“This quarter marks an exciting milestone in our transformation, as we report the combined results of the new Corus for the first time,” said Doug Murphy, President and Chief Executive Officer. “We are pleased with the tremendous progress made by our talented and committed team as they move quickly to realize the benefits of our new scale and maximize cost synergies. Moving forward, our focus will be on the pursuit of revenue and cost synergies, strong execution on integration and advancing our strategic priorities, which will deliver value to our shareholders over the longer term.”
|
Financial Highlights |
|||||||
|
Three months ended |
Nine months ended |
||||||
|
May 31, |
May 31, |
||||||
|
(unaudited – in thousands of Canadian dollars except per share amounts) |
2022 |
2022 |
2022 |
2022 |
|||
|
Revenues |
|||||||
|
Television |
321,176 |
162,767 |
668,326 |
499,432 |
|||
|
Radio |
39,648 |
40,354 |
118,521 |
122,284 |
|||
|
360,824 |
203,121 |
786,847 |
621,716 |
||||
|
Segment profit(1) |
|||||||
|
Television |
127,968 |
64,075 |
297,408 |
207,554 |
|||
|
Radio |
9,665 |
9,457 |
27,650 |
28,504 |
|||
|
Corporate |
(7,447) |
(4,833) |
(19,415) |
(14,364) |
|||
|
130,186 |
68,699 |
305,643 |
221,694 |
||||
|
Net income (loss) attributable to shareholders |
(15,766) |
(8,109) |
127,786 |
(42,989) |
|||
|
Adjusted net income attributable to shareholders(1) (2) |
52,950 |
31,550 |
116,378 |
111,955 |
|||
|
Basic earnings (loss) per share |
$ (0.10) |
$ (0.09) |
$ 1.16 |
$ (0.50) |
|||
|
Adjusted basic earnings per share(1) (2) |
$ 0.34 |
$ 0.36 |
$ 1.05 |
$ 1.30 |
|||
|
Diluted earnings (loss) per share |
$ (0.10) |
$ (0.09) |
$ 1.15 |
$ (0.50) |
|||
|
Free cash flow(1) |
67,947 |
63,419 |
126,768 |
156,043 |
|||
|
(1) |
Segment profit, adjusted segment profit, adjusted net income attributable to shareholders, adjusted basic earnings per share, and free cash flow do not have standardized meanings prescribed by IFRS. The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the Fiscal 2022 Report to Shareholders. |
||||
|
(2) |
For the three months ended May 31, 2022, adjusted net income attributable to shareholders excludes business acquisition, integration and restructuring charges of $29.3 million ($0.15 per share) and debt refinancing costs of $61.2 million ($0.29 per share). For the nine months ended May 31, 2022, adjusted net income attributable to shareholders represents net income attributable to shareholders adjusted to include amortization of disposed Pay TV programming assets of $15.6 million ($0.11 per share) and excludes business acquisition, integration and restructuring charges of $37.6 million ($0.29 per share), a gain on the disposal of the Pay TV disposal group of $86.2 million ($0.70 per share) and debt refinancing costs of $61.2 million ($0.41 per share). For the three months ended May 31, 2022, adjusted net income attributable to shareholders excludes intangible asset impairment charges of $51.8 million ($0.44 per share) and business acquisition, integration and restructuring charges of $2.7 million ($0.02 per share). For the nine months ended May 31, 2022, adjusted net income attributable to shareholders excludes radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), intangible asset impairment charges of $51.8 million ($0.44 per share), business acquisition, integration and restructuring charges of $10.7 million ($0.09 per share), offset by a gain on distribution of investment of $17.0 million ($0.17 per share). |
||||
Consolidated Results from Operations
Commencing April 1, 2022, 100% of the operating results of Shaw Media Inc. (“Shaw Media”), as well as its assets and liabilities, have been fully consolidated as a business combination which occurred in accordance with IFRS 3 – Business Combinations and, as a result, Shaw Media has been accounted for by applying the acquisition method as of that date. Shaw Media has been reported as part of the Television segment (further discussion is provided in note 17 of the Company’s interim condensed consolidated financial statements for the period ended May 31, 2022).
