Astral Media Inc. today reported solid financial results for the fourth quarter and the year ended August 31, 2024 and delivered continued growth in revenues, EBITDA2, net earnings, EPS, and cash flow from operations2.
In Fiscal 2024, consolidated net earnings1 grew 9% over last year to $204.4 million from $188.0 million, while diluted earnings per share1 grew 10% to $3.64 from $3.30 last year. EBITDA2 rose 4% to $331.2 million from $318.4 million for the same period last year. Consolidated revenues for Fiscal 2024 totalled $1,021.9 million, a 1% increase over the $1,015.4 million recorded last year for the same period. Cash flow from operations2 rose a healthy 5% to $259.0 million for the year compared to $246.5 million for the corresponding period last year.
In the fourth quarter, consolidated net earnings1 grew 14% over last year to $54.3 million from $47.7 million, while diluted earnings per share1 grew 13% to $0.96 from $0.85 last year. EBITDA2 rose 11% to $85.6 million from $77.2 million for the same period last year. Consolidated revenues in the fourth quarter totalled $251.8 million, a 2% increase over the $247.6 million reported last year for the same period. Cash flow from operations2 rose 11% to $71.1 million for the fourth quarter compared to $63.8 million for the corresponding period last year.
“I am very pleased with the solid performance delivered by our business units in Fiscal 2024, particularly with the strong finish in the fourth quarter, consolidating the Company’s 16th consecutive year of profitable growth,” said Ian Greenberg, President and Chief Executive Officer. “We remain fully committed to maintain the same financial discipline that allowed the Company to grow in Fiscal 2024 and to continue to invest in content and new products in order to offer the highest possible quality of products and services.”
Bell-Astral Transaction3
On March 16, 2024, the Company announced that it entered into a definitive agreement with BCE Inc. for the sale of its business through the acquisition of all of its issued and outstanding shares. The transaction is valued at approximately $3.38 billion, including an estimated net debt of $380.0 million. The transaction is subject to closing conditions, including regulatory approvals from the CRTC and the Competition Bureau. On October 18, 2024 the CRTC issued its decision on Bell’s application for authority to acquire and change the effective control of the Company and denied Bell’s application. On October 22, 2024, Bell submitted its request that the Federal Cabinet issue a policy direction to the CRTC, under Section 7 of the Broadcasting Act, that directs the CRTC to follow its existing policies when reviewing change of control transactions in broadcasting. Bell stated that with such a Cabinet policy direction in place, it would then re-submit a Change of Control Application to the CRTC. There can be no assurance that the transaction will occur, or that it will occur on the terms and conditions currently contemplated.
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Television
Revenue growth of 1% for the year (1% for the fourth quarter);
EBITDA2 growth of 2% for the year (1% for the fourth quarter);
In July 2024, launch of the new Cartoon Network service, currently available to 2.3 million subscribers on Cogeco, Eastlink, Telus and Bell;
Radio
Revenue decrease of 1% for the year (2% growth for the fourth quarter);
EBITDA2 growth of 4% for the year (23% growth for the fourth quarter);
In January 2024, Astral completed the acquisition of all outstanding shares of Shore Media Group Inc., a radio broadcaster in Vancouver, BC, for a consideration of $13.4 million;
In February 2024, launch of Astral Radio’s all-new digital music service across NRJ and Virgin Radio networks.
Out-of-Home
Revenue growth of 8% for the year (6% for the fourth quarter);
EBITDA2 growth of 10% for the year (9% for the fourth quarter);
In June 2024, Astral Out-of-Home announced the addition of two new digital advertising faces in the greater Montréal region, bringing the total of faces in Astral’s Digital Network to 41;
Subsequent to year-end, launch by Astral Out-of-Home of a brand new network of 30 urban Digital Columns in the heart of downtown Montréal.
