- New operating model focused on customer experience and
operational excellence to power future growth.
- Expanded our customer value proposition with Breezeline
Mobile launched across most of Breezeline's U.S. broadband
footprint.
- Revenue increased by 1.2% compared to the same period last
year to $750.6 million, reflecting
revenue growth at Cogeco Connexion and stable revenue at
Breezeline, in line with expectations.
- Adjusted EBITDA(1) of $365.8 million increased by 4.1% over last
year.
- Profit for the period amounted to $76.3 million, a decrease of 24.8%, of which
$70.4 million was attributable to
owners of the Corporation, reflecting restructuring costs
recognized during the quarter. Excluding the impact of
restructuring and certain other costs, adjusted profit attributable
to owners of the Corporation(1)(3) remained
stable.
- Earnings per share on a diluted basis decreased to
$1.67 from $2.16 in the third quarter of fiscal 2023, while
adjusted diluted earnings per share(1)(3) rose by 4.7%
to $2.45, which excludes the impact
of restructuring and certain other costs.
- Free cash flow(1) amounted to $87.3 million, a decrease of 16.4% compared to
last year reflecting restructuring costs recognized during the
quarter, while cash flow from operating activities increased by
17.3% to $333.6 million due to the
timing of certain working capital items. Free cash flow, excluding
network expansion projects(1) decreased by 18.0% to
$111.7 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, July 11,
2024 /CNW/ - Today, Cogeco Communications Inc. (TSX:
CCA) ("Cogeco Communications" or the "Corporation") announced its
financial results for the third quarter ended May 31,
2024.
"We demonstrated solid performance again in the third quarter of
2024, with revenue growth and healthy expansion of our adjusted
EBITDA margin due to an improving product mix, combined with an
acceleration of our efforts to drive operational efficiency," said
Frédéric Perron, President and CEO. "In the third quarter, we
implemented the initial steps of a new operating model designed to
deliver future growth and increase our focus on customer experience
and operational excellence.
"Growth in our Canadian telecommunications business was driven
by the ongoing expansion of our Internet subscriber base under our
Cogeco Connexion and oxio brands. We continue to be impressed
by oxio's performance and its robust adoption by consumers and are
cascading our learnings from this digital brand across our
organization.
"In the U.S., we rolled out Breezeline Mobile across most of our
footprint, which will provide an even stronger incentive for new
and existing customers to bundle their digital services with us. In
addition, our Internet-first strategy and persistent endeavors to
drive operational efficiency helped deliver adjusted EBITDA growth
over last year.
"Lastly, the new operating model and transformation we began
during the quarter will allow us to sustain our growth, take our
competitive agility to new heights, better serve our customers, and
continue to build a strong culture where our colleagues thrive and
succeed. We expect it to result in significant value creation for
Cogeco over the coming years as the benefits of the transformation
are realized."
Consolidated Financial Highlights
Three months ended
May 31
|
2024
|
|
2023
|
|
Change
|
Change in
constant
currency
|
(1)
|
(In thousands of
Canadian dollars, except % and per share data)
(unaudited)
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
750,583
|
|
741,785
|
|
1.2
|
0.9
|
|
Adjusted EBITDA
(1)
|
365,824
|
|
351,328
|
|
4.1
|
3.9
|
|
Adjusted EBITDA margin
(1)
|
48.7 %
|
|
47.4 %
|
|
|
|
|
Profit for the
period
|
76,334
|
|
101,538
|
|
(24.8)
|
|
|
Profit for the period
attributable to owners of the Corporation
|
70,402
|
|
95,892
|
|
(26.6)
|
|
|
Adjusted profit
attributable to owners of the Corporation
(1)(3)
|
103,597
|
|
103,826
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
333,626
|
|
284,377
|
|
17.3
|
|
|
Free cash flow
(1)
|
87,300
|
|
104,422
|
|
(16.4)
|
(16.3)
|
|
Free cash flow,
excluding network expansion projects (1)
|
111,733
|
|
136,253
|
|
(18.0)
|
(18.0)
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
171,034
|
|
189,656
|
|
(9.8)
|
|
|
Net capital
expenditures (1)(2)
|
168,384
|
|
169,793
|
|
(0.8)
|
(1.2)
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
143,951
|
|
137,962
|
|
4.3
|
3.9
|
|
|
|
|
|
|
|
|
|
Capital intensity
(1)
|
22.4 %
|
|
22.9 %
|
|
|
|
|
Capital intensity,
excluding network expansion projects (1)
|
19.2 %
|
|
18.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
1.67
|
|
2.16
|
|
(22.7)
|
|
|
Adjusted diluted
earnings per share (1)(3)
|
2.45
|
|
2.34
|
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the third quarter of fiscal 2024 ended on May 31,
2024:
- Revenue increased by 1.2% to $750.6
million. On a constant currency basis(1), revenue
increased by 0.9% driven by revenue growth in the Canadian
telecommunications segment, while revenue remained stable in the
American telecommunications segment, as explained below.
- Canadian telecommunications' revenue increased by 2.2%, mostly
driven by the cumulative effect of high-speed Internet service
additions over the past year as well as the Niagara Regional
Broadband Network acquisition ("NRBN") completed on February 5, 2024.
- American telecommunications' revenue remained stable as
reported and in constant currency, mainly resulting from a higher
revenue per subscriber and a better product mix resulting from
customers subscribing to increasingly fast Internet speeds, offset
by lower video subscriptions and a lower Internet subscriber base
over the past year, with an increasing proportion of customers only
subscribing to Internet services.
- Adjusted EBITDA increased by 4.1% to $365.8 million. On a constant currency basis,
adjusted EBITDA increased by 3.9%, mainly due to higher adjusted
EBITDA in both the American and Canadian telecommunications
segments, as explained below, and lower corporate costs primarily
due to the timing of certain operating expenses.
- American telecommunications adjusted EBITDA increased by 4.5%,
or 3.9% in constant currency, mostly due to lower operating
expenses driven by cost reduction initiatives and operating
efficiencies.
- Canadian telecommunications adjusted EBITDA increased by 2.9%,
mainly due to revenue growth, partly offset by higher sales and
other operating expenses to drive subscriber growth.
- Profit for the period amounted to $76.3
million, of which $70.4
million, or $1.67 per diluted
share, was attributable to owners of the Corporation compared to
$101.5 million, $95.9 million, and $2.16 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 restructuring costs and depreciation
and amortization expense, partly offset by higher adjusted EBITDA
and lower income tax expense.
- Adjusted profit attributable to owners of the
Corporation(3) was $103.6
million, or $2.45 per diluted
share(3), compared to $103.8
million, or $2.34 per diluted
share, last year. While adjusted profit attributable to owners of
the Corporation remains stable, the increase of adjusted diluted
earnings per share over last year reflects the benefit of the
Corporation's repurchase and cancellation of shares.
- Net capital expenditures were $168.4
million, a decrease of 0.8% compared to $169.8 million in the same period of the prior
year. In constant currency, net capital expenditures(1)
were $167.8 million, a decrease of
1.2% compared to last year, mainly due to lower spending in the
American telecommunications segment as expected due to the timing
of network expansion projects, partly offset by higher purchases of
customer premise equipment and other capital spending related to
fibre-to-the-home network expansions in the Canadian
telecommunications segment.
- Excluding network expansion projects, net capital expenditures
were $144.0 million, an increase of
4.3% compared to $138.0 million in
the same period of the prior year. In constant currency, net
capital expenditures, excluding network expansion
projects(1) were $143.4
million, an increase of 3.9% compared to last year.
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States, with homes passed additions
close to 44,000(4) during the first nine months of
fiscal 2024.
- Capital intensity was 22.4% compared to 22.9% last year.
Excluding network expansion projects, capital intensity was 19.2%
compared to 18.6% in the same period of the prior year.
- Acquisition of property, plant and equipment decreased by 9.8%
to $171.0 million, mainly resulting
from lower spending.
- Free cash flow decreased by 16.4%, or 16.3% in constant
currency, and amounted to $87.3
million as reported and in constant currency, mainly due to
higher restructuring costs. Free cash flow, excluding network
expansion projects decreased by 18.0% as reported and in constant
currency, and amounted to $111.7
million.
- Cash flows from operating activities increased by 17.3% to
$333.6 million, mostly due to the
timing of payments of trade and other payables and the collection
of trade accounts receivable, lower income taxes paid and higher
adjusted EBITDA.
- Cogeco Communications maintains its fiscal 2024 financial
guidelines as issued on November 1,
2023.
