Corus Entertainment Announces Fiscal 2021 Fourth Quarter and Year End Results

·22 min read
  • Consolidated revenue increased 13% for the quarter and 2% for the year

  • Consolidated segment profit1 increased 9% for the quarter and 4% for the year

  • Consolidated segment profit margin1 of 28% for the quarter and 34% for the year

  • Net income attributable to shareholders of $19.9 million ($0.10 per share basic) for the quarter and $172.6 million ($0.83 per share basic) for the year

  • Net debt to segment profit1 of 2.76 times at August 31, 2021, down from 3.18 times at August 31, 2020

  • Free cash flow1 of $35.2 million for the quarter and $251.9 million for the year

TORONTO, Oct. 22, 2021 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year end financial results today.

"The benefits we are seeing from the disciplined execution of our strategic plan, in concert with emerging powerful tailwinds from the economic recovery, have resulted in yet another impressive quarter of top and bottom-line growth," said Doug Murphy, President and Chief Executive Officer. "Our winning Fall schedule is already delivering a strong start to the new fiscal year. We will maintain the focus on our balanced capital allocation strategy, with free cash flow directed towards the pursuit of our leverage target while we fund our attractive dividend and invest in the incredible opportunities we see in digital video, advertising innovation and our owned content business."

Financial Highlights


Three months ended



Year ended



August 31,

%


August 31,

%

(in thousands of Canadian dollars except per share amounts)

2021

2020

Change


2021

2020

Change

Revenue








Television

335,844

299,122

12%


1,446,287

1,408,238

3%

Radio

25,411

19,274

32%


97,196

102,998

(6%)


361,255

318,396

13%


1,543,483

1,511,236

2%








Segment profit (loss) (1)








Television (2)

110,026

98,787

11%


549,159

508,715

8%

Radio (2)

4,316

1,195

261%


14,151

16,023

(12%)

Corporate (2)

(11,642)

(5,480)

112%


(38,692)

(18,899)

105%


102,700

94,502

9%


524,618

505,839

4%








Segment profit margin (1)








Television

33%

33%



38%

36%


Radio

17%

6%



15%

16%


Consolidated

28%

30%



34%

33%









Net income (loss) attributable to shareholders

19,920

30,278

(34%)


172,550

(625,362)

n/m

Adjusted net income attributable to shareholders (1)

21,669

33,181

(35%)


182,218

158,057

15%








Basic earnings (loss) per share

$0.10

$0.15



$0.83

($2.98)


Adjusted basic earnings per share (1)

$0.10

$0.16



$0.88

$0.75


Diluted earnings (loss) per share

$0.10

$0.15



$0.83

($2.98)









Free cash flow (1)

35,181

87,353

(60%)


251,947

296,247

(15%)









(1)

Segment profit (loss), segment profit margin, adjusted net income (loss) attributable to shareholders, adjusted basic earnings per share, free cash flow and net debt to segment profit do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS"). The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions, explanations and reconciliations see discussion under the Key Performance Indicators section of the Fourth Quarter 2021 Report to Shareholders.

(2)

Segment profit included $1.0 million in Q4 (Television: $1.1 million; Radio: $0.2 million; Corporate reduction of $0.3 million) and $13.5 million for the year (Television: $11.1 million; Radio: $1.9 million; Corporate: $0.5 million) of estimated Canada Emergency Wage Subsidy ("CEWS") benefit and a reduction in the relief on CTRC regulatory fees of $0.2 million in Q4 (Television $0.3 million reduction, offset by Radio increase of $0.1 million) and $8.6 million for the year (Television: $7.5 million; Radio: $1.1 million). In the prior year, segment profit included $17.5 million in Q4 (Television: $14.3 million; Radio: $2.1 million; Corporate: $1.1 million) and $34.9 million for the year (Television: $27.8 million; Radio: $4.7 million; Corporate: $2.3 million) of estimated CEWS benefit.


