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Jan 13, 2022 • 7 minutes in the past • 10 minute learn • Be a part of the dialog
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TORONTO — Postmedia Community Canada Corp. (“Postmedia” or the “Firm”) at the moment launched monetary data for the three months ended November 30, 2021.
“We’re happy to report sturdy development in digital promoting income this quarter,” mentioned Andrew MacLeod, President and Chief Government Officer, Postmedia. “A lot uncertainty stays as we proceed to handle by this unpredictable atmosphere. Nonetheless, we’re protecting a robust deal with executing our technique.”
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Updates from the Quarter
- Constraining Prices – Within the quarter we applied price financial savings initiatives which might be anticipated to lead to roughly $9 million of internet annualized price financial savings.
- Maximizing Income – First quarter income was up 1.0% from the identical interval within the prior yr with whole promoting income up 8.4% exhibiting continued enchancment every quarter because the peak of the pandemic in This autumn of fiscal 2020.
- Preserving Liquidity – Money administration, together with the impression of price financial savings initiatives and authorities help has resulted in an unrestricted money steadiness of $52 million as at November 30, 2021.
First Quarter Working Outcomes
Income for the quarter was $118.1 million as in comparison with $116.9 million in the identical interval within the prior yr, representing a rise of $1.1 million or 1.0%. The income enhance was resulting from will increase in digital income of $9.0 million or 36.4%, with digital promoting income up 43.9%. Partially offsetting the rise in digital income have been decreases in print promoting income of $3.7 million or 8.4% and print circulation income of $4.3 million or 9.7%.
Complete working bills excluding depreciation, amortization, settlement achieve, impairment and restructuring elevated $6.4 million or 6.4% for the quarter, relative to the identical interval within the prior yr. The rise was the results of will increase in compensation bills resulting from a discount in authorities help and manufacturing prices associated to the rise in digital promoting income. The compensation expense enhance features a lower within the compensation expense restoration associated to CEWS of $5.0 million, partially offset by a rise in compensation restoration associated to journalism tax credit of $0.7 million.
Working revenue earlier than depreciation, amortization, settlement achieve, impairment and restructuring of $11.9 million within the quarter represents a lower of $5.3 million relative to the identical interval within the prior yr. The lower is because of the enhance in working bills excluding depreciation, amortization, and restructuring partially offset by a rise in whole revenues. Included within the working expense enhance is the impression of the web compensation expense restoration associated to CEWS and journalism tax credit.
Internet loss within the quarter ended November 30, 2021 was $4.4 million, as in comparison with internet earnings of $52.8 million in the identical interval within the prior yr. The change was primarily the results of a non-cash settlement achieve associated to worker profit plans of $63.1 million and impairment expense of $13.5 million each through the three months ended November 30, 2020 and the lower in working revenue earlier than depreciation, amortization, settlement achieve, impairment and restructuring.
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COVID-19 Replace
The COVID-19 pandemic has resulted in governments worldwide enacting emergency measures to fight the unfold of the virus together with journey bans, self-imposed quarantine durations and social distancing which have induced disruption to companies leading to an financial slowdown. The Firm is mostly exempt from mandates requiring closures of non-essential companies and subsequently has been in a position to proceed operations, nevertheless, promoting income declines accelerated through the first twelve months of the COVID-19 pandemic with a return to earlier traits in latest quarters. The length of the COVID-19 pandemic and associated authorities measures and their impression on the Firm’s income continues to be unsure. On April 11, 2020, the Authorities of Canada handed CEWS to assist employers dealing with monetary hardship as measured by sure income declines because of the COVID-19 pandemic. CEWS supplied a reimbursement of compensation expense to October 23, 2021, supplied the applicant has met the relevant standards. Through the three months ended November 30, 2021, the Firm filed and acquired all of the remaining claims obtainable beneath this system and acknowledged a restoration of compensation expense of $1.6 million associated to CEWS (2021 – $6.6 million) and in whole has acknowledged $64.9 million associated to CEWS because the program was introduced.
Debt Reimbursement
Through the three months ended November 30, 2021, the Firm redeemed $2.5 million of first-lien debt on November 24, 2021, as required pursuant to the semi-annual extra money stream requirement. After this redemption the Firm has $64.5 million of first-lien debt excellent of the unique $225.0 million that was issued in October 2016.
Enterprise Transformation Initiatives
Through the three months ended November 30, 2021, the Firm applied initiatives associated to compensation expense reductions, actual property rationalization, manufacturing efficiencies and different transformation packages, that are anticipated to lead to roughly $9 million of internet annualized price financial savings.
The Firm intends to proceed to determine and undertake ongoing price discount initiatives in an effort to deal with income declination within the legacy print enterprise.
Extra Data
Extra data, together with monetary statements and administration’s dialogue and evaluation might be discovered on the Firm’s web site at www.postmedia.com or on SEDAR at www.sedar.com .
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Observe: All greenback quantities are expressed in Canadian {dollars} except in any other case specified.
About Postmedia Community Canada Corp.
Postmedia Community Canada Corp. (TSX:PNC.A, PNC.B) is the holding firm that owns Postmedia Community Inc., a Canadian newsmedia firm representing greater than 120 manufacturers throughout a number of print, on-line, and cellular platforms. Award-winning journalists and modern product growth groups deliver participating content material to tens of millions of individuals each week every time and wherever they need it. This distinctive content material, attain and scope provides advertisers and entrepreneurs compelling options to successfully attain goal audiences. For extra data, go to www.postmedia.com .
Ahead-Trying Data
This information launch could embrace data that’s “forward-looking data” beneath relevant Canadian securities legal guidelines. The Firm has tried, the place doable, to determine such data and statements through the use of phrases akin to “consider,” “anticipate,” “intend,” “estimate,” “anticipate,” “could,” “will,” “may,” “would,” “ought to” and related expressions and derivations thereof in reference to any dialogue of future occasions, traits or prospects or future working or monetary efficiency. Ahead-looking statements on this information launch embrace statements with respect to the impression of the COVID-19 pandemic on the Firm’s enterprise, the implementation and outcomes of the Firm’s transformation initiatives, continued advantages of historic outcomes into future durations, the conclusion of anticipated price financial savings and the identification and endeavor of ongoing price financial savings initiatives. By their nature, forward-looking data and statements contain dangers and uncertainties as a result of they relate to occasions and depend upon circumstances that will or could not happen sooner or later. These dangers and uncertainties embrace, amongst others: competitors from digital and different types of media; the impact of financial situations on promoting income; the power of the Firm to construct out its digital media and on-line companies; the failure to take care of present print and on-line newspaper readership and circulation ranges; the conclusion of anticipated price financial savings; doable injury to the status of the Firm’s manufacturers or logos; doable labour disruptions; doable environmental liabilities, litigation and pension plan obligations; fluctuations in international trade charges and the costs of newsprint and different commodities.
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As well as, we’re topic to the chance and uncertainties associated to the COVID-19 pandemic. The pandemic has resulted in governments worldwide enacting emergency measures to fight the unfold of the virus together with journey bans, self-imposed quarantine durations and social distancing which have induced disruption to companies leading to an financial slowdown. We’re typically exempt from mandates requiring closures of non-essential companies and subsequently have been in a position to proceed operations nevertheless, promoting revenues have declined because of COVID-19 pandemic and associated authorities measures. The outbreak of contagious sickness akin to this may impression our operations in quite a few methods together with quarantined staff, journey restrictions, short-term closure of our services, a lower in demand for promoting, in addition to interruptions to our provide chain, together with short-term closure of provider services. Given the excessive degree of uncertainty surrounding the length of the COVID-19 pandemic it’s tough to reliably estimate its potential impression on the monetary situation and outcomes of our enterprise. We’re persevering with to deal with the present challenges associated to the COVID-19 pandemic and monitoring these challenges as they evolve in order to attenuate this threat nevertheless it may have a fabric antagonistic impact on our enterprise, monetary situation, outcomes of operations, liquidity and money stream. For an entire checklist of our threat components please discuss with the part entitled “Danger Elements” contained in our annual administration’s dialogue and evaluation for the years ended August 31, 2021 and 2020. Though the Firm bases such data and statements on assumptions believed to be affordable when made, they aren’t ensures of future efficiency and precise outcomes of operations, monetary situation and liquidity, and developments within the trade through which the Firm operates, could differ materially from any such data and statements on this press launch. Given these dangers and uncertainties, undue reliance shouldn’t be positioned on any forward-looking data or forward-looking statements, which communicate solely as of the date of such data or statements. Aside from as required by legislation, the Firm doesn’t undertake, and particularly declines, any obligation to replace such data or statements or to publicly announce the outcomes of any revisions to any such data or statements.
