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Glacier Media earns $1.73-million in Q1 2021
2021-05-14 18:05 ET - News Release
Mr. Orest Smysnuik reports
GLACIER REPORTS FIRST QUARTER 2021 RESULTS
Glacier Media Inc. has released revenue and earnings for the period ended March 31, 2021.
Operational performance, significant developments in Q1 2021 and outlook
Operational performance
Consolidated revenue for the three months ended March 31, 2021, was $39.5-million, down $3.8-million or 8.7 per cent from the same period in the prior year. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) was $4.4-million for the three months ended March 31, 2021, up $2.5-million from the same period in the prior year. Including the company's share of joint ventures and associates, revenue was $46.9-million, down $5.5-million or 10.5 per cent and EBITDA was $5.6-million, up $2.4-million.
The company recognized wage subsidies from the Canadian Emergency Wage Subsidy (CEWS) program of $2.2-million for the three months ended March 31, 2021. Consolidated EBITDA was $2.2-million excluding CEWS. The company's EBITDA of $4.4-million also includes other grants and subsidies received during the 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 also expected to continue throughout 2021.
The company is reporting net income for the period ended March 31, 2020, of $1.7-million and income per share of one cent compared with a net loss of $12.2-million and loss per share of 10 cents in the comparative period. The company recognized a gain on sale of the energy operations of $2.2-million during the current period. The company recorded an impairment charge of $10.9-million in the comparative period as the result of the negative impacts of the beginning of the pandemic.
Including the company's share of joint ventures and associates, revenue was $183.5-million, down $45.9-million or 20.0 per cent, and EBITDA was $29.8-million, up $13.4-million.
The company implemented a wide variety of cost reductions in response to the decline in revenues. These included temporary wage rollbacks, reduced work weeks, layoffs and a wide variety of other cost reduction measures.
The company is monitoring conditions on a continuing basis and will respond accordingly. 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.
Sale of energy business
On March 12, 2021, the company sold its energy information business for $4.5-million in cash at closing, net of a $200,000 escrow holdback, plus a potential earnout of up to $3.5-million. The earnout is revenue based and payable over three years. The company recorded an estimated $1.2-million as a receivable, within other assets, relating to the discounted deferred consideration.
Glacier and GVIC complete plan of arrangement
On March 31, 2021, the company and GVIC Communications Corp. completed a plan of arrangement pursuant to which Glacier acquired all of the Class B voting common shares and Class C non-voting shares of GVIC not already held by Glacier and its subsidiary, and by a wholly owned limited partnership of GVIC. Shareholders of GVIC received, for each GVIC share held, 0.8 of a common share of Glacier. The transaction resulted in the issuance of 7,542,213 new Glacier common shares.
The transaction has been accounted for as a reduction of non-controlling interests, additional share capital and additional contributed surplus.
Outlook
Over all, the company expects that as time progresses, and the pandemic abates, revenues will recover. 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 yet generate profit.
Financial position
As at March 31, 2021, the company had no senior debt and current and long-term debt totalled $2.6-million.
The company has net $7.7-million of deferred purchase price obligations to be paid over the next four years. This amount is net of $5.0-million in contributions from minority partners. The company has a $7.5-million vendor takeback receivable to be paid over the next three years resulting from the sale of the company's interest in Fundata and a $1.2-million potential earnout 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.
For further information please contact Orest Smysnuik, chief financial officer, at 604-708-3264.
About Glacier Media Inc.