Alliance Atlantis Announces Third Quarter Financial Results.Business Editors TORONTO--(BUSINESS WIRE)--Feb. 26, 2001 Alliance Atlantis Alliance Atlantis Communications Inc. (formerly traded as TSX:AAC) is a Toronto-based media company, which now operates primarily as a specialty service operator in Canada. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AACB AACB Australasian Association of Clinical Biochemists AACB Alliance Atlantis Communications Inc. AACB Aeronautics and Astronautics Coordinating Board AACB Aeronautics & Astronautics Coordinating Board AACB Ann Arbor Concert Band (Ann Arbor, MI) ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AAC (Advanced Audio Coding) An audio compression technology that is part of the MPEG-2 and MPEG-4 standards. AAC, especially MPEG-4 AAC, provides greater compression and better sound quality than MP3, which also came out of the MPEG standard. .A.)(TSE:AAC.B.) Solid Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Results - Revenue up 18% - Gross Profit grows 30% - EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increases 29% - Net Earnings up 10% ALLIANCE ATLANTIS COMMUNICATIONS INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . today announced strong financial and operating results for the three months and nine months ended December December: see month. 31, 2000. Three Month Results For the three months ended December 31, 2000, gross profit increased 30% to $67.0 million on increased revenue of $247.3 million - up 18% as compared to the prior year's period. EBITDA for the period increased 29% to $43.1 million. Net earnings for the period were $15.8 million or $0.50 per basic share compared to $0.46 per basic share last year. Fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the period of $0.49 increased 9% over the $0.45 per share recorded last year. Broadcast Group Revenue for the Broadcast Group increased by 27% to $32.5 million in the third quarter of this year. Paid subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. revenue increased 22% to $18.0 million compared to the same period in the prior year, while advertising revenue increased by 34% to $14.5 million. Revenue contribution during the quarter from the Broadcast Group was buoyed by the launch of Series+ and Historia in February February: see month. 2000 and Food Network Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of in October October: see month. 2000. These channels were not in operation in the prior year's quarter. Gross profit grew to $18.1 million, an increase of 13% over the same period in the prior year. Gross margin was 56% compared to 63% in the prior year's third quarter as a result of the current Development Channels - Series+ and Historia - continuing to operate at lower margins as they build subscriber penetration The successful unauthorized breach of a security perimeter. See penetration test. , ratings growth and gain advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase recognition. The Broadcast Group generated $12.2 million of EBITDA this quarter from its Operating Channels - Life Network, Showcase A showcase, or vitrine, is a glassed-in cabinet or case for displaying delicate or valuable articles such as objects d'art or merchandise in a shop, museum, or house. , HGTV HGTV Home and Garden Television Canada, History Television and Food Network Canada - an increase of 21% over the comparable period in the prior year. After accounting for the current Development Channels - Series+ and Historia - EBITDA was $10.8 million versus $10.1 million one year ago. During the quarter, the parent company of Headline HEADLINE Hybrid Electronic Access and Delivery in the Library Networked Environment Sports - The Score completed its previously announced reverse takeover A reverse takeover occurs when a publicly-traded smaller company acquires ownership of a larger company. It typically requires reorganization of capitalization of the acquiring company. transaction and became a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. named Headline Media Group Inc., listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. - symbol HMG hMG menotropins (human menopausal gonadotropin). HMG abbr. human menopausal gonadotropin . This transaction will grow the network by enhancing its ability to compete for broadcast rights and other sports properties. The Score may now devote up to 15% of its programming schedule to live sports, allowing for up to 25 hours of live programming per week. In June June: see month. 2000, The Score acquired the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. broadcast rights to most regular season Major League Baseball "MLB" and "Major Leagues" redirect here. For other uses, see MLB (disambiguation) and Major Leagues (disambiguation). Major League Baseball (MLB) is the highest level of play in North American professional baseball. games, as well as the league championship series and World Series. In November November: see month. 2000, The Score acquired exclusive broadcast rights to two highly-rated WWF See Windows Workflow Foundation. properties, WWF Smackdown! and WWF Metal. At the same time, The Score acquired exclusive Canadian broadcast rights to the XFL XFL Shawinigan, Quebec, Canada - Shawinigan / via Rail Service (Airport Code) XFL X-Treme Football League XFL Exit Flight Level XFL X Football League , a new professional football league that launched on February 3, 2001. In November 2000 the CRTC CRTC Canadian Radio-Television & Telecommunications Commission CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column awarded the parent company of Headline Sports - The Score a "Category 1" licence for Pride Vision and recently approved the transfer of this licence to Headline Media Group Inc. Pride Vision is a must-carry In cable television, governments apply a must-carry regulation stating that locally-licensed television stations must be carried on a cable provider's system. United States digital specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. television channel and is expected to launch in Fall 2001. Currently, Alliance Atlantis owns approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40% of Headline Media Group Inc. Subsequent to the end of the quarter, the Company announced an agreement to acquire Salter salt·er n. 1. One that manufactures or sells salt. 2. One that treats meat, fish, or other foods with salt. Noun 1. Street Films - Canada's foremost comedy producer and owner of the rights to the Independent Film Channel Canada, a new "Category 1" digital specialty television channel as well as licences for 20 new "Category 2" digital networks. Pending approval from Salter Street shareholders, expected around mid-April Noun 1. mid-April - the middle part of April period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" Apr, April - the month following March and preceding May 2001, and change in control approval from the CRTC, Alliance Atlantis will own direct interests in two "Category 1" licences - Health Network Canada and The Independent Film Channel Canada. Alliance Atlantis will also have interests in over 50 "Category 2" licences such as BBC Canada BBC Canada is a Canadian English language category 2 digital cable specialty channel. It presents programming from the BBC. Along with BBC Kids, it is a joint venture between Alliance Atlantis and BBC Worldwide. and BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. Kids, National Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. Canada and National Geographic Adventure National Geographic Adventure, formerly known as Adventure One (A1) but now commonly known as Nat Geo Adventure, is a subscription TV channel part of National Geographic Channels International. One, Do It Yourself (D.I.Y.Canada), Fine Living and a trio of movie networks - Romance romance [O.Fr.,=something written in the popular language, i.e., a Romance language]. The roman of the Middle Ages was a form of chivalric and romantic literature widely diffused throughout Europe from the 11th cent. , Action and Nostalgia Nostalgia Combray village of narrator and family. [Fr. Lit.: Remembrance of Things Past] Give My Regards to Broadway singer sends well-wishes to home town. [Am. Pop. . A significant amount of programming for the Company's current and future Development Channels as well as its established Operating Channels will be provided by Alliance Atlantis' 16,000 hour motion picture and television library. Motion Picture Group Revenue for the Motion Picture Group was $64.9 million in the third quarter compared to $54.8 million for the same period last year. This increase of 18% or $10.1 million is mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to growth at Momentum Pictures in the U.K. driven by strong DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. sales, the international release of Second Skin and strong Canadian video and DVD releases including titles such as Scary scar·y adj. scar·i·er, scar·i·est 1. Causing fright or alarm. 2. Easily scared; very timid. scar Movie, The Cell, and Frequency. EBITDA for the Motion Picture Group was $8.3 million compared to $8.2 million for the same period last year, due primarily to increased operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. resulting from the ramp-up of Momentum Pictures. During the quarter Alliance Atlantis and Artisan Entertainment renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. their Canadian output agreement for an additional three years. The agreement also included the Canadian rights to Artisan's vast library for another five years. Also during the quarter Alliance Atlantis received three Golden Globe nominations for its acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. motion picture Sunshine including one for Best Picture. Subsequent to the end of the quarter Maelstrom Maelstrom, whirlpool, Norway: see Moskenstraumen. received five Canadian Genie awards including Best Film and a prize at the Berlin Film Festival. Earlier this month, motion pictures distributed by Alliance Atlantis in Canada received a total of 17 Academy Award nominations. Television Group The Television Group's revenue in the third quarter was $144.5 million compared to $122.6 million in the prior year's period despite deliveries of fewer television hours in this year's quarter compared to last. During the quarter, the Television Group delivered 86 hours of television series, television movies and mini-series mini-series n → serie f de pocos capítulos; miniserie f mini-series n → téléfilm m en plusieurs parties and children's programming compared to 107 hours in the prior year's period. Additionally the Television Group delivered 16 hours of fact-based programming compared to none in the same period last year. Gross profit for the Television Group in the third quarter was $31.6 million compared to $21.9 million last year representing a gross margin of 22% compared to 18% in the same period last year. Higher margin shows delivered this quarter include The Associates, In a Heartbeat immediately. See also: heartbeat , 2Gether, Starhunter Starhunter is a Canadian science fiction television series that aired for two seasons. The series was produced in Canada with co-producers in the United Kingdom and France. and the U.S. ratings success CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International : Crime Scene Investigation Crime scene investigation may refer to:
The Television Group contributed $26.7 million to consolidated EBITDA compared to $18.3 million in the prior year as a result of higher gross margins. CSI: Crime Scene Investigation has been, on average, the fourth highest rated series on U.S. television after Survivor on CBS (Cell Broadcast Service) See cell broadcast. and E.R. and Friends on NBC NBC in full National Broadcasting Co. Major U.S. commercial broadcasting company. It was formed in 1926 by RCA Corp., General Electric Co. (GE), and Westinghouse and was the first U.S. company to operate a broadcast network. . CSI: Crime Scene Investigation was also the only new show to earn a Golden Globe nomination NOMINATION, This word has several significations. 1. An appointment; as, I nominate A B, executor of this my last will. 2. A proposition; the word nominate is used in this sense in the constitution of the United States, art. 2, s. for best series. Subsequent to the end of the quarter the Company completed the acquisition of U.K.-based Cafe Productions, a leading European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. producer of factual programming. This acquisition further strengthens the Company's AAC Fact programming initiative and supports its previously stated intent to grow its production and distribution activities in this genre genre (zhän`rə), in art-history terminology, a type of painting dealing with unidealized scenes and subjects of everyday life. Although practiced in ancient art, as shown by Pompeiian frescoes, and in the Middle Ages, genre was not recognized worldwide. Other Other revenue was $5.4 million for the current quarter compared to $6.7 million last year. Gross profit contribution increased - despite the revenue decline - to $5.3 million compared to $2.9 million in the prior year, as a result of significantly higher margins resulting from the Company's structured film and entertainment financing joint venture interest. Subsequent to the end of the quarter, the Company announced that it had closed its previously announced five-year, $500 million, revolving senior credit facility led by TD Securities as administration agent, along with co-lead arranger RBC Dominion Securities
2. By statute 24 Geo. II. c. 44, in England, and by similar statutes in some of the United States, justices of the peace, upon being notified of an and restates the Company's current senior bank facility and will also be available to fund acquisitions, internal growth and for general corporate purposes. The facility was successfully syndicated to a group of eleven leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and international banks. Also subsequent to the end of the quarter, the Company completed the sale of an additional U.S. $95 million aggregate principal amount of senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes due December 15, 2009. The additional notes are the same series as the U.S. $55 million notes issued in June, 2000 and the U.S. $150 million notes issued in November, 1999, bringing the total issue size to U.S. $300 million. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the additional issue were fully applied to reduce shorter-term indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. . Nine Month Results For the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. nine month period ended December 31, 2000, gross profit increased by 19% to $157.9 million. EBITDA increased by 19% to $93.3 million. These improved operating results were achieved on a smaller revenue stream that included continued strong performance and contribution from the Broadcast Group offset by a decline in revenue contribution from the Television and Motion Picture groups due entirely to timing differences in deliveries of the current year's production slate compared to the prior year's period. Higher interest and amortization charges resulted in net earnings for the current year's nine month period of $26.8 million compared to $28.6 million one year ago or $0.85 basic earnings per share compared to $1.06 per share last year. Fully diluted earnings per share for the period were $0.84 compared to $0.99 last year. During the first nine months of the current fiscal year, the Motion Picture Group delivered three motion pictures compared to five in the prior year's period. The Television Group delivered 169 hours of dramatic and children's programming in the first nine months of the current year - representing 70% of the current year's production slate - compared to 222 hours in the same period last year. In addition, the Company delivered 37 hours of fact-based documentary documentary: see motion pictures. documentary Fact-based film that depicts actual events and persons. Documentaries can deal with scientific or educational topics, can be a form of journalism or social commentary, or can be a conduit for propaganda programming or 48% of the AAC Fact production slate. This level of television and motion picture deliveries was in line with the Company's expectations. The Company remains on track to deliver approximately 241 hours of television series, television movies and mini-series and children's programming and approximately 76 hours of fact based programming by the end of the fiscal year. ALLIANCE ATLANTIS COMMUNICATIONS INC. is a leading broadcaster, creator Creator may refer to:
For other places with the same name, see Edmonton (disambiguation). Edmonton is an area in the east of the London Borough of Enfield, distinct from Enfield Town. , Sydney Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. , and Shannon Shannon, principal river of the Republic of Ireland and longest (c.240 mi/390 km) in the British Isles. It rises near Cuilcagh Mt., NW Co. Cavan, and flows S through the Central Plain into Co. Limerick, where it turns west in a broad estuary (c. . The Company's shares trade on The Toronto Stock Exchange - trading symbols Trading symbol See: Ticker symbol AAC.A, AAC.B and on NASDAQ - trading symbol AACB. The Company's website is www.allianceatlantis.com. This press release and attachments contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Canadian securities regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities and the U.S. Securities and Exchange Commission. Please refer to the attached Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and Supplemental Information. The accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. unaudited consolidated financial statements and supplemental information of Alliance Atlantis Communications Inc. are the responsibility of Management and have been approved by the Board of Directors. The unaudited consolidated financial statements and supplemental information have been prepared by Management in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The unaudited consolidated financial statements and supplemental information include some figures and assumptions based on Management's best estimates which have been derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. with careful judgement. In fulfilling its responsibilities, Management of the Company has developed and maintains a system of internal accounting controls. These controls ensure that the financial records are reliable for preparing the financial statements. The Board of Directors of the Company carries out its responsibility for the financial statements through its Audit Committee. The Audit Committee reviews the Company's unaudited consolidated financial statements and recommends their approval by the Board of Directors.
February 26, 2001
W. JUDSON MARTIN
Executive Vice President
and Chief Financial Officer
Alliance Atlantis Communications Inc.
