Astral Media Inc. today reported its financial results for the second quarter ended February 29, 2024, which saw continued growth in revenues, EBITDA2, net earnings, EPS, and cash flow from operations2.
For the second quarter, consolidated revenues totalled $233.5 million, a slight increase over the $232.7 million recorded last year for the same period. For the second quarter, EBITDA2 rose by 3% to $66.0 million from $64.3 million for the same period last year. Consolidated net earnings for the second quarter grew by 10% to $38.2 million1 from $34.7 millionfor the same period last year, while diluted earnings per share grew 15% to $0.691 from $0.60 per share last year. Cash flow from operations2 rose by 3% to $50.2 million for the second quarter compared to $48.7 million for the corresponding period last year.
For the first half of the year, consolidated revenues totalled $504.6 million, an increase of 1% over the $499.8 million recorded last year for the same period. For the first six months of Fiscal 2024, EBITDA2rose by 2% to $156.4 million from $153.4 million for the same period last year. Consolidated net earnings for the first six months of Fiscal 2024 grew by 7%over last year to $94.0 million1 from $87.7 million, while diluted earnings per share grew 10% to $1.681 from $1.53 last year. Cash flow from operations2 rose by 3% to $119.2 million for the first six months of the year compared to $115.4 million for the corresponding period last year.
“I am very pleased by the Company’s growth in the second quarter and by our properties’ continued ability to compete aggressively in a market environment that remains challenging,” said Ian Greenberg, President and Chief Executive Officer. “Once again, consumers’ and advertisers’ appetite for our media brands, the soundness of our development strategy and the strength of our treasury management practices have enabled us to record Astral’s 62nd consecutive quarter of profitable growth.”
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Television
4% advertising revenue growth for the quarter (2% growth for the six-month period) and 1% growth in subscriber-related revenues for the quarter (2% growth for the six-month period);
Sequential increase in the number of pay-TV subscribers for The Movie Network and Super Écran to 1.869 million from 1.868 million for the three-month period, up 1,000 subscribers (increase of 10,000 subscribers for the six-month period to 1.869 million from 1.859 million);
EBITDA2 growth of 3% for the quarter (2% growth for the six-month period2);
Announcement, on December 22, 2024, of the launch of the Disney XD and Disney Junior (French) services on the Cogeco Cable distribution network.
Radio
Revenue decline of 3% for the quarter (3% decline for the six-month period);
EBITDA2 decline of 3% for the quarter (5% decline for the six-month period);
On January 4, 2024, the Company completed the acquisition of all outstanding shares of Shore Media Group Inc., a radio broadcaster in Vancouver, British Columbia, for a cash consideration of $13.4 million;
On February 1, 2024, launch of an all-new digital music service across all of the Company’s Top-40 format radio stations.
Out-of-Home
Revenue growth of 8% for the quarter (11% growth for the six-month period);
EBITDA2 growth of 19% for the quarter (16% growth for the six-month period);
On February 28, 2024, announcement of the introduction of the Near Field Communication technology to Astral Out-of-Home’s street furniture structures in Toronto and Montréal.
Corporate
Company announcement, on March 16, 2024, subsequent to the end of the second quarter, that it has entered into a definitive agreement with BCE Inc. for the sale of its business through the acquisition of all of its issued and outstanding shares3;
Following the announcement of the Bell-Astral Transaction, the Company’s dividend payment scheduled for August 2024 and activity under the Normal Course Issuer Bid have been suspended;
The repurchase of 191,900 Class A Shares for a consideration of $6.4 million in the second quarter under the Company’s NCIB;
The appointment of Robert Fortier as the Company’s Vice-President, Finance, and Chief Financial Officer.
The unaudited interim condensed consolidated financial statements with related notes and Management’s Discussion and Analysis are available on the Company’s website: www.astral.com.
