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      CORUS ENTERTAINMENT ANNOUNCES FISCAL 2022 SECOND QUARTER RESULTS


      News provided by

      Corus Entertainment Inc.

      Apr 08, 2022, 06:00 ET

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      • Consolidated revenue increased 1% for the quarter and 6% year-to-date
      • Consolidated segment profit(1) decreased 23% for the quarter and 9% year-to-date
      • Consolidated segment profit margin(1) of 24% for the quarter and 32% year-to-date
      • Net income attributable to shareholders of $16.2 million ($0.08 per share basic) for the quarter and $92.4 million ($0.44 per share basic) year-to-date
      • Net debt to segment profit(1) of 2.70 times at February 28, 2022, down from 2.76 times at August 31, 2021
      • Free cash flow(1) of $88.4 million for the quarter and $168.4 million year-to-date

      TORONTO, April 8, 2022 /PRNewswire/ - Corus Entertainment Inc. (TSX: CJR.B) announced its second quarter financial results today.

      "Corus has delivered modest consolidated revenue growth in a challenging macroeconomic environment in the second quarter," said Doug Murphy, President and Chief Executive Officer. "Our Q2 results reflect strong subscriber revenue gains and a recovery in our radio business, offset primarily by lower timing-related content licensing revenues. We delivered strong free cash flow and strengthened our capital structure, providing a solid foundation for our growth initiatives in the years to come. At the mid-way point of our year, Corus is well positioned to benefit from the disciplined execution of our strategic plan and priorities as the economy reopens."

      Financial Highlights


      Three months ended



      Six months ended



      February 28,

      %


      February 28,

      %

      (in thousands of Canadian dollars except per share amounts)

      2022

      2021

      Change


      2022

      2021

      Change

      Revenue








      Television

      339,661

      338,519

      0%


      774,408

      730,621

      6%

      Radio

      22,000

      20,355

      8%


      51,126

      48,608

      5%


      361,661

      358,874

      1%


      825,534

      779,229

      6%







      Segment profit (loss) (1)








      Television (2) (3)

      92,723

      119,556

      (22%)


      271,609

      299,121

      (9%)

      Radio (2) (3)

      125

      1,409

      (91%)


      5,871

      8,550

      (31%)

      Corporate (2)

      (6,292)

      (8,325)

      (24%)


      (13,754)

      (16,424)

      (16%)


      86,556

      112,640

      (23%)


      263,726

      291,247

      (9%)







      Segment profit margin (1)








      Television

      27%

      35%



      35%

      41%

      Radio

      1%

      7%



      11%

      18%


      Consolidated

      24%

      31%



      32%

      37%








      Net income attributable to shareholders

      16,221

      35,300

      (54%)


      92,386

      111,964

      (17%)

      Basic earnings per share

      $0.08

      $0.17



      $0.44

      $0.54


      Diluted earnings per share

      $0.08

      $0.17



      $0.44

      $0.54








      Free cash flow (1)

      88,417

      89,690

      (1%)


      168,404

      152,064

      11%



      (1)

      In addition to disclosing results in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), the Company also provides supplementary non-IFRS measures as a method of evaluating the Company's performance and to provide a better understanding of how management views the Company's performance. These non-IFRS or non-GAAP measures include: segment profit (loss), segment profit margin, free cash flow, net debt to segment profit, optimized advertising revenue and new platform revenue. These are not measurements in accordance with IFRS and should not be considered as an alternative to any other measure of performance under IFRS. Please see additional discussion and reconciliations under the Key Performance Indicators section of the Company's Second Quarter 2022 Report to Shareholders.

      (2)

      No claims for the Canada Emergency Wage Subsidy ("CEWS") have been made in fiscal 2022. In the prior year, segment profit for the quarter included $4.4 million (Television: $3.6 million; Radio: $0.7 million; Corporate: $0.1 million) and $8.2 million year-to-date (Television: $6.1 million; Radio: $1.1 million; Corporate: $1.0 million) of CEWS.

      (3)

      In the prior year, segment profit included relief on regulatory fees. As a result, CRTC part I and II fees have increased by $7.8 million (Television: $7.1 million; Radio: $0.7 million) in the quarter and by $8.4 million year-to-date (Television: $7.7 million; Radio: $0.7 million) compared to the same prior year periods.


      Segment Revenue


      Three months ended



      Six months ended



      February 28,

      %


      February 28,

      %

      (in thousands of Canadian dollars)

      2022

      2021

      Change


      2022

      2021

      Change

      Revenue








      Television

      339,661

      338,519

      0%


      774,408

      730,621

      6%

      Advertising

      184,695

      185,821

      (1%)


      469,732

      432,079

      9%

      Subscriber

      132,823

      124,211

      7%


      260,358

      247,912

      5%

      Merchandising, distribution and other

      22,143

      28,487

      (22%)


      44,318

      50,630

      (12%)

      Radio

      22,000

      20,355

      8%


      51,126

      48,608

      5%

      Total Revenue

      361,661

      358,874

      1%


      825,534

      779,229

      6%









      Optimized advertising revenue (1)

      42%

      28%

      49%


      39%

      27%

      58%

      New platform revenue (2)

      10%

      8%

      38%


      9%

      7%

      40%



      (1)

      Optimized Advertising Revenue does not have a standardized meaning prescribed by IFRS. 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. Refer to footnote 1 on page 1 of this press release for additional information.

      (2)

      New Platform Revenue does not have a standardized meaning prescribed by IFRS. 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. Refer to footnote 1 on page 1 of this press release for additional information.

      Operational Highlights

      The Company advanced its Strategic Priorities on multiple fronts. Corus expanded its digital and traditional video advertising offerings; new content development partnerships and international sales were secured through Corus' content business and the Company significantly increased its financial flexibility with the issuance of Senior Unsecured Notes and the extension of its credit facilities.

      • On February 9, 2022, the Company announced the expansion of its premium, multi-channel streaming service STACKTV onto Rogers Ignite TV and Ignite SmartStream platforms. This marks the first time STACKTV is available as a stand-alone streaming channels bundle through a traditional distribution partner. Corus also highlighted the addition of Lifetime to its suite of networks on STACKTV.
      • As of April 4, 2022, the Company reached a new milestone of nearly 750,000 paying subscribers to its STACKTV, Nick+ and other streaming platforms, an increase from more than 725,000 paying subscribers on January 10, 2022.
      • On March 1, 2022, the Company announced the Canadian launch of Magnolia Network - Chip and Joanna Gaines' joint media venture with Discovery, Inc. The Company exclusively debuted Magnolia Network on March 28, 2022, becoming the first broadcaster outside of the U.S. to launch the channel.
      • On April 7, 2022, the Company's Corus Studios announced its largest U.S. output deal ever with streaming platform Hulu. This new multi-year agreement consists of over 400 episodes of lifestyle, renovation, unscripted and crime content from Corus Studios, building on the previously announced sale to Hulu of 200+ episodes last year.

      Financial Highlights

      • Free cash flow(1) of $88.4 million in Q2 and $168.4 million year-to-date compared to $89.7 million and $152.1 million year-to-date, respectively, in the same comparable prior year periods. The decrease in free cash flow(1) in the second quarter is attributable to a decrease in cash provided by operating activities, offset by a reduction in cash used in investing activities. The increase in free cash flow(1) for the six months ended February 28, 2022 is mainly attributable to a $43.5 million venture fund distribution, offset by a decrease in cash provided by operating activities of $25.9 million.
      • On February 28, 2022, the Company issued $250.0 million in principal amount of 6.0% Senior Unsecured Notes due February 28, 2030 (the "Notes"). The net proceeds therefrom were used to repay amounts under the Company's Term Credit Facility (the "Term Facility").
      • Subsequent to the quarter, the Company's credit agreement with a syndicate of banks was amended and restated effective March 18, 2022. The principal amendments effected extended the maturity dates for the Term Facility and bank revolving credit facility (the "Revolving Facility") to March 18, 2027.
      • Net debt to segment profit(1) was 2.70 times at February 28, 2022, down from 2.76 times at August 31, 2021, principally due to the repayment of bank loans, net of Notes issuance, in the current year of $70.2 million year-to-date, offset by the addition of $13.5 million in production financing for an acquired subsidiary.
      • As of February 28, 2022, the Company had $95.5 million of cash and cash equivalents and the committed $300.0 million Revolving 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 Second Quarter 2022 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended August 31, 2021.