In addition, for fiscal 2022, certain of Corus’ Pay Television business’ (“Pay TV”) assets and liabilities were reclassified as held for disposal effective November 19, 2022 as a consequence of meeting the definition of assets held for sale under IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations. The disposal group, Pay TV, did not qualify for discontinued operations presentation and, as a result, its operating results remain in continuing operations in the consolidated statement of income and comprehensive income for the nine months ended May 31, 2022. However, intangible assets classified as held for disposal ceased being amortized effective November 19, 2022 and as a consequence, amortization of program and film rights in the Television segment for the nine months ended May 31, 2022 is approximately $15.6 million lower than it would have been had amortization on these assets not ceased. On February 29, 2022, the Pay TV disposition was completed and the related proceeds and gain associated with this disposal group were recognized (further discussion is provided in note 17 of the Company’s interim condensed consolidated financial statements for the period ended May 31, 2022).
Consolidated revenues for the three months ended May 31, 2022 were $360.8 million, up 78% from $203.1 million last year. Consolidated segment profit was $130.2 million, up 90% from $68.7 million last year. Net loss attributable to shareholders for the quarter was $15.8 million ($0.10 loss per share basic and diluted), as compared to $8.1 million ($0.09 loss per share basic and diluted) last year. Net loss attributable to shareholders for the third quarter of fiscal 2022 includes business acquisition, integration and restructuring costs of $29.3 million ($0.15 per share) and debt refinancing costs of $61.2 million ($0.29 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $53.0 million ($0.34 per share basic) in the quarter. Net loss attributable to shareholders for prior year quarter includes intangible asset impairment charges of $51.8 million($0.44 per share) and business acquisition, integration and restructuring costs of $2.7 million ($0.02 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $31.6 million (0.36 per share) in the prior year quarter.
Consolidated revenues for the nine months ended May 31, 2022 were $786.8 million, up 27% from $621.7 million last year. Consolidated segment profit was $305.6 million, up 38% from $221.7 million last year, however, excludes amortization of disposed Pay TV program and film rights of $15.6 million. Adjusting for this, segment profit would be $290.0 million, up 31% from last year. Net income attributable to shareholders for the nine months ended May 31, 2022 was $127.8 million ($1.16 per share), compared to a net loss of $43.0 million ($0.50 loss per share) last year. Net income attributable to shareholders for the nine months ended May 31, 2022includes business acquisition, integration and restructuring costs of $37.6 million ($0.29 per share), debt refinancing costs of $61.2 million ($0.41 per share), a gain relating to the discontinuation of the Pay TV business and the disposal of certain assets of $86.2 million ($0.70 per share), and excludes amortization of disposed of Pay TV program and film rights of $15.6 million ($0.11 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $116.4 million ($1.05 per share basic) for the current year-to-date. Net loss attributable to shareholders for the nine months ended May 31, 2022 includes Radio broadcast license and goodwill impairment charges of $130.0 million ($1.44 per share), intangible asset impairment charges of $51.8 million ($0.44 per share) and business acquisition, integration and restructuring costs of $10.7 million ($0.09 per share), offset by a gain on disposition of investment of $17.0 million ($0.17 per share). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $112.0 million ($1.30 per share) for the prior year-to- date.
Operational Results – Highlights
Television
Radio
|
(1) |
Segment profit, adjusted segment profit, segment profit margin and adjusted segment profit margin do not have standardized meanings prescribed by IFRS. The Company reports on these because they are key measures used to evaluate performance. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2022 Report to Shareholders. |
|
(2) |
For the nine months ended May 31, 2022, segment profit has been adjusted to include amortization of disposed Pay TV program and film rights of $15.6 million. |
Corus Entertainment Inc. reports in Canadian dollars.
The unaudited consolidated financial statements and accompanying notes for the three and nine months ended May 31, 2022 and Management’s Discussion and Analysis are available on the Company’s website at www.corusent.com in the Investor Relations section.
|
CORUS ENTERTAINMENT INC. |
||||
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
||||
|
As at May 31, |
As at August 31, |
|||
|
(unaudited – in thousands of Canadian dollars) |
2022 |
2022 |
||
|
ASSETS |
||||
|
Current |
||||
|
Cash and cash equivalents |
67,637 |
37,422 |
||
|
Accounts receivable |
444,586 |
164,600 |
||
|
Income taxes recoverable |
— |
12,439 |
||
|
Prepaid expenses and other |
26,095 |
13,855 |
||
|
Total current assets |
538,318 |
228,316 |
||
|
Tax credits receivable |
24,363 |
25,958 |
||
|
Investments and other assets |
43,086 |
42,958 |
||
|
Property, plant and equipment |
281,194 |
139,140 |
||
|
Program and film rights |
698,582 |
315,899 |
||
|
Film investments |
50,004 |
36,549 |
||
|
Intangibles |
2,058,270 |
974,615 |
||
|
Goodwill |
2,432,044 |
827,859 |
||
|
Deferred income tax assets |
69,140 |
40,815 |
||
|
6,195,001 |
2,632,109 |
|||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
|
Current |
||||
|
Accounts payable and accrued liabilities |
453,022 |
210,971 |
||
|
Current portion of long-term debt |
115,000 |
150,000 |
||
|
Income taxes payable |
15,884 |
— |
||
|
Provisions |
14,598 |
8,930 |
||
|
Total current liabilities |
598,504 |
369,901 |
||
|
Long-term debt |
2,107,484 |
651,002 |
||
|
Other long-term liabilities |
526,192 |
138,833 |
||
|
Deferred income tax liabilities |
447,397 |
252,462 |
||
|
Total liabilities |
3,679,577 |
1,412,198 |
||
|
SHAREHOLDERS’ EQUITY |
||||
|
Share capital |
2,138,166 |
994,571 |
||
|
Contributed surplus |
10,140 |
9,471 |
||
|
Retained earnings |
205,786 |
191,182 |
||
|
Accumulated other comprehensive income |
2,074 |
7,353 |
||
|
Total equity attributable to shareholders |
2,356,166 |
1,202,577 |
||
|
Equity attributable to non-controlling interest |
159,258 |
17,334 |
||
|
Total shareholders’ equity |
2,515,424 |
1,219,911 |
||
|
6,195,001 |
2,632,109 |
|||
|
CORUS ENTERTAINMENT INC. |
||||||
|
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
||||||
|
Three months ended |
Nine months ended |
|||||
|
May 31, |
May 31, |
|||||
|
(unaudited – in thousands of Canadian dollars except per share amounts) |
2022 |
2022 |
2022 |
2022 |
||
|
Revenues |
360,824 |
203,121 |
786,847 |
621,716 |
||
|
Direct cost of sales, general and administrative expenses |
230,638 |
134,422 |
481,204 |
400,022 |
||
|
Depreciation and amortization |
18,776 |
6,056 |
40,384 |
17,919 |
||
|
Interest expense |
33,697 |
13,140 |
71,074 |
38,567 |
||
|
Broadcast license and goodwill impairment |
— |
— |
— |
130,000 |
||
|
Intangible asset impairment |
— |
51,786 |
— |
51,786 |
||
|
Debt refinancing costs |
61,248 |
— |
61,248 |
— |
||
|
Business acquisition, integration and restructuring costs |
29,264 |
2,693 |
37,639 |
10,695 |
||
|
Gain on disposition |
— |
— |
(86,151) |
— |
||
|
Other expense (income), net |
(2,018) |
1,405 |
7,036 |
(12,691) |
||
|
Income (loss) before income taxes |
(10,781) |
(6,381) |
174,413 |
(14,582) |
||
|
Income tax expense |
120 |
486 |
39,357 |
24,962 |
||
|
Net income (loss) for the period |
(10,901) |
(6,867) |
135,056 |
(39,544) |
||
|
Net income (loss) attributable to: |
||||||
|
Shareholders |
(15,766) |
(8,109) |
127,786 |
(42,989) |
||
|
Non-controlling interest |
4,865 |
1,242 |
7,270 |
3,445 |
||
|
(10,901) |
(6,867) |
135,056 |
(39,544) |
|||
|
Earnings (loss) per share attributable to shareholders: |
||||||
|
Basic |
$ (0.10) |
$ (0.09) |
$ 1.16 |
$ (0.50) |
||
|
Diluted |
$ (0.10) |
$ (0.09) |
$ 1.15 |
$ (0.50) |
||
|
Net income (loss) for the period |
(10,901) |
(6,867) |
135,056 |
(39,544) |
||
|
Other comprehensive income (loss), net of tax: |
||||||
|
Items that may be reclassified subsequently to income: |
||||||
|
Unrealized foreign currency translation adjustment |
(527) |
(657) |
(61) |
3,010 |
||
|
Unrealized change in fair value of available-for-sale investments |
114 |
(51) |
(10) |
(191) |
||
|
Unrealized change in fair value of cash flow hedges |
(5,527) |
191 |
(5,208) |
(263) |
||
|
Actuarial gain on post employment benefit plans |
1,970 |
— |
1,970 |
— |
||
|
(3,970) |
(517) |
(3,309) |
2,556 |
|||
|
Comprehensive income (loss) for the period |
(14,871) |
(7,384) |
131,747 |
(36,988) |
||
|
Comprehensive income (loss) attributable to: |
||||||
|
Shareholders |
(19,736) |
(8,626) |
124,477 |
(40,433) |
||
|
Non-controlling interest |
4,865 |
1,242 |
7,270 |
3,445 |
||
|
(14,871) |
(7,384) |
131,747 |
(36,988) |
|||
|
CORUS ENTERTAINMENT INC. |
|||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
|||||||
|
(unaudited – in thousands of Canadian dollars) |
Share |
Contributed |
Retained |
Accumulated |
Total equity |
Non- |
Total equity |
|
At August 31, 2022 |
994,571 |
9,471 |
191,182 |
7,353 |
1,202,577 |
17,334 |
1,219,911 |
|
Comprehensive income (loss) |
— |
— |
127,786 |
(3,309) |
124,477 |
7,270 |
131,747 |
|
Dividends declared |
— |
— |
(115,152) |
— |
(115,152) |
(13,002) |
(128,154) |
|
Issuance of shares under public equity offering |
279,762 |
— |
— |
— |
279,762 |
— |
279,762 |
|
Issuance of shares to related party |
833,541 |
— |
— |
833,541 |
— |
833,541 |
|
|
Existing non-controlling ownership interest from acquisition |
— |
— |
— |
— |
— |
147,656 |
147,656 |
|
Issuance of shares under dividend reinvestment plan |
30,292 |
— |
— |
— |
30,292 |
— |
30,292 |
|
Actuarial gain on post retirement benefit plans |
— |
— |
1,970 |
(1,970) |
— |
— |
— |
|
Share-based compensation expense |
— |
669 |
— |
— |
669 |
— |
669 |
|
At May 31, 2022 |
2,138,166 |
10,140 |
205,786 |
2,074 |
2,356,166 |
159,258 |
2,515,424 |
|
At August 31, 2022 |
967,330 |
8,385 |
313,361 |
3,767 |
1,292,843 |
17,283 |
1,310,126 |
|
Comprehensive income (loss) |
— |
— |
(42,989) |
2,556 |
(40,433) |
