- Cogeco Connexion reported a fifth consecutive quarter of
strong Internet subscriber growth, driven by a mix of new customers
added under the Cogeco brand, which include fibre-to-the-home
network expansions, and its digital oxio brand.
- Breezeline to launch mobile service within its U.S.
broadband footprint starting this spring.
- Revenue declined by 0.8% compared to the same period last
year to $730.5 million, as revenue
growth at Cogeco Connexion was offset by lower revenue at
Breezeline.
- Adjusted EBITDA(1) of $347.1 million decreased by 1.2% over last year,
in line with our expectations. Profit for the period amounted to
$96.6 million, a decrease of 7.4%, of
which $93.7 million was attributable
to owners of the Corporation.
- Earnings per share on a diluted basis increased to
$2.20 from $2.19 in the second quarter of fiscal 2023,
reflecting the benefit of the Corporation's repurchase and
cancellation of shares.
- Free cash flow(1) amounted to $100.2 million, a decrease of 15.1% compared to
last year, due to higher net capital expenditures, while cash flow
from operating activities increased by 40.6% to $285.4 million. Free cash flow, excluding network
expansion projects(1) decreased by 22.2% to $124.5 million.
- Cogeco Communications maintains its fiscal 2024 financial
guidelines.
- A quarterly dividend of $0.854
per share was declared, representing a 10.1% increase over the
prior year.
MONTRÉAL, April 11,
2024 /CNW/ - Today, Cogeco Communications Inc. (TSX:
CCA) ("Cogeco Communications" or the "Corporation") announced its
financial results for the second quarter ended February 29,
2024.
"During the quarter, we continued to execute on multiple
initiatives, including pursuing several fibre-to-the-home network
expansion projects," stated Frédéric Perron, President and Chief
Executive Officer of Cogeco Communications Inc. "We also
leveraged the technological enhancements we have made to our
networks to drive growth in our Internet customer base, notably
those subscribing to higher speeds. On the wireless front, we
recently announced the launch of Breezeline Mobile, using a
capital-light MVNO approach, and are making progress with our
wireless preparations in Canada."
"While we operate in a challenging environment, value creation
continues to be at the forefront of our strategy and culture. Our
plans will therefore place a strong focus on driving profitable
growth through digitization and operational effectiveness,"
continued Mr. Perron. "I look forward to leading Cogeco
Communications on its ambitious path of delivering high-quality and
cost-effective telecommunications services to our customers across
both of the countries we serve. I want to thank all of our
customers and stakeholders for their support in this journey,"
concluded Mr. Perron.
Consolidated Financial Highlights
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
Change
|
Change in
constant
currency
|
(1)
|
(In thousands of
Canadian dollars, except % and per share data)
(unaudited)
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
730,501
|
|
736,646
|
|
(0.8)
|
(0.7)
|
|
Adjusted EBITDA
(1)
|
347,112
|
|
351,215
|
|
(1.2)
|
(1.0)
|
|
Adjusted EBITDA margin
(1)
|
47.5 %
|
|
47.7 %
|
|
|
|
|
Profit for the
period
|
96,562
|
|
104,262
|
|
(7.4)
|
|
|
Profit for the period
attributable to owners of the Corporation
|
93,681
|
|
98,378
|
|
(4.8)
|
|
|
Adjusted profit
attributable to owners of the Corporation
(1)(3)
|
94,054
|
|
103,488
|
|
(9.1)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
285,434
|
|
203,043
|
|
40.6
|
|
|
Free cash flow
(1)
|
100,155
|
|
117,939
|
|
(15.1)
|
(15.4)
|
|
Free cash flow,
excluding network expansion projects (1)
|
124,545
|
|
160,181
|
|
(22.2)
|
(22.5)
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
180,247
|
|
172,967
|
|
4.2
|
|
|
Net capital
expenditures (1)(2)
|
170,769
|
|
156,125
|
|
9.4
|
9.8
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
146,379
|
|
113,883
|
|
28.5
|
29.0
|
|
|
|
|
|
|
|
|
|
Capital intensity
(1)
|
23.4 %
|
|
21.2 %
|
|
|
|
|
Capital intensity,
excluding network expansion projects (1)
|
20.0 %
|
|
15.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
2.20
|
|
2.19
|
|
0.5
|
|
|
Adjusted diluted
earnings per share (1)(3)
|
2.21
|
|
2.31
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the second quarter of fiscal 2024 ended on February 29,
2024:
- Revenue decreased by 0.8% to $730.5
million. On a constant currency basis(1), revenue
decreased by 0.7% due to revenue growth in the Canadian
telecommunications segment being offset by a decline in the
American telecommunications segment, as explained below.
