Corus Entertainment Announces Fiscal 2017 Fourth Quarter and Year End Results

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Corus Entertainment Announces Fiscal 2017 Fourth Quarter and Year End Results

PR Newswire

  • Free cash flow(1) of $292.7 million for the year, up 55% from $188.2 million last year
  • Consolidated revenues decreased 1% for the quarter and increased 43% for the year [down 2% on a pro forma basis for the year(1)]
  • Consolidated segment profit(1) growth of 2% for the quarter and 41% for the year [up 4% on a pro forma basis for the year(1)]
  • Consolidated segment profit margin(1) of 28% for the quarter and 34% for the year
  • Net income attributable to shareholders of $28.9 million ($0.14 per share basic) for the quarter and $191.7 million ($0.95 per share basic) for the year
  • Adjusted basic earnings per share(1)(2) of $0.22 per share for the quarter and $1.10 per share for the year

TORONTO, Oct. 18, 2017 /PRNewswire/ - Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year-end financial results today.

"We accomplished a great deal this year, delivering enhanced profitability, sequential improvement in TV advertising revenues, strong free cash flow and continued advancement of our strategic priorities", said Doug Murphy, President and Chief Executive Officer. "With our integration now complete, our entry into a new broadcast year marks a renewed focus on returning Corus to growth. We are well positioned to achieve our long-term goals, supported by our strategic investments in content and advertising technology (Ad Tech), an improved cost structure and solid execution on our financial objectives."

Financial Highlights







Three months ended


Year ended



August 31,


August 31,

(in thousands of Canadian dollars except per share amounts)

2017

2016

2017

2016

Revenues






Television

346,008

347,283

1,529,792

1,015,609


Radio

35,204

37,184

149,216

155,705


381,212

384,467

1,679,008

1,171,314

Segment profit (2)






Television                                                                     

107,253

106,817

564,367

404,225


Radio

8,302

8,509

39,527

36,159


Corporate

(7,954)

(9,955)

(25,811)

(29,370)


107,601

105,371

578,083

411,014

Net income attributable to shareholders

28,919

25

191,665

125,931

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

43,944

14,535

220,488

129,033

Basic earnings per share

$0.14

$0.00

$0.95

$0.96

Adjusted basic earnings per share(1) (2)

$0.22

$0.07

$1.10

$0.98

Diluted earnings per share

$0.14

$0.00

$0.95

$0.96

Free cash flow (1)

80,202

61,397

292,660

188,165

(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 and explanations, see discussion under the Key Performance Indicators section of the Fourth Quarter 2017 Report to Shareholders. Pro forma results include Shaw Media and exclude Pay TV for the full year ended August 31, 2016.

(2)

Refer to page 11 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, 2017 were $381.2 million, a decrease of 1% from $384.5 million last year and consolidated segment profit was $107.6 million, up 2% from $105.4 million last year. Net income attributable to shareholders for the quarter ended August 31, 2017 was $28.9 million ($0.14 per share basic and diluted), as compared to $nil ($nil per share basic and diluted) last year. Net income attributable to shareholders for the fourth quarter of fiscal 2017 includes business acquisition, integration and restructuring costs of $13.3 million ($0.05 per share) and investment impairments of $5.3 million ($0.03 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $43.9 million ($0.22 per share basic) in the quarter. Net income attributable to shareholders for the prior year quarter includes business acquisition, integration and restructuring costs of $19.6 million ($0.07 per share). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $14.5 million ($0.07 per share basic) for the prior year quarter.

Consolidated revenues for the year ended August 31, 2017 were $1,679.0 million, up 43% from $1,171.3 million last year and consolidated segment profit was $578.1 million, up 41% from $411.0 million last year. Net income attributable to shareholders for the year ended August 31, 2017 was $191.7 million ($0.95 per share), compared to $125.9 million ($0.96 per share) last year. Net income attributable to shareholders for the year ended August 31, 2017, includes business acquisition, integration and restructuring costs of $32.0 million ($0.12 per share) and investment impairments of $5.3 million ($0.03 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $220.5 million ($1.10 per share basic) for the current fiscal year. Net income attributable to shareholders for the year ended August 31, 2016 includes business acquisition, integration and restructuring costs of $57.2 million ($0.35 per share), debt refinancing costs of $61.2 million ($0.34 per share), a gain relating to the discontinuation of the Pay Television business and the disposal of certain assets of $86.2 million ($0.58 per share), and excludes amortization of disposed of Pay Television program and film rights of $15.6 million ($0.09 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $129.0 million ($0.98 per share) for the prior fiscal year.