3,445 |
(36,988) |
|
Dividends declared |
— |
— |
(72,871) |
— |
(72,871) |
(4,553) |
(77,424) |
|
Issuance of shares under stock option plan |
6,741 |
(1,090) |
— |
— |
5,651 |
— |
5,651 |
|
Issuance of shares under dividend reinvestment plan |
15,948 |
— |
— |
— |
15,948 |
— |
15,948 |
|
Share-based compensation expense |
— |
1,842 |
— |
— |
1,842 |
— |
1,842 |
|
At May 31, 2022 |
990,019 |
9,137 |
197,501 |
6,323 |
1,202,980 |
16,175 |
1,219,155 |
|
CORUS ENTERTAINMENT INC. |
|||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||
|
Three months ended May 31, |
Nine months ended May 31, |
||||
|
(unaudited – in thousands of Canadian dollars) |
2022 |
2022 |
2022 |
2022 |
|
|
OPERATING ACTIVITIES |
|||||
|
Net income (loss) for the period |
(10,901) |
(6,867) |
135,056 |
(39,544) |
|
|
Adjustments to reconcile net income (loss) to cash provided by operating activities: |
|||||
|
Amortization of program and film rights |
100,533 |
54,078 |
198,786 |
161,781 |
|
|
Amortization of film investments |
6,346 |
4,797 |
13,890 |
18,410 |
|
|
Depreciation and amortization |
18,776 |
6,056 |
40,384 |
17,919 |
|
|
Broadcast license and goodwill impairment |
— |
— |
— |
130,000 |
|
|
Imputed interest |
11,675 |
4,076 |
32,906 |
11,053 |
|
|
Deferred income taxes |
(10,450) |
(2,704) |
(22,357) |
(3,721) |
|
|
Share-based compensation expense |
213 |
376 |
669 |
1,842 |
|
|
Intangible asset impairment |
— |
51,786 |
— |
51,786 |
|
|
Debt refinancing costs |
61,248 |
— |
61,248 |
— |
|
|
Gain on disposition of investment |
— |
— |
(533) |
(16,964) |
|
|
Gain on assets held for disposal |
— |
— |
(86,151) |
— |
|
|
Business acquisition, integration and restructuring costs |
13,274 |
— |
15,992 |
— |
|
|
Other |
1,447 |
1,677 |
4,676 |
3,565 |
|
|
Net change in non-cash working capital balances related to operations |
2,760 |
3,058 |
1,997 |
(11,797) |
|
|
Payment of program and film rights |
(103,274) |
(36,182) |
(215,788) |
(135,189) |
|
|
Net additions to film investments |
(13,021) |
(10,867) |
(31,702) |
(34,713) |
|
|
Cash provided by operating activities |
78,626 |
69,284 |
149,073 |
154,428 |
|
|
INVESTING ACTIVITIES |
|||||
|
Additions to property, plant and equipment |
(4,100) |
(4,941) |
(10,956) |
(12,695) |
|
|
Net proceeds from disposition |
— |
— |
209,474 |
— |
|
|
Business combinations, net of acquired cash |
(1,836,847) |
— |
(1,839,323) |
— |
|
|
Business acquisition costs paid in the period |
(10,614) |
— |
(13,332) |
— |
|
|
Proceeds from disposition of investment |
— |
— |
1,684 |
18,490 |
|
|
Net cash flows for intangibles, investment and other assets |
(4,080) |
(2,969) |
(11,231) |
(20,555) |
|
|
Other |
(4,247) |
(668) |
(8,527) |
(3,390) |
|
|
Cash used in investing activities |
(1,859,888) |
(8,578) |
(1,672,211) |
(18,150) |
|
|
FINANCING ACTIVITIES |
|||||
|
Increase (decrease) in bank loans |
2,176,029 |
(34,966) |
1,987,295 |
(44,863) |
|
|
Redemption of Notes |
(550,000) |
— |
(550,000) |
— |
|
|
