CanWest's 1999 Net Earnings Up 7%.WINNIPEG Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Manitoba--(BUSINESS WIRE)--Nov. 9, 1999-- CanWest Global Communications CanWest Global Communications Corp. TSX: CGS TSX: CGS.A NYSE: CWG is one of Canada's largest international media companies. The company's head office is situated in Winnipeg, Manitoba, at the tallest building (CanWest Global Place) in the city and it is on the Corp., (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CGS CGS centimeter-gram-second system. CGS or cgs abbr. centimeter-gram-second system. CGS, c.g.s. .A.) (WINNIPEG STOCK EXCHANGE:CGS.A.) (TSE:CGS.S.) (WINNIPEG STOCK EXCHANGE:CGS.S.) (NYSE NYSE See: New York Stock Exchange :CWG CWG Conversations with God CWG Core Working Group CWG Certification Working Group (WiMAX Forum) CWG Collaboration Working Group CWG Commercial Working Group (TAT-14) ) Canada's leading international media company, today reported financial results for its year ended August 31, 1999. Net earnings totaled $146.1 million or $0.98 per share in 1999, compared to $136.2 million or $0.91 per share last year on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis (1). * Combined revenue from operations in 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 , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , New Zealand Zealand: see Sjælland, Denmark. and Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. for the year increased $61.1 million, or 7% to $882.0 million from $820.9 million on a pro forma basis. * Combined broadcast operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before amortization totaled $265.0 million, down 10% over the proforma Proforma A financial projection based on assumptions. results for 1998, reflecting start-up Start-up The earliest stage of a new business venture. losses in our operations in development and reduced results from our television operations in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . * Combined cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was $171.7 million or $1.15 per share compared to proforma cash of $170.1 million or $1.14 per share last year. Commenting on the results, Leonard Asper Leonard Asper (born May 31, 1964, in Winnipeg, Manitoba), is a Canadian businessperson and lawyer. He is a graduate of Brandeis University and the University of Toronto Law School. Leonard Asper is the son of the late Izzy Asper, founder of CanWest Global. , CanWest's President and Chief Executive Officer said: "We are satisfied with the results for fiscal 1999 given losses in our start-up operations and given that 50% of our operations (South Pacific) suffered from the downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in the Asian markets. The results achieved, despite these factors, demonstrate the underlying strength of our operations in Canada and Australia, where our television networks continue to reach the target audiences in increasing numbers. The situation in New Zealand began to improve in the fourth quarter of 1999 with the announcement of an agreement with SKY for the rights to New Zealand's premier sporting events. The acquisition has sparked considerable interest in TV3 from national advertisers and we expect to show significant improvement from the New Zealand operations in F2000." Asper As´per a. 1. Rough; rugged; harsh; bitter; stern; fierce. n. 1. (Greek Gram.) The rough breathing; a mark (h before it; thus hōs r>, Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the strategy with the acquisition of interests in two Internet content providers See content provider. , and the substantial increase in the production slate and the distribution library of CanWest Entertainment. All of these developments have set the stage to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our revenue and profit sources in fiscal 2000 and beyond." Net earnings for the year ended August 31, 1999 totaled $146.1 million, including the $15 million gain from a break fee as a result of the attempted acquisition of 68% of NetStar Communications and a one time special dividend from Ulster Ulster, northernmost of the historic provinces of Ireland. Modern Ulster consists of nine counties. Six (Antrim, Armagh, Down, Fermanagh, Derry, and Tyrone) now make up Northern Ireland (see Ireland, Northern), which is often referred to as Ulster; the remaining Television plc, in which CanWest holds a 29.9% interest. These results include the cost of carrying large investments in WIC WIC - WAN Interface Card Western International Communications Ltd., but do not include CanWest's share of the earnings of WIC in which it holds an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 44% equity interest. The Company accounts for the investments in WIC and the 29.9% interest in Ulster Television plc at cost, recording dividend income as declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. . WIC has not yet reported their results for the year ending August 31, 1999, however, for the nine months to May 31, 1999, WIC reported revenue of $438.7 million, earnings before restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs of $23.6 million, and cash flow before restructuring costs of $58.6 million. For the twelve months ended June June: see month. 