308

(6,469)

575,628

Depreciation and amortization




81,861

Interest expense




127,346

Broadcast license and goodwill impairment




1,013,692

Business acquisition, integration and restructuring costs




17,071

Other expense, net




5,692

Loss before income taxes




(670,034)



(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 Fourth Quarter 2019 Report to Shareholders.

 

REVENUES BY TYPE


Three months ended

Year ended



August 31,


August 31,

(unaudited - in thousands of Canadian dollars)

2019

2018

2019

2018

Advertising

226,033

218,896

1,101,814

1,043,810

Subscriber fees

123,028

128,329

496,447

507,756

Merchandising, distribution and other

28,418

31,859

89,221

95,781


377,479

379,084

1,687,482

1,647,347

 


NON-IFRS FINANCIAL
MEASURES
                                                                    


Three months ended

Year ended

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


August 31,


 August 31,

Adjusted Net Income Attributable to Shareholders

2019

2018

2019

2018

Net income (loss) attributable to shareholders

22,947

33,675

156,084

(784,509)

Adjustments, net of income tax:





Impairment of investment in associates

7,565

Broadcast license and goodwill impairment charges

1,010,061

Gain on debt modification

(2,856)

Loss from disposition of the Telelatino Network

814

Business acquisition, integration and restructuring costs

4,983

5,859

19,399

12,859

Adjusted net income attributable to shareholders

27,930

39,534

181,006

238,411

Basic earnings (loss) per share

$0.11

$0.16

$0.74

($3.77)

Adjustments, net of income tax:





Impairment of investment in associates

$0.03

Broadcast license and goodwill impairment charges

$4.85

Gain on debt modification

($0.01)

Loss from disposition of the Telelatino Network

Business acquisition, integration and restructuring costs

$0.02

$0.03

$0.09

$0.06

Adjusted basic earnings per share

$0.13

$0.19

$0.85

$1.14


                                                                                                                                                                                                 

(unaudited - in thousands of Canadian dollars)  

Three months ended

Year ended


August 31, 

  August 31,

Free Cash Flow

2019

2018

2019

2018

Cash provided by (used in):





Operating activities

115,039

105,781

343,553

370,907

Investing activities

(21,485)

(11,386)

(30,215)

(25,580)


93,554

94,395

313,338

345,327

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

1,571

9,161

3,680

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

(12,529)

Free cash flow

93,554

95,966

309,970

349,007



(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-fourth-quarter-and-year-end-results-300941065.html

SOURCE Corus Entertainment Inc.


View original content: http://www.newswire.ca/en/releases/archive/October2019/18/c2357.html