Corus Entertainment announces fourth quarter and year end results
Corus Entertainment announces fourth quarter and year end results
- Earnings per share of $0.50 for fourth quarter and $2.53 for fiscal 2007 - Combined Radio and Television revenues up 5% for fourth quarter and 6% for the fiscal year - Segment profit of $241 million up 13% for fiscal 2007 - Increased segment profit guidance range to $255 - $265 million for fiscal 2008
TORONTO, Oct. 25 /PRNewswire-FirstCall/ -- Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced fourth quarter and year end financial results today, led by continued revenue growth from its broadcasting businesses.
"Corus had an exceptional year in fiscal 2007," said John Cassaday, President and Chief Executive Officer, Corus Entertainment Inc. "Our share price increased by 26%, we increased our dividend by 16% and we bought back approximately 2% of our shares. These positive outcomes for our shareholders were due to the strength of our core businesses in Radio and Television." Mr. Cassaday added, "As a result of our year end financial results and our outlook for next year, we are increasing our segment profit guidance range to $255 - $265 million for fiscal 2008."
Fourth Quarter Results ----------------------
Consolidated revenues for the fourth quarter ended August 31, 2007 were $187.2 million, up 1% from $185.0 million last year. Consolidated segment profit was $50.2 million, up 13% from $44.5 million last year. The fourth quarter of fiscal 2007 benefited from the reversal of an accrual of $4.9 million related to certain regulatory fees. Net income for the quarter was $21.2 million ($0.50 basic and $0.49 diluted), compared to net income of $46.6 million ($1.11 basic and $1.09 diluted) last year. Net income for the fourth quarter last year was positively impacted by approximately $37.0 million in income tax rate changes and other income tax items.
Corus Television contributed quarterly revenues of $104.2 million, up 8% from $96.9 million last year, led by continued specialty advertising growth of 8% and subscriber revenue growth of 5%. Quarterly segment profit increased to $35.5 million, up 3% from $34.5 million last year.
Corus Radio revenues were $66.5 million, up marginally from $66.3 million last year. Segment profit was $19.7 million, up 24% from $15.8 million last year.
Corus Content revenues were $17.7 million, down 28% from $24.5 million last year. Segment profit was $2.3 million, compared to $2.2 million last year.
Fiscal 2007 Results -------------------
Consolidated revenues for the year ended August 31, 2007 were $768.7 million, up 6% from $726.3 million last year. Consolidated segment profit was $240.9 million, up 13% from $214.1 million last year. Net income for the year was $107.0 million ($2.53 basic and $2.47 diluted), compared to $35.5 million ($0.84 basic and $0.82 diluted) last year. The prior year included a pre-tax debt refinancing loss of $132.0 million.
Corus Television, led by specialty advertising growth of 12% and subscriber growth of 8%, contributed full year revenues of $436.3 million, up 9% from $401.9 million last year. Movie Central finished the year with 883,000 subscribers, an increase of 7% from the end of last year. Segment profit for the year increased to $182.4 million, up 10% from $165.3 million last year.
Corus Radio revenues were $275.7 million for the year, up 3% from $268.4 million last year. Segment profit was $77.5 million, up 13% from $68.4 million last year.
Corus Content revenues were $61.3 million, down 4% from $63.6 million last year. Segment profit for the year was $5.4 million, up from $4.5 million last year.
"Corus had another excellent year," said Heather Shaw, Executive Chair, Corus Entertainment Inc. "We accomplished several important initiatives that position us well for the future such as securing the Cosmopolitan Television license. In addition, we gained new FM radio stations in Kitchener, Winnipeg and several cities throughout the province of Quebec. We are also excited by our new international ventures with Kidsco and qubo."
Corus has continued to purchase shares under its Normal Course Issuer Bid announced in fiscal 2006 and renewed in February 2007. In 2007, the Company purchased for cancellation 769,100 Class B Non-Voting Shares at an average price of $47.36 per share. In September 2007, a further 402,100 Class B Non-Voting Shares were purchased and cancelled.
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 year ended August 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 October 25, 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 October 25, 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) August 31, August 31, (in thousands of Canadian dollars) 2007 2006 ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 33,347 43,636 Accounts receivable 151,380 142,934 Prepaid expenses and other 10,921 7,332 Program and film rights 125,068 104,723 Future tax asset 13,518 14,535 ------------------------------------------------------------------------- Total current assets 334,234 313,160 ------------------------------------------------------------------------- Tax credits receivable 16,875 13,226 Investments and other assets 17,492 29,642 Property, plant and equipment, net 78,342 78,417 Program and film rights 90,687 79,380 Film investments 66,593 60,779 Deferred charges 4,100 5,655 Broadcast licenses 532,812 505,212 Goodwill 795,832 756,738 ------------------------------------------------------------------------- 1,936,967 1,842,209 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 166,083 160,470 Income taxes payable 1,474 4,583 ------------------------------------------------------------------------- Total current liabilities 167,557 165,053 ------------------------------------------------------------------------- Long-term debt 610,697 596,362 Other long-term liabilities 64,773 71,470 Future tax liability 102,851 80,447 Non-controlling interest 15,196 11,379 ------------------------------------------------------------------------- Total liabilities 961,074 924,711 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 882,244 870,563 Contributed surplus 10,250 6,878 Retained earnings 95,568 51,585 Cumulative translation adjustment (12,169) (11,528) Total shareholders' equity 975,893 917,498 ------------------------------------------------------------------------- 1,936,967 1,842,209 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (unaudited) (in thousands of Three months ended Twelve months ended Canadian dollars August 31, August 31, except per share amounts) 2007 2006 2007 2006 ------------------------------------------------------------------------- Revenues 187,204 184,979 768,743 726,270 Direct cost of sales, general and administrative expenses 137,020 140,464 527,822 512,151 Depreciation 5,768 5,569 21,556 21,302 Amortization 300 566 1,555 2,872 Interest expense 8,817 8,524 35,838 43,105 Debt refinancing loss - - - 131,951 Other expense, net 2,563 8,274 9,800 11,667 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 32,736 21,582 172,172 3,222 Income tax expense (recovery) 10,223 (25,933) 59,813 (36,005) Non-controlling interest 1,294 873 5,341 3,756 ------------------------------------------------------------------------- Net income for the period 21,219 46,642 107,018 35,471 Retained earnings, beginning of period 91,778 17,945 51,585 50,802 Dividends (10,566) (9,020) (42,842) (19,586) Share repurchase excess (6,863) (3,982) (20,193) (15,102) ------------------------------------------------------------------------- Retained earnings, end of period 95,568 51,585 95,568 51,585 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per share Basic $0.50 $1.11 $2.53 $0.84 Diluted 0.49 1.09 2.47 0.82 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding (in thousands) Basic 42,121 41,961 42,281 42,461 Diluted 43,098 42,901 43,328 43,247 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three months ended Twelve months ended (in thousands of August 31, August 31, Canadian dollars) 2007 2006 2007 2006 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income for the period 21,219 46,642 107,018 35,471 Add (deduct) non-cash items: Depreciation 5,768 5,569 21,556 21,302 Amortization of program and film rights 37,149 32,304 138,711 124,327 Amortization of film investments 12,424 17,436 38,781 39,450 Other amortization 300 566 1,555 2,872 Future income taxes 3,337 (33,360) 16,295 (74,232) Non-controlling interest 1,294 873 5,341 3,756 Stock-based compensation 3,026 5,586 13,066 12,137 Debt refinancing loss - - - 131,951 Other (335) 477 849 3,078 Net change in non-cash working capital balances related to operations 5,700 10,086 (27,810) (9,898) Payment of program and film rights (41,145) (31,616) (156,220) (134,751) Net additions to film investments (10,375) (9,660) (56,069) (44,445) ------------------------------------------------------------------------- Cash provided by operating activities 38,362 44,903 103,073 111,018 ------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to property, plant and equipment (5,848) (8,950) (20,287) (23,598) Business combinations (18,047) - (64,692) - Net proceeds from sale of other investments and assets 19,782 (2,702) 20,679 15,943 Decrease in public benefits associated with acquisitions (2,196) (3,429) (6,498) (9,594) ------------------------------------------------------------------------- Cash used in investing activities (6,309) (15,081) (70,798) (17,249) ------------------------------------------------------------------------- FINANCING ACTIVITIES Increase (decrease) in bank loans (5,450) (30,093) 14,388 592,687 Notes repurchase and swap termination - (88) (634) (727,829) Additions to deferred financing charges - - - (6,000) Decrease in other long-term liabilities (204) (165) (676) (648) Issuance of shares under stock option plan 1,237 1,945 26,915 5,981 Shares repurchased (12,042) (9,387) (36,422) (36,789) Dividends paid (10,599) (4,195) (44,845) (10,547) Dividends paid to non-controlling interest - - (1,524) (5,304) Other - - 234 230 ------------------------------------------------------------------------- Cash used in financing activities (27,058) (41,983) (42,564) (188,219) ------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents during the period 4,995 (12,161) (10,289) (94,450) Cash and cash equivalents, beginning of period 28,352 55,797 43,636 138,086 ------------------------------------------------------------------------- Cash and cash equivalents, end of period 33,347 43,636 33,347 43,636 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. BUSINESS SEGMENT INFORMATION Three months ended August 31, 2007 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 66,544 104,219 17,653 - (1,212) 187,204 Direct cost of sales, general and administrative expenses 46,833 68,678 15,399 7,372 (1,262) 137,020 ------------------------------------------------------------------------- Segment profit 19,711 35,541 2,254 (7,372) 50 50,184 Depreciation 1,856 2,566 161 1,185 - 5,768 Amortization - - - 300 - 300 Interest expense - - - 8,817 - 8,817 Other expense, net 2,590 627 625 (1,279) - 2,563 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 15,265 32,348 1,468 (16,395) 50 32,736 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended August 31, 2006 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 66,287 96,873 24,546 - (2,727) 184,979 Direct cost of sales, general and administrative expenses 50,443 62,325 22,316 7,851 (2,471) 140,464 ------------------------------------------------------------------------- Segment profit 15,844 34,548 2,230 (7,851) (256) 44,515 Depreciation 1,734 2,852 63 920 - 5,569 Amortization - 266 - 300 - 566 Interest expense - - - 8,524 - 8,524 Other expense, net 70 544 6,769 891 - 8,274 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 14,040 30,886 (4,602) (18,486) (256) 21,582 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Twelve months ended August 31, 2007 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 275,736 436,270 61,325 - (4,588) 768,743 Direct cost of sales, general and administrative expenses 198,201 253,822 55,883 24,844 (4,928) 527,822 ------------------------------------------------------------------------- Segment profit 77,535 182,448 5,442 (24,844) 340 240,921 Depreciation 6,195 10,908 256 4,197 - 21,556 Amortization - 355 - 1,200 - 1,555 Interest expense - - - 35,838 - 35,838 Other expense, net 3,911 6,156 2,876 (3,143) - 9,800 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 67,429 165,029 2,310 (62,936) 340 172,172 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Twelve months ended August 31, 2006 Tele- Elimi- Conso- Radio vision Content Corporate nations lidated ------------------------------------------------------------------------- Revenues 268,367 401,856 63,618 - (7,571) 726,270 Direct cost of sales, general and administrative expenses 200,015 236,563 59,118 23,998 (7,543) 512,151 ------------------------------------------------------------------------- Segment profit 68,352 165,293 4,500 (23,998) (28) 214,119 Depreciation 6,899 10,493 149 3,761 - 21,302 Amortization - 1,065 - 1,807 - 2,872 Interest expense - - - 43,105 - 43,105 Debt refinancing loss - - - 131,951 - 131,951 Other expense, net 4,000 901 6,468 298 - 11,667 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 57,453 152,834 (2,117) (204,920) (28) 3,222 ------------------------------------------------------------------------- -------------------------------------------------------------------------
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 @ 4:09 AM
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