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Astral Reports Q1 Financial Results

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  • Astral Media Inc. today reported its financial results for the first quarter ended November 30, 2024, which saw continued growth in net earnings1, EPS1, EBITDA2, revenues and cash flow from operations2.

    In the first quarter, consolidated net earnings1 rose 7% to $59.6 million from $55.8 million for the same period last year, while diluted earnings per share1 increased by 5% to $1.05 from $1.00 last year. EBITDA2 grew 4% to $93.7 million from $90.4 million last year, while consolidated revenues totalled $274.5 million, an increase of 1% over the $271.1 million recorded last year for the same period. Cash flow from operations at $69.2 million is slightly above last year’s figure of $69.0 million.

    “I am very pleased with our Company’s consolidated and segmented performance in the first quarter of Fiscal 2024, marking the single largest quarter in the Company’s history” said Ian Greenberg, President and Chief Executive Officer. “Our relentless focus on delivering better value to advertisers and consumers combined with the discipline that defines Astral’s decision-making approach provide us with the optimal strategy to reach our objectives and continue to deliver balanced growth across our diversified asset portfolio.”

    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. Following the October 18, 2024 decision of the CRTC to deny Bell’s application to acquire the control of the Company, the Company and Bell announced on November 19, 2024 that they have amended the arrangement agreement signed on March 16, 2024 and submitted a new proposal to the CRTC for approval of Bell’s acquisition of the Company.

    As a result of the amendments made to the terms of the arrangement agreement: (i) the outside date for the closing of the transaction has been extended to June 1, 2024, with each of the Company and Bell having a further right to postpone it to July 31, 2024, (ii) Bell’s regulatory covenants have been modified, and (iii) the Company’s Board of directors has declared a cash dividend of $0.50 per share on its class A non-voting shares and class B subordinate voting shares, payable on February 1, 2024 to shareholders of record at the close of business on January 15, 2024. The consideration payable to the Company’s shareholders remains unchanged under the amended arrangement agreement. The Bell-Astral Transaction is subject to closing conditions, including regulatory approvals from the CRTC and the Competition Bureau. There can be no assurance that the Bell-Astral Transaction will occur, or that it will occur on the terms and conditions currently contemplated.

    SEGMENTED FINANCIAL AND OPERATIONAL HIGHLIGHTS

    Television

    Revenue growth of 2%;

    EBITDA2 growth of 5%;

    EBITDA margin2 of 39.3%, up from 38.2% for the same period last year.

    Radio

    Revenue growth of 1%;

    EBITDA2 growth of 1%;

    EBITDA margin2 of 31.3%, consistent with last year;

    Prior to the beginning of the first quarter, rebranding of two stations in London and Winnipeg to the prestigious Virgin Radio brand, bringing the total of Astral Virgin Radio stations to seven;

    On November 23, inauguration of Canada’s largest private radio broadcasting centre with five Astral French- and English-language stations under the same roof in Montréal.

    Out-of-Home

    Revenue growth of 2%;

    EBITDA2 growth of 1%;

    EBITDA margin2 of 40.0%, consistent with last year;

    In September, launch of a brand new network of 30 urban Digital Columns in the heart of downtown Montréal;

    Announcement of the addition of 6 new Digital faces by February 2024 on Toronto’s Gardiner Expressway, bringing Astral’s popular national Digital Network to 49 faces.

    Corporate

    Over the course of the first quarter, the Company repaid $7.0 million of its long-term debt, bringing its Net Debt and leverage ratio just below $356.0 million and 1.1 respectively;

    Astral announced in November a cash dividend of $0.50 per share on its class A non-voting shares and class B subordinate voting shares, payable on February 1, 2024.

    The unaudited interim condensed consolidated financial statements and related notes and Management’s Discussion and Analysis are available on the Company’s website: astral.com.

     1. Excluding Bell-Astral transaction costs. See “Additional IFRS and Non-IFRS Measures” in Appendix 1.

    2. For more details, see “Additional IFRS and Non-IFRS Measures” in Appendix 1.

    3. For more details, see the “Bell-Astral Transaction” section in the Management’s Discussion and Analysis for the periods ended November 30, 2024 and 2024 and the press release issued by the Company on November 19, 2024.

    ASTRAL MEDIA INC.

    Interim Consolidated Statements of Earnings

    for the three months ended

    (in thousands of Canadian dollars except for per-share data)

    (unaudited)

    November 30

    2012 2024

    Revenues $ 274,465 $ 271,100

    Operating expenses 180,811 180,699

    Depreciation of property, plant and equipment 6,931 7,506

    Amortization of other intangible and non-current assets 2,363 1,962

    Financial expense, net 2,836 3,953

    Bell-Astral Transaction costs 660 –

    Earnings before income taxes 80,864 76,980

    Income tax expense 21,759 21,224

    Net earnings $ 59,105 $ 55,756

    Earnings per share

    – Basic $ 1.06 $ 1.01

    – Diluted $ 1.04 $ 1.00

    ASTRAL MEDIA INC.