Segment Revenue


Three months ended



Year ended



August 31,

%


August 31,

%

(in thousands of Canadian dollars)

2021

2020

Change


2021

2020

Change

Revenue

335,844







Television

299,122

12%


1,446,287

1,408,238

3%

Advertising

176,942

146,565

21%


842,202

823,448

2%

Subscriber

125,735

122,066

3%


498,049

490,985

1%

Merchandising, distribution and other

33,167

30,491

9%


106,036

93,805

13%

Radio

25,411

19,274

32%


97,196

102,998

(6%)

Total Revenue

361,255

318,396

13%


1,543,483

1,511,236

2%









Optimized advertising revenue (1)

34%

21%

100%


31%

22%

43%

New platform revenue (2)

10%

8%

46%


8%

5%

62%

(1)

Optimized advertising revenue reflects progress on the transformation of how Television advertising is sold. This metric includes revenue from audience segment selling as well as the Cynch automated buying platform expressed as a percentage of Television advertising revenue.

(2)

New platform revenue reflects progress on Corus' participation in rapidly growing streaming distribution platforms and digital advertising markets. This metric includes incremental subscriber revenue from new streaming initiatives and advertising revenue from digital platforms expressed as a percentage of total Television advertising and subscriber revenue.

Operational Highlights

The Company advanced its Strategic Priorities, positioning Corus for a solid start to its new fiscal year. Global Television's line-up of Fall premieres has performed well in the rankings, Corus' streaming services once again experienced strong subscriber gains and demand for Nelvana and Corus Studios content remains robust, with a number of recent sales in the international market.

  • On October 12, 2021, Discovery, Inc. announced an integrated marketing partnership with the Company as part of their expansion of discovery+ into Canada. Canadians will be introduced to discovery+ via marketing campaigns across the Company's portfolio of media assets, including linear networks, radio, digital and social platforms.

  • As of October 21, 2021, the Company has reached a new milestone of more than 675,000 paying subscribers to its STACKTV, Nick+ and other streaming platforms, an increase from more than 600,000 paying subscribers on June 29, 2021.

  • On October 21, 2021, the Company's subsidiary Nelvana announced international distribution for The Hardy Boys has been secured on Disney+ outside of the U.S. and Canada. The Daytime-Emmy® nominated live-action mystery series will launch in select international markets in 2022.

  • On October 22, 2021, the Company's Corus Studios announced multiple international licensing sales, comprising 70 hours of content for the fiscal 2022 year-to-date. In addition to over 200 episodes sold in April, 2021, Hulu has acquired 58 episodes of original Corus Studios series Project Bakeover, Salvage Kings (Seasons 1 and 2), Worst to First (Seasons 1 and 2) and the pre-sale of Deadman's Curse. This latest sale follows an international sale to Discovery U.S.'s MotorTrend Group for Rust Valley Restorers (Seasons 1, 3 and the pre-sale of Season 4), announced August 10, 2021.

  • Global Television has delivered 9 of the top 20 shows this Fall, including #1 hit program Survivor, as well as the top four new shows of the season with CSI: Vegas, NCIS: Hawai'i, Ghosts and FBI International.

Source: Numeris PPM Data, Total Canada, AMA(000), FL'21 Premiere Weeks: Sept20/21 – Oct10/21 – confirmed up to Oct3/21. Mo-Su 2a-2a, 1+ airings. A25-54. CDN CONV COM ENG excluding election coverage, specials and one-offs.

Financial Highlights

  • Free cash flow(1) of $35.2 million in Q4 and $251.9 million for the year compared to $87.4 million and $296.2 million, respectively, in the prior year. The decrease in free cash flow in the fourth quarter is attributable to higher income tax installments, higher payments for program rights in the current year due to COVID-19 related programming delays and cancellations in the prior year, as well as increased additions to property, plant, equipment, and software compared to the prior year. Free cash flow for the year decreased principally as a result of higher income tax installments, offset by CEWS receipts of $33.0 million.

  • Net debt to segment profit(1) was 2.76 times at August 31, 2021, down from 3.18 times at August 31, 2020, principally due to repayment of bank loans of $650.6 million for the year, offset by the issue of the Senior Unsecured Notes due 2028 (the "Notes") of $500.0 million in the third quarter that were added to net debt, and the improvement in segment profit.

  • As of August 31, 2021, the Company had $43.7 million of cash and cash equivalents and a committed $300 million revolving credit facility that remains undrawn.

(1)

Free cash flow and net debt to segment profit 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 the discussion under the Key Performance Indicators section of the Fourth Quarter 2021 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended August 31, 2020.

Corus Entertainment Inc. reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three months and year ended August 31, 2021 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section.

A conference call with Corus senior management is scheduled for October 22, 2021 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. The dial-in number for the conference call for local and international callers is 1.647.792.1240 and for North America is 1.800.437.2398. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

COVID-19 Update

All provinces and territories continue with vaccination programs to inoculate Canadians against COVID-19, with approximately 82% of eligible Canadians fully inoculated as of October 15, 2021. Many provinces and territories have eased restrictions, but have seen infection rates increase considerably amongst those who remain unvaccinated, which may lead to the reintroduction of emergency measures to counter a resurgence of COVID-19 cases. Disruptions caused by the imposition of emergency measures, particularly in the retail, tourism and entertainment sectors, would continue to negatively impact advertising revenue. There can be no certainty that inoculations will continue to reduce the impact of the COVID-19 pandemic on the Company's business in the short to medium term.

The extent to which COVID-19 and any other pandemic or public health crisis impacts the Company's business, affairs, operations, financial condition, liquidity, availability of credit and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to continue to contain the COVID-19 virus or remedy its impact, among others.

The Company's financial priorities remain unchanged. Importantly, the Company remains committed to increasing its financial flexibility over the longer term. In this environment the Company believes it is prudent to conserve cash out of an abundance of caution. The Company is constantly evaluating the situation and monitoring any impacts or potential impacts to its business.

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of segment profit, segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, free cash flow, net debt to segment profit, optimized revenue, and new platform revenue that are not in accordance with, nor an alternate to, generally accepted accounting principles ("IFRS") and may be different from non-IFRS measures used by other companies. In addition, these non-IFRS measures are not based on any comprehensive set of accounting rules or principles.

Non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-IFRS measures is included in the Company's most recent Report to Shareholders which is available on Corus' website at www.corusent.com as well as on SEDAR at www.sedar.com.

Caution Concerning Forward-Looking Information

This press release contains forward-looking information and should be read subject to the following cautionary language:

To the extent any statements made in this press release contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking information"). These forward-looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including the adoption and anticipated impact of our strategic plan, advertising and our expectations of advertising trends for fiscal 2022, distribution, merchandise and subscription revenue, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", including the adoption and anticipated impact of our strategic plan, "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the general market conditions and general outlook for the industry including the potential impact of new competition and industry mergers and acquisitions, interest rates, stability of the advertising, distribution, merchandise and subscription markets, operating and capital costs and tariffs, taxes and fees, our ability to source desirable content and our capital and operating results being consistent with our expectations. Actual results may differ materially from those expressed or implied in such information. Important factors that could cause actual results to differ materially from these expectations include, among other things: our ability to attract and retain advertising revenue; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business; failure to meet covenants under our senior credit facility; epidemics, pandemics or other public health crises, including the current outbreak of COVID-19 and changes in accounting standards. Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading "Risks and Uncertainties" in the Management's Discussion and Analysis for the year ended August 31, 2020 and under the heading "Risk Factors" in our Annual Information Form. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document. Unless otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

About Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompass 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital and streaming assets, animation software, technology and media services. Corus is an internationally-renowned content creator and distributor through Nelvana, a world class animation studio expert in all formats and Corus Studios, a globally recognized producer of hit scripted and unscripted content. The company also owns innovative full-service social digital agency so.da, lifestyle entertainment company Kin Canada, leading 2D animation software supplier Toon Boom and children's book publishing house, Kids Can Press. Corus' roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX, along with broadly distributed Canadian streaming platforms STACKTV, Nick+, the Global TV App and Curiouscast. For more information visit www.corusent.com.

