CanWest Registers Another Record-Breaking Year (Part 2 of 2).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. 14, 1996-- CANWEST GLOBAL COMMU COMMU Communications Unit (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. .S. CGS.A., 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) . ) BACKGROUND INFORMATION RESULTS OF OPERATIONS The following discussion focuses upon financial results that have been prepared on a combined basis and 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 . "Under 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. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , we are required to equity account our 57.5 percent economic interest in Network Ten," said John Maguire John Maguire is the name of:
n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. , Finance and Chief Financial Officer. "We believe that by providing our shareholders with full financial disclosure, on a supplementary basis, of Network Ten's results 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. consolidated into our financial statements, we more clearly reflect the true magnitude of our Company's broadcast operations." It is important to note that earnings and earnings per share on a combined basis are the same as earnings and earnings per share reported on a Canadian GAAP basis. TWELVE MONTHS ENDED AUGUST 31, 1996 Combined revenue for the year ended August 31, 1996 was $628,018,000 compared to $552,168,000 for the 12 months ended August 31, 1995. This represented a 13.7 percent gain, reflecting strong performance in all sectors of the Company's broadcast 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 , CanWest Global System's revenue for the year rose to $325,197,000, a 9.2 percent increase over the $297,773,000 reported last year. This revenue growth was attributable to CanWest's continued strong program schedule - the most widely viewed in Canada - and its top rated positions in the major market areas of Southern Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. and the Lower Mainland The Lower Mainland is the name that residents of British Columbia apply to the region surrounding the City of Vancouver. According to the 2001 census, over 2.2 million people live in the region; sixteen of the province's thirty most populous municipalities are located there of British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . - In 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. , Network Ten reported the most significant gains of any of CanWest's operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon . The Company's share of Ten's revenue for the year ended August 31, 1996 rose to $259,408,000, up 20.4 percent over the $215,470,000 reported last year. This increase was due in large part to the contributions of the Perth Perth, city, Australia Perth, city (1991 pop. 1,018,702), capital of Western Australia, SW Australia, on the Swan River estuary. Fremantle is Perth's port. and Adelaide Adelaide, empress consort of Holy Roman Emperor Otto I Adelaide (ăd`əlād) or Adelheid (ä`dĕlhīt), c. stations acquired by Network Ten 10 months previously. - 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. , CanWest's share of TV3's revenue was $43,413,000 for fiscal 1996, up 11.5 percent over the $38,925,000 reported in fiscal 1995. This improved performance is a result of increased audience share and a stronger program schedule at TV3. 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 and corporate and development costs (broadcast operating profit) for the year ended August 31, 1996, rose an impressive 30.5 percent to $218,367,000 from the $167,321,000 recorded last year. Broadcast operating growth across each of the Company's three operations reflected the robust revenue increases described above, coupled with ongoing strict attention to operating cost control. - In Canada, broadcast operating profit totaled $113,130,000 for the 1996 fiscal year, a 25.3 percent increase over last year's total of $90,300,000. This increase was directly related to strong revenue growth and stringent control over operating costs operating costs npl → gastos mpl operacionales . - In Australia, CanWest's share of Network Ten's broadcast operating profit rose to $91,158,000 this year, an increase of 31.2 percent over the 1995 total of $69,477,000. This increase was primarily attributable to the contributions of the Perth and Adelaide stations in 1996. - In New Zealand, CanWest's share of TV3's broadcast operating profit was up significantly - 86.6 percent - at $14,079,000 for the year ended August 31, 1996. This compares with $7,544,000 in the prior year. Growth at TV3 reflected revenue gains combined with favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. exchange