Operating highlights for the third quarter and first nine months of the year:
$16,485,000 in consolidated adjusted EBITDA1 for the third quarter, a$1,710,000 unfavourable variance compared with the same quarter of 2022, and$11,335,000 in negative adjusted EBITDA1 for the first nine months of the year, a$23,044,000 unfavourable variance from the same period of 2022.$14,456,000 in adjusted EBITDA1 for the third quarter in the Broadcasting segment, a$389,000 favourable variance mainly due to higher adjusted EBITDA1 at Communications Qolab inc. TVA Network's negative adjusted EBITDA1 continued to deteriorate and the specialty channels continued to suffer from the effects of a shrinking advertising market and a reduction in the number of cable subscribers ("cord-cutting").$12,889,000 in negative Adjusted EBITDA1 in the Broadcasting segment for the first nine months of 2023, compared with$1,550,000 in negative adjusted EBITDA1 for the same period of 2022. Last February's restructuring plan enabled the Corporation to achieve some savings, but insufficient to offset the significant drop in revenues, both from traditional advertising and specialty channel subscriptions, or to sustain the required investments in content to maintain our market share and our audience in the face of foreign digital on-demand platforms, among other things.$669,000 in adjusted EBITDA1 in the Film Production & Audiovisual Services segment ("MELS") for the third quarter of 2023, a$1,916,000 unfavourable variance compared with the same quarter of 2022, due mainly to lower activity volume in soundstage, mobile and equipment rental, postproduction and media accessibility services, partially offset by the positive impact of the discontinuation of visual effects activities. For the first nine months of 2023, MELS posted$299,000 in negative adjusted EBITDA,1 compared with$8,601,000 in adjusted EBITDA1 for the same period of 2022, an unfavourable variance explained by the same factors as for the quarter.$1,288,000 in adjusted EBITDA1 in the Magazines segment for the third quarter, a$66,000 favourable variance compared with the same quarter of 2022, mainly because cost savings were slightly higher than the decrease in revenues, particularly in newsstand and subscription revenues. For the first nine months of the year, adjusted EBITDA1 for the Magazines segment was$1,230,000 , compared with$3,308,000 in adjusted EBITDA1 for the same period of 2022.$146,000 in negative adjusted EBITDA1 in the Production and Distribution segment for the third quarter, a$195,000 unfavourable variance compared with the same quarter of 2022, due mainly to a lower gross margin on the international distribution of films produced by Incendo, as well as lower profitability atTVA Films , partially offset by savings on administrative expenses and a higher gross margin on Canadian distribution for Incendo. For the first nine months of 2023, adjusted EBITDA1 in the Production and Distribution segment was$81,000 , compared with$1,113,000 in adjusted EBITDA1 for the same period of 2022.- During the third quarter of 2023, challenging market conditions and changes in the television industry ecosystem led the Corporation to record a goodwill impairment charge of
$4,813,000 and an impairment charge of$2,850,000 on certain trademarks in the Broadcasting segment.
"Looking at our results over the last few quarters, which show a negative adjusted EBITDA1 of nearly
The crisis in the media industry has affected results more than ever, with competition from web giants and Radio-Canada monopolizing advertising revenues. For too long,
To keep our productions and film studios competitive and viable, when many other jurisdictions in the
In the Magazines segment, results for all our titles were affected by a decline in revenues, offset by cost savings. The significant reduction in government assistance from the
Our Production and Distribution segment suffered a decrease in adjusted EBITDA1 primarily due to the negative impact of strikes on the order book in the
______________________________ |
1 See definition of adjusted EBITDA below. |
Definition
Adjusted EBITDA
In its analysis of operating results, the Corporation defines adjusted EBITDA as net income (loss) before depreciation and amortization, financial expenses, operational restructuring costs and other, income taxes (income tax recovery) and share of (income) loss of associates. Adjusted EBITDA as defined above is not a measure of results that is consistent with International Financial Reporting Standards ("IFRS"). It is not intended to be regarded as an alternative to other financial operating performance measures or to the statement of cash flows as a measure of liquidity. This measure should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. This measure is used by management and the Board of Directors to evaluate the Corporation's consolidated results and the results of its segments. This measure eliminates the significant level of impairment, depreciation and amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of the Corporation and its segments. Adjusted EBITDA is also relevant because it is a significant component of the Corporation's annual incentive compensation programs. The Corporation's definition of adjusted EBITDA may not be identical to similarly titled measures reported by other companies.
Forward-looking information disclaimer
The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the Corporation's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include the possibility that the reorganization plan will not be carried out on schedule or at all, the possibility that the Corporation will be unable to realize the anticipated benefits of the reorganization plan in a timely manner or at all, the possibility of unknown potential liabilities or costs related to the reorganization plan, the possibility that the Corporation will be unable to successfully implement its business strategies, seasonality, operational risks (including pricing actions by competitors and the risk of loss of key customers in the Film Production & Audiovisual Services and Production & Distribution segments), programming, content and production cost risks, credit risk, government regulation risks, government assistance risks, changes in economic conditions, fragmentation of the media landscape, risk related to the Corporation's ability to adapt to fast-paced technological change and to new delivery and storage methods, labour relation risks, and the risks related to public health emergencies, as well as any urgent steps taken by government.
Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause the Corporation's actual results to differ from current expectations please refer to the Corporation's public filings available at www.sedarplus.ca and www.groupetva.ca, including, in particular, the "Risks and Uncertainties" section of the Corporation's annual Management's Discussion and Analysis for the year ended
The forward-looking statements in this news release reflect the Corporation's expectations as of
The Condensed Consolidated Financial Statements as at
Consolidated statements of income (loss)
(unaudited)
(in thousands of Canadian dollars, except per-share amounts)
Three-month periods | Nine-month periods | ||||||||
Note | 2023 | 2022 | 2023 | 2022 | |||||
Revenues | 2 | $ | 118,620 | $ | 130,519 | $ | 393,483 | $ | 422,485 |
Purchases of goods and services | 3 | 72,958 | 78,155 | 305,244 | 300,819 | ||||
Employee costs | 29,177 | 34,169 | 99,574 | 109,957 | |||||
Depreciation and amortization | 6,805 | 7,446 | 20,960 | 22,528 | |||||
Financial expenses | 4 | 947 | 64 | 786 | 658 | ||||
Operational restructuring costs and other | 5 | 7,684 | 49 | 8,706 | 182 | ||||
Income (loss) before income taxes | 1,049 | 10,636 | (41,787) | (11,659) | |||||
Income taxes (income tax recovery) | 1,691 | 2,842 | (9,634) | (2,817) | |||||
Share of (income) loss of associates | (3) | 195 | (134) | (217) | |||||
Net (loss) income | $ | (639) | $ | 7,599 | $ | (32,019) | $ | (8,625) | |
Net (loss) income attributable to: | |||||||||
Shareholders | $ | (639) | $ | 7,623 | $ | (32,019) | $ | (8,605) | |
Non-controlling interest | – | (24) | – | (20) | |||||
Basic and diluted (loss) earnings per | $ | (0.01) | $ | 0.18 | $ | (0.74) | $ | (0.20) | |
Weighted average number of outstanding | 43,205,535 | 43,205,535 | 43,205,535 | 43,205,535 | |||||
Weighted average number of diluted | 43,205,535 | 43,307,990 | 43,205,535 | 43,205,535 |
See accompanying notes to condensed consolidated financial statements. |
Consolidated statements of comprehensive (loss) income
(unaudited)
(in thousands of Canadian dollars)
Three-month periods | Nine-month periods | ||||||||
Note | 2023 | 2022 | 2023 | 2022 | |||||
Net (loss) income | $ | (639) | $ | 7,599 | $ | (32,019) | $ | (8,625) | |
Other comprehensive income items that will | |||||||||
Defined benefit plans: | |||||||||
Re-measurement gain | 9 | – | 1,000 | – | 30,000 | ||||
Deferred income taxes | – | (300) | – | (8,000) | |||||
– | 700 | – | 22,000 | ||||||
Comprehensive (loss) income | $ | (639) | $ | 8,299 | $ | (32,019) | $ | 13,375 | |
Comprehensive (loss) income | |||||||||
Shareholders | $ | (639) | $ | 8,323 | $ | (32,019) | $ | 13,395 | |
Non-controlling interest | – | (24) | – | (20) |
See accompanying notes to condensed consolidated financial statements. |
Consolidated statements of equity
(unaudited)
(in thousands of Canadian dollars)
Equity attributable to shareholders | Equity | Total | ||||||||||
Capital | Contributed | Retained | Accumula- | |||||||||
Balance as at | $ | 207,280 | $ | 581 | $ | 138,679 | $ | 32,714 | $ | 1,210 | $ | 380,464 |
Net loss | – | – | (8,605) | – | (20) | (8,625) | ||||||
Dividends | – | – | – | – | (1,190) | (1,190) | ||||||
Other comprehensive income | – | – | – | 22,000 | – | 22,000 | ||||||
Balance as at | 207,280 | 581 | 130,074 | 54,714 | – | 392,649 | ||||||
Net loss | – | – | (264) | – | – | (264) | ||||||
Other comprehensive income | – | – | – | 991 | – | 991 | ||||||
Balance as at | 207,280 | 581 | 129,810 | 55,705 | – | 393,376 | ||||||
Net loss | – | – | (32,019) | – | – | (32,019) | ||||||
Balance as at | $ | 207,280 | $ | 581 | $ | 97,791 | $ | 55,705 | $ | – | $ | 361,357 |
See accompanying notes to condensed consolidated financial statements. |
Consolidated balance sheets
(unaudited)
(in thousands of Canadian dollars)
Note |
|
| ||||
Assets | ||||||
Current assets | ||||||
Accounts receivable | $ | 137,797 | $ | 175,174 | ||
Income taxes | 18,535 | 8,522 | ||||
Audiovisual content | 121,455 | 135,038 | ||||
Prepaid expenses | 6,187 | 4,400 | ||||
283,974 | 323,134 | |||||
Non-current assets | ||||||
Audiovisual content | 90,838 | 88,225 | ||||
Investments | 11,880 | 12,017 | ||||
Property, plant and equipment | 144,093 | 157,784 | ||||
Right-of-use assets | 7,037 | 7,599 | ||||
Intangible assets | 5 | 10,006 | 14,671 | |||
5 | 16,883 | 21,696 | ||||
Defined benefit plan asset | 43,562 | 45,111 | ||||
Deferred income taxes | 6,136 | 5,833 | ||||
330,435 | 352,936 | |||||
Total assets | $ | 614,409 | $ | 676,070 |
Consolidated balance sheets (continued)
(unaudited)
(in thousands of Canadian dollars)
Note |
|
| ||||
Liabilities and equity | ||||||
Current liabilities | ||||||
Bank indebtedness | 6 | $ | 14,004 | $ | 1,107 | |
Accounts payable, accrued liabilities and provisions | 95,858 | 114,174 | ||||
Content rights payable | 44,355 | 124,394 | ||||
Deferred revenues | 10,958 | 11,031 | ||||
Income taxes | 778 | 562 | ||||
Current portion of lease liabilities | 1,868 | 2,318 | ||||
Short-term debt | 6 | – | 8,961 | |||
167,821 | 262,547 | |||||
Non-current liabilities | ||||||
Long-term debt | 6 | 68,868 | – | |||
Lease liabilities | 6,046 | 6,453 | ||||
Other liabilities | 4,684 | 5,395 | ||||
Deferred income taxes | 5,633 | 8,299 | ||||
85,231 | 20,147 | |||||
Equity | ||||||
Capital stock | 7 | 207,280 | 207,280 | |||
Contributed surplus | 581 | 581 | ||||
Retained earnings | 97,791 | 129,810 | ||||
Accumulated other comprehensive income | 55,705 | 55,705 | ||||
Equity | 361,357 | 393,376 | ||||
Total liabilities and equity | $ | 614,409 | $ | 676,070 |
See accompanying notes to condensed consolidated financial statements. |
Consolidated statements of cash flows
(unaudited)
(in thousands of Canadian dollars)
Three-month periods | Nine-month periods | ||||||||
Note | 2023 | 2022 | 2023 | 2022 | |||||
Cash flows related to operating activities | |||||||||
Net (loss) income | $ | (639) | $ | 7,599 | $ | (32,019) | $ | (8,625) | |
Adjustments for: | |||||||||
Depreciation and amortization | 6,805 | 7,446 | 20,960 | 22,528 | |||||
Share of (income) loss of associates | (3) | 195 | (134) | (217) | |||||
Deferred income taxes | (819) | (2,004) | (2,969) | (3,543) | |||||
Impairment of assets and other | 5 | 7,696 | 13 | 7,752 | 661 | ||||
13,040 | 13,249 | (6,410) | 10,804 | ||||||
Net change in non-cash balances related | 6,372 | (15,073) | (61,731) | (19,907) | |||||
Cash flows provided by (used in) operating | 19,412 | (1,824) | (68,141) | (9,103) | |||||
Cash flows related to investing activities | |||||||||
Additions to property, plant and equipment | (996) | (3,939) | (2,873) | (16,247) | |||||
Additions to intangible assets | (46) | (87) | (225) | (815) | |||||
Business acquisitions | 5 | – | (2,573) | – | (6,323) | ||||
Dividends to non-controlling shareholders | – | (1,150) | – | (1,150) | |||||
Other | 271 | 271 | 271 | 271 | |||||
Cash flows used in investing activities | (771) | (7,478) | (2,827) | (24,264) | |||||
Cash flows related to financing activities | |||||||||
Net change in bank indebtedness | 3,873 | 5,624 | 12,897 | 8,620 | |||||
Net change in revolving credit facility | 6 | – | 1,835 | (8,970) | 21,710 | ||||
Net change in long-term debt | 6 | (22,000) | – | 69,000 | – | ||||
Repayment of lease liabilities | (514) | (580) | (1,892) | (2,091) | |||||
Other | – | – | (67) | (53) | |||||
Cash flows (used in) provided by financing | (18,641) | 6,879 | 70,968 | 28,186 | |||||
Net change in cash | – | (2,423) | – | (5,181) | |||||
Cash at beginning of period | – | 2,423 | – | 5,181 | |||||
Cash at end of period | $ | – | $ | – | $ | – | $ | – | |
Interest and taxes reflected as operating | |||||||||
Net interest paid | $ | 1,442 | $ | 450 | $ | 1,998 | $ | 1,038 | |
Income taxes paid (received) | 585 | (1,975) | 3,132 | 3,748 |
See accompanying notes to condensed consolidated financial statements. |
Notes to condensed consolidated financial statements
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
The Corporation's businesses experience significant seasonality due to, among other factors, seasonal advertising patterns, consumers' viewing, reading and listening habits, demand for production services from international and local producers, and demand for content from global broadcasters. Because the Corporation depends on the sale of advertising for a significant portion of its revenues, operating results are also sensitive to prevailing economic conditions, including changes in local, regional and national economic conditions, particularly as they may affect advertising spending. In view of the seasonal nature of some of the Corporation's activities, the results of operations for interim periods should not necessarily be considered indicative of full-year results.
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
1. Basis of presentation
These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the
These condensed consolidated financial statements were approved by the Corporation's Board of Directors on
Certain comparative figures for the three-month and nine-month periods ended
2. Revenues
Three-month periods | Nine-month periods | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Advertising services | $ | 50,098 | $ | 50,472 | $ | 185,891 | $ | 189,527 |
Royalties | 32,705 | 33,391 | 99,319 | 101,778 | ||||
Rental, postproduction and distribution services | 20,003 | 32,709 | 63,215 | 88,434 | ||||
Product sales(2) | 15,814 | 13,947 | 45,058 | 42,746 | ||||
$ | 118,620 | $ | 130,519 | $ | 393,483 | $ | 422,485 |
(1) | Revenue from rental of soundstages, mobiles, equipment and rental space amounted to |
(2) | Revenues from product sales include newsstand and subscription sales of magazines and sales of audiovisual content. |
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
3. Purchases of goods and services
Three-month periods | Nine-month periods | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Rights and audiovisual content costs | $ | 50,436 | $ | 53,787 | $ | 228,739 | $ | 222,491 |
Printing and distribution | 3,315 | 3,385 | 10,281 | 10,090 | ||||
Services rendered by the parent corporation: | ||||||||
• Commissions on advertising sales | 4,054 | 4,536 | 16,159 | 17,674 | ||||
• Other | 2,273 | 2,381 | 6,999 | 6,845 | ||||
Building costs | 4,002 | 3,786 | 12,632 | 12,247 | ||||
Marketing, advertising and promotion | 3,484 | 3,692 | 11,512 | 11,988 | ||||
Other | 5,394 | 6,588 | 18,922 | 19,484 | ||||
$ | 72,958 | $ | 78,155 | $ | 305,244 | $ | 300,819 |
4. Financial expenses
Three-month periods | Nine-month periods | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Interest on debt(1) | $ | 1,612 | $ | 384 | $ | 2,121 | $ | 764 |
Amortization of financing costs | 33 | 13 | 95 | 39 | ||||
Interest on lease liabilities | 96 | 109 | 295 | 340 | ||||
Interest income related to defined benefit plans | (516) | (115) | (1,535) | (341) | ||||
Foreign exchange (gain) loss | (142) | (285) | 132 | (190) | ||||
Other | (136) | (42) | (322) | 46 | ||||
$ | 947 | $ | 64 | $ | 786 | $ | 658 |
(1) | For the three-month and nine-month periods ended |
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
5. Operational restructuring costs and other
Three-month periods | Nine-month periods | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Operational restructuring costs | $ | 21 | $ | 49 | $ | 1,086 | $ | 164 |
Impairment of assets | 7,663 | – | 7,663 | – | ||||
Other | – | – | (43) | 18 | ||||
$ | 7,684 | $ | 49 | $ | 8,706 | $ | 182 |
Operational restructuring costs
For the three-month and nine-month periods ended
Three-month periods | Nine-month periods | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Broadcasting | $ | 10 | $ | – | $ | 729 | $ | 102 |
Film Production & Audiovisual Services | 11 | 49 | 214 | 49 | ||||
Magazines | – | – | 111 | 13 | ||||
Production & Distribution | – | – | 32 | – | ||||
$ | 21 | $ | 49 | $ | 1,086 | $ | 164 |
Impairment of assets
During the third quarter of 2023, unfavourable market conditions and the changing ecosystem of the television industry led the Corporation to perform an impairment test on its Broadcasting cash-generating unit. The Corporation concluded that the recoverable amount, based on fair value less costs of disposal, was less than its carrying amount. Accordingly, a
Other
In the second quarter of 2022, the Corporation had recorded a
During the same period, the Corporation had reversed a
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
6. Long-term debt
The components of long-term debt are as follows:
2023 | 2022 | |||||
Revolving credit facility - Quebecor | $ | 69,000 | $ | – | ||
Syndicated revolving credit facility | – | 8,970 | ||||
Financing costs, net of accumulated amortization | (132) | (9) | ||||
68,868 | 8,961 | |||||
Less the current portion | – | (8,961) | ||||
$ | 68,868 | $ | – |
On
Also on
Concurrently, on
The two new credit facilities contain standard representations and warranties for this type of agreement.
As at
As at
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
7. Capital stock
(a) Authorized capital stock
An unlimited number of Class A common shares, participating, voting, without par value.
An unlimited number of Class B shares, participating, non-voting, without par value.
An unlimited number of preferred shares, non-participating, non-voting, with a par value of
(b) Issued and outstanding capital stock
|
| |||||
4,320,000 Class A common shares | $ | 72 | $ | 72 | ||
38,885,535 Class B shares | 207,208 | 207,208 | ||||
$ | 207,280 | $ | 207,280 |
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
8. Stock-based compensation and other stock-based payments
(a) Stock option plans
Outstanding options | ||||
Number | Weighted average | |||
Balance as at | 519,503 | $ | 2.29 | |
Granted | 125,000 | 2.03 | ||
Exercised | (6,666) | 1.40 | ||
Cancelled | (217,397) | 1.95 | ||
Balance as at | 420,440 | $ | 2.40 | |
Vested options as at | 144,025 | $ | 2.81 | |
Quebecor | ||||
Balance as at | 244,216 | $ | 30.36 | |
Granted | 135,000 | 33.28 | ||
Exercised | (21,583) | 28.46 | ||
Cancelled | (234,035) | 31.86 | ||
Balance as at | 123,598 | $ | 31.04 | |
Vested options as at | 48,573 | $ | 30.47 | |
(b) Deferred stock unit ("DSU") plan for directors
Outstanding units | ||||
Corporation stock units | ||||
Balance as at | 446,934 | |||
Granted | 53,115 | |||
Balance as at | 500,049 |
(c) Stock-based compensation expense
During the three-month and nine-month periods ended
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
9. Pension plans and postretirement benefits
The gain on remeasurement for defined benefit plans recognized on the consolidated statement of comprehensive income resulted from the increase in the fair value of pension plan assets for the three-month period ended
10. Segmented information
The Corporation's operations consist of the following segments:
- The Broadcasting segment, which includes the operations of TVA Network, specialty services, the marketing of digital products associated with the various televisual brands, and commercial production and custom publishing services, including those of its Communications Qolab inc. subsidiary;
- The Film Production & Audiovisual Services segment, which through its subsidiaries
Mels Studios andPostproduction G.P. and MELS Dubbing Inc. provides soundstage, mobile and production equipment rental services, as well as dubbing and described video ("media accessibility services"), postproduction and virtual production services; - The Magazines segment, which through its
TVA Publications inc. subsidiary publishes magazines in various fields including the arts, entertainment, television, fashion and decorating, and markets digital products associated with the various magazine brands; - The Production & Distribution segment, which through the companies in the Incendo group and the
TVA Films division produces and distributes television shows, movies and television series for the world market.
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
(Tabular amounts are expressed in thousands of Canadian dollars, except per share and per option amounts)
10. Segmented information (continued)
Three-month periods | Nine-month periods | |||||||
2023 | 2022 | 2023 | 2022 | |||||
Revenues | ||||||||
Broadcasting | $ | 98,317 | $ | 104,601 | $ | 330,167 | $ | 340,908 |
Film Production & Audiovisual Services | 12,519 | 17,304 | 39,030 | 54,989 | ||||
Magazines | 9,342 | 9,945 | 27,351 | 29,980 | ||||
Production & Distribution | 2,550 | 3,279 | 10,773 | 11,715 | ||||
Intersegment items | (4,108) | (4,610) | (13,838) | (15,107) | ||||
118,620 | 130,519 | 393,483 | 422,485 | |||||
Adjusted EBITDA (negative adjusted EBITDA)(1) | ||||||||
Broadcasting | 14,456 | 14,067 | (12,889) | (1,550) | ||||
Film Production & Audiovisual Services | 669 | 2,585 | (299) | 8,601 | ||||
Magazines | 1,288 | 1,222 | 1,230 | 3,308 | ||||
Production & Distribution | (146) | 49 | 81 | 1,113 | ||||
Intersegment items | 218 | 272 | 542 | 237 | ||||
16,485 | 18,195 | (11,335) | 11,709 | |||||
Depreciation and amortization | 6,805 | 7,446 | 20,960 | 22,528 | ||||
Financial expenses | 947 | 64 | 786 | 658 | ||||
Operational restructuring costs and other | 7,684 | 49 | 8,706 | 182 | ||||
Income (loss) before income taxes (income tax | $ | 1,049 | $ | 10,636 | $ | (41,787) | $ | (11,659) |
The above-noted intersegment items represent the elimination of normal course business transactions between the Corporation's business segments.
(1) | The Chief Executive Officer uses adjusted EBITDA as a measure of financial performance for assessing the performance of each of the Corporation's segments. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization, financial expenses, operational restructuring costs and other, income taxes (income tax recovery) and share of (income) loss of associates. Adjusted EBITDA as defined above is not a measure of results that is consistent with IFRS. |
Notes to condensed consolidated financial statements (continued)
Three-month and nine-month periods ended
11. Subsequent event
On
SOURCE
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