30, 1999, Ulster TV reported revenue of 37.6 million Pounds Sterling operating profit before amortization of 11.3 million Pounds Sterling, net earnings of 6.7 million Pounds Sterling and cash flow from operations of 8.4 million Pounds Sterling. Throughout 1999, Global's 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. production continued to lead the industry in ratings with such programs as Traders Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. , Bob & Margaret Margaret, 1930–2002, British princess, second daughter of King George VI and sister of Queen Elizabeth II, b. Glamis, Scotland. In 1960 she married a commoner, the photographer Antony Armstrong-Jones, who was created earl of Snowdon in 1961. , The Outer Limits, and the television movie Justice. Also, both Bob and Margaret Bob and Margaret was a Canadian/UK animated television series that was also shown in the United States. It was based on the Academy Award winning animated short Bob's Birthday, featuring the same main characters. and The Outer Limits, were nominated nom·i·nate tr.v. nom·i·nat·ed, nom·i·nat·ing, nom·i·nates 1. To propose by name as a candidate, especially for election. 2. To designate or appoint to an office, responsibility, or honor. for awards at the 14th Annual Gemini Awards The Gemini Awards are an annual awards ceremony in Canada. First awarded in 1986, the Geminis celebrate the achievements of TV members of the Academy of Canadian Cinema and Television. Essentially, it presents awards for the best television productions in Canada. . During the fourth quarter and subsequent to the end of the fiscal year, CanWest completed the following initiatives, all of which are expected to positively impact the Company's future results: * CanWest reached agreement on all commercial terms with Shaw Communications Inc. on the division of WIC's assets. Under the terms of this agreement all of WIC's conventional television assets as well as its 50% stake in ROB-Tv and a Video-On-Demand The ability to deliver a movie, sports event or other video program to a TV set whenever the customer requests it. Video-on-demand (VOD) typically refers to free and paid programs from the cable TV companies or the telephone companies that offer video over DSL lines. license will be transferred to CanWest. * TV3 Ireland marked its first anniversary on September September: see month. 20, 1999, with the launch of Ireland's first breakfast television program, ireland am Ireland AM is Ireland's only breakfast programme. It airs on TV3. The current presenters are Mark Cagney, Sinead Desmond, Alan Hughes and Aidan Cooney. It debuted in September 1999. The show goes out from 07:00 - 10:00. . While audience numbers continue to increase, the station now has a solid base of 10% of prime time viewing for the Network's target audience and has been rated by independent analysts as one of the most successful launches in recent Western European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. television history. * CanWest successfully launched its new media division with two Internet acquisitions. The Company acquired a 20% stake in both Internet Broadcasting Internet Broadcasting (formerly Internet Broadcasting Systems), or IBS, is a provider of television station web sites. IBS hosts over 70 local stations' sites, and co-produced NBCOlympics. Systems Inc. and LifeServ Corporation. Both are U.S. based Internet content providers who are sectoral leaders. This will be followed with the launch of several Global websites. * Network TEN Australia announced an online joint venture with Village Road Show Limited, Australia's largest cinema, theme park and FM radio operator. The joint venture will develop and operate Australia's largest entertainment themed Internet presence. * CanWest Entertainment doubled its production slate and significantly increased its distribution library. "The challenge for 2000 in Canada is to complete the legal and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. process for the WIC transaction and integrate the WIC operations into the Global Network which will significantly add to our operating profit and earnings and Canadian programming strengths," said I.H. Asper, O.C., Q.C., LL.D., Ph.D., Executive Chairman. "As for the outlook for 2000, we believe there will be continuing strength in the production of our own content and the development of our library through CanWest Entertainment, an increased presence on the Internet through our present holdings and additional acquisitions and increased global audience reach through the acquisition and development of additional broadcasting outlets in new markets. As well, start-up losses in Ireland, TV4 New Zealand and Global Prime should be significantly reduced. CanWest Global Communications Corp. (NYSE: CWG; TSE, WSE WSE Web Services Enhancements (Microsoft) WSE Warsaw Stock Exchange (Warsaw, Poland) WSE Symposium on Web Site Evolution (IEEE International Symposum) : CGS.S and CGS.A; www.canwestglobal.com) is an international media company. CanWest owns, operates and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. holds substantial interests in conventional television and 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. cable channels in Canada, New Zealand, Australia, Ireland and the United Kingdom. The Company's program production and distribution division and new media division operate in several countries throughout the world.
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED FINANCIAL RESULTS (1)
(in thousands of Canadian dollars, except as
otherwise noted)
For the three months ended
August 31
-----------------------------
Increase
1999 1998 (Decrease)
$ $ %
REVENUE
Television
Canada - Global Television 78,808 77,326 2
Australia - Network TEN 66,240 66,879 (1)
New Zealand - TV3 16,251 16,763 (3)
-------- -------- ------
161,299 160,968 -
Radio
New Zealand - More FM 5,015 4,260 18
Entertainment
CanWest Entertainment 6,860 3,486 97
-------- -------- ------
173,174 168,714 3
-------- -------- ------
Operations in development
Canada - Global Prime 2,228 - -
New Zealand - TV4 1,156 1,872 (38)
Ireland - TV3 3,856 - -
-------- -------- ------
7,240 1,872 287
-------- -------- ------
TOTAL REVENUE 180,414 170,586 6
-------- -------- ------
-------- -------- ------
BROADCAST OPERATING PROFIT
Television
Canada - Global Television 16,635 18,490 (10)
Australia - Network TEN 23,013 25,681 (10)
New Zealand - TV3 (252) (736) (66)
-------- -------- ------
39,396 43,435 (9)
Radio
New Zealand - More FM 1,259 794 59
Entertainment
CanWest Entertainment 547 949 (42)
-------- -------- ------
41,202 45,178 (9)
-------- -------- ------
Operations in development
Canada - Global Prime (827) - -
New Zealand - TV4 (859) (729) 18
Ireland - TV3 (6,148) - -
-------- -------- ------
(7,834) (729) 975
-------- -------- ------
TOTAL BROADCAST
OPERATING PROFIT 33,368 44,449 (25)
Corporate and development expenses 4,744 3,180 49
-------- -------- ------
OPERATING PROFIT (EBITDA) 28,624 41,269 (31)
-------- -------- ------
-------- -------- ------
NOTES:
(1) Combined 1998 results reflect a 57.5% economic interest in
Network TEN.
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED FINANCIAL RESULTS (1)
(in thousands of Canadian dollars, except as
otherwise noted)
For the three months ended
August 31
------------------------------
1999 1998 Increase
(Decrease)
$ $ %
Revenue 180,414 170,586 6
Operating expenses 147,046 126,137 17
---------- ---------- ------
Broadcast operating profit
before amortization 33,368 44,449 (25)
Corporate and development
expenses 4,744 3,180 49
---------- ---------- ------
Operating profit before
amortization (EBITDA) 28,624 41,269 (31)
Broadcast license and goodwill
amortization 3,482 3,256 7
Other amortization 5,894 4,373 35
---------- ---------- ------
Earnings before net financing
expenses (EBIT) 19,248 33,640 (43)
Financing expenses 9,865 10,627 (7)
Investment and other income (8) (1,641) (100)
---------- ---------- ------
Earnings before income taxes
(EBT) 9,391 24,654 (62)
Provision for income taxes 3,936 6,494 (39)
---------- ---------- ------
Earnings before the following 5,455 18,160 (70)
Minority interests 4,725 (360) (1,413)
---------- ---------- ------
Interest in earnings of equity
accounted affiliate 430 371 16
---------- ---------- ------
Net earnings 10,610 18,171 (42)
---------- ---------- ------
---------- ---------- ------
Cash flow from operations 12,373 13,866 (11)
---------- ---------- ------
---------- ---------- ------
Net earnings per share
Basic $0.07 $0.12 (42)
Fully diluted $0.07 $0.12 (42)
Cash flow from operations per
share
Basic $0.08 $0.09 (13)
Fully diluted $0.08 $0.09 (13)
NOTES:
(1)Combined 1998 results reflect a 57.5% economic interest in
Network TEN.