Commencing April 1, 2016, 100% of the operating results of Shaw Media Inc. ("Shaw Media"), as well as its assets and liabilities, were fully consolidated as a business combination in accordance with IFRS 3 - Business Combinations and, as a result, Shaw Media was accounted for by applying the acquisition method as of that date. Shaw Media was reported as part of the Television segment as of April 1, 2016 (further discussion is provided in note 27 of the Company's audited annual consolidated financial statements for the year ended August 31, 2016, filed on SEDAR).

In addition, for fiscal 2016, certain of Corus' Pay Television business' ("Pay TV") assets and liabilities were reclassified as held for disposal effective November 19, 2015 as a consequence of meeting the definition of assets held for sale under IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations. The disposal group, Pay TV, did not qualify for discontinued operations presentation and as a result, its operating results remained in continuing operations in the consolidated statement of income and comprehensive income for the year ended August 31, 2016. However, intangible assets classified as held for disposal ceased being amortized effective November 19, 2015 and as a consequence, amortization of program and film rights in the Television segment for the year ended August 31, 2016 was lower by $15.6 million, than it would have been had amortization on these assets not ceased. On February 29, 2016, the Pay TV disposition was completed and the related proceeds and a gain associated with this disposal group was recognized (further discussion is provided in note 27 of the Company's audited annual consolidated financial statements for the year ended August 31, 2016, filed on SEDAR at www.sedar.com).

These transactions contributed to the significant year-over-year variances in the consolidated operating results for the year ended August 31, 2017, as the prior year includes the operating results of the Pay TV business up to the end of the second quarter of fiscal 2016 and only includes the operating results of Shaw Media for the last five months of fiscal 2016. In the year ended August 31, 2016, Shaw Media generated revenues and segment profit of $1,017.8 million and $293.2 million, respectively, while Pay TV generated revenues and segment profit of $67.8 million and $49.3 million, respectively. On a pro forma basis, including Shaw Media and excluding Pay TV for the year ended August 31, 2016, total revenues declined 2%, while segment profit increased 4% from the prior year. Segment profit margin of 34% for the year ended August 31, 2017 was up from 35% in the prior year (as reported) and up from 32% on a pro forma basis.

Operational Results - Highlights

Television

  • Segment revenues were flat in Q4 2017 and increased 51% for the year [down 2% on a pro forma basis(1) for the year]
  • Advertising revenues increased 1% in Q4 2017 and 82% for the year [down 3% on a pro forma basis(1) for the year]
  • Subscriber revenues decreased 1% in Q4 2017 and increased 25% for the year [up 3% on a pro forma basis(1) for the year]
  • Merchandising, distribution and other revenues decreased 10% in Q4 2017 and 12% for the year [down 14% on a pro forma basis(1) for the year]
  • Segment profit(2) was flat in Q4 2017 and increased 40% for the year [up 3% on a pro forma basis(1) for the year]
  • Segment profit margin(2) of 31% in Q4 2017 and 37% for the year, compared to 31% and 40%, respectively, in the prior year comparable periods [35% for the year on a pro forma basis(1)]

Radio

  • Segment revenues were down 5% in Q4 2017 and 4% for the year
  • Advertising revenues were down 5% in Q4 2017 and 4% for the year
  • Segment profit(2) decreased 2% in Q4 2017 and increased 9% for the year
  • Segment profit margin(2) of 24% in Q4 2017 and 26% for the year, compared to 23% in both of the prior year comparable periods

Corporate

  • Net debt to segment profit(2) leverage reduced to 3.46 times, in line with deleverage target for Fiscal 2017
  • Consolidated segment profit margin expansion in Q4 to 28%, up from 27% in the prior year
  • Free cash flow(2) of $292.7 million for the year, up from $188.2 million in the prior year
  • Successfully captured annualized cost synergies in excess of target of $40 to $50 million

(1)

Pro forma results reflect the inclusion of Shaw Media and the exclusion of Pay TV for the full year ended August 31, 2016

(2)

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 discussion under the Key Performance Indicators section of the 2017 Report to Shareholders.

 

Corus Entertainment Inc. reports in Canadian dollars.

The unaudited consolidated financial statements and accompanying notes for the three months and year ended August 31, 2017 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, 2017 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 1.416.981.9006 and for North America is 1.800.901.3958. 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, 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.


Caution Concerning Forward-Looking Statements

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, "for- ward-looking statements"). 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 the words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Although Corus believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, including without limitation factors and assumptions regarding advertising, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business; and changes in accounting standards. Additional information about these factors and about the material assumptions underlying such forward-looking statements may be found in our Annual Information Form. Corus cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Corus, investors and other should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

About Corus Entertainment Inc.

Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that creates and delivers high quality brands and content across platforms for audiences around the world. The company's portfolio of multimedia offerings encompasses 45 specialty television services, 39 radio stations, 15 conventional television stations, a global content business, digital assets, live events, children's book publishing, animation software, technology and media services. The Corus roster of premium brands include Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, HISTORY®, Showcase, National Geographic, Q107, CKNW, Fresh Radio, Disney Channel Canada, YTV and Nickelodeon Canada. Visit Corus at www.corusent.com.

CORUS ENTERTAINMENT INC.


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION



(unaudited - in thousands of Canadian dollars)

As at August 31,
2017

As at August 31,
2016

ASSETS



Current



Cash and cash equivalents

93,701

71,363

Accounts receivable

408,443

379,861

Income taxes recoverable

1,388

Prepaid expenses and other assets

21,870

18,835

Total current assets

525,402

470,059

Tax credits receivable

18,172

19,860

Investments and other assets

64,559

46,759

Property, plant and equipment

260,068

282,105

Program rights

648,346

682,268

Film investments

40,728

45,164

Intangibles

2,045,813

2,076,237

Goodwill

2,387,652

2,390,652

Deferred income tax assets

77,104

80,281


6,067,844

6,093,385

 

LIABILITIES AND SHAREHOLDERS' EQUITY



Current



Accounts payable and accrued liabilities

415,661

393,367

Current portion of long-term debt

172,500

115,000

Provisions

15,791

21,390

Income taxes payable

1,982

Total current liabilities

603,952

531,739

 

Long-term debt

 

1,919,080

 

2,081,020

Other long-term liabilities

442,349

530,767

Provisions

11,707

8,905

Deferred income tax liabilities

491,235

464,607

Total liabilities

3,468,323

3,617,038

 

SHAREHOLDERS' EQUITY



Share capital

2,291,814

2,168,543

Contributed surplus

11,449

10,444

Retained earnings

114,492

142,499

Accumulated other comprehensive income (loss)

22,938

(3,569)

Total equity attributable to shareholders

2,440,693

2,317,917

Equity attributable to non-controlling interest

158,828

158,430

Total shareholders' equity

2,599,521

2,476,347


6,067,844

6,093,385


                           

CORUS ENTERTAINMENT INC.




CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME











Three months ended

August 31,

Year ended


August 31,






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

2017

2016

2017

2016

Revenues

381,212

384,467

1,679,008

1,171,314

Direct cost of sales, general and administrative expenses

273,611

279,096

1,100,925

760,300

Depreciation and amortization

22,807

33,585

91,750

73,969

Interest expense

38,121

39,788

156,716

110,862

Debt refinancing

61,248

Business acquisition, integration and restructuring costs

13,265

19,559

31,983

57,198

Gain on disposition

(86,151)

Other expense (income), net

(16,474)

1,716

(8,953)

8,752

Income before income taxes

49,882

10,723

306,587

185,136

Income tax expense

14,168

2,218

82,498

41,575

Net income for the period

35,714

8,505

224,089

143,561






Net income attributable to:






Shareholders

28,919

25

191,665

125,931


Non-controlling interest

6,795

8,480

32,424

17,630


35,714

8,505

224,089

143,561






Earnings per share attributable to shareholders:






Basic

$0.14

$0.00

$0.95

$0.96


Diluted

$0.14

$0.00

$0.95

$0.96






Net income for the period

35,714

8,505

224,089

143,561






Other comprehensive income (loss), net of income taxes:
Items that may be reclassified subsequently to income:






Unrealized foreign currency translation adjustment

(1,047)

12

(643)

(49)


Unrealized change in fair value of available-for-sale investments

(27)

(610)

(298)

(620)


Unrealized change in fair value of cash flow hedges

17,385

(5,045)

27,448

(10,253)


Actuarial gain (loss) on employee post-employment benefits

(2,435)

(5,459)

6,874

(3,489)


13,876

(11,102)

33,381

(14,411)

Comprehensive income (loss) for the period

49,590

(2,597)

257,470

129,150






Comprehensive income (loss) attributable to:






Shareholders

42,795

(11,077)

225,046

111,520


Non-controlling interest

6,795

8,480

32,424

17,630


49,590

(2,597)

257,470

129,150


 

CORUS ENTERTAINMENT INC.








CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY














(unaudited - in thousands of Canadian dollars)

Share
capital

Contributed
surplus

Retained
earnings

Accumulated
other
comprehensive
income (loss)

Total equity
attributable to
shareholders

Non-
controlling
interest

Total
equity

At August 31, 2016

2,168,543

10,444

142,499

(3,569)

2,317,917

158,430

2,476,347

Comprehensive income

191,665

33,381

225,046

32,424

257,470

Dividends declared

(231,046)

(231,046)

(35,026)

(266,072)

Issuance of shares under stock option plan

154

154

154

Issuance of shares under dividend reinvestment plan

123,117

123,117

123,117

Actuarial gain on post-retirement benefit plans

6,874

(6,874)

Share-based compensation expense

1,005

1,005

1,005

Reallocation of equity interest

4,500

4,500

3,000

7,500

At August 31, 2017

2,291,814

11,449

114,492

22,938

2,440,693

158,828

2,599,521





 

Accumulated
other

 

 

Total equity

 

 

Non-



Share

Contributed

Retained

comprehensive

attributable to

controlling

Total

(unaudited - in thousands of Canadian dollars)

capital

surplus

earnings

income (loss)

shareholders

interest

equity

At August 31, 2015

994,571

9,471

191,182

7,353

1,202,577

17,334

1,219,911

Comprehensive income

125,931

(14,411)

111,520

17,630

129,150

Dividends declared

(171,125)

(171,125)

(19,824)

(190,949)

Issuance of shares under public equity offering

279,762

279,762

279,762

Issuance of shares to related party

833,541

833,541

833,541

Existing non-controlling ownership interest from acquisition

143,290

143,290

Issuance of shares under dividend reinvestment plan

60,669

60,669

60,669

Actuarial gain on post-retirement benefit plans

(3,489)

3,489

Share-based compensation expense

973

973

973

At August 31, 2016

2,168,543

10,444

142,499

(3,569)

2,317,917

158,430

2,476,347

 

CORUS ENTERTAINMENT INC.





CONSOLIDATED STATEMENTS OF CASH FLOWS











Three months ended

Year ended


August 31,

August 31,

(unaudited - in thousands of Canadian dollars)

2017

2016

2017

2016

OPERATING ACTIVITIES





Net income for the period

35,714

8,505

224,089

143,561

Adjustments to reconcile net income to cash flow from operations:






Amortization of program rights

119,707

114,514

510,716

313,300


Amortization of film investments 

7,181

8,800

23,958

22,690


Depreciation and amortization

22,807

33,585

91,750

73,969


Deferred income taxes

1,311

(197)

17,109

(22,554)


Intangible and other assets impairment (recovery)

5,250

(822)

5,250

(822)


Share-based compensation expense

373

304

1,005

973


Imputed interest

12,324

12,523

51,519

45,429


Debt refinancing costs

61,248


Gain on disposition

(86,151)


Payment of program rights

(134,060)

(129,067)

(509,979)

(344,855)


Net additions to film investments

(7,045)

2,086

(24,579)

(29,616)


CRTC benefit payment

(12,159)

(17,213)

(29,740)

(25,740)


Other

734

1,423

2,969

5,566

Cash flow from operations

52,137

34,441

364,067

156,998

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

36,977

38,572

(65,934)

43,229

Cash provided by operating activities

89,114

73,013

298,133

200,227

 

INVESTING ACTIVITIES





Additions to property, plant and equipment

(13,422)

(11,594)

(26,989)

(22,550)

Net proceeds from disposition

209,474

Business combinations, net of acquired cash

11,871

3,000

(1,827,452)

Proceeds from disposition of non-controlling interest

5,250

Proceeds from disposition of investment

4,122

4,122

1,684

Net cash flows for intangibles, investments and other assets

(1,550)

(8,352)

(6,291)

(19,583)

Cash used in investing activities

(10,850)

(8,075)

(20,908)

(1,658,427)

 

FINANCING ACTIVITIES





Increase (decrease) in bank loans

(25,090)

(28,086)

(110,706)

1,959,209

Redemption of notes

(550,000)

Debt refinancing costs

(55,671)

Financing fees

(23,595)

Share subscription, net of issuance costs

276,529

Issuance of shares under stock option plan

154

154

Dividends paid

(27,462)

(25,133)

(106,062)

(89,702)

Dividends paid to non-controlling interest

(7,901)

(6,822)

(35,026)

(19,824)

Other

(2,275)

(1,171)

(3,247)

(4,805)

Cash provided by (used in) financing activities

(62,574)

(61,212)

(254,887)

1,492,141

 

Net change in cash and cash equivalents during the period

 

15,690

 

3,726

 

22,338

 

33,941

Cash and cash equivalents, beginning of the period

78,011

67,637

71,363

37,422

Cash and cash equivalents, end of the period

93,701

71,363

93,701

71,363


 

CORUS ENTERTAINMENT INC.




