Another Strong Quarter, Cash inceases from $14.5 m to $21.5
ORIGINAL: Glacier Reports Third Quarter 2021 Results
2021-11-10 18:00 ET - News Release
VANCOUVER, British Columbia, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Glacier Media Inc. (TSX: GVC) (“Glacier” or the “Company”) reported revenue and earnings for the period ended September 30, 2021.
SUMMARY RESULTS
| (thousands of dollars) | | Three months ended September 30, | | Nine months ended September 30, | |
| except share and per share amounts | | | 2021 | | | | 2020 | | | | 2021 | | | | 2020 | | |
| | | | | | | | | | |
| Revenue | | $ | 40,211 | | | $ | 35,314 | | | $ | 120,721 | | | $ | 109,594 | | |
| EBITDA | | $ | 3,248 | | | $ | 8,577 | | | $ | 11,901 | | | $ | 16,701 | | |
| EBITDA margin | | | 8.1 | % | | | 24.3 | % | | | 9.9 | % | | | 15.2 | % | |
| EBITDA per share | | $ | 0.02 | | | $ | 0.07 | | | $ | 0.09 | | | $ | 0.13 | | |
| Capital expenditures | | $ | 1,188 | | | $ | 999 | | | $ | 4,361 | | | $ | 3,536 | | |
| Net (loss) income attributable to common shareholder | | $ | 75 | | | $ | 1,133 | | | $ | (96 | ) | | $ | (18,892 | ) | |
| Net (loss) income attributable to common shareholder per share | | $ | 0.00 | | | $ | 0.01 | | | -$ | 0.00 | | | $ | (0.15 | ) | |
| | | | | | | | | | |
| Weighted average shares outstanding, net | | | 132,755,559 | | | | 125,213,346 | | | | 130,269,115 | | | | 125,213,346 | | |
| | | | | | | | | | |
| Results including joint ventures and associates: | | | | | | | | | |
| Revenue (1) | | $ | 48,449 | | | $ | 42,868 | | | $ | 143,965 | | | $ | 133,314 | | |
| EBITDA (1) | | $ | 4,451 | | | $ | 10,144 | | | $ | 15,970 | | | $ | 21,324 | | |
| EBITDA margin (1) | | | 9.2 | % | | | 23.7 | % | | | 11.1 | % | | | 16.0 | % | |
| EBITDA per share (1) | | $ | 0.03 | | | $ | 0.08 | | | $ | 0.12 | | | $ | 0.17 | | |
| | | | | | | | | | |
(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., and Village Media Inc. Borden Bridge Development Corporation was included up to August 31, 2021 at which point the Company acquired the remaining 50% and started to consolidate the results.
Q3 OPERATING PERFORMANCE AND OUTLOOK
Operating Performance
Consolidated revenue for the three months ended September 30, 2021 was $40.2 million, up $4.9 million or 13.9% from the same period in the prior year primarily as a result of 1) growth in a number of the Company’s businesses due to stronger industry segment conditions and operating performance and 2) the significant impact of the COVID pandemic in the prior year and the resulting restrictions and cut-back in consumer and business activity.
Consolidated EBITDA was $1.8 million, excluding CEWS but including varying levels of other grants and subsidies, for the period ended September 30, 2021 up $0.4 million from $1.4 million for the same period in the prior year. The results for the current period include three months of special Aid to Publishers (“ATP”) at lower funding levels, as compared to the same quarter in the prior year which included six months of special ATP funding from the federal government at higher levels due to COVID, resulting in a decline in ATP funds recorded between the current and comparative period.
The Company recognized wage subsidies from the CEWS program of $1.4 million for the three months ended September 30, 2021 compared to $7.1 million for the same period last year, a decrease of $5.7 million.
Consolidated EBITDA including CEWS was $3.2 million for the three months ended September 30, 2021, down $5.3 million from the same period in the prior year, including CEWS and other grants and subsidies recorded during the quarter.
The Company will no longer qualify for CEWS program funding subsequent to October 2021.
Outlook
The Company has been working to strengthen its financial position and operating profitability during the pandemic. Revenues were significantly affected early on, although they have continued to improve during the latter part of 2020 and throughout 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, 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 has no debt net of cash and is now in a significantly stronger financial position with which to 1) operate at the lower levels of revenue and profitability currently being experienced in certain markets, 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.
While the pandemic and related measures are still affecting the Company’s businesses to varying degrees, the Company’s digital media, data, and information businesses have held up relatively well. The underlying fundamentals and value of these products have demonstrated resilience despite the challenging market conditions.
Overall, the Company expects that as time progresses, and the pandemic abates, revenues will recover further. Due to the uncertainty surrounding the continued magnitude and impact of the COVID pandemic on the economy, it remains unclear what the impact will be on the Company’s operations and financial position in the short-term.
The Company is working to reach the point where increases in the revenue, profit and cash flow from its data, analytics and intelligence products and digital media products exceeds the decline of its print advertising related profit and cash flow. The Company had made progress in this regard in the first two months of the first quarter of 2020 before the impact of the pandemic set in. The Company can operate at lower levels of revenue from its digital media, data and information operations in the future and operate profitably.
Financial Position. As at September 30, 2021, the Company was in a net cash positive position, with a cash balance of $21.8 million and mortgages and other loans of $4.6 million. This includes a new non-recourse mortgage on farm show land in Saskatchewan.
The Company has net $6.7 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 $1.2 million potential earn-out proceeds receivable 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.
For further information please contact Mr. Orest Smysnuik, Chief Financial Officer, at 604-708-3264.
ABOUT THE COMPANY
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 focused in two areas: 1) data, analytics and intelligence; and 2) content & marketing solutions.