MONTREAL, CANADA -- (Marketwire) -- 02/28/13 -- TVA Group Inc. (the "Corporation") (TSX: TVA.B) announces that it recorded net income attributable to shareholders in the amount of $9.4 million, or $0.40 per share, in the fourth quarter of 2012, compared with $11.5 million, or $0.48 per share, in the same quarter of 2011.
Fourth quarter operating highlights:
-- Operating income(1) in the Television segment up $1,006,000 (5.6%) to $19,103,000, mainly because of: -- positive impact on operating income of the deconsolidation of the results of SUN News since July 1, 2012; -- $2,402,000 increase in operating income at the specialty services; Partially offset by: -- the decrease in operating income at TVA Network due mainly to a 5.6% decline in its advertising revenues.-- Operating income in the Publishing segment down $697,000 (-27.2%) to $1,863,000, mainly because of an overall 4.9% decrease in its operating revenues.
"The Television segment's fourth quarter 2012 financial results were impacted by the decrease in TVA Network's advertising revenues, which were flat for fiscal 2012 as a whole," said Pierre Dion, President and CEO of the Corporation. "The combined market shares of TVA Group's channels grew by 6.3% to 33.5 shares for the period of October 1 to December 31, 2012. The total revenues of our French-language specialty services grew 21.3% in the fourth quarter of 2012 and 33.6% in 2012 as a whole".
"The Publishing segment's operating margin was 10.7% despite the decreases in advertising revenues and in newsstand revenues in the last quarter of 2012. Efforts are continuing to launch new initiatives and brand strategies in order to generate new revenue streams in the Publishing segment in 2013."
Cash flows provided by operating activities totalled $12.6 million for the quarter, compared with $2.8 million in the same quarter of 2011. The $9.8 million increase was essentially due to the favourable variance in non-cash items, particularly accounts receivable.
(1) Refer to definition of operating income (loss) on the next page.
For the fiscal year ended December 31, 2012, the Corporation's consolidated operating income was $45.6 million, compared with $50.5 million in the previous year. The 9.8% decrease was due entirely to the Publishing segment and resulted mainly from the increase in operating expenses caused by the fees set for 2010, 2011 and 2012 for business contributions to the cost of waste recovery services (Bill 88), combined with lower operating revenues in the segment. Consolidated operating revenues totalled $457.4 million, compared with $445.5 million in 2011, a 2.7% increase. During the same period, the Corporation recorded a net loss attributable to shareholders in the amount of $4.1 million, or $0.17 per share, compared with net income attributable to shareholders in the amount of $25.6 million, or $1.08 per share, in 2011.
Operating income (loss)
In its analysis of operating results, the Corporation defines operating income (loss) as net income (loss) before amortization of property, plant and equipment and intangible assets, financial expenses, impairment of goodwill, gain on disposal of businesses, operational restructuring costs, impairment of assets and other costs, income taxes, after-tax share of income (loss) of associated corporations and net loss attributable to non-controlling interest. Operating income (loss) as defined above is not a measure of results that is consistent with IFRS. Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. This measure is not intended to represent funds available for debt service, dividend payment, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. Operating income (loss) is used by the Corporation because management believes it is a meaningful measure of performance.