Corporate
In October 2024, the Company established, in addition to its existing credit facility, a $700.0 million unsecured five-year revolving credit facility and entered into two new interest-rate swap agreements to hedge its exposure to interest rate fluctuations;
During the year, the Company repaid $133.0 million of its long-term debt and repurchased 423,800 Class A shares for a total consideration of $14.2 million.
Under the terms of the Bell-Astral Transaction3, the Company’s dividend payment scheduled for August 2024 and activity under the Company’s normal course issuer bid have been suspended;
The audited consolidated financial statements and related notes and the Management’s Discussion and Analysis are available on the Company’s website: www.astral.com. There will be a conference call with analysts and media at 2:30 p.m. (ET) on Wednesday, October 31, 2024. To access the conference call dial 1-800-731-5319. The conference call will also be broadcast live and archived for a three-month period on the Astral website at www.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.
Founded in 1961, 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 www.astral.com.
1. Excluding acquisition and other costs, Bell-Astral transaction costs, impairment of broadcast licences and deferred income tax expense resulting from income tax rate change. See “Additional IFRS and Non-IFRS Measures” in Appendix 1.
2. See “Additional IFRS and Non-IFRS Measures” in Appendix 1.
3. See the “Bell-Astral Transaction” section in the Management’s Discussion and Analysis.
ASTRAL MEDIA INC.
Consolidated Statements of Earnings
for the periods ended August 31, 2024 and 2024
(in thousands of Canadian dollars except for per-share data)
(unaudited)
3 months 12 months
2012 2024 2024 2024
Revenues $ 251,801 $ 247,620 $ 1,021,926 $ 1,015,431
Operating expenses 166,231 170,455 690,754 697,017
Acquisition and other costs 16 – 4,881 4,407
Depreciation of property, plant and equipment 4,599 6,970 26,668 28,001
Amortization of other intangible and non-current assets 2,733 2,224 8,656 8,254
Financial expense, net 2,885 4,587 14,198 20,737
Impairment charge on broadcast licences, net 21,085 22,164 21,085 22,164
Bell-Astral Transaction costs 6,557 – 12,789 –
Earnings before income taxes 47,695 41,220 242,895 234,851
Income tax expense before undernoted 19,206 15,728 72,457 72,074
Deferred tax recovery resulting from the impairment charge on broadcast licences (5,136) (4,293) (5,136) (4,293)
Deferred tax expense resulting from tax rate changes 2,267 – 2,267 –
16,337 11,435 69,588 67,781
Net earnings $ 31,358 $ 29,785 $ 173,307 $ 167,070
Earnings per share
– Basic $ 0.56 $ 0.53 $ 3.11 $ 2.96
– Diluted $ 0.55 $ 0.53 $ 3.08 $ 2.93
ASTRAL MEDIA INC.
Consolidated Statements of Comprehensive Income
for the periods ended August 31, 2024 and 2024
(in thousands of Canadian dollars)
(unaudited)
3 months 12 months
2012 2024 2024 2024
Net earnings $ 31,358 $ 29,785 $ 173,307 $ 167,070
Other comprehensive income
Actuarial loss on employee future benefit plans, net of deferred tax recovery of $2.5 million and
$0.6 million respectively for the three months and $8.1 million and $0.5 million respectively for
the twelve months (6,641) (1,596) (22,275) (1,307)
Change in fair value of derivatives designated as cash flow hedges, net of deferred tax expense of
$0.3 million and $0.3 million respectively for the three months and $0.6 million and $2.1 million
respectively for the twelve months 687 893 1,540 5,627
Comprehensive income $ 25,404 $ 29,082 $ 152,572 $ 171,390
ASTRAL MEDIA INC.