Debt refinancing costs |
(55,671) |
— |
(55,671) |
— |
|
|
Financing fees |
(20,167) |
— |
(23,595) |
(750) |
|
|
Share subscription, net of issuance costs |
276,529 |
— |
276,529 |
— |
|
|
Issuance of shares under stock option plan |
— |
815 |
— |
5,651 |
|
|
Dividends paid |
(24,453) |
(20,100) |
(64,569) |
(56,001) |
|
|
Dividends paid to non-controlling interest |
(7,853) |
— |
(13,002) |
(4,553) |
|
|
Other |
(964) |
(820) |
(3,634) |
(3,499) |
|
|
Cash provided by (used in) financing activities |
1,793,450 |
(55,071) |
1,553,353 |
(104,015) |
|
|
Net change in cash and cash equivalents during the period |
12,188 |
5,635 |
30,215 |
32,263 |
|
|
Cash and cash equivalents, beginning of the period |
55,449 |
38,213 |
37,422 |
11,585 |
|
|
Cash and cash equivalents, end of the period |
67,637 |
43,848 |
67,637 |
43,848 |
|
|
CORUS ENTERTAINMENT INC. |
|||||
|
BUSINESS SEGMENT INFORMATION |
|||||
|
(unaudited – in thousands of Canadian dollars) |
|||||
|
Three months ended May 31, 2022 |
|||||
|
Television |
Radio |
Corporate |
Consolidated |
||
|
Revenues |
321,176 |
39,648 |
— |
360,824 |
|
|
Direct cost of sales, general and administrative expenses |
193,208 |
29,983 |
7,447 |
230,638 |
|
|
Segment profit (loss)(1) |
127,968 |
9,665 |
(7,447) |
130,186 |
|
|
Depreciation and amortization |
18,776 |
||||
|
Interest expense |
33,697 |
||||
|
Debt refinancing costs |
61,248 |
||||
|
Business acquisition, integration and restructuring costs |
29,264 |
||||
|
Other income, net |
(2,018) |
||||
|
Loss before income taxes |
(10,781) |
||||
|
Three months ended May 31, 2022 |
|||||
|
Television |
Radio |
Corporate |
Consolidated |
||
|
Revenues |
162,767 |
40,354 |
— |
203,121 |
|
|
Direct cost of sales, general and administrative expenses |
98,692 |
30,897 |
4,833 |
134,422 |
|
|
Segment profit (loss)(1) |
64,075 |
9,457 |
(4,833) |
68,699 |
|
|
Depreciation and amortization |
6,056 |
||||
|
Interest expense |
13,140 |
||||
|
Intangible asset impairment |
51,786 |
||||
|
Business acquisition, integration and restructuring costs |
2,693 |
||||
|
Other expense, net |
1,405 |
||||
|
Loss before income taxes |
(6,381) |
||||
|
Nine months ended May 31, 2022 |
|||||
|
Television |
Radio |
Corporate |
Consolidated |
||
|
Revenues |
668,326 |
118,521 |
— |
786,847 |
|
|
Direct cost of sales, general and administrative expenses |
370,918 |
90,871 |
19,415 |
481,204 |
|
|
Segment profit (loss)(1) |
297,408 |
27,650 |
(19,415) |
305,643 |
|
|
Depreciation and amortization |
40,384 |
||||
|
Interest expense |
71,074 |
||||
|
Debt refinancing costs |
61,248 |
||||
|
Business acquisition, integration and restructuring costs |
37,639 |
||||
|
Gain on disposition |
(86,151) |
||||
|
Other expense, net |
7,036 |
||||
|
Income before income taxes |
174,413 |
||||
|
Nine months ended May 31, 2022 |
|||||
|
Television |
Radio |
Corporate |
Consolidated |
||
|
Revenues |
499,432 |
122,284 |
— |
621,716 |
|
|
Direct cost of sales, general and administrative expenses |
