Corus Entertainment Announces Fiscal 2016 Third Quarter Results

  • Closed the acquisition of Shaw Media Inc. on April 1, 2016
  • Consolidated revenues up 78% for the quarter and 27% for the year-to-date
  • Consolidated segment profit(1) up 90% for the quarter and 38% (31% adjusted(1)(2)) for the year-to-date
  • Net loss attributable to shareholders of $15.8 million ($0.10 loss per share basic) for the quarter and net income attributable to shareholders of $127.8 million ($1.16 earnings per share basic) for the year-to-date
  • Adjusted basic earnings per share(1)(2) of $0.34 per share for the quarter and $1.05 per share for the year-to-date

TORONTO, July 13, 2016 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its third quarter financial results today.

"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) 


2016

2015


2016

2015

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 2016 Report to Shareholders.  

(2)

For the three months ended May 31, 2016,  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, 2016, 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, 2015, 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, 2015, 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, 2016, 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, 2016).

In addition, for fiscal 2016, certain of Corus' Pay Television business' ("Pay TV") assets and liabilities were reclassified as held for disposal effective November 19, 2015 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, 2016.  However, intangible assets classified as held for disposal ceased being amortized effective November 19, 2015 and as a consequence, amortization of program and film rights in the Television segment for the nine months ended May 31, 2016 is approximately $15.6 million lower than it would have been had amortization on these assets not ceased.  On February 29, 2016, 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, 2016).

Consolidated revenues for the three months ended May 31, 2016 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 2016 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, 2016 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, 2016 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, 2016 includes 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, 2015 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

  • Ceased Pay TV operations February 29, 2016
  • Shaw Media Inc. operating results included commencing April 1, 2016
  • Advertising revenues increased 236% in Q3 2016 and 71% for the year-to-date
  • Subscriber revenues increased 16% in Q3 2016 and 8% for the year-to-date
  • Merchandising, distribution and other revenues increased 24% in Q3 2016 and 30% for the year-to-date
  • Segment profit(1) increased 100% in Q3 2016 and 43% for the year-to-date
  • Adjusted segment profit(1) (2) increased 36% for the year-to-date
  • Adjusted segment profit margin(1)(2) was 40% in Q3 2016 and 42% for the year-to-date

Radio

  • Segment revenues decreased 2% in Q3 2016 and 3% for the year-to-date
  • Segment profit(1) increased 2% in Q3 2016 and decreased 3% for the year-to-date
  • Segment profit margin(1) of 24% in Q3 2016 and 23% for the year-to-date

(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 2016 Report to Shareholders.

(2)

For the nine months ended May 31, 2016, 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, 2016 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 July 13, 2016 at 9:00 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 1.416.359.3130 and for North America is 1.800.694.7044.  More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of adjusted net income attributable to shareholders, adjusted basic earnings per share and free cash flow 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.

Caution Concerning Forward-Looking Statements

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 relate 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 other should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise required by applicable securities laws, Corus disclaims 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.

About Corus Entertainment Inc.

Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that creates and delivers high quality brands and content across platforms for audiences around the world. The company's portfolio of multimedia offerings encompasses 45 specialty television services, 39 radio stations, 15 conventional television stations, a global content business, digital assets, live events, children's book publishing, animation software, technology and media services. Corus' roster of premium brands include Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, HISTORY®, Showcase, National Geographic, Q107, CKNW, Fresh Radio, Disney Channel Canada, YTV and Nickelodeon Canada. Visit Corus at www.corusent.com.


CORUS ENTERTAINMENT INC.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION








As at May 31,


As at August 31,

(unaudited - in thousands of Canadian dollars)


2016


2015

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)

2016

2015

2016

2015

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
capital

Contributed
surplus

Retained
earnings

Accumulated
other
comprehensive
income (loss)

Total equity
attributable
to
shareholders

Non-
controlling
interest

Total equity









At August 31, 2015

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, 2016

2,138,166

10,140

205,786

2,074

2,356,166

159,258

2,515,424









At August 31, 2014

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, 2015

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)

2016

2015

2016

2015

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, 2016


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, 2015



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, 2016







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, 2015







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 2015 Report to Shareholders.



 


Revenues by type











Three months ended

Nine months ended


May 31,

May 31,


2016

2015

2016

2015

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,




2016

2015

2016

2015

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.

For further information: Doug Murphy, President and Chief Executive Officer, Corus Entertainment Inc., 416.479.6649; Tom Peddie, Executive Vice President and Chief Financial Officer, Corus Entertainment Inc., 416.479.6080; Dervla Kelly, Vice President, Communications, Corus Entertainment Inc., 416.934.7121

RELATED LINKS
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