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(unaudited - in thousands of Canadian dollars)

As at August 31,

As at August 31,

2021

2020

ASSETS



Current



Cash and cash equivalents

43,685

45,900

Accounts receivable

325,587

297,585

Income taxes recoverable

5,597

Prepaid expenses and other assets

24,106

17,112

Total current assets

398,975

360,597

Tax credits receivable

24,501

26,745

Investments and other assets

98,667

59,424

Property, plant and equipment

316,226

333,762

Program rights

576,076

637,819

Film investments

39,732

44,891

Intangibles

1,687,432

1,789,018

Goodwill

664,958

664,958

Deferred income tax assets

50,050

53,668


3,856,617

3,970,882

LIABILITIES AND EQUITY



Current



Accounts payable and accrued liabilities

509,817

451,682

Current portion of long-term debt

35,328

76,339

Provisions

7,202

8,621

Income taxes payable

12,698

Total current liabilities

552,347

549,340

Long-term debt

1,313,965

1,429,750

Other long-term liabilities

331,482

492,956

Provisions

9,497

9,494

Deferred income tax liabilities

428,963

440,923

Total liabilities

2,636,254

2,922,463

EQUITY



Share capital

816,189

816,189

Contributed surplus

1,512,431

1,511,325

Accumulated deficit

(1,282,897)

(1,425,432)

Accumulated other comprehensive income (deficit)

21,811

(2,258)

Total equity attributable to shareholders

1,067,534

899,824

Equity attributable to non-controlling interest

152,829

148,595

Total equity

1,220,363

1,048,419


3,856,617

3,970,882


CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)


Three months ended


Year ended


August 31,


August 31,

(unaudited - in thousands of Canadian dollars except per share amounts)

2021

2020

2021

2020

Revenue

361,255

318,396

1,543,483

1,511,236

Direct cost of sales, general and administrative expenses

258,555

223,894

1,018,865

1,005,397

Depreciation and amortization

37,850

38,798

152,255

158,549

Interest expense

26,665

27,201

104,078

115,185

Broadcast licences and goodwill impairment

786,790

Debt refinancing

1,885

Integration, restructuring and other costs

2,379

3,961

11,264

19,155

Other expense (income), net

3,415

(21,713)

(8,197)

(8,077)

Income (loss) before income taxes

32,391

46,255

263,333

(565,763)

Income tax expense

8,538

12,465

68,760

41,944

Net income (loss) for the period

23,853

33,790

194,573

(607,707)


Other comprehensive income (loss), net of income taxes:





Items that may be reclassified subsequently to income:





Unrealized change in fair value of cash flow hedges

2,680

2,405

12,320

(15,466)

Unrealized foreign currency translation adjustment

1,190

(921)

(517)

(87)


3,870

1,484

11,803

(15,553)

Items that will not be reclassified to income:





Unrealized change in fair value of financial assets

(4,202)

2,001

12,266

1,108

Actuarial gain (loss) on post-retirement benefit plans

5,459

(5,164)

19,359

8,871


1,257

(3,163)

31,625

9,979

Other comprehensive income (loss), net of income taxes

5,127

(1,679)

43,428

(5,574)

Comprehensive income (loss) for the period

28,980

32,111

238,001

(613,281)






Net income (loss) attributable to:





Shareholders

19,920

30,278

172,550

(625,362)

Non-controlling interest

3,933

3,512

22,023

17,655


23,853

33,790

194,573

(607,707)






Comprehensive income (loss) attributable to:





Shareholders

25,047

28,599

215,978

(630,936)

Non-controlling interest

3,933

3,512

22,023

17,655


28,980

32,111

238,001

(613,281)






Earnings (loss) per share attributable to shareholders:





Basic

$0.10

$0.15

$0.83

($2.98)

Diluted

$0.10

$0.15

$0.83

($2.98)

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited - in thousands of Canadian dollars)

Share
capital

Contributed
surplus

Accumulated
deficit

Accumulated
other
comprehensive
income (deficit)

Total equity
attributable to
shareholders

Non-
controlling
interest

Total equity

As at August 31, 2020

816,189

1,511,325

(1,425,432)

(2,258)

899,824

148,595

1,048,419

Comprehensive income

172,550

43,428

215,978

22,023

238,001

Dividends declared

(49,991)

(49,991)

(17,676)

(67,667)

Actuarial gain on post-retirement
benefit plans

19,359

(19,359)

Share-based compensation expense

1,106

1,106

1,106

Return of capital to non-controlling
interest

(1,622)

(1,622)

Reallocation of equity interest

617

617

(617)

Equity funding by a non-controlling
interest

2,126

2,126

As at August 31, 2021

816,189

1,512,431

(1,282,897)

21,811

1,067,534

152,829

1,220,363

(unaudited - in thousands of Canadian dollars)

