Today, COGECO Inc. (TSX:CGO) