TVA Group Reports $4.4 Million Net Loss Attributable to Shareholders in Fourth Quarter Ended December 31, 2014
(firmenpresse) - MONTREAL, CANADA -- (Marketwired) -- 02/27/15 -- TVA Group Inc. (the "Corporation") (TSX: TVA.B) announces that it recorded a net loss attributable to shareholders in the amount of $4.4 million, or $0.19 per share, for the fourth quarter of 2014, compared with net income attributable to shareholders of $8.3 million, or $0.35 per share, in the same quarter of 2013.
Fourth quarter operating highlights:
(1) See definition of adjusted operating income (loss) below.
"While the Broadcasting & Production segment''s advertising revenues fell short of our expectations in the fourth quarter of 2014, we are very pleased with the audience response to our new sports offering, which yielded a market share of nearly 2.0% for TVA Sports and TVA Sports 2, compared with 0.4% in the same quarter of 2013," commented Julie Tremblay, President and CEO of the Corporation. "Naturally, the addition of extensive NHL coverage entailed significant investments in sports content, particularly in connection with the launch of TVA Sports 2, in September, 2014 and we are reaping the dividends at every level. For example, our advertisers have responded very positively and TVA Sports'' advertising revenues were up by several million dollars in the last quarter of 2014 compared with the same quarter of 2013. New contracts for carriage of TVA Sports and TVA Sports 2 generated a 62% overall increase in subscription revenues for our specialty services compared with the same quarter of 2013," also commented Julie Tremblay.
"The Magazines segment put in a strong financial performance. Its operating margin was 11.4% of total revenues. A 3.3% reduction in the segment''s operating expenses enabled it to largely absorb a 4.2% quarter-over-quarter drop in its operating revenues. We are also very pleased with the agreement with Transcontinental. The transaction will add 15 prestigious titles to our stable and will position the Corporation to offer its advertisers a portfolio of complementary and diverse magazines, expand its online assets and enable it to compete more effectively with major media groups and digital rivals. We are awaiting Competition Bureau approval of the deal," concluded Julie Tremblay.
Cash flows provided by operating activities totalled $9.5 million for the quarter, compared with $5.1 million in the same quarter of 2013. The $4.4 million increase was essentially due to the favourable variance in non-cash items, particularly accounts payable, rights and accrued liabilities, which was partially offset by the decrease in adjusted operating income.
2014 results
For the fiscal year ended December 31, 2014, the Corporation''s consolidated adjusted operating income was $29.4 million, compared with $60.6 million in the previous year, a 51.4% decrease. Adjusted operating income decreased by 62.8% in the Broadcasting & Production segment and increased by 28.5% in the Magazines segment. The increase in the Magazines segment was due in part to the positive impact of the inclusion of the operating results of La Semaine magazine since July 18, 2013, the decrease in operating expenses at the other magazines, and the impact of savings generated by the expense reduction plan instituted in the second quarter of 2013. The decrease in the Broadcasting & Production segment''s adjusted operating income was due to the decline at TVA Network caused by the combined effect of lower advertising revenues, the favourable impact on 2013 operating revenues of recognition of retroactive royalties for retransmission of distant signals, higher content costs, and the increased adjusted operating loss of TVA Sports resulting directly from programming expenditures.
Consolidated operating revenues totalled $439.3 million in fiscal 2014, compared with $444.8 million in the previous year, a 1.2% decrease. During the same period, the Corporation recorded a net loss attributable to shareholders in the amount of $41.1 million, or $1.73 per share, compared with net income attributable to shareholders in the amount of $15.7 million, or $0.66 per share, in 2013.
In the third quarter of 2014, the Corporation reviewed its business plan and operating forecasts, particularly in the Broadcasting & Production segment. The Corporation concluded that the recoverable amounts were less than the carrying amounts of its broadcasting licence and goodwill. As a result, non-cash impairment charges of $32,462,000 and $8,538,000 respectively were recorded with respect to those assets.
Definition
Adjusted operating income (loss)
In its analysis of operating results, the Corporation defines adjusted operating income (loss) as net income (loss) before depreciation of property, plant and equipment, amortization of intangible assets, financial expenses, operational restructuring costs, impairment of assets and other costs, income taxes and share of loss (income) of associated corporations. Adjusted operating income (loss) as defined above is not a measure of results that is consistent with International Financial Reporting Standards ("IFRS"). Neither is it intended to be regarded as an alternative to other financial 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 business 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 operating income (loss) is also relevant because it is a significant component of the Corporation''s annual incentive compensation programs. The Corporation''s definition of adjusted operating income (loss) 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. Factors that may cause actual results to differ from current expectations include seasonality, operational risks (including pricing actions by competitors), programming, content and production cost risks, credit risk, government regulation risks, government assistance risks, changes in economic conditions, fragmentation of the media landscape, and labour relation risks. 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 and including, in particular, the "Risks and Uncertainties" section of the Corporation''s annual Management''s Discussion and Analysis for the year ended December 31, 2014.
The forward-looking statements in this news release reflect the Corporation''s expectations as of February 27, 2015, and are subject to change after this date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.
TVA Group
TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated communications company engaged in the broadcasting, film and television production, and magazine publishing industries. TVA Group Inc. is the largest broadcaster of French-language entertainment, information and public affairs programming in North America, the largest publisher of French-language magazines, and one of the largest private-sector producers of French-language content. The Corporation''s Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.
The audited consolidated financial statements with notes and the annual Management''s Discussion and Analysis can be consulted on the Corporation''s website at .
In 2014, management changed the names of the Corporation''s business segments to better reflect operational realities. The Television segment is now called Broadcasting & Production and the Publishing segment is now called Magazines.
Management also made changes to the Corporation''s management structure at the beginning of 2014. As a result of those changes, the custom publishing, commercial print production and premedia services previously provided by the TVA Studio division in the Magazines segment became part of the operations of TVA Acces Inc. in the Broadcasting & Production segment. Prior period disclosures have been restated to reflect this new presentation.
The Corporation''s operations consist of the following segments:
The above-noted intersegment items represent the elimination of normal course business transactions between the Corporation''s business segments regarding revenues.
Contacts:
Denis Rozon, CPA, CA
Vice President and Chief Financial Officer
(514) 598-2808
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 27.02.2015 - 10:18 Uhr
Sprache: Deutsch
News-ID 1340586
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
MONTREAL, CANADA
Phone:
Kategorie:
Television
Anmerkungen:
Diese Pressemitteilung wurde bisher 332 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"TVA Group Reports $4.4 Million Net Loss Attributable to Shareholders in Fourth Quarter Ended December 31, 2014
"
steht unter der journalistisch-redaktionellen Verantwortung von
TVA Group Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