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED FINANCIAL RESULTS
(in thousands of Canadian dollars, except as
otherwise noted)
For the year ended August 31
-----------------------------------------
Increase
1999 1998 1998 (Decrease)
Pro As previously (2) from Pro
forma (1) reported forma
$ $ $ %
REVENUE
Television
Canada - Global
Television 436,914 426,752 426,752 2
Australia - Network
TEN 279,654 275,601 326,141 1
New Zealand
- TV3 66,389 83,285 83,285 (20)
--------- --------- --------- ---------
782,957 785,638 836,178 -
Radio
New Zealand - More
FM 20,211 19,140 19,140 6
Entertainment
CanWest
Entertainment 47,208 7,756 7,756 509
--------- --------- --------- ---------
850,376 812,534 863,074 5
--------- --------- --------- ---------
Operations in development
Canada - Global
Prime 8,292 - - -
New Zealand - TV4 5,622 8,361 8,361 (33)
Ireland - TV3 17,708 - - -
--------- --------- --------- ---------
31,622 8,361 8,361 278
--------- --------- --------- ---------
TOTAL REVENUE 881,998 820,895 871,435 7
--------- --------- --------- ---------
--------- --------- --------- ---------
BROADCAST OPERATING PROFIT
Television
Canada - Global
Television 173,359 168,595 168,595 3
Australia - Network
TEN 100,957 101,719 120,307 (1)
New Zealand -
TV3 4,779 20,249 20,249 (76)
--------- --------- --------- ---------
279,095 290,563 309,151 (4)
Radio
New Zealand -
More FM 5,053 4,322 4,322 17
Entertainment
CanWest
Entertainment 2,698 1,802 1,802 50
--------- --------- --------- ---------
286,846 296,687 315,275 (3)
--------- --------- --------- ---------
Operations in development
Canada - Global
Prime (1,945) - - -
New Zealand - TV4 (3,079) (1,050) (1,050) 193
Ireland - TV3 (16,781) - - -
--------- --------- --------- ---------
(21,805) (1,050) (1,050) 1,977
--------- --------- --------- ---------
TOTAL BROADCAST
OPERATING
PROFIT 265,041 295,637 314,225 (10)
Corporate and
development
expenses 885 13,112 13,112 (93)
--------- --------- --------- ---------
OPERATING PROFIT
(EBITDA) 264,156 282,525 301,113 (7)
--------- --------- --------- ---------
--------- --------- --------- ---------
NOTES:
(1) Combined 1998 results as previously reported have been restated
on a pro forma basis to reflect a 57.5% economic interest in
Network TEN.
(2) Combined 1998 actual results as previously reported include the
Company's 76% economic interest in Network TEN to April 1998.
