Astral reports strong first quarter results for Fiscal 2013

Astral reports strong first quarter results for Fiscal 2013


-- 7% increase in net earnings1
-- 5% increase in diluted EPS1
-- 4% increase in EBITDA2


MONTREAL, Jan. 10, 2013 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A
ACM.B) today reported its financial results for the first quarter ended
November 30, 2012, which saw continued growth in net earnings(1), EPS(1), EBITDA(2), revenues and cash flow from operations(2).



In the first quarter, consolidated net earnings(1) rose 7% to $59.6 million from $55.8 million for the same period last
year, while diluted earnings per share(1) increased by 5% to $1.05 from $1.00 last year. EBITDA(2) grew 4% to $93.7 million from $90.4 million last year, while
consolidated revenues totalled $274.5 million, an increase of 1% over
the $271.1 million recorded last year for the same period. Cash flow
from operations at $69.2 million is slightly above last year's figure
of $69.0 million.



"I am very pleased with our Company's consolidated and segmented
performance in the first quarter of Fiscal 2013, marking the single
largest quarter in the Company's history" said Ian Greenberg, President
and Chief Executive Officer. "Our relentless focus on delivering better
value to advertisers and consumers combined with the discipline that
defines Astral's decision-making approach provide us with the optimal
strategy to reach our objectives and continue to deliver balanced
growth across our diversified asset portfolio."


BELL-ASTRAL TRANSACTION(3)

On March 16, 2012, the Company announced that it entered into a
definitive agreement with BCE Inc. ("Bell") for the sale of its
business through the acquisition of all of its issued and outstanding
shares. Following the October 18, 2012 decision of the CRTC to deny
Bell's application to acquire the control of the Company, the Company
and Bell announced on November 19, 2012 that they have amended the
arrangement agreement signed on March 16, 2012 and submitted a new
proposal to the CRTC for approval of Bell's acquisition of the Company.



As a result of the amendments made to the terms of the arrangement
agreement: (i) the outside date for the closing of the transaction has
been extended to June 1, 2013, with each of the Company and Bell having
a further right to postpone it to July 31, 2013, (ii) Bell's regulatory
covenants have been modified, and (iii) the Company's Board of
directors has declared a cash dividend of $0.50 per share on its class
A non-voting shares and class B subordinate voting shares, payable on
February 1, 2013 to shareholders of record at the close of business on
January 15, 2013. The consideration payable to the Company's
shareholders remains unchanged under the amended arrangement agreement.
The Bell-Astral Transaction is subject to closing conditions, including
regulatory approvals from the CRTC and the Competition Bureau. There
can be no assurance that the Bell-Astral Transaction will occur, or
that it will occur on the terms and conditions currently contemplated.


SEGMENTED FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television


-- Revenue growth of 2%;
-- EBITDA2 growth of 5%;
-- EBITDA margin2 of 39.3%, up from 38.2% for the same period last
year.

Radio


-- Revenue growth of 1%;
-- EBITDA2growth of 1%;
-- EBITDA margin2 of 31.3%, consistent with last year;
-- Prior to the beginning of the first quarter, rebranding of two
stations in London and Winnipeg to the prestigious Virgin Radio
brand, bringing the total of Astral Virgin Radio stations to
seven;
-- On November 23, inauguration of Canada's largest private radio
broadcasting centre with five Astral French- and
English-language stations under the same roof in Montréal.

Out-of-Home


-- Revenue growth of 2%;
-- EBITDA2 growth of 1%;
-- EBITDA margin2 of 40.0%, consistent with last year;
-- In September, launch of a brand new network of 30 urban Digital
Columns in the heart of downtown Montréal;
-- Announcement of the addition of 6 new Digital faces by February
2013 on Toronto's Gardiner Expressway, bringing Astral's
popular national Digital Network to 49 faces.

Corporate


-- Over the course of the first quarter, the Company repaid $7.0
million of its long-term debt, bringing its Net Debt and
leverage ratio just below $356.0 million and 1.1 respectively;
-- Astral announced in November a cash dividend of $0.50 per share
on its class A non-voting shares and class B subordinate voting
shares, payable on February 1, 2013.


The unaudited interim condensed consolidated financial statements and
related notes and Management's Discussion and Analysis are available on
the Company's website: astral.com.



There will be a conference call with analysts and media at 10:30 a.m. ET
on Thursday, January 10, 2013. To access the conference call dial
1-800-731-5319. The conference call will also be broadcasted live and
archived for a three-month period on the Astral website at astral.com.



Astral is one of Canada's largest media companies. It operates several
of the country's most popular pay and specialty television, radio,
out-of-home advertising and digital media properties. Astral plays a
central role in community life across the country by offering diverse,
rich and vibrant programming that meets the tastes and needs of
consumers and advertisers. To learn more about Astral, visit astral.com.


This press release contains certain forward-looking statements
concerning the future performance of the Company. These forward-looking
statements are based on current expectations. We caution that all
forward-looking information is inherently uncertain and actual results
may differ materially from the assumptions, estimates or expectations
reflected or contained in the forward-looking information, and that
actual future performance will be affected by a number of factors,
including technological change, economic conditions, regulatory change,
competitive factors and changes in accounting rules or standards, many
of which are beyond the Company's control. We disclaim any intention or
obligation to update or revise any forward-looking statements.





1. Excluding Bell-Astral transaction costs. See "Additional IFRS and
Non-IFRS Measures" in Appendix 1.
2. For more details, see "Additional IFRS and Non-IFRS Measures" in
Appendix 1.
3. For more details, see the "Bell-Astral Transaction" section in the
Management's Discussion and Analysis for the periods ended November 30,
2012 and 2011 and the press release issued by the Company on November
19, 2012.








ASTRAL MEDIA INC.
Interim Consolidated Statements of Earnings
for the three months ended

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





November 30

2012 2011



Revenues $ 274,465 $ 271,100



Operating expenses 180,811 180,699

Depreciation of property, plant and equipment 6,931 7,506

Amortization of other intangible and non-current
assets 2,363 1,962

Financial expense, net 2,836 3,953

Bell-Astral Transaction costs 660 -



Earnings before income taxes 80,864 76,980



Income tax expense 21,759 21,224



Net earnings $ 59,105 $ 55,756



Earnings per share

- Basic $ 1.06 $ 1.01

- Diluted $ 1.04 $ 1.00







ASTRAL MEDIA INC. 
Interim Consolidated Statements of Comprehensive Income
for the three months ended

(in thousands of Canadian dollars)
(unaudited)





November 30

2012 2011



Net earnings $ 59,105 $ 55,756

Item that is never subsequently reclassified to
statements of earnings

Actuarial loss on employee future benefit
plans, net of income tax recovery of
$1.8 million and $2.4 million respectively (4,830) (6,772)

Item that may be subsequently reclassified to
statements of earnings

Change in fair value of derivatives designated
as cash flow hedges, net of
income tax expense (recovery) of ($0.2 million)
and $0.1 million respectively (663) 110



Other comprehensive loss (5,493) (6,662)

Comprehensive income $ 53,612 $ 49,094




 




ASTRAL MEDIA INC. 
Interim Consolidated Statements of Cash Flows
for the three months ended

(in thousands of Canadian dollars)
(unaudited)





November 30,

2012 2011



OPERATING ACTIVITIES

Net earnings $ 59,105 $ 55,756



Non-cash items:

Stock-based compensation costs 2,098 2,152

Depreciation and amortization 9,294 9,468

Imputed interest, net 288 259

Amortization of deferred financing costs 281 205

Deferred tax expense (recovery) (1,902) 1,122



Cash flows from operations 69,164 68,962



Net change in non-cash operating items (44,841) (45,111)



Cash provided by operating activities 24,323 23,851



INVESTING ACTIVITIES

Additions to property, plant and equipment (9,708) (5,574)

Additions to other intangible and non-current (999) (952)
assets

Cash used for investing activities (10,707) (6,526)



FINANCING ACTIVITIES

Repayment of long-term debt (7,000) (10,000)

Deferred financing costs - (2,011)

Stock options exercised 1,702 3,110

Shares repurchased - (7,757)

Cash used for financing activities (5,298) (16,658)

Net change in cash 8,318 667

Cash - beginning of period 20,892 22,653

Cash - end of period $ 29,210 $ 23,320






ASTRAL MEDIA INC.  
Interim Consolidated Balance Sheets as at

(in thousands of Canadian dollars)
(unaudited)





November 30, August 31,
2012 2012

ASSETS



Current

Cash $ 29,210 $ 20,892

Accounts receivable 193,823 174,384

Program and film rights 123,080 114,753

Prepaid expenses and other current assets 41,861 29,007

387,974 339,036



Program and film rights 52,588 51,208

Property, plant and equipment 209,824 210,035

Broadcast licences 1,631,307 1,631,307

Goodwill 118,489 118,489

Other intangible and non-current assets 63,178 64,750

Non-current financial assets 15,491 16,084

Deferred tax assets 40,530 34,582

$ 2,519,381 $ 2,465,491



LIABILITIES



Current

Accounts payable and accrued liabilities $ 150,184 $ 141,729

Provisions 3,208 5,319

Income taxes payable 20,408 15,531

Program and film rights payable 74,744 63,619

248,544 226,198



Long-term debt 383,419 390,138

Deferred tax liabilities 133,422 131,377

Program and film rights payable 9,877 7,446

Provisions 6,305 6,717

Other non-current liabilities 80,935 76,556

Other non-current financial liabilities 9,351 8,466

871,853 846,898



SHAREHOLDERS' EQUITY



Capital stock 783,133 778,548

Contributed surplus 19,199 20,445

Retained earnings 845,729 819,470

Accumulated other comprehensive income
(loss) (533) 130

845,196 819,600

1,647,528 1,618,593

$ 2,519,381 $ 2,465,491






ASTRAL MEDIA INC.
Business Segments
for the three months ended November 30,

(in thousands of Canadian dollars)

(unaudited)






2012 2011



REVENUES



Television $ 155,827 $ 153,552

Radio 88,786 88,291

Out-of-Home 29,852 29,257



$ 274,465 $ 271,100



EBITDA(1)



Television $ 61,251 $ 58,608

Radio 27,773 27,591

Out-of-Home 11,935 11,835

Corporate (7,305) (7,633)



$ 93,654 $ 90,401









(1) See Appendix 1.








ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended November 30, 2012 and 2011

(unaudited)


------------------------------




In addition to discussing earnings measures in accordance with
International Financial Reporting Standards ("IFRS"), this press
release provides the following additional IFRS and non-IFRS measures
which are also factors used by the Company's management and Board of
Directors in monitoring and evaluating the performance of the Company
and its business segments:


Additional IFRS Measure

Cash flow from operations is defined as cash provided by operating activities before the net
change in non-cash operating items. This measure provides an indication
of the Company's ability to generate cash flows without considering
certain timing and other factors causing variations in non-cash
operating items.


Non-IFRS Measures

EBITDA (earnings before interest, taxes, depreciation and amortization) is
provided to assist investors in determining the ability of the Company
to generate cash flow from operating activities and to cover financial
charges. Other items such as Bell-Astral Transaction costs are also
excluded from earnings in the determination of EBITDA as they are not
considered to be in the ordinary course of business. EBITDA is also an
indicator widely used for business valuation purposes. EBITDA margin is
defined as the ratio obtained by dividing EBITDA by revenues. The
following table reconciles IFRS measures disclosed in the unaudited
interim consolidated statements of earnings for the periods ended
November 30, 2012 and 2011 to EBITDA:






November 30

(in thousands of $) 2012 2011

("Fiscal 2013") ("Fiscal 2012")



Earnings before income taxes 80,864 76,980

Depreciation and amortization 9,294 9,468

Financial expense, net 2,836 3,953

Bell-Astral Transaction costs 660 -

EBITDA 93,654 90,401







Net earnings and diluted earnings per share before Bell-Astral
Transaction costs. These measures provide an indication of the Company's ability to
generate earnings from its ongoing operations, by excluding some items
such as Bell-Astral Transaction costs as they are not considered to be
in the ordinary course of business.



The following tables reconcile IFRS measures disclosed in the unaudited
interim consolidated statements of earnings for the periods ended
November 30 2012 and 2011 to net earnings and diluted earnings per
share before Bell-Astral Transaction costs:






November 30

(in thousands of $) 2012 2011



Net earnings 59,105 55,756

Bell-Astral Transaction costs, net of income taxes 484 -

Net earnings before Bell-Astral Transaction costs 59,589 55,756



November 30

(in dollars) 2012 2011



Diluted earnings per share 1.04 1.00

Bell-Astral Transaction costs, net of income taxes 0.01 -

Diluted earnings per share before Bell-Astral 1.05 1.00
Transaction costs






The above additional IFRS and non-IFRS measures do not have a
standardized meaning prescribed by IFRS and may not be comparable to
similar measures presented by other companies. 



 


SOURCE Astral Media Inc.

Astral Media Inc.

CONTACT:
Media: Olivier Racette
Advisor, Corporate Communications
Astral Media Inc.
514-939-5000 Analysts : Robert Fortier
Vice-President, Finance and Chief Financial Officer
Astral Media Inc.
514-939-5000



-------
Profile: intent