CANWEST GLOBAL COMMUNICATIONS CORP. Exhibit 3
COMBINED FINANCIAL INFORMATION
FOR THE 9 MONTHS ENDED MAY 31, 2003 AND 2002
(UNAUDITED)
The following financial information has been prepared on a combined basis to
proportionately consolidate the Company's 57.1% (57.5% to February 27, 2003)
interest in Network TEN. This financial information is supplemental to the
Company's consolidated financial statements and is designed to provide more
complete disclosure of the scope of the Company's operations.
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENTS OF EARNINGS
(UNAUDITED)
(IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT AS OTHERWISE NOTED)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
MAY 31 MAY 31 MAY 31 MAY 31
2003 2002 2003 2002
REVENUE 688,744 698,270 2,031,952 2,017,748
Operating expenses 509,796 519,550 1,512,913 1,519,196
-------- -------- ---------- ----------
OPERATING INCOME BEFORE UNDERNOTED 178,948 178,720 519,039 498,552
Corporate expenses 6,728 7,401 17,197 18,391
Restructuring expenses 21,053 - 21,053 -
-------- -------- ---------- ----------
OPERATING INCOME BEFORE AMORTIZATION
(EBITDA) 151,167 171,319 480,789 480,161
Amortization of intangibles 4,375 4,375 13,125 13,125
Amortization of property, plant and equipment 19,576 21,264 61,401 60,761
Other amortization 1,403 1,825 5,435 5,617
-------- -------- ---------- ----------
OPERATING INCOME (EBIT) 125,813 143,855 400,828 400,658
Financing expenses (96,971) (92,079) (289,032) (295,418)
Dividend income 1,999 1,883 3,532 3,241
-------- -------- ---------- ----------
30,841 53,659 115,328 108,481
Investment gain (loss) net of write downs (2,277) - 19,831 63,020
Interest rate swap loss (4,767) - (13,634) -
-------- -------- ----------- ----------
EARNINGS BEFORE INCOME TAXES (EBT) 23,797 53,659 121,525 171,501
Provision for income taxes 12,650 23,735 30,383 47,247
-------- -------- ---------- ----------
EARNINGS BEFORE THE FOLLOWING 11,147 29,924 91,142 124,254
Minority interests - 1,293 - 6,261
Goodwill impairment loss - - - (11,387)
Interest in loss of equity accounted affiliates (256) (529) (1,035) (966)
Realized currency translation adjustments 1,593 - 693 (1,000)
-------- -------- ---------- ----------
NET EARNINGS FOR THE PERIOD 12,484 30,688 90,800 117,162
======== ======== ========== ==========
EARNINGS PER SHARE:(1)
BASIC $ 0.07 $ 0.17 $ 0.47 $ 0.66
DILUTED $ 0.07 $ 0.17 $ 0.47 $ 0.64
(1) Earnings per share have been calculated on the basis of the weighted average
number of shares outstanding during the nine months of 177,068,661 (2002 -
176,921,717).
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED BALANCE SHEETS
(UNAUDITED)
(IN THOUSANDS OF CANADIAN DOLLARS)
AS AT
----------------------------------------
MAY 31 AUGUST 31
2003 2002
ASSETS
CURRENT ASSETS
Cash 112,026 66,904
Accounts receivable 624,823 527,475
Income taxes recoverable - 67,253
Inventory 13,018 19,836
Investment in film and television programs 173,977 161,771
Future income taxes 32,777 30,013
Other 12,432 19,654
--------- ---------
969,053 892,906
Other investments 173,764 163,619
Investment in film and television programs 300,691 317,176
Property, plant and equipment 697,283 734,499
Other assets 97,568 106,750
Intangibles and goodwill 3,724,242 3,870,526
--------- ---------
5,962,601 6,085,476
========= =========
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities 389,023 479,365
Income taxes payable 12,675 -
Film and television program accounts payable 105,799 64,834
Deferred revenue 47,902 60,596
Current portion of long term debt 78,492 187,167
--------- ---------
633,891 791,962
Long term debt 3,529,395 3,566,116
Other accrued liabilities 125,289 100,259
Future income taxes 465,398 451,228
--------- ---------
4,753,973 4,909,565
--------- ---------
SHAREHOLDERS' EQUITY
Capital stock 846,814 896,422
Contributed surplus 3,647 3,647
Retained earnings 400,504 317,376
Cumulative foreign currency translation
adjustments (42,337) (41,534)
--------- ---------
1,208,628 1,175,911
--------- ---------
5,962,601 6,085,476
========= =========
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
(IN THOUSANDS OF CANADIAN DOLLARS)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
MAY 31 MAY 31 MAY 31 MAY 31
2003 2002 2003 2002
RETAINED EARNINGS - BEGINNING OF
PERIOD, AS PREVIOUSLY REPORTED 388,020 390,832 317,376 475,053
Adjustment for adoption of new
accounting pronouncements - - - (170,695)
------- ------- ------- --------
RETAINED EARNINGS - BEGINNING OF
PERIOD, AS ADJUSTED 388,020 390,832 317,376 304,358
Excess of redemption price over carrying
value of preferred shares - - (7,672) -
Net earnings for the period 12,484 30,688 90,800 117,162
------- ------- ------- --------
RETAINED EARNINGS - END OF PERIOD 400,504 421,520 400,504 421,520
======= ======= ======= ========
CANWEST GLOBAL COMMUNICATIONS CORP.
COMBINED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS OF CANADIAN DOLLARS, EXCEPT AS OTHERWISE NOTED)
FOR THE THREE MONTHS ENDED FOR THE NINE MONTHS ENDED
MAY 31 MAY 31 MAY 31 MAY 31
2003 2002 2003 2002
CASH GENERATED (UTILIZED) BY:
OPERATING ACTIVITIES
Net earnings for the period 12,484 30,688 90,800 117,162
Items not affecting cash
Amortization 25,374 29,879 84,793 86,748
Interest paid in kind 28,597 27,340 85,585 78,153
Future income taxes 1,396 3,016 7,480 29,230
Interest in loss of equity accounted affiliates 256 529 1,035 966
Minority interests - (1,537) - (8,451)
Goodwill impairment loss - - - 11,387
Investment gain (loss) net of write downs 2,277 - (19,831) (63,020)
Interest rate swap loss 4,767 - 13,634 -
Realized currency translation adjustments (1,593) - (693) 1,000
--------- --------- --------- ---------
73,558 89,915 262,803 253,175
Investment in film and television programs (24,196) (28,923) (100,181) (133,628)
Amortization of film and television programs 38,474 27,352 110,011 108,089
Other changes in non-cash operating
accounts (23,533) (56,557) (91,912) (241,475)
--------- --------- --------- ---------
64,303 31,787 180,721 (13,839)
--------- --------- --------- ---------
INVESTING ACTIVITIES
Other investments (2,748) (4,408) (7,221) (4,408)
Proceeds from Network TEN dilution 540 - 6,039 -
Proceeds from sale of other investments - - - 87,000
Proceeds from divestitures - - 193,500 133,039
Purchase of property, plant and equipment (10,656) (14,116) (31,558) (50,612)
--------- --------- --------- ---------
(12,864) (18,524) 160,760 165,019
--------- --------- --------- ---------
FINANCING ACTIVITIES
Issuance of long term debt 402,851 - 493,825 -
Repayment of long term debt (418,019) (53,656) (732,904) (113,100)
Issuance of share capital - - 392 520
Preferred share redemption - - (57,672) -
Net change in bank loans and advances - - - (28,999)
--------- --------- --------- ---------
(15,168) (53,656) (296,359) (141,579)
--------- --------- --------- ---------
NET CHANGE IN CASH 36,271 (40,393) 45,122 9,601
CASH - BEGINNING OF PERIOD 75,755 79,712 66,904 29,718
--------- --------- --------- ---------
CASH - END OF PERIOD 112,026 39,319 112,026 39,319
========= ========= ========= =========
CASH FLOW FROM OPERATIONS PER SHARE: (1)(2)
BASIC $ 0.42 $ 0.51 $ 1.48 $ 1.43
DILUTED $ 0.42 $ 0.49 $ 1.48 $ 1.39
(1) Cash flow from operations per share has been calculated on the basis of the
weighted average number of shares outstanding during the nine months of
177,068,661 (2002 - 176,921,717).
(2) Cash flow from operations is defined as cash flow from operations before
investment in and amortization of film and television programs and other
changes in non-cash operating accounts.