gains from the acquisition of foreign programming, as well as minimal increases in operating costs. Combined operating profit before amortization, but after corporate development expenses (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 ), rose 30.3 percent to $206,318,000 in fiscal 1996 from $158,344,000 in 1995. Earnings 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 rose 27.6 percent to $105,589,000 in fiscal 1996 from $82,757,000 in 1995. Cash flow from continuing operations rose 41.3 percent to $137,163,000 from $97,067,000 in 1995. Growth in cash flow reflects the increased profitability of the Company in 1996. FOURTH QUARTER ENDED AUGUST 31, 1996 Combined revenue for the quarter ended August 31, 1996 was up 11.7 percent to $140,767,000, versus $126,007,000 for the comparable period in 1995. This increase came in the face of strong competition for audience in all markets from coverage of the Olympic Games Olympic games, premier athletic meeting of ancient Greece, and, in modern times, series of international sports contests. The Olympics of Ancient Greece Although records cannot verify games earlier than 776 B.C. in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. . - In Canada, CanWest Global System revenue for the fourth quarter, which traditionally is the softest period of the year, was nevertheless up 6.5 percent to $62,516,000, from the $58,705,000 recorded in the fourth quarter of 1995. The revenue growth was attributable to CanWest's strong program schedule. - In Australia, Network Ten continued its strong showing despite a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of the local advertising market and competition from the Olympic Games. For the quarter ended August 31, 1996, CanWest's share of Network Ten's revenue was $66,774,000, a 16.2 percent increase over the 1995 fourth quarter total of $57,458,000. The primary reason for the strong showing in the fourth quarter was the inclusion of contributions from TEN'S Perth and Adelaide stations. - In New Zealand, TV3 also reported a solid fourth quarter, thanks largely to a strong promotional campaign and exceptional program ratings following coverage of the Olympic Games. For the quarter ended August 31, 1996, CanWest's share of TV3's revenue was $11,477,000, up 16.6 percent from the comparable period a year ago. Combined broadcast operating profit before amortization and corporate and development costs ( broadcast operating profit) for the fourth quarter of fiscal 1996 was up 27.0 percent over the same period last year at $38,783,000, versus $30,533,000. The broadcast operating profit described below was again reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of strong fourth quarter revenues in all three operations, combined with continued attention to operating cost control. - In Canada broadcast operating profit from the CanWest Global System increased almost $2 million, or 14.5 percent, to $13,016,000 during the fourth quarter. The increase reflects strong revenue growth accompanied by marginal increases in 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. . - CanWest's share of Network Ten's broadcast operating profit rose to $22,483,000 during the fourth quarter, an increase of 29.7 percent over the 1995 fourth quarter total of $17,340,000. This increase was primarily attributable to the contribution of TEN' s Perth and Adelaide stations, and to the favorable increases in the 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. currency. - In New Zealand, CanWest's share of TV3's broadcast operating profit was up substantially during the fourth quarter - rising 80.2 percent to $3,284,000 from $1,822,000. Operating expenses increased marginally over the prior year, while revenues increased 16.6 percent Combined operating profit before amortization but after corporate and development expenses (EBITDA) for the fourth quarter jumped to $35,379,000 from $29,190,000 reported in the fourth quarter of 1995. This represented an increase of 21.2 percent. Earnings from continuing operations rose 12.0 percent to $23,098,000 for the fourth quarter from $20,623,000 reported in the fourth quarter of 1995. Cash flow from continuing operations rose 59.4 percent to $30,328,000 in the fourth quarter from $19,026,000 in the fourth quarter 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 Earnings from continuing operations determined in accordance with U.S. GAAP were $103,469,000 for the year ended August 31, 1996. This compares with $76,144,000 for the year ended August 31, 1995. Primary 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 from continuing operations were $0.73 in the 1996 fiscal year and $0.55 in 1995. Net earnings determined in accordance with U.S. GAAP were $100,050,000 for the 1996 fiscal year compared to $63,770,000 in fiscal 1995. Primary and fully diluted earnings per share from continuing operations were $0.71 in 1996 and $0.46 in 1995. -0-