1. Excluding the impact, for the second quarter of Fiscal 2024, of acquisition and other costs, totalling $4.3 million or $3.2 million net of income taxes
($0.06 per share, diluted) mainly related to the Shore FM acquisition. 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 February 29, 2024 and February 28, 2024 (in thousands of Canadian dollars except for per-share data) (unaudited) |
|||||||||||||
| 3 months | 6 months | ||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| Revenues | $ | 233,503 | $ | 232,678 | $ | 504,603 | $ | 499,771 | |||||
| Operating expenses | 167,459 | 168,403 | 348,158 | 346,390 | |||||||||
| Acquisition and other costs | 4,311 | – | 4,311 | – | |||||||||
| Depreciation of property, plant and equipment | 7,360 | 7,041 | 14,866 | 13,881 | |||||||||
| Amortization of other intangible and non-current assets | 1,976 | 2,301 | 3,938 | 4,514 | |||||||||
| Financial expense, net | 3,973 | 5,475 | 7,926 | 11,170 | |||||||||
| Earnings before income taxes | 48,424 | 49,458 | 125,404 | 123,816 | |||||||||
| Income tax provision | 13,419 | 14,768 | 34,643 | 36,071 | |||||||||
| Net earnings | $ | 35,005 | $ | 34,690 | $ | 90,761 | $ | 87,745 | |||||
| Earnings per share | |||||||||||||
| – Basic | $ | 0.63 | $ | 0.61 | $ | 1.64 | $ | 1.55 | |||||
| – Diluted | $ | 0.63 | $ | 0.60 | $ | 1.62 | $ | 1.53 | |||||
| ASTRAL MEDIA INC. Interim Consolidated Statements of Comprehensive Income for the periods ended February 29, 2024 and February 28, 2024 (in thousands of Canadian dollars) (unaudited) |
||||||||||||
| 3 months | 6 months | |||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||
| Net earnings | $ | 35,005 | $ | 34,690 | $ | 90,761 | $ | 87,745 | ||||
| Other comprehensive income | ||||||||||||
| Actuarial gain (loss) on employee future benefit plans, net of income tax expense (recovery) of ($1.3 million) and $0.7 million respectively for the three months, and ($3.7 million) and $1.5 million respectively for the six months |
(3,591) | 1,969 | (10,363) | 4,231 | ||||||||
| Change in fair value of derivatives designated as cash flow hedges, net of income tax expense of $0.5 million and $0.5 million respectively for the three months, and $0.6 million and $1.4 million respectively for the six months |
1,523 | 1,396 | 1,633 | 3,704 | ||||||||
| Comprehensive income | $ | 32,937 | $ | 38,055 | $ | 82,031 | $ | 95,680 | ||||
| ASTRAL MEDIA INC. Interim Consolidated Statements of Cash Flows for the periods ended February 29, 2024 and February 28, 2024 (in thousands of Canadian dollars) (unaudited) |
||||||||||||||
| 3 months | 6 months | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||
| OPERATING ACTIVITIES | ||||||||||||||
| Net earnings | $ | 35,005 | $ | 34,690 | $ | 90,761 | $ | 87,745 | ||||||
| Non-cash items: | ||||||||||||||
| Stock-based compensation costs | 1,872 | 1,723 | 4,024 | 4,216 | ||||||||||
| Depreciation and amortization | 9,336 | 9,342 | 18,804 | 18,395 | ||||||||||
| Imputed interest, net | 426 | 449 | 685 | 758 | ||||||||||
| Amortization of deferred financing costs | 272 | 172 | 477 | 343 | ||||||||||
| Deferred tax expense | 3,288 | 2,327 | 4,410 | 3,977 | ||||||||||
| Cash flow from operations | 50,199 | 48,703 | 119,161 | 115,434 | ||||||||||
| Net change in non-cash operating items | 6,260 | 10,481 | (38,847) | (20,056) | ||||||||||
| Cash provided by operating activities | 56,459 | 59,184 | 80,314 | 95,378 | ||||||||||
| INVESTING ACTIVITIES | ||||||||||||||
| Additions to property, plant and equipment | (6,808) | (7,693) | (12,382) | (17,687) | ||||||||||
| Additions to other intangible and non-current assets | (1,344) | (5,061) | (2,296) | (7,849) | ||||||||||
| Business acquisition, net of cash acquired | (11,520) | – | (11,520) | – | ||||||||||
| Cash used for investing activities | (19,672) | (12,754) | (26,198) | (25,536) | ||||||||||
| FINANCING ACTIVITIES | ||||||||||||||
| Repayment of long-term debt | (20,000) | – | (30,000) | (10,000) | ||||||||||
| Deferred financing costs | (6) | – | (2,017) | – | ||||||||||
| Stock options exercised | 14,166 | 7,787 | 17,276 | 12,603 | ||||||||||
| Shares repurchased | (6,369) | (31,440) | (14,126) | (31,440) | ||||||||||
| Dividends | (27,919) | (21,371) | (27,923) | (21,375) | ||||||||||
| Cash used for financing activities | (40,128) | (45,024) | (56,790) | (50,212) | ||||||||||
| Net change in cash | (3,341) | 1,406 | (2,674) | 19,630 | ||||||||||
| Cash – beginning of period | 23,320 | 29,769 | 22,653 | 11,545 | ||||||||||
| Cash – end of period | $ | 19,979 | $ | 31,175 | $ | 19,979 | $ | 31,175 | ||||||
| ASTRAL MEDIA INC. Interim Consolidated Balance Sheets as at (in thousands of Canadian dollars) (unaudited) |
||||||||||
| February 29, 2012 |
August 31, 2011 |
September 1, 2010 |
||||||||
| ASSETS | ||||||||||
| Current | ||||||||||
| Cash | $ | 19,979 | $ | 22,653 | $ | 11,545 | ||||
