Astral Media reports its 12th consecutive year of growth
Wed Oct 29, 11:26 AM
Strong increases in EPS, Net Earnings, EBITDA(2),
Revenues and Cash Flow for the fourth quarter and Fiscal 2008
The following results include the operations of the assets acquired from
Standard Radio, effective October 29, 2007.
MONTREAL, Oct. 29 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A/ACM.B) today reported its financial results for the fourth quarter and year ended August 31, 2008, which concluded another year of strong financial performance.
FINANCIAL HIGHLIGHTS
- 11% increase in basic EPS from continuing operations(1) for the year
(11% for the fourth quarter)(1)
- 19% increase in net earnings from continuing operations(1) for the year
(20% for the fourth quarter)(1)
- 40% increase in EBITDA(2) for the year (47% for the fourth quarter)(2)
- 35% increase in revenues for the year (43% for the fourth quarter)
- 35% increase in cash flow from continuing operations(3) for the year
(37% for the fourth quarter)(3)
"This marks a 12th consecutive year of profitable growth for Astral Media.
This unique track record in our industry speaks directly to our strong and
stable management team, disciplined financial and operational practices and to
the dedication of more than 2,800 employees", said Ian Greenberg, President
and Chief Executive Officer of Astral Media. He added: "I am very proud of
delivering such strong results in the context of a very busy year at Astral
Media, which included the integration of the Standard Radio acquisition, the
rollout of the Toronto Street Furniture program and the launches of Playhouse
Disney and TELETOON Retro".
Consolidated net earnings from continuing operations for Fiscal 2008
increased by 19%, rising to $150.5 million(1) ($2.67 basic EPS, $2.63 diluted
EPS)(1) from $126.6 million(1) ($2.40 basic EPS, $2.35 diluted EPS)(1) last
year. Consolidated net earnings from continuing operations for the fourth
quarter of Fiscal 2008 increased by 20% to $40.8 million(1) ($0.72 basic EPS,
$0.72 diluted EPS)(1), from $34.0 million(1) ($0.65 basic EPS, $0.63 diluted
EPS)(1) last year.
Consolidated revenues totalled $865.4 million for Fiscal 2008, an increase
of 35% over the $640.5 million recorded in Fiscal 2007. Consolidated revenues
were $229.9 million for the fourth quarter of Fiscal 2008, up 43% from the
$160.6 million for the same quarter last year.
EBITDA(2) for the year increased by 40% to $289.6 million from
$206.7 million for the same period last year. EBITDA(2) was up 47% to
$81.1 million in the fourth quarter of Fiscal 2008 compared to $55.1 million
for the same quarter last year. Cash flow from continuing operations(3) rose
35% year-over-year totalling $205.3 million for the year compared to
$152.0 million for Fiscal 2007. Cash flow from continuing operations(3) rose
by 37% to $60.1 million in the fourth quarter, compared to $43.9 million for
the same quarter last year.
OPERATIONAL HIGHLIGHTS FOR FISCAL 2008
Television
- Revenue growth of 5% to $497.0 million;
- Advertising revenue growth of 12% to $108.2 million;
- EBITDA(2) growth of 5% to $179.5 million;
- Launch of TELETOON Retro in English;
- Launch of Playhouse Disney;
- Announcement of the of launch of HBO Canada, a The Movie Network
multiplex channel (after year-end);
- Launch of TÉLÉTOON Rétro in French (after year-end);
- Rebranding and repositioning of MusiquePlus (after year-end).
Radio
- Revenue growth of 156% to $296.3 million;
- EBITDA(2) growth of 171% to $111.1 million;
- EBITDA(2) margin rose from 35.5% to 37.5%;
- Launch of a radio station in Regina;
- Granting by the CRTC of a radio licence in the Ottawa-Gatineau market;
- Launch of the first Virgin Radio station in North America, Virgin Radio
999 in Toronto.