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED BALANCE SHEETS
AS AT AUGUST 31
1996 1995
$000 $000
ASSETS
Current Assets
Cash and short
term investments 182,180 10,286
Accounts receivable 101,594 111,923
Film and program rights 184,563 188,989
Other 6,190 5,628
---------- ----------
474,527 316,826
Film and program rights 42,431 18,971
Property and equipment 85,944 80,456
Broadcast licences 378,585 312,697
Long term investments 57,509 67,083
Other assets 55,826 47,149
---------- ----------
1,094,822 843,182
---------- ----------
---------- ----------
LIABILITIES
Current Liabilities
Bank loans and advances 3,130 9,527
Accounts payable and
accrued liabilities 113,603 100,743
Income taxes payable 48,185 29,532
Film and program
accounts payable 151,337 135,429
Current portion of
long term debt 3,400 5,229
---------- ----------
319,655 280,460
Other long term liabilities 9,380 11,164
Long term debt 223,640 228,179
Film and program
accounts payable 37,165 38,096
Minority interest 7,344 4,896
Deferred income taxes 22,603 23,047
---------- ----------
619,787 585,842
---------- ----------
SHAREHOLDERS' EQUITY
Capital stock 406,224 98,667
Contributed surplus 3,647 3,647
Retained earnings 36,546 136,121
Cumulative translation
adjustments 28,618 18,905
---------- ----------
475,035 257,340
---------- ----------
1,094,822 843,182
---------- ----------
---------- ----------
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENTS OF EARNINGS
FOR THE YEARS ENDED AUGUST 31
1996 1995
$000 $000
Revenue
628,018 552,168
Broadcast operating expenses 409,651 384,847
---------- ----------
Broadcast operating profit
before amortization 218,367 167,321
Corporate and
development expenses 12,049 8,977
---------- ----------
Operating profit
before amortization 206,318 158,344
Amortization of
broadcast licences 10,313 8,680
Other amortization 15,212 14,587
---------- ----------
180,793 135,077
Financing expenses 22,556 26,999
Investment income (1,922) (2,655)
---------- ----------
160,159 110,733
Provision for income taxes 53,356 38,023
---------- ----------
Earnings before the following 106,803 72,710
Minority interest (2,448) (1,855)
Interest in earnings of equity
accounted affiliates 1,234 9,132
Realization of cumulative
translation adjustments - 2,770
---------- ----------
Earnings from
continuing operations 105,589 82,757
Net loss from
discontinued operations (3,419) (12,374)
---------- ----------
Net earnings for the year 102,170 70,383
---------- ----------
---------- ----------
Earnings Per Share:
Earnings from continuing operations
Basic $0.75 $0.60
Fully diluted $0.74 $0.59
Net earnings
Basic $0.73 $0.51
Fully diluted $0.72 $0.50
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FOR THE YEARS ENDED AUGUST 31
1996 1995
$000 $000
CASH GENERATED (UTILIZED) BY:
OPERATING ACTIVITIES
Earnings from continuing
operations for the year 105,589 82,757
Items not affecting cash
Amortization 26,086 24,799
Deferred income taxes 4,967 1,316
Interest in earnings of
equity accounted
affiliates (1,234) (9,132)
Minority interest 2,448 1,855
Gain on disposition of
long term investment (680) (1,758)
Realization of cumulative
translation adjustments - (2,770)
---------- ----------
137,176 97,067
Purchase of property
and equipment (13,785) (9,964)
Changes in non-cash
operating accounts 26,136 20,386
---------- ----------
149,527 107,489
Discontinued operations 3,866 (4,814)
---------- ----------
153,393 102,675
---------- ----------
INVESTING ACTIVITIES
Proceeds from disposition of
(investments in)
discontinued operations 3,221 (13,867)
Long term investments (3,689) (51,396)
Proceeds on disposition
of long term investment 21,108 5,740
Acquisition and construction
of broadcast facilities
and licences (84,120) (2,629)
---------- ----------
(63,480) (62,152)
---------- ----------
FINANCING ACTIVITIES
Dividends paid (12,307) (7,166)
Issuance of long term debt 73,233 10,189
Repayment of long term debt (87,349) (37,295)
Issuance of share capital 113,185 668
Net change in bank loans
and advances (4,781) (16,823)
---------- ----------
81,981 (50,427)
---------- ----------
NET INCREASE (DECREASE)
IN CASH 171,894 (9,904)
CASH - BEGINNING OF YEAR 10,286 20,190
---------- ----------
CASH - END OF YEAR 182,180 10,286
---------- ----------
---------- ----------
CASH FLOW PER SHARE
From Continuing Operations
Basic $0.98 $0.70
Fully diluted $0.96 $0.69
CONTACT: 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. John E. Maguire Maguire (Mac Uidhir) is a surname of Irish origin. It may refer to:
204/947-9841 (FAX) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion