(MENAFN- GlobeNewsWire - Nasdaq) VANCOUVER, British Columbia, March 22, 2023 (GLOBE NEWSWIRE) -- Glacier Media Inc. (TSX: GVC) (“Glacier” or the“Company”) reported revenue and earnings for the year ended December 31, 2022.
SUMMARY RESULTS
(thousands of dollars) | | |
except share and per share amounts | | | 2022 | | | | 2021 | |
| | | | |
Revenue | | $ | 176,012 | | | $ | 164,562 | |
EBITDA (1) | | $ | 3,083 | | | $ | 17,747 | |
EBITDA (1) margin | | | 1.8% | | | | 10.8% | |
EBITDA (1) per share | | $ | 0.02 | | | $ | 0.14 | |
Capital expenditures | | $ | 4,945 | | | $ | 9,566 | |
Net loss attributable to common shareholder | | $ | (29,553 | ) | | $ | (4,880 | ) |
Net loss attributable to common shareholder per share | | $ | (0.22 | ) | | $ | (0.04 | ) |
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Weighted average shares outstanding, net | | | 132,558,408 | | | | 130,895,835 | |
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Results including joint ventures and associates: | | | | |
Revenue (2) | | $ | 209,903 | | | $ | 195,958 | |
EBITDA (2) | | $ | 6,353 | | | $ | 23,487 | |
EBITDA margin (2) | | | 3.0% | | | | 12.0% | |
EBITDA per share (2) | | $ | 0.05 | | | $ | 0.18 | |
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(1) | EBITDA is considered a non-GAAP measure. Refer to“EBITDA Reconciliation” below for a reconciliation of the Company's net loss attributable to common shareholders as reported under IFRS to EBITDA. |
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(2) | 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. Results including joint ventures and associates is a non-GAAP measure. Refer to“Results Including Joint Ventures and Associates Reconciliation” below. |
2022 OPERATING PERFORMANCE AND OUTLOOK
Operating Performance
Consolidated revenue for the year ended December 31, 2022, was $176.0 million, up $11.5 million or 7.0% from the same period in the prior year. The increase was primarily the result of growth in most of the Company's businesses due to stronger operating performance from healthy industry conditions, and the return to in-person outdoor agricultural exhibition shows. Growth occurred in the first nine months of 2022, then was partially offset by weakened industry performance in the last few months of 2022, due to general economic uncertainty, and the impact of rising interest rates, and the continued decline of print media.
Consolidated EBITDA for the year was $3.1 million, down $14.6 million from $17.7 million for the prior year. The $14.7 million decrease was the result of several factors including a) $5.2 million reduction in the Canadian Emergency Wage Subsidy (which ended in October 2021), b) $3.0 million related to the share-based compensation plan in certain business units resulting in a non-cash expense, of which $1.7 million related to the initial implementation of the plan in April 2022, c) increased operating expense investment in several growth areas, d) rising costs related to inflation, and e) supply chain constraints. Profit was also impacted by declining demand for print media, softness affecting the mining operations and agricultural industry consolidation affecting GFM.
The Company experienced an improvement in market conditions in a variety of its businesses in the first half of the year; however, economic uncertainty, especially in the last quarter of 2022 contributed to softer results overall for the year. The Company is continually monitoring conditions and will respond accordingly as required.
Outlook
The Company continues to focus on a combination of generating revenue gains in its growth businesses and cost management in its legacy businesses. Operational profits were impacted during the year by continued operating investments made in key strategic development areas. These investments are being scaled back until the economic outlook becomes more certain. The Company is monitoring economic conditions and will respond accordingly as required.
Softness in the residential and commercial real estate markets affected operations in the latter part of the year. Declines in print products reduced profitability during the year, which is largely due to the maturation of the print industry overall. Impairments were recorded within certain operations as a result of the declines in print media. It is expected that industry specific softness will continue into the beginning of 2023 with overall economic uncertainty, inflation, and the impact of increased interest rates. Although uncertainty, it is expected that the pressures from increased interest rates will ease in the second half of 2023.
Despite the economic downturn, the Company is optimistic that its operations can and will continue to perform well in the long-term. The respective brands, market positions and value to customers have remained strong. The Company continues to focus on the long-term growth of its data and information and digital media operations. Strategic investment spending in the core areas of focus has resulted in lower operating profits in the short term, with the goal of improved and more robust product offerings over time. This investment spending will become more targeted to strictly necessary spending and be scaled back until economic recovery is more certain. The Company has implemented some cost cutting measures that will begin to take effect in early 2023.
Digital advertising revenues continue to grow. The Company and its partners are seeing that it is feasible to operate local digital media businesses on a standalone basis without newspapers and can be operated with newspaper staff as well as new staff.
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 has made progress in this regard and can operate at lower levels of revenue from its digital media, data and information operations in the future.
Financial Position. As at December 31, 2022, the Company had a cash balance of $19.6 million and $7.6 million of non-recourse mortgages and loans (the majority of which relates to farm show land in Saskatchewan and Ontario).
The Company has net $5.6 million of deferred purchase price obligations to be paid over the next two years. This amount is net of contributions from minority partners. The Company has a $2.5 million vendor-take back receivable to be paid in 2023 resulting from the sale of the Company's interest in Fundata and an estimated $0.9 million potential earn-out proceeds receivable over the next two years from the sale of the energy business.
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