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED FINANCIAL RESULTS
(in thousands of Canadian dollars, except as
otherwise noted)
For the year ended August 31
----------------------------------
1999 1998 1998 Increase
Pro forma(1) As (Decrease)
previously From
Reported(2) Pro forma
$ $ $ %
Revenue 881,998 820,895 871,435 7
Operating expenses 616,957 525,258 557,210 17
------- ------- ------- -----
Broadcast operating
profit before
amortization 265,041 295,637 314,225 (10)
Corporate and
development expenses 885 13,112 13,112 (93)
------- ------- ------- -----
Operating profit
before amortization
(EBITDA) 264,156 282,525 301,113 (7)
Broadcast license
and goodwill
amortization 13,495 12,778 16,603 6
Other amortization 23,354 18,011 18,823 30
------- ------- ------- -----
Earnings before net
financing expenses
(EBIT) 227,307 251,736 265,687 (10)
Financing expenses 34,291 25,885 33,780 32
Investment and other
income (22,473) (5,321) (5,321) 322
------- ------- ------- -----
Earnings before income
taxes (EBT) 215,489 231,172 237,228 (7)
Provision for
income taxes 78,576 86,677 88,493 (9)
------- ------- ------- -----
Earnings before the
following 136,913 144,495 148,735 (5)
Minority interests 9,791 (4,345) (4,345) (325)
Interest in earnings
of equity accounted
affiliate 899 828 970 9
------- ------- ------- -----
Earnings before realized
currency translation
adjustments 147,603 140,978 145,360 5
Realized currency
translation
adjustments (1,500) (4,800) (6,000) (69)
Gain on sale of a 19%
economic interest in
Network TEN - - 60,757 -
------- ------- ------- -----
Net earnings 146,103 136,178 200,117 7
------- ------- ------- -----
------- ------- ------- -----
Cash flow from
operations 171,654 170,141 179,018 (4)
------- ------- ------- -----
------- ------- ------- -----
Earnings per share before gain on sale of a 19% economic interest
in Network TEN and realized currency translation adjustments
Basic $0.99 $0.95 $0.97 4
Fully diluted $0.98 $0.94 $0.97 4
Net earnings per share
Basic $0.98 $0.91 $1.34 8
Fully diluted $0.97 $0.90 $1.33 8
Cash flow from operations
per share
Basic $1.15 $1.14 $1.20 1
Fully diluted $1.14 $1.13 $1.19 1
NOTES:
(1) Combined 1998 results as previously reported have been restated on
a pro forma basis to reflect a 57.5% economic interest in Network
TEN.
(2) Combined 1998 actual results as previously reported include the
company's 76% economic interest in Network TEN to April 1998.
FINANCIAL RESULTS INTRODUCTION CanWest's long term success strategy has been based upon acquiring under-performing assets and starting up new operations, and developing them into solid earnings and cash flow contributors. We also acquire fully priced assets which in our hands can be made more profitable in combination with CanWest operations. While this strategy has been extremely successful, it requires periods of development time to have assets mature into solid contributors. We remind our shareholders that CanWest is both an operating and development company. In the last two years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company has undertaken several strategic initiatives to position itself for further growth in the new millennium millennium [Lat.,=1,000 years], the period of 1,000 years in which, according to some schools of Christian eschatology, Christ will reign again gloriously on earth. Belief in the millennium, based on Rev. 20, has recurred in Christianity since the earliest times. . These include the start-ups of new national television networks TV3 Ireland and TV4 New Zealand; the start-up of CanWest Entertainment and its acquisition of Canadian producer and distributor, Fireworks fireworks: see pyrotechnics. fireworks Explosives or combustibles used for display. Of ancient Chinese origin, fireworks evidently developed out of military rockets and explosive missiles and accompanied the spread of military explosives westward to Entertainment; the establishment of a presence in radio broadcasting The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. with the purchase of New Zealand's More FM and the entry into specialty television with the start up of the Global Prime network. These initiatives, while not currently significant financially, represent the foundations for the development of additional core business units for CanWest. BASIS OF PRESENTATION Financial results are reported in 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 and prepared on a combined basis, which proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. consolidates the financial results