Media Central Corporation Report on Financial Results for the Year Ended

Cost


TORONTO, April 30, 2021 /CNW/ – Media Central Corporation Inc. (CSE: FLYY) (FSE: 3AT) (“Media Central” or the “Company” or “we” or “us”) on April 28, 2021, released full year financial statements and Management Discussion & Analysis for the year, ending December 31, 2020.  Investors are cautioned against inferring future financial results on the basis of the 2020 results as the Company’s two significant operational assets: NOW Magazine and The Georgia Straight have been materially affected by the economic environment resulting from the COVID19 virus since March 2020.

“Our 2020 results reflect the tireless efforts of the staff and management team to adapt our business to the changes caused by COVID19”, said Manos Pavlakis, Board Chairman of Media Central. “2020 was the first full year of operations for NOW Magazine and we operated Georgia Straight for 10 months and as such it was a transition year that included extraordinary one-time costs related to the integration of both entities.  In recent months, we have seen a small rebound in advertising revenue, though uncertainty about the timing of the economic recovery remains.   We are adopting new business models to adapt to the ‘new normal’ market conditions and we expect to emerge with enhanced digital product offerings, new partnerships and increased print distribution as economic conditions improve. We continue to produce award-winning journalism through our talented group of writers and editors on multiple platforms that appeal to highly engaged audiences. We look forward to sharing exciting new developments as they unfold.”

PRESENTATION OF FINANCIAL INFORMATION AND NON-IFRS MEASURES

Unless otherwise specified herein, financial results, including historical comparatives contained in this press release are based on Media Central Corporation Inc.’s 2020 Annual Consolidated Financial Statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee (“IFRIC”).  Unless otherwise specified, amounts are in thousands of Canadian dollars and percentage changes are calculated using whole numbers.

In addition to reported IFRS measures, industry practice is to evaluate media companies giving consideration to certain non-IFRS performance measures, such as Adjusted EBITDA, as reported below. For further details, please refer to Non-IFRS Measures.

RESULTS OF OPERATIONS

Select Annual Information 

For the year ended December 31,


2020

2019



$

$

Operating results




Revenue


1,905

166

Gross profit


1,485

119

Loss and comprehensive loss for the year


(4,560)

(7,116)

Loss per share




Basic loss per share


(0.014)

(0.025)

Diluted loss per share


(0.014)

(0.025)





As at December 31,


2020

2019





Total assets


$2,623

$3,332

Total debt (ii)


$2,413

$639

Debt to total assets (i) (iii)


92% 

19% 

EBITDA (i) (iv)


$(4,117)

$(7,062)

Adjusted EBITDA (i) (iv)


$(3,865)

$(1,834)

(i)

Represents a non-IFRS measure. Media Central’s method for calculating non-IFRS measures may differ from other reporting issuers’ methods and accordingly may not be comparable. For definitions and basis of presentation of Media Central’s non-IFRS measures, refer to 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 calculated as total debt divided by total assets.

(iv)

EBITDA and Adjusted EBITDA is calculated on a trailing twelve-month basis. Refer to the non-IFRS measures section of this press release for further details.   

Adjusted EBITDA 





Twelve months ended December 31,


2020

2019



$

$

Loss for the period


(4,560)

(7,116)

Add (deduct):




Income taxes


Finance costs


248

4

Depreciation and amortization


196

50

EBITDA (i)


(4,117)

(7,062)





EBITDA


(4,117)

(7,062)

Add:




Stock-based compensation


106

2,634

Listing expenses


145

2,594

Adjusted EBITDA (i)


(3,865)

(1,834)

(i)

Refer to non-IFRS measures section of this press release for further details.

Corporate Highlights for the year ended December 31, 2020  

  • On February 21, 2020, the Group completed a non-brokered private placement of senior secured convertible notes (“Debentures”) and warrants for total gross proceeds of $1,626, net of financing costs of $108 and 3,178 warrants valued at $471.
  • On March 2, 2020, the Group acquired the assets of Vancouver Free Press Corp.
  • On July 7, 2020, certain holders of the convertible debentures exercised their option to convert the debt into common shares, resulting in an issuance of 7,143 common shares valued at $500 par value. The value attributable to the converted warrants was $155.
  • In August 2020, in accordance with the original NOW purchase and sale agreement, $500 was released from escrow and returned to the Group, resulting in a reduction of the overall purchase price.
  • During the year, the Group issued shares for services rendered by consultants of $641 through issuance of 10,469 shares.

FORWARD-LOOKING INFORMATION

Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release may include, but are not limited to, statements with respect to internal expectations, expectations with respect to 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; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the media industry generally, income tax and regulatory matters; the ability of Media Central to implement its business strategies; competition; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive and should carefully review the various risks and uncertainties identified in the Company’s filings on SEDAR. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

ADDITIONAL INFORMATION

About Media Central Corporation Inc.
Media Central Corporation Inc. (CSE: FLYY, FSE: 3AT) is an alternative media company situated to acquire and develop high-quality publishing assets starting with the recent acquisition of Vancouver Free Press Corp., the purchase of NOW Communications Inc. and the launch…



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