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

      The unaudited interim condensed consolidated financial statements and accompanying notes for the three and six months ended February 28, 2022 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section and under the Company's SEDAR profile at www.sedar.com.

      A conference call with Corus senior management is scheduled for April 8, 2022 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 1.647.794.4605 and for North America is 1.888.204.4368. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

      COVID-19 Update

      Many provinces and territories have begun the gradual lifting of health restrictions related to COVID-19, which may see a phased return to on-site work across various sectors. Disruptions caused by imposition or removal of public health restrictions and rising COVID-19 infection rates, including labour shortages, employee absenteeism at the Company or its clients and suppliers, changes in consumer demand, and supply chain shortages or disruptions, particularly in the retail, tourism and entertainment sectors, can negatively impact the Company's operations and financial performance, including advertising revenue. There can be no certainty that current vaccination and public health measures can mitigate negative impacts caused by the COVID-19 pandemic on the Company's business in the short to medium term.

      Use of Non-IFRS Financial Measures

      This press release includes the non-IFRS financial measures of segment profit, segment profit margin, free cash flow, adjusted net income, adjusted basic earnings per share, net debt to segment profit, optimized advertising 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 for the three and six months ended February 28, 2022, 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"). This forward-looking information relates to, among other things, the Company's objectives, goals, strategies, targets, intentions, plans, estimates and outlook, including the adoption and anticipated impact of the Company's strategic plan, advertising and expectations of advertising trends for fiscal 2022, distribution, merchandise and subscription revenue, the Company's dividend policy and the payment of future dividends; the Company's leverage target; the Company's proposed share purchases, including the number of Class B non-voting shares to be repurchased under its normal course issuer bid, if any, and timing thereof; and expectations regarding financial performance including capital allocation strategy and capital structure management, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" or the negative of these terms 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, the Company's ability to source desirable content and the Company's capital and operating results being consistent with the Company's 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: the Company's ability to attract and retain advertising revenue; audience acceptance of the Company's television programs and cable networks; the Company's ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; the Company's 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 the Company; 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; the Company's ability to integrate and realize anticipated benefits from its acquisitions and to effectively manage its growth; the Company's ability to successfully defend itself against litigation matters arising out of the ordinary course of business; failure to meet covenants under the Company's senior credit facility, senior unsecured notes or other instruments or facilities; 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 Company's Management's Discussion and Analysis for the year ended August 31, 2021 and under the heading "Risk Factors" in the Company's Annual Information Form for the year ended August 31, 2021. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on the Company's 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, Magnolia Network Canada, The HISTORY® Channel, 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




      As at February 28,

      As at August 31,

      (unaudited - in thousands of Canadian dollars)

      2022

      2021

      ASSETS



      Current



      Cash and cash equivalents

      95,450

      43,685

      Accounts receivable

      387,010

      325,587

      Income taxes recoverable

      1,517

      5,597

      Prepaid expenses and other assets

      23,623

      24,106

      Total current assets

      507,600

      398,975

      Tax credits receivable

      41,910

      24,501

      Investments and other assets

      82,449

      98,667

      Property, plant and equipment

      301,976

      316,226

      Program rights

      668,490

      576,076

      Film investments

      57,686

      39,732

      Intangibles

      1,671,864

      1,687,432

      Goodwill

      666,753

      664,958

      Deferred income tax assets

      43,906

      50,050


      4,042,634

      3,856,617




      LIABILITIES AND EQUITY



      Current



      Accounts payable and accrued liabilities

      584,648

      509,817

      Current portion of long-term debt

      13,933

      35,328

      Provisions

      5,181

      7,202

      Total current liabilities

      603,762

      552,347

      Long-term debt

      1,286,423

      1,313,965

      Other long-term liabilities

      418,619

      331,482

      Provisions

      9,069

      9,497

      Deferred income tax liabilities

      421,475

      428,963

      Total liabilities

      2,739,348

      2,636,254




      EQUITY



      Share capital

      809,932

      816,189

      Contributed surplus

      1,511,217

      1,512,431

      Accumulated deficit

      (1,214,468)

      (1,282,897)

      Accumulated other comprehensive income

      36,012

      21,811

      Total equity attributable to shareholders

      1,142,693

      1,067,534

      Equity attributable to non-controlling interest

      160,593

      152,829

      Total equity

      1,303,286

      1,220,363


      4,042,634

      3,856,617


      CORUS ENTERTAINMENT INC.

      CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


      Three months ended

      Six months ended


      February 28,

      February 28,

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

      2022

      2021

      2022

      2021

      Revenue

      361,661

      358,874

      825,534

      779,229

      Direct cost of sales, general and administrative expenses

      275,105

      246,234

      561,808

      487,982

      Depreciation and amortization

      39,747

      38,301

      77,128

      76,288

      Interest expense

      25,759

      24,347

      51,281

      49,083

      Restructuring and other costs

      1,011

      2,988

      2,054

      7,324

      Other income, net

      (5,938)

      (6,292)

      (2,801)

      (6,857)

      Income before income taxes

      25,977

      53,296

      136,064

      165,409

      Income tax expense

      6,029

      13,399

      35,187

      42,964

      Net income for the period

      19,948

      39,897

      100,877

      122,445

      Other comprehensive income, net of income taxes:





      Items that may be reclassified subsequently to income:





      Unrealized change in fair value of cash flow hedges

      1,515

      2,542

      3,501

      5,029

      Unrealized foreign currency translation adjustment

      (225)

      (383)

      32

      (412)


      1,290

      2,159

      3,533

      4,617

      Items that will not be reclassified to income:





      Unrealized change in fair value of financial assets

      (2,912)

      (808)

      10,668

      (1,587)

      Actuarial gain on post-retirement benefit plans

      3,128

      6,344

      2,460

      9,729


      216

      5,536

      13,128

      8,142

      Other comprehensive income, net of income taxes

      1,506

      7,695

      16,661

      12,759

      Comprehensive income for the period

      21,454

      47,592

      117,538

      135,204






      Net income attributable to:





      Shareholders

      16,221

      35,300

      92,386

      111,964

      Non-controlling interest

      3,727

      4,597

      8,491

      10,481


      19,948

      39,897

      100,877

      122,445






      Comprehensive income attributable to:





      Shareholders

      17,727

      42,995

      109,047

      124,723

      Non-controlling interest

      3,727

      4,597

      8,491

      10,481


      21,454

      47,592

      117,538

      135,204






      Earnings per share attributable to shareholders:





      Basic

      $0.08

      $0.17

      $0.44

      $0.54

      Diluted

      $0.08

      $0.17

      $0.44

      $0.54

      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

      Total equity
      attributable to
      shareholders

      Non-
      controlling
      interest

      Total equity

      As at August 31, 2021

      816,189

      1,512,431

      (1,282,897)

      21,811

      1,067,534

      152,829

      1,220,363

      Comprehensive income

      —

      —

      92,386

      16,661

      109,047

      8,491

      117,538

      Dividends declared

      —

      —

      (24,996)

      —

      (24,996)

      (6,625)

      (31,621)

      Business acquisition

      —

      —

      —

      —

      —

      436

      436

      Change in fair value of put option 








      liability arising from business 








      acquisition

      —

      —

      (1,421)

      —

      (1,421)

      (257)

      (1,678)

      Shares repurchased under 








      normal course issuer bid








      ("NCIB")

      (4,919)

      (1,439)

      —

      —

      (6,358)

      —

      (6,358)

      Share repurchase commitment 








      under NCIB

      (1,338)

      (386)

      —

      —

      (1,724)

      —

      (1,724)

      Actuarial gain on post-retirement 








      benefit plans

      —

      —

      2,460

      (2,460)

      —

      —

      —

      Share-based compensation expense

      —

      611

      —

      —

      611

      —

      611

      Equity funding by a non-








      controlling interest

      —

      —

      —

      —

      —

      5,719

      5,719

      As at February 28, 2022

      809,932

      1,511,217

      (1,214,468)

