Corus Entertainment Announces Fiscal 2020 Fourth Quarter and Year End Results

October 22, 2020, 6:02 PM·31 mins read

Consolidated revenues declined 16% for the quarter and 10% for the year
Consolidated segment profit⁽¹⁾⁽²⁾ decreased 14% for both the quarter and the year
Consolidated segment profit margin⁽¹⁾ of 30% for the quarter and 33% for the year
Net income attributable to shareholders of $30.3 million ($0.15 per share basic) for the quarter and net loss attributable to shareholders of $625.4 million ($2.98 loss per share basic) for the year, which includes non-cash impairment charges recorded in the third quarter related to broadcast licenses and goodwill of $786.8 million ($769.3 million, net of tax)
Net debt to segment profit⁽¹⁾ of 3.18 times at August 31, 2020, improved from 3.22 times at May 31, 2020
Free cash flow⁽¹⁾⁽²⁾ of $87.4 million for the quarter and $296.2 million for the year

TORONTO, Oct. 22, 2020 /CNW/ - Corus Entertainment Inc. (TSX: CJR.B) announced its fourth quarter and year end financial results today.

"We delivered fourth quarter results that exceeded our expectations in the current environment, reflecting sequential improvement in advertising demand, impressive STACKTV subscriber growth and strong free cash flow," said Doug Murphy, President and Chief Executive Officer. "In the next few quarters, we expect advertising trends will continue to improve, with a return to growth in the second half of fiscal 2021."

"As we enter this new fiscal year, we remain excited for the future. Our team is invigorated by our newly updated strategic plan, one that will position Corus to emerge from the current crisis in a position of strength. This plan underpins our ambition to build a high performance, diverse and inclusive culture, firmly focused on delivering consolidated revenue growth year after year. We intend to continue to demonstrate strategic and fiscal discipline in the quarters ahead as we invest to advance our strategic plan and de-leverage our balance sheet to provide more financial flexibility."

Financial Highlights	Three months ended		Year ended
	August 31,		August 31,
(in thousands of Canadian dollars except per share amounts)	2020	2019	2020	2019
Revenues
Television	299,122	343,755	1,408,238	1,544,892
Radio	19,274	33,724	102,998	142,590
	318,396	377,479	1,511,236	1,687,482
Segment profit (loss) ^{(1) (2)}
Television	98,787	108,612	508,715	573,524
Radio	1,195	6,911	16,023	34,646
Corporate	(5,480)	(5,747)	(18,899)	(23,085)
	94,502	109,776	505,839	585,085
Net income (loss) attributable to shareholders	30,278	22,947	(625,362)	156,084
Adjusted net income attributable to shareholders ⁽¹⁾	33,181	27,930	158,057	181,006
Basic earnings (loss) per share	$0.15	$0.11	($2.98)	$0.74
Adjusted basic earnings per share⁽¹⁾	$0.16	$0.13	$0.75	$0.85
Diluted earnings (loss) per share	$0.15	$0.11	($2.98)	$0.74
Free cash flow ⁽¹⁾⁽²⁾	87,353	93,554	296,247	309,970

⁽¹⁾

Segment profit (loss), segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, free cash flow and net debt to segment profit do not have standardized meanings prescribed by International Financial Reporting Standards ("IFRS"). The Company believes these non-IFRS measures are frequently used as key measures to evaluate performance. For definitions, explanations and reconciliations see discussion under the Key Performance Indicators section of the Fourth Quarter 2020 Report to Shareholders and/or Management's Discussion and Analysis in the Company's August 31, 2019 Annual Report.

⁽²⁾

Segment profit (loss) for the three months and year ended August 31, 2020 was impacted by the adoption of the new accounting standard, IFRS 16 - Leases, effective September 1, 2019. This has resulted in an increase in segment profit for the quarter and year of approximately $3.3 million and $13.4 million, respectively, and an increase in free cash flow of approximately $3.8 million and $15.9 million, respectively. Further discussion of this can be found in the Impact of New Accounting Policies section of the Fourth Quarter 2020 Report to Shareholders.

Consolidated Results from Operations

Consolidated revenues for the three months ended August 31, 2020 were $318.4 million, down 16% from $377.5 million last year, and consolidated segment profit was $94.5 million, a decrease of 14% from $109.8 million last year. Net income attributable to shareholders for the quarter ended August 31, 2020 was $30.3 million ($0.15 per share basic), as compared to net income attributable to shareholders of $22.9 million ($0.11 per share basic) last year. Net income attributable to shareholders for the fourth quarter of fiscal 2020 includes integration, restructuring and other costs of $4.0 million ($0.01 per share, net of income taxes). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $33.2 million ($0.16 per share basic) for the quarter. Net income attributable to shareholders for the prior year quarter includes integration, restructuring and other costs of $6.8 million ($0.02 per share, net of income taxes). Adjusting for the impact of this item results in an adjusted net income attributable to shareholders of $27.9 million ($0.13 per share basic) for the prior year quarter.

Consolidated revenues for the year ended August 31, 2020 were $1,511.2 million, a decline of 10% from $1,687.5 million last year, and consolidated segment profit was $505.8 million, a decrease of 14% from $585.1 million last year. Net loss attributable to shareholders for the year ended August 31, 2020 was $625.4 million ($2.98 loss per share basic), as compared to a net income attributable to shareholders of $156.1 million ($0.74 per share basic) last year. Net loss attributable to shareholders for the year ended August 31, 2020 includes broadcast license and goodwill impairment charges of $786.8 million ($3.66 per share, net of income taxes) and integration, restructuring and other costs of $19.2 million ($0.07 per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $158.1 million ($0.75 per share basic) for the current fiscal year. Net income attributable to shareholders for the year ended August 31, 2019 includes integration, restructuring and other costs of $26.3 million ($0.09 per share, net of income taxes), an impairment on an investment in associates of $8.7 million ($0.03 per share, net of income taxes), a gain on debt modification of $3.9 million ($0.01 per share, net of income taxes) and a loss on disposal of the Telelatino Network of $0.3 million ($nil per share, net of income taxes). Adjusting for the impact of these items results in an adjusted net income attributable to shareholders of $181.0 million ($0.85 per share basic) for the prior fiscal year.