- Canadian telecommunications' revenue increased by 1.4%, mainly
driven by the oxio acquisition completed on March 3, 2023 as well as the cumulative effect of
high-speed Internet service additions over the past year.
- American telecommunications' revenue decreased by 3.1%, or 2.8%
in constant currency, mainly due to lower video subscriptions and a
lower customer base over the past year, with an increasing
proportion of customers only subscribing to Internet services,
partly offset by higher revenue per customer and a better product
mix resulting from customers subscribing to increasingly fast
Internet speeds.
- Adjusted EBITDA decreased by 1.2% to $347.1 million. On a constant currency basis,
adjusted EBITDA decreased by 1.0%, mainly due to higher corporate
costs, primarily due to the timing of certain operating expenses,
including in relation to its plan to offer mobile services in
Canada, while adjusted EBITDA
remained stable in both the Canadian and American
telecommunications segments, as explained below.
- Canadian telecommunications adjusted EBITDA remained stable
mainly due to revenue growth being offset by higher sales and other
operating expenses to drive and support customer growth.
- American telecommunications adjusted EBITDA remained stable
mostly due to a better product mix of higher margin services and
lower operating expenses driven by cost reduction initiatives and
operating efficiencies, partially offset by a lower customer
base.
- Profit for the period amounted to $96.6
million, of which $93.7
million, or $2.20 per diluted
share, was attributable to owners of the Corporation compared to
$104.3 million, $98.4 million, and $2.19 per diluted share, respectively, in the
comparable period of fiscal 2023. The decreases in profit for the
period and profit attributable to owners of the Corporation
resulted mainly from higher depreciation and amortization expense
and financial expense, and lower adjusted EBITDA, partly offset by
lower income tax expense and acquisition, integration,
restructuring and other costs.
- Adjusted profit attributable to owners of the
Corporation(3) was $94.1
million, or $2.21 per diluted
share(3), compared to $103.5
million, or $2.31 per diluted
share, last year.
- Net capital expenditures were $170.8
million, an increase of 9.4% compared to $156.1 million in the same period of the prior
year. In constant currency, net capital expenditures(1)
were $171.4 million, an increase of
9.8% compared to last year, mainly due to higher costs in relation
to customer premise equipment in the Canadian telecommunications
segment, partly offset by lower spending in the American
telecommunications segment, mainly due to the timing of network
expansion projects.
- Excluding network expansion projects, net capital expenditures
were $146.4 million, an increase of
28.5% compared to $113.9 million in
the same period of the prior year. In constant currency, net
capital expenditures, excluding network expansion
projects(1) were $147.0 million, an increase of 29.0%
compared to last year.
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States, with homes passed additions
of more than 32,000 during the first six months of fiscal
2024.
- Capital intensity was 23.4% compared to 21.2% last year.
Excluding network expansion projects, capital intensity was 20.0%
compared to 15.5% in the same period of the prior year.
- Acquisition of property, plant and equipment increased by 4.2%
to $180.2 million, mainly due to
higher costs in the Canadian telecommunications segment, partly
offset by lower spending in the American telecommunications
segment.
- Free cash flow decreased by 15.1%, or 15.4% in constant
currency, and amounted to $100.2
million, or $99.8 million in
constant currency, mainly due to higher net capital expenditures.
Free cash flow, excluding network expansion projects decreased by
22.2%, or 22.5% in constant currency, and amounted to $124.5 million, or $124.2
million in constant currency.
- Cash flows from operating activities increased by 40.6% to
$285.4 million, resulting mostly from
the timing of trade and other payables and trade accounts
receivable, lower income taxes paid and acquisition, integration,
restructuring and other costs, offset in part by higher interest
paid and lower adjusted EBITDA.
- Cogeco Communications maintains its fiscal 2024 financial
guidelines as issued on November 1,
2023.
- At its April 11, 2024 meeting,
the Board of Directors of Cogeco Communications declared a
quarterly eligible dividend of $0.854
per share, an increase of 10.1% compared to $0.776 per share in the comparable quarter of
fiscal 2023.
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Adjusted
EBITDA margin and capital intensity are supplementary financial
measures. Constant currency basis, adjusted profit attributable to
owners of the Corporation, net capital expenditures, excluding
network expansion projects, free cash flow and free cash flow,
excluding network expansion projects are non-IFRS financial
measures. Change in constant currency, capital intensity, excluding
network expansion projects and adjusted diluted earnings per share
are non-IFRS ratios. These indicated terms do not have standardized
definitions prescribed by International Financial Reporting
Standards ("IFRS") and, therefore, may not be comparable to similar
measures presented by other companies. For more information on
these financial measures, please consult the "Non-IFRS and
other financial measures" section of this press release.
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
(3)
|
Excludes the impact of
acquisition, integration, restructuring and other costs, net of tax
and non-controlling interest.
|
Financial highlights
Three and six months
ended
|
February 29,
2024
|
February 28,
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
February 29,
2024
|
February 28,
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
(In thousands of
Canadian dollars, except % and per share data)
|
$
|
$
|
%
|
%
|
|
$
|
$
|
%
|
%
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
730,501
|
736,646
|
(0.8)
|
(0.7)
|
|
1,478,190
|
1,498,946
|
(1.4)
|
(1.6)
|
|
Adjusted EBITDA
(2)
|
347,112
|
351,215
|
(1.2)
|
(1.0)
|
|
706,072
|
718,438
|
(1.7)
|
(1.9)
|
|
Adjusted EBITDA margin
(2)
|
47.5 %
|
47.7 %
|
|
|
|
47.8 %
|
47.9 %
|
|
|
|
Acquisition,
integration, restructuring and other
costs (3)
|
885
|
6,952
|
(87.3)
|
|
|
3,501
|
9,629
|
(63.6)
|
|
|
Profit for the
period
|
96,562
|
104,262
|
(7.4)
|
|
|
192,314
|
224,637
|
(14.4)
|
|
|
Profit for the period
attributable to owners of the Corporation
|
93,681
|
98,378
|
(4.8)
|
|
|
183,174
|
209,882
|
(12.7)
|
|
|
Adjusted profit
attributable to owners of the Corporation
(2)(4)
|
94,054
|
103,488
|
(9.1)
|
|
|
197,780
|
216,959
|
(8.8)
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
285,434
|
203,043
|
40.6
|
|
|
522,416
|
397,202
|
31.5
|
|
|
Free cash flow
(2)
|
100,155
|
117,939
|
(15.1)
|
(15.4)
|
|
237,748
|
223,067
|
6.6
|
6.3
|
|
Free cash flow,
excluding network expansion projects (2)
|
124,545
|
160,181
|
(22.2)
|
(22.5)
|
|
293,798
|
331,143
|
(11.3)
|
(11.5)
|
|
Acquisition of
property, plant and equipment
|
180,247
|
172,967
|
4.2
|
|
|
333,796
|
407,604
|
(18.1)
|
|
|
Net capital
expenditures (2)(5)
|
170,769
|
156,125
|
9.4
|
9.8
|
|
317,196
|
353,096
|
(10.2)
|
(10.3)
|
|
Net capital
expenditures, excluding network expansion projects
(2)
|
146,379
|
113,883
|
28.5
|
29.0
|
|
261,146
|
245,020
|
6.6
|
6.5
|
|
Capital intensity
(2)
|
23.4 %
|
21.2 %
|
|
|
|
21.5 %
|
23.6 %
|
|
|
|
Capital intensity,
excluding network expansion projects (2)
|
20.0 %
|
15.5 %
|
|
|
|
17.7 %
|
16.3 %
|
|
|
|
Per share data
(6)
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.21
|
2.21
|
—
|
|
|
4.23
|
4.66
|
(9.2)
|
|
|
Diluted
|
2.20
|
2.19
|
0.5
|
|
|
4.21
|
4.64
|
(9.3)
|
|
|
Adjusted diluted
(2)(4)
|
2.21
|
2.31
|
(4.3)
|
|
|
4.55
|
4.79
|
(5.0)
|
|
|
Dividends per
share
|
0.854
|
0.776
|
10.1
|
|
|
1.708
|
1.552
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Key performance
indicators presented on a constant currency basis are obtained by
translating financial results from the current period denominated
in US dollars at the foreign exchange rate of the comparable period
of the prior year. For the three and six-month periods ended
February 28, 2023, the average foreign exchange rates used for
translation were 1.3488 USD/CDN and 1.3489 USD/CDN,
respectively.
|
(2)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Adjusted
EBITDA margin and capital intensity are supplementary financial
measures. Adjusted profit attributable to owners of the
Corporation, free cash flow, free cash flow, excluding network
expansion projects and net capital expenditures, excluding network
expansion projects are non-IFRS financial measures. Change in
constant currency, capital intensity, excluding network expansion
projects and adjusted diluted earnings per share are non-IFRS
ratios. These indicated terms do not have standardized definitions
prescribed by IFRS and, therefore, may not be comparable to similar
measures presented by other companies. For more information on
these financial measures, please consult the "Non-IFRS and other
financial measures" section of this press release.
|
(3)
|
For the three and
six-month periods ended February 29, 2024, acquisition,
integration, restructuring and other costs mostly related to costs
associated with the configuration and customization related to
cloud computing and other arrangements, partly offset by a $4.2
million reversal of a charge, recognized during the second quarter
following the Copyright Board decision issued in January 2024 on
the redetermination of the 2014-2018 royalty rates. For the three
and six-month periods ended February 28, 2023, acquisition,
integration, restructuring and other costs resulted mostly from a
$5.1 million retroactive adjustment recognized during the second
quarter following the Copyright Board preliminary conclusions on
the redetermination of the 2014-2018 royalty rates.
|
(4)
|
Excludes the impact of
acquisition, integration, restructuring and other costs, and
gains/losses on debt modification and/or extinguishment, net of tax
and non-controlling interest.
|
(5)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
(6)
|
Per multiple and
subordinate voting share.
|
|
|
|
As at
|
February 29,
2024
|
August 31,
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Financial
condition
|
|
|
Cash and cash
equivalents
|
81,190
|
362,921
|
Total assets
|
9,614,606
|
9,768,370
|
Long-term
debt
|
|
|
Current
|
70,948
|
41,765
|
Non-current
|
4,833,884
|
4,979,241
|
Net indebtedness
(1)
|
4,909,734
|
4,749,214
|
Equity attributable to
owners of the Corporation
|
2,937,011
|
2,957,797
|
|
|
|
(1)
|
Net indebtedness is a
capital management measure. For more information on this financial
measure, please consult the "Non-IFRS and other financial measures"
section of the Corporation's MD&A for the three and six-month
periods ended February 29, 2024, available on SEDAR+
at www.sedarplus.ca.
|
Forward-looking statements
Certain statements contained in this press
release may constitute forward-looking information within the
meaning of securities laws. Forward-looking information may relate
to Cogeco Communications Inc.'s ("Cogeco Communications" or the
"Corporation") future outlook and anticipated events, business,
operations, financial performance, financial condition or results
and, in some cases, can be identified by terminology such as "may";
"will"; "should"; "expect"; "plan"; "anticipate"; "believe";
"intend"; "estimate"; "predict"; "potential"; "continue";
"foresee", "ensure" or other similar expressions concerning matters
that are not historical facts. Particularly, statements relating to
the Corporation's financial guidelines, future operating results
and economic performance, objectives and strategies are
forward-looking statements. These statements are based on certain
factors and assumptions including expected growth, results of
operations, purchase price allocation, tax rates, weighted average
cost of capital, performance and business prospects and
opportunities, which Cogeco Communications believes are reasonable
as of the current date. Refer in particular to the "Corporate
objectives and strategies" section of the Corporation's 2023 annual
MD&A and of the fiscal 2024 second-quarter MD&A, and the
"Fiscal 2024 financial guidelines" section of the Corporation's
2023 annual MD&A for a discussion of certain key economic,
market and operational assumptions we have made in preparing
forward-looking statements. While management considers these
assumptions to be reasonable based on information currently
available to the Corporation, they may prove to be incorrect.
Forward-looking information is also subject to certain factors,
including risks and uncertainties that could cause actual results
to differ materially from what Cogeco Communications currently
expects. These factors include risks such as general market
conditions, competitive risks (including changing competitive
ecosystems and disruptive competitive strategies adopted by our
competitors), business risks, regulatory risks, technology risks
(including cybersecurity), financial risks (including variations in
currency and interest rates), economic conditions (including
inflation pressuring revenue, reduced consumer spending and
increasing costs), talent management risks (including highly
competitive market for limited pool of digitally skilled
employees), human-caused and natural threats to the Corporation's
network (including increased frequency of extreme weather events
with the potential to disrupt operations), infrastructure and
systems, community acceptance risks, ethical behavior risks,
ownership risks, litigation risks and public health and safety,
many of which are beyond the Corporation's control. For more
exhaustive information on these risks and uncertainties, the reader
should refer to the "Uncertainties and main risk factors" section
of the Corporation's 2023 annual MD&A and of the fiscal 2024
second-quarter MD&A. These factors are not intended to
represent a complete list of the factors that could affect Cogeco
Communications and future events and results may vary significantly
from what management currently foresees. The reader should not
place undue importance on forward-looking information contained in
this press release and the forward-looking statements contained in
this press release represent Cogeco Communications' expectations as
of the date of this press release (or as of the date they are
otherwise stated to be made) and are subject to change after such
date. While management may elect to do so, the Corporation is under
no obligation (and expressly disclaims any such obligation) and
does not undertake to update or alter this information at any
particular time, whether as a result of new information, future
events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise
indicated. This press release should be read in
conjunction with the Corporation's MD&A for the three and
six-month periods ended February 29, 2024, the Corporation's
condensed interim consolidated financial statements and the notes
thereto for the same periods prepared in accordance with
International Financial Reporting Standards ("IFRS") and the
Corporation's 2023 Annual Report.
Non-IFRS and other financial
measures
This press release includes references to non-IFRS and other
financial measures used by Cogeco Communications. These financial
measures are reviewed in assessing the performance of Cogeco
Communications and used in the decision-making process with regard
to its business units.
Reconciliations between non-IFRS and other financial measures to
the most directly comparable IFRS financial measures are provided
below. Certain additional disclosures for non-IFRS and other
financial measures used in this press release have been
incorporated by reference and can be found in the "Non-IFRS and
other financial measures" section of the Corporation's MD&A for
the three and six-month periods ended February 29, 2024,
available on SEDAR+ at www.sedarplus.ca. The following
non-IFRS financial measures are used as a component of Cogeco
Communications' non-IFRS ratios.
|
|
Specified non-IFRS
financial measures
|
Used in the
component of the following non-IFRS ratios
|
Adjusted profit
attributable to owners of the Corporation
|
Adjusted diluted
earnings per share
|
Constant currency
basis
|
Change in constant
currency
|
Net capital
expenditures, excluding network expansion projects
|
Capital intensity,
excluding network expansion projects
|
|
|
Financial measures presented on a constant currency basis for
the three and six-month periods ended February 29, 2024
are translated at the average foreign exchange rate of the
comparable periods of the prior year, which were
1.3488 USD/CDN and 1.3489
USD/CDN, respectively.
Constant currency basis and foreign exchange impact
reconciliation
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
730,501
|
|
971
|
|
731,472
|
|
736,646
|
|
(0.8)
|
|
(0.7)
|
|
Operating
expenses
|
378,151
|
|
554
|
|
378,705
|
|
380,031
|
|
(0.5)
|
|
(0.3)
|
|
Management fees –
Cogeco Inc.
|
5,238
|
|
—
|
|
5,238
|
|
5,400
|
|
(3.0)
|
|
(3.0)
|
|
Adjusted
EBITDA
|
347,112
|
|
417
|
|
347,529
|
|
351,215
|
|
(1.2)
|
|
(1.0)
|
|
Free cash
flow
|
100,155
|
|
(344)
|
|
99,811
|
|
117,939
|
|
(15.1)
|
|
(15.4)
|
|
Net capital
expenditures
|
170,769
|
|
596
|
|
171,365
|
|
156,125
|
|
9.4
|
|
9.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars,
except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
1,478,190
|
|
(3,491)
|
|
1,474,699
|
|
1,498,946
|
|
(1.4)
|
|
(1.6)
|
|
Operating
expenses
|
761,642
|
|
(1,953)
|
|
759,689
|
|
769,708
|
|
(1.0)
|
|
(1.3)
|
|
Management fees –
Cogeco Inc.
|
10,476
|
|
—
|
|
10,476
|
|
10,800
|
|
(3.0)
|
|
(3.0)
|
|
Adjusted
EBITDA
|
706,072
|
|
(1,538)
|
|
704,534
|
|
718,438
|
|
(1.7)
|
|
(1.9)
|
|
Free cash
flow
|
237,748
|
|
(520)
|
|
237,228
|
|
223,067
|
|
6.6
|
|
6.3
|
|
Net capital
expenditures
|
317,196
|
|
(464)
|
|
316,732
|
|
353,096
|
|
(10.2)
|
|
(10.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
373,479
|
|
—
|
|
373,479
|
|
368,334
|
|
1.4
|
|
1.4
|
|
Operating
expenses
|
174,720
|
|
63
|
|
174,783
|
|
170,289
|
|
2.6
|
|
2.6
|
|
Adjusted
EBITDA
|
198,759
|
|
(63)
|
|
198,696
|
|
198,045
|
|
0.4
|
|
0.3
|
|
Net capital
expenditures
|
106,345
|
|
428
|
|
106,773
|
|
81,383
|
|
30.7
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
749,927
|
|
—
|
|
749,927
|
|
740,418
|
|
1.3
|
|
1.3
|
|
Operating
expenses
|
354,814
|
|
(128)
|
|
354,686
|
|
343,740
|
|
3.2
|
|
3.2
|
|
Adjusted
EBITDA
|
395,113
|
|
128
|
|
395,241
|
|
396,678
|
|
(0.4)
|
|
(0.4)
|
|
Net capital
expenditures
|
194,181
|
|
40
|
|
194,221
|
|
196,621
|
|
(1.2)
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
357,022
|
|
971
|
|
357,993
|
|
368,312
|
|
(3.1)
|
|
(2.8)
|
|
Operating
expenses
|
190,672
|
|
487
|
|
191,159
|
|
202,254
|
|
(5.7)
|
|
(5.5)
|
|
Adjusted
EBITDA
|
166,350
|
|
484
|
|
166,834
|
|
166,058
|
|
0.2
|
|
0.5
|
|
Net capital
expenditures
|
62,855
|
|
167
|
|
63,022
|
|
73,091
|
|
(14.0)
|
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
728,263
|
|
(3,491)
|
|
724,772
|
|
758,528
|
|
(4.0)
|
|
(4.5)
|
|
Operating
expenses
|
383,743
|
|
(1,829)
|
|
381,914
|
|
409,964
|
|
(6.4)
|
|
(6.8)
|
|
Adjusted
EBITDA
|
344,520
|
|
(1,662)
|
|
342,858
|
|
348,564
|
|
(1.2)
|
|
(1.6)
|
|
Net capital
expenditures
|
118,708
|
|
(505)
|
|
118,203
|
|
153,499
|
|
(22.7)
|
|
(23.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the
Corporation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Profit for the
period attributable to owners of the Corporation
|
93,681
|
98,378
|
183,174
|
209,882
|
Acquisition,
integration, restructuring and other costs
|
885
|
6,952
|
3,501
|
9,629
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
Tax impact for the
above items
|
(219)
|
(1,842)
|
(5,380)
|
(2,552)
|
Non-controlling
interest impact for the above items
|
(293)
|
—
|
(395)
|
—
|
Adjusted profit
attributable to owners of the Corporation
|
94,054
|
103,488
|
197,780
|
216,959
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
Free cash flow reconciliation
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Cash flows from
operating activities
|
285,434
|
203,043
|
522,416
|
397,202
|
Changes in other
non-cash operating activities
|
2,253
|
69,619
|
55,188
|
134,035
|
Income taxes paid
(received)
|
(7,628)
|
22,860
|
(4,725)
|
69,478
|
Current income
taxes
|
(9,189)
|
(12,039)
|
(16,417)
|
(20,415)
|
Interest
paid
|
68,288
|
50,326
|
132,260
|
110,824
|
Financial
expense
|
(68,163)
|
(61,116)
|
(151,457)
|
(118,035)
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
2,007
|
3,028
|
4,681
|
6,072
|
Net capital
expenditures (2)
|
(170,769)
|
(156,125)
|
(317,196)
|
(353,096)
|
Repayment of lease
liabilities
|
(2,078)
|
(1,657)
|
(3,882)
|
(2,998)
|
Free cash
flow
|
100,155
|
117,939
|
237,748
|
223,067
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
Net capital expenditures reconciliation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Acquisition of
property, plant and equipment
|
180,247
|
172,967
|
333,796
|
407,604
|
Subsidies received in
advance recognized as a reduction of the cost of
property, plant and equipment during the period
|
(9,478)
|
(16,842)
|
(16,600)
|
(54,508)
|
Net capital
expenditures
|
170,769
|
156,125
|
317,196
|
353,096
|
|
|
|
|
|
Adjusted EBITDA reconciliation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Profit for the
period
|
96,562
|
104,262
|
192,314
|
224,637
|
Income taxes
|
17,820
|
24,693
|
35,918
|
56,646
|
Financial
expense
|
68,163
|
61,116
|
151,457
|
118,035
|
Depreciation and
amortization
|
163,682
|
154,192
|
322,882
|
309,491
|
Acquisition,
integration, restructuring and other costs
|
885
|
6,952
|
3,501
|
9,629
|
Adjusted
EBITDA
|
347,112
|
351,215
|
706,072
|
718,438
|
|
|
|
|
|
Net capital expenditures and free cash flow excluding network
expansion projects reconciliations
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Net capital
expenditures
|
170,769
|
|
596
|
|
171,365
|
|
156,125
|
|
9.4
|
|
9.8
|
Net capital
expenditures in connection
with network expansion projects
|
24,390
|
|
11
|
|
24,401
|
|
42,242
|
|
(42.3)
|
|
(42.2)
|
Net capital
expenditures, excluding
network expansion projects
|
146,379
|
|
585
|
|
146,964
|
|
113,883
|
|
28.5
|
|
29.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Net capital
expenditures
|
317,196
|
|
(464)
|
|
316,732
|
|
353,096
|
|
(10.2)
|
|
(10.3)
|
Net capital
expenditures in connection
with network expansion projects
|
56,050
|
|
(151)
|
|
55,899
|
|
108,076
|
|
(48.1)
|
|
(48.3)
|
Net capital
expenditures, excluding
network expansion projects
|
261,146
|
|
(313)
|
|
260,833
|
|
245,020
|
|
6.6
|
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Free cash
flow
|
100,155
|
|
(344)
|
|
99,811
|
|
117,939
|
|
(15.1)
|
|
(15.4)
|
Net capital
expenditures in connection
with network expansion projects
|
24,390
|
|
11
|
|
24,401
|
|
42,242
|
|
(42.3)
|
|
(42.2)
|
Free cash flow,
excluding
network expansion projects
|
124,545
|
|
(333)
|
|
124,212
|
|
160,181
|
|
(22.2)
|
|
(22.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Free cash
flow
|
237,748
|
|
(520)
|
|
237,228
|
|
223,067
|
|
6.6
|
|
6.3
|
Net capital
expenditures in connection
with network expansion projects
|
56,050
|
|
(151)
|
|
55,899
|
|
108,076
|
|
(48.1)
|
|
(48.3)
|
Free cash flow,
excluding network
expansion projects
|
293,798
|
|
(671)
|
|
293,127
|
|
331,143
|
|
(11.3)
|
|
(11.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional information
Additional information relating to the Corporation is available
on SEDAR+ at www.sedarplus.ca and on the Corporation's website
at corpo.cogeco.com.
About Cogeco Communications
Inc.
Rooted in the communities it serves, Cogeco Communications Inc.
is a growing competitive force in the North American
telecommunications sector, serving 1.6 million residential and
business customers. Through its business units Cogeco Connexion and
Breezeline, Cogeco Communications provides Internet, video and
phone services in Canada as well
as in thirteen states in the United
States. Cogeco Communications Inc.'s subordinate voting
shares are listed on the Toronto Stock Exchange (TSX: CCA).
For information:
Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514-764-4600
troy.crandall@cogeco.com
Media
Youann Blouin
Director, Media Relations & Strategic Communications
Cogeco Communications Inc.
Tel.: 514-297-2853
youann.blouin@cogeco.com
Conference
Call:
|
Friday, April
12th, 2024 at 11:00
a.m. (Eastern Daylight Time)
|
|
|
|
A live audio of the
analyst conference call will be available on both the Investor
Relations and the Events and Presentations pages on Cogeco
Communications' website. Financial analysts will be able to access
the live conference call and ask questions. Media representatives
may attend as listeners only. A recording of the conference call
will be available on Cogeco Communications' website for a
three-month period.
|
|
|
|
Please use the
following dial-in number to access the conference call 10 minutes
before the start of the conference:
|
|
|
|
Local -
Toronto: 1 289-514-5100
|
|
Toll Free - North
America: 1 800-717-1738
|
|
|
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To join this conference
call, participants are required to provide the operator with the
name of the company hosting the call, that is, Cogeco Inc. or
Cogeco Communications Inc.
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SOURCE Cogeco Communications Inc.