Outdoor Advertising
- Revenue growth of 45% to 72.1 million;
- EBITDA(2) growth of 42% to $23.6 million;
- Rollout of TSF contract.
Astral Media is a leading Canadian media company, active in specialty and
pay television, radio, outdoor advertising and iMedia. Astral Media's solid
and dynamic presence in the country's major markets rests on its commitment to
offer a unique combination of high-quality, targeted media for all its
audiences.
The audited consolidated financial statements with related notes and
Management's Discussion and Analysis are available on the Company's website:
www.astralmedia.com.
There will be a conference call with analysts and media at 2:00 p.m. on
Wednesday, October 29, 2008. To access the conference call dial
1-800-732-0232. The conference call will also be broadcast live and archived
for a three-month period on the Astral Media website at www.astralmedia.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.
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1. Excluding the impact of the future income tax recovery resulting from
future income tax rate changes in Fiscal 2008 and 2007. See
Appendix 1.
2. EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. See Appendix 1.
3. See Appendix 1.
ASTRAL MEDIA INC.
Consolidated Statements of Earnings
for the periods ended August 31, 2008 and 2007
(in thousands of Canadian dollars except for per-share data)
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3 months 12 months
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2008 2007 2008 2007
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(unaudited)
Revenues $ 229,872 $ 160,584 $ 865,370 $ 640,518
Operating expenses 148,818 105,483 575,792 433,824
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EBITDA(1) 81,054 55,101 289,578 206,694
Depreciation 6,068 4,308 21,617 15,518
Amortization of
intangible assets 318 115 1,195 434
Interest expense
(income), net 11,101 (1,132) 37,465 (4,170)
-----------------------------------------------
Earnings from continuing
operations before income
taxes 63,567 51,810 229,301 194,912
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Income tax provision
before undernoted 22,761 17,794 78,839 68,288
Future income tax
recovery resulting from
income tax rate changes - (4,069) (28,259) (4,069)
-----------------------------------------------
22,761 13,725 50,580 64,219
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Net earnings from
continuing operations 40,806 38,085 178,721 130,693
Net earnings (net loss)
from discontinued
operations (1,868) (35) (1,711) 501
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Net earnings $ 39,938 $ 38,050 $ 177,010 $ 131,194
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Earnings per share from
continuing operations
- Basic $ 0.72 $ 0.72 $ 3.18 $ 2.48
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- Diluted $ 0.72 $ 0.71 $ 3.12 $ 2.42
Earnings per share
- Basic $ 0.69 $ 0.72 $ 3.15 $ 2.49
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- Diluted $ 0.68 $ 0.71 $ 3.09 $ 2.43
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Weighted average number
of shares outstanding -
basic (in thousands) 56,362 52,713 56,257 52,763
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(1) See Appendix 1
ASTRAL MEDIA INC.
Consolidated Statements of Cash Flows
for the periods ended August 31, 2008 and 2007
(in thousands of Canadian dollars)
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3 months 12 months
----------------------- -----------------------
2008 2007 2008 2007
-----------------------------------------------
(unaudited)
Cash and cash equivalents
provided by (used for):
OPERATING ACTIVITIES
Net earnings from
continuing operations $ 40,806 $ 38,085 $ 178,721 $ 130,693
Non-cash charges
(credits):
Depreciation and
amortization 6,386 4,423 22,812 15,952
Stock-based
compensation 1,415 1,571 6,270 6,063
Future income tax
expense before
undernoted 10,533 3,884 22,715 3,360
Future income tax
recovery resulting
from income tax rate
changes - (4,069) (28,259) (4,069)
Imputed interest on
other non-current
liabilities 743 - 2,507 -
Amortization of
deferred financing
costs 172 - 576 -
-----------------------------------------------
Cash flow from
continuing
operations(1) 60,055 43,894 205,342 151,999
Net change in non-cash
operating items (4,263) (7,297) (56,352) (21,596)
-----------------------------------------------
Cash flow from
continuing operating
activities 55,792 36,597 148,990 130,403
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DISCONTINUED OPERATIONS (237) (487) (591) (621)
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INVESTING ACTIVITIES
Short-term investments -
purchased (9,962) - (9,962) (51,128)
Short-term investments -
cashed - 19,913 51,128 44,774
Additions to property,
plant and equipment (18,036) (7,297) (35,995) (17,296)
Business acquisition,
net of cash acquired (3,040) (32,992) (907,156) (79,786)
Business pre-operating
costs (733) - (2,685) -
Outdoor advertising
licence fees - (28,898) - (28,898)
Deferred business
acquisition costs - (2,392) - (2,392)
-----------------------------------------------
(31,771) (51,666) (904,670) (134,726)
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FINANCING ACTIVITIES
Deferred financing costs - (667) (2,835) (667)
Increase in long-term
debt - - 825,000 -
Repayment of long-term
debt (10,000) - (10,000) -
Shares repurchased (28,502) (7,499) (55,416) (24,054)
Stock options exercised 226 797 3,182 3,088
Dividends (14,144) (10,553) (28,541) (21,098)
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(52,420) (17,922) 731,390 (42,731)
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Net change in cash and
cash equivalents (28,636) (33,478) (24,881) (47,675)
Cash and cash
equivalents - beginning
of period 24,992 54,715 21,237 68,912
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Cash and cash equivalents
(bank overdraft) - end
of period $ (3,644) $ 21,237 $ (3,644) $ 21,237
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(1) See Appendix 1
ASTRAL MEDIA INC.
Consolidated Balance Sheets as at August 31
(in thousands of Canadian dollars)
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2008 2007
---------------------------
ASSETS
Current
Cash and cash equivalents $ - $ 21,237
Short-term investments 9,962 51,128
Accounts receivable 155,841 96,995
Income taxes receivable 919 -
Program and film rights 79,305 72,791
Prepaid expenses and other current assets 28,954 18,331
---------------------------
274,981 260,482
Program and film rights 69,502 58,854
Other non-current assets 47,751 49,088
Property, plant and equipment 133,484 83,367
Broadcast licences 1,807,496 950,698
Goodwill 356,945 116,016
Future income tax assets 26,448 8,549
---------------------------
$ 2,716,607 $ 1,527,054
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LIABILITIES
Current
Bank overdraft $ 3,644 $ -
Accounts payable and accrued liabilities 129,906 83,160
Income taxes payable - 19,501
Program and film rights payable 64,060 70,325
Future income tax liabilities 5,951 3,246
---------------------------
203,561 176,232
---------------------------
Long-term debt 812,074 -
---------------------------
Future income tax liabilities 254,912 267,240
---------------------------
Other non-current liabilities 78,445 26,673
---------------------------
Derivative financial instruments 18,374 -
---------------------------
Liabilities of discontinued operations 2,748 2,183
---------------------------
SHAREHOLDERS' EQUITY
Capital stock 748,121 561,589
---------------------------
Contributed surplus 14,409 11,645
---------------------------
Retained earnings 597,188 481,492
Accumulated other comprehensive income (13,225) -
---------------------------
583,963 481,492
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1,346,493 1,054,726
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$ 2,716,607 $ 1,527,054
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ASTRAL MEDIA INC.
Business Segments
for the periods ended August 31
(in thousands)
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3 months 12 months
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2008 2007 2008 2007
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(unaudited)
REVENUES
Television $ 119,786 $ 116,860 $ 497,007 $ 475,042
Radio 88,720 28,875 296,302 115,701
Outdoor Advertising 21,366 14,849 72,061 49,775
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$ 229,872 $ 160,584 $ 865,370 $ 640,518
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EBITDA(1)
Television $ 41,815 $ 42,900 $ 179,513 $ 170,903
Radio 37,191 11,435 111,140 41,017
Outdoor Advertising 8,370 6,472 23,645 16,703
Corporate Costs (6,322) (5,706) (24,720) (21,929)
-----------------------------------------------
$ 81,054 $ 55,101 $ 289,578 $ 206,694
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(1) See Appendix 1
ASTRAL MEDIA INC.
