Glacier Media loses $1.9-million in Q2
2021-08-13 17:07 ET - News Release
Mr. Orest Smysnuik reports
GLACIER REPORTS SECOND QUARTER 2021 RESULTS
Glacier Media Inc. had revenue and earnings for the period ended June 30, 2021.
SUMMARY RESULTS
(thousands of dollars) Three months ended June 30, Six months ended June 30, except share and per share amounts 2021 2020 2021 2020 Revenue $ 41,013 $ 30,999 $ 80,510 $ 74,280 EBITDA $ 4,250 $ 6,191 $ 8,653 $ 8,124 EBITDA margin 10.4% 20.0% 10.7% 10.9% EBITDA per share $ 0.03 $ 0.05 $ 0.07 $ 0.06 Capital expenditures $ 2,060 $ 1,214 $ 3,173 $ 2,537 Net loss attributable to common shareholder $ (1,902) $ (7,816) $ (171) $ (20,025) Net loss attributable to common shareholder per share $ (0.01) $ (0.06) $ 0.00 $ (0.16) Weighted average shares outstanding, net 132,755,559 125,213,346 129,005,287 125,213,346 Results including joint ventures and associates: Revenue (1) $ 48,626 $ 38,053 $ 95,516 $ 90,446 EBITDA (1) $ 5,934 $ 7,991 $ 11,519 $ 11,180 EBITDA margin (1) 12.2% 21.0% 12.1% 12.4% EBITDA per share (1) $ 0.04 $ 0.06 $ 0.09 $ 0.09
(1) Certain results are presented to include the Company's proportionate share of its joint venture and associate operations, as this is the basis on which management bases its operating decisions and performance. The Company's joint ventures and associates include Great West Media Limited Partnership, the Victoria Times-Colonist, Rhode Island Suburban Newspapers, Inc., Village Media Inc. and Borden Bridge Development Corporation.
Q2 OPERATIONAL PERFORMANCE AND OUTLOOK
Operational Performance
Consolidated revenue for the three months ended June 30, 2021 was $41.0 million, up $10.0 million or 32.3% from the same period in the prior year. Excluding the Canadian Emergency Wage Subsidy ("CEWS"), consolidated EBITDA was $3.1 million for the period ended June 30, 2021 up from an EBITDA loss of $2.6 million for the same period in the prior year.
The Company recognized wage subsidies from the CEWS program of $1.2 million for the three months ended June 30, 2021 compared to $8.8 million for the same period last year. Consolidated EBITDA was $4.3 million for the three months ended June 30, 2021, down $1.9 million from the same period in the prior year, which includes CEWS and other grants and subsidies received during the quarter. The decline in profitability was mainly due to the reduction in wage subsidies received for the quarter compared to the prior year.
The federal government announced that the CEWS program will continue until September 2021, but at levels significantly reduced from previous periods. Other subsidies are expected to continue throughout 2021.
Including the Company's share of joint ventures and associates, revenue was $48.6 million, up $10.6 million or 27.8%. EBITDA, including CEWS, was $5.9 million, down $2.1 million.
The Company has experienced an improvement in market conditions in a variety of its businesses, but is still being affected by the pandemic in a number of areas. The Company is monitoring conditions on an ongoing basis and will respond accordingly if required. Revenues have been recovering gradually, and the Company is working to maintain sufficient levels of operating income within these levels and making concerted efforts to bring revenues back further and increase profits and cash flow.
Although capital expenditures have been reduced, continued operating expense investments are being made in some of the key strategic development initiatives, including the REW digital real estate marketplace, new weather and agricultural markets subscription-based products, and digital community media products.
Outlook
The Company has been working to strengthen its financial position and operating profitability during the pandemic. Revenues were significantly affected, although they have continued to improve during the latter part of 2020 and into 2021. It remains unclear how the pandemic will continue to unfold and affect conditions for the market in general and the Company's businesses in particular.
The combination of improved revenues, continued cost management and stronger business conditions in a number of the markets in which the Company operates has resulted in significantly improved levels of operating profitability excluding wage subsidies. A number of the Company's areas of business remain affected by the pandemic, including the low level of activity in events and tourism in particular.
The Company is now in a significantly stronger financial position with which to 1) operate at the lower levels of revenue and profitability currently being experienced, 2) have the financial capacity to handle restructuring costs required and other cash obligations and 3) withstand further economic uncertainty, additional waves of the pandemic and any related impact on revenues and cash flow.
Financial Position. As at June 30, 2021, the Company had no senior debt. The Company's mortgages and other loans totalled $2.5 million.
The Company has net $6.6 million of deferred purchase price obligations to be paid over the next four years. This amount is net of contributions from minority partners. The Company has a $5.0 million vendor-take back receivable to be paid over the next two years resulting from the sale of the Company's interest in Fundata and a $1.2 million potential earn-out proceeds payable over the next three years from the sale of the energy business.
Shares in Glacier are traded on the Toronto Stock Exchange under the symbol GVC.
About Glacier Media Inc.
Glacier Media Inc. is an information & marketing solutions company pursuing growth in sectors where the provision of essential information and related services provides high customer utility and value. The Company's products and services are focus