Email
Password
Remember meForgot password?
    Log in with Twitter
Press Release

TVA Group Reports $11.5 Million in Net Income Attributable to Shareholders for Fourth Quarter Ended December 31, 2011

MONTREAL, CANADA--(Marketwire - Feb. 29, 2012) - TVA Group Inc. (the "Corporation") (TSX:TVA.B) announces that it recorded net income attributable to shareholders in the amount of $11.5 million, or $0.48 per share, for the fourth quarter of 2011, compared with $19.3 million, or $0.81 per share, in the same quarter of 2010.
The Corporation adopted International Financial Reporting Standards ("IFRS") on January 1, 2011. The Corporation's consolidated financial statements for the year ended December 31, 2011 have therefore been prepared in accordance with IFRS and comparative data for 2010 have been restated. For more information, refer to Note 30, "Transition to IFRS," in the consolidated financial statements for the years ended December 31, 2011 and 2010, available on the Corporation's website at http://groupetva.ca and at www.sedar.com.
Fourth quarter operating highlights:
/T/
-- Television sector's operating income(1) decreases $8,729,000 (32.5%) to
$18,097,000, mainly because of:
-- Operating loss of the new "TVA Sports" specialty service launched on
September 12, 2011, which was in the free preview period for most of
the fourth quarter of 2011;
-- 7.0% decline in operating income at TVA Network due to a 2.5%
decrease in its operating revenues, including a 1.7% decrease in
advertising revenues; and
-- Operating loss of the new SUN News specialty service launched in
April 2011.
-- 11.1% increase in the Publishing sector's operating income from
$2,305,000 in the fourth quarter of 2010 to $2,560,000 in the fourth
quarter of 2011.
(1) Refer to definition of operating income on the next page.
/T/
"The Television sector's financial results for the fourth quarter of 2011 were again affected by the operating losses of the three specialty channels launched in 2011: TVA Sports, SUN News and, to a lesser extent, Mlle," commented Pierre Dion, President and Chief Executive Officer of the Corporation. "At the same time, we are pleased to have finalized most of our carriage agreements for those three services with Canada's major broadcasting distribution undertakings, which will reap subscription fees starting in the first quarter of 2012. Also, the growth in our existing specialty services' subscription and advertising revenues during the last quarter confirms the soundness of our investment and diversification strategy for the sector.
"The significant increase in volume at the TVA Stud io division in the fourth quarter of 2011 was responsible for much of the increase in the Publishing sector's operating income. TVA Studio, which specializes in custom publishing, commercial printed productions and premedia services, has become a strong growth driver for the Publishing sector", concluded Pierre Dion.
Cash flows provided by operating activities totalled $2.8 million for the quarter, compared with $10.5 million in the same quarter of 2010. The $7.7 million decline was essentially due to the decrease in the Corporation's operating income.
2011 results
For the fiscal year ended December 31, 2011, the Corporation's consolidated operating income was $50.5 million, compared with $74.9 million in the previous year. The 32.5% decrease was mainly due to the Television sector, and was caused primarily by the operating results of the three new specialty services launched in 2011. Consolidated operating revenues totalled $445.5 million, compared with $448.2 million in 2010, a 0.6% decrease. The Corporation generated net income attributable to shareholders in the amount of $25.6 million, or $1.08 per share, in 2011, compared with $37.2 million, or $1.57 per share, in 2010.
The Corporation
TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated communications company involved in the creation, production, broadcast and distribution of audiovisual products, and in magazine publishing. TVA Group Inc. is the largest broadcaster of French-language entertainment, information and public affairs programming and the largest publisher of French-language magazines in North America, and one of the largest private-sector content producers. The Corporation also operates SUN News, a Canada-wide English-language news and opinion specialty service. The Corporation's Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.
The audited annual consolidated financial statements with notes and the annual Management Discussion and Analysis can be consulted on the Corporation's website at http://groupetva.ca.
Definition
Operating income (loss)
In its analysis of operating results, the Corporation defines operating income (loss) as net income (loss) before amortization of property, plant and equipment and intangible assets, financial expenses, restructuring costs of operations, impairment of assets and other costs, income taxes, share of income of associated corporation and net loss attributable to non-controlling interest. Operating income (loss) as defined above is not a measure of results that is consistent with IFRS. Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. This measure is not intended to represent funds available for debt service, dividend payment, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. Operating income (loss) is used by the Corporation because management believes it is a meaningful measure of performance.
This measure is used by management and the Board of Directors to evaluate the Corporation's consolidated results and the results of its business sectors. Measurements such as operating income (loss) are also commonly used by the investment community to analyze and compare the performance of companies in the industries in which the Corporation is active. The Corporation's definition of operating income (loss) may not be identical to similarly titled measures reported by other companies.
Forward-looking Information Disclaimer
The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the Corporation's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include seasonality, operational risks (including pricing actions by competitors), programming content and production cost risks, credit risk, government regulation risks, governmental assistance risks, changes in economic conditions, fragmentation of the media landscape and labour relations. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause the Corporation's actual results to differ from current expectations, please refer to the Corporation's public filings available at www.sedar.com and http://groupetva.ca including, in particular, the "Risks and Uncertain ties" section of the Corporation's Management's Discussion and Analysis for the year ended December 31, 2011.
The forward-looking statements in this news release reflect the Corporation's expectations as of February 29, 2012, and are subject to change after this date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.
/T/
TVA GROUP INC.
Consolidated Statements of Income
(unaudited)
(in thousands of dollars, except per share amounts)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods Years
ended December 31 ended December 31
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Revenues $131,636 $133,387 $445,495 $448,192
Operating, selling and
administrative expenses 110,979 104,255 394,971 373,315
Amortization of property, plant and
equipment and intangible assets 4,909 4,147 17,437 15,061
Financial expenses 1,570 1,419 5,947 5,621
Restructuring costs of operations,
impairment of assets and other
costs 1,032 792 1,665 9,138
----------------------------------------------------------------------------
Income before income taxes and share
of income of associated corporation 13,146 22,774 25,475 45,057
Income taxes 4,264 4,324 9,613 9,584
After-tax share of income of
associated corporation (289) (406) (574) (1,116)
----------------------------------------------------------------------------
Net income $9,171 $18,856 $16,436 $36,589
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income attributable to:
Shareholders 11,468 19,305 25,603 37,242
Non-controlling interest (2,297) (449) (9,167) (653)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted earnings per share
attributable to shareholders $0.48 $0.81 $1.08 $1.57
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TVA GROUP INC.
Consolidated Statements of Comprehensive (Loss) Income
(unaudited)
(in thousand of dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods Years
ended December 31 ended December 31
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Net income $9,171 $18,856 $16,436 $36,589
Other comprehensive loss:
Defined benefit plans:
Net change in asset limit or in
minimum funding liability (22,725) (3,380) (23,148) (7,098)
Deferred income taxes 6,017 909 6,131 1,909
----------------------------------------------------------------------------
(16,708) (2,471) (17,017) (5,189)
----------------------------------------------------------------------------
Comprehensive (loss) income $(7,537) $16,385 $(581) $31,400
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Comprehensive (loss) income
attributable to:
Shareholders $(5,240) $16,834 $8,586 $32,053
Non-controlling interest (2,297) (449) (9,167) (653)
--==========================================================================
TVA GROUP INC.
Consolidated Statements of Equity
(unaudited)
(in thousand of dollars)
Years ended December 31, 2011 and 2010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity attributable to
shareholders
---------------------------------
Equity
attributable
to non-
Capital Contributed Retained controlling Total
stock surplus earnings interest equity
----------------------------------------------------------------------------
Balance as of
December 31, 2009
as reported under
Canadian GAAP $98,647 $4,145 $134,303 $- $237,095
IFRS adjustments - (4,145) 11,182 - 7,037
----------------------------------------------------------------------------
Balance as of
January 1, 2010 98,647 - 145,485 - 244,132
Net income (net
loss) - - 37,242 (653) 36,589
Related party
transactions - - (2, 000) - (2,000)
Other comprehensive
loss - - (5,189) - (5,189)
Dividends - - (4,754) - (4,754)
Contributions
related to non-
controlling
interest - - - 5,164 5,164
----------------------------------------------------------------------------
Balance as of
December 31, 2010 98,647 - 170,784 4,511 273,942
Net income (net
loss) - - 25,603 (9,167) 16,436
Other comprehensive
loss - - (17,017) - (17,017)
Dividends - - (2,377) - (2,377)
Contributions
related to non-
controlling
interest - - - 10,045 10,045
----------------------------------------------------------------------------
Balance as at
December 31, 2011 $98,647 $- $176,993 $5, 389 $281,029
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TVA GROUP INC.
Consolidated Balance Sheets
(unaudited)
(in thousand of dollars)
December 31, 2011 and 2010, January 1, 2010
----------------------------------------------------------------------------
----------------------------------------------------------------------------
December 31 December 31 January 1
2011 2010 2010
----------------------------------------------------------------------------
Assets
Current assets
Cash $1,756 $5,605 $1,924
Accounts receivable 121,658 133,161 121,593
Programs, broadcast and
distribution rights and
inventories 61,954 60,122 54,774
Prepaid expenses and other current
asset 2,690 2,240 4,754
Asset held for sale 8,370 - -
----------------------------------------------------------------------------
196,428 201,128 183,045
Non-current assets
Broadcast and distribution rights 35,488 34,058 38,950
Investments 12,865 12,527 11,637
Property, plant and equipment 102,007 86,208 79,123
Licences and other intangible
assets 114,539 112,475 110,050
Goodwill 71,981 71,981 71,981
Deferred income taxes 545 694 2,654
----------------------------------------------------------------------------
337,425 317,943 314,395
----------------------------------------------------------------------------
Total assets $533,853 $519,071 $497,440
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and equity
Current liabilities
Bank overdraft $3,980 $3,557 $974
Accounts payable and accrued
liabilities 82,589 81,402 88,369
Broadcast and distribution rights
payable 15,778 25,879 28,611
Provisions 1,533 2,001 1,694
Deferred revenues 6,535 7,122 7,401
Current portion of long-term debt 17,756 - -
Liability held for sale 1,538 - -
----------------------------------------------------------------------------
129,709 119,961 127,049
Non-current liabilities
Long-term debt 74,635 90,338 88,580
Other liabilities 39,696 25,069 25,666
Deferred income taxes 8,784 9,761 12,013
----------------------------------------------------------------------------
123,115 125,168 126,259
Equity
Capital stock 98,647 98,647 98,647
Retained earnings 176,993 170,784 145,485
----------------------------------------------------------------------------
Equity attributable to shareholders 275,640 269,431 244,132
Non-controlling interest 5,389 4,511 -
----------------------------------------------------------------------------
281,029 273,942 244,132
Commitments, guarantees and
contingencies
----------------------------------------------------------------------------
Total liabilities and equity $533,853 $519,071 $497,440
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TVA GROUP INC.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands of dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods Years ended
ended December 31 December 31
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
CASH FLOWS RELATED TO OPERATING
ACTIVITIES
Net income $9,171 $18,856 $16,436 $36,589
Non-cash items
Amortization 4,999 4,228 17,796 15,419
Restructuring costs of
operations, impairment of
assets and other costs 116 538 699 7,696
Share of income of associated
corporation (289) (406) (574) (1,116)
Deferred income taxes 2,566 1,169 5,217 1,595
----------------------------------------------------------------------------
Cash flows from current operations 16,563 24,385 39,574 60,183
Net change in non-cash items (13,799) (13,855) (14,716) (37,636)
----------------------------------------------------------------------------
Cash flows provided by operating
activities 2,764 10,530 24,858 22,547
----------------------------------------------------------------------------
CASH FLOWS RELATED TO INVESTING
ACTIVITIES
Additions to property, plant and
equipment (7,992) (6,524) (30,016) (18,352)
Additions to intangible assets (2,392) (1,782) (5,830) (5,893)
Disposal of an item of property,
plant and equipment - - - 760
Net change in investments - - 236 226
----------------------------------------------------------------------------
Cash flows used in investing
activities (10,384) (8,306) (35,610) (23,259)
----------------------------------------------------------------------------
CASH FLOWS RELATED TO FINANCING
ACTIVITIES
Net change in bank overdraft 445 1,596 423 2,583
Net change in revolving term loan 4,994 (4,574) 1,694 1,361
Financing costs - 39 - 39
Non-controlling interest 2,205 4,919 10,045 5,164
Dividends paid - (1,188) (2,377) (4,754)
----------------------------------------------------------------------------
Cash flows provided by financing
activities 7,644 792 9,785 4,393
----------------------------------------------------------------------------
Net change in cash 24 3,016 (967) 3,681
Cash at beginning of period 4,614 2,589 5,605 1,924
----------------------------------------------------------------------------
Cash at end of period $4,638 $5,605 $4,638 $5,605
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash consists of the following :
Cash $1,756 $5,605 $1,756 $5,605
Cash from operations held for sale 2,882 - 2,882 -
----------------------------------------------------------------------------
$4,638 $5,605 $4,638 $5,605
----------------------------------------------------------------------------
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Interest paid $2,449 $2,423 $5,451 $5,419
Interest received - (56) (20) (194)
Income taxes paid, net amount 318 1,657 974 22,331
Net change in additions to
property, plant and equipment and
intangible assets funded by
accounts payable and accrued
liabilities 1,013 3,571 (546) 2,127
Net change in government
assistance credited to property,
plant and equipment - - $- $434
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TVA GROUP INC.
Segmented information
(unaudited)
(in thousands of dollars)
/T/
The following tables include information on operating results, as well as information on assets:
/T/
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three-month periods Years ended
ended December 31 December 31
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Revenues
Television $114,447 $115,516 $378,854 $377,283
Publishing 18,286 19,260 70,622 75,004
Intersegment items (1,097) (1,389) (3,981) (4,095)
----------------------------------------------------------------------------
131,636 133,387 445,495 448,192
Operating, selling and
administrative expenses
Television 96,350 88,689 338,910 314,006
Publishing 15,726 16,955 60,042 63,404
Intersegment items (1,097) (1,389) (3,981) (4,095)
----------------------------------------------------------------------------
110,979 104,255 394,971 373,315
Operating income
Television 18,097 26,827 39,944 63,277
Publishing 2,560 2,305 10,580 11,600
Intersegment items - - - -
----------------------------------------------------------------------------
$20,657 $29,132 $50,524 $74,877
----------------------------------------------------------------------------
----------------------------------------------------------------------------
/T/
The intersegment items mentioned above represent the elimination of normal course business transactions made between the Corporation's business segments regarding revenues and expenses.
/T/
----------------------------------------------------------------------------
----------------------------------------------------------------------------
December 31, 2011 December 31, 2010
----------------------------------------------------------------------------
Total assets
Television $449,943 $435,331
Publishing 83,910 83,740
----------------------------------------------------------------------------
$533,853 $519,071
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Goodwill
Television $2,539 $2,539
Publishing 69,442 69,442
----------------------------------------------------------------------------
----------------------------------------------------------------------------
/T/