The Company Announces a 33.3% Increase of its
Dividend and the Renewal of its Normal Course Issuer Bid
Montréal, December 13, 2011 - Astral Media Inc. (TSX : ACM.A ACM.B) today held its Fiscal 2011 Annual and Special Meeting of Shareholders, at which President and Chief Executive Officer Ian Greenberg reminded shareholders of the Company's record financial performance in Fiscal 2011 and discussed its future growth plans.
"Fiscal 2011 will go down in history as a milestone year for Astral as we celebrated the Company's 50th anniversary. This year also marked the first time that we exceeded the billion dollar revenue mark, while reaching 15 consecutive years of profitable growth. This performance can be attributed to the balanced contribution of Astral's three business units — Television, Radio and Out-of-Home — which continued to outperform the industry in the majority of our markets. Combined with our financial discipline, this performance allowed us to generate $145 million in free cash flow; of that amount, $65 million was used to pay down debt and $70 million was allocated to repurchasing shares under our normal course issuer bid," said Mr. Greenberg.
"Our solid track record and healthy balance sheet also enabled us to further invest in our brands and properties to ensure that they remain must-buys in their respective markets and that they continue to be highly attractive to consumers. As we look forward, the focus of our team will be on adjusting to the ever-changing media landscape, analyzing industry trends and seizing opportunities that may present themselves, always with the underlying objectives of growing the Company and creating value for our shareholders," added Mr. Greenberg.
Dividend Increase
At its Fiscal 2011 Annual and Special Meeting of Shareholders, the Company also announced that its Board of Directors had approved a significant 33.3% increase of its annual dividend, paid to holders of its Class A and Class B shares. The annual dividend will increase from $0.75 to $1.00 per share, or $0.50 on a semi-annual basis.
Renewal of the Normal Course Issuer Bid
During the course of the meeting, the Company also announced the renewal of its normal course issuer bid.
Founded in 1961, Astral is one of Canada's largest media companies. It operates several of the country's most popular pay and specialty television, radio, out-of-home advertising and digital media properties. Astral plays a central role in community life from coast to coast by offering diverse, rich and vibrant programming that meets the tastes and needs of consumers and advertisers. To learn more about Astral, visit astral.com.
This press release contains certain forward-looking statements concerning the future performance of the Company. These forward-looking statements are based on current expectations. By its very nature, all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including technological change, economic conditions, regulatory change, competitive factors and changes in accounting rules or standards, many of which are beyond the Company's control. We disclaim any intention or obligation to update or revise any forward-looking statements.
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Photographs of the event will be available on the CNW website, newswire.ca.