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|
Postmedia Community Canada Corp. Consolidated Statements of Operations (UNAUDITED) |
||||||
|
(In 1000’s of Canadian {dollars}, besides per share quantities) |
For the three months ended November 30, |
|||||
|
2021 |
2020 |
|||||
|
Revenues |
||||||
|
Print promoting |
39,881 |
43,532 |
||||
|
Print circulation |
39,808 |
44,100 |
||||
|
Digital |
33,910 |
24,869 |
||||
|
Different |
4,471 |
4,429 |
||||
|
Complete revenues |
118,070 |
116,930 |
||||
|
Bills |
||||||
|
Compensation |
40,267 |
36,812 |
||||
|
Newsprint |
4,266 |
4,990 |
||||
|
Distribution |
23,450 |
24,686 |
||||
|
Manufacturing |
19,923 |
14,944 |
||||
|
Different working |
18,274 |
18,320 |
||||
|
Working revenue earlier than depreciation, amortization, impairment, settlement achieve and restructuring |
11,890 |
17,178 |
||||
|
Depreciation |
2,657 |
2,783 |
||||
|
Amortization |
2,190 |
2,555 |
||||
|
Impairment |
– |
13,464 |
||||
|
Settlement achieve |
– |
(63,079 |
) |
|||
|
Restructuring |
700 |
2,935 |
||||
|
Working revenue |
6,343 |
58,520 |
||||
|
Curiosity expense |
7,530 |
7,826 |
||||
|
Internet financing expense associated to worker profit plans |
234 |
636 |
||||
|
Acquire on disposal of property held-for-sale |
– |
(6 |
) |
|||
|
Loss (achieve) on by-product monetary devices |
264 |
(1,604 |
) |
|||
|
International forex trade losses (beneficial properties) |
2,737 |
(1,157 |
) |
|||
|
Earnings (loss) earlier than revenue taxes |
(4,422 |
) |
52,825 |
|||
|
Provision for revenue taxes |
– |
– |
||||
|
Internet earnings (loss) attributable to fairness holders of the Firm |
(4,422 |
) |
52,825 |
|||
|
Earnings (loss) per share attributable to fairness holders of the Firm |
||||||
|
Fundamental |
$(0.05 |
) |
$0.56 |
|||
|
Diluted |
$(0.05 |
) |
$0.54 |
|||
|
Postmedia Community Canada Corp. Consolidated Statements of Monetary Place (UNAUDITED) |
||||||
|
(In 1000’s of Canadian {dollars}) |
As at November 30, 2021 |
As at August 31, 2021 |
||||
|
Belongings |
||||||
|
Present Belongings |
||||||
|
Money |
52,005 |
61,996 |
||||
|
Restricted money |
437 |
437 |
||||
|
Commerce and different receivables |
50,274 |
41,255 |
||||
|
Belongings held-for-sale |
17,727 |
17,727 |
||||
|
Stock |
3,327 |
3,348 |
||||
|
Pay as you go bills and different property |
8,421 |
8,697 |
||||
|
Complete present property |
132,191 |
133,460 |
||||
|
Non-Present Belongings |
||||||
|
Property and gear |
74,346 |
76,390 |
||||
|
Proper of use property |
34,010 |
35,646 |
||||
|
Spinoff monetary devices and different property |
7,150 |
6,914 |
||||
|
Intangible property |
23,337 |
23,791 |
||||
|
Complete property |
271,034 |
276,201 |
||||
|
Liabilities and Deficiency |
||||||
|
Present Liabilities |
||||||
|
Accounts payable and accrued liabilities |
52,091 |
49,599 |
||||
|
Provisions |
1,722 |
2,257 |
||||
|
Deferred income |
21,931 |
22,351 |
||||
|
Present portion of lease obligations |
8,073 |
8,120 |
||||
|
Present portion of long-term debt |
5,000 |
7,409 |
||||
|
Complete present liabilities |
88,817 |
89,736 |
||||
|
Non-Present Liabilities |
