MONTREAL, May 8, 2023
/CNW/ - TVA Group Inc. ("TVA Group" or the "Corporation") announced
today that it recorded revenues in the amount of $136.1 million for the first quarter of 2023, a
year-over-year decrease of $8.4
million. Net loss attributable to shareholders was
$23.5 million or $0.54 per share, compared with net loss
attributable to shareholders of $13.0 million or $0.30 per share for the same quarter of 2022.
First quarter operating highlights:
- $23,977,000 in consolidated
negative adjusted EBITDA1, a $14,256,000 unfavourable variance from the same
quarter of 2022.
- $22,806,000 in negative adjusted
EBITDA1 in the Broadcasting segment, a $7,338,000 unfavourable variance mainly due to a
decrease in profitability at TVA Network, which increased its
investments in content, and to a decrease in adjusted EBITDA at the
news and entertainment specialty channels due to lower revenues.
The variances were partially offset by a decrease in the loss for
"TVA Sports" due to a combination of lower expenses and higher
revenues.
- $555,000 in negative adjusted
EBITDA1 in the Film Production & Audiovisual
Services segment ("MELS"), a $4,399,000 unfavourable variance
caused primarily by the decreased profitability of soundstage,
mobile and equipment rental, whereas all other segment activities
posted an increase in profitability.
- $367,000 in negative adjusted
EBITDA1 in the Magazines segment, an $807,000 unfavourable variance due mainly to
lower revenues, particularly reduced government assistance, as well
as lower advertising and subscription revenues.
- $355,000 in negative adjusted
EBITDA1 in the Production & Distribution segment, an
unfavourable variance of $1,908,000 reflecting fewer
deliveries of films produced by companies in the Incendo Group
("Incendo") during the period compared with the same period of
2022, when a number of new film sales were recognized.
_______________________
|
1 See
definition of adjusted EBITDA below.
|
"First quarter results continued to be impacted by declining
profitability across all our segments. Even with the implementation
of our restructuring plan, announced on February 16, 2023, our cost-reduction measures,
while not yet at their full potential during the period, were not
sufficient to offset the impact of the challenges faced by the
various industries in which we operate," said Pierre Karl Péladeau,
acting President and CEO of TVA Group.
"Results in the Broadcasting segment reflect the impact of our
continued investments in content, which inevitably affected the
profitability of our over-the-air network. Although advertising
revenues grew, driven by our TVA+ platform, where views and
digital revenues for video-on-demand services increased 30% and 33%
respectively, they remain uncertain due to current market
conditions and were insufficient to support the level of investment
required to compete with the Web giants and Radio-Canada, which is
heavily government subsidized. We are forced to fight on an uneven
playing field against players that capture a large share of the
advertising revenues, further undermining Quebec's already fragile media and current
television ecosystem.
"Our strategy of increasing our content investment continues to
protect our market share, both for TVA Network and for our
specialty services. TVA Network had 4 of the top 5 shows in
Quebec in the first quarter,
including the new reality TV show Sortez-moi d'ici!, which
took the top spot with an average audience of nearly 1.7 million
viewers, and La Voix, which stood out with nearly 1.6
million viewers.
"While the recent passage of Bill C-11 is a step in the right
direction, we continue to urge governmental authorities to act
quickly on the other outstanding issues before it is too late. For
example, the CRTC must take urgent action to address Radio-Canada's
unfair behaviour in scooping up advertising dollars, which are our
over-the-air network's only source of revenues, as well as
distributor Bell TV's highly prejudicial treatment of our specialty
channels by continuing to pay below-market fees. Parliament must
also act quickly to pass Bill C-18 and ensure that the use of our
news content is recognized and paid for at fair value by the
digital giants that are currently siphoning advertising dollars
away from Canadian businesses.
"In the Film Production & Audiovisual Services segment, the
Corporation was particularly affected by a decrease in soundstage,
mobile and equipment rental services, which continue to suffer from
the lack of a foreign blockbuster. This is a very different
situation from the same period of 2022, when Disney rented
part of our studios. While MELS continued to make every effort to
attract major foreign shoots to its studios, it is important to
reiterate that the competition on tax incentives continues, both in
Canada and abroad, and the
Quebec government must act to
allow our cultural industry and our economy to benefit from the
positive spin-offs associated with the presence of foreign
productions.
"In the Magazines segment, results for all our titles were
heavily affected by lower revenues. The significant reduction in
government assistance is of particular concern for this segment,
which has been coping with a significant market decline for a
number of years and for which the Canada Periodical Fund has been a
critical source of support. As a leading publisher in the
French-language market, we produce titles that showcase our talent
and local culture and we will continue to make our case to the
government to put an end to the reduction in assistance to ensure
the survival of this medium.
"Our Production & Distribution segment reported a lower
volume of activities for the first three months of the year, as it
focused on finalizing films that began production in 2022. Incendo
delivered its first series co-produced with Ireland in the first quarter and completed
production on two films for Tubi, which will be delivered in the
coming months. Tubi reaffirmed its confidence in Incendo by placing
an initial film order for 2023 and continuing to contribute to
revenue growth by making our films available on its streaming
platform," concluded Mr. Péladeau.
Definition
Adjusted EBITDA
In its analysis of operating results, the Corporation defines
adjusted EBITDA as net income (loss) before depreciation and
amortization, financial expenses (income), operational
restructuring costs and other, income tax expense (recovery) and
share of income of associates. Adjusted EBITDA as defined above is
not a measure of results that is consistent with International
Financial Reporting Standards ("IFRS"). It is not intended to be
regarded as an alternative to other financial operating performance
measures or to the statement of cash flows as a measure of
liquidity. This measure should not be considered in isolation or as
a substitute for other performance measures prepared in accordance
with IFRS. This measure is used by management and the Board of
Directors to evaluate the Corporation's consolidated results and
the results of its segments. This measure eliminates the
significant level of impairment, depreciation and amortization of
tangible and intangible assets and is unaffected by the capital
structure or investment activities of the Corporation and its
segments. Adjusted EBITDA is also relevant because it is a
significant component of the Corporation's annual incentive
compensation programs. The Corporation's definition of adjusted
EBITDA may not be identical to similarly titled measures reported
by other companies.
Forward-looking information disclaimer
The statements in this news release that are not historical
facts may be forward-looking statements and are subject to
important known and unknown risks, uncertainties and assumptions
which could cause the Corporation's actual results for future
periods to differ materially from those set forth in the
forward-looking statements. Forward-looking statements generally
can be identified by the use of the conditional, the use of
forward-looking terminology such as "propose," "will," "expect,"
"may," "anticipate," "intend," "estimate," "plan," "foresee,"
"believe" or the negative of these terms or variations of them or
similar terminology. Certain factors that may cause actual results
to differ from current expectations include seasonality,
operational risks (including pricing actions by competitors and the
risk of loss of key customers in the Film Production &
Audiovisual Services and Production & Distribution segments),
programming, content and production cost risks, credit risk,
government regulation risks, government assistance risks, changes
in economic conditions, fragmentation of the media landscape, risk
related to the Corporation's ability to adapt to fast-paced
technological change and to new delivery and storage methods,
labour relation risks, and the risks related to public health
emergencies, including COVID-19, as well as any emergency measures
implemented by government.
Investors and others are cautioned that the foregoing list of
factors that may affect future results is not exhaustive and that
undue reliance should not be placed on any forward-looking
statements. For more information on the risks, uncertainties and
assumptions that could cause the Corporation's actual results to
differ from current expectations please refer to the Corporation's
public filings available at www.sedar.com and www.groupetva.ca,
including, in particular, the "Risks and Uncertainties" section of
the Corporation's annual Management's Discussion and Analysis for
the year ended December 31, 2022.
The forward-looking statements in this news release reflect the
Corporation's expectations as of May 8,
2023, and are subject to change after this date. The
Corporation expressly disclaims any obligation or intention to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, unless
required to do so by the applicable securities laws.
TVA Group
TVA Group Inc., a subsidiary of Quebecor Media Inc., is a
communications company engaged in the broadcasting, film production
and audiovisual services, international production and distribution
of television content, and magazine publishing industries. TVA
Group Inc. is North America's
largest broadcaster of French-language entertainment, information
and public affairs programming and one of the largest
private-sector producers of French-language content. It is also the
largest publisher of French-language magazines and publishes some
of the most popular English-language titles in Canada. The Corporation's Class B shares are
listed on the Toronto Stock Exchange under the ticker symbol
TVA.B.
The condensed consolidated Financial Statements, with notes, and
the interim Management's Discussion and Analysis for the
three-month period ended March 31,
2023, can be consulted on the Corporation's website at
www.groupetva.ca.
TVA GROUP INC.
Consolidated statements of
loss
(unaudited)
(in thousands of Canadian dollars, except per-share amounts)
Three-month
periods
ended March
31
|
|
Note
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
2
|
$
|
136,103
|
$
|
144,497
|
|
|
|
|
|
|
Purchases of goods and
services
|
3
|
|
123,742
|
|
115,624
|
Employee
costs
|
|
|
36,338
|
|
38,594
|
Depreciation and
amortization
|
|
|
7,182
|
|
7,620
|
Financial (income)
expenses
|
4
|
|
(118)
|
|
500
|
Operational
restructuring costs and other
|
5
|
|
902
|
|
20
|
Loss before income
tax recovery and share of income
of associates
|
|
|
(31,943)
|
|
(17,861)
|
|
|
|
|
|
|
Income tax
recovery
|
|
|
(8,319)
|
|
(4,597)
|
|
|
|
|
|
|
Share of income of
associates
|
|
|
(91)
|
|
(249)
|
Net
loss
|
|
$
|
(23,533)
|
$
|
(13,015)
|
|
|
|
|
|
|
Net (loss) income
attributable to:
|
|
|
|
|
|
Shareholders
|
|
$
|
(23,533)
|
$
|
(13,016)
|
Non-controlling
interest
|
|
|
–
|
|
1
|
|
|
|
|
|
|
Basic and diluted
loss per share attributable
to shareholders
|
|
$
|
(0.54)
|
$
|
(0.30)
|
Weighted average
number of shares outstanding and diluted shares
|
|
|
43,205,535
|
|
43,205,535
|
See accompanying notes
to condensed consolidated financial statements.
|
TVA GROUP INC.
Consolidated statements of comprehensive
loss
(unaudited)
(in thousands of Canadian dollars)
Three-month
periods
ended March
31
|
|
Note
|
2023
|
2022
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(23,533)
|
$
|
(13,015)
|
|
|
|
|
|
|
Other comprehensive
items that will not be reclassified to loss:
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
Re-measurement
gain
|
8
|
|
–
|
|
14,500
|
Deferred income
taxes
|
|
|
–
|
|
(3,800)
|
|
|
|
–
|
|
10,700
|
|
|
|
|
|
|
Comprehensive
loss
|
|
$
|
(23,533)
|
$
|
(2,315)
|
|
|
|
|
|
|
Comprehensive (loss)
income attributable to:
|
|
|
|
|
|
Shareholders
|
|
$
|
(23,533)
|
$
|
(2,316)
|
Non-controlling
interest
|
|
|
–
|
|
1
|
See accompanying notes
to condensed consolidated financial statements.
|
TVA GROUP INC.
Consolidated statements of
equity
(unaudited)
(in thousands of Canadian dollars)
|
Equity attributable
to shareholders
|
Equity
attributable
to non-
controlling
interest
|
Total
equity
|
|
Capital
stock
(note 6)
|
Contributed
surplus
|
Retained
earnings
|
Accumula-
ted other
compre-
hensive
income –
Defined
benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
December 31, 2021
|
$
|
207,280
|
$
|
581
|
$
|
138,679
|
$
|
32,714
|
$
|
1,210
|
$
|
380,464
|
Net (loss)
income
|
|
–
|
|
–
|
|
(13,016)
|
|
–
|
|
1
|
|
(13,015)
|
Other comprehensive
income
|
|
–
|
|
–
|
|
–
|
|
10,700
|
|
–
|
|
10,700
|
Balance as at March
31, 2022
|
|
207,280
|
|
581
|
|
125,663
|
|
43,414
|
|
1,211
|
|
378,149
|
Net income
(loss)
|
|
–
|
|
–
|
|
4,147
|
|
–
|
|
(21)
|
|
4,126
|
Dividends
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(1,190)
|
|
(1,190)
|
Other comprehensive
income
|
|
–
|
|
–
|
|
–
|
|
12,291
|
|
–
|
|
12,291
|
Balance as at
December 31, 2022
|
|
207,280
|
|
581
|
|
129,810
|
|
55,705
|
|
–
|
|
393,376
|
Net loss
|
|
–
|
|
–
|
|
(23,533)
|
|
–
|
|
–
|
|
(23,533)
|
Balance as at March
31, 2023
|
$
|
207,280
|
$
|
581
|
$
|
106,277
|
$
|
55,705
|
$
|
–
|
$
|
369,843
|
See accompanying notes
to condensed consolidated financial statements.
|
TVA GROUP INC.
Consolidated balance sheets
(unaudited)
(in thousands of Canadian dollars)
|
March 31,
2023
|
December 31,
2022
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Accounts
receivable
|
$
|
160,532
|
$
|
175,174
|
Income
taxes
|
|
19,103
|
|
8,522
|
Audiovisual
content
|
|
125,026
|
|
135,038
|
Prepaid
expenses
|
|
10,426
|
|
4,400
|
|
|
315,087
|
|
323,134
|
Non-current
assets
|
|
|
|
|
Audiovisual
content
|
|
90,244
|
|
88,225
|
Investments
|
|
12,108
|
|
12,017
|
Property, plant and
equipment
|
|
153,210
|
|
157,784
|
Right-of-use
assets
|
|
7,031
|
|
7,599
|
Intangible
assets
|
|
13,086
|
|
14,671
|
Goodwill
|
|
21,696
|
|
21,696
|
Defined benefit plan
asset
|
|
44,716
|
|
45,111
|
Deferred income
taxes
|
|
5,169
|
|
5,833
|
|
|
347,260
|
|
352,936
|
Total
assets
|
$
|
662,347
|
$
|
676,070
|
TVA GROUP INC.
Consolidated balance sheets
(continued)
(unaudited)
(in thousands of Canadian dollars)
|
Note
|
March 31,
2023
|
December 31,
2022
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank
overdraft
|
|
$
|
3,213
|
$
|
1,107
|
Accounts payable,
accrued liabilities and provisions
|
|
|
113,319
|
|
114,174
|
Content rights
payable
|
|
|
143,996
|
|
124,394
|
Deferred
revenues
|
|
|
9,060
|
|
11,031
|
Income
taxes
|
|
|
561
|
|
562
|
Current portion of
lease liabilities
|
|
|
1,898
|
|
2,318
|
Short-term
debt
|
|
|
–
|
|
8,961
|
|
|
|
272,047
|
|
262,547
|
Non-current
liabilities
|
|
|
|
|
|
Lease
liabilities
|
|
|
6,025
|
|
6,453
|
Other
liabilities
|
|
|
5,743
|
|
5,395
|
Deferred income
taxes
|
|
|
8,689
|
|
8,299
|
|
|
|
20,457
|
|
20,147
|
Equity
|
|
|
|
|
|
Capital
stock
|
6
|
|
207,280
|
|
207,280
|
Contributed
surplus
|
|
|
581
|
|
581
|
Retained
earnings
|
|
|
106,277
|
|
129,810
|
Accumulated other
comprehensive income
|
|
|
55,705
|
|
55,705
|
Equity
|
|
|
369,843
|
|
393,376
|
Total liabilities
and equity
|
|
$
|
662,347
|
$
|
676,070
|
See accompanying notes
to condensed consolidated financial statements.
|
TVA GROUP INC.
Consolidated statements of cash
flows
(unaudited)
(in thousands of Canadian dollars)
Three-month
periods
ended March
31
|
|
|
2023
|
2022
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
Net loss
|
|
$
|
(23,533)
|
$
|
(13,015)
|
Adjustments
for:
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
7,182
|
|
7,620
|
Share of income of
associates
|
|
|
(91)
|
|
(249)
|
Deferred income
taxes
|
|
|
1,054
|
|
(980)
|
Other
|
|
|
13
|
|
13
|
|
|
|
(15,375)
|
|
(6,611)
|
Net change in non-cash
balances related to operating items
|
|
|
24,937
|
|
(3,991)
|
Cash flows provided by
(used in) operating activities
|
|
|
9,562
|
|
(10,602)
|
|
|
|
|
|
|
Cash flows related
to investing activities
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(1,667)
|
|
(5,196)
|
Additions to
intangible assets
|
|
|
(125)
|
|
(423)
|
Cash flows used in
investing activities
|
|
|
(1,792)
|
|
(5,619)
|
|
|
|
|
|
|
Cash flows related
to financing activities
|
|
|
|
|
|
Net change in bank
overdraft
|
|
|
2,106
|
|
1,574
|
Net change in
revolving credit facility
|
|
|
(8,970)
|
|
12,990
|
Repayment of lease
liabilities
|
|
|
(853)
|
|
(796)
|
Other
|
|
|
(53)
|
|
(53)
|
Cash flows (used in)
provided by financing activities
|
|
|
(7,770)
|
|
13,715
|
|
|
|
|
|
|
Net change in
cash
|
|
|
–
|
|
(2,506)
|
Cash at beginning of
period
|
|
|
–
|
|
5,181
|
Cash at end of
period
|
|
$
|
–
|
$
|
2,675
|
|
|
|
|
|
|
Interest and income
taxes reflected as operating activities
|
|
|
|
|
|
Net interest
paid
|
|
$
|
298
|
$
|
294
|
Income taxes
paid
|
|
|
1,209
|
|
3,817
|
See accompanying notes
to condensed consolidated financial statements.
|
TVA GROUP INC.
Notes to condensed consolidated financial
statements
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
TVA Group Inc. ("TVA Group" or the "Corporation")
is governed by the Quebec
Business Corporations Act. TVA Group is a
communications company engaged in broadcasting, film production
& audiovisual services, international production &
distribution of television content, and magazine publishing (note
9). The Corporation is a subsidiary of
Quebecor Media Inc. ("Quebecor Media" or the "parent
corporation") and its ultimate parent corporation is
Quebecor Inc. ("Quebecor"). The Corporation's head office is
located at 1600 de Maisonneuve Boulevard East, Montreal, Quebec, Canada.
The Corporation's businesses experience significant seasonality
due to, among other factors, seasonal advertising patterns,
consumers' viewing, reading and listening habits, demand for
production services from international and local producers, and
demand for content from global broadcasters. Because the
Corporation depends on the sale of advertising for a significant
portion of its revenues, operating results are also sensitive to
prevailing economic conditions, including changes in local,
regional and national economic conditions, particularly as they may
affect advertising spending. In view of the seasonal nature of some
of the Corporation's activities, the results of operations for
interim periods should not necessarily be considered indicative of
full-year results.
TVA GROUP INC.
Notes to condensed consolidated
financial statements (continued)
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
1. Basis of presentation
These consolidated financial statements were prepared in
accordance with the International Financial Reporting Standards
("IFRS") issued by the International Accounting Standards Board
("IASB"), except that they do not include all disclosures required
under IFRS for annual consolidated financial statements. In
particular, these consolidated financial statements were prepared
in accordance with IAS 34, Interim Financial Reporting, and
accordingly are condensed consolidated financial statements. These
condensed consolidated financial statements should be read in
conjunction with the Corporation's 2022 annual consolidated
financial statements, which describe the accounting policies used
to prepare these condensed consolidated financial statements.
These condensed consolidated financial statements were approved
by the Corporation's Board of Directors
on May 8, 2023.
Certain comparative figures for the three-month period ended
March 31, 2022 have been restated to
conform to the presentation adopted for the three-month period
ended March 31, 2023.
2. Revenues
Three-month
periods
ended March
31
|
|
2023
|
2022
|
|
|
|
|
|
Advertising
services
|
$
|
68,780
|
$
|
66,468
|
Royalties
|
|
33,309
|
|
34,253
|
Rental, postproduction
and distribution services and other services rendered
(1)
|
|
20,709
|
|
29,801
|
Product sales
(2)
|
|
13,305
|
|
13,975
|
|
$
|
136,103
|
$
|
144,497
|
(1)
|
Revenues from rental of
soundstages, mobiles, equipment and rental space amounted to
$4,226,000 for the three-month period ended March 31, 2023
($9,573,000 for the same period of 2022). Service revenues also
include the activities of the Production & Distribution
segment.
|
(2)
|
Revenues from product
sales include newsstand and subscription sales of magazines and
sales of audiovisual content.
|
TVA GROUP INC.
Notes to condensed consolidated financial
statements (continued)
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
3. Purchases of goods and services
Three-month
periods
ended March
31
|
|
2023
|
2022
|
|
|
|
|
|
Rights and audiovisual
content costs
|
$
|
96,251
|
$
|
88,403
|
Printing and
distribution
|
|
3,303
|
|
3,678
|
Services rendered by
the parent corporation:
|
|
|
|
|
-
Commissions on advertising
sales
|
|
6,129
|
|
6,632
|
-
Other
|
|
2,457
|
|
2,384
|
Building
costs
|
|
4,390
|
|
4,462
|
Marketing, advertising
and promotion
|
|
4,309
|
|
4,128
|
Other
|
|
6,903
|
|
5,937
|
|
$
|
123,742
|
$
|
115,624
|
4. Financial (income) expenses
Three-month
periods
ended March
31
|
|
|
2023
|
2022
|
|
|
|
|
|
|
Interest on
debt
|
|
$
|
249
|
$
|
191
|
Amortization of
financing costs
|
|
|
13
|
|
13
|
Interest on lease
liabilities
|
|
|
102
|
|
119
|
Interest income related
to defined benefit plans
|
|
|
(504)
|
|
(111)
|
Foreign exchange
loss
|
|
|
92
|
|
196
|
Other
|
|
|
(70)
|
|
92
|
|
|
$
|
(118)
|
$
|
500
|
TVA GROUP INC.
Notes to condensed consolidated
financial statements (continued)
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
5. Operational restructuring costs and
other
Three-month
periods
ended March
31
|
|
2023
|
2022
|
|
|
|
|
|
Operational
restructuring costs
|
$
|
902
|
$
|
37
|
Other
|
|
–
|
|
(17)
|
|
$
|
902
|
$
|
20
|
Operational restructuring costs
For the three-month periods ended March
31, 2023 and 2022, the segment breakdown of the
Corporation's operational restructuring costs in connection with
the elimination of positions and the implementation of cost
reduction initiatives is as follows:
Three-month
periods
ended March
31
|
|
2023
|
2022
|
|
|
|
|
|
Broadcasting
|
$
|
585
|
$
|
37
|
Film Production &
Audiovisual Services
|
|
174
|
|
–
|
Magazines
|
|
111
|
|
–
|
Production &
Distribution
|
|
32
|
|
–
|
|
$
|
902
|
$
|
37
|
TVA GROUP INC.
Notes to condensed consolidated financial
statements (continued)
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
6. Capital stock
(a) Authorized capital stock
An unlimited number of Class A common shares,
participating, voting, without par value.
An unlimited number of Class B shares,
participating, non-voting, without par value.
An unlimited number of preferred shares,
non-participating, non-voting, with a par value of $10 each, issuable in series.
(b) Issued and outstanding capital stock
|
March 31,
2023
|
December 31,
2022
|
|
|
|
|
|
4,320,000 Class A
common shares
|
$
|
72
|
$
|
72
|
38,885,535 Class B
shares
|
|
207,208
|
|
207,208
|
|
$
|
207,280
|
$
|
207,280
|
7. Stock-based compensation and other stock-based
payments
(a) Stock option plans
Outstanding
options
|
|
Number
|
Weighted average
exercise price
|
|
|
|
|
Groupe
TVA
|
|
|
|
Balance as at December
31, 2022
|
519,503
|
$
|
2.29
|
Cancelled
|
(30,000)
|
|
1.40
|
Balance as at March
31, 2023
|
489,503
|
$
|
2.34
|
Vested options as at
March 31, 2023
|
106,498
|
$
|
3.23
|
|
|
|
|
Quebecor
|
|
|
|
Balance as at December
31, 2022
|
244,216
|
$
|
30.36
|
Cancelled
|
(25,000)
|
|
33.19
|
Balance as at March
31, 2023
|
219,216
|
$
|
30.04
|
Vested options as at
March 31, 2023
|
47,330
|
$
|
28.63
|
TVA GROUP INC.
Notes to condensed consolidated financial
statements (continued)
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
7. Stock-based compensation and other stock-based
payments (continued)
(b) Deferred stock unit ("DSU") plan for directors
|
Outstanding
units
|
|
|
Corporation stock
units
|
|
|
|
|
|
Balance as at December
31, 2022
|
|
|
|
446,934
|
Granted
|
|
|
|
16,499
|
Balance as at March
31, 2023
|
|
|
|
463,433
|
(c) Stock-based compensation expense
For the three-month period ended March
31, 2023, a $566,000
compensation expense was recorded in respect of all stock-based
compensation plans ($469,000 for the
same period of 2022).
8. Pension plans and postretirement
benefits
The gain on remeasurement of defined benefit plans recognized in
the consolidated statement of comprehensive loss for the
three-month period ended March 31,
2022 mainly reflects the increase in the discount rate.
9. Segmented information
The Corporation's operations consist of the following
segments:
- The Broadcasting segment, which includes the operations
of TVA Network, specialty services, the marketing of digital
products associated with the various televisual brands, and
commercial production and custom publishing services, including
those of its Communications Qolab inc. subsidiary;
- The Film Production & Audiovisual Services segment,
which through its subsidiaries Mels Studios and Postproduction G.P.
and Mels Dubbing Inc. provides soundstage, mobile and production
equipment rental services, as well as dubbing and described video
("media accessibility services"), postproduction and virtual
production;
- The Magazines segment, which through its TVA
Publications inc. subsidiary publishes magazines in various fields
including the arts, entertainment, television, fashion and
decorating, and markets digital products associated with the
various magazine brands;
- The Production & Distribution segment, which through
the companies in the Incendo group and the TVA Films division
produces and distributes television shows, movies and television
series for the world market.
TVA GROUP INC.
Notes to condensed consolidated
financial statements (continued)
Three-month periods ended March 31,
2023 and 2022 (unaudited)
(Tabular amounts are expressed in thousands of Canadian dollars,
except per share and per option amounts)
9. Segmented information (continued)
|
Three-month
periods
ended March
31
|
|
|
2023
|
|
2022
|
|
|
|
|
|
Revenues
|
|
|
|
|
Broadcasting
|
$
|
116,010
|
$
|
114,139
|
Film Production &
Audiovisual Services
|
|
14,272
|
|
19,351
|
Magazines
|
|
8,647
|
|
9,661
|
Production &
Distribution
|
|
2,341
|
|
5,980
|
Intersegment
items
|
|
(5,167)
|
|
(4,634)
|
|
|
136,103
|
|
144,497
|
(Negative adjusted
EBITDA) adjusted EBITDA (1)
|
|
|
|
|
Broadcasting
|
|
(22,806)
|
|
(15,468)
|
Film Production &
Audiovisual Services
|
|
(555)
|
|
3,844
|
Magazines
|
|
(367)
|
|
440
|
Production &
Distribution
|
|
(355)
|
|
1,553
|
Intersegment
items
|
|
106
|
|
(90)
|
|
|
(23,977)
|
|
(9,721)
|
|
|
|
|
|
Depreciation and
amortization
|
|
7,182
|
|
7,620
|
Financial (income)
expenses
|
|
(118)
|
|
500
|
Operational
restructuring costs and other
|
|
902
|
|
20
|
Loss before income
tax recovery and
share of income of
associates
|
$
|
(31,943)
|
$
|
(17,861)
|
The above-noted intersegment items represent the elimination of
normal course business transactions between the Corporation's
business segments.
(1)
|
The Chief Executive
Officer uses adjusted EBITDA as a measure of financial performance
for assessing the performance of each of the Corporation's
segments. Adjusted EBITDA is defined as net income (loss) before
depreciation and amortization, financial (income) expenses,
operational restructuring costs and other, income tax recovery and
share of income of associates. Adjusted EBITDA as defined above is
not a measure of results that is consistent with IFRS.
|
SOURCE TVA Group