Operational Results - Highlights for Q4 2020

Television

Segment revenues decreased 13% in Q4 2020 and 9% for the year
Advertising revenues decreased 25% in Q4 2020 and 15% for the year
Subscriber revenues were down 1% in both Q4 2020 and for the year
Merchandising, distribution and other revenues increased 15% in both Q4 2020 and for the year
Segment profit⁽¹⁾ decreased 9% in Q4 2020 and 11% for the year
Segment profit margin⁽¹⁾ of 33% in Q4 2020 and 36% for the year, compared to 32% and 37%, respectively, in the prior year

Radio

Segment revenues decreased 43% in Q4 2020 and 28% for the year
Segment profit⁽¹⁾ decreased $5.7 million (83%) in Q4 2020 and $18.6 million (54%) for the year
Segment profit margin⁽¹⁾ of 6% in Q4 2020 and 16% for the year, compared to 20% and 24%, respectively, in the prior year

Corporate

Free cash flow⁽¹⁾ of $87.4 million in Q4 2020 and $296.2 million for the year, compared to $93.6 million and $310.0 million, respectively, in the prior year. The current quarter and year benefited from Canadian Emergency Wage Subsidy receipts and payment deferrals of Canadian corporate income tax installments.
Net debt to segment profit⁽¹⁾ was 3.18 times at August 31, 2020, up from 2.82 times at August 31, 2019, due to a reduction in segment profit and the implementation of IFRS 16 - Leases that added $148.6 million to the net debt calculation as at August 31, 2020, offset by bank loan repayments of $229.5 million in the year
Consolidated segment profit margin⁽¹⁾ of 30% in Q4 2020 and 33% for the year, compared to 29% and 35%, respectively, in the prior year

⁽¹⁾

Segment profit, segment profit margin, free cash flow and net debt to segment profit do not have standardized meanings prescribed by IFRS. The Company reports on these because they are key measures used to evaluate performance. For definitions and explanations, see the discussion under the Key Performance Indicators section of the Fourth Quarter 2020 Report to Shareholders and/or Management's Discussion and Analysis in the Company's August 31, 2019 Annual Report.

COVID-19 Update

The Company continues to closely monitor the evolution of the novel coronavirus ("COVID-19") situation. As the COVID-19 pandemic continues to significantly impact the wellbeing of individuals and the Canadian and global economies, the Company has implemented a specific response plan, informed by measures recommended by public health agencies, to continue providing its essential services and support to customers while safeguarding the health and safety of employees. Appropriate business continuity measures have been taken to ensure uninterrupted service of the Company's television, digital and radio operations.

Restrictions have been reintroduced in some provinces to tackle recent surges of COVID-19 cases which will impact various sectors and businesses; however, the Company continues to operate with more than 70% of its workforce working remotely and will not rush to return people to their worksites. The Company has adopted an "ease back" approach to ensure that the health of its people and the communities they work in are protected. Development of company-wide principles and guidelines, informed by public health authorities' recommendations, and site-specific plans have been made and continue to be adjusted, as necessary on a location-by-location basis. Site-specific plans include reduced occupancy at some sites and modification of workspaces to provide protection to the Company's employees.

The impact of COVID-19 and measures to prevent its spread have affected the Company in a number of ways. Most significantly, advertising sales continue to be materially impacted by businesses that remain shut-down or have severely cut back on discretionary spending, such as advertising, which has resulted in an overall decrease of 16% in the Company's consolidated revenues for the three months ended August 31, 2020. While COVID-19 continues to drive market-wide contraction of advertising demand, the rate of decline has improved in the Company's fourth quarter compared to its third quarter. The Company continues to work closely with its advertisers and agencies to create relevant and innovative marketing and advertising opportunities, which has meant that revenue declines are not as pronounced as they were when strict quarantine measures were in place. This has resulted in a decrease in consolidated advertising revenues of 27% for the three months ended August 31, 2020 compared to the prior year. However, the Company has seen a modest bounce back of consolidated merchandising, distribution and other revenues in the fourth quarter of 2020 of 11% from the prior year. Increases in distribution revenues arose from licensing activity with U.S. broadcasters and streaming services.

The government-imposed restrictions and closure of many businesses has increased accounts receivable collection uncertainty for small to medium size businesses and as a result, the Company has increased its estimated credit losses related to those accounts, which resulted in small additional provisions for collections risk.

In addition, there have been disruptions in the production and availability of content, including suspension of production of most film and television content. This has led to a larger number of repeats and fewer new episodes on all networks that has resulted in lower programming costs. For Canadian original programming, the Company continues to work with industry groups to safely restart Canadian productions successfully and to manage incremental costs associated with enhanced COVID-19 precautions. Scarcity of producers, cast, crew, and studio space, together with the costs of personal protective equipment and insurance, are currently estimated to increase the cost of productions by up to 15%.

The shut-down and slow restart of Canadian productions has also meant that the Company's ability to meet its current year regulatory requirements on Canadian programming expenditure ("CPE") has been significantly hampered. Corus is currently assessing its obligations and the potential implications of not fulfilling its CRTC obligations in light of the ongoing pandemic. The Company is exploring relief in respect of its CRTC obligations.

The CRTC launched a public consultation on September 17, 2020 to consider possible regulatory flexibility measures for licensed broadcasters in response to COVID-19. In its initial Notice of Consultation document, the CRTC expressed willingness to determine broadcasters' compliance with certain requirements based on whether they have fulfilled those obligations over "a more protracted period of time." The Company expects this issue to be resolved through the CRTC consultation process in the coming months but is unable to predict the outcome at this time.

It is too soon to gauge the medium to long-term impacts of the pandemic, given the many unknowns related to COVID-19. These include the duration, severity and the impact of a resurgence of the outbreak as emergency measures are eased or reintroduced. COVID-19 is altering business and consumer activity in many ways. The global response to the COVID-19 pandemic has resulted in, among other things, border closures, severe travel restrictions, the temporary shut-down of non-essential services and extreme fluctuations in financial and commodity markets. Restrictive measures may be re-implemented by one or more governments in jurisdictions where the Company operates. Labour shortages due to illness, Company or government imposed isolation programs, or restrictions on the movement of personnel or possible supply chain disruptions could result in a reduction or cessation of all or a portion of the Company's operations. The extent to which COVID-19 and any other pandemic or public health crisis impacts the Company's business, affairs, operations, financial condition, liquidity, availability of credit and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to continue to contain the COVID-19 virus or remedy its impact, among others.

The Company's financial priorities remain unchanged. Importantly, the Company remains committed to increasing its financial flexibility over the longer term. In this environment, the Company believes it is prudent to conserve cash out of an abundance of caution. The Company is constantly evaluating the situation and monitoring any impacts or potential impacts to its business.

Corus Entertainment Inc. reports its financial results in Canadian dollars.

The unaudited interim condensed consolidated financial statements and accompanying notes for the three months and year ended August 31, 2020 and Management's Discussion and Analysis are available on the Company's website at www.corusent.com in the Investor Relations section.

A conference call with Corus senior management is scheduled for October 22, 2020 at 10:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. The dial-in number for the conference call for local and international callers is 1.647.427.7450 and for North America is 1.888.231.8191. More information can be found on the Corus Entertainment website at www.corusent.com in the Investor Relations section.

Use of Non-IFRS Financial Measures

This press release includes the non-IFRS financial measures of segment profit, segment profit margin, adjusted net income attributable to shareholders, adjusted basic earnings per share, free cash flow and net debt to segment profit that are not in accordance with, nor an alternate to, generally accepted accounting principles ("IFRS") and may be different from non-IFRS measures used by other companies. In addition, these non-IFRS measures are not based on any comprehensive set of accounting rules or principles.