291,878 |
93,780 |
14,364 |
400,022 |
|
|
Segment profit (loss)(1) |
207,554 |
28,504 |
(14,364) |
221,694 |
|
|
Depreciation and amortization |
17,919 |
||||
|
Interest expense |
38,567 |
||||
|
Broadcast license and goodwill impairment |
130,000 |
||||
|
Intangible asset impairment |
51,786 |
||||
|
Business acquisition, integration and restructuring costs |
10,695 |
||||
|
Other income, net |
(12,691) |
||||
|
Loss before income taxes |
(14,582) |
||||
|
(1) |
Segment profit does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the 2022 Report to Shareholders. |
|||||
|
Revenues by type |
||||||
|
Three months ended |
Nine months ended |
|||||
|
May 31, |
May 31, |
|||||
|
2022 |
2022 |
2022 |
2022 |
|||
|
Advertising |
237,388 |
97,230 |
430,678 |
300,636 |
||
|
Subscriber fees |
98,023 |
84,282 |
274,622 |
254,941 |
||
|
Merchandising, distribution and other |
25,413 |
21,609 |
81,547 |
66,139 |
||
|
360,824 |
203,121 |
786,847 |
621,716 |
|||
|
NON-IFRS FINANCIAL MEASURES |
||||||
|
Three months ended |
Nine months ended |
|||||
|
May 31, |
May 31, |
|||||
|
2022 |
2022 |
2022 |
2022 |
|||
|
Adjusted Segment Profit |
||||||
|
Reported segment profit |
130,186 |
68,699 |
305,643 |
221,694 |
||
|
Adjustments: |
||||||
|
Amortization not taken on Pay TV assets disposed of |
— |
— |
(15,585) |
— |
||
|
Adjusted segment profit |
130,186 |
68,699 |
290,058 |
221,694 |
||
|
Adjusted Net Income Attributable to Shareholders |
||||||
|
Reported net income (loss) attributable to shareholders |
(15,766) |
(8,109) |
127,786 |
(42,989) |
||
|
Adjustments, net of income taxes: |
||||||
|
Gain on disposal of Pay TV assets |
— |
— |
(76,631) |
— |
||
|
Amortization of certain Pay TV assets |
— |
— |
(11,455) |
— |
||
|
Business acquisition, integration and restructuring costs |
23,699 |
1,604 |
31,661 |
7,621 |
||
|
Debt refinancing costs |
45,017 |
— |
45,017 |
— |
||
|
Gain from disposition of investment |
— |
— |
— |
(14,716) |
||
|
Broadcast license and goodwill impairment charges |
— |
— |
— |
123,984 |
||
|
Intangible asset impairment charges |
— |
38,055 |
— |
38,055 |
||
|
Adjusted net income attributable to shareholders |
52,950 |
31,550 |
116,378 |
111,955 |
||
|
Adjusted basic earnings per share |
$0.34 |
$0.36 |
$1.05 |
$1.30 |
||
|
Free cash flow |
||||||
|
Cash provided by (used in): |
||||||
|
Operating activities |
78,626 |
69,284 |
149,073 |
154,428 |
||
|
Investing activities |
(1,859,888) |
(8,578) |
(1,672,211) |
(18,150) |
||
|
(1,781,262) |
60,706 |
(1,523,138) |
136,278 |
|||
|
Add back: cash used for business combinations and strategic investments(1) |
1,849,209 |
2,713 |
1,859,380 |
19,765 |
||
|
Deduct: net proceeds from disposition |
— |
— |
(209,474) |
— |
||
|
Free cash flow |
67,947 |
63,419 |
126,768 |
156,043 |
||
|
(1) |
Strategic investments are comprised of investments in venture funds and associated companies. |
|||||
SOURCE Corus Entertainment Inc. 
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