Corus Entertainment Announces Fiscal 2012 Second Quarter Results

Corus Entertainment Announces Fiscal 2012 Second Quarter Results

-- Net income attributable to shareholders from continuing
operations up 16%
-- Consolidated revenues up 8% and segment profit up 4%
-- Television revenue up 10% and segment profit up 1%
-- Radio revenue down 1% and segment profit up 2%

TORONTO, April 12, 2012 /PRNewswire/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

"We are delighted with our second quarter results as we continued to
grow our revenue and net income, despite a challenging ad sales
environment," said John Cassaday, President and CEO of Corus
Entertainment.  "Our portfolio of Women's brands delivered double digit
ad growth, and our Kids business continued to grow on the strength of
our Beyblade sales. Our Radio business also experienced a return to
growth in the quarter.  The introduction of ABC Spark in March
represents another exciting growth opportunity for Corus, and expands
on our relationship with Disney."

FinancialHighlights

(unaudited) Three months ended Six months ended

(in thousands of February
Canadian dollars 29,
except per share February February February
amounts) 28, 29, 28,

2012 2011 2012 2011

Revenues

Television 163,299 148,429 348,326 315,946

Radio (1) 42,384 42,647 94,248 97,286

205,683 191,076 442,574 413,232

Segment profit

Television 60,421 59,923 140,916 140,192

Radio (1) 9,879 9,672 26,281 28,186

Corporate (8,053) (9,617) (13,736) (17,740)

62,247 59,978 153,461 150,638

Net income
attributable to
shareholders:

From continuing
operations 31,571 27,291 82,119 73,489

From discontinued
operations -- 3,501 -- 5,023

31,571 30,792 82,119 78,512

Basic earningsper
share attributable
to shareholders:

From continuing
operations $ 0.38 $ 0.34 $ 0.99 $ 0.90

From discontinued
operations -- $ 0.04 -- $ 0.06

$ 0.38 $ 0.38 $ 0.99 $ 0.96

(1) Reflects the disposition of the Quebec Radio operations, which
occurred on February 1, 2011, as discontinued operations in all
periods presented.

 

Consolidated Results from Continuing Operations

Consolidated revenues for the three months ended February 29, 2012 were
$205.7 million, up 8% from $191.1 million last year.  Consolidated
segment profit was $62.2 million, up 4% from $60.0 million last year. 
Net income attributable to Shareholders for the second quarter 2012 was
$31.6 million ($0.38 basic and diluted), compared to $27.3 million
($0.34 basic and $0.33 diluted) last year.

Consolidated revenues for the six months ended February 29, 2012 were
$442.6 million, up 7% from $413.2 million last year.  Consolidated
segment profit was $153.5 million, up 2% from $150.6 million last
year.  Net income attributable to Shareholders for the six month period
was $82.1 million ($0.99 basic and diluted), compared to $73.5 million
($0.90 basic and diluted) last year.

Operational Results - Highlights

Television

-- Segment revenues increased 10% in Q2 2012 and year-to-date
-- Segment profit increased 1% in Q2 2012 and year-to-date
-- Specialty advertising revenues increased 4% in Q2 2012 and
year-to-date
-- Subscriber revenues consistent with the prior year in Q2 2012
and year-to-date
-- Merchandise, distribution and other revenue increased 46% in Q2
2012 and 55% year-to-date
-- Movie Central finished Q2 2012 with 988,000 paid subscribers

Radio((1))

-- Segment revenues down 1% in Q2 2012 and down 3% year-to-date
-- Segment expenses down 1% in Q2 2012 and down 2% year-to-date
-- Segment profit increased 2% in Q2 2012 and down 7% year-to-date

((1)) Radio results reflect the disposition of the Quebec Radio operations,
which occurred on February 1, 2011, as discontinued operations in all
periods presented.

Corus Entertainment Inc. reports in Canadian dollars.

About Corus Entertainment Inc.

Corus Entertainment Inc. is a Canadian-based media and entertainment
company.  Corus is a market leader in specialty television and radio
with additional assets in pay television, television broadcasting,
children's book publishing and children's animation.  The company's
multimedia entertainment brands include YTV, Treehouse, Nickelodeon
(Canada), ABC Spark, W Network, OWN: Oprah Winfrey Network (Canada),
CosmoTV, Sundance Channel (Canada), Movie Central, HBO Canada, Nelvana,
Kids Can Press and radio stations including CKNW AM 980, 99.3 The FOX,
Country 105, 630 CHED, Q107, and 102.1 the Edge.  Corus creates
engaging branded entertainment experiences for its audiences across
multiple platforms.  A publicly traded company, Corus is listed on the
Toronto Stock Exchange (CJR.B).  Experience Corus on the web at www.corusent.com.