- At its July 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, and related borrowing costs, 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.
|
(4)
|
Organic growth
calculated by excluding additions resulting from
acquisitions.
|
Financial highlights
Three and nine
months ended May 31
|
2024
|
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
2024
|
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
(In thousands of
Canadian dollars, except % and per share data)
|
$
|
$
|
%
|
%
|
|
$
|
$
|
%
|
%
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
750,583
|
741,785
|
1.2
|
0.9
|
|
2,228,773
|
2,240,731
|
(0.5)
|
(0.8)
|
|
Adjusted EBITDA
(2)
|
365,824
|
351,328
|
4.1
|
3.9
|
|
1,071,896
|
1,069,766
|
0.2
|
—
|
|
Adjusted EBITDA margin
(2)
|
48.7 %
|
47.4 %
|
|
|
|
48.1 %
|
47.7 %
|
|
|
|
Acquisition,
integration, restructuring and other
costs (3)
|
45,669
|
11,368
|
—
|
|
|
49,170
|
20,997
|
—
|
|
|
Profit for the
period
|
76,334
|
101,538
|
(24.8)
|
|
|
268,648
|
326,175
|
(17.6)
|
|
|
Profit for the period
attributable to owners of the Corporation
|
70,402
|
95,892
|
(26.6)
|
|
|
253,576
|
305,774
|
(17.1)
|
|
|
Adjusted profit
attributable to owners of the Corporation
(2)(4)
|
103,597
|
103,826
|
(0.2)
|
|
|
301,377
|
320,785
|
(6.1)
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
333,626
|
284,377
|
17.3
|
|
|
856,042
|
681,579
|
25.6
|
|
|
Free cash flow
(2)
|
87,300
|
104,422
|
(16.4)
|
(16.3)
|
|
325,048
|
327,489
|
(0.7)
|
(0.9)
|
|
Free cash flow,
excluding network expansion projects (2)
|
111,733
|
136,253
|
(18.0)
|
(18.0)
|
|
405,531
|
467,396
|
(13.2)
|
(13.4)
|
|
Acquisition of
property, plant and equipment
|
171,034
|
189,656
|
(9.8)
|
|
|
504,830
|
597,260
|
(15.5)
|
|
|
Net capital
expenditures (2)(5)
|
168,384
|
169,793
|
(0.8)
|
(1.2)
|
|
485,580
|
522,889
|
(7.1)
|
(7.3)
|
|
Net capital
expenditures, excluding network expansion projects
(2)
|
143,951
|
137,962
|
4.3
|
3.9
|
|
405,097
|
382,982
|
5.8
|
5.5
|
|
Capital intensity
(2)
|
22.4 %
|
22.9 %
|
|
|
|
21.8 %
|
23.3 %
|
|
|
|
Capital intensity,
excluding network expansion projects (2)
|
19.2 %
|
18.6 %
|
|
|
|
18.2 %
|
17.1 %
|
|
|
|
Per share data
(6)
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.68
|
2.17
|
(22.6)
|
|
|
5.91
|
6.83
|
(13.5)
|
|
|
Diluted
|
1.67
|
2.16
|
(22.7)
|
|
|
5.89
|
6.80
|
(13.4)
|
|
|
Adjusted diluted
(2)(4)
|
2.45
|
2.34
|
4.7
|
|
|
7.00
|
7.13
|
(1.8)
|
|
|
Dividends per
share
|
0.854
|
0.776
|
10.1
|
|
|
2.562
|
2.328
|
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 nine-month periods ended May
31, 2023, the average foreign exchange rates used for translation
were 1.3562 USD/CDN and 1.3513 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
nine-month periods ended May 31, 2024, acquisition, integration,
restructuring and other costs were mostly related to restructuring
costs recognized during the third quarter of fiscal 2024. For the
three and nine-month periods ended May 31, 2023, acquisition,
integration, restructuring and other costs resulted mostly from
costs related to the integration of past acquisitions and from a
$3.3 million retroactive adjustment recognized during the third
quarter, in addition to a $5.1 million adjustment recognized during
the second quarter following the Copyright Board preliminary
conclusions on the redetermination of the 2014-2018 royalty rates,
of which $4.2 million was reversed during the second quarter of
fiscal 2024 following the Copyright Board decision issued in
January 2024.
|
(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, and related borrowing costs, 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
|
May 31,
2024
|
August 31,
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Financial
condition
|
|
|
Cash and cash
equivalents
|
54,271
|
362,921
|
Total assets
|
9,778,333
|
9,768,370
|
Long-term
debt
|
|
|
Current
|
72,108
|
41,765
|
Non-current
|
4,874,315
|
4,979,241
|
Net indebtedness
(1)
|
4,967,156
|
4,749,214
|
Equity attributable to
owners of the Corporation
|
2,976,075
|
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 nine-month
periods ended May 31, 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 third-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
third-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
nine-month periods ended May 31, 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 nine-month periods ended May 31, 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 nine-month periods ended May 31, 2024 are
translated at the average foreign exchange rate of the comparable
periods of the prior year, which were 1.3562
USD/CDN and 1.3513 USD/CDN,
respectively.