Consolidated Statements of Cash Flows
for the periods ended August 31, 2024 and 2024
(in thousands of Canadian dollars)
(unaudited)
3 months 12 months
2012 2024 2024 2024
OPERATING ACTIVITIES
Net earnings $ 31,358 $ 29,785 $ 173,307 $ 167,070
Non-cash items:
Stock-based compensation costs 1,539 1,124 11,244 7,099
Depreciation and amortization 7,332 9,194 35,324 36,255
Imputed interest, net 417 428 1,509 1,638
Amortization of deferred financing costs 273 171 1,022 686
Impairment charge on broadcast licences, net 21,085 22,164 21,085 22,164
Deferred tax expense 6,784 909 13,207 11,565
Deferred tax expense resulting from tax rate changes 2,267 – 2,267 –
Cash flows from operations 71,055 63,775 258,965 246,477
Additional pension plan contributions (6,344) (1,813) (6,344) (1,813)
Net change in non-cash operating items (11,004) 4,297 (41,185) (1,465)
Cash provided by operating activities 53,707 66,259 211,436 243,199
INVESTING ACTIVITIES
Additions to property, plant and equipment (15,442) (17,002) (37,095) (46,648)
Additions to other intangible and non-current assets (3,187) (3,225) (6,382) (13,508)
Business acquisition, net of cash acquired (150) – (11,971) –
Contingent consideration relating to a previous business acquisition – (8,042) – (8,042)
Cash used for investing activities (18,779) (28,269) (55,448) (68,198)
FINANCING ACTIVITIES
Repayment of long-term debt (33,000) – (133,000) (65,000)
Deferred financing costs – – (2,017) –
Stock options exercised 105 655 19,317 13,518
Shares repurchased – (18,212) (14,126) (70,137)
Dividends – (20,895) (27,923) (42,274)
Cash used for financing activities (32,895) (38,452) (157,749) (163,893)
Net change in cash 2,033 (462) (1,761) 11,108
Cash – beginning of period 18,859 23,115 22,653 11,545
Cash – end of period $ 20,892 $ 22,653 $ 20,892 $ 22,653
ASTRAL MEDIA INC.
Consolidated Balance Sheets as at
(in thousands of Canadian dollars)
August 31,
2012 August 31,
2011 September 1,
2010
ASSETS
Current
Cash $ 20,892 $ 22,653 $ 11,545
Accounts receivable 174,384 170,063 169,240
Program and film rights 114,753 105,385 106,723
Prepaid expenses and other current assets 29,007 29,096 29,451
339,036 327,197 316,959
Program and film rights 51,208 51,058 41,640
Property, plant and equipment 210,035 195,508 180,616
Broadcast licences 1,631,307 1,639,785 1,661,949
Goodwill 118,489 116,016 116,016
Other intangible and non-current assets 64,750 70,543 64,162
Non-current financial assets 16,084 19,852 22,848
Deferred tax assets 34,582 34,954 45,292
$ 2,465,491 $ 2,454,913 $ 2,449,482
LIABILITIES
Current
Accounts payable and accrued liabilities $ 141,729 $ 141,893 $ 143,156
Provisions 5,319 5,355 4,004
Income taxes payable 15,531 13,560 16,654
Program and film rights payable 63,619 77,033 64,908
Other current financial liabilities – 1,945 –
226,198 239,786 228,722
Long-term debt 390,138 524,133 588,447
Deferred tax liabilities 131,377 126,662 125,033
Program and film rights payable 7,446 8,839 12,668
Provisions 6,717 5,453 5,244
Other non-current liabilities 76,556 57,124 63,820
Other non-current financial liabilities 8,466 10,116 20,311
846,898 972,113 1,044,245
SHAREHOLDERS’ EQUITY
Capital stock 778,548 762,572 768,762
Contributed surplus 20,445 17,278 18,903
Retained earnings 819,470 704,360 624,609
Accumulated other comprehensive income (loss) 130 (1,410) (7,037)
819,600 702,950 617,572
1,618,593 1,482,800 1,405,237
$ 2,465,491 $ 2,454,913 $ 2,449,482
ASTRAL MEDIA INC.