      36,012

      1,142,693

      160,593

      1,303,286









      (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

      —

      —

      111,964

      12,759

      124,723

      10,481

      135,204

      Dividends declared

      —

      —

      (24,996)

      —

      (24,996)

      (8,407)

      (33,403)

      Actuarial gain on post-retirement 








      benefit plans

      —

      —

      9,729

      (9,729)

      —

      —

      —

      Share-based compensation expense

      —

      561

      —

      —

      561

      —

      561

      Return of capital to non-controlling 








      interest

      —

      —

      —

      —

      —

      (1,622)

      (1,622)

      Equity funding by a non-controlling 








      interest

      —

      —

      —

      —

      —

      2,126

      2,126

      Reallocation of equity interest

      —

      —

      617

      —

      617

      (617)

      —

      As at February 28, 2021

      816,189

      1,511,886

      (1,328,118)

      772

      1,000,729

      150,556

      1,151,285

      CORUS ENTERTAINMENT INC.

      CONSOLIDATED STATEMENTS OF CASH FLOWS


      Three months ended

      Six months ended



      February 28,


      February 28,

      (unaudited - in thousands of Canadian dollars)

      2022

      2021

      2022

      2021

      OPERATING ACTIVITIES





      Net income for the period

      19,948

      39,897

      100,877

      122,445

      Adjustments to reconcile net income to cash flow from operations:





      Amortization of program rights

      133,928

      126,138

      276,120

      235,860

      Amortization of film investments

      3,473

      2,656

      7,084

      6,920

      Depreciation and amortization

      39,747

      38,301

      77,128

      76,288

      Deferred income tax recovery

      (2,439)

      (10,878)

      (2,481)

      (16,237)

      Share-based compensation expense

      317

      269

      611

      561

      Imputed interest

      11,869

      11,009

      23,140

      22,043

      Deferred fees write-off

      402

      —

      402

      —

      Payment of program rights

      (136,037)

      (121,147)

      (230,208)

      (202,257)

      Net spend on film investments

      (12,329)

      (7,557)

      (27,594)

      (17,306)

      CRTC benefit payments

      —

      (23)

      —

      (635)

      Other

      (5,054)

      607

      (5,056)

      1,279

      Cash flow from operations

      53,825

      79,272

      220,023

      228,961

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

      38,674

      14,436

      (88,821)

      (71,872)

      Cash provided by operating activities

      92,499

      93,708

      131,202

      157,089

      INVESTING ACTIVITIES





      Additions to property, plant and equipment

      (4,171)

      (3,206)

      (6,047)

      (4,182)

      Proceeds from sale of property

      100

      147

      125

      147

      Business combination, net of cash acquired

      2,606

      —

      2,606

      —

      Venture fund distribution

      —

      —

      43,478

      —

      Net cash flows for intangibles, investments and other assets

      (596)

      (1,349)

      (1,218)

      (1,780)

      Cash provided by (used in) investing activities

      (2,061)

      (4,408)

      38,944

      (5,815)

      FINANCING ACTIVITIES





      Decrease in bank loans

      (271,225)

      (61,119)

      (319,758)

      (94,636)

      Financing fees

      (4,400)

      —

      (4,400)

      —

      Issuance of senior unsecured notes

      250,000

      —

      250,000

      —

      Share repurchase under NCIB

      (5,850)

      —

      (5,850)

      —

      Return of capital to non-controlling interest

      —

      —

      —

      (1,622)

      Equity funding by a non-controlling interest

      3,742

      2,126

      3,742

      2,126

      Payment of lease liabilities

      (4,153)

      (3,999)

      (8,168)

      (7,966)

      Dividends paid

      (12,499)

      (12,499)

      (24,996)

      (24,996)

      Dividends paid to non-controlling interest

      (3,700)

      (4,162)

      (6,625)

      (8,407)

      Other

      (215)

      (362)

      (2,326)

      (2,451)

      Cash used in financing activities

      (48,300)

      (80,015)

      (118,381)

      (137,952)

      Net change in cash and cash equivalents during the period

      42,138

      9,285

      51,765

      13,322

      Cash and cash equivalents, beginning of the period

      53,312

      49,937

      43,685

      45,900

      Cash and cash equivalents, end of the period

      95,450

      59,222

      95,450

      59,222

      CORUS ENTERTAINMENT INC.





