Astral Media reports its 12th consecutive year of growth

MONTREAL, Oct. 29, 2008 (Canada NewsWire via COMTEX) -- AAIBF | Quote | Chart | News | PowerRating -- << Strong increases in EPS, Net Earnings, EBITDA(2), Revenues and Cash Flow for the fourth quarter and Fiscal 2008 The following results include the operations of the assets acquired from Standard Radio, effective October 29, 2007. >>

Astral Media Inc. (TSX: ACM.A/ACM.B) today reported its financial results for the fourth quarter and year ended August 31, 2008, which concluded another year of strong financial performance.

<< FINANCIAL HIGHLIGHTS - 11% increase in basic EPS from continuing operations(1) for the year (11% for the fourth quarter)(1) - 19% increase in net earnings from continuing operations(1) for the year (20% for the fourth quarter)(1) - 40% increase in EBITDA(2) for the year (47% for the fourth quarter)(2) - 35% increase in revenues for the year (43% for the fourth quarter) - 35% increase in cash flow from continuing operations(3) for the year (37% for the fourth quarter)(3) "This marks a 12th consecutive year of profitable growth for Astral Media. This unique track record in our industry speaks directly to our strong and stable management team, disciplined financial and operational practices and to the dedication of more than 2,800 employees", said Ian Greenberg, President and Chief Executive Officer of Astral Media. He added: "I am very proud of delivering such strong results in the context of a very busy year at Astral Media, which included the integration of the Standard Radio acquisition, the rollout of the Toronto Street Furniture program and the launches of Playhouse Disney and TELETOON Retro". Consolidated net earnings from continuing operations for Fiscal 2008 increased by 19%, rising to $150.5 million(1) ($2.67 basic EPS, $2.63 diluted EPS)(1) from $126.6 million(1) ($2.40 basic EPS, $2.35 diluted EPS)(1) last year. Consolidated net earnings from continuing operations for the fourth quarter of Fiscal 2008 increased by 20% to $40.8 million(1) ($0.72 basic EPS, $0.72 diluted EPS)(1), from $34.0 million(1) ($0.65 basic EPS, $0.63 diluted EPS)(1) last year. Consolidated revenues totalled $865.4 million for Fiscal 2008, an increase of 35% over the $640.5 million recorded in Fiscal 2007. Consolidated revenues were $229.9 million for the fourth quarter of Fiscal 2008, up 43% from the $160.6 million for the same quarter last year. EBITDA(2) for the year increased by 40% to $289.6 million from $206.7 million for the same period last year. EBITDA(2) was up 47% to $81.1 million in the fourth quarter of Fiscal 2008 compared to $55.1 million for the same quarter last year. Cash flow from continuing operations(3) rose 35% year-over-year totalling $205.3 million for the year compared to $152.0 million for Fiscal 2007. Cash flow from continuing operations(3) rose by 37% to $60.1 million in the fourth quarter, compared to $43.9 million for the same quarter last year. OPERATIONAL HIGHLIGHTS FOR FISCAL 2008 Television - Revenue growth of 5% to $497.0 million; - Advertising revenue growth of 12% to $108.2 million; - EBITDA(2) growth of 5% to $179.5 million; - Launch of TELETOON Retro in English; - Launch of Playhouse Disney; - Announcement of the of launch of HBO Canada, a The Movie Network multiplex channel (after year-end); - Launch of TÉLÉTOON Rétro in French (after year-end); - Rebranding and repositioning of MusiquePlus (after year-end). Radio - Revenue growth of 156% to $296.3 million; - EBITDA(2) growth of 171% to $111.1 million; - EBITDA(2) margin rose from 35.5% to 37.5%; - Launch of a radio station in Regina; - Granting by the CRTC of a radio licence in the Ottawa-Gatineau market; - Launch of the first Virgin Radio station in North America, Virgin Radio 999 in Toronto. Outdoor Advertising - Revenue growth of 45% to 72.1 million; - EBITDA(2) growth of 42% to $23.6 million; - Rollout of TSF contract. Astral Media is a leading Canadian media company, active in specialty and pay television, radio, outdoor advertising and iMedia. Astral Media's solid and dynamic presence in the country's major markets rests on its commitment to offer a unique combination of high-quality, targeted media for all its audiences. The audited consolidated financial statements with related notes and Management's Discussion and Analysis are available on the Company's website: www.astralmedia.com. There will be a conference call with analysts and media at 2:00 p.m. on Wednesday, October 29, 2008. To access the conference call dial 1-800-732-0232. The conference call will also be broadcast live and archived for a three-month period on the Astral Media website at www.astralmedia.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. We disclaim any intention or obligation to update or revise any forward-looking statements. --------------- 1. Excluding the impact of the future income tax recovery resulting from future income tax rate changes in Fiscal 2008 and 2007. See Appendix 1. 2. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. See Appendix 1. 3. See Appendix 1. ASTRAL MEDIA INC. Consolidated Statements of Earnings for the periods ended August 31, 2008 and 2007 (in thousands of Canadian dollars except for per-share data) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 3 months 12 months ----------------------- ----------------------- 2008 2007 2008 2007 ----------------------------------------------- (unaudited) Revenues $ 229,872 $ 160,584 $ 865,370 $ 640,518 Operating expenses 148,818 105,483 575,792 433,824 ----------------------------------------------- EBITDA(1) 81,054 55,101 289,578 206,694 Depreciation 6,068 4,308 21,617 15,518 Amortization of intangible assets 318 115 1,195 434 Interest expense (income), net 11,101 (1,132) 37,465 (4,170) ----------------------------------------------- Earnings from continuing operations before income taxes 63,567 51,810 229,301 194,912 ----------------------------------------------- Income tax provision before undernoted 22,761 17,794 78,839 68,288 Future income tax recovery resulting from income tax rate changes - (4,069) (28,259) (4,069) ----------------------------------------------- 22,761 13,725 50,580 64,219 ----------------------------------------------- Net earnings from continuing operations 40,806 38,085 178,721 130,693 Net earnings (net loss) from discontinued operations (1,868) (35) (1,711) 501 ----------------------------------------------- Net earnings $ 39,938 $ 38,050 $ 177,010 $ 131,194 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per share from continuing operations - Basic $ 0.72 $ 0.72 $ 3.18 $ 2.48 ----------------------------------------------- - Diluted $ 0.72 $ 0.71 $ 3.12 $ 2.42 Earnings per share - Basic $ 0.69 $ 0.72 $ 3.15 $ 2.49 ----------------------------------------------- - Diluted $ 0.68 $ 0.71 $ 3.09 $ 2.43 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding - basic (in thousands) 56,362 52,713 56,257 52,763 ------------------------------------------------------------------------- ------------------------------------------------------------------------- --------------- (1) See Appendix 1 ASTRAL MEDIA INC. Consolidated Statements of Cash Flows for the periods ended August 31, 2008 and 2007 (in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 3 months 12 months ----------------------- ----------------------- 2008 2007 2008 2007 ----------------------------------------------- (unaudited) Cash and cash equivalents provided by (used for): OPERATING ACTIVITIES Net earnings from continuing operations $ 40,806 $ 38,085 $ 178,721 $ 130,693 Non-cash charges (credits): Depreciation and amortization 6,386 4,423 22,812 15,952 Stock-based compensation 1,415 1,571 6,270 6,063 Future income tax expense before undernoted 10,533 3,884 22,715 3,360 Future income tax recovery resulting from income tax rate changes - (4,069) (28,259) (4,069) Imputed interest on other non-current liabilities 743 - 2,507 - Amortization of deferred financing costs 172 - 576 - ----------------------------------------------- Cash flow from continuing operations(1) 60,055 43,894 205,342 151,999 Net change in non-cash operating items (4,263) (7,297) (56,352) (21,596) ----------------------------------------------- Cash flow from continuing operating activities 55,792 36,597 148,990 130,403 ----------------------------------------------- DISCONTINUED OPERATIONS (237) (487) (591) (621) ----------------------------------------------- INVESTING ACTIVITIES Short-term investments - purchased (9,962) - (9,962) (51,128) Short-term investments - cashed - 19,913 51,128 44,774 Additions to property, plant and equipment (18,036) (7,297) (35,995) (17,296) Business acquisition, net of cash acquired (3,040) (32,992) (907,156) (79,786) Business pre-operating costs (733) - (2,685) - Outdoor advertising licence fees - (28,898) - (28,898) Deferred business acquisition costs - (2,392) - (2,392) ----------------------------------------------- (31,771) (51,666) (904,670) (134,726) ----------------------------------------------- FINANCING ACTIVITIES Deferred financing costs - (667) (2,835) (667) Increase in long-term debt - - 825,000 - Repayment of long-term debt (10,000) - (10,000) - Shares repurchased (28,502) (7,499) (55,416) (24,054) Stock options exercised 226 797 3,182 3,088 Dividends (14,144) (10,553) (28,541) (21,098) ----------------------------------------------- (52,420) (17,922) 731,390 (42,731) ----------------------------------------------- Net change in cash and cash equivalents (28,636) (33,478) (24,881) (47,675) Cash and cash equivalents - beginning of period 24,992 54,715 21,237 68,912 ----------------------------------------------- Cash and cash equivalents (bank overdraft) - end of period $ (3,644) $ 21,237 $ (3,644) $ 21,237 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) See Appendix 1 ASTRAL MEDIA INC. Consolidated Balance Sheets as at August 31 (in thousands of Canadian dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2008 2007 --------------------------- ASSETS Current Cash and cash equivalents $ - $ 21,237 Short-term investments 9,962 51,128 Accounts receivable 155,841 96,995 Income taxes receivable 919 - Program and film rights 79,305 72,791 Prepaid expenses and other current assets 28,954 18,331 --------------------------- 274,981 260,482 Program and film rights 69,502 58,854 Other non-current assets 47,751 49,088 Property, plant and equipment 133,484 83,367 Broadcast licences 1,807,496 950,698 Goodwill 356,945 116,016 Future income tax assets 26,448 8,549 --------------------------- $ 2,716,607 $ 1,527,054 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Current Bank overdraft $ 3,644 $ - Accounts payable and accrued liabilities 129,906 83,160 Income taxes payable - 19,501 Program and film rights payable 64,060 70,325 Future income tax liabilities 5,951 3,246 --------------------------- 203,561 176,232 --------------------------- Long-term debt 812,074 - --------------------------- Future income tax liabilities 254,912 267,240 --------------------------- Other non-current liabilities 78,445 26,673 --------------------------- Derivative financial instruments 18,374 - --------------------------- Liabilities of discontinued operations 2,748 2,183 --------------------------- SHAREHOLDERS' EQUITY Capital stock 748,121 561,589 --------------------------- Contributed surplus 14,409 11,645 --------------------------- Retained earnings 597,188 481,492 Accumulated other comprehensive income (13,225) - --------------------------- 583,963 481,492 --------------------------- 1,346,493 1,054,726 --------------------------- $ 2,716,607 $ 1,527,054 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ASTRAL MEDIA INC. Business Segments for the periods ended August 31 (in thousands) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 3 months 12 months ----------------------- ----------------------- 2008 2007 2008 2007 ----------------------------------------------- (unaudited) REVENUES Television $ 119,786 $ 116,860 $ 497,007 $ 475,042 Radio 88,720 28,875 296,302 115,701 Outdoor Advertising 21,366 14,849 72,061 49,775 ----------------------------------------------- $ 229,872 $ 160,584 $ 865,370 $ 640,518 ------------------------------------------------------------------------- EBITDA(1) Television $ 41,815 $ 42,900 $ 179,513 $ 170,903 Radio 37,191 11,435 111,140 41,017 Outdoor Advertising 8,370 6,472 23,645 16,703 Corporate Costs (6,322) (5,706) (24,720) (21,929) ----------------------------------------------- $ 81,054 $ 55,101 $ 289,578 $ 206,694 ------------------------------------------------------------------------- --------------- (1) See Appendix 1 ASTRAL MEDIA INC. Appendix 1 Supplementary Measures for the periods ended August 31 (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- In addition to discussing earnings measures in accordance with Canadian generally accepted accounting principles ("GAAP"), this Press Release provides the following supplementary measures which are also factors used by management in monitoring and evaluating the performance of the Company and its business segments: EBITDA (earnings before interest, taxes, depreciation and amortization) is provided to assist investors in determining the ability of the Company to generate cash from continuing operating activities and to cover financial charges. It 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 GAAP measures disclosed in the consolidated statements of earnings for the periods ended August 31, 2008 and 2007 to EBITDA: 3 months 12 months ----------------------- ----------------------- (in thousands of $) 2008 2007 2008 2007 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings from continuing operations before income taxes 63,567 51,810 229,301 194,912 Depreciation and amortization 6,386 4,423 22,812 15,952 Interest expense (income), net 11,101 (1,132) 37,465 (4,170) ------------------------------------------------------------------------- EBITDA 81,054 55,101 289,578 206,694 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings and earnings per share from continuing operations before the impact of future income tax rate changes. These measures provide an indication of the Company's ability to generate earnings and cash flows from its ongoing operations, by excluding the impact of the non-cash future income tax recoveries or expenses resulting from income tax rate changes over which the Company has no control. The following tables reconcile GAAP measures disclosed in the consolidated statements of earnings for the periods ended August 31, 2008 and 2007 to net earnings and earnings per share, before the impact of future income tax rate changes. 3 months 12 months ----------------------- ----------------------- (in thousands of $) 2008 2007 2008 2007 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings from continuing operations 40,806 38,085 178,721 130,693 Future income tax recovery resulting from income tax rate changes - (4,069) (28,259) (4,069) ------------------------------------------------------------------------- Net earnings from continuing operations before the impact of future income tax rate changes 40,806 34,016 150,462 126,624 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 3 months 12 months ----------------------- ----------------------- (in dollars) 2008 2007 2008 2007 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic earnings per share from continuing operations 0.72 0.72 3.18 2.48 Earnings per share - impact of future income tax rate changes - (0.07) (0.51) (0.08) ------------------------------------------------------------------------- Basic earnings per share from continuing operations before the impact of future income tax rate changes 0.72 0.65 2.67 2.40 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 3 months 12 months ----------------------- ----------------------- (in dollars) 2008 2007 2008 2007 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Diluted earnings per share from continuing operations 0.72 0.71 3.12 2.42 Earnings per share - impact of future income tax rate changes - (0.08) (0.49) (0.07) ------------------------------------------------------------------------- Diluted earnings per share from continuing operations before the impact of future income tax rate changes 0.72 0.63 2.63 2.35 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flow from continuing operations is defined as cash flow from continuing 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 items. The following table reconciles GAAP measures disclosed in the consolidated statements of cash flows for the periods ended August 31, 2008 and 2007 to cash flow from continuing operations: 3 months 12 months ----------------------- ----------------------- (in thousands of $) 2008 2007 2008 2007 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flow from continuing operating activities 55,792 36,597 148,990 130,403 Net change in non-cash operating items 4,263 7,297 56,352 21,596 ------------------------------------------------------------------------- Cash flow from continuing operations 60,055 43,894 205,342 151,999 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The above supplementary measures do not have a standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies. >>

SOURCE: ASTRAL MEDIA INC.

SOURCE: NEWS - MEDIA

Media: Alain Bergeron, Vice-President, Brand Management and Corporate Communications, Astral Media Inc., 514 939-5000; Analysts: Robert Fortier, Vice-President Finance and Corporate Controller, Astral Media Inc., 514 939-5000

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