Constant currency basis and foreign exchange impact
reconciliation
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
750,583
|
|
(1,802)
|
|
748,781
|
|
741,785
|
|
1.2
|
|
0.9
|
|
Operating
expenses
|
379,521
|
|
(934)
|
|
378,587
|
|
386,373
|
|
(1.8)
|
|
(2.0)
|
|
Management fees –
Cogeco Inc.
|
5,238
|
|
—
|
|
5,238
|
|
4,084
|
|
28.3
|
|
28.3
|
|
Adjusted
EBITDA
|
365,824
|
|
(868)
|
|
364,956
|
|
351,328
|
|
4.1
|
|
3.9
|
|
Free cash
flow
|
87,300
|
|
50
|
|
87,350
|
|
104,422
|
|
(16.4)
|
|
(16.3)
|
|
Net capital
expenditures
|
168,384
|
|
(622)
|
|
167,762
|
|
169,793
|
|
(0.8)
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
2,228,773
|
|
(5,293)
|
|
2,223,480
|
|
2,240,731
|
|
(0.5)
|
|
(0.8)
|
|
Operating
expenses
|
1,141,163
|
|
(2,887)
|
|
1,138,276
|
|
1,156,081
|
|
(1.3)
|
|
(1.5)
|
|
Management fees –
Cogeco Inc.
|
15,714
|
|
—
|
|
15,714
|
|
14,884
|
|
5.6
|
|
5.6
|
|
Adjusted
EBITDA
|
1,071,896
|
|
(2,406)
|
|
1,069,490
|
|
1,069,766
|
|
0.2
|
|
—
|
|
Free cash
flow
|
325,048
|
|
(470)
|
|
324,578
|
|
327,489
|
|
(0.7)
|
|
(0.9)
|
|
Net capital
expenditures
|
485,580
|
|
(1,086)
|
|
484,494
|
|
522,889
|
|
(7.1)
|
|
(7.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
381,877
|
|
—
|
|
381,877
|
|
373,743
|
|
2.2
|
|
2.2
|
|
Operating
expenses
|
180,204
|
|
(31)
|
|
180,173
|
|
177,794
|
|
1.4
|
|
1.3
|
|
Adjusted
EBITDA
|
201,673
|
|
31
|
|
201,704
|
|
195,949
|
|
2.9
|
|
2.9
|
|
Net capital
expenditures
|
91,093
|
|
(258)
|
|
90,835
|
|
84,415
|
|
7.9
|
|
7.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
1,131,804
|
|
—
|
|
1,131,804
|
|
1,114,161
|
|
1.6
|
|
1.6
|
|
Operating
expenses
|
535,018
|
|
(159)
|
|
534,859
|
|
521,534
|
|
2.6
|
|
2.6
|
|
Adjusted
EBITDA
|
596,786
|
|
159
|
|
596,945
|
|
592,627
|
|
0.7
|
|
0.7
|
|
Net capital
expenditures
|
285,274
|
|
(218)
|
|
285,056
|
|
281,036
|
|
1.5
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
368,706
|
|
(1,802)
|
|
366,904
|
|
368,042
|
|
0.2
|
|
(0.3)
|
|
Operating
expenses
|
190,327
|
|
(887)
|
|
189,440
|
|
197,273
|
|
(3.5)
|
|
(4.0)
|
|
Adjusted
EBITDA
|
178,379
|
|
(915)
|
|
177,464
|
|
170,769
|
|
4.5
|
|
3.9
|
|
Net capital
expenditures
|
72,782
|
|
(349)
|
|
72,433
|
|
82,923
|
|
(12.2)
|
|
(12.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
1,096,969
|
|
(5,293)
|
|
1,091,676
|
|
1,126,570
|
|
(2.6)
|
|
(3.1)
|
|
Operating
expenses
|
574,070
|
|
(2,716)
|
|
571,354
|
|
607,237
|
|
(5.5)
|
|
(5.9)
|
|
Adjusted
EBITDA
|
522,899
|
|
(2,577)
|
|
520,322
|
|
519,333
|
|
0.7
|
|
0.2
|
|
Net capital
expenditures
|
191,490
|
|
(854)
|
|
190,636
|
|
236,422
|
|
(19.0)
|
|
(19.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the
Corporation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Profit for the
period attributable to owners of the Corporation
|
70,402
|
95,892
|
253,576
|
305,774
|
Acquisition,
integration, restructuring and other costs
|
45,669
|
11,368
|
49,170
|
20,997
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
Tax impact for the
above items
|
(12,081)
|
(2,989)
|
(17,461)
|
(5,541)
|
Non-controlling
interest impact for the above items
|
(393)
|
(445)
|
(788)
|
(445)
|
Adjusted profit
attributable to owners of the Corporation
|
103,597
|
103,826
|
301,377
|
320,785
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
Free cash flow reconciliation
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Cash flows from
operating activities
|
333,626
|
284,377
|
856,042
|
681,579
|
Changes in other
non-cash operating activities
|
(76,679)
|
(26,238)
|
(21,491)
|
107,797
|
Income taxes paid
(received)
|
3,918
|
20,170
|
(807)
|
89,648
|
Current income
taxes
|
(3,177)
|
(5,944)
|
(19,594)
|
(26,359)
|
Interest
paid
|
62,509
|
63,335
|
194,769
|
174,159
|
Financial
expense
|
(64,308)
|
(63,385)
|
(215,765)
|
(181,420)
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
2,272
|
3,334
|
6,953
|
9,406
|
Net capital
expenditures (2)
|
(168,384)
|
(169,793)
|
(485,580)
|
(522,889)
|
Repayment of lease
liabilities
|
(2,477)
|
(1,434)
|
(6,359)
|
(4,432)
|
Free cash
flow
|
87,300
|
104,422
|
325,048
|
327,489
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases, and related borrowing costs, 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 May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Acquisition of
property, plant and equipment
|
171,034
|
189,656
|
504,830
|
597,260
|
Subsidies received in
advance recognized as a reduction of the cost of property, plant
and equipment during the period
|
(2,650)
|
(19,863)
|
(19,250)
|
(74,371)
|
Net capital
expenditures
|
168,384
|
169,793
|
485,580
|
522,889
|
|
|
|
|
|
Adjusted EBITDA reconciliation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Profit for the
period
|
76,334
|
101,538
|
268,648
|
326,175
|
Income taxes
|
11,199
|
19,996
|
47,117
|
76,642
|
Financial
expense
|
64,308
|
63,385
|
215,765
|
181,420
|
Depreciation and
amortization
|
168,314
|
155,041
|
491,196
|
464,532
|
Acquisition,
integration, restructuring and other costs
|
45,669
|
11,368
|
49,170
|
20,997
|
Adjusted
EBITDA
|
365,824
|
351,328
|
1,071,896
|
1,069,766
|
|
|
|
|
|
Net capital expenditures and free cash flow excluding network
expansion projects reconciliations
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Net capital
expenditures
|
168,384
|
|
(622)
|
|
167,762
|
|
169,793
|
|
(0.8)
|
|
(1.2)
|
Net capital
expenditures in connection with network expansion
projects
|
24,433
|
|
(53)
|
|
24,380
|
|
31,831
|
|
(23.2)
|
|
(23.4)
|
Net capital
expenditures, excluding network expansion projects
|
143,951
|
|
(569)
|
|
143,382
|
|
137,962
|
|
4.3
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Net capital
expenditures
|
485,580
|
|
(1,086)
|
|
484,494
|
|
522,889
|
|
(7.1)
|
|
(7.3)
|
Net capital
expenditures in connection with network expansion
projects
|
80,483
|
|
(204)
|
|
80,279
|
|
139,907
|
|
(42.5)
|
|
(42.6)
|
Net capital
expenditures, excluding network expansion projects
|
405,097
|
|
(882)
|
|
404,215
|
|
382,982
|
|
5.8
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Free cash
flow
|
87,300
|
|
50
|
|
87,350
|
|
104,422
|
|
(16.4)
|
|
(16.3)
|
Net capital
expenditures in connection with network expansion
projects
|
24,433
|
|
(53)
|
|
24,380
|
|
31,831
|
|
(23.2)
|
|
(23.4)
|
Free cash flow,
excluding network expansion projects
|
111,733
|
|
(3)
|
|
111,730
|
|
136,253
|
|
(18.0)
|
|
(18.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
|
Change
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
|
In
constant
currency
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Free cash
flow
|
325,048
|
|
(470)
|
|
324,578
|
|
327,489
|
|
(0.7)
|
|
(0.9)
|
Net capital
expenditures in connection with network expansion
projects
|
80,483
|
|
(204)
|
|
80,279
|
|
139,907
|
|
(42.5)
|
|
(42.6)
|
Free cash flow,
excluding network expansion projects
|
405,531
|
|
(674)
|
|
404,857
|
|
467,396
|
|
(13.2)
|
|
(13.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
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 subscribers. Cogeco Communications provides Internet,
video and wireline phone services in Canada, and in thirteen states in the United States under the Cogeco Connexion,
oxio and Breezeline brand names. Breezeline also offers wireless
services in most of the U.S. states in which it operates. 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, July 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:
|
|
|
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Local -
Toronto: 1 289 514-5100
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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.