Business Segments
for the periods ended August 31, 2024 and 2024
(in thousands of Canadian dollars) (unaudited)
3 months 12 months
2012 2024 2024 2024
REVENUES
Television $ 140,425 $ 139,681 $ 586,026 $ 582,231
Radio 84,129 82,177 335,993 340,300
Out-of-Home 27,247 25,762 99,907 92,900
$ 251,801 $ 247,620 $ 1,021,926 $ 1,015,431
EBITDA(1)
Television $ 47,591 $ 47,280 $ 214,981 $ 211,384
Radio 32,759 26,717 108,202 104,427
Out-of-Home 9,635 8,820 33,979 30,758
Corporate (4,415) (5,652) (25,990) (28,155)
$ 85,570 $ 77,165 $ 331,172 $ 318,414
___________________
(1) See Appendix 1.
ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended August 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 additional pension plan contributions and 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, Bell-Astral Transaction costs and impairment of broadcast licences 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 audited consolidated statements of earnings for the periods ended August 31, 2024 and 2024 to EBITDA:
3 months 12 months
(in thousands of $) 2024 2024 2024 2024
Earnings before income taxes 47,695 41,220 242,895 234,851
Depreciation and amortization 7,332 9,194 35,324 36,255
Financial expense, net 2,885 4,587 14,198 20,737
Acquisition and other costs 16 – 4,881 4,407
Bell-Astral Transaction costs 6,557 – 12,789 –
Impairment of broadcast licences, net 21,085 22,164 21,085 22,164
EBITDA 85,570 77,165 331,172 318,414
Earnings before income taxes, excluding impairment of broadcast licences. This measure provides an indication of the Company’s ability to generate earnings and cash flows from its ongoing operations, by excluding the non-cash impairment of broadcast licences. The following table reconciles IFRS measures disclosed in the audited consolidated statements of earnings for the periods ended August 31, 2024 and 2024 to earnings before income taxes, excluding impairment of broadcast licences:
3 months 12 months
(in thousands of $) 2024 2024 2024 2024
Earnings before income taxes 47,695 41,220 242,895 234,851
Impairment of broadcast licences, net 21,085 22,164 21,085 22,164
Earnings before income taxes, excluding impairment of broadcast licences 68,780 63,384 263,980 257,015
Net earnings and diluted earnings per share before acquisition and other costs, Bell-Astral Transaction costs, impairment of broadcast licences and tax rate changes. 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, Bell-Astral Transaction costs, impairment of broadcast licences and tax rate changes as they are not considered to be in the ordinary course of business.
The following tables reconcile IFRS measures disclosed in the audited consolidated statements of earnings for the periods ended August 31 2024 and 2024 to net earnings and diluted earnings per share before acquisition and other costs, Bell-Astral Transaction costs, impairment of broadcast licences and tax rate changes:
3 months 12 months
(in thousands of $) 2024 2024 2024 2024
Net earnings 31,358 29,785 173,307 167,070
Acquisition and other costs, net of income taxes 12 – 3,616 3,091
Bell-Astral Transaction costs, net of income taxes 4,713 – 9,272 –
Impairment of broadcast licences, net of income taxes 15,949 17,871 15,949 17,871
Deferred tax expense resulting from tax rate changes 2,267 – 2,267 –
Net earnings before acquisition and other costs, Bell-Astral Transaction costs,
impairment of broadcast licences and tax rate changes 54,299 47,656 204,411 188,032
3 months 12 months
(in dollars) 2024 2024 2024 2024
Diluted earnings per share 0.55 0.53 3.08 2.93
Acquisition and other costs, net of income taxes – – 0.07 0.05
Bell-Astral Transaction costs, net of income taxes 0.09 – 0.17 –
Impairment of broadcast licences, net of income taxes 0.28 0.32 0.28 0.32
Deferred tax expense resulting from tax rate changes 0.04 – 0.04 –
Diluted earnings per share before acquisition and other cost, Bell-Astral Transaction
costs, impairment of broadcast licences and tax rate changes 0.96 0.85 3.64 3.30
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