Glacier Media Inc. (TSX: GVC) (“Glacier” or the “Company”) reported
revenue and earnings for the period ended March 31, 2024.
SUMMARY RESULTS
(thousands of dollars) |
|
Three months ended March 31, |
|
except share and per share amounts |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
Revenue |
|
$ |
34,750 |
|
|
$ |
39,218 |
|
EBITDA (1) |
|
$ |
(322 |
) |
|
$ |
(2,241 |
) |
EBITDA (1) margin |
|
|
(0.9 |
%) |
|
|
(5.7 |
%) |
EBITDA (1) per share |
|
$ |
(0.00 |
) |
|
$ |
(0.02 |
) |
Capital expenditures |
|
$ |
759 |
|
|
$ |
1,077 |
|
Net loss attributable to common shareholder |
|
$ |
(4,429 |
) |
|
$ |
(5,217 |
) |
Net loss attributable to common shareholder per share |
|
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
Weighted average shares outstanding, net |
|
|
131,131,598 |
|
|
|
132,329,984 |
|
|
|
|
|
|
(1) EBITDA is considered a non-GAAP measure. Refer to
“EBITDA Reconciliation” below for a reconciliation of the Company’s
net (loss) income attributable to common shareholders as reported
under IFRS to EBITDA. |
|
|
|
|
|
Q1 2024 PERFORMANCE
Q1 2024 witnessed the continued transformation
of the business, with a renewed vision of how the Company views its
core businesses and how it will manage legacy operations going
forward. The Company continues to focus on the long-term growth of
its business information and consumer digital businesses. The
Company is optimistic that its core operations can and will
continue to perform well in the long-term and will generate strong
cash flows and enhance shareholder value. The respective brands,
market positions, and value to customers remains strong. The
Company has reduced capital investment to reflect uncertain
economic times but has and will continue to invest in new
technology and products where prudent.
Over the past few quarters, the Company has
moved aggressively to close or sell underperforming print community
media operations to focus on its core businesses. The remaining
print operations continue to perform well, generating cash flow and
providing value to customers and readers. The Company will operate
these businesses while continuing to closely monitor their
performance.
Consolidated revenue for the three months ended
March 31, 2024, was $34.8 million, down $4.5 million or 11.4% from
the same period in the prior year. Consolidated EBITDA loss for the
quarter was $0.3 million, an improvement of $1.9 million from an
EBITDA loss of $2.2 million in the comparative quarter. Capital
expenditures for the period were reduced to $0.8 million from $1.1
million in the comparative quarter.
As a result of its renewed vision, the Company
has revised its operating segments to reflect the focus on the
environmental risk and compliance information, commodity
information, and consumer digital information businesses. Given the
Company’s transformation, it was determined that a change in the
segments better reflects the future of the Company and provides
better insight into its areas of growth separate from the
management of its legacy operations.
The new operating segments provide more insight
into the split between print and digital products and better align
certain operations with similar revenue streams and customers. The
new segments are 1) Environmental Risk and Compliance Information,
which includes ERIS and STP, 2) Commodity Information, which
includes GFM and the mining operations, 3) Consumer Digital
Information, which includes GMD, Castanet and REW, 4) Print
Community Media, which includes all the print community media
operations.
The substantial 11.4% quarter-over-quarter
revenue decline was primarily driven by the closure and sale of
underperforming print community media operations and the sale of
the mining media business. Not including print community media
(where the bulk of the restructuring and sales of business
occurred) overall revenues increased by 1.3%. Lastly, the mix of
revenues shifted between Q1 2024 and Q1 2023; the share of print
community media revenues declined from 26.4% of total revenues in
2023 to 15.9% of total revenues in 2024.
EBITDA in the quarter was a loss of $0.3
million, a $1.9 million improvement over Q1 2023. Not including
print community media, overall EBITDA was breakeven. The
profitability improvement resulted from a combination of
restructuring legacy operations and improved profitability in
several core operating businesses.
Financial Position. As at March
31, 2024, the Company had a cash balance of $6.0 million and $7.1
million of non-recourse mortgages and loans (which relates to land
for the farm shows in Saskatchewan and Ontario).
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.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking
statements that relate to, among other things, the Company’s
objectives, goals, strategies, intentions, plans, beliefs,
expectations, and estimates. These forward-looking statements
include, among other things, statements relating to our
expectations as to the core operations performing well in the
long-term, generation of future cash flows, the reduction of
capital investment, the uncertainty of the economy, the recovery of
the commercial real estate industry, the expectation that print
revenues will decline and the generation of sufficient cash flow
from operations to meet anticipated working capital, capital
expenditures and debt service requirements. These forward-looking
statements are based on certain assumptions, including continued
economic growth and recovery and the realization of cost savings in
a timely manner and in the expected amounts, which are subject to
risks, uncertainties and other factors which may cause results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements, and undue
reliance should not be placed on such statements.
Important factors that could cause actual
results to differ materially from these expectations include
failure to implement or achieve the intended results from our
strategic initiatives, and the other risk factors listed in our
Annual Information Form under the heading “Risk Factors” and in our
MD&A under the heading “Business Environment and Risks”, many
of which are out of our control. These other risk factors include,
but are not limited to that future cash flow from operations and
the availability under existing banking arrangements are believed
to be adequate to support financial liabilities, the ability of the
Company to sell advertising and subscriptions related to its
publications, foreign exchange rate fluctuations, the seasonal and
cyclical nature of the agricultural and energy sectors,
discontinuation of government grants, general market conditions in
both Canada and the United States, changes in the prices of
purchased supplies including newsprint, the effects of competition
in the Company’s markets, dependence on key personnel, integration
of newly acquired businesses, technological changes, tax risk,
financing risk, debt service risk and cybersecurity risk.
The forward-looking statements made in this news
release relate only to events or information as of the date on
which the statements are made. Except as required by law, the
Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
NON-IFRS FINANCIAL MEASURES
Earnings before interest, taxes, depreciation
and amortization (“EBITDA”), EBITDA margin and EBITDA per share,
are not generally accepted measures of financial performance under
IFRS. Management utilizes EBITDA as a financial performance measure
to assess profitability and return on equity in its decision
making. In addition, the Company, its lenders and its investors use
EBITDA to measure performance and value for various purposes.
Investors are cautioned; however, that EBITDA should not be
construed as an alternative to net income (loss) attributable to
common shareholders determined in accordance with IFRS as an
indicator of the Company’s performance.
The Company’s method of calculating these
financial performance measures may differ from other companies and,
accordingly, they may not be comparable to measures used by other
companies. A quantitative reconciliation of these non-IFRS measures
is included in the section entitled EBITDA Reconciliation.
EBITDA RECONCILIATION
(thousands of dollars) |
|
Three months ended March 31, |
except share and per share amounts |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
Net loss attributable to common shareholders |
|
$ |
(4,429 |
) |
|
$ |
(5,217 |
) |
Add (deduct): |
|
|
|
|
Non-controlling interests |
|
$ |
(73 |
) |
|
$ |
(3,637 |
) |
Interest expense, net |
|
$ |
1,448 |
|
|
$ |
295 |
|
Depreciation and amortization |
|
$ |
2,970 |
|
|
$ |
2,972 |
|
(Gain) loss on disposal, net |
|
$ |
(210 |
) |
|
$ |
5,982 |
|
Other income |
|
$ |
(621 |
) |
|
$ |
- |
|
Restructuring and other expenses (net) |
|
$ |
1,608 |
|
|
$ |
305 |
|
Share of earnings |
|
|
|
|
from joint ventures and associates |
|
$ |
(322 |
) |
|
$ |
(98 |
) |
Income tax recovery |
|
$ |
(693 |
) |
|
$ |
(2,843 |
) |
EBITDA (1) |
|
$ |
(322 |
) |
|
$ |
(2,241 |
) |
Notes: |
|
|
|
|
(1) Refer to "Non-IFRS Measures" section of MD&A for discussion
of non-IFRS measures used in this table. |
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