Share
capital

Contributed
surplus

Accumulated
deficit

Accumulated
other
comprehensive
income (deficit)

Total equity
attributable to
shareholders

Non-
controlling
interest

Total equity

As at August 31, 2019

830,477

1,512,818

(758,757)

12,187

1,596,725

145,512

1,742,237

Comprehensive income (loss)

(625,362)

(5,574)

(630,936)

17,655

(613,281)

Dividends declared

(50,184)

(50,184)

(19,983)

(70,167)

Share repurchase under normal
course issuer bid ("NCIB")

(14,288)

(2,605)

(16,893)

(16,893)

Actuarial gain on post-retirement
benefit plans

8,871

(8,871)

Share-based compensation expense

1,112

1,112

1,112

Equity funding by a non-controlling
interest

5,411

5,411

As at August 31, 2020

816,189

1,511,325

(1,425,432)

(2,258)

899,824

148,595

1,048,419

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS


Three months ended


Year ended



August 31,


August 31,

(unaudited - in thousands of Canadian dollars)

2021

2020

2021

2020

OPERATING ACTIVITIES





Net income (loss) for the period

23,853

33,790

194,573

(607,707)

Adjustments to reconcile net income (loss) to cash flow from operations:





Amortization of program rights

118,437

109,590

493,598

495,814

Amortization of film investments

3,027

5,649

12,927

20,063

Depreciation and amortization

37,850

38,798

152,255

158,549

Deferred income tax expense (recovery)

621

3,615

(22,035)

(23,992)

Broadcast licences and goodwill impairment

786,790

Share-based compensation expense

276

260

1,106

1,112

Imputed interest

9,535

12,569

42,288

52,371

Debt refinancing

1,885

Payment of program rights

(161,793)

(142,290)

(533,837)

(547,486)

Net spend on film investments

3,629

2,829

(17,690)

(43,178)

CRTC benefit payments

(478)

(1,403)

(1,113)

(2,448)

Other

(1,406)

4,103

797

(1,658)

Cash flow from operations

33,551

67,510

324,754

288,230

Net change in non-cash working capital balances related to operations

16,540

26,688

(50,261)

25,042

Cash provided by operating activities

50,091

94,198

274,493

313,272

INVESTING ACTIVITIES





Additions to property, plant and equipment

(13,370)

(5,294)

(19,554)

(15,385)

Proceeds from sale of property

(3)

26

316

314

Net cash flows for intangibles, investments and other assets

(7,776)

(1,727)

(10,288)

(3,934)

Cash used in investing activities

(21,149)

(6,995)

(29,526)

(19,005)

FINANCING ACTIVITIES





Decrease in bank loans

(48,471)

(98,854)

(650,634)

(229,514)

Financing fees

(12,119)

Issuance of senior unsecured notes

500,000

Share repurchase under NCIB

(16,893)

Return of capital to non-controlling interest

(1,622)

Equity funding by a non-controlling interest

1,976

4,102

5,411

Payment of lease liabilities

(4,109)

(3,840)

(16,245)

(15,945)

Dividends paid

(12,498)

(12,498)

(49,991)

(50,399)

Dividends paid to non-controlling interest

(6,133)

(5,315)

(17,676)

(19,983)

Other

(140)

(428)

(2,997)

(3,612)

Cash used in financing activities

(69,375)

(120,935)

(247,182)

(330,935)

Net change in cash and cash equivalents during the period

(40,433)

(33,732)

(2,215)

(36,668)

Cash and cash equivalents, beginning of the period

84,118

79,632

45,900

82,568

Cash and cash equivalents, end of the period

43,685

45,900

43,685

45,900

CORUS ENTERTAINMENT INC.
BUSINESS SEGMENT INFORMATION

(unaudited - in thousands of Canadian dollars)





Three months ended August 31, 2021






Television

Radio

Corporate

Consolidated

Revenue

335,844

25,411

361,255

Direct cost of sales, general and administrative expenses

225,818

21,095

11,642

258,555

Segment profit (loss)(1)

110,026

4,316

(11,642)

102,700

Depreciation and amortization




37,850

Interest expense




26,665

Integration, restructuring and other costs




2,379

Other expense, net




3,415

Income before income taxes




32,391

Three months ended August 31, 2020






Television

Radio

Corporate

Consolidated

Revenue

299,122

19,274

318,396

Direct cost of sales, general and administrative expenses

200,335

18,079

5,480

223,894

Segment profit (loss)(1)

98,787

1,195

(5,480)

94,502

Depreciation and amortization




38,798

Interest expense




27,201

Integration, restructuring and other costs




3,961

Other income, net




(21,713)

Income before income taxes




46,255

Year ended August 31, 2021






Television

Radio

Corporate

Consolidated

Revenue

1,446,287

97,196

1,543,483

Direct cost of sales, general and administrative expenses

897,128

83,045

38,692

1,018,865

Segment profit (loss)(1)

549,159

14,151

(38,692)

524,618

Depreciation and amortization




152,255

Interest expense




104,078

Debt refinancing




1,885

Integration, restructuring and other costs




11,264

Other income, net




(8,197)

Income before income taxes




263,333

Year ended August 31, 2020






Television

Radio

Corporate

Consolidated

Revenue

1,408,238

102,998

1,511,236

Direct cost of sales, general and administrative expenses

899,523

86,975

18,899

1,005,397

Segment profit (loss)(1)

508,715

16,023

(18,899)

505,839

Depreciation and amortization




158,549

Interest expense




115,185

Broadcast licences and goodwill impairment




786,790

Integration, restructuring and other costs




19,155

Other income, net




(8,077)

Loss before income taxes




(565,763)


(1)

Segment profit (loss) does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the Fourth Quarter 2021 Report to Shareholders.

REVENUE BY TYPE


Three months ended


Year ended



August 31,


August 31,

(unaudited - in thousands of Canadian dollars)

2021

2020

2021

2020

Advertising

200,991

164,718

934,151

920,849

Subscriber fees

125,735

122,066

498,049

490,985

Merchandising, distribution and other

34,529

31,612

111,283

99,402


361,255

318,396

1,543,483

1,511,236

NON-IFRS FINANCIAL MEASURES


Three months ended


Year ended

(unaudited - in thousands of Canadian dollars, except per share amounts)


August 31,


August 31,

Adjusted Net Income Attributable to Shareholders

2021

2020

2021

2020

Net income (loss) attributable to shareholders

19,920

30,278

172,550

(625,362)

Adjustments, net of income tax:





Broadcast licences and goodwill impairment

769,338

Debt refinancing

1,389

Integration, restructuring and other costs

1,749

2,903

8,279

14,081

Adjusted net income attributable to shareholders

21,669

33,181

182,218

158,057

Basic earnings (loss) per share

$0.10

$0.15

$0.83

($2.98)

Adjustments, net of income tax:





Broadcast licences and goodwill impairment

$3.66

Debt refinancing

$0.01

Integration, restructuring and other costs

$0.01

$0.04

$0.07

Adjusted basic earnings per share

$0.10

$0.16

$0.88

$0.75


Three months ended

Year ended

(unaudited - in thousands of Canadian dollars)

August 31,

August 31,

Free Cash Flow

2021

2020

2021

2020

Cash provided by (used in):





Operating activities

50,091

94,198

274,493

313,272

Investing activities

(21,149)

(6,995)

(29,526)

(19,005)

Add: cash used in business acquisitions and strategic investments (1)

28,942

87,203

244,967

294,267

6,239

150

6,980

1,980

Free cash flow

35,181

87,353

251,947

296,247


(1)

Strategic investments are comprised of investments in venture funds and associated companies.



Year ended

(unaudited - in thousands of Canadian dollars)

August 31,

August 31,

Net Debt and Net Debt to Segment Profit

2021

2020

Total debt, net of unamortized financing fees

1,349,293

1,506,089

Lease liabilities

143,546

148,580

Cash and cash equivalents

(43,685)

(45,900)

Net debt (numerator)

1,449,154

1,608,769

Segment profit (denominator) (1)

524,618

505,839

Net debt to segment profit

2.76

3.18

(1)

Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the "Quarterly Consolidated Financial Information" section of the Fourth Quarter 2021 Report to Shareholders.

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View original content:https://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2021-fourth-quarter-and-year-end-results-301406504.html

SOURCE Corus Entertainment Inc.

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View original content: http://www.newswire.ca/en/releases/archive/October2021/22/c3907.html

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