| Accounts receivable | 163,086 | 170,063 | 169,240 | |||||||
| Program and film rights | 116,735 | 105,385 | 106,723 | |||||||
| Prepaid expenses and other current assets | 33,817 | 29,096 | 29,451 | |||||||
| 333,617 | 327,197 | 316,959 | ||||||||
| Program and film rights | 53,074 | 51,058 | 41,640 | |||||||
| Property, plant and equipment | 192,893 | 195,508 | 180,616 | |||||||
| Broadcast licences | 1,650,410 | 1,639,785 | 1,661,949 | |||||||
| Goodwill | 121,067 | 116,016 | 116,016 | |||||||
| Other intangible and non-current assets | 66,484 | 70,543 | 64,162 | |||||||
| Non-current financial assets | 16,101 | 19,852 | 22,848 | |||||||
| Deferred tax assets | 62,234 | 60,747 | 64,683 | |||||||
| $ | 2,495,880 | $ | 2,480,706 | $ | 2,468,873 | |||||
| LIABILITIES | ||||||||||
| Current | ||||||||||
| Accounts payable and accrued liabilities | $ | 118,924 | $ | 142,627 | $ | 143,780 | ||||
| Provisions | 2,867 | 4,621 | 3,380 | |||||||
| Income taxes payable | 10,643 | 13,560 | 16,654 | |||||||
| Program and film rights payable | 77,915 | 77,033 | 64,908 | |||||||
| Other current financial liabilities | 241 | 1,945 | – | |||||||
| 210,590 | 239,786 | 228,722 | ||||||||
| Long-term debt | 492,593 | 524,133 | 588,447 | |||||||
| Deferred tax liabilities | 153,314 | 152,455 | 144,424 | |||||||
| Program and film rights payable | 10,639 | 8,839 | 12,668 | |||||||
| Provisions | 5,876 | 5,453 | 5,244 | |||||||
| Other non-current liabilities | 70,435 | 57,124 | 63,820 | |||||||
| Other non-current financial liabilities | 8,741 | 10,116 | 20,311 | |||||||
| 952,188 | 997,906 | 1,063,636 | ||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||
| Capital stock | 777,074 | 762,572 | 768,762 | |||||||
| Contributed surplus | 17,559 | 17,278 | 18,903 | |||||||
| Retained earnings | 748,836 | 704,360 | 624,609 | |||||||
| Accumulated other comprehensive income (loss) | 223 | (1,410) | (7,037) | |||||||
| 749,059 | 702,950 | 617,572 | ||||||||
| 1,543,692 | 1,482,800 | 1,405,237 | ||||||||
| $ | 2,495,880 | $ | 2,480,706 | $ | 2,468,873 | |||||
| ASTRAL MEDIA INC. Business Segments for the periods ended February 29, 2024 and February 28, 2024 (in thousands of Canadian dollars) (unaudited) |
|||||||||||
| 3 months | 6 months | ||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||
| REVENUES | |||||||||||
| Television | $ | 140,561 | $ | 138,879 | $ | 294,113 | $ | 288,563 | |||
| Radio | 74,197 | 76,396 | 162,488 | 168,027 | |||||||
| Out-of-Home | 18,745 | 17,403 | 48,002 | 43,181 | |||||||
| $ | 233,503 | $ | 232,678 | $ | 504,603 | $ | 499,771 | ||||
| EBITDA(1) | |||||||||||
| Television | $ | 49,665 | $ | 48,426 | $ | 108,273 | $ | 105,897 | |||
| Radio | 18,396 | 18,970 | 45,987 | 48,483 | |||||||
| Out-of-Home | 4,310 | 3,634 | 16,145 | 13,866 | |||||||
| Corporate | (6,327) | (6,755) | (13,960) | (14,865) | |||||||
| $ | 66,044 | $ | 64,275 | $ | 156,445 | $ | 153,381 | ||||
| (1) See Appendix 1. |
ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended February 29, 2024 and February 28, 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 MEASURE
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 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 consolidated statements of earnings for the periods ended February 29, 2024 and February 28, 2024 to EBITDA:
| 3 months | 6 months | ||||||
| (in thousands of $) | 2012 | 2011 | 2012 | 2011 | |||
| Earnings before income taxes | 48,424 | 49,458 | 125,404 | 123,816 | |||
| Depreciation and amortization | 9,336 | 9,342 | 18,804 | 18,395 | |||
| Financial expense, net | 3,973 | 5,475 | 7,926 | 11,170 | |||
| Acquisition and other costs | 4,311 | – | 4,311 | – | |||
| EBITDA | 66,044 | 64,275 | 156,445 | 153,381 | |||
Net earnings and diluted earnings per share before acquisition and other 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 as they are not considered to be in the ordinary course of business.
The following tables reconcile IFRS measures disclosed in the consolidated statements of earnings for the periods ended February 29, 2024 and February 28, 2024 to net earnings and diluted earnings per share before acquisition and other costs:
| 3 months | 6 months | ||||||
| (in thousands of $) | 2012 | 2011 | 2012 | 2011 | |||
| Net earnings | 35,005 | 34,690 | 90,761 | 87,745 | |||
| Acquisition and other costs, net of income taxes | 3,198 | – | 3,198 | – | |||
| Net earnings before acquisition and other costs | 38,203 | 34,690 | 93,959 | 87,745 | |||
| 3 months | 6 months | ||||||
| (in dollars) | 2012 | 2011 | 2012 | 2011 | |||
| Diluted earnings per share | 0.63 | 0.60 | 1.62 | 1.53 | |||
| Acquisition and other costs, net of income taxes | 0.06 | – | 0.06 | – | |||
| Diluted earnings per share before acquisition and other costs | 0.69 | 0.60 | 1.68 | 1.53 | |||
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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