of Network TEN. Net earnings and earnings per share on a combined basis are the same as net earnings and earnings per share reported on a Canadian GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis. In April 1998, the Company's economic interest in Network TEN was sold down from 76% to its original 57.5%. Comparative pro forma information has been provided to reflect 1998 results on the basis that CanWest had maintained a 57.5% economic interest in Network TEN throughout fiscal 1998. RESULTS OF OPERATIONS The results reported today reflect internal growth in revenue and broadcast operating profit from television operations in Canada and Australia. As well, the results absorb absorb To offset sell orders or a new security offering with buy orders. the anticipated and normal start up losses incurred by our three new television operations - the Global Prime cable network in Canada, the TV4 Network in New Zealand and the TV3 Network in Ireland. The results for the year include the costs associated with the financing of our 44% ownership of WIC Western International Communications Ltd. of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $22.3 million, but does not include the Company's share of WIC's operating results. The Company accounts for this investment at cost, recording dividend income as declared. YEAR'S FINANCIAL HIGHLIGHTS REVENUE Combined revenue rose to $882.0 million for the year ended August 31, 1999 compared to revenue of $820.9 million on a pro forma basis for the year ended August 31, 1998. This represented an overall increase of 7%, reflecting the following: * Global's revenue was up 2%, to $436.9 million in fiscal 1999 from $426.8 million. Global's program schedule continued to perform well in an advertising market which showed moderate growth. * Network TEN's revenue was up 2%, to A$512.6 million from A$502.9 million in fiscal 1998. Network TEN has been successful in maintaining revenue growth in line with that of the overall Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. market. The Company's reported contributions from Network TEN are affected by changes in the relative value of the Australian currency. For fiscal 1999, Network TEN's results were converted at an average rate of $0.9498 compared to $0.9568 last year. After conversion to Canadian dollars, Network TEN's 57.5% contribution to the Company's revenue for 1999 improved by 1% to $279.7 million from $275.6 million on a pro forma basis for 1998. * TV3 New Zealand's revenue was down 17%, to NZ$83.5 million this year from NZ$100.3 million. This reflected a contracting New Zealand television advertising market resulting from an economy in recession and declines in audience share. New Zealand results have been converted into Canadian dollars at an average rate of $0.7958 compared to $0.8273 last year, representing a decline of 3.8%. After conversion to Canadian dollars, TV3's contribution to the Company's revenue for 1999 declined by 20% to $66.4 million from $83.3 million last year. * More FM's revenue increased by 10%, to NZ$25.4 million from NZ$23.2 million last year. The New Zealand radio advertising market has not suffered the same impact as television. * CanWest Entertainment's revenue was $47.2 million for the year ending August 31, 1999. CanWest Entertainment's wholly-owned subsidiary, Fireworks Entertainment, continued production and delivery of Highlander: The Raven raven, common name for the largest member of the family Corvidae (crow family), ranging throughout the arctic and temperate regions of the Northern Hemisphere. The raven, Corvus corax, is a glossy black scavenging bird about 26 in. , Pacific Blue, Real Kids, Real Adventures, and Nikita during the year. * Revenue contributions from operations in development totalled $31.6 million this year versus $8.4 million last year. These include the Global Prime cable network in Canada, contributing $8.3 million; the TV4 Network in New Zealand, contributing NZ$7.1 million (or $5.6 million); and the TV3 Network in Ireland, contributing 8.4 million Irish Pounds (or $17.7 million). BROADCAST OPERATING PROFIT (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 ) Combined broadcast operating profit (before corporate and development costs) for the year ended August 31, 1999 was $265.0 million compared to $295.6 million on a pro forma basis last year. This result reflected the following: * Global's broadcast operating profit was up 3% to $173.4 million this year from $168.6 million. This increase reflects the growth in revenue and continued attention