BUSINESS SEGMENT INFORMATION








(unaudited - in thousands of Canadian dollars)

Three months ended August 31, 2017

 

 

Television

 

 

Radio

 

 

Corporate

 

 

Consolidated

Revenues

346,008

35,204

381,212

Direct cost of sales, general and administrative expenses

238,755

26,902

7,954

273,611

Segment profit (loss)(1)

107,253

8,302

(7,954)

107,601

Depreciation and amortization




22,807

Interest expense




38,121

Business acquisition, integration and restructuring costs




13,265

Other income, net




(16,474)

Income before income taxes




49,882

 

Three months ended August 31, 2016






Television

Radio

Corporate

Consolidated

Revenues

347,283

37,184

384,467

Direct cost of sales, general and administrative expenses

240,466

28,675

9,955

279,096

Segment profit (loss)(1)

106,817

8,509

(9,955)

105,371

Depreciation and amortization




33,585

Interest expense




39,788

Business acquisition, integration and restructuring costs




19,559

Other expense, net




1,716

Income before income taxes




10,723

 

Year ended August 31, 2017






Television

Radio

Corporate

Consolidated

Revenues

1,529,792

149,216

1,679,008

Direct cost of sales, general and administrative expenses

965,425

109,689

25,811

1,100,925

Segment profit (loss)(1)

564,367

39,527

(25,811)

578,083

Depreciation and amortization




91,750

Interest expense




156,716

Business acquisition, integration and restructuring costs




31,983

Other income, net




(8,953)

Income before income taxes




306,587

(1)

Segment profit does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2017 Report to Shareholders.











(unaudited - in thousands of Canadian dollars)

Year ended August 31, 2016

 

 

Television

 

 

Radio

 

 

Corporate

 

 

Consolidated

Revenues

1,015,609

155,705

1,171,314

Direct cost of sales, general and administrative expenses

611,384

119,546

29,370

760,300

Segment profit (loss)(1)

404,225

36,159

(29,370)

411,014

Depreciation and amortization




73,969

Interest expense




110,862

Gain on disposition




(86,151)

Debt refinancing




61,248

Business acquisition, integration and restructuring costs




57,198

Other expense, net




8,752

Income before income taxes




185,136

(1)

Segment profit does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2017 Report to Shareholders.

 

REVENUES BY TYPE











Three months ended

Year ended


August 31,

August 31,

(unaudited - in thousands of Canadian dollars)

2017

2016

2017

2016

Advertising

227,028

226,250

1,080,929

661,818

Subscriber fees

127,110

128,179

506,666

405,728

Merchandising, distribution and other

27,074

30,038

91,413

103,768


381,212

384,467

1,679,008

1,171,314

 

NON-IFRS FINANCIAL MEASURES











Three months ended

Year ended


August 31,

August 31,

(unaudited - in thousands of Canadian dollars)

2017

2016

2017

2016

Adjusted segment profit Reported






segment profit Adjustments:

107,601

105,371

578,083

411,014



Amortization not taken on Pay TV assets disposed of

(15,585)


Adjusted segment profit

107,601

105,371

578,083

395,429











Adjusted Net Income Attributable to Shareholders






Net income attributable to shareholders

28,919

25

191,665

125,931


Adjustments, net of income tax:







Gain on disposal of Pay TV assets

(76,631)



Amortization of Pay TV assets

(11,455)



Investment in associates impairment

5,250

5,250



Business acquisition, integration and restructuring costs

9,775

14,510

23,573

46,171



Debt refinancing costs

45,017


Adjusted net income attributable to shareholders

43,944

14,535

220,488

129,033


Basic earnings per share

$0.14

$0.00

$0.95

$0.96


Adjustments, net of income tax:







Gain on disposal of Pay TV assets

(0.58)



Amortization of Pay TV assets

(0.09)



Investment in associates impairment

0.03

0.03



Business acquisition, integration and restructuring costs

0.05

0.07

0.12

0.35



Debt refinancing costs

0.34


Adjusted basic earnings per share

$0.22

$0.07

$1.10

$0.98
















Free cash flow






Cash provided by (used in):






Operating activities

89,114

73,013

298,133

200,227


Investing activities

(10,850)

(8,075)

(20,908)

(1,658,427)


78,264

64,938

277,225

(1,458,200)


Add back: cash used for (provided from) business combinations







and strategic investments(1)(2)

1,938

(3,541)

15,435

1,646,365


Free cash flow

80,202

61,397

292,660

188,165


(1)

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

(2)

Adjusted to remove the impact of disposing the Pay TV business

 

SOURCE Corus Entertainment Inc.

Copyright CNW Group 2017

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