Media Central Corporation Report on the Financial Results of
TORONTO, May 28, 2021 (GLOBE NEWSWIRE) – Media Central Corporation Inc. (CSE: FLY, FSE: 3AT) (“Media Central” or the “Company” or “we” or “we”) on May 27, 2021, released the first quarter financial statements and MD&A for the quarter ended March 31, 2021.
(Please note that investors are cautioned against deducting future financial results based on earnings, as the two significant operating assets of the company: NOW Magazine and The Georgia Straight have been materially affected by the economic environment resulting from the COVID19 virus since March 2020)
“The first quarter results reflect significant improvements over last year,” said Manos Pavlakis, Chairman of the Board. “We continue to work with management to eliminate the cost of excessive general and administrative expenses while restructuring our news and business operations to support new revenue models and digital products. We are seeing signs of improving revenue based on advertising trends, but not at the level of a full recovery. We’re on the right track with our new standalone digital products, a redesigned NOW Magazine website for video, and we plan to announce new revenue models in early June that will accelerate our revenue recovery. “
Income comparisons for the first quarter must take into account the devastating impact of COVID19 on the local economies of Toronto and Vancouver that began in the second half of March 2020 when incomes fell by more than 70%. Advertisers continued to struggle through 2020 and into 2021. However, first quarter results show signs of recovery. Overall, the 40% drop in ad revenue from $ 683 to $ 410 shows improvements over last year, given that 11 of the 13 weeks in Q1 2020 were pre-pandemic. Most of the lost revenue came from canceled printing schedules. Digital ad revenue, which now accounts for 85% of total revenue, grew 46% year-over-year as media consumers moved to work remotely. The trend of a significant shift from print ad spend to digital ad spend is expected to continue well after the end of the COVID19 pandemic due to measures taken to strengthen the platform and improve the digital offering to readers. Continuous innovation will be the key to future success.
PRESENTATION OF FINANCIAL INFORMATION AND NON-IFRS MEASURES
Unless otherwise indicated herein, financial results, including historical comparisons contained in this press release, are based on the unaudited first quarter 2021 consolidated financial statements of Media Central Corporation Inc., which have been prepared in accordance with Standards. International Financial Reporting (“IFRS”) as published by the International Accounting Standards Board (“IASB”) and Interpretations of the IFRS Interpretations Committee (“IFRIC”). Unless otherwise indicated, amounts are in thousands of Canadian dollars and percentage changes are calculated using whole numbers.
In addition to published IFRS measures, it is industry practice to value media companies taking into account certain non-IFRS performance measures, such as Adjusted EBITDA, as discussed below. For more details, please refer to Non-IFRS measures.
RESULTS OF OPERATIONS
Select Financial Information
|For the three-month period ended March 31,||2021||2020|
|Loss and overall loss of the year||(428)||(1,439)|
|Loss per share|
|Basic loss per share||(0.011)||(0.005)|
|Diluted loss per share||(0.011)||(0.005)|
|EBITDA (i) (iv)||(344)||(1,322)|
|Adjusted EBITDA (i) (iv)||(355)||(1 160)|
|Like a,||March, 31st,
|The 31st of December,
|Total assets||$ 2,637||$ 2,623|
|Total debt (ii)||$ 2,447||$ 2,413|
|Debt / total assets (i) (iii)||93%||92%|
(i) Represents a non-IFRS measure. The method used by Media Central to calculate non-IFRS measures may differ from the methods of other reporting issuers and, therefore, may not be comparable. For definitions and basis of presentation of Media Central’s non-IFRS measures, see the Non-IFRS Measures section of this press release.
(ii) Total debt is defined as accounts payable and other financial liabilities.
(iii) Debt to Total Assets is a non-IFRS measure and is Total Debt divided by Total Assets.
(iv) EBITDA and Adjusted EBITDA are calculated on a twelve month basis. Refer to the Non-IFRS Measures section of this press release for more details.
RESULTS OF OPERATIONS (continued)
|Three months ended March 31||2021||2020|
|Loss for the period||(428)||(1,439)|
|Depreciation and amortization||22||76|
|Adjusted EBITDA (i)||(355)||(1 160)|
(i) Refer to the section on non-IFRS measures in this press release for further details.
Company Highlights for the Quarter Ended March 31, 2021
- The revenue trend shows improvement despite the current economic challenges of COVID 19. Digital revenue accounted for 68% of total revenue.
- Selling, distribution and administration costs reduced by 63% due to continued consolidation, elimination of head office expenses and government assistance programs (wage and rental subsidies).
- On February 8, 2021, certain holders of convertible debentures exercised their option to convert debt into common shares, resulting in the issuance of 1,429 common shares.
Certain information contained in this press release constitutes forward-looking statements under applicable securities laws. All statements contained in this press release that are not statements of historical fact can be considered as forward-looking statements. Forward-looking statements are often identified by words such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements contained in this press release may include, but are not limited to, statements regarding internal expectations, expectations regarding estimated margins, cost structures and cost structures in the media industry. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving; the inability to access sufficient capital from internal and external sources, and / or the inability to access sufficient capital on favorable terms; the media industry in general, income tax and regulatory matters; the ability of Media Central to execute its business strategies; competition; currency and interest rate fluctuations and other risks.
Readers are cautioned that the above list is not exhaustive and should carefully consider the various risks and uncertainties identified in the documents filed by the Company on SEDAR. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that any plans, intentions or expectations upon which they are placed will be achieved. This information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those expected.
The forward-looking statements included in this press release are made as of the date of this press release and the company does not undertake to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required. by the applicable titles. laws.
The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
SOURCE: Media Central Corporation Inc.
About Media Central Corporation Inc.
Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT) is an alternative media company set to acquire and develop high quality publishing assets beginning with the recent acquisition of Vancouver Free Press Corp., the purchase of NOW Communications Inc. and the launch of the CannCentral.com digital cannabis platform. Media Central digitally consolidates and monetizes the more than 100 million coveted and premium consumers of some 100 alternative urban publications across North America, creating the most powerful influencer audience.
Facebook: Media Central Corp.
About Vancouver Free Press Publishing Corp,
Vancouver Free Press Publishing Corp., owns and operates Georgia Straight and straight.com. Established in 1967 as Vancouver’s news, lifestyle and entertainment weekly, the Georgia Straight has been an integral part of the active urban West Coast lifestyle for over 50 years. Reaching over 56 million annual readers, every Thursday in print and every day on straight.com, Georgia Straight offers an award-winning editorial set of features, articles and reviews. Regular coverage includes news, tech, the arts, music, fashion, travel, health, cannabis and food, along with Vancouver’s most comprehensive listings of entertainment and special events. . Vancouver Free Press Corp. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
About NOW Central Communications Inc.
NOW Central Communications Inc. owns and operates NOW Magazine and nowtoronto.com. Since 1981, NOW has been Toronto’s voice for news and entertainment, published in print every Thursday and daily on nowtoronto.com. Reaching over 25 million annual readers, NOW has been a leading, defining and pioneering independent and alternative voice publication for over 38 years. NOW Central Communications Inc. is a wholly owned subsidiary of Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT).
For a full disclosure of Media Central’s performance, please refer to the Company’s Consolidated Financial Statements and Notes thereto and to the Management Report for the year ended December 31, 2020, which have been electronically filed with the authorities. Canadian Securities through the Electronic Documentation System Analysis and Research Website (“SEDAR”) at www.sedar.com.