||||||
|
Lengthy-term debt |
250,999 |
248,262 |
||||
|
Worker profit obligations and different liabilities |
42,925 |
44,753 |
||||
|
Lease obligations |
31,719 |
33,161 |
||||
|
Complete liabilities |
414,460 |
415,912 |
||||
|
Deficiency |
||||||
|
Capital inventory |
810,861 |
810,861 |
||||
|
Contributed surplus |
16,543 |
16,570 |
||||
|
Deficit |
(970,330 |
) |
(967,142 |
) |
||
|
Complete deficiency |
(143,426 |
) |
(139,711 |
) |
||
|
Complete liabilities and deficiency |
271,034 |
276,201 |
||||
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Postmedia Community Canada Corp. Consolidated Statements of Money Flows (UNAUDITED) |
||||||
|
(In 1000’s of Canadian {dollars}) |
For the three months ended November 30, |
|||||
|
2021 |
2020 |
|||||
|
Money Generated (Utilized) by: |
||||||
|
Working Actions |
||||||
|
Internet earnings (loss) attributable to fairness holders of the Firm |
(4,422 |
) |
52,825 |
|||
|
Gadgets not affecting money: |
||||||
|
Depreciation |
2,657 |
2,783 |
||||
|
Amortization |
2,190 |
2,555 |
||||
|
Impairment |
– |
13,464 |
||||
|
Loss (achieve) on by-product monetary devices |
264 |
(1,604 |
) |
|||
|
Non-cash curiosity |
6,028 |
5,855 |
||||
|
Acquire on disposal of property held-for-sale |
– |
(6 |
) |
|||
|
Non-cash international forex trade losses (beneficial properties) |
2,751 |
(1,124 |
) |
|||
|
Share-based compensation plans |
(27 |
) |
273 |
|||
|
Internet financing expense referring to worker profit plans |
234 |
636 |
||||
|
Non-cash settlement achieve referring to worker profit plans |
– |
(63,079 |
) |
|||
|
Worker profit plan funding in extra of compensation expense |
(1,121 |
) |
(538 |
) |
||
|
Internet change in non-cash working accounts |
(13,320 |
) |
(3,767 |
) |
||
|
Money flows (utilized in) from working actions |
(4,766 |
) |
8,273 |
|||
|
Investing Actions |
||||||
|
Internet proceeds from the sale of property held-for-sale |
– |
4,708 |
||||
|
Purchases of property and gear |
(613 |
) |
(392 |
) |
||
|
Purchases of intangible property |
(159 |
) |
(15 |
) |
||
|
Money flows (utilized in) from investing actions |
(772 |
) |
4,301 |
|||
|
Financing actions |
||||||
|
Reimbursement of long-term debt |
(2,396 |
) |
(15,372 |
) |
||
|
Restricted money |
– |
3,402 |
||||
|
Lease funds |
(2,057 |
) |
(2,647 |
) |
||
|
Money stream utilized in financing actions |
(4,453 |
) |
(14,617 |
) |
||
|
Internet change in money for the interval |
(9,991 |
) |
(2,043 |
) |
||
|
Money at starting of interval |
61,996 |
49,795 |
||||
|
Money at finish of interval |
52,005 |
47,752 |
||||
|
Supplemental disclosure of working money flows |
||||||
|
Curiosity paid |
2,924 |
4,162 |
||||
|
Revenue taxes paid |
– |
– |
||||
View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20220113005633/en/
Contacts
Media Contact
Phyllise Gelfand
Vice President, Communications
(647) 273-9287
pgelfand@postmedia.com
Investor Contact
Mary Anne Lavallee
Government Vice President, Chief Working Officer and Interim Chief Monetary Officer
(416) 442-3448
mLavallee@postmedia.com
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