Corus Entertainment Announces Fiscal 2013 First Quarter Results

       Corus Entertainment Announces Fiscal 2013 First Quarter Results

PR Newswire

TORONTO, Jan. 14, 2013

  *Monthly dividend increased 6.25%
  *Net income attributable to shareholders up 3%
  *Basic earnings per share attributable to shareholders up 3%
  *Segment profit up 2%
  *Strong segment profit margins for Television (45%) and Radio (36%)

TORONTO, Jan. 14, 2013  /PRNewswire/ - Corus  Entertainment Inc. (TSX:  CJR.B) 
announced its first quarter financial results today.

"Corus has delivered  a solid  first quarter,  achieving double-digit  segment 
profit growth in Radio, strong Women's advertising sales, subscriber gains  on 
Pay television and continued success in controlling costs, which was partially
offset by soft results  in our Kids business,"  said John Cassaday,  President 
and Chief Executive Officer, Corus  Entertainment. "Looking ahead, we  expect 
our  strong  ratings  momentum  on  Oprah  Winfrey  Network,  ABC  Spark   and 
Nickelodeon will contribute to revenue growth as the fiscal year progresses."

Financial Highlights                                                        
                                                                           
                                                           Three months ended
                                                             November 30,
(unaudited - in thousands of Canadian dollars except per        2012    2011
share amounts)
Revenues                                                                    
 Television                                                 173,823 185,027
 Radio                                                       52,324  51,864
                                                            226,147 236,891
Segment profit ^(1)                                                         
 Television                                                  78,698  80,495
 Radio                                                       18,956  16,402
 Corporate                                                   (4,961)  (5,683)
                                                             92,693  91,214
                                                                           
Net income attributable to:                                                 
Shareholders                                                  52,159  50,548
Non-controlling interest                                       1,857   2,132
                                                             54,016  52,680
                                                                           
Earnings per share attributable to shareholders:                            
Basic                                                          $ 0.63   $ 0.61
Diluted                                                        $ 0.62   $ 0.61
                                                                           
Free cash flow ^(1)                                           37,885  24,059
                                                                           
^(1) See definitions and discussion under Key Performance Indicators in MD&A.

Consolidated Results from Continuing Operations

Consolidated revenues for the three months ended November 30, 2012 were $226.1
million, down 5% from $236.9  million last year. Consolidated segment  profit 
was  $92.7  million,  up  2%  from  $91.2  million  last  year.  Net   income 
attributable to shareholders for  the quarter was  $52.2 million ($0.63  basic 
and $0.62 diluted per share), up 3% compared to $50.5 million ($0.61 basic and
diluted per share) last year.

Operational Results - Highlights

Television

  *Segment revenues decreased 6%
  *Segment profit^(1) decreased 2%
  *Specialty advertising revenues decreased 3%
  *Subscriber revenues increased 1%
  *Movie Central finished the quarter with 998,000 subscribers, up 22,000
    from the fourth quarter of fiscal 2012
  *Merchandising, distribution and other revenues decreased 25%
  *Segment profit margins of 45%

Radio

  *Segment revenues increased 1%
  *Segment profit^(1) increased 16%
  *Segment profit margins of 36%

^(1) See definitions and discussion under Key Performance Indicators in MD&A.

Corus Entertainment Inc. reports in Canadian dollars.

About Corus Entertainment Inc.

Corus Entertainment Inc. is a Canadian-based media and entertainment company.
Corus is a  market leader in  specialty television and  radio with  additional 
assets in pay television, television broadcasting, children's book publishing,
children's  animation  and  animation  software.  The  Company's   multimedia 
entertainment brands include YTV, Treehouse, Nickelodeon (Canada), ABC  Spark, 
W Network,  OWN: Oprah  Winfrey Network  (Canada), CosmoTV,  Sundance  Channel 
(Canada), Movie Central, HBO Canada, Nelvana, Kids Can Press, Toon Boom and 37
radio stations including  CKNW AM 980,  99.3 The FOX,  Country 105, 630  CHED, 
Q107, and  102.1  the  Edge. Corus  creates  engaging  branded  entertainment 
experiences for its  audiences across multiple  platforms. A publicly  traded 
company, Corus is listed  on the Toronto  Stock Exchange (CJR.B).  Experience 
Corus on the web at www.corusent.com.

The unaudited consolidated financial statements and accompanying notes for the
three months ended November 30, 2012 and Management's Discussion and  Analysis 
are available on  the Company's  website at www.corusent.com  in the  Investor 
Relations section.

A conference call with  Corus senior management is  scheduled for January  15, 
2013 at 4:00 p.m. ET. While this call is directed at analysts and  investors, 
members of the media  are welcome to  listen in. The  dial-in number for  the 
conference   call   for    North   America   is    1.800.909.4795   and    for 
local/international callers is 416.641.6684.  PowerPoint slides for the  call 
will be posted 15 minutes prior to the  start of the call and can be found  on 
the Corus Entertainment website at www.corusent.com in the Investor  Relations 
section.

This press release  contains forward-looking  information and  should be  read 
subject to the following cautionary language:

To the extent any statements made  in this report contain information that  is 
not historical, these  statements are  forward-looking statements  and may  be 
forward-looking information within the  meaning of applicable securities  laws 
(collectively,   "forward-looking    statements").   These    forward-looking 
statements related to, among other things, our objectives, goals,  strategies, 
intentions, plans, estimates and outlook, including advertising, distribution,
merchandise and subscription revenues, operating costs and tariffs, taxes  and 
fees, and  can  generally be  identified  by the  use  of the  words  such  as 
"believe", "anticipate", "expect", "intend",  "plan", "will", "may" and  other 
similar expressions. In addition, any statements that refer to  expectations, 
projections or other characterizations of  future events or circumstances  are 
forward-looking statements.  Although Corus  believes that  the  expectations 
reflected in such forward-looking  statements are reasonable, such  statements 
involve risks and  uncertainties and undue  reliance should not  be placed  on 
such statements.  Certain  material factors  or  assumptions are  applied  in 
making forward-looking statements,  including without  limitation factors  and 
assumptions regarding advertising, distribution, merchandise and  subscription 
revenues, operating costs and tariffs, taxes  and fees and actual results  may 
differ materially  from  those  expressed  or  implied  in  such  statements. 
Important factors that could  cause actual results  to differ materially  from 
these expectations include,  among other  things: our ability  to attract  and 
retain advertising revenues;  audience acceptance of  our television  programs 
and cable networks; our ability  to recoup production costs, the  availability 
of tax credits  and the existence  of co-production treaties;  our ability  to 
compete in any of  the industries in which  we do business; the  opportunities 
(or lack thereof) that may  be presented to and  pursued by us; conditions  in 
the entertainment, information and communications industries and technological
developments therein; changes in laws or regulations or the interpretation  or 
application of  those  laws and  regulations;  our ability  to  integrate  and 
realize anticipated benefits from our  acquisitions and to effectively  manage 
our growth; our  ability to successfully  defend ourselves against  litigation 
matters arising  out of  the  ordinary course  of  business; and  changes  in 
accounting standards. Additional information about these factors and about the
material assumptions underlying such  forward-looking statements may be  found 
in our Annual  Information Form. Corus  cautions that the  foregoing list  of 
important factors  that may  affect future  results is  not exhaustive.  When 
relying on our forward-looking  statements to make  decisions with respect  to 
Corus, investors and  others should carefully  consider the foregoing  factors 
and other uncertainties  and potential  events. Unless  otherwise required  by 
applicable securities  laws,  we  disclaim  any  intention  or  obligation  to 
publicly update or revise any  forward-looking statements whether as a  result 
of new information, events or circumstances that arise after the date  thereof 
or otherwise.

                           CORUS ENTERTAINMENT INC.
                CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                                                           
                                          As at November 30, As at August 31,
(unaudited - in thousands of Canadian                   2012            2012
dollars)
ASSETS                                                                      
Current                                                                     
Cash and cash equivalents                             50,483          24,588
Accounts receivable                                  206,036         173,421
Income taxes recoverable                                   —           9,542
Prepaid expenses and other                            14,633          12,664
Total current assets                                 271,152         220,215
                                                                           
Tax credits receivable                                45,571          43,865
Intangibles, investments and other assets             42,067          42,390
Property, plant and equipment                        160,691         163,563
Program and film rights                              276,743         271,244
Film investments                                      69,684          67,983
Broadcast licenses                                   569,505         569,505
Goodwill                                             674,393         674,393
Deferred tax assets                                   29,318          28,327
                                                  2,139,124       2,081,485
                                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current                                                                     
Accounts payable and accrued liabilities             203,214         185,991
Income taxes payable                                       16               —
Provisions                                             1,638           2,322
Total current liabilities                            204,868         188,313
                                                                           
Long-term debt                                       528,898         518,258
Other long-term liabilities                           83,357          87,853
Deferred tax liabilities                             150,714         150,971
Total liabilities                                    967,837         945,395
                                                                           
SHAREHOLDERS' EQUITY                                                        
Share capital                                        916,085         910,005
Contributed surplus                                    8,175           7,835
Retained earnings                                    229,798         198,445
Accumulated other comprehensive loss                    (232)            (812)
Total equity attributable to shareholders          1,153,826       1,115,473
Equity attributable to non-controlling                17,461          20,617
interest
Total shareholders' equity                         1,171,287       1,136,090
                                                  2,139,124       2,081,485

                           CORUS ENTERTAINMENT INC.
          CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                                                           
                                                           Three months ended
                                                                 November 30,
(unaudited - in thousands of Canadian dollars except per        2012    2011
share amounts)
Revenues                                                     226,147 236,891
Direct cost of sales, general and administrative expenses    133,454 145,677
Depreciation and amortization                                  6,429   6,239
Interest expense                                              12,132  13,427
Other expense, net                                               506     447
                                                                           
Income before income taxes                                    73,626  71,101
Income tax expense                                            19,610  18,421
                                                                           
Net income for the period                                     54,016  52,680
                                                                           
Net income attributable to:                                                 
Shareholders                                                  52,159  50,548
Non-controlling interest                                       1,857   2,132
                                                             54,016  52,680
                                                                           
Earnings per share attributable to shareholders:                            
 Basic                                                     $ 0.63   $ 0.61
 Diluted                                                   $ 0.62   $ 0.61
                                                                           
Net income for the period                                     54,016  52,680
Other comprehensive income, net of tax:                                     
 Items that may be reclassified subsequently to income:                    
 Unrealized foreign currency translation adjustment          290   1,124
 Unrealized change in fair value of available-for-sale       290     (74)
investments
                                                                580   1,050
                                                                           
Comprehensive income for the period                           54,596  53,730
                                                                           
Comprehensive income attributable to:                                       
 Shareholders                                             52,739  51,598
 Non-controlling interest                                  1,857   2,132
                                                             54,596  53,730

                                CORUS ENTERTAINMENT INC.                                  
                      CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY                        
                                                                                   
                                                                                   
                                                                                   
(unaudited -                                Accumulated Total equity
in thousands                                       other attributable        Non-
of Canadian     Share Contributed Retained comprehensive           to controlling      Total
dollars)      capital     surplus earnings          loss shareholders    interest     equity
At August 31, 910,005      7,835 198,445         (812)   1,115,473     20,617 1,136,090
2012
Comprehensive       —
income                          —  52,159          580      52,739      1,857    54,596
Dividends           —
declared                        — (20,050)             —     (20,050)     (5,013)   (25,063)
Issuance of
shares under
dividend 
reinvestment
plan            6,788           —        —            —       6,788          —     6,788
Shares          (708)           —    (756)            —      (1,464)          —    (1,464)
repurchased
Share-based         —
compensation
expense                      340       —            —         340          —       340
At November   916,085      8,175 229,798         (232)   1,153,826     17,461 1,171,287
30, 2012
                                                                                    
                                                                                    
At August 31, 882,679     10,299 143,717       (1,075)   1,035,620     19,200 1,054,820
2011
Comprehensive      —          —  50,548        1,050      51,598      2,132    53,730
income
Dividends          —          — (17,950)            —     (17,950)     (4,223)   (22,173)
declared
Issuance of
shares under
stock option

plan             106        (20)       —            —          86          —        86
Issuance of
shares under
dividend 
reinvestment
plan           6,282          —       —            —       6,282          —     6,282
Shares        (2,110)          —  (1,778)            —      (3,888)          —    (3,888)
repurchased
Share-based        —        293       —            —         293          —       293
compensation
expense
At November   886,957     10,572 174,537          (25)   1,072,041     17,109 1,089,150
30, 2011
                                                                                    

                           CORUS ENTERTAINMENT INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                           
                                                           Three months ended
                                                                 November 30,
(unaudited - in thousands of Canadian dollars)                  2012    2011
OPERATING ACTIVITIES                                                        
Net income for the period                                     54,016  52,680
Add (deduct) non-cash items:                                                
 Depreciation and amortization                               6,429   6,239
 Amortization of program and film rights                    45,693  47,055
 Amortization of film investments                            6,207   9,987
 Deferred income taxes                                      (1,294)   1,362
 Share-based compensation expense                              340     293
 Imputed interest                                            2,525   3,034
 Other                                                        (304)    (243)
Net change in non-cash working capital                                      
 balances related to operations                            (29,133) (41,391)
Payment of program and film rights                           (27,626) (35,429)
Net additions to film investments                            (16,074) (17,136)
Cash provided by operating activities                         40,779  26,451
                                                                           
INVESTING ACTIVITIES                                                        
Additions to property, plant and equipment                    (3,542)  (3,370)
Net cash flows for intangibles, investments and other             73   1,131
assets
Other                                                            (88)    (153)
Cash used in investing activities                             (3,557)  (2,392)
                                                                           
FINANCING ACTIVITIES                                                        
Increase in bank loans                                         9,985       —
Issuance of shares under stock option plan                          —      86
Shares repurchased                                            (1,464)  (3,888)
Dividends paid                                               (13,223) (11,675)
Dividends paid to non-controlling interest                    (4,313)  (4,223)
Other                                                         (2,312)  (2,272)
Cash used in financing activities                            (11,327) (21,972)
                                                                           
Net change in cash and cash equivalents during the period     25,895   2,087
Cash and cash equivalents, beginning of the period            24,588  55,922
Cash and cash equivalents, end of the period                  50,483  58,009

                           CORUS ENTERTAINMENT INC.
                         BUSINESS SEGMENT INFORMATION

(unaudited - in thousands of Canadian dollars)
                                                                        
Three months ended November 30, 2012
                                     Radio Television Corporate Consolidated
Revenues                             52,324   173,823         —     226,147
Direct cost of sales, general and
administrative expenses              33,368    95,125    4,961     133,454
Segment profit (loss)^(1)            18,956    78,698   (4,961)      92,693
Depreciation and amortization                                        6,429
Interest expense                                                    12,132
Other expense, net                                                     506
Income before income taxes                                          73,626
                                                                        
Three months ended November 30, 2011
                                     Radio Television Corporate Consolidated
Revenues                             51,864   185,027         —     236,891
Direct cost of sales, general and
administrative expenses              35,462   104,532    5,683     145,677
Segment profit (loss)^(1)            16,402    80,495   (5,683)      91,214
Depreciation and amortization                                        6,239
Interest expense                                                    13,427
Other expense, net                                                     447
Income before income taxes                                          71,101
                                                                        
^(1) See definitions and discussion under Key Performance                    
Indicators in MD&A.
Revenues by type                                                            
                                                        Three months ended
                                                           November 30,
                                                          2012        2011
 Advertising                                            117,894     119,449
 Subscriber fees                                         74,981      74,141
 Merchandising, distribution and other                   33,272      43,301
                                                       226,147     236,891



SOURCE Corus Entertainment Inc.

Contact:

John Cassaday
President and Chief Executive Officer
Corus Entertainment Inc.
416.479.6018

Tom Peddie
Executive Vice President and Chief 
Financial Officer 
Corus Entertainment Inc.
416.479.6080

Sally Tindal
Director, Communications
Corus Entertainment Inc.
416.479.6107
 
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