Corus Entertainment Announces Third Quarter Results
Corus Entertainment Announces Third Quarter Results
- Earnings per share of $0.70 for third quarter, up from earnings of $0.55 in the prior year - Combined Radio and Television revenues up 7% for quarter and year-to-date - Combined Radio and Television segment profit up 11% for quarter and 12% for year-to-date - 461,200 shares acquired through normal course issuer bid in the third quarter
TORONTO, July 10 /PRNewswire-FirstCall/ -- Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced third quarter financial results today, led by strong revenue growth from its broadcasting businesses.
"We enjoyed another solid quarter with strong ad sales in Radio and Television," said John Cassaday, President and Chief Executive Officer, Corus Entertainment Inc. "Our program investments at W Network and Movie Central are driving growth in these key brands and our focus on attracting and retaining strong local talent for our Radio properties resulted in another strong ratings performance in the most recent industry survey. We continue to feel we are well positioned to capitalize on Canada's continued strong economic growth."
Third Quarter Results ---------------------
Consolidated revenues for the third quarter ended May 31, 2007 were $197.6 million, up 9% from $181.6 million last year. Consolidated segment profit was $63.5 million, up 10% from $57.7 million last year. Net income for the quarter was $29.6 million ($0.70 basic and $0.68 diluted), compared to net income of $23.2 million ($0.55 basic and $0.54 diluted) last year.
Corus Television contributed quarterly revenues of $109.2 million, up 9% from $100.6 million last year, led by continued specialty advertising growth of 12% and subscriber revenue growth of 7%. Quarterly segment profit increased to $45.6 million, up 9% from $41.7 million last year.
Corus Radio revenues were $74.8 million, up 4% from $71.9 million last year. Segment profit was $24.2 million, up 15% from $21.1 million last year.
Corus Content revenues were $14.6 million, up 34% from $10.9 million last year. Segment profit was $0.1 million, compared to $0.5 million last year.
Year-to-Date Results --------------------
Consolidated revenues for the nine months ended May 31, 2007 were $581.5 million, up 7% from $541.3 million last year. Consolidated segment profit was $190.7 million, up 12% from $169.6 million last year. Net income for the nine months was $85.8 million ($2.03 basic and $1.98 diluted), compared to a loss of $11.2 million (loss of $0.26 basic and diluted) last year. The prior year's nine-month period included a pre-tax debt refinancing loss of $132.0 million.
Corus Television, led by specialty advertising growth of 13% and subscriber growth of 9%, contributed nine-month revenues of $332.1 million, up 9% from $305.0 million last year. Movie Central increased its subscriber base to 887,000 at the end of the third quarter, an increase of 8% from the same time last year. Segment profit for the nine-month period increased to $146.9 million, up 12% from $130.7 million last year.
Corus Radio revenues were $209.2 million for the nine-month period, up 4% from $202.1 million last year. Segment profit was $57.8 million, up 10% from $52.5 million last year.
Corus Content revenues were $43.7 million, up 12% from $39.1 million last year. Segment profit for the nine-month period was $3.2 million, up from $2.3 million last year.
"All of our divisions delivered strong results and we continue to enhance shareholder value through our dividend policy and active share buybacks this quarter" said Heather Shaw, Executive Chair, Corus Entertainment Inc.
Corus has continued to purchase shares under its Normal Course Issuer Bid announced in fiscal 2006 and renewed in February 2007. In the first nine months of fiscal 2007, the Company purchased for cancellation 524,100 Class B Non-Voting Shares at an average price of $46.52 per share.
Corus Entertainment Inc. reports in Canadian dollars. About Corus Entertainment Inc.
Corus Entertainment Inc. is a Canadian-based media and entertainment company. Corus is a market leader in specialty television and radio with additional assets in pay television, advertising and digital audio services, television broadcasting, children's book publishing and children's animation. The company's multimedia entertainment brands include YTV, Treehouse, W Network, Movie Central, Nelvana, Kids Can Press and radio stations including CKNW, CKOI and Q107. Corus creates engaging branded entertainment experiences for its audiences across multiple platforms. A publicly traded company, Corus is listed on the Toronto (CJR.B) and New York (CJR) exchanges. Experience Corus on the web at www.corusent.com.
The unaudited consolidated financial statements and accompanying notes for the nine months ended May 31, 2007 and Management's Discussion and Analysis are available on the Company's website at http://www.corusent.com/corporate/investor_information/press_releases.asp.
A conference call with Corus senior management is scheduled for July 10, 2007 at 2 p.m. ET/1 p.m. CT/12 p.m. MT/11 a.m. PT. 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 is 1-866-904-6908 (North America) or 416-915-8329 (International). PowerPoint slides for the call will be posted at 1:45 p.m. ET on July 10, 2007 and can be found on the Corus Entertainment website at: http://www.corusent.com/corporate/investor_information/index.asp.
This statement contains forward-looking information and should be read subject to the following cautionary language:
To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements within the meaning of applicable securities laws. These forward-looking statements related to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook 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 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 others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, we disclaim any intention or obligation to publicly update or revise any forward-looking statements whether as a result of new information, events or circumstances that arises after the date thereof or otherwise.
CORUS ENTERTAINMENT INC. CONSOLIDATED BALANCE SHEETS As at As at (unaudited) May 31, August 31, (in thousands of Canadian dollars) 2007 2006 ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 28,352 43,636 Accounts receivable 166,138 142,934 Prepaid expenses and other 8,954 7,332 Program and film rights 110,173 104,723 Future tax asset 15,157 14,535 ------------------------------------------------------------------------- Total current assets 328,774 313,160 ------------------------------------------------------------------------- Tax credits receivable 21,467 13,226 Investments and other assets 30,450 29,642 Property, plant and equipment, net 77,116 78,417 Program and film rights 97,035 79,380 Film investments 66,933 60,779 Deferred charges 4,400 5,655 Broadcast licenses 519,075 505,212 Goodwill 790,813 756,738 ------------------------------------------------------------------------- 1,936,063 1,842,209 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 173,537 176,384 Income taxes payable 12,230 4,583 ------------------------------------------------------------------------- Total current liabilities 185,767 180,967 ------------------------------------------------------------------------- Long-term debt 615,485 596,362 Deferred credits 23,288 28,691 Future tax liability 98,504 80,447 Other long-term liabilities 23,886 26,865 Non-controlling interest 13,902 11,379 ------------------------------------------------------------------------- Total liabilities 960,832 924,711 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 886,139 870,563 Contributed surplus 9,270 6,878 Retained earnings 91,778 51,585 Cumulative translation adjustment (11,956) (11,528) ------------------------------------------------------------------------- Total shareholders' equity 975,231 917,498 ------------------------------------------------------------------------- 1,936,063 1,842,209 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED EARNINGS (unaudited) (in thousands of Canadian Three months ended Nine months ended dollars except May 31, May 31, per share amounts) 2007 2006 2007 2006 ------------------------------------------------------------------------- Revenues 197,612 181,562 581,539 541,291 Direct cost of sales, general and administrative expenses 134,112 123,860 390,802 371,687 Depreciation 5,286 5,707 15,788 15,733 Amortization 300 823 1,255 2,306 Interest on long-term debt 9,114 9,041 27,021 34,581 Debt refinancing loss - - - 131,951 Other expense, net 674 4,644 7,237 3,393 ------------------------------------------------------------------------- Income (loss) before income taxes and non-controlling interest 48,126 37,487 139,436 (18,360) Income tax expense (recovery) 17,184 13,290 49,590 (10,072) Non-controlling interest 1,355 1,043 4,047 2,883 ------------------------------------------------------------------------- Net income (loss) for the period 29,587 23,154 85,799 (11,171) Retained earnings, beginning of period 88,329 7,002 51,585 50,802 Dividends (14,084) (4,170) (32,276) (10,566) Share repurchase excess (12,054) (8,041) (13,330) (11,120) ------------------------------------------------------------------------- Retained earnings, end of period 91,778 17,945 91,778 17,945 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings (loss) per share Basic $0.70 $0.55 $2.03 $(0.26) Diluted 0.68 0.54 1.98 (0.26) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding (in thousands) Basic 42,368 42,283 42,240 42,629 Diluted 43,372 43,176 43,281 42,629 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three months ended Nine months ended (in thousands of May 31, May 31, Canadian dollars) 2007 2006 2007 2006 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income (loss) for the period 29,587 23,154 85,799 (11,171) Add (deduct) non-cash items: Depreciation 5,286 5,707 15,788 15,733 Amortization of program and film rights 35,398 31,888 101,562 92,023 Amortization of film investments 7,389 7,864 26,357 22,014 Other amortization 300 823 1,255 2,306 Future income taxes 4,911 3,235 12,958 (40,872) Non-controlling interest 1,355 1,043 4,047 2,883 Foreign exchange losses (gains) - (31) 33 (356) Stock-based compensation 3,989 2,764 10,040 6,551 Debt refinancing loss - - - 131,951 Other 614 1,804 1,151 2,957 Net change in non-cash working capital balances related to operations (1,870) 2,831 (33,510) (19,984) Payment of program and film rights (36,171) (40,753) (115,075) (103,135) Net additions to film investments (16,192) (12,832) (45,694) (34,785) ------------------------------------------------------------------------- Cash provided by operating activities 34,596 27,497 64,711 66,115 ------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to property, plant and equipment (4,886) (6,685) (14,439) (14,648) Business combinations - - (46,645) - Increase (decrease) in other investments, net (498) 8,315 (574) 8,076 Decrease in public benefits associated with acquisitions (1,699) (2,119) (4,302) (6,165) Proceeds from sale of assets - - 1,471 10,569 ------------------------------------------------------------------------- Cash used in investing activities (7,083) (489) (64,489) (2,168) ------------------------------------------------------------------------- FINANCING ACTIVITIES Increase (decrease) in bank loans (5,093) (10,574) 19,838 622,780 Notes repurchase and swap termination (553) (1,120) (634) (727,741) Additions to deferred financing charges - - - (6,000) Decrease in other long-term liabilities (142) (131) (472) (483) Issuance of shares under stock option plan 7,841 1,462 25,678 4,036 Shares repurchased (21,783) (19,753) (24,380) (27,402) Dividends paid (16,168) (4,220) (34,246) (6,352) Dividends paid to non-controlling interest - (4,674) (1,524) (5,304) Other - - 234 230 ------------------------------------------------------------------------- Cash used in financing activities (35,898) (39,010) (15,506) (146,236) ------------------------------------------------------------------------- Net decrease in cash and cash equivalents during the period (8,385) (12,002) (15,284) (82,289) Cash and cash equivalents, beginning of period 36,737 67,799 43,636 138,086 ------------------------------------------------------------------------- Cash and cash equivalents, end of period 28,352 55,797 28,352 55,797 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. BUSINESS SEGMENT INFORMATION Three months ended May 31, 2007 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 74,765 109,242 14,606 - (1,001) 197,612 Direct cost of sales, general and admini- strative expenses 50,538 63,621 14,554 6,432 (1,033) 134,112 ------------------------------------------------------------------------- Segment profit 24,227 45,621 52 (6,432) 32 63,500 Depreciation 1,516 1,878 831 1,061 - 5,286 Amortization - - - 300 - 300 Interest on long-term debt - - - 9,114 - 9,114 Other expense, net 570 151 564 (611) - 674 ------------------------------------------------------------------------- Income (loss) before income taxes and non-controlling interest 22,141 43,592 (1,343) (16,296) 32 48,126 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended May 31, 2006 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 71,904 100,631 10,914 - (1,887) 181,562 Direct cost of sales, general and admini- strative expenses 50,763 58,931 10,437 5,547 (1,818) 123,860 ------------------------------------------------------------------------- Segment profit 21,141 41,700 477 (5,547) (69) 57,702 Depreciation 1,976 1,815 789 1,127 - 5,707 Amortization - 423 - 400 - 823 Interest on long-term debt - - - 9,041 - 9,041 Other expense, net 3,646 19 (297) 1,276 - 4,644 ------------------------------------------------------------------------- Income (loss) before income taxes and non-controlling interest 15,519 39,443 (15) (17,391) (69) 37,487 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Nine months ended May 31, 2007 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 209,192 332,051 43,672 - (3,376) 581,539 Direct cost of sales, general and admini- strative expenses 151,368 185,144 40,484 17,472 (3,666) 390,802 ------------------------------------------------------------------------- Segment profit 57,824 146,907 3,188 (17,472) 290 190,737 Depreciation 4,339 5,881 2,556 3,012 - 15,788 Amortization - 355 - 900 - 1,255 Interest on long-term debt - - - 27,021 - 27,021 Other expense, net 1,321 5,529 2,251 (1,864) - 7,237 ------------------------------------------------------------------------- Income (loss) before income taxes and non-controlling interest 52,164 135,142 (1,619) (46,541) 290 139,436 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Nine months ended May 31, 2006 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 202,080 304,983 39,072 - (4,844) 541,291 Direct cost of sales, general and admini- strative expenses 149,572 174,238 36,802 16,147 (5,072) 371,687 ------------------------------------------------------------------------- Segment profit 52,508 130,745 2,270 (16,147) 228 169,604 Depreciation 5,165 5,489 2,238 2,841 - 15,733 Amortization - 799 - 1,507 - 2,306 Interest on long-term debt - - - 34,581 - 34,581 Debt refinancing loss - - - 131,951 - 131,951 Other expense, net 3,930 357 (301) (593) - 3,393 ------------------------------------------------------------------------- Income (loss) before income taxes and non-controlling interest 43,413 124,100 333 (186,434) 228 (18,360) ------------------------------------------------------------------------- -------------------------------------------------------------------------
Source: Corus Entertainment Inc.
CONTACT: John Cassaday, President and Chief Executive Officer, Corus
Entertainment Inc., (416) 642-3770; Tom Peddie, Senior Vice President and
Chief Financial Officer, Corus Entertainment Inc., (416) 642-3780; Tracy
Ewing, Vice President, Communications, Corus Entertainment Inc., (416)
642-3792
Profile: International Entertainment
posted by EntertainmentNews @ 4:03 AM
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