Astral shows continued growth in the second quarter of Fiscal 2013

Astral shows continued growth in the second quarter of Fiscal 2013


-- 8% increase in net earnings1
-- 6% increase in diluted EPS1
-- 5% increase in EBITDA2
-- 2% increase in revenues
-- 9% increase in cash flow from operations2


MONTREAL, April 11, 2013 /CNW Telbec/ - Astral Media Inc. (TSX: ACM.A
ACM.B) today reported its financial results for the second quarter
ended February 28, 2013, which saw continued growth in net earnings,
EPS, EBITDA(2), revenues and cash flow from operations(2).



In the second quarter, consolidated net earnings(1) totalled $41.2 million, an 8% increase over the $38.2 million recorded
last year for the same period, while diluted earnings per share(1) rose 6% to $0.73 from $0.69 last year. EBITDA(2) grew 5% to $69.4 million from $66.0 million for the same period last
year, while consolidated revenues reached $237.1 million, a 2% growth
over the $233.5 million recorded last year. Cash flow from operations(2) rose 9% to $54.7 million for the second quarter compared to
$50.2 million for the corresponding period last year.



For the first half of the year, consolidated net earnings(1) grew 7% to $100.8 million from $94.0 million for the same period last
year, while diluted earnings per share(1) increased by 6% to $1.78 from $1.68 last year. EBITDA(2) totalled $163.1 million, a 4% increase over the $156.4 million recorded
last year for the same period, while consolidated revenues rose 1% to
$511.6 million compared to $504.6 million for the corresponding period
last year. Cash flow from operations(2) rose 4% to $123.9 million for the first half of the year compared to
$119.2 million for the corresponding period last year.



"I am very pleased by the Company's performance in the second quarter of
Fiscal 2013, which is Astral's 66(th) consecutive quarter of profitable growth," said Ian Greenberg, Astral's
President and Chief Executive Officer. "Our diversified portfolio,
innovative multiplatform offering and financial discipline enabled us
to thrive in a still challenging market environment."


BELL-ASTRAL TRANSACTION(3)

On March 16, 2012, the Company announced that it entered into a
definitive agreement with Bell for the sale of its business through the
acquisition of all of its issued and outstanding shares. Following the
October 18, 2012 decision of the CRTC to deny Bell's application to
acquire the control of the Company, the Company and Bell announced on
November 19, 2012 that they have amended the arrangement agreement
signed on March 16, 2012 and submitted a new proposal to the CRTC for
approval of Bell's acquisition of the Company. The outside date for the
closing of the transaction is June 1, 2013, with each of the Company
and Bell having a further right to postpone it to July 31, 2013. The
consideration payable to the Company's shareholders remains unchanged
under the amended arrangement agreement.



On March 4, 2013, the Company and Bell announced that the Canadian
Competition Bureau has issued a "no action letter" in connection with
the acquisition of the Company by Bell. The issuance of the no action
letter constitutes one of the two required regulatory approvals
contemplated in the Arrangement Agreement.



The Bell-Astral Transaction remains subject to closing conditions,
including the approval of the CRTC. The CRTC approval is the only
remaining regulatory approval required in connection with the
Bell-Astral Transaction. The CRTC announced on March 6, 2013 that a
public hearing will be held in Montreal, commencing on May 6, 2013, to
consider the new proposal for the approval of the acquisition of the
Company by Bell. There can be no assurance that the Bell-Astral
Transaction will occur, or that it will occur on the terms and
conditions currently contemplated.


FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television


-- 2% revenue growth for the quarter (2% growth for the six-month
period);
-- EBITDA2 growth of 6% for the quarter (5% for the six-month
period);
-- Launch, on February 27, of The Movie Network GO including HBO
GO, a new video streaming service giving subscribers access to
The Movie Network, HBO Canada and TMN Encore from their iPhone,
iPad, iPod touch, Mac or PC at no extra charge. The service is
currently available to Bell TV, Cogeco and Rogers Cable
subscribers.
-- Subsequent to end of quarter, TELETOON Retro reached the nine
million subscribers mark, a record for subscriber penetration
of any all-digital Canadian specialty channel.

Radio


-- Revenue decline of 1% for the quarter, a performance in line
with that of the industry (consistent year-over-year
performance for the six-month period, outperforming the
industry);
-- On February 5, launch of Astral Radio's new Built for
BlackBerry® application.

Out-of-Home


-- Revenue growth of 10% for the quarter (5% growth for the
six-month period);
-- EBITDA2 growth of 9% for the quarter (3% growth for the
six-month period);
-- On December 19, rollout of a new landmark in the domestic jetty
at Montréal-Trudeau international airport;
-- In February, addition of 6 new Digital faces on Toronto's
Gardiner Expressway, bringing Astral's popular national Digital
Network to 51 faces.

Corporate


-- During the quarter, the Company repaid $22.0 million of its
long-term debt for a total of $29.0 million since the beginning
of the fiscal year and reduced its available credit facility by
$240.0 million.
-- On February 1, Astral paid a cash dividend of $28.1 million to
shareholders of record at the close of business on January 15,
2013.


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.



There will be a conference call with analysts and media at 10:30 a.m. ET
on Thursday, April 11, 2013. To access the conference call dial
1-800-731-5319. The conference call will also be broadcast live and
archived for a three-month period on the Astral website at www.astral.com.



Founded in 1961, Astral is one of Canada's largest media companies. It
operates several of the country's most popular pay and specialty
television, radio, out-of-home advertising and digital media
properties. Astral plays a central role in community life across the
country by offering diverse, rich and vibrant programming that meets
the tastes and needs of consumers and advertisers. To learn more about
Astral, visit www.astral.com.


This press release contains certain forward-looking statements
concerning the future performance of the Company. These forward-looking
statements are based on current expectations. We caution that all
forward-looking information is inherently uncertain and actual results
may differ materially from the assumptions, estimates or expectations
reflected or contained in the forward-looking information, and that
actual future performance will be affected by a number of factors,
including technological change, economic conditions, regulatory change,
competitive factors and changes in accounting rules or standards, many
of which are beyond the Company's control. Except as required under
applicable securities regulations, we disclaim any intention or
obligation to update or revise any forward-looking statements.



1. Excluding Bell-Astral transaction costs in Fiscal 2013 and
acquisition and other costs in Fiscal 2012. 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
February 28, 2013.




ASTRAL MEDIA INC.
Interim Consolidated Statements of Earnings
for the periods ended February 28, 2013 and February 29, 2012

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







3 months 6 months

2013 2012 2013 2012



Revenues $ 237,102 $ 233,503 $ 511,567 $ 504,603



Operating expenses 167,662 167,459 348,473 348,158

Depreciation of property,
plant and equipment 7,040 7,360 13,971 14,866

Amortization of other
intangible and non-current
assets 2,406 1,976 4,769 3,938

Financial expense, net 3,024 3,973 5,860 7,926

Acquisition and other costs - 4,311 - 4,311

Bell-Astral Transaction costs 4,004 - 4,664 -



Earnings before income taxes 52,966 48,424 133,830 125,404



Income tax expense 14,637 13,419 36,396 34,643



Net earnings $ 38,329 $ 35,005 $ 97,434 $ 90,761



Earnings per share

- Basic $ 0.68 $ 0.63 $ 1.74 $ 1.64

- Diluted $ 0.68 $ 0.63 $ 1.72 $ 1.62




 






ASTRAL MEDIA INC. 
Interim Consolidated Statements of Comprehensive Income
for the periods ended February 28, 2013 and February 29, 2012

(in thousands of Canadian dollars)
(unaudited)








3 months 6 months

2013 2012 2013 2012



Net earnings $ 38,329 $ 35,005 $ 97,434 $ 90,761

Item that is never
subsequently reclassified to
the statements of earnings

Actuarial gain (loss) on
employee future benefit
plans, net of income tax
expense (recovery) of $3.0
million and ($1.3 million)
respectively for the three
months, and $1.2 million and
($3.7 million) respectively
for the six months 8,122 (3,591) 3,292 (10,363)

Item that may be subsequently
reclassified to the statements
of earnings

Change in fair value of
derivatives designated as
cash flow hedges, net of
income tax expense
(recovery) of ($0.1 million)
and $0.5 million
respectively for the three
months, and ($0.3 million)
and $0.6 million
respectively for the six
months (181) 1,523 (844) 1,633



Other comprehensive income 2,448
(loss) 7,941 (2,068) (8,730)



Comprehensive income $ 46,270 $ 32,937 $ 99,882 $ 82,031




 




ASTRAL MEDIA INC. 
Interim Consolidated Statements of Cash Flows
for the periods ended February 28, 2013 and February 29, 2012

(in thousands of Canadian dollars)
(unaudited)







3 months 6 months

2013 2012 2013 2012



OPERATING ACTIVITIES

Net earnings $ 38,329 $ 35,005 $ 97,434 $ 90,761



Non-cash items:

Stock-based 2,699 1,872 4,797 4,024
compensation costs

Depreciation and 9,446 9,336 18,740 18,804
amortization

Imputed interest, net 372 426 660 685

Amortization of 606 272 887 477
deferred financing
costs

Deferred tax expense 3,270 3,288 1,368 4,410



Cash flows from 54,722 50,199 123,886 119,161
operations

Net change in non-cash 22,357 6,260 (22,484) (38,847)
operating items



Cash provided by 77,079 56,459 101,402 80,314
operating activities







INVESTING ACTIVITIES

Additions to property, (6,382) (6,808) (16,090) (12,382)
plant and equipment

Additions to other (2,040) (1,344) (3,039) (2,296)
intangible and
non-current assets

Business acquisition, - (11,520) - (11,520)
net of cash acquired

Cash used for investing (8,422) (19,672) (19,129) (26,198)
activities



FINANCING ACTIVITIES

Repayment of long-term (22,000) (20,000) (29,000) (30,000)
debt

Deferred financing - (6) - (2,017)
costs

Stock options exercised 4,642 14,166 6,344 17,276

Shares repurchased - (6,369) - (14,126)

Dividends (28,061) (27,919) (28,061) (27,923)

Cash used for financing (45,419) (40,128) (50,717) (56,790)
activities



Net change in cash 23,238 (3,341) 31,556 (2,674)

Cash - beginning of 29,210 23,320 20,892 22,653
period

Cash - end of period $ 52,448 $ 19,979 $ 52,448 $ 19,979







ASTRAL MEDIA INC.  
Interim Consolidated Balance Sheets as at

(in thousands of Canadian dollars)
(unaudited)







February 28, August 31,
2013 2012



ASSETS

Current

Cash $ 52,448 $ 20,892

Accounts receivable 172,193 174,384

Program and film rights 114,331 114,753

Prepaid expenses and other current assets 30,561 29,007

369,533 339,036



Program and film rights 58,478 51,208

Property, plant and equipment 209,216 210,035

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

Goodwill 118,489 118,489

Other intangible and non-current assets 62,605 64,750

Non-current financial assets 15,691 16,084

Deferred tax assets 37,831 34,582

$ 2,503,150 $ 2,465,491



LIABILITIES

Current

Accounts payable and accrued liabilities $ 115,775 $ 141,729

Provisions 2,978 5,319

Income taxes payable 18,192 15,531

Program and film rights payable 75,380 63,619

212,325 226,198



Long-term debt 362,025 390,138

Deferred tax liabilities 136,882 131,377

Program and film rights payable 9,568 7,446

Provisions 6,258 6,717

Other non-current liabilities 67,494 76,556

Other non-current financial liabilities 8,910 8,466

803,462 846,898



SHAREHOLDERS' EQUITY

Capital stock 788,381 778,548

Contributed surplus 19,886 20,445

Retained earnings 892,135 819,470

Accumulated other comprehensive income (loss) (714) 130

891,421 819,600

1,699,688 1,618,593

$ 2,503,150 $ 2,465,491







ASTRAL MEDIA INC.
Business Segments
for the periods ended February 28, 2013 and February 29, 2012

(in thousands of Canadian dollars)
(unaudited)







3 months 6 months

2013 2012 2013 2012



REVENUES



Television $ 143,209 $ 140,561 $ 299,036 $ 294,113

Radio 73,254 74,197 162,040 162,488

Out-of-Home 20,639 18,745 50,491 48,002



$ 237,102 $ 233,503 $ 511,567 $ 504,603





EBITDA(1)



Television $ 52,778 $ 49,665 $ 114,029 $ 108,273

Radio 17,569 18,396 45,342 45,987

Out-of-Home 4,689 4,310 16,624 16,145

Corporate (5,596) (6,327) (12,901) (13,960)





$ 69,440 $ 66,044 $ 163,094 $ 156,445











(1) See Appendix 1.






ASTRAL MEDIA INC.
Appendix 1
Additional IFRS and Non-IFRS Measures
for the periods ended February 28, 2013 and February 29, 2012

(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 acquisition and other costs, and
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 February 28, 2013 and
February 29, 2012 to EBITDA:






3 months 6 months

(in thousands 2013 2012 2013 2012
of $)



Earnings 52,966 48,424 133,830 125,404
before income
taxes

Depreciation 9,446 9,336 18,740 18,804
and
amortization

Financial 3,024 3,973 5,860 7,926
expense, net

Acquisition - 4,311 - 4,311
and other
costs

Bell-Astral 4,004 - 4,664 -
Transaction
costs

EBITDA 66,044 163,094 156,445
69,440






Net earnings and diluted earnings per share before acquisition and other
costs, and 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 acquisition and other costs, and 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
February 28, 2013 and February 29, 2012 to net earnings and diluted
earnings per share before acquisition and other costs, and Bell-Astral
Transaction costs:






3 months 6 months

(in thousands of $) 2013 2012 2013 2012



Net earnings 38,329 35,005 97,434 90,761

Acquisition and other costs, net of - 3,198 - 3,198
income taxes

Bell-Astral Transaction costs, net of 2,896 - 3,380 -
income taxes

Net earnings before acquisition and 41,225 38,203 100,814 93,959
other costs, and Bell-Astral Transaction
costs





3 months 6 months

(in dollars) 2013 2012 2013 2012



Diluted earnings per share 0.68 0.63 1.72 1.62

Acquisition and other costs, net of - 0.06 - 0.06
income taxes

Bell-Astral Transaction costs, net of 0.05 - 0.06 -
income taxes

Diluted earnings per share before 0.73 0.69 1.78 1.68
acquisition and other costs, and
Bell-Astral Transaction costs







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.

Astral Media Inc.

CONTACT:
Media: Olivier Racette
Advisor, Corporate Communications
Astral Media Inc.
514-939-5000
oracette@astral.com Analysts : Robert Fortier
Vice-President, Finance and 
Chief Financial Officer
Astral Media Inc.
514-939-5000
rfortier@astral.com


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