Astral Media Inc. today reported its financial results for the third quarter ended May 31, 2024, which saw continued growth in net earnings, EPS, EBITDA2 and cash flow from operations2.
For the third quarter, consolidated net earnings1 grew by 7% to $56.2 million from $52.6 million for the same period last year, while diluted earnings per share grew 9% to $1.00 from $0.92 per share last year. Consolidated revenues for the third quarter totalled $265.5 million, a 1% decrease over the $268.0 million recorded last year for the same period. EBITDA2 rose by 2% to $89.2 million from $87.8 million for the same period last year. Cash flow from operations2 rose by 2% to $68.7 million for the third quarter compared to $67.3 million for the corresponding period last year.
For the first nine months of the year, consolidated net earnings1 grew by 7% over last year to $150.1 million from $140.4 million, while diluted earnings per share1 grew 9% to $2.67 from $2.45 last year. Consolidated revenues for the first nine months of Fiscal 2024 totalled $770.1 million, a slight increase over the $767.8 million recorded last year for the same period. EBITDA2 rose by 2% to $245.6 million from $241.2 million for the same period last year. Cash flow from operations2 rose by 3% to $187.9 million for the first nine months of the year compared to $182.7 million for the corresponding period last year.
“I am pleased by the third quarter results announced today and by Astral’s ability to continue to achieve a strong performance in spite of the challenging advertising market in which we operate,” said Ian Greenberg, President and Chief Executive Officer. “Our relentless focus on maintaining our operational margins, commitment towards new product development and innovation, and optimal treasury management practices, enabled us to deliver another strong quarter of earnings growth.”
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Television
Revenue decline of 2% for the quarter (1% growth for the nine-month period);
EBITDA2 growth of 2% for the quarter (2% growth for the nine-month period2);
Launch, on July 4, of the new Cartoon Network service, available to over one million subscribers on Cogeco, Eastlink and Telus.
Radio
Revenue decline of 1% for the quarter (2% decline for the nine-month period);
EBITDA2 growth of 1% for the quarter (3% decline for the nine-month period).
Out-of-Home
Revenue growth of 3% for the quarter (8% growth for the nine-month period);
EBITDA2 growth of 2% for the quarter (11% growth for the nine-month period);
Announcement, on June 12, of the addition of two new Digital Network faces in the Greater Montréal region, bringing Astral’s popular national Digital Network to 41 faces;
Announcement, on June 19, of the launch of a new innovative urban Digital Columns network of 30 faces in the heart of downtown Montréal.
Corporate
Following the announcement of the Bell-Astral Transaction3, the Company’s dividend payment scheduled for August 2024 and activity under the Normal Course Issuer Bid have been suspended;
During the third quarter, the Company repaid $70.0 million of its long-term debt for a total of $100.0 million after nine months;
On May 24, Astral shareholders approved the acquisition of all of the Company’s issued and outstanding shares by BCE Inc.
On May 25, the Québec Superior Court approved the plan of arrangement under section 192 of the Canada Business Corporations Act relative to the Bell-Astral Transaction3 and declared that the plan of arrangement is fair to shareholders of Astral.
1. Excluding acquisition and other costs, as well as Bell-Astral transaction costs. See details in the “Additional IFRS and Non-IFRS Measures” in Appendix 1.
2. See “Additional IFRS and Non-IFRS Measures” in Appendix 1.
3. See the “Acquisition of Astral” section in the Management’s Discussion and Analysis.
ASTRAL MEDIA INC.
Interim Consolidated Statements of Earnings
for the periods ended May 31, 2024 and 2024
(in thousands of Canadian dollars except for per-share data)
(unaudited)
3 months 9 months
2012 2024 2024 2024
Revenues $ 265,522 $ 268,040 $ 770,125 $ 767,811
Operating expenses 176,365 180,172 524,523 526,562
Bell-Astral Transaction costs 6,232 – 6,232 –
Acquisition and other costs 554 4,407 4,865 4,407
Depreciation of property, plant and equipment 7,203 7,150 22,069 21,031
Amortization of other intangible and non-current assets 1,985 1,516 5,923 6,030
Financial expense, net 3,387 4,980 11,313 16,150
Earnings before income taxes 69,796 69,815 195,200 193,631
Income tax provision 18,608 20,275 53,251 56,346
Net earnings $ 51,188 $ 49,540 $ 141,949 $ 137,285
Earnings per share
– Basic $ 0.92 $ 0.88 $ 2.55 $ 2.43
– Diluted $ 0.91 $ 0.87 $ 2.53 $ 2.40
ASTRAL MEDIA INC.
Interim Consolidated Statements of Comprehensive Income
for the periods ended May 31, 2024 and 2024
(in thousands of Canadian dollars)
(unaudited)
3 months 9 months
2012 2024 2024 2024
Net earnings $ 51,188 $ 49,540 $ 141,949 $ 137,285
Other comprehensive income
Actuarial gain (loss) on employee future benefit plans, net of income tax expense (recovery) of ($1.9 million)
and ($1.4 million) respectively for the three months, and ($5.6 million) and $0.1 million respectively for
the nine months (5,271) (3,942) (15,634) 289
Change in fair value of derivatives designated as cash flow hedges, net of income tax expense (recovery) of
($0.3 million) and $0.4 million respectively for the three months, and $0.3 million and $1.8 million
respectively for the nine months (780) 1,030 853 4,734
Comprehensive income $ 45,137 $ 46,628 $ 127,168 $ 142,308
ASTRAL MEDIA INC.
Interim Consolidated Statements of Cash Flows
for the periods ended May 31, 2024 and 2024
(in thousands of Canadian dollars)
(unaudited)
3 months 9 months
2012 2024 2024 2024
OPERATING ACTIVITIES
Net earnings $ 51,188 $ 49,540 $ 141,949 $ 137,285
Non-cash items:
Stock-based compensation costs 5,681 1,759 9,705 5,975
Depreciation and amortization 9,188 8,666 27,992 27,061
Imputed interest, net 407 452 1,092 1,210
Amortization of deferred financing costs 272 172 749 515
Deferred tax expense 2,013 6,679 6,423 10,656
Cash flows from operations 68,749 67,268 187,910 182,702
Net change in non-cash operating items 8,666 14,294 (30,181) (5,762)
Cash provided by operating activities 77,415 81,562 157,729 176,940
INVESTING ACTIVITIES
Additions to property, plant and equipment (9,271) (11,959) (21,653) (29,646)
Additions to other intangible and non-current assets (899) (2,434) (3,195) (10,283)
Business acquisition, net of cash acquired (301) – (11,821) –
Cash used for investing activities (10,471) (14,393) (36,669) (39,929)
FINANCING ACTIVITIES
Repayment of long-term debt (70,000) (55,000) (100,000) (65,000)
Deferred financing costs – – (2,017) –
Stock options exercised 1,936 260 19,212 12,863
Shares repurchased – (20,485) (14,126) (51,925)
Dividends – (4) (27,923) (21,379)
Cash used for financing activities (68,064) (75,229) (124,854) (125,441)
Net change in cash (1,120) (8,060) (3,794) 11,570
Cash – beginning of period 19,979 31,175 22,653 11,545
Cash – end of period $ 18,859 $ 23,115 $ 18,859 $ 23,115
ASTRAL MEDIA INC.
Interim Consolidated Balance Sheets as at
(in thousands of Canadian dollars)
(unaudited)
May 31, August 31, September 1,
2012 2024 2024
ASSETS
Current
Cash $ 18,859 $ 22,653 $ 11,545
Accounts receivable 181,273 170,063 169,240
Program and film rights 105,564 105,385 106,723
Prepaid expenses and other current assets 29,239 29,096 29,451
334,935 327,197 316,959
Program and film rights 57,338 51,058 41,640
Property, plant and equipment 195,004 195,508 180,616
Broadcast licences 1,652,392 1,639,785 1,661,949
Goodwill 118,489 116,016 116,016
Other intangible and non-current assets 65,193 70,543 64,162
Non-current financial assets 16,227 19,852 22,848
Deferred tax assets 68,602 60,747 64,683
$ 2,508,180 $ 2,480,706 $ 2,468,873
LIABILITIES
Current
Accounts payable and accrued liabilities $ 130,837 $ 142,627 $ 143,780
Provisions 3,073 4,621 3,380
Income taxes payable 22,736 13,560 16,654
Program and film rights payable 74,791 77,033 64,908
Other current financial liabilities – 1,945 –
231,437 239,786 228,722
Long-term debt 422,865 524,133 588,447
Deferred tax liabilities 159,578 152,455 144,424
Program and film rights payable 10,447 8,839 12,668
Provisions 5,740 5,453 5,244
Other non-current liabilities 76,152 57,124 63,820
Other non-current financial liabilities 9,791 10,116 20,311
916,010 997,906 1,063,636
SHAREHOLDERS’ EQUITY
Capital stock 779,386 762,572 768,762
Contributed surplus 18,588 17,278 18,903
Retained earnings 794,753 704,360 624,609
Accumulated other comprehensive loss (557) (1,410) (7,037)
794,196 702,950 617,572
1,592,170 1,482,800 1,405,237
$ 2,508,180 $ 2,480,706 $ 2,468,873
ASTRAL MEDIA INC.
Business Segments
for the periods ended May 31, 2024 and 2024
(in thousands of Canadian dollars) (unaudited)
3 months 9 months
2012 2024 2024 2024
REVENUES
Television $ 151,488 $ 153,987 $ 445,601 $ 442,550
Radio 89,376 90,096 251,864 258,123
Out-of-Home 24,658 23,957 72,660 67,138
$ 265,522 $ 268,040 $ 770,125 $ 767,811
EBITDA(1)
Television $ 59,117 $ 58,207 $ 167,390 $ 164,104
Radio 29,456 29,227 75,443 77,710
Out-of-Home 8,199 8,072 24,344 21,938
Corporate (7,615) (7,638) (21,575) (22,503)
$ 89,157 $ 87,868 $ 245,602 $ 241,249
(1) See Appendix 1.
ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended May 31, 2024 and 2024
(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 acquisition and other costs and 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 May 31, 2024 and 2024 to EBITDA:
3 months 9 months
(in thousands of $) 2024 2024 2024 2024
Earnings before income taxes 69,796 69,815 195,200 193,631
Depreciation and amortization 9,188 8,666 27,992 27,061
Financial expense, net 3,387 4,980 11,313 16,150
Acquisition and other costs 554 4,407 4,865 4,407
Bell-Astral Transaction costs 6,232 – 6,232 –
EBITDA 89,157 87,868 245,602 241,249
Net earnings and diluted earnings per share before acquisition and other costs and 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 acquisition and other costs and 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 May 31 2024 and 2024 to net earnings and diluted earnings per share before acquisition and other costs and Bell-Astral Transaction costs:
3 months 9 months
(in thousands of $) 2024 2024 2024
Net earnings 51,188 49,540 141,949 137,285
Acquisition and other costs, net of income taxes 406 3,091 3,604 3,091
Bell-Astral Transaction costs, net of income taxes 4,570 – 4,570 –
Net earnings before acquisition and other costs and Bell-Astral Transaction costs 56,164 52,631 150,123 140,376
3 months 9 months
(in dollars) 2024 2024 2024 2024
Diluted earnings per share 0.91 0.87 2.53 2.40
Acquisition and other costs, net of income taxes 0.01 0.05 0.06 0.05
Bell-Astral Transaction costs, net of income taxes 0.08 – 0.08 –
Diluted earnings per share before acquisition and other costs and Bell-Astral Transaction costs 1.00 0.92 2.67 2.45
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.
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