Consolidated Balance Sheets
(in million of Canadian dollars - except per share amounts)
----------------------------------------
December 31, March 31, December 31,
2000 2000 1999
----------------------------------------
(unaudited) (audited) (unaudited)
Assets
Cash and cash equivalents 0.8 1.0 4.1
Accounts receivable 607.5 476.8 489.3
Loans receivable 34.9 27.2 27.5
Income taxes 7.2 7.3 8.7
Investment in film and
television programs (note 1) 892.2 591.6 659.1
Development costs 45.8 30.7 28.0
Property and equipment 61.1 53.7 46.2
Broadcasting licences 75.0 76.4 76.9
Goodwill (note 8) 88.8 80.0 79.6
Other assets 96.4 65.4 54.2
----------------------------------------
1,909.7 1,410.1 1,473.6
----------------------------------------
Liabilities
Senior revolving credit(note 2) 320.8 187.7 206.7
Accounts payable and accrued
liabilities 370.8 260.5 260.8
Deferred revenue 239.6 98.7 179.4
Term loans (note 3) 55.3 55.9 35.2
Senior subordinated notes
(note 4) 307.5 217.5 216.0
Convertible debentures 8.8 8.8 8.8
Minority interest 12.2 9.5 10.3
----------------------------------------
1,315.0 838.6 917.2
----------------------------------------
Shareholders' Equity
Capital stock (note 5) 525.3 521.2 520.2
Retained earnings 76.9 50.1 41.7
Cumulative translation
adjustments (7.5) 0.2 (5.5)
----------------------------------------
594.7 571.5 556.4
----------------------------------------
1,909.7 1,410.1 1,473.6
----------------------------------------
Alliance Atlantis Communications Inc.
Consolidated Statements of Earnings
For the periods ended December 31, 2000 and December 31, 1999
(unaudited)
--------------------------------------------------------------------
(in millions of Canadian dollars)
----------------------------------------
Three months ended Nine months ended
December 31, December 31,
----------------------------------------
2000 1999 2000 1999
----------------------------------------
Revenue 247.3 209.6 546.9 563.2
Direct operating expenses 180.3 157.9 389.0 430.7
----------------------------------------
Gross Profit 67.0 51.7 157.9 132.5
Operating expenses 23.9 18.3 64.6 54.0
----------------------------------------
Earnings Before Interest,
Taxes and Amortization 43.1 33.4 93.3 78.5
Amortization 8.4 2.5 22.4 13.1
Interest (note 6) 12.5 9.1 35.6 22.4
Minority interest 0.2 - 0.3 -
Investment gain 0.6 - 3.9 2.5
----------------------------------------
Earnings Before Income
Taxes 22.6 21.8 38.9 45.5
Provision for income taxes 6.8 7.5 12.1 14.8
----------------------------------------
Net Earnings for the Period 15.8 14.3 26.8 30.7
Dividends on preferred
shares - - - (0.5)
Accretion of conversion
feature of preferred shares - - - (1.6)
----------------------------------------
Net Earnings Available to
Common Shareholders 15.8 14.3 26.8 28.6
----------------------------------------
Earnings Per Share (note 7)
Basic 0.50 0.46 0.85 1.06
Fully Diluted 0.49 0.45 0.84 0.99
----------------------------------------
Weighted Average Common
Shares Outstanding
(in millions)
Basic 31.8 30.9 31.6 27.0
Fully Diluted 34.6 32.9 32.4 30.6
Alliance Atlantis Communications Inc.
Consolidated Statements of Retained Earnings
For the periods ended December 31, 2000 and December 31, 1999
(unaudited)
--------------------------------------------------------------------
(in millions of Canadian dollars)
----------------------------------------
Three months ended Nine months ended
December 31, December 31,
----------------------------------------
2000 1999 2000 1999
----------------------------------------
Retained Earnings -
Beginning of Period 61.1 27.4 50.1 13.1
Net earnings for the
period 15.8 14.3 26.8 30.7
Dividends on preferred
shares - - - (0.5)
Accretion of conversion
feature of preferred shares - - - (1.6)
Retained Earnings - End of
----------------------------------------
Period 76.9 41.7 76.9 41.7
----------------------------------------
Alliance Atlantis Communications Inc.
Consolidated Statements of Cash Flows
December 31, 2000
(unaudited)
--------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
-------------------------------------
3 months ended 9 months ended
December 31, December 31,
------------------ ------------------
2000 1999 2000 1999
------------------ ------------------
Cash and Cash Equivalents Provided
By (used in)
Operating Activities
Net earnings for the period 15.8 14.3 26.8 30.7
Items not affecting cash
Amortization of film and
television programs 175.0 190.4 375.6 453.8
Amortization of development
costs 3.1 0.4 7.3 3.1
Amortization of property and
equipment 2.8 1.1 8.3 6.2
Amortization of broadcasting
licences 0.4 0.4 1.4 1.4
Amortization of goodwill and
other assets 2.1 0.6 5.4 2.4
Investment gain (0.6) - (3.9) (2.5)
Minority interests 0.2 - 0.3 -
Net changes in other non-cash
balances related to operations (1.0) (12.5) 35.9 (27.0)
----------------------------------
197.8 194.7 457.1 468.1
----------------------------------
Investing Activities
Loans receivable (6.6) 5.5 (7.7) 12.4
Film and television programs (263.5) (217.8) (602.3)(551.5)
Development costs (8.5) (2.3) (22.1) (7.6)
Property and equipment (4.2) (4.7) (15.3) (13.9)
Business acquisitions (Note 8) - - (7.0) (0.6)
Minority interest in acquired
businesses 3.1 1.4 3.1 1.4
Long term investments (13.1) (18.4) (23.3) (23.3)
Proceeds from sale of investments - - 8.3 11.2
----------------------------------
(292.8) (236.3) (666.3)(571.9)
----------------------------------
Financing Activities
Senior revolving credit 87.0 (185.4) 132.3 (230.6)
Term loans 7.0 (11.7) (7.0) (13.2)
Issue of senior subordinated notes - 216.0 80.8 216.0
Issue of Common Shares 0.4 - 2.5 131.4
Redemption of Preferred Shares - - - (51.9)
Dividends paid on Preferred Shares - - - (0.5)
----------------------------------
94.4 18.9 208.6 51.2
----------------------------------
Change in Cash and Cash Equivalents (0.6) (22.7) (0.6) (52.6)
Cash and Cash Equivalents - Beginning
of Period 1.4 26.9 1.0 56.9
Cash in Acquired Businesses - - 0.4 -
Effect of Exchange Rates on Cash - (0.1) - (0.2)
----------------------------------
Cash and Cash Equivalents- End of
Period 0.8 4.1 0.8 4.1
----------------------------------
----------------------------------
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
--------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
The unaudited consolidated financial statements and supplemental
information should be read in conjunction with the Company's audited
consolidated financial statements contained in our 2000 Annual Report.