      BUSINESS SEGMENT INFORMATION










      (unaudited - in thousands of Canadian dollars)





      Three months ended February 28, 2022






      Television

      Radio

      Corporate

      Consolidated

      Revenue

      339,661

      22,000

      —

      361,661

      Direct cost of sales, general and administrative expenses

      246,938

      21,875

      6,292

      275,105

      Segment profit (loss)(1)

      92,723

      125

      (6,292)

      86,556

      Depreciation and amortization




      39,747

      Interest expense




      25,759

      Restructuring and other costs




      1,011

      Other income, net




      (5,938)

      Income before income taxes




      25,977






      Three months ended February 28, 2021






      Television

      Radio

      Corporate

      Consolidated

      Revenue

      338,519

      20,355

      —

      358,874

      Direct cost of sales, general and administrative expenses

      218,963

      18,946

      8,325

      246,234

      Segment profit (loss)(1)

      119,556

      1,409

      (8,325)

      112,640

      Depreciation and amortization




      38,301

      Interest expense




      24,347

      Restructuring and other costs




      2,988

      Other income, net




      (6,292)

      Income before income taxes




      53,296






      Six months ended February 28, 2022






      Television

      Radio

      Corporate

      Consolidated

      Revenue

      774,408

      51,126

      —

      825,534

      Direct cost of sales, general and administrative expenses

      502,799

      45,255

      13,754

      561,808

      Segment profit (loss)(1)

      271,609

      5,871

      (13,754)

      263,726

      Depreciation and amortization




      77,128

      Interest expense




      51,281

      Restructuring and other costs




      2,054

      Other income, net




      (2,801)

      Income before income taxes




      136,064






      Six months ended February 28, 2021






      Television

      Radio

      Corporate

      Consolidated

      Revenue

      730,621

      48,608

      —

      779,229

      Direct cost of sales, general and administrative expenses

      431,500

      40,058

      16,424

      487,982

      Segment profit (loss)(1)

      299,121

      8,550

      (16,424)

      291,247

      Depreciation and amortization




      76,288

      Interest expense




      49,083

      Restructuring and other costs




      7,324

      Other income, net




      (6,857)

      Income before income taxes




      165,409



      (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 Second Quarter 2022 Report to Shareholders.

      REVENUE BY TYPE






      Three months ended

      Six months ended



      February 28,


      February 28,

      (unaudited - in thousands of Canadian dollars)

      2022

      2021

      2022

      2021

      Advertising

      205,539

      205,006

      518,313

      478,078

      Subscriber

      132,823

      124,211

      260,358

      247,912

      Merchandising, distribution and other

      23,299

      29,657

      46,863

      53,239


      361,661

      358,874

      825,534

      779,229

      NON-IFRS FINANCIAL MEASURES


      Three months ended

      Six months ended

      (unaudited - in thousands of Canadian dollars)

       February 28,

      February 28,

      Free Cash Flow

      2022

      2021

      2022

      2021

      Cash provided by (used in):





      Operating activities

      92,499

      93,708

      131,202

      157,089

      Investing activities

      (2,061)

      (4,408)

      38,944

      (5,815)


      90,438

      89,300

      170,146

      151,274

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

      (2,021)

      390

      (1,742)

      790

      Free cash flow

      88,417

      89,690

      168,404

      152,064



      (1)

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


      Six months ended

      (unaudited - in thousands of Canadian dollars) 

      February 28,

      August 31,

      Net Debt and Net Debt to Segment Profit

      2022

      2021

      Total debt, net of unamortized financing fees and prepayment options

      1,300,356

      1,349,293

      Lease liabilities

      139,700

      143,546

      Cash and cash equivalents

      (95,450)

      (43,685)

      Net debt (numerator)

      1,344,606

      1,449,154

      Segment profit (denominator) (1)

      497,097

      524,618

      Net debt to segment profit

      2.70

      2.76



      (1) 

      Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the "Quarterly Consolidated Financial Information" section of the Second Quarter 2022 Report to Shareholders.

      SOURCE Corus Entertainment Inc.

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