Non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-IFRS financial measures are meant to supplement, and to be viewed in conjunction with, IFRS financial results. A reconciliation of the Company's non-IFRS measures is included in the Company's most recent Report to Shareholders which is available on Corus' website at www.corusent.com as well as on SEDAR at www.sedar.com.

Caution Concerning Forward-Looking Information

This press release contains forward-looking information and should be read subject to the following cautionary language:

To the extent any statements made in this report contain information that is not historical, these statements are forward-looking statements and may be forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking information"). These forward-looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, estimates and outlook, including the adoption and anticipated impact of our new strategic plan, advertising and our expectations of advertising trends for fiscal 2021, distribution, merchandise and subscription revenues, operating costs and tariffs, taxes and fees, and can generally be identified by the use of words such as "believe", "anticipate", "expect", "intend", "plan", including the adoption and anticipated impact of our new strategic plan, "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances may be considered forward-looking information. Although Corus believes that the expectations reflected in such forward-looking information are reasonable, such information involves assumptions, risks and uncertainties and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied with respect to the forward-looking information, including without limitation, factors and assumptions regarding the general market conditions and general outlook for the industry, interest rates, stability of the advertising, distribution, merchandise and subscription markets, operating and capital costs and tariffs, taxes and fees, our ability to source desirable content and our capital and operating results being consistent with our expectations. Actual results may differ materially from those expressed or implied in such information. Important factors that could cause actual results to differ materially from these expectations include, among other things: our ability to attract and retain advertising revenues; audience acceptance of our television programs and cable networks; our ability to recoup production costs, the availability of tax credits and the existence of co-production treaties; our ability to compete in any of the industries in which we do business; the opportunities (or lack thereof) that may be presented to and pursued by us; conditions in the entertainment, information and communications industries and technological developments therein; changes in laws or regulations or the interpretation or application of those laws and regulations; our ability to integrate and realize anticipated benefits from our acquisitions and to effectively manage our growth; our ability to successfully defend ourselves against litigation matters arising out of the ordinary course of business; failure to meet covenants under our senior credit facility; epidemics, pandemics or other public health crises, including the current outbreak of COVID-19 and changes in accounting standards. Additional information about these factors and about the material assumptions underlying any forward-looking information may be found under the heading "Risks and Uncertainties" in the Management's Discussion and Analysis for the year ended August 31, 2019 and the fourth quarter ended August 31, 2020 and under the heading "Risk Factors" in our Annual Information Form. Corus cautions that the foregoing list of important assumptions and factors that may affect future results is not exhaustive. When relying on our forward-looking information to make decisions with respect to Corus, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Unless otherwise specified, all forward-looking information in this document speaks as of the date of this document. Unless otherwise required by applicable securities laws, Corus disclaims any intention or obligation to publicly update or revise any forward-looking information whether as a result of new information, events or circumstances that arise after the date thereof or otherwise.

About Corus Entertainment Inc.

Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompass 34 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital assets, animation software, technology and media services. Corus is an established creator of globally distributed content through Nelvana animation studio, Corus Studios, and children's book publishing house Kids Can Press. The company also owns innovative full-service social digital agency so.da, and lifestyle entertainment company Kin Canada. Corus' roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, HISTORY®, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and Rock 101. Visit Corus at www.corusent.com.

CORUS ENTERTAINMENT INC
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(unaudited - in thousands of Canadian dollars)	As at August 31, 2020	As at August 31, 2019
ASSETS
Current
Cash and cash equivalents	45,900	82,568
Accounts receivable	297,585	372,828
Income taxes recoverable	—	13,772
Prepaid expenses and other assets	17,112	19,557
Total current assets	360,597	488,725
Tax credits receivable	26,745	25,035
Investments and other assets	59,424	51,707
Property, plant and equipment	333,762	225,927
Program rights	637,819	507,913
Film investments	44,891	53,336
Intangibles	1,789,018	1,876,235
Goodwill	664,958	1,383,958
Deferred income tax assets	53,668	59,463
	3,970,882	4,672,299
LIABILITIES AND EQUITY
Current
Accounts payable and accrued liabilities	451,682	429,483
Current portion of bank debt	76,339	76,339
Provisions	8,621	10,331
Income taxes payable	12,698	—
Total current liabilities	549,340	516,153
Bank debt	1,429,750	1,655,406
Other long-term liabilities	492,956	278,117
Provisions	9,494	7,686
Deferred income tax liabilities	440,923	472,700
Total liabilities	2,922,463	2,930,062
EQUITY
Share capital	816,189	830,477
Contributed surplus	1,511,325	1,512,818
Accumulated deficit	(1,425,432)	(758,757)
Accumulated other comprehensive income (deficit)	(2,258)	12,187
Total equity attributable to shareholders	899,824	1,596,725
Equity attributable to non-controlling interest	148,595	145,512
Total equity	1,048,419	1,742,237
	3,970,882	4,672,299

CORUS ENTERTAINMENT INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
	Three months ended		Year ended
	August 31,		August 31,
(unaudited - in thousands of Canadian dollars except per share amounts)	2020	2019	2020	2019
Revenues	318,396	377,479	1,511,236	1,687,482
Direct cost of sales, general and administrative expenses	223,894	267,703	1,005,397	1,102,397
Depreciation and amortization	38,798	37,326	158,549	182,354
Interest expense	27,201	26,313	115,185	117,718
Broadcast licenses and goodwill impairment	—	—	786,790	—
Gain on debt modification	—	—	—	(3,889)
Integration, restructuring and other costs	3,961	6,779	19,155	26,316
Other expense (income), net	(21,713)	(1,455)	(8,077)	10,474
Income (loss) before income taxes	46,255	40,813	(565,763)	252,112
Income tax expense	12,465	12,287	41,944	71,445
Net income (loss) for the period	33,790	28,526	(607,707)	180,667
Other comprehensive income (loss), net of income taxes:
Items that may be reclassified subsequently to income (loss):
Unrealized change in fair value of cash flow hedges	2,405	(3,887)	(15,466)	(31,538)
Unrealized foreign currency translation adjustment	(921)	(206)	(87)	309
	1,484	(4,093)	(15,553)	(31,229)
Items that will not be reclassified to income (loss):
Unrealized change in fair value of financial assets	2,001	(801)	1,108	(2,440)
Actuarial gain (loss) on post-retirement benefit plans	(5,164)	1,647	8,871	(9,295)
	(3,163)	846	9,979	(11,735)
Other comprehensive loss, net of income taxes	(1,679)	(3,247)	(5,574)	(42,964)
Comprehensive income (loss) for the period	32,111	25,279	(613,281)	137,703

Net income (loss) attributable to:
Shareholders	30,278	22,947	(625,362)	156,084
Non-controlling interest	3,512	5,579	17,655	24,583
	33,790	28,526	(607,707)	180,667

Comprehensive income (loss) attributable to:
Shareholders	28,599	19,700	(630,936)	113,120
Non-controlling interest	3,512	5,579	17,655	24,583
	32,111	25,279	(613,281)	137,703

Earnings (loss) per share attributable to shareholders:
Basic	$0.15	$0.11	($2.98)	$0.74
Diluted	$0.15	$0.11	($2.98)	$0.74

CORUS ENTERTAINMENT INC
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited - in thousands of Canadian dollars)	Share capital	Contributed surplus	Accumulated deficit	Accumulated other comprehensive income (loss)	Total equity attributable to shareholders	Non- controlling interest	Total equity
As at August 31, 2019	830,477	1,512,818	(758,757)	12,187	1,596,725	145,512	1,742,237
Comprehensive income (loss)	—	—	(625,362)	(5,574)	(630,936)	17,655	(613,281)
Dividends declared	—	—	(50,184)	—	(50,184)	(19,983)	(70,167)
Shares repurchased under normal course issuer bid ("NCIB")	(14,288)	(2,605)	—	—	(16,893)	—	(16,893)
Actuarial gain on post- retirement benefit plans	—	—	8,871	(8,871)	—	—	—
Share-based compensation expense	—	1,112	—	—	1,112	—	1,112
Equity funding by a non-controlling interest	—	—	—	—	—	5,411	5,411
As at August 31, 2020	816,189	1,511,325	(1,425,432)	(2,258)	899,824	148,595	1,048,419
(unaudited - in thousands of Canadian dollars)	Share capital	Contributed surplus	Accumulated deficit	Accumulated other comprehensive income (loss)	Total equity attributable to shareholders	Non- controlling interest	Total equity
As at August 31, 2018, as previously presented	2,330,477	12,119	(856,668)	36,460	1,522,388	154,415	1,676,803
IFRS 9 transitional adjustment	—	—	—	9,396	9,396	—	9,396
IFRS 15 transitional adjustment	—	—	1,985	—	1,985	—	1,985
Adjusted balance as at September 1, 2018	2,330,477	12,119	(854,683)	45,856	1,533,769	154,415	1,688,184
Comprehensive income (loss)	—	—	156,084	(42,964)	113,120	24,583	137,703
Dividends declared	—	—	(50,863)	—	(50,863)	(28,366)	(79,229)
Reduction of stated capital	(1,500,000)	1,500,000	—	—	—	—	—
Actuarial loss on post-retirement benefit plans	—	—	(9,295)	9,295	—	—	—
Share-based compensation expense	—	699	—	—	699	—	699
Divestiture of subsidiary with a non-controlling equity interest	—	—	—	—	—	(5,120)	(5,120)
As at August 31, 2019	830,477	1,512,818	(758,757)	12,187	1,596,725	145,512	1,742,237

CORUS ENTERTAINMENT INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
	Three months ended		Year ended
	August 31,		August 31,
(unaudited - in thousands of Canadian dollars)	2020	2019	2020	2019
OPERATING ACTIVITIES
Net income (loss) for the period	33,790	28,526	(607,707)	180,667
Adjustments to reconcile net income (loss) to cash flow from operations:
Amortization of program rights	109,590	122,301	495,814	516,431
Amortization of film investments	5,649	3,591	20,063	16,035
Depreciation and amortization	38,798	37,326	158,549	182,354
Deferred income tax expense	3,615	8,960	(23,992)	(10,166)
Broadcast licenses and goodwill impairment	—	—	786,790	—
Gain on debt modification	—	—	—	(3,889)
Impairment of investment in associate	—	—	—	8,720
Share-based compensation expense	260	214	1,112	699
Imputed interest	12,569	9,219	52,371	41,209
Payment of program rights	(142,290)	(143,886)	(547,486)	(537,954)
Net spend on film investments	2,829	(1,797)	(43,178)	(45,029)
CRTC benefit payments	(1,403)	(1,338)	(2,448)	(2,561)
Other	4,103	780	(1,658)	(5,921)
Cash flow from operations	67,510	63,896	288,230	340,595
Net change in non-cash working capital balances related to operations	26,688	51,143	25,042	2,958
Cash provided by operating activities	94,198	115,039	313,272	343,553
INVESTING ACTIVITIES
Additions to property, plant and equipment	(5,294)	(18,477)	(15,385)	(30,055)
Proceeds from sale of property	26	—	314	—
Business divestiture, net of divested cash	—	—	—	12,529
Business acquisition	—	—	—	(6,011)
Net cash flows for intangibles, investments and other assets	(1,727)	(3,008)	(3,934)	(6,678)
Cash used in investing activities	(6,995)	(21,485)	(19,005)	(30,215)
FINANCING ACTIVITIES
Decrease in bank loans	(98,854)	(59,976)	(229,514)	(249,949)
Deferred financing costs	—	(98)	—	(3,440)
Shares repurchased under NCIB	—	—	(16,893)	—
Payments of lease liabilities	(3,840)	—	(15,945)	—
Equity funding by a non-controlling interest	—	—	5,411	—
Dividends paid	(12,498)	(12,718)	(50,399)	(38,150)
Dividends paid to non-controlling interest	(5,315)	(6,957)	(19,983)	(30,365)
Other	(428)	(458)	(3,612)	(3,667)
Cash used in financing activities	(120,935)	(80,207)	(330,935)	(325,571)
Net change in cash and cash equivalents during the period	(33,732)	13,347	(36,668)	(12,233)
Cash and cash equivalents, beginning of the period	79,632	69,221	82,568	94,801
Cash and cash equivalents, end of the period	45,900	82,568	45,900	82,568

CORUS ENTERTAINMENT INC
BUSINESS SEGMENT INFORMATION
(unaudited - in thousands of Canadian dollars)
Three months ended August 31, 2020
	Television	Radio	Corporate	Consolidated
Revenues	299,122	19,274	—	318,396
Direct cost of sales, general and administrative expenses	200,335	18,079	5,480	223,894
Segment profit (loss)⁽¹⁾⁽²⁾	98,787	1,195	(5,480)	94,502
Depreciation and amortization				38,798
Interest expense				27,201
Integration, restructuring and other costs				3,961
Other income, net				(21,713)
Income before income taxes				46,255
Three months ended August 31, 2019
	Television	Radio	Corporate	Consolidated
Revenues	343,755	33,724	—	377,479
Direct cost of sales, general and administrative expenses	235,143	26,813	5,747	267,703
Segment profit (loss)⁽¹⁾	108,612	6,911	(5,747)	109,776
Depreciation and amortization				37,326
Interest expense				26,313
Integration, restructuring and other costs				6,779
Other income, net				(1,455)
Income before income taxes				40,813
Year ended August 31, 2020
	Television	Radio	Corporate	Consolidated
Revenues	1,408,238	102,998	—	1,511,236
Direct cost of sales, general and administrative expenses	899,523	86,975	18,899	1,005,397
Segment profit (loss)⁽¹⁾⁽²⁾	508,715	16,023	(18,899)	505,839
Depreciation and amortization				158,549
Interest expense				115,185
Broadcast licenses and goodwill impairment				786,790
Integration, restructuring and other costs				19,155
Other income, net				(8,077)
Loss before income taxes				(565,763)

⁽¹⁾

Segment profit (loss) does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the Management's Discussion and Analysis in the Company's August 31, 2019 Annual Report.

⁽²⁾

Segment profit (loss) for the three months and year ended August 31, 2020 was impacted by the adoption of the new accounting standard, IFRS 16 - Leases, effective September 1, 2019. This has resulted in an increase in segment profit for the quarter and year of approximately $3.3 million and $13.4 million, respectively. Further discussion of this can be found in the Impact of New Accounting Policies section of the Fourth Quarter 2020 Report to Shareholders.

(unaudited - in thousands of Canadian dollars)
Year ended August 31, 2019
	Television	Radio	Corporate	Consolidated
Revenues	1,544,892	142,590	—	1,687,482
Direct cost of sales, general and administrative expenses	971,368	107,944	23,085	1,102,397
Segment profit (loss)⁽¹⁾	573,524	34,646	(23,085)	585,085
Depreciation and amortization				182,354
Interest expense				117,718
Gain on debt modification				(3,889)
Integration, restructuring and other costs				26,316
Other expense, net				10,474
Income before income taxes				252,112

⁽¹⁾	Segment profit (loss) does not have a standardized meaning prescribed by IFRS. For definitions and explanations, see discussion under the Key Performance Indicators section of the Management's Discussion and Analysis in the Company's August 31, 2019 Annual Report.

REVENUES BY TYPE

	Three months ended		Year ended
		August 31,		August 31,
(unaudited - in thousands of Canadian dollars)	2020	2019	2020	2019
Advertising	164,718	226,033	920,849	1,101,814
Subscriber fees	122,066	123,028	490,985	496,447
Merchandising, distribution and other	31,612	28,418	99,402	89,221
	318,396	377,479	1,511,236	1,687,482

NON-IFRS FINANCIAL MEASURES

(unaudited - in thousands of Canadian dollars, except per share amounts)	Three months ended		Year ended
		August 31,		August 31,
Adjusted Net Income Attributable to Shareholders	2020	2019	2020	2019
Net income (loss) attributable to shareholders	30,278	22,947	(625,362)	156,084
Adjustments, net of income tax:
Impairment of investment in associates	—	—	—	7,565
Broadcast licences and goodwill impairment	—	—	769,338	—
Gain on debt modification	—	—	—	(2,856)
Loss from disposition of the Telelatino Network	—	—	—	814
Integration, restructuring and other costs	2,903	4,983	14,081	19,399
Adjusted net income attributable to shareholders	33,181	27,930	158,057	181,006
Basic earnings (loss) per share	$0.15	$0.11	($2.98)	$0.74
Adjustments, net of income tax:
Impairment of investment in associates	—	—	—	$0.03
Broadcast licences and goodwill impairment	—	—	$3.66	—
Gain on debt modification	—	—	—	($0.01)
Loss from disposition of the Telelatino Network	—	—	—	—
Integration, restructuring and other costs	$0.01	$0.02	$0.07	$0.09
Adjusted basic earnings per share	$0.16	$0.13	$0.75	$0.85

	Three months ended		Year ended
(unaudited - in thousands of Canadian dollars)		August 31,		August 31,
Free Cash Flow	2020	2019	2020	2019
Cash provided by (used in):
Operating activities ⁽¹⁾	94,198	115,039	313,272	343,553
Investing activities	(6,995)	(21,485)	(19,005)	(30,215)
Add: cash used in business acquisitions and strategic investments⁽²⁾	87,203	93,554	294,267	313,338
	150	—	1,980	9,161
Deduct: cash provided by business divestiture, net of divested cash ⁽²⁾	—	—	—	(12,529)
Free cash flow	87,353	93,554	296,247	309,970

⁽¹⁾

Free cash flow for the three months and year ended August 31, 2020 was impacted by the adoption of IFRS 16, effective September 1, 2019. This has resulted in an increase in free cash flow of approximately $3.8 million for the quarter and $15.9 million for the year. Further discussion of this can be found in the Impact of New Accounting Policies section of the Fourth Quarter 2020 Report to Shareholders.

⁽²⁾

Strategic investments are comprised of investments in venture funds and associated companies.

Year ended
(unaudited - in thousands of Canadian dollars)	August 31,	August 31
Net Debt and Net Debt to Segment Profit	2020	2019
Total bank loans, net of unamortized financing fees	1,506,089	1,731,745
Lease liabilities	148,580	—
Cash and cash equivalents	(45,900)	(82,568)
Net debt	1,608,769	1,649,177
Segment profit (denominator) ⁽¹⁾	505,839	585,085
Net debt to segment profit	3.18	2.82

⁽¹⁾

Reflects aggregate amounts for the most recent four quarters, as detailed in the table in the "Quarterly Consolidated Financial Information" section of the Fourth Quarter 2020 Report to Shareholders. Effective September 1, 2019, the Company adopted IFRS 16. There has been no restatement of segment profit for the fiscal 2019 quarters that were prior to adoption. Refer to Impact of New Accounting Policies section of the Fourth Quarter 2020 Report to Shareholders for more information.

Cision

View original content:http://www.prnewswire.com/news-releases/corus-entertainment-announces-fiscal-2020-fourth-quarter-and-year-end-results-301157823.html

SOURCE Corus Entertainment Inc.

Cision

View original content: http://www.newswire.ca/en/releases/archive/October2020/22/c3657.html

Fox Business
Former North Carolina waitress sues employer after sex tape circulates, she receives threats: lawsuit
A former waitress for a North Carolina-based restaurant chain is suing the company after enduring months of alleged sexual assault and harassment including one instance when she received an anonymous threat after reporting that her private sex tape had been circulated amongst coworkers.
Benzinga
Jim Cramer Likes These Stocks If Joe Biden Wins The Election
Jim Cramer discussed Tuesday on CNBC's "Mad Money" his "basket of winners" if former Vice President Joe Biden wins the presidential election.Cramer believes if Biden wins the election, the Democrats will be eager to throw money at the solar industry. Two solar stocks he likes: First Solar, Inc. (NASDAQ: FSLR) and Tesla, Inc. (NASDAQ: TSLA). Infrastructure is another industry Cramer believes will be a winner if Biden wins. If there is a democratic sweep, we could see an infrastructure package. Cramer likes these two infrastructure stocks: Caterpillar Inc. (NYSE: CAT) and Deere & Company (NYSE: DE).See Also: Trump, Biden To Have Microphones Muted In Final Debate When Rival Makes Opening RemarksCramer says the main difference between President Donald Trump and Biden is trade. He believes if Biden wins, there will be no more trade war with China. Cramer likes these Chinese play stocks: 3M Company (NYSE: MMM), Emerson Electric Co (NYSE: EMR) and Otis Worldwide Corporation (NYSE: OTIS).The biggest winners are the China consumer plays, which are Starbucks Corporation (NASDAQ: SBUX), Apple Inc. (NASDAQ: AAPL) and Nike, Inc. (NYSE: NKE) according to Cramer. He believes Nike will hit the $135 price range due to the company's Chinese business.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Container Store Surges On Big Q2 Sales Beat, Marie Kondo Partnership * Jason Snipe Gives His Bullish Thoughts On Wayfair, AutoZone(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
MarketWatch
Mortgage rates fall to record lows for the 11th time this year, but new challenges for first-time buyers remain
Home price gains continue to outpace wage growth, and low interest rates aren’t helping a whole lot.
Barrons.com
Pioneer CEO Predicts ‘Only Three or Four’ U.S. Oil Stocks Are Worth Buying
Only a small handful of U.S. oil producers will be worth investing in over the next few years, absent a major increase in oil prices, Pioneer Resources CEO Scott Sheffield told energy investors Tuesday. Sheffield said he hopes his company will be one of the winners. “I just think that there’s only going to be three or four really survivors, independents, and that’s going to be probably most likely (COP) EOG and Pioneer and maybe Hess long term,” he said on a conference call announcing Pioneer’s decision to buy (PE) (ticker: PE).
NerdWallet
Playing the Market Is a Bad Idea, Especially Now
The current day trading boom will end as these frenzies always do: in tears. While we wait for the inevitable crash, let’s review not only why day traders are doomed…
Bloomberg
Siberian Gold Deposit Has World’s Largest Reserves
(Bloomberg) -- Polyus PJSC, Russia’s largest gold producer, said its untapped Sukhoi Log deposit in Siberia holds the world’s biggest reserves.An audit showed Sukhoi Log has 40 million ounces of proven reserves as measured by international JORC standards, with an average gold content of 2.3 grams per ton, Chief Executive Officer Pavel Grachev said. That means the field -- accounting for more than a quarter of Russian gold reserves -- is bigger than Seabridge Gold Inc.’s KSM Project in Canada and Donlin Gold in Alaska.“The estimate of the reserves is an important milestone in development of the field,” Grachev said in an interview in Moscow.Sukhoi Log, located in the isolated Irkutsk region of Siberia, was discovered by Soviet geologists in 1961 and studied in the 1970s. The government had long considered offloading the deposit, and in 2017 sold the field in an auction to Polyus and a state partner, which the mining company later bought out.Polyus said earlier this year that it would focus on smaller projects and reducing its debt ratio in the coming years before developing the field. The company plans to announce details on expected production and investment at Sukhoi Log once a pre-feasibility study is ready by year-end. It previously said that costs could reach $2.5 billion, with annual output totaling about 1.6 million ounces.While developing giant deposits is typically a lengthy and costly process, the field may allow Polyus to boost annual output by at least 70%. Gold prices have rallied about 60% since the company purchased it, and reached a record in August as vast amounts of stimulus were pumped into economies to curb the damage from the coronavirus pandemic.“We want to show that a project of this quality and scale can and should be carried out, taking into account the best environmental standards, despite the hard-to-reach location,” Grachev said.More on Sukhoi Log:The audit shows that as well as economically mineable reserves, the deposit has 67 million ounces of total resources, up from 63 million ounces previously estimated.That figure may rise after more drilling and studies.Main investment is due to start in 2023. Polyus has already started spending on infrastructure for the project. There is also a plan on co-investing with the government on the reconstruction of a local airport.(Updates with details on deposit and development project from fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Barrons.com
AT&T Earnings Were Good Enough to End a 10-Day Losing Streak. Here’s Why.
The telecom company reported better-than-expected earnings, and its stock is bouncing back big time.
MarketWatch
Americans tend to blow an inheritance — here’s how to be prudent and have some fun too
Separate the lump sum into three purposes: past, present and future. That will make your decisions easier.
TipRanks
2 “Strong Buy” Dividend Stocks Yielding at Least 9%
Markets have shown two themes in recent weeks, a combination of uncertainty and an upward trend. Day to day, it’s impossible to predict just what will happen, but the larger scale movement has been upwards. Looking ahead, all we know is that current events will reinforce the uncertainty.Earnings season has started. As the market’s publicly traded companies report their Q3 results, we’ll get a clearer idea as the nature of the economic recovery. Q1 was a disaster, the second quarter was better than expected; while Q3 is also expected to beat the expectations, no one will be surprised if it belly flops. So far, our first hint was the September jobs report, which fell short of the forecast but nevertheless showed some 661,000 new jobs last month.The big wild card, of course, is the national election, now just weeks away. President Trump is fighting for his political life and the Democrat opposition is fighting to regain control of the levers of government. It’s an environment that practically screams for investors to take protective action for their portfolios. And it’s possible; even in an uncertain time, there are dividend stocks that promise reliable returns and risk mitigation. Using the TipRanks database, we’ve pulled two stocks with Strong Buy ratings and high dividend yields. Wall Street’s analyst corps sees them as ripe for investment returns, while the dividend yield of 9% or better promises relief from today’s low-rate regime. Hoegh LNG Partners (HMLP)Hoegh operates floating gas services, including storage facilities and regasification units that can act as LNG import terminals in the absence of shore-based infrastructure.Late this past summer, Hoegh announced a new CEO, part of a normal transition of leadership in the company. The remarkable aspect was that the transition occurred during the COVID outbreak – and that the company showed positive revenues and earnings during that time, avoiding the heavy losses that have plagued some of its competitors. Hoegh’s EPS has varied quarter to quarter over the past two years, but the Q2 numbers were in-line with the long-term average, and the Q3 outlook, to be reported next month, is in the same range.Steady earnings usually mean a steady dividend, and HMLP delivers. The company has a 6-year history of dividend reliability, and the payment, of 44 cents per common share, has been held stable through 2020. The $1.76 annualized payment gives an impressively high yield of 15.5%. This is more than 7x the average found among S&P listed dividend payers.Liam Burke, of B. Riley FBR, counts himself as a fan. He writes, “Despite near-term decline in global LNG consumption caused by the coronavirus, there is solid underlying demand for LNG, which is estimated to grow by more than 3% to 5% annually until 2030, which sets the stage for consistent demand for high return floating storage and re-gasification units (FSRU) beyond current contract periods. We continue to believe in the long-term strength of the LNG market and HMLP's underlying charters despite the inherent counter-party risks created by a near-term decline in LNG consumption related to COVID-19.”Burke rates HMLP shares a Buy, and his $17 price target indicates confidence in a 45.5% upside potential. (To watch Burke’s track record, click here)Overall, Wall Street has given HMLP 3 Buys and 1 Hold recently, for a Strong Buy consensus rating. The average price target is $13.67, suggesting a 19% upside from the current trading level of $11.41. (See HMLP stock analysis on TipRanks)Hess Midstream Operations (HESM)Next up on today’s list of dividend champs is Hess Midstream, a player in the US oil and gas industry. Hess provides infrastructure services for gathering, processing, storing, and transporting both crude oil and natural gas products in the Bakken formation of North Dakota.Production companies have kept the product flowing despite the coronavirus, which is one reason for the low prices in the oil markets – but it has also kept the midstreamers in demand. Hess has benefited from the continuing need for its technical knowledge of pipeline network, and the result has been that, while much of the oil industry had to retrench recently, Hess saw only modest losses in revenues while earnings remained in-line with their 2-year recent history. Second Quarter EPS was 29 cents; that was lower than Q1, but higher than 4Q19.Hess has turned its steady earnings to shareholders’ advantage, with a dividend that has been increased every quarter for the past 2 years. The last payment, sent in August, was 44 cents per common share. This gave a yield of 9.86%, strong by any standard.JPMorgan analyst Tarek Hamid says of Hess, “The unique pricing model underpinning core profitability remains unmatched and further helps to eliminate (to an extent) DAPL uncertainty overhang relative to peers. Longer-term growth prospects could come in the form of asset level acquisitions and potentially a framework tied to Hess’s GOM position, but management has conveyed a conservative approach with respect to corporate M&A… HESM will burn cash this year, though our modeling indicates a flip to FCF generation in FY21 on lower capital intensity and higher y/y profitability.”To this end, JPMorgan rates HESM an Overweight (i.e. Buy) along with a $23 price target. This figure suggests a 40% upside for HESM shares in the months ahead.Overall, this stock’s Strong Buy consensus rating is supported by 4 Buys and 1 Hold. Shares are selling for $16.46, and the average price target of $19.75 indicates a 20% upside potential. (See HESM stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
MarketWatch
Tesla plays smoke and mirrors with profits again
Tesla Inc. Chief Executive Elon Musk called the electric car maker's third quarter its best quarter ever, but investors should also take into account the fact that the quarter was buoyed by $397 million in regulatory credits.
TheStreet.com
AT&T Tops Q3 Revenue Forecasts on HBO, Phone Subscriber Gains
New AT&T; CEO John Stankey said solid cash flows will enable the group to boost its annual dividend ratio and pay down debt, even after taking a third quarter earnings hit linked to the global coronavirus pandemic.
MarketWatch
The high yields on municipal bonds are tempting, but you need to be mindful of these hidden risks
Municipal bonds have high yields, making them more attractive than Treasuries. Municipal bonds are typically exempt from federal income taxes, and if they are issued within your state, exempt from state income taxes too. What may surprise you is that yields on investment-grade municipal bonds (“munis”) are higher than they are for U.S. Treasury bonds, which are subject to federal income taxes.
Oilprice.com
Why Natural Gas Is The Most Important Fuel Of the Next Decade
Natural gas may just be on track to become the world’s most important resource over the next decade as the world races to ditch other fossil fuels
Investor's Business Daily
AT&T Shares Jump As Wireless Subscribers Prove To Be A Bright Spot
AT&T earnings for the September quarter met Street estimates while revenue came in above Wall Street targets. AT&T stock rose on the news as wireless subscriber additions were a bright spot.
Reuters
Exxon Mobil 'very close' to disclosing U.S., Canada job cuts, says CEO
Exxon Mobil Corp <XOM.N> is "very close" to completing its workforce appraisals in the United States and Canada and expects to unveil job cuts, its chief executive told employees in an email on Wednesday. The job cuts are part of a plan unveiled this spring to redesign how Exxon works and to increase competitiveness, CEO Darren Woods said in an email to its nearly 75,000-person workforce. Exxon has exceeded a target of reducing operating expenses by $1 billion and capital budget spending by $10 billion, he wrote.
Bloomberg
Huawei Outhustles Trump by Stockpiling Chips Needed for China 5G
(Bloomberg) -- Huawei Technologies Co. quietly spent months racing to stockpile critical radio chips ahead of Trump administration sanctions, ensuring it can keep supplying Chinese carriers in their $170 billion rollout of 5G technology through at least 2021.Partner Taiwan Semiconductor Manufacturing Co. began ramping up output in late 2019 of Huawei’s 7-nanometer Tiangang communications chips, the most crucial element in 5G base stations, people familiar with the matter said. The Taiwanese contract manufacturer eventually shipped more than 2 million units at Huawei’s behest ahead of the sanctions cutoff last month, one of the people said, asking not be identified discussing internal matters. The sheer magnitude of orders at one point got TSMC executives wondering whether they had underestimated global demand, the person said.Huawei’s breakthrough in securing essential supplies underscores the mixed success of a U.S. campaign against China’s largest tech company since 2018. Citing national security concerns, the White House started by trying to curtail the sale of American software and circuitry to Huawei before finally enacting sweeping restrictions against its suppliers including TSMC. It’s that last salvo, a ban on the sale of ready-made, commercially available semiconductors, that finally knee-capped Huawei’s smartphone business and forced it to curtail device production, the people said. Representatives for Huawei and TSMC declined to comment.But the Tiangang chip, designed inhouse by secretive division HiSilicon, has proven pivotal to keeping the 5G business afloat. Huawei had leaned on TSMC in the months before Washington shut that loophole and it can now continue to supply China Mobile Ltd., China Telecom Corp. and China Unicom -- the carrier trio now aggressively building out a nationwide 5G network Beijing considers instrumental to driving the world’s No. 2 economy. A China Mobile representative declined to comment for this story. A China Telecom spokesperson said the company will communicate any impact from curbs on Huawei but declined to comment on discussions about chip supply. Unicom representatives didn’t respond to requests for comment.“The U.S. has demonstrated an intense will to restrict Huawei’s ability to offer 5G technologies. The U.S. government’s assertions of extraterritoriality have made it more difficult for Huawei to maintain access to critical components,” said Dan Wang, an analyst at Gavekal Dragonomics. In 2012, just a third of Huawei’s revenue was generated in China -- that closed in on two-thirds last year. “Huawei is more dependent on domestic sales due to both U.S. pressure as well as its strong hold over the fast-growing China market.”How Huawei Landed at the Center of Global Tech Tussle: QuickTakeHuawei told Chinese wireless operators its component inventory was fully capable of supporting base station construction in 2021 and beyond despite U.S. sanctions, according to people familiar with the matter. The company has started shipping 5G base stations without American components since at least the end of last year.It’s unclear how long those stocks can last. Rotating Chairman Guo Ping said last month the company has “sufficient” inventory for its communications equipment business, but is seeking supplies for the smartphone unit.Even assuming Huawei has cached enough silicon for Chinese clients’ purposes, it may have had to make sacrifices in performance because of shortages in second-tier components. Resorting to less-sophisticated local alternatives may hinder areas such as power consumption rate, the people said. To rectify that, Huawei’s promised to compensate carriers for part of that additional electricity expense, they said. A typical 5G base station consumes roughly four times the power of a standard 4G model.Read more: Shunned by U.S., Huawei Winning China’s $170 Billion 5G RaceWhat Bloomberg Intelligence SaysGains made by China’s tech leaders may be larger than prior generations for smartphones, cellular base stations, servers and chipsets, but less relevant amid the trade dispute. Huawei and peers face similar circumstances if the U.S. restricts their IP use, but may still grow in China via vertical integration. The nation’s tech trajectory might then veer away from global trends.\- Anand Srinivasan and Charles Shum, analystsClick here for the research.While Washington is gaining ground in efforts to pressure allies from Australia to the U.K. to shun Huawei equipment, the Chinese company’s main source of income remains its own home country. Huawei has so far won more than half of the 5G orders from state-owned carriers this year, securing contracts worth billions of dollars, Bloomberg News reported earlier.Chinese carriers have built 690,000 5G base stations since the technology was commercialized about a year ago, according to the Ministry of Industry and Information Technology. The nation’s carriers have yet to announce base station procurement plans for 2021, but ministry officials said the country’s network buildup will continue over the next three years.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
MarketWatch
Tractor Supply earnings beat but shares fall
Tractor Supply Co. stock fell 5.2% in early Thursday trading after the rural lifestyle retailer reported third-quarter earnings that beat expectations and gave upbeat guidance. Net income totaled $190.6 million, or $1.62 per share, up from $122.1 million, or $1.02 per share, last week. Sales totaled $2.61 billion, up from $1.98 billion last year. The FactSet consensus was for EPS of $1.37 and sales of $2.42 billion. Comparable sales jumped 26.8% well ahead of the 18.5% FactSet consensus. For the fourth quarter, Tractor Supply expects $1.37 to $1.47, sales of $2.6 billion to $2.7 billion and comparable sales growth of 15% to 20%. The FactSet consensus is for EPS of $1.36, sales of $2.46 billion and same-store sales growth of 9%. The company expects COVID-19-related costs of $17 million to $20 million, and $12 million to $15 million in costs associated with the company's business growth strategy. Tractor Supply stock has gained nearly 52% for the year to date while the S&P 500 index is up 6.6% for the period.
MarketWatch
The stock market is set to fall over the next year — and is unprepared for 2 big risks, says Deutsche Bank’s wealth-management arm
There-is-no-alternative, or TINA, has been a pretty solid investment strategy for those who are riding the stock-market wave. But to Deutsche Bank's international private bank chief investment office, it has its limits.
U.S.News & World Report
The 7 Best Biotech Stocks to Buy Today
Biotech companies utilize cutting-edge science to create medicines and treatments for a plethora of diseases, making them unique investment opportunities for investors looking to cash in on a cure. Smart investors will look for biotech stocks that have drug pipelines full of good prospects, as well as balance sheets strong enough to withstand any unforeseen problems. Here are seven biotech stocks to buy that fit the bill.
Benzinga
Pfizer's COVID-19 Vaccine Candidate Primed For $3.5B In 2021 Sales: Analyst
The mRNA coronavirus vaccine in development by Pfizer Inc. (NYSE: PFE) and BioNTech SE - ADR (NASDAQ: BNTX) is poised for an emergency use authorization application, according to SVB Leerink. The Pfizer Analyst: Geoffrey Porges has a Market Perform rating on Pfizer shares.The Pfizer Thesis: Pfizer-BioNTech's vaccine candidate BNT162b2 will likely report interim efficacy results within the next few weeks and then advance to an emergency use filing, Porges said in a note.BNT162b2 has a high likelihood of achieving its efficacy and safety outcomes and advancing to at least initial emergency approval in November, the analyst said."We believe there is a high probability of BNT162b2 being granted an EUA for high risk populations in the fourth quarter." Related Link: The Week Ahead In Biotech: Spectrum Pharma FDA Decision, Biogen And Abbott Earnings, Cancer Conference SVB Leerink's vaccine market model assumes permanent risk from SARS-CoV-2, necessitating re-vaccination every two years to maintain protective immunity, Porges said. Relatively high vaccine penetration to the tune of 80% is likely in health care workers and high-risk adults such as the elderly and those with comorbidities, and low penetration is foreseen for low-risk adults and ultimately children, the analyst said."We also forecast an initial large bolus of vaccination in 2021-2022E given the size of the COVID naive population, followed by a stable re-vaccination trend into 2030Es," he said. Porges expects two initial doses for priming immunization, and then a single booster every two years.Given Pfizer's lead position in clinical development, strong immunogenicity data and seemingly clean safety profile, BNT162b2 is expected to take more than 50% of the market share initially, which would decrease over time to 25% as more products enter the market place, the analyst said.Pfizer's vaccine is expected to be priced at $30 per dose in the U.S. and $23 in regions outside of the U.S. initially, with the price falling to $11-$15 per dose over time, he said. Incorporating BNT162b2 in SVB Leerink's Pfizer model with an 80% probability of success, Porges said he expects it to generate $3.54 billion in sales in 2021 and $1.57 billion in 2024.PFE Price Action: Pfizer shares were down 0.56% at $37.28 at last check Wednesday. Related Link: FDA's COVID-19 Vaccine Guidance Shows 'Substantial' Obligations For Developers: Analyst Latest Ratings for PFE DateFirmActionFromTo Oct 2020Atlantic EquitiesDowngradesOverweightNeutral Sep 2020BerenbergInitiates Coverage OnHold Jul 2020Morgan StanleyMaintainsEqual-Weight View More Analyst Ratings for PFE View the Latest Analyst RatingsSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * The Daily Biotech Pulse: Prothena Progress In Parkinson's Disease Pipeline, Fast Track For Xeris, Biogen Earnings * Moderna Nears Finish Line For Enrollment In Phase 3 Coronavirus Vaccine Study(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

S&P 500

Dow 30

Nasdaq

Russell 2000

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

Corus Entertainment Announces Fiscal 2020 Fourth Quarter and Year End Results

Latest Stories

Former North Carolina waitress sues employer after sex tape circulates, she receives threats: lawsuit

Jim Cramer Likes These Stocks If Joe Biden Wins The Election

Mortgage rates fall to record lows for the 11th time this year, but new challenges for first-time buyers remain

Pioneer CEO Predicts ‘Only Three or Four’ U.S. Oil Stocks Are Worth Buying

Playing the Market Is a Bad Idea, Especially Now

Siberian Gold Deposit Has World’s Largest Reserves

AT&T Earnings Were Good Enough to End a 10-Day Losing Streak. Here’s Why.

Americans tend to blow an inheritance — here’s how to be prudent and have some fun too

2 “Strong Buy” Dividend Stocks Yielding at Least 9%

Tesla plays smoke and mirrors with profits again

AT&T Tops Q3 Revenue Forecasts on HBO, Phone Subscriber Gains

The high yields on municipal bonds are tempting, but you need to be mindful of these hidden risks

Why Natural Gas Is The Most Important Fuel Of the Next Decade

AT&T Shares Jump As Wireless Subscribers Prove To Be A Bright Spot

Exxon Mobil 'very close' to disclosing U.S., Canada job cuts, says CEO

Huawei Outhustles Trump by Stockpiling Chips Needed for China 5G

Tractor Supply earnings beat but shares fall

The stock market is set to fall over the next year — and is unprepared for 2 big risks, says Deutsche Bank’s wealth-management arm

The 7 Best Biotech Stocks to Buy Today

Pfizer's COVID-19 Vaccine Candidate Primed For $3.5B In 2021 Sales: Analyst