Alliance Atlantis Communications Inc. (the "Company" or the
"Corporation") is a leading international broadcaster, creator and
distributor of filmed entertainment content with significant interests
in eight specialty television networks. The Company's principal
business activities are carried out through three operating groups:
Broadcast, Motion Picture and Television.
1. Investment in film and television programs
--------------------------------------------
Broadcast Motion Picture Television Total
--------------------------------------------
2000
Produced - 33.0 205.6 238.6
Acquired - 251.8 63.2 315.0
Libraries - - 43.4 43.4
Programs in progress - 42.7 188.3 231.0
Broadcast rights 64.2 - - 64.2
-----------------------------------------
64.2 327.5 500.5 892.2
-----------------------------------------
--------------------------------------------
Broadcast Motion Picture Television Total
--------------------------------------------
1999
Produced - 34.6 151.6 186.2
Acquired - 162.7 90.0 252.7
Libraries - - 33.4 33.4
Programs in progress - 19.4 128.5 147.9
Broadcast rights 38.9 - - 38.9
-----------------------------------------
38.9 216.7 403.5 659.1
-----------------------------------------
-----------------------------------------
2. Senior revolving credit
Substantially all of the assets of the Company and certain of its
subsidiaries have been pledged as security for borrowing under the
Senior revolving credit facility.
As at December 31, 2000, after giving effect to financing
commitments in place relating to the Company's amended and restated
Senior revolving credit facility, the Company had unused credit
facilities aggregating $178.9 (1999- $203.2). See note 10 - Subsequent
events.
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
--------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
Repayment of the Senior revolving credit is expected as follows:
2001 -
2002 -
2003 -
2004 -
2005 -
Due subsequent 320.8
--------
320.8
--------
--------
3. Term loans
--------------
2000 1999
--------------
Non-recourse term loans under revolving facilities,
bearing interest at rates between the commercial
prime rate plus 0.5% to plus 1.5%
27.4 17.0
Mortgages payable, bearing interest at commercial prime
rates plus 3% and 9.99%, and repayable over terms
extending to October 15, 2005
2.8 3.1
Industry and other term loans which are unsecured and
have no fixed terms of repayment, bearing interest at
various rates 20.4 11.4
Obligations under capital lease 4.7 3.7
--------------
55.3 35.2
--------------
--------------
Repayment of the term loans is expected as follows:
-------
2001 0.6
2002 50.5
2003 1.6
2004 1.1
2005 0.6
Due subsequent 0.9
-------
55.3
-------
-------
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
--------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
4. Senior subordinated notes
On November 15, 1999, the Company issued US$150.0 senior
subordinated notes bearing interest at 13% per year and maturing on
December 15, 2009. Interest is payable semi-annually on June 15 and
December 15. The notes are redeemable at the option of the Company, in
whole or in part, at any time on or after December 15, 2004 at
specified redemption rates ranging from 106.5% of the principal amount
at December 15, 2004 to 100% of the principal amount after December
15, 2007, plus accrued and unpaid interest. In addition, up to 35% of
the notes are subject to redemption, at the Company's option at a
redemption price of 113% of the principal amount of the notes plus
accrued interest, prior to December 15, 2002, in the event that the
Company issues its own common shares. The notes are subordinated to
all indebtedness of the Company and all debt and liabilities of the
Company's subsidiaries, including trade payables.
On June 13, 2000, the Company issued an additional US$55.0 senior
subordinated notes bearing interest at 13% per year and maturing on
December 15, 2009. The notes carry the same terms and conditions as
the senior subordinated notes issued on November 15, 1999.
5. Capital stock
As at December 31, the issued capital stock is as follows:
---------------
2000 1999
---------------
Class A Voting Shares - 3,806,452 (1999 - 4,832,660) 53.2 67.5
Class B Non-Voting Shares - 26,927,878 (1999 -
25,291,444) 445.9 420.1
Class C Special-Voting Shares - 51,048 (1999 -63,255) 26.2 32.6
Class D Special Non-Voting Share - 1 (1999 - 1) - -
--------------
525.3 520.2
--------------
--------------
The Class A Voting Shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. and the Class B Non-Voting non-voting adj non-voting shares → azioni fpl senza diritto di voto Shares have identical attributes except that the Class B Non-Voting Shares are non-voting and each of the Class A Voting Shares are convertible at any time at the holder's option into one fully paid and non-assessable, Class B Non-Voting Share. The Class B Non-Voting Shares may be converted into Class A Voting Shares only in certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Each of the Class C Special Voting Shares are convertible at any time, at the holder's option, and automatically on September September: see month. 21, 2001, into 20 fully paid and non-assessable Class B Non-Voting Shares. The Class D Special Non-Voting Share allows the holder, depending on the holder's level of equity ownership in the Company, to elect up to two members to the Company's Board of Directors. In June 2000, the Company issued 100,000 Class B Non-Voting Shares in connection with the acquisition of Tattersal Sound Inc. During the period January January: see month. 1, 2000 to December 31, 2000, 1,038,350 Class A Voting Shares and 12,207 Class C Special-Voting Shares were converted into 1,282,488 Class B Non-Voting Shares. In addition, 12,142 Class A-Voting Shares and 253,946 Class B Non-Voting Shares were issued under the Company's stock option plans, employee share purchase plan and Director's and Officer's alternate alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. compensation plan. Alliance Atlantis Communications Inc. Supplemental Information December 31, 2000 (unaudited) -------------------------------------------------------------------- (in millions of Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents - except per share amounts) 6. Interest Interest for the three months ended December 31, 2000 is net of $7.0 (1999 - $6.4) capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. to investment in film and television programs and includes $3.4 (1999 - $3.5) of amortization of interest previously capitalized to investment in film and television programs. Interest for the nine months ended December 31, 2000 is net of $16.0 (1999 - 14.7) capitalized to investment in film and television programs and includes $7.5 (1999 - $7.3) of amortization of interest previously capitalized to investment in film and television programs. The weighted average interest rate for the nine months ended December 31, 2000 was 10.2% (1999 - 8.7%). 7. Earnings per share Earnings per common share is calculated on the basis of 31.8 million weighted average common shares outstanding for the three months ended December 31, 2000 (1999 - 30.9 million) and 31.6 million weighted average common shares outstanding for the nine months ended December 31, 2000 (1999 - 27.0 million). Fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings per common share for the three months ended December 31, 2000 is calculated on the basis of 34.6 million (1999 - 32.9 million) weighted average common shares outstanding. The net effect of the employee stock options and convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. increase earnings available to common shareholders by $1.0 (1999 - $0.4). Fully diluted earnings per common share for the nine months ended December 31, 2000 is calculated on the basis of 32.4 million (1999 - 30.6 million) weighted average common shares outstanding. The effects of the employee stock options and convertible debentures increase earnings available to common shareholders by $0.5 (1999 - $1.6). 8. Business Acquisitions During the first quarter of fiscal 2001, the following acquisitions occurred: (a) The Company purchased 100% of the outstanding shares of Tattersal Sound Inc. in exchange for 100,000 Class B Non-Voting Shares. The acquisition has been accounted for under the purchase method and the results of operations of the acquired company have been included in the consolidated statement of earnings from the date of acquisition. (b) The Company purchased the remaining 61% of the outstanding shares of Great North Communications Ltd. in exchange for cash and the assumption of debt totalling $14.0. The acquisition has been accounted for under the purchase method and the results of operations of the acquired company have been included in the consolidated statement of earnings from the date of acquisition. Alliance Atlantis Communications Inc. Supplemental Information December 31, 2000 (unaudited) -------------------------------------------------------------------- (in millions of Canadian dollars - except per share amounts) 9. Segmented information Information on reportable operating group earnings and operating group assets is as follows:
Motion
Broadcast Picture Television Other Total
Three months ended
December 31:
2000
Revenue 32.5 64.9 144.5 5.4 247.3
Gross profit 18.1 12.0 31.6 5.3 67.0
EBITDA 10.8 8.3 26.7 (2.7) 43.1
Total assets 188.0 535.6 946.0 240.1 1,909.7
Capital expenditures 0.8 0.5 1.5 1.4 4.2
-------------------------------------------
1999
Revenue 25.5 54.0 123.4 6.7 209.6
Gross profit 16.0 10.9 21.9 2.9 51.7
EBITDA 10.1 8.2 18.3 (3.2) 33.4
Total assets 128.9 305.0 856.7 183.0 1,473.6
Capital expenditures 1.6 2.2 0.3 0.6 4.7
-------------------------------------------
Nine months ended
December 31:
2000
Revenue 85.0 164.2 276.0 21.7 546.9
Gross profit 47.4 31.8 57.8 20.9 157.9
EBITDA 29.3 20.3 43.7 - 93.3
Total assets 188.0 535.6 946.0 240.1 1,909.7
Capital expenditures 7.1 0.9 3.5 3.8 15.3
-------------------------------------------
1999
Revenue 67.6 180.1 287.4 28.1 563.2
Gross profit 38.3 35.2 47.9 11.1 132.5
EBITDA 22.1 26.6 36.4 (6.6) 78.5
Total assets 128.9 305.0 856.7 183.0 1,473.6
Capital expenditures 2.0 4.6 2.6 4.7 13.9
-------------------------------------------
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
----------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
Geographic revenue information is as follows:
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Nine months ended
December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
Canadian 142.3 118.9 346.1 297.9
U.S. 68.5 24.1 122.4 89.4
Other Foreign 36.5 66.6 78.4 175.9
----------------------------------------------------------------------
247.3 209.6 546.9 563.2
----------------------------------------------------------------------
----------------------------------------------------------------------
10. Subsequent Events (a) On January 9, 2001, the Company entered into an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and restated Senior revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. which amended the existing credit facility. The credit facility provides up to $500.0 in borrowings and bears interest at rates ranging from the prime rate to the prime rate plus 1.75%. Substantially all of the assets of the Company have been pledged pledge n. 1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity. 2. a. as security for borrowing under the credit facility. (b) On February 12, 2001, the Company announced an offer to purchase 100% of the issued and outstanding shares of Salter Street Films Limited. The acquisition agreement provides that shareholders of Salter Street Films Limited may elect to receive either $3.33 in cash and 0.310 Class B Non-Voting Shares for each share of Salter Street Films Limited or 0.465 Class B Non-Voting Shares for each share of Salter Street Films Limited. This transaction is subject to Salter Street Films Limited shareholder approval which is expected to occur on or about May 1, 2000. (C) On January 15, 2001, the Company issued US$95.0 senior subordinated notes bearing interest at 13% per year and maturing on December 15, 2009. The notes carry the same terms and conditions as the senior subordinated notes issued on June 13, 2000 and November 15, 1999. 11. Comparative amounts Certain amounts presented in the prior period have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the presentation adopted in the current year.
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
----------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
12. Additional financial information
Three months ended Nine months ended
Revenue December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Broadcast 32.5 25.5 85.0 67.6
Motion Picture 64.9 54.8 164.2 180.9
Television 144.5 122.6 276.0 286.6
Other 5.4 6.7 21.7 28.1
----------------------------------------------------------------------
247.3 209.6 546.9 563.2
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Nine months ended
Gross Profit December 31, December 31,
----------------------------------------------------------------------
2000 % 1999 % 2000 % 1999 %
----------------------------------------------------------------------
Broadcast 18.1 56 16.0 63 47.4 56 38.3 57
Motion Picture 12.0 18 10.9 20 31.8 19 35.2 19
Television 31.6 22 21.9 18 57.8 21 47.9 17
Other 5.3 2.9 20.9 11.1
----------------------------------------------------------------------
67.0 27 51.7 25 157.9 29 132.5 24
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Nine months ended
EBITDA December 31, December 31,
----------------------------------------------------------------------
2000 % 1999 % 2000 % 1999 %
----------------------------------------------------------------------
Broadcast
Operating Channels 12.2 10.1 33.2 22.1
Development Channels (1.4) - (3.9) -
----------------------------------------------------------------------
10.8 33 10.1 40 29.3 34 22.1 33
Motion Picture 8.3 13 8.2 15 20.3 12 26.6 15
Television 26.7 18 18.3 15 43.7 16 36.4 13
Other (2.7) (3.2) - (6.6)
----------------------------------------------------------------------
43.1 17 33.4 16 93.3 17 78.5 14
----------------------------------------------------------------------
----------------------------------------------------------------------
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
----------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Nine months ended
Library Revenue December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Motion Picture 16.2 18.9 78.1 75.1
Television 8.4 10.2 27.4 36.3
----------------------------------------------------------------------
24.6 29.1 105.5 111.4
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Nine months ended
Production Deliveries December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Motion Pictures: 1.0 - 3.0 5.0
----------------------------------------------------------------------
----------------------------------------------------------------------
Television hours:
Series 68.5 86.5 118.5 149.5
Movies 6.0 6.0 6.0 16.0
AAC Kids 12.0 14.5 44.5 56.5
----------------------------------------------------------------------
86.5 107.0 169.0 222.0
AAC Fact 16.0 - 36.5 -
----------------------------------------------------------------------
102.5 107.0 205.5 222.0
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Three months ended Nine months ended
Broadcast Revenue December 31, December 31,
----------------------------------------------------------------------
2000 1999 2000 1999
----------------------------------------------------------------------
Subscriber 18.0 14.7 50.8 42.0
Advertising 14.5 10.8 34.2 25.6
----------------------------------------------------------------------
32.5 25.5 85.0 67.6
----------------------------------------------------------------------
----------------------------------------------------------------------
Alliance Atlantis Communications Inc.