The unaudited consolidated financial statements and accompanying notes
for the three months ended February 29, 2012 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 April
12, 2012 at 1:00 p.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 North America is 1.800.734.8583 and
for local/international callers is 416.981.9001.  PowerPoint slides for
the call will be posted 15 minutes prior to the start of the call and
can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

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 report 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 statements").  These
forward-looking statements related to, among other things, our
objectives, goals, strategies, intentions, plans, estimates and
outlook, including advertising, distribution, merchandise and
subscription revenues, operating costs and tariffs, taxes and fees, and
can generally be identified by the use of the words such as "believe",
"anticipate", "expect", "intend", "plan", "will", "may" and other
similar expressions.  In addition, any statements that refer to
expectations, projections or other characterizations of future events
or circumstances are forward-looking statements.  Although Corus
believes that the expectations reflected in such forward-looking
statements are reasonable, such statements involve risks and
uncertainties and undue reliance should not be placed on such
statements.  Certain material factors or assumptions are applied in
making forward-looking statements, including without limitation factors
and assumptions regarding advertising, distribution, merchandise and
subscription revenues, operating costs and tariffs, taxes and fees and
actual results may differ materially from those expressed or implied in
such statements.  Important factors that could cause actual results to
differ materially from these expectations include, among other things:
our ability to attract and retain advertising revenues; 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;  and changes in accounting standards.
Additional information about these factors and about the material
assumptions underlying such forward-looking statements may be found in
our Annual Information Form.  Corus cautions that the foregoing list of
important factors that may affect future results is not exhaustive. 
When relying on our forward-looking statements to make decisions with
respect to Corus, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events. Unless
otherwise required by applicable securities laws, we disclaim any
intention or obligation to publicly update or revise any
forward-looking statements whether as a result of new information,
events or circumstances that arise after the date thereof or otherwise.

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at February As at August As at September
29, 31, 1,

(unaudited - in 2012 2011 2010
thousands of
Canadian
dollars)

ASSETS

Current

Cash and cash 65,575 55,922 7,969
equivalents

Accounts 175,170 178,531 175,134
receivable

Income taxes 4,692 603 1,781
recoverable

Prepaid 12,296 13,497 18,008
expenses and
other

Total current 257,733 248,553 202,892
assets

Tax credits 56,671 43,108 39,597
receivable

Intangibles, 40,767 39,980 22,699
investments and
other assets

Property, plant 164,837 169,600 161,585
and equipment

Program and 264,572 256,970 244,963
film rights

Film 78,842 83,133 80,611
investments

Broadcast 569,505 569,505 610,423
licenses

Goodwill 671,827 671,827 695,029

Deferred tax 28,058 30,915 32,130
asset

2,132,812 2,113,591 2,089,929

LIABILITIES AND
SHAREHOLDERS'
EQUITY

Current

Accounts 213,694 206,773 192,839
payable and
accrued
liabilities

Provisions 3,057 5,267 13,048

Total current 216,751 212,040 205,887
liabilities

Long-term debt 567,387 600,796 691,891

Other long-term 88,572 104,574 95,840
liabilities

Deferred tax 143,128 141,361 146,044
liability

Total 1,015,838 1,058,771 1,139,662
liabilities

SHAREHOLDERS'
EQUITY

Share capital 904,856 882,679 856,655

Contributed 7,780 10,299 12,706
surplus

Retained 186,090 143,717 62,509
earnings

Accumulated (629) (1,075) 342
other
comprehensive
income (loss)

Total equity 1,098,097 1,035,620 932,212
attributable to
shareholders

Equity 18,877 19,200 18,055
attributable to
non-controlling
interest

Total 1,116,974 1,054,820 950,267
shareholder's
equity

2,132,812 2,113,591 2,089,929

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three months ended Six months ended

February February February February 28,
29, 28, 29,

(unaudited - in thousands 2012 2011 2012 2011
of Canadian dollars)

Revenues 205,683 191,076 442,574 413,232

Direct cost of sales, 143,436 131,098 289,113 262,594
general and
administrative expenses

Depreciation 6,653 6,053 12,892 12,161

Interest expense 13,410 14,717 26,837 28,790

Restructuring -- -- -- 2,250

Other income, net (1,617) (1,125) (1,170) (1,242)

Income before income 43,801 40,333 114,902 108,679
taxes

Income tax expense 10,262 11,034 28,683 31,362

Net income for the period 33,539 29,299 86,219 77,317
from continuing
operations

Net income for the period -- 3,501 -- 5,023
from discontinued
operations

Net income for the period 33,539 32,800 86,219 82,340

Net income attributable
to:

Shareholders from 31,571 27,291 82,119 73,489
continuing
operations

Shareholders from -- 3,501 -- 5,023
discontinued
operations

Non-controlling 1,968 2,008 4,100 3,828
interest

33,539 32,800 86,219 82,340

Basic earnings per share
attributable to
shareholders:

From continuing $ 0.38 $ 0.34 $ 0.99 $ 0.90
operations

From discontinued -- 0.04 -- 0.06
operations

$ 0.38 $ 0.38 $ 0.99 $ 0.96

Diluted earnings per
share attributable to
shareholders:

From continuing $ 0.38 $ 0.33 $ 0.99 $ 0.90
operations

From discontinued -- 0.04 -- 0.06
operations

$0.38 $ 0.37 $ 0.99 $ 0.96

Net income for the period 33,539 32,800 86,219 82,340

Other comprehensive
income (loss), net of tax

Unrealized foreign (587) (1,108) 537 (1,861)
currency
translation
adjustment

Unrealized change (17) (95) (91) 76
in fair value of
available-for-sale
investments, net
of tax

Actuarial gain on -- 433 -- 433
employee future
benefits

(604) (770) 446 (1,352)

Comprehensive income for 32,935 32,030 86,665 80,988
theperiod

Comprehensive income
attributable to:

Shareholders 30,967 30,022 82,565 77,160

Non-controlling 1,968 2,008 4,100 3,828
interest

32,935 32,030 86,665 80,988

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited - Share Contributed Retained Accumulated Total Non-controlling Total
in thousands capital surplus earnings other attributable interest equity
of Canadian comprehensive to
dollars) income shareholders
(loss)

At August 31, 882,679 10,299 143,717 (1,075) 1,035,620 19,200 1,054,820
2011

Comprehensive -- -- 82,119 446 82,565 4,100 86,665
income

Dividends -- -- (37,968) -- (37,968) (4,423) (42,391)
declared

Issuance of 11,448 (3,111) -- -- 8,337 -- 8,337
shares under
stock option
plan

Issuance of 12,839 -- -- -- 12,839 -- 12,839
shares under
dividend
reinvestment
plan

Shares (2,110) -- (1,778) -- (3,888) -- (3,888)
repurchased

Share-based -- 592 -- -- 592 -- 592
compensation
expense

At February 904,856 7,780 186,090 (629) 1,098,097 18,877 1,116,974
29, 2012

Share Contributed Retained Accumulated Total Non-controlling Total
capital surplus earnings other attributable interest equity
comprehensive to
income shareholders
(loss)

At 856,655 12,706 62,509 342 932,212 18,055 950,267
September1,
2010

Comprehensive -- -- 78,512 (1,352) 77,160 3,828 80,988
income (loss)

Actuarial -- -- 433 (433) -- -- --
gain transfer

Dividends -- -- (30,612) -- (30,612) (4,366) (34,978)
declared

Issuance of 7,911 (2,028) -- -- 5,883 -- 5,883
shares under
stock option
plan

Issuance of 5,056 -- -- -- 5,056 -- 5,056
shares under
dividend
reinvestment
plan

Share-based -- 548 -- -- 548 -- 548
compensation
expense

At February 869,622 11,226 110,842 (1,443) 990,247 17,517 1,007,764
28, 2011

CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended Six months ended

February29, February February 29, February 28,
28,

(unaudited - in 2012 2011 2012 2011
thousands of
Canadian
dollars)

OPERATING
ACTIVITIES

Net income for 33,539 32,800 86,219 82,340
the period

Deduct earnings -- (3,501) -- (5,023)
from
discontinued
operations

Add (deduct)
non-cash items:

Depreciation 6,653 6,053 12,892 12,161

Amortization 46,433 42,847 93,488 85,389
of program
rights

Amortization 7,960 10,591 17,947 18,877
of film
investments

Deferred 3,424 352 4,786 824
income taxes

Share-based 299 295 592 548
compensation
expense

Imputed 2,976 2,484 6,010 5,084
interest

Other (547) (1,327) (790) (1,594)

Net change in 20,665 30,277 (20,726) (2,400)
non-cash
working capital
balances
related to
operations

Payment of (50,997) (34,975) (86,426) (73,128)
program and
film rights

Net additions (16,837) (11,270) (33,973) (33,120)
to film
investments

Cash provided 53,568 74,626 80,019 89,958
by operating
activities from
continuing
operations

Cash used in -- (13,374) -- (13,262)
operating
activities from
discontinued
operations

Cash provided 53,568 61,252 80,019 76,696
by operating
activities

INVESTING
ACTIVITIES

Additions to (4,714) (13,948) (8,084) (27,215)
property, plant
and equipment

Net cash flows (122) (3,382) 1,009 (4,267)
for
intangibles,
investments and
other assets

Other (165) (357) (318) (582)

Cash used in (5,001) (17,687) (7,393) (32,064)
investing
activities from
continuing
operations

Cash provided -- 74,996 -- 74,996
by investing
activities from
discontinued
operations

Cash provided (5,001) 57,309 (7,393) 42,932
by (used
in)investing
activities

FINANCING
ACTIVITIES

Decrease in (34,674) (74,956) (34,674) (44,764)
bank loans

Issuance of 8,251 3,581 8,337 5,884
shares under
stock option
plan

Shares -- -- (3,888) --
repurchased

Dividends paid (12,145) (11,958) (23,820) (23,549)

Dividend paid (200) (160) (4,423) (4,366)
to
non-controlling
interest

Other (2,233) (2,144) (4,505) (4,324)

Cash used in (41,001) (85,637) (62,973) (71,119)
financing
activities from
continuing
operations

Net change 7,566 (28,698) 9,653 (13,225)
during the
period in cash
and cash
equivalents
from continuing
operations

Net change -- 61,622 -- 61,734
during the
period in cash
and cash
equivalents
from
discontinued
operations

Net increase in 7,566 32,924 9,653 48,509
cash and cash
equivalents
during the
period

Cash and cash 58,009 23,554 55,922 7,969
equivalents,
beginning of
period

Cash and cash 65,575 56,478 65,575 56,478
equivalents,
endof period

CORUS ENTERTAINMENT INC.

BUSINESS SEGMENT INFORMATION

(unaudited -
in thousands
of Canadian
dollars)

Three months
ended February
29, 2012

Radio Television Corporate Consolidated

Revenues 42,384 163,299 -- 205,683

Direct cost of 32,505 102,878 8,053 143,436
sales, general
and
administrative
expenses

Segment profit 9,879 60,421 (8,053) 62,247
(loss)

Depreciation 779 787 5,087 6,653

Interest (26) 6,374 7,062 13,410
expense

Other expense 5 (2,363) 741 (1,617)
(income), net

Income (loss) 9,121 55,623 (20,943) 43,801
before income
taxes

Three months
ended February
28, 2011

Radio Television Corporate Consolidated

Revenues 42,647 148,429 -- 191,076

Direct cost of 32,975 88,506 9,617 131,098
sales, general
and
administrative
expenses

Segment profit 9,672 59,923 (9,617) 59,978
(loss)

Depreciation 738 816 4,499 6,053

Interest 966 5,165 8,586 14,717
expense

Other expense (514) (1,585) 974 (1,125)
(income), net

Income (loss) 8,482 55,527 (23,676) 40,333
before income
taxes

Six months
ended February
29, 2012

Radio Television Corporate Consolidated

Revenues 94,248 348,326 -- 442,574

Direct cost of 67,967 207,410 13,736 289,113
sales, general
and
administrative
expenses

Segment profit 26,281 140,916 (13,736) 153,461
(loss)

Depreciation 1,557 1,352 9,983 12,892

Interest 96 13,232 13,509 26,837
expense

Other expense 13 (995) (188) (1,170)
(income), net

Income (loss) 24,615 127,327 (37,040) 114,902
before income
taxes

Six months
ended February
28, 2011

Radio Television Corporate Consolidated

Revenues 97,286 315,946 -- 413,232

Direct cost of 69,100 175,754 17,740 262,594
sales, general
and
administrative
expenses

Segment profit 28,186 140,192 (17,740) 150,638
(loss)

Depreciation 1,496 2,519 8,146 12,161

Interest 2,472 9,877 16,441 28,790
expense

Restructuring 671 3 1,576 2,250

Other expense (494) (2,218) 1,470 (1,242)
(income), net

Income (loss) 24,041 130,011 (45,373) 108,679
before income
taxes

Revenues by
type

Three months ended Six months ended

February February February29, February 28,
29, 28,

2012 2011 2012 2011

Advertising 83,870 82,179 203,319 202,499

Subscriber 75,924 75,599 150,065 149,361
fees

Merchandising, 45,889 33,298 89,190 61,372
distribution
and other

205,683 191,076 442,574 413,232

 

 

 

 

SOURCE Corus Entertainment Inc (IR Group)

Corus Entertainment Inc (IR Group)

CONTACT: John Cassaday 
President and Chief Executive Officer 
Corus Entertainment Inc. 
416.479.6018 

Tom Peddie 
Executive Vice President and Chief Financial Officer   
Corus Entertainment Inc. 
416.479.6080

Sally Tindal
Director, Communications
Corus Entertainment Inc.
416.479.6107

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