to cost control. * Network TEN's broadcast operating profit was flat at A$185.2 million in fiscal 1999 from A$185.5 million last year. Network TEN's 57.5% contribution to CanWest's broadcast operating profit was $101.0 million for the year ended August 31, 1999 compared with $101.7 million on a pro forma basis for the same period last year. * TV3 New Zealand broadcast operating profit declined to NZ$6.1 million from NZ$23.6 million in fiscal 1998. This was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the increased cost of foreign programming, increased local programming, TV3's revenue decline and a decline in the New Zealand currency which increased foreign program costs. * TV3's contribution to CanWest's operating profit in Canadian currency was $4.8 million for the year ended August 31, 1999 compared to $20.2 million for the same period a year ago. * More FM's broadcast operating profit was up 22% to NZ$6.4 million this year from NZ$5.2 million. * CanWest Entertainment's operating profit was $2.7 million this year. * Start-up losses generated from operations in development totalled $21.8 million, arising primarily from the start-up of TV3 Ireland. Combined operating profit before amortization but after corporate and development expenses (EBITDA) was $264.2 million for fiscal 1999, compared to $282.5 million on a pro forma basis last year. Receipt of a $15.0 million break fee from certain of the NetStar shareholders has offset corporate and development expenses for the year. Investment income totaled $22.5 million to date, compared with $5.3 million for the same period last year. This reflects a gain on sale of securities as well as the special dividend from Ulster Television and ordinary dividends from WIC and Ulster. Following payment of the second quarter dividend, WIC suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. payment of dividends. NET EARNINGS Net earnings totaled $146.1 million and $0.98 per share compared to $136.2 million or $0.91 per share on a pro forma basis last year - up 8%. CASH FLOW Cash flow from operations totalled $171.7 million or $1.15 per share for 1999 compared to cash flow from operations of $170.1 million or $1.14 per share on a pro forma basis in 1998. FOURTH QUARTER FINANCIAL HIGHLIGHTS REVENUE Combined revenue for the quarter ended August 31, 1999 was $180.4 million compared to revenue of $170.6 million on a pro forma basis for the quarter ended August 31, 1998. This represented an overall increase of 6%, reflecting the following: * Global's revenue was up 2%, to $78.8 million in fiscal 1999 from $77.3 million in fiscal 1998. * Network TEN's revenue was down 7%, to A$118.9 million from A$128.3 million in fiscal 1998, reflecting a soft advertising market in which Network TEN upheld its commercial share. For the three months ended August 31, 1999, Network TEN's results were converted at an average rate of $0.9686 compared to $0.9066 for the same period last year. The strengthened Australian currency, offset the impact of a decline in revenue. After conversion to Canadian dollars, Network TEN's 57.5% contribution to the Company's revenue for 1999 declined to $66.2 million from $66.9 million. * TV3 New Zealand's revenue declined 5%, to NZ$20.7 million this year from NZ$21.8 million. In Canadian dollars, the contribution declined 3% to $16.3 million from $16.8 million last year. * More FM's revenue increased by 15%, to NZ$6.4 million from NZ$5.5 million last year, reflecting strong performances from the More FM stations in Christchurch Christchurch, city and district, England Christchurch, city (1991 pop. 32,854) and district, Dorset, S central England, on Christchurch Bay at the confluence of the Avon and Stour rivers. , Auckland Auckland (ôk`lənd), city (1996 pop. 345,768; urban agglomeration pop. 991,796), N North Island, New Zealand. It is situated on an isthmus and is the largest urban region and chief port of the country. and Dunedin Dunedin, city, New Zealand Dunedin (dənē`dĭn), city (1996 pop. 118,143), SE South Island, New Zealand, at the head of Otago Harbor. Dunedin, with Port Chalmers, is an important port and industrial center. and The Breeze. * CanWest Entertainment's revenue was $6.9 million this quarter. * Revenue contributions from operations in development totalled $7.2 million this year versus $1.9 million last year. They include contributions from Global Prime of $2.2 million, TV3 Network in Ireland of 1.9 million Irish Pounds (or $3.9 million) and TV4 New Zealand of NZ$1.5 million (or $1.2 million). BROADCAST OPERATING PROFIT (EBITDA) Combined broadcast operating profit (before corporate and development costs) for the quarter ended August 31, 1999 was $33.4 million compared to $44.4 million on a pro forma basis in the fourth quarter of the prior year. The decline in broadcast operating profit reflected the following: * Global's broadcast operating profit was down 10%, to $16.6 million this year from $18.5 million. * Network TEN's broadcast operating profit was down 16%, to A$41.3 million in fiscal 1999 from A$49.3 million last year due to revenue declines noted above and some one time gains reflected in operating profit in the fourth quarter of fiscal 1998. Excluding these non-recurring items, broadcast operating profit declined in line with the decline in revenues for the fourth quarter. Network TEN's contribution to CanWest's broadcast operating profit was down 10% to $23.0 million compared to $25.7 million on a pro forma forma, adj/n minor elements between the members of a botanical species. basis for the same period a year ago. * TV3 New Zealand's broadcast operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was NZ$320,000 up from a loss of NZ$955,000 in fiscal 1998. In Canadian dollars, the contribution was a loss of $252,000 compared to $736,000 a year ago. * More FM's broadcast operating profit was NZ$1.6 million this year compared to NZ$1.0 million last year. Radio's contribution in Canadian dollars was $1.3 million compared to $794,000 a year ago. * CanWest Entertainment's operating profit was $0.5 million this quarter. * Start-up losses generated from operations in development totalled $7.8 million, arising primarily from the start-up of TV3 Ireland. Combined operating profit before amortization but after corporate and development expenses (EBITDA) was $28.6 million for the fiscal 1999 fourth quarter, compared to $41.3 million on a pro forma basis for the fourth quarter last year. Corporate and development expenses were $4.7 million for the quarter, compared to $3.2 million last year. The Company had no investment income for the fourth quarter of 1999, compared to $1.6 million for the same period last year, reflecting suspension suspension, in vehicles suspension, in automobiles, system of springs used to suspend the frame, body, engine, and power train above the wheels. Its principal purpose is to lessen the jarring of the automobile that is caused by irregularities in the roads of the WIC dividend earlier in the year. NET EARNINGS Net earnings totaled $10.6 million and $0.07 per share compared to $18.2 million or $0.12 per share on a pro forma basis last year. CASH FLOW Cash flow from operations totaled $12.4 million or $0.08 per share in fiscal 1999 versus $13.9 million and $0.09 per share on a pro forma basis for the same period last year. RESULTS DETERMINED 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 U.S. GAAP Net earnings determined in accordance with U.S. GAAP were $11.2 million for the three months ended August 31, 1999 and 1998. Basic and 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 were $0.08 and $0.07 in the fourth quarter this year, compared to $0.07 in 1998. Net earnings determined in accordance with U.S. GAAP were $146.5 million for the year ended August 31, 1999, compared to $189.5 million in fiscal 1998. Basic and fully diluted earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the were $0.98 this year compared to $1.27 and $1.26 in 1998. YEAR 2000 The company has reviewed all systems, applications, processes and relationships for impact of the Year 2000. Substantially all systems and applications have been tested and determined to be Year 2000 ready. Contingency plans A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. have been developed for all business units. However, despite the company's efforts, it is not possible to be certain that all aspects of the Year 2000 issue affecting the company, including the efforts of customers, suppliers or other third parties will be fully resolved. (1) Operating results and per share information are shown on a combined basis, proportionately consolidating the Company's 57.5% economic interest in Network TEN. In order to provide comparable benchmarks for performance in 1999, results for 1998 as previously reported have been prepared on a pro forma basis to reflect a 57.5% economic interest in Network TEN. Results for 1998 previously reported reflected a 76% economic interest in Network TEN and a gain on the sell-down of interest in Network TEN from 76% to 57.5%. |
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