Supplemental Information
December 31, 2000
(unaudited)
----------------------------------------------------------------------
(in millions of Canadian dollars - except per share amounts)
----------------------------------------------------------------------
----------------------------------------------------------------------
Broadcasting Subscribers December 31, September 30, June 30 March 31,
(millions) 2000 2000 2000 2000
----------------------------------------------------------------------
Showcase (100%) 5.3 5.2 5.2 5.1
Life Network (100%) 5.3 5.5 5.3 5.1
HGTV Canada (67%) 4.3 4.1 3.9 3.8
History Television (88%) 4.6 4.5 4.4 4.3
Series+ (50%) 0.6 0.5 0.3 -
Historia (50%) 0.6 0.5 0.3 -
Headline Sports (40%) 4.7 3.6 3.6 3.6
The Food Network (51%) 3.4 3.1 2.9 -
The Health Network* 0.6 0.5 0.3 -
----------------------------------------------------------------------
29.4 27.5 26.2 21.9
----------------------------------------------------------------------
----------------------------------------------------------------------
* The Company is the exclusive agent, in Canada, for this U.S. based network. Additionally, the Company was awarded a Category 1 licence for the Health Network Canada. This service is scheduled to be launched in the fall of 2001.
Television Group - Deliveries
--------------------------------------------------------------------
Forecast Total
Production Name Q1 Q2 Q3 Fiscal 2001
--------------------------------------------------------------------
Television Series
Earth: Final Conflict III 1.0 - - 1.0
Outer Limits V 8.0 3.0 - 11.0
The Associates - 2.0 6.0 13.0
Beastmaster II 1.0 8.0 5.0 22.0
Blue Murder - - 7.0 13.0
Cold Squad IV - 8.0 8.0 20.0
CSI - Crime Scene Investigation - 2.0 8.0 18.0
DaVinci's Inquest III - 4.0 9.0 13.0
Drop the Beat II - - 4.0 6.5
Earth: Final Conflict IV - 6.0 7.0 21.0
Star Hunter - 2.0 13.0 22.0
Outer Limits VI - - - 6.0
2Gether - 5.0 1.5 9.5
--------------------------------------------------------------------
Total Television Series 10.0 40.0 68.5 176.0
--------------------------------------------------------------------
Television Movies
Jewel - - 2.0 2.0
Confessions of an Ugly Stepsister - - - 2.0
Jett Jackson - - - 2.0
Lucky Girl - - - 2.0
North of 60 MOW III - - - 2.0
The Heist - - - 2.0
Me and My Shadows - - - 4.0
Haven - - 4.0 4.0
--------------------------------------------------------------------
Total Television Movies - - 6.0 20.0
--------------------------------------------------------------------
AAC Kids
Monster by Mistake II 3.0 1.5 - 4.5
Jett Jackson III 5.0 6.5 1.5 13.0
Sixth Grade Alien II - 6.5 4.5 11.0
In a Heartbeat - 6.0 3.5 9.5
Yvon of the Yukon 0.5 3.5 2.5 6.5
--------------------------------------------------------------------
Total AAC Kids 8.5 24.0 12.0 44.5
--------------------------------------------------------------------
Total Television Slate 18.5 64.0 86.5 240.5
--------------------------------------------------------------------
% of Current Year Slate 8% 27% 36%
--------------------------------------------------------------------
Cumulative % of Current Year Slate 8% 34% 70%
--------------------------------------------------------------------
Television Group - Deliveries
--------------------------------------------------------------------
Forecast Total
Production Name Q1 Q2 Q3 Fiscal 2001
--------------------------------------------------------------------
AAC Fact
Canadians IV - - 2.0 14.0
Circus - - 3.0 6.5
Daredevils - 3.0 - 3.0
Doves & Pigeons - - - 1.0
Extreme Body Parts - - - 3.0
The Gizmo Show - - - 1.0
Going Home - - - 6.5
High Seas Rescue - 3.0 - 3.0
Honeybees - 1.0 - 1.0
Old Irish - - - 3.0
The Science of Love - - - 3.0
Space Medicine - - 2.0 2.0
Storm Warning III 1.0 6.0 3.0 13.0
The Things We Do For Love II - 2.5 4.0 6.5
When Fun Turns to Fear - - 1.0 3.0
When Trains Crash - - - 1.0
Without Warning I - 4.0 1.0 5.0
--------------------------------------------------------------------
Total AAC Fact Slate 1.0 19.5 16.0 75.5
--------------------------------------------------------------------
% of Current Year Slate 1% 26% 21%
--------------------------------------------------------------------
Cumulative % of Current Year Slate 1% 27% 48%
--------------------------------------------------------------------
Motion Picture Group - Deliveries
--------------------------------------------------------------------
Forecast Total
Production Name Q1 Q2 Q3 Fiscal 2001
--------------------------------------------------------------------
Motion Pictures
Marine Life 1.0 - - 1.0
Possible Worlds - 1.0 - 1.0
Second Skin - - 1.0 1.0
Slackers - - - 1.0
51st State - - - 1.0
--------------------------------------------------------------------
Total Motion Picture Slate 1.0 1.0 1.0 5.0
--------------------------------------------------------------------
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion