Corus Entertainment announces first quarter results
Corus Entertainment announces first quarter results
- Earnings per share of $0.94 for first quarter, up 8% from prior year - Combined Radio and Television revenues up 4% for first quarter - Segment profit of $83 million, up 4% for first quarter
TORONTO, Jan. 9 /PRNewswire-FirstCall/ -- Corus Entertainment Inc. (TSX: CJR.B; NYSE: CJR) announced its first quarter financial results today, led by continued revenue growth from its broadcasting businesses.
"We executed well on our operating strategies and delivered solid increases in revenues and segment profit," said John Cassaday, President and CEO of Corus Entertainment Inc. "In Q1, we invested in programming and marketing to continue our growth momentum. These solid results were in line with our expectations and our continued confidence in our business has enabled us to once again substantially increase our dividend. We are also pleased to have announced our intention to extend our share buyback program."
First Quarter Results ---------------------
Consolidated revenues for the first quarter ended November 30, 2007 were $214.8 million, up 3% from $209.2 million last year. Consolidated segment profit was $83.4 million, up 4% from $79.9 million last year. Net income for the quarter was $39.4 million ($0.94 basic and $0.91 diluted), up 7% compared to net income of $36.7 million ($0.87 basic and $0.85 diluted) last year.
Corus Television contributed quarterly revenues of $126.1 million, up 3% from $122.6 million last year, led by specialty advertising growth of 2% and subscriber revenue growth of 4%. Quarterly segment profit increased to $62.9 million, up 4% from $60.5 million last year.
Corus Radio revenues were $79.5 million, up 5% from $75.6 million last year. Segment profit was $25.5 million, up 8% from $23.6 million last year.
Corus Content revenues were $9.6 million, down 19% from $11.7 million last year. Segment profit was $0.5 million, compared to $1.0 million last year.
Corus has continued to purchase shares under its Normal Course Issuer Bid announced in fiscal 2006 and renewed in February 2007. In the first quarter of fiscal 2008, the Company purchased for cancellation 659,900 Class B Non-Voting Shares at an average price of $49.01 per share. In December 2007, a further 125,300 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 quarter ended November 30, 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 January 9, 2008 at 9 a.m. ET / 8 a.m. CT / 7 a.m. MT / 6 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 (866) 322-2356 (North America) or (416) 640-3405 (International). PowerPoint slides for the call will be posted at 8:45 a.m. ET on January 9, 2008 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 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 statements"). These forward-looking statements related to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including advertising, program, 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, program, 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 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 (unaudited) November 30, August 31, (in thousands of Canadian dollars) 2007 2007 ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 11,847 33,347 Accounts receivable 185,936 151,380 Prepaid expenses and other 13,234 10,921 Program and film rights 127,555 125,068 Future tax asset 10,140 13,518 ------------------------------------------------------------------------- Total current assets 348,712 334,234 ------------------------------------------------------------------------- Tax credits receivable 23,435 16,875 Investments and other assets 19,383 17,492 Property, plant and equipment, net 76,369 78,342 Program and film rights 101,106 90,687 Film investments 69,869 66,593 Deferred charges - 4,100 Broadcast licenses 532,812 532,812 Goodwill 795,817 795,832 ------------------------------------------------------------------------- 1,967,503 1,936,967 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable and accrued liabilities 173,914 166,083 Income taxes payable 11,476 1,474 ------------------------------------------------------------------------- Total current liabilities 185,390 167,557 ------------------------------------------------------------------------- Long-term debt 626,482 610,697 Other long-term liabilities 57,568 64,773 Future tax liability 104,039 102,851 Non-controlling interest 14,813 15,196 ------------------------------------------------------------------------- Total liabilities 988,292 961,074 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital 875,052 882,244 Contributed surplus 11,534 10,250 Retained earnings 104,578 95,568 Accumulated other comprehensive loss (11,953) (12,169) ------------------------------------------------------------------------- Total shareholders' equity 979,211 975,893 ------------------------------------------------------------------------- 1,967,503 1,936,967 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three months ended (in thousands of Canadian dollars November 30, except per share amounts) 2007 2006 ------------------------------------------------------------------------- Revenues 214,825 209,198 Direct cost of sales, general and administrative expenses 131,435 129,281 Depreciation 5,769 5,166 Amortization - 566 Interest expense 10,989 8,872 Other expense, net 3,887 6,522 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 62,745 58,791 Income tax expense 22,138 20,638 Non-controlling interest 1,220 1,484 ------------------------------------------------------------------------- Net income for the period 39,387 36,669 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per share Basic $0.94 $0.87 Diluted $0.91 $0.85 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Three months ended (unaudited) November 30, (in thousands of Canadian dollars) 2007 2006 ------------------------------------------------------------------------- Net income for the period 39,387 36,669 Other comprehensive income (loss), net of tax Unrealized foreign currency translation adjustment (972) 621 Unrealized change in fair value of available-for-sale investments 183 - Unrealized change in fair value of cash flow hedges (6,002) - ------------------------------------------------------------------------- (6,791) 621 ------------------------------------------------------------------------- Comprehensive income for the period 32,596 37,290 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Three months ended (unaudited) November 30, (in thousands of Canadian dollars) 2007 2006 ------------------------------------------------------------------------- Share capital Balance, beginning of period 882,244 870,563 Issuance of shares under Stock Option Plan 6,768 2,371 Shares repurchased (13,960) (821) ------------------------------------------------------------------------- Balance, end of period 875,052 872,113 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Contributed surplus Balance, beginning of period 10,250 6,878 Stock-based compensation 1,869 918 Exercise of stock options (585) (223) ------------------------------------------------------------------------- Balance, end of period 11,534 7,573 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Retained earnings Balance, beginning of period 95,568 51,585 Cumulative impact of accounting changes (1,594) - ------------------------------------------------------------------------- Adjusted opening balance 93,974 51,585 Net income for the period 39,387 36,669 Dividends (10,403) (9,041) Share repurchase excess (18,380) (762) ------------------------------------------------------------------------- Balance, end of period 104,578 78,451 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other comprehensive loss Balance, beginning of period (12,169) (11,528) Cumulative impact of accounting changes 7,007 - ------------------------------------------------------------------------- Adjusted opening balance (5,162) (11,528) Other comprehensive income (loss) (6,791) 621 ------------------------------------------------------------------------- Balance, end of period (11,953) (10,907) ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended (unaudited) November 30, (in thousands of Canadian dollars) 2007 2006 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income for the period 39,387 36,669 Add non-cash items: Depreciation 5,769 5,166 Amortization of program and film rights 36,077 32,201 Amortization of film investments 4,916 7,868 Other amortization - 566 Future income taxes 4,921 2,718 Non-controlling interest 1,220 1,484 Stock-based compensation 2,884 1,919 Other 2,538 730 Net change in non-cash working capital balances related to operations (33,683) (24,976) Payment of program and film rights (42,297) (37,946) Net additions to film investments (17,744) (14,386) ------------------------------------------------------------------------- Cash provided by operating activities 3,988 12,013 ------------------------------------------------------------------------- INVESTING ACTIVITIES Additions to property, plant and equipment (4,219) (5,492) Business combinations 332 (46,645) Net change in other investments and assets (1,135) 54 Decrease in public benefits associated with acquisitions (1,896) (1,258) ------------------------------------------------------------------------- Cash used in investing activities (6,918) (53,341) ------------------------------------------------------------------------- FINANCING ACTIVITIES Increase in bank loans 19,828 49,627 Decrease in other long-term liabilities (158) (168) Issuance of shares under stock option plan 6,183 2,148 Shares repurchased (32,340) (1,583) Dividends paid (10,480) (9,039) Dividend paid to non-controlling interest (1,603) - ------------------------------------------------------------------------- Cash provided by (used in) financing activities (18,570) 40,985 ------------------------------------------------------------------------- Decrease in cash and cash equivalents during the period (21,500) (343) Cash and cash equivalents, beginning of period 33,347 43,636 ------------------------------------------------------------------------- Cash and cash equivalents, end of period 11,847 43,293 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CORUS ENTERTAINMENT INC. BUSINESS SEGMENT INFORMATION Three months ended November 30, 2007 Tele- Elimi- Consoli- Radio vision Content Corporate nations dated ------------------------------------------------------------------------- Revenues 79,525 126,119 9,557 - (376) 214,825 Direct cost of sales, general and administrative expenses 54,054 63,250 9,086 5,646 (601) 131,435 ------------------------------------------------------------------------- Segment profit 25,471 62,869 471 (5,646) 225 83,390 Depreciation 1,419 2,626 36 1,688 - 5,769 Interest expense 247 874 643 9,225 - 10,989 Other expense, net (34) 3,459 753 (291) - 3,887 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 23,839 55,910 (961) (16,268) 225 62,745 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three months ended November 30, 2006 Tele- Elimi- Consoli- Radio vision Content Corporate nations dated ------------------------------------------------------------------------- Revenues 75,591 122,641 11,746 - (780) 209,198 Direct cost of sales, general and administrative expenses 51,942 62,159 10,739 5,398 (957) 129,281 ------------------------------------------------------------------------- Segment profit 23,649 60,482 1,007 (5,398) 177 79,917 Depreciation 1,369 2,810 25 962 - 5,166 Amortization - 266 - 300 - 566 Interest expense 230 39 90 8,513 - 8,872 Other expense, net 435 5,416 1,222 (551) - 6,522 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 21,615 51,951 (330) (14,622) 177 58,791 ------------------------------------------------------------------------- -------------------------------------------------------------------------
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 @ 4:04 AM
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