Shaw Communications Inc.
Financial position
Total assets were $15.9 billion at February 28, 2021 compared to $16.2 billion at August 31, 2020. The following is a
discussion of significant changes in the Consolidated Statements of Financial Position since August 31, 2020.
Current assets
decreased $254 million primarily due to a decrease in cash of $375 million which was partially offset by increases in accounts receivables of $62 million, inventories of $10 million, other current assets of $32 million and
income taxes recoverable of $21 million. Cash decreased primarily due to the payment of $300 million in dividends, $300 million for share repurchases, as described below, and cash outlays for investing activities, partially offset by
funds flow from operations. Refer to Liquidity and capital resources for more information.
Accounts receivable increased
$62 million mainly due to timing, as the Company continues to migrate customers from two-month advance billing to one-month advance billing, and the impact of an
$18 million capital project reimbursement accrual recorded in the period.
The current portion of contract assets decreased slightly
over the period mainly due to a decrease in deferred Wireline costs as a result of lower onboarding promotional activity for new subscribers over the past year. Under IFRS 15, up-front promotional offers, such
as onboarding or switch credits, offered to new two-year value-plan customers is recorded as a contract asset and amortized over the life of the contract against future service revenues.
Property, plant and equipment decreased $51 million as the amortization of capital and right-of-use assets exceeded the capital investments and additions to right-of-use assets in the period.
Current liabilities decreased $134 million during the period primarily due to a $64 million decrease in accounts payable and a
decrease in income taxes payable of $57 million.
Accounts payable and accrued liabilities decreased due to the timing of payments
and fluctuations in various payables including capital expenditures and tax remittances. The decrease in current provisions was mainly due to the payment of outstanding restructuring costs in the period, partially offset by an increase in regulatory
provisions.
Lease liabilities increased $20 million mainly due to $78 million in new lease liabilities, partially offset by
principal repayments of $58 million in the period.
Shareholders equity decreased $196 million mainly due to a decrease in
retained earnings. Retained earnings decreased as the current period income of $380 million was more than fully offset by dividends of $300 million and the impact of shares repurchased under the normal course issuer bid (NCIB) program of
$184 million. Share capital decreased $115 million due to the impact of 13,224,772 Class B Shares repurchased under the terms of the Companys NCIB program which was partially offset by the issuance of 28,300 Class B Shares
under the Companys stock option plan. Accumulated other comprehensive loss decreased $23 million due to the remeasurement recorded on employee benefit plans in the period.
As at March 31, 2021, there were 476,278,172 Class B Shares, 10,012,393 Cumulative Redeemable Rate Reset Class 2 Preferred
Shares, Series A, 1,987,607 Cumulative Redeemable Floating Rate Class 2 Preferred Shares, Series B and 22,372,064 Class A Shares issued and outstanding. As at March 31, 2021, 7,801,230 Class B Shares were issuable on exercise of
outstanding options. Shaw is traded on the Toronto and New York stock exchanges and is included in the S&P/TSX 60 Index (Trading Symbols: TSX SJR.B, SJR.PR.A, SJR.PR.B, NYSE SJR, and TSXV SJR.A). For more information, please
visit www.shaw.ca.
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