Third quarter operating highlights:
- Consolidated adjusted EBITDA1 of
$35,504,000 , a$12,141,000 favourable variance from the same quarter of 2020. $21,538,000 in adjusted EBITDA1 in the Broadcasting segment, a$4,600,000 favourable variance due to the increase in adjusted EBITDA1 at "TVA Sports ," which broadcast the 2019-2020 NHL playoffs in the third quarter of 2020 following the new broadcast schedule necessitated by the pandemic, partially offset by a decrease in adjusted EBITDA1 at TVA Network.$10,565,000 in adjusted EBITDA1 in the Film Production & Audiovisual Services segment ("MELS"), a$7,618,000 favourable variance due to increased profitability of soundstage, mobile and equipment rental activities, partially offset by the weaker performance of dubbing, subtitling and described video, as well as visual effects.$2,048,000 in adjusted EBITDA1 in the Magazines segment, a$951,000 unfavourable variance stemming from a resumption of activities amid reduced government support.$1,243,000 in adjusted EBITDA1 in the Production & Distribution segment ("Incendo"), an$816,000 favourable variance generated primarily by the international distribution of films produced by Incendo.
"We are pleased with the results for the third quarter of our financial year, which reflect growing activity in most of our segments. For the third straight quarter, advertising revenues at TVA Network and our specialty channels were up over the same quarter of last year, but they also rose 22% compared with the same quarter of 2019, which was not affected by the public health crisis. Based on this positive situation, we can continue and increase our investments in content, a strategy that is reflected in our fall programming, with a wealth of new shows, original productions and exclusive content for our digital platforms. TVA+ continues to grow and build on its popularity. Our array of content is broader and more diverse than ever and is available on multiple platforms to reach more Quebecers on a daily basis and bring them together for major television events," said
"With a consolidated market share of 38.2%2 for the third quarter of 2021, our shows are still among the most watched in
In the Film Production & Audiovisual Services segment, our services were in high demand during the quarter, particularly our soundstage and equipment rental activities. The shooting of Paramount Pictures' mega–production Transformers: Rise of the Beast is now over, making way for a major online streaming player that will rent our studios in the coming months. MELS' services are increasingly being recognized and used by international clients, placing us in the enviable position of being able to take advantage of the current market growth and plan our offering with MELS 4. Our virtual stage services continue to draw the attention of producers, with greater numbers using the technology to facilitate shooting certain scenes or for creative advertising. Also, MELS was awarded the prestigious EPIC MegaGrant by EPIC Games to support ongoing development of the services and it was able to acquire its own equipment for virtual stage activities to be used in our studios this fall," continued Mr. Péladeau.
"The Magazines segment reported a decrease in profitability due to the difficult situation in an industry that has been in decline for a number of years, which was exacerbated by the reduced government support. Grants from the Canada Periodicals Fund's regular program have decreased considerably due to program modifications. However, we welcome Heritage Canada's announcement this quarter confirming the extension of the enhanced grant until
Our Production & Distribution activities continued with the completion of nine new romantic comedies that will be ready for distribution in the next few months, particularly international distribution, thus maintaining the growth of this segment. The growing popularity of streaming platforms also enabled the segment to increase its presence on this type of platform and to improve its profitability. Sales growth at Incendo continues to help diversify our revenue streams and expand our presence in English-language markets.
In closing, although the quarterly results are encouraging and indicate the Corporation is gradually recovering from the impacts of the public health crisis, the economic situation remains fragile and we continue to exercise caution in managing our activities. I want to thank our employees for their outstanding work and for helping us every day to fulfill our mission to inform and entertain Quebecers," concluded
Senior management
On
"I had the privilege of working with France for 20 years. At every stage of her career, she always impressed me with her devotion to the company's success. Since joining
Update on the COVID-19 situation
Third quarter results must be viewed in the context of the COVID-19 pandemic, which had major consequences for the economic environment in
It is possible that the financial impacts of this crisis will continue to be felt in the coming quarters, including:
- significant variability in our revenues and content costs related to live broadcasts of sporting events organized by professional leagues as they resume their activities while cancelling some events and making significant changes to formats and broadcast schedules;
- reduction in advertising revenues in markets or sectors still affected by the public health crisis, which will inevitably affect the Broadcasting and Magazines segments;
- variance in the level of activity at MELS and in the Production & Distribution segment resulting from the stoppage or a slow and complex resumption of our content production and distribution activities due to factors such as the need to comply with health precautions and physical distancing rules on the set, the closing of borders with some countries, and production insurance challenges.
- possible reduction in the publication frequency of some periodicals, which would affect revenues in the Magazines segment.
Because of the decrease in their revenues, some of the entities in the Corporation's various business segments qualified for the
Given the uncertainty about the future evolution of the pandemic, including a possible new wave, we cannot determine the full impact of the crisis with certainty. We believe that our current sound financial health, our strong balance sheet and the steps we have taken will enable us to continue to deliver positive cash flows.
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 and share of income of associated corporations. 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 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, including COVID-19, as well as any emergency measures implemented 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.sedar.com 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 dated
____________________________ |
1 See definition of adjusted EBITDA below. |
2 Source: Numeris – Quebec Franco, |
3 Source: Numeris – Quebec Franco, |
4 Source: Vividata, Fall 2021, Total Canada, 14+, |
Consolidated statements of income
(unaudited)
(in thousands of Canadian dollars, except per-share amounts)
Three-month periods | Nine-month periods | ||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Revenues | 2 | $ | 150,703 | $ | 119,537 | $ | 450,933 | $ | 360,526 |
Purchases of goods and services | 3 | 81,703 | 76,167 | 294,874 | 249,723 | ||||
Employee costs | 3 | 33,496 | 20,007 | 104,454 | 71,567 | ||||
Depreciation and amortization | 8,136 | 8,124 | 24,338 | 25,126 | |||||
Financial expenses | 4 | 649 | 634 | 2,055 | 1,969 | ||||
Operational restructuring costs and other | 5 | 20 | 2,734 | 182 | 4,838 | ||||
Income before income taxes and share of loss (income) of associates | 26,699 | 11,871 | 25,030 | 7,303 | |||||
Income taxes | 7,587 | 3,443 | 7,181 | 2,750 | |||||
Share of loss (income) of associates | 111 | 21 | (552) | (405) | |||||
Net income | $ | 19,001 | $ | 8,407 | $ | 18,401 | $ | 4,958 | |
Net income (loss) attributable to: | |||||||||
Shareholders | $ | 19,010 | $ | 8,404 | $ | 18,409 | $ | 4,937 | |
Non-controlling interest | (9) | 3 | (8) | 21 | |||||
Basic earnings per share attributable to shareholders | $ | 0.44 | $ | 0.19 | $ | 0.43 | $ | 0.11 | |
Diluted earnings per share attributable to shareholders | 0.44 | 0.19 | 0.42 | 0.11 | |||||
Weighted average number of outstanding shares | 43,205,535 | 43,205,535 | 43,205,535 | 43,205,535 | |||||
Weighted average number of diluted shares | 43,466,447 | 43,205,535 | 43,414,665 | 43,205,535 |
See accompanying notes to condensed consolidated financial statements.
Consolidated statements of comprehensive income (loss)
(unaudited)
(in thousands of Canadian dollars)
Three-month periods | Nine-month periods | ||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Net income | $ | 19,001 | $ | 8,407 | $ | 18,401 | $ | 4,958 | |
Other comprehensive income (loss) items that will not be reclassified to income: | |||||||||
Defined benefit plans: | |||||||||
Re-measurement gain (loss) | 8 | 8,500 | (5,000) | 44,500 | (20,000) | ||||
Deferred income taxes | (2,200) | 1,325 | (11,800) | 5,325 | |||||
6,300 | (3,675) | 32,700 | (14,675) | ||||||
Comprehensive income (loss) | $ | 25,301 | $ | 4,732 | $ | 51,101 | $ | (9,717) | |
Comprehensive income (loss) attributable to: | |||||||||
Shareholders | $ | 25,310 | $ | 4,729 | $ | 51,109 | $ | (9,738) | |
Non-controlling interest | (9) | 3 | (8) | 21 |
See accompanying notes to condensed consolidated financial statements.
Consolidated statements of equity
(unaudited)
(in thousands of Canadian dollars)
Equity attributable to shareholders | Equity attributable to non-controlling interest | Total | ||||||||||
Capital | Contributed surplus | Retained earnings | Accumula-ted other comprehen-sive income (loss) – Defined benefit plans | |||||||||
Balance as at | $ | 207,280 | $ | 581 | $ | 75,858 | $ | 5,274 | $ | 1,196 | $ | 290,189 |
Net income | – | – | 4,937 | – | 21 | 4,958 | ||||||
Other comprehensive loss | – | – | – | (14,675) | – | (14,675) | ||||||
Balance as at | 207,280 | 581 | 80,795 | (9,401) | 1,217 | 280,472 | ||||||
Net income | – | – | 27,380 | – | 3 | 27,383 | ||||||
Other comprehensive income | – | – | – | 4,764 | – | 4,764 | ||||||
Balance as at | 207,280 | 581 | 108,175 | (4,637) | 1,220 | 312,619 | ||||||
Net income (loss) | – | – | 18,409 | – | (8) | 18,401 | ||||||
Other comprehensive income | – | – | – | 32,700 | – | 32,700 | ||||||
Balance as at | $ | 207,280 | $ | 581 | $ | 126,584 | $ | 28,063 | $ | 1,212 | $ | 363,720 |
See accompanying notes to condensed consolidated financial statements.
Consolidated balance sheets
(unaudited)
(in thousands of Canadian dollars)
|
| |||
Assets | ||||
Current assets | ||||
Cash | $ | 2,513 | $ | 2,838 |
Accounts receivable | 155,432 | 137,177 | ||
Tax credits and government assistance receivable | 10,934 | 16,883 | ||
Income taxes | 4,023 | 1,391 | ||
Audiovisual content | 107,401 | 112,982 | ||
Prepaid expenses | 5,676 | 3,217 | ||
285,979 | 274,488 | |||
Non-current assets | ||||
Audiovisual content | 91,613 | 57,245 | ||
Property, plant and equipment | 157,761 | 165,247 | ||
Right-of-use assets | 9,599 | 10,326 | ||
Intangible assets | 20,901 | 25,028 | ||
21,696 | 21,696 | |||
Deferred income taxes | 10,107 | 23,923 | ||
Other assets | 28,256 | 11,238 | ||
339,933 | 314,703 | |||
Total assets | $ | 625,912 | $ | 589,191 |
Consolidated balance sheets (continued)
(unaudited)
(in thousands of Canadian dollars)
Note |
|
| |||
Liabilities and equity | |||||
Current liabilities | |||||
Bank overdraft | $ | 5,587 | $ | 1,699 | |
Accounts payable, accrued liabilities and provisions | 112,002 | 106,066 | |||
Content rights payable | 71,767 | 62,252 | |||
Deferred revenues | 14,690 | 14,077 | |||
Income taxes | 762 | 8,415 | |||
Current portion of lease liabilities | 2,725 | 3,001 | |||
Short-term debt | 33,808 | 27,117 | |||
241,341 | 222,627 | ||||
Non-current liabilities | |||||
Lease liabilities | 8,226 | 9,148 | |||
Other liabilities | 9,043 | 38,223 | |||
Deferred income taxes | 3,582 | 6,574 | |||
20,851 | 53,945 | ||||
Equity | |||||
Capital stock | 6 | 207,280 | 207,280 | ||
Contributed surplus | 581 | 581 | |||
Retained earnings | 126,584 | 108,175 | |||
Accumulated other comprehensive income (loss) | 28,063 | (4,637) | |||
Equity attributable to shareholders | 362,508 | 311,399 | |||
Non-controlling interest | 1,212 | 1,220 | |||
363,720 | 312,619 | ||||
Contingencies | 10 | ||||
Total liabilities and equity | $ | 625,912 | $ | 589,191 |
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 | 2021 | 2020 | 2021 | 2020 | |||||
Cash flows related to operating activities | |||||||||
Net income | $ | 19,001 | $ | 8,407 | $ | 18,401 | $ | 4,958 | |
Adjustments for: | |||||||||
Depreciation and amortization | 8,136 | 8,124 | 24,338 | 25,126 | |||||
Share of loss (income) of associates | 111 | 21 | (552) | (405) | |||||
Deferred income taxes | (295) | (303) | (976) | (2,120) | |||||
Gain on disposal of an asset | 5 | – | – | – | (253) | ||||
Other | 13 | 13 | (55) | (12) | |||||
26,966 | 16,262 | 41,156 | 27,294 | ||||||
Net change in non-cash balances related to operating activities | (5,376) | (37,587) | (35,976) | (4,498) | |||||
Cash flows provided by (used in) operating activities | 21,590 | (21,325) | 5,180 | 22,796 | |||||
Cash flows related to investing activities | |||||||||
Additions to property, plant and equipment | (4,488) | (2,458) | (11,224) | (9,246) | |||||
Additions to intangible assets | (346) | (549) | (1,847) | (2,070) | |||||
Business acquisitions | 5 | – | – | (606) | – | ||||
Other | 271 | 271 | 271 | 672 | |||||
Cash flows used in investing activities | (4,563) | (2,736) | (13,406) | (10,644) | |||||
Cash flows related to financing activities | |||||||||
Net change in bank overdraft | 43 | (258) | 3,888 | 5,616 | |||||
Net change in revolving credit facility | (16,130) | 25,252 | 6,705 | (15,614) | |||||
Repayment of lease liabilities | (786) | 836 | (2,514) | (2,559) | |||||
Other | (125) | – | (178) | (53) | |||||
Cash flows (used in) provided by financing activities | (16,998) | 24,158 | 7,901 | (12,610) | |||||
Net change in cash | 29 | 97 | (325) | (458) | |||||
Cash at beginning of period | 2,484 | 2,828 | 2,838 | 3,383 | |||||
Cash at end of period | $ | 2,513 | $ | 2,925 | $ | 2,513 | $ | 2,925 | |
Interest and taxes reflected as operating activities | |||||||||
Cash interest payments | $ | 381 | $ | 268 | $ | 1,133 | $ | 1,279 | |
Cash income tax payments (net of refunds) | 5,150 | 2,310 | 18,257 | 5,383 |
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.
The COVID-19 pandemic has had a significant impact on the economic environment in
Accordingly, 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 | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Advertising services | $ | 58,998 | $ | 50,563 | $ | 203,594 | $ | 155,408 |
Royalties | 36,045 | 34,411 | 106,123 | 105,441 | ||||
Rental, postproduction and distribution services and other services rendered(1) | 39,560 | 17,256 | 93,453 | 52,415 | ||||
Product sales(2) | 16,100 | 17,307 | 47,763 | 47,262 | ||||
$ | 150,703 | $ | 119,537 | $ | 450,933 | $ | 360,526 |
(1) | Revenues 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 and employee costs
Three-month periods | Nine-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Purchases of goods and services: | ||||||||
Rights and audiovisual content costs(1) | $ | 57,512 | $ | 51,379 | $ | 218,125 | $ | 176,757 |
Printing and distribution | 3,990 | 4,112 | 11,178 | 10,774 | ||||
Services rendered by the parent corporation: | ||||||||
- Commissions on advertising sales | 4,867 | 5,172 | 18,430 | 16,080 | ||||
- Other | 1,962 | 1,876 | 6,357 | 6,374 | ||||
Building costs | 3,952 | 3,949 | 12,135 | 11,693 | ||||
Marketing, advertising and promotion | 3,543 | 4,298 | 11,742 | 9,736 | ||||
Other | 5,877 | 5,381 | 16,907 | 18,309 | ||||
81,703 | 76,167 | 294,874 | 249,723 | |||||
Employee costs(2) | 33,496 | 20,007 | 104,454 | 71,567 | ||||
$ | 115,199 | $ | 96,174 | $ | 399,328 | $ | 321,290 |
(1) | In 2021, the Corporation reviewed the allocation of the value of the rights attached to the various components of its contract for |
Consequently, the cost of NHL rights decreased by | |
(2) | For the nine-month period 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)
4. Financial expenses
Three-month periods | Nine-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Interest on debt | $ | 228 | $ | 145 | $ | 614 | $ | 760 |
Amortization of financing costs | 13 | 13 | 39 | 48 | ||||
Interest on lease liabilities | 144 | 175 | 424 | 457 | ||||
Interest expense related to defined-benefit plans | 189 | 77 | 571 | 239 | ||||
Foreign exchange (gain) loss | (12) | 104 | 113 | 128 | ||||
Other | 87 | 120 | 294 | 337 | ||||
$ | 649 | $ | 634 | $ | 2,055 | $ | 1,969 |
5. Operational restructuring costs and other
Three-month periods | Nine-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Operational restructuring costs | $ | 16 | $ | 903 | $ | 394 | $ | 3,153 |
Other | 4 | 1,831 | (212) | 1,685 | ||||
$ | 20 | $ | 2,734 | $ | 182 | $ | 4,838 |
Operational restructuring costs
For the three-month and nine-month periods ended
Three-month periods | Nine-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Broadcasting | $ | 68 | $ | 433 | $ | 729 | $ | 1,872 |
Film Production & Audiovisual Services | – | 368 | 7 | 1,050 | ||||
Magazines | (52) | 102 | (342) | 231 | ||||
$ | 16 | $ | 903 | $ | 394 | $ | 3,153 |
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 (continued)
Other
During the first nine months of 2021, the Corporation reversed a
In the first nine months of 2021, the Corporation also recorded a
6. 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)
7. Stock-based compensation and other stock-based payments
(a) Stock option plans
Outstanding options | ||||
Number | Weighted average | |||
As at | 795,000 | $ | 2.06 | |
Cancelled | (105,497) | 2.43 | ||
As at | 689,503 | $ | 2.00 | |
Vested options as at | 25,000 | $ | 6.85 | |
As at | 7,800 | $ | 70.29 | |
Exercised | (7,800) | 70.29 | ||
As at | – | $ | – | |
Quebecor | ||||
As at | 590,795 | $ | 30.30 | |
Cancelled | (77,343) | 29.22 | ||
As at | 513,452 | $ | 30.47 | |
Vested options as at | – | $ | – | |
During the three-month period ended
During the nine-month period 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)
7. Stock-based compensation and other stock-based payments (continued)
(b) Deferred stock unit ("DSU") plans
The following table shows changes in outstanding DSUs during the nine-month period ended
Outstanding units | ||||
Corporation stock units | Quebecor stock units | |||
Balance as at | 156,564 | 25,472 | ||
Granted | – | 451 | ||
Redeemed | (18,122) | (3,747) | ||
Cancelled | (21,036) | (4,425) | ||
Balance as at | 117,406 | 17,751 |
During the nine-month period 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)
7. Stock-based compensation and other stock-based payments (continued)
(c) Deferred stock unit ("DSU") plan for directors
Outstanding units | |
Corporation stock units | |
Balance as at | 357,798 |
Granted | 48,544 |
Redeemed | (36,413) |
Balance as at | 369,929 |
During the three-month and nine-month periods ended
(d) Stock-based compensation expense
During the three-month and nine-month periods ended
8. Pension plans and post-retirement benefits
The gain on remeasurement of defined benefit plans recognized on the consolidated statement of comprehensive income (loss) 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)
9. 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 notably through its Communications Qolab inc. subsidiary (formerly COLAB Studio Marketing Collaboratif inc.);
- The Film Production & Audiovisual Services segment, which through its subsidiaries Mels Studios and Postproduction 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 visual effects;
- The Magazines segment, which through its subsidiaries, notably TVA Publications inc. and Les Publications Charron & Cie inc., 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 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)
9. Segmented information (continued)
Three-month periods | Nine-month periods | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Revenues | ||||||||
Broadcasting | $ | 111,934 | $ | 97,400 | $ | 356,846 | $ | 292,228 |
Film Production & Audiovisual Services | 28,070 | 11,856 | 64,036 | 37,298 | ||||
Magazines | 11,630 | 12,569 | 33,645 | 32,899 | ||||
Production & Distribution | 4,133 | 1,884 | 11,755 | 9,506 | ||||
Intersegment items | (5,064) | (4,172) | (15,349) | (11,405) | ||||
150,703 | 119,537 | 450,933 | 360,526 | |||||
Adjusted EBITDA(1) | ||||||||
Broadcasting | 21,538 | 16,938 | 24,698 | 24,237 | ||||
Film Production & Audiovisual Services | 10,565 | 2,947 | 18,106 | 6,626 | ||||
Magazines | 2,048 | 2,999 | 5,569 | 6,553 | ||||
Production & Distribution | 1,243 | 427 | 2,974 | 1,522 | ||||
Intersegment items | 110 | 52 | 258 | 298 | ||||
35,504 | 23,363 | 51,605 | 39,236 | |||||
Depreciation and amortization | 8,136 | 8,124 | 24,338 | 25,126 | ||||
Financial expenses | 649 | 634 | 2,055 | 1,969 | ||||
Operational restructuring costs and other | 20 | 2,734 | 182 | 4,838 | ||||
Income before income taxes and share of loss (income) of associates | $ | 26,699 | $ | 11,871 | $ | 25,030 | $ | 7,303 |
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 and share of income of associates. Adjusted EBITDA as defined above is not a measure of results that is consistent with IFRS. |
10. Contingencies
Lawsuits were brought by and against the Corporation, and against Quebecor and some of its subsidiaries, in connection with business disputes with a cable operator. At this stage in the proceedings, the management of the Corporation does not expect their outcome to have a material adverse effect on the Corporation's results or on its financial position.
SOURCE
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