    Interim Consolidated Statements of Comprehensive Income

    for the three months ended

    (in thousands of Canadian dollars)

    (unaudited)

    November 30

    2012 2024

    Net earnings $ 59,105 $ 55,756

    Item that is never subsequently reclassified to statements of earnings

    Actuarial loss on employee future benefit plans, net of income tax recovery of

    $1.8 million and $2.4 million respectively (4,830) (6,772)

    Item that may be subsequently reclassified to statements of earnings

    Change in fair value of derivatives designated as cash flow hedges, net of

    income tax expense (recovery) of ($0.2 million) and $0.1 million respectively (663) 110

    Other comprehensive loss (5,493) (6,662)

    Comprehensive income $ 53,612 $ 49,094

    ASTRAL MEDIA INC.

    Interim Consolidated Statements of Cash Flows

    for the three months ended

    (in thousands of Canadian dollars)

    (unaudited)

    November 30,

    2012 2024

    OPERATING ACTIVITIES

    Net earnings $ 59,105 $ 55,756

    Non-cash items:

    Stock-based compensation costs 2,098 2,152

    Depreciation and amortization 9,294 9,468

    Imputed interest, net 288 259

    Amortization of deferred financing costs 281 205

    Deferred tax expense (recovery) (1,902) 1,122

    Cash flows from operations 69,164 68,962

    Net change in non-cash operating items (44,841) (45,111)

    Cash provided by operating activities 24,323 23,851

    INVESTING ACTIVITIES

    Additions to property, plant and equipment (9,708) (5,574)

    Additions to other intangible and non-current assets (999) (952)

    Cash used for investing activities (10,707) (6,526)

    FINANCING ACTIVITIES

    Repayment of long-term debt (7,000) (10,000)

    Deferred financing costs – (2,011)

    Stock options exercised 1,702 3,110

    Shares repurchased – (7,757)

    Cash used for financing activities (5,298) (16,658)

    Net change in cash 8,318 667

    Cash – beginning of period 20,892 22,653

    Cash – end of period $ 29,210 $ 23,320

    ASTRAL MEDIA INC.

    Interim Consolidated Balance Sheets as at

    (in thousands of Canadian dollars)

    (unaudited)

    November 30,

    2012 August 31,

    2012

    ASSETS

    Current

    Cash $ 29,210 $ 20,892

    Accounts receivable 193,823 174,384

    Program and film rights 123,080 114,753

    Prepaid expenses and other current assets 41,861 29,007

    387,974 339,036

    Program and film rights 52,588 51,208

    Property, plant and equipment 209,824 210,035

    Broadcast licences 1,631,307 1,631,307

    Goodwill 118,489 118,489

    Other intangible and non-current assets 63,178 64,750

    Non-current financial assets 15,491 16,084

    Deferred tax assets 40,530 34,582

    $ 2,519,381 $ 2,465,491

    LIABILITIES

    Current

    Accounts payable and accrued liabilities $ 150,184 $ 141,729

    Provisions 3,208 5,319

    Income taxes payable 20,408 15,531

    Program and film rights payable 74,744 63,619

    248,544 226,198

    Long-term debt 383,419 390,138

    Deferred tax liabilities 133,422 131,377

    Program and film rights payable 9,877 7,446

    Provisions 6,305 6,717

    Other non-current liabilities 80,935 76,556

    Other non-current financial liabilities 9,351 8,466

    871,853 846,898

    SHAREHOLDERS’ EQUITY

    Capital stock 783,133 778,548

    Contributed surplus 19,199 20,445

    Retained earnings 845,729 819,470

    Accumulated other comprehensive income (loss) (533) 130

    845,196 819,600

    1,647,528 1,618,593

    $ 2,519,381 $ 2,465,491

    ASTRAL MEDIA INC.

    Business Segments

    for the three months ended November 30,

    (in thousands of Canadian dollars)

    (unaudited)

    2012 2024

    REVENUES

    Television $ 155,827 $ 153,552

    Radio 88,786 88,291

    Out-of-Home 29,852 29,257

    $ 274,465 $ 271,100

    EBITDA(1)

    Television $ 61,251 $ 58,608

    Radio 27,773 27,591

    Out-of-Home 11,935 11,835

    Corporate (7,305) (7,633)

    $ 93,654 $ 90,401

    (1) See Appendix 1.

    ASTRAL MEDIA INC.

    Appendix 1

    Additional IFRS and Non-IFRS Measures

    for the periods ended November 30, 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 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 November 30, 2024 and 2024 to EBITDA:

    November 30

    (in thousands of $) 2024 2024

    (“Fiscal 2024”) (“Fiscal 2024”)

    Earnings before income taxes 80,864 76,980

    Depreciation and amortization 9,294 9,468

    Financial expense, net 2,836 3,953

    Bell-Astral Transaction costs 660 –

    EBITDA 93,654 90,401

    Net earnings and diluted earnings per share before 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 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 November 30 2024 and 2024 to net earnings and diluted earnings per share before Bell-Astral Transaction costs:

    November 30

    (in thousands of $) 2024 2024

    Net earnings 59,105 55,756

    Bell-Astral Transaction costs, net of income taxes 484 –

    Net earnings before Bell-Astral Transaction costs 59,589 55,756

    November 30

    (in dollars) 2024 2024

    Diluted earnings per share 1.04 1.00

    Bell-Astral Transaction costs, net of income taxes 0.01 –

    Diluted earnings per share before Bell-Astral Transaction costs 1.05 1.00

    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.

    SOURCE: Astral Media Inc.


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