Appendix 1
Supplementary Measures
for the periods ended August 31
(unaudited)
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In addition to discussing earnings measures in accordance with Canadian
generally accepted accounting principles ("GAAP"), this Press Release provides
the following supplementary measures which are also factors used by management
in monitoring and evaluating the performance of the Company and its business
segments:
EBITDA (earnings before interest, taxes, depreciation and amortization) is
provided to assist investors in determining the ability of the Company to
generate cash from continuing operating activities and to cover financial
charges. It 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 GAAP measures disclosed in the consolidated
statements of earnings for the periods ended August 31, 2008 and 2007 to
EBITDA:
3 months 12 months
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(in thousands of $) 2008 2007 2008 2007
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Earnings from continuing
operations before income
taxes 63,567 51,810 229,301 194,912
Depreciation and
amortization 6,386 4,423 22,812 15,952
Interest expense (income),
net 11,101 (1,132) 37,465 (4,170)
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EBITDA 81,054 55,101 289,578 206,694
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Net earnings and earnings per share from continuing operations before the
impact of future income tax rate changes. These measures provide an indication
of the Company's ability to generate earnings and cash flows from its ongoing
operations, by excluding the impact of the non-cash future income tax
recoveries or expenses resulting from income tax rate changes over which the
Company has no control.
The following tables reconcile GAAP measures disclosed in the consolidated
statements of earnings for the periods ended August 31, 2008 and 2007 to net
earnings and earnings per share, before the impact of future income tax rate
changes.
3 months 12 months
----------------------- -----------------------
(in thousands of $) 2008 2007 2008 2007
-------------------------------------------------------------------------
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Net earnings from
continuing operations 40,806 38,085 178,721 130,693
Future income tax
recovery resulting from
income tax rate changes - (4,069) (28,259) (4,069)
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Net earnings from
continuing operations
before the impact of
future income tax rate
changes 40,806 34,016 150,462 126,624
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3 months 12 months
----------------------- -----------------------
(in dollars) 2008 2007 2008 2007
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Basic earnings per share
from continuing
operations 0.72 0.72 3.18 2.48
Earnings per share -
impact of future income
tax rate changes - (0.07) (0.51) (0.08)
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Basic earnings per share
from continuing
operations before the
impact of future income
tax rate changes 0.72 0.65 2.67 2.40
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3 months 12 months
----------------------- -----------------------
(in dollars) 2008 2007 2008 2007
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Diluted earnings per
share from continuing
operations 0.72 0.71 3.12 2.42
Earnings per share -
impact of future income
tax rate changes - (0.08) (0.49) (0.07)
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Diluted earnings per
share from continuing
operations before the
impact of future income
tax rate changes 0.72 0.63 2.63 2.35
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Cash flow from continuing operations is defined as cash flow from
continuing 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 items.
The following table reconciles GAAP measures disclosed in the consolidated
statements of cash flows for the periods ended August 31, 2008 and 2007 to
cash flow from continuing operations:
3 months 12 months
----------------------- -----------------------
(in thousands of $) 2008 2007 2008 2007
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Cash flow from continuing
operating activities 55,792 36,597 148,990 130,403
Net change in non-cash
operating items 4,263 7,297 56,352 21,596
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Cash flow from continuing
operations 60,055 43,894 205,342 151,999
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The above supplementary measures do not have a standardized meaning
prescribed by GAAP and may not be comparable to similar measures presented by
other companies.
ContactsMedia: Alain Bergeron Vice-President
Brand Management and Corporate Communications
Astral Media Inc.
514 939-5000 Analysts: Robert Fortier
Vice-President Finance and Corporate Controller
Astral Media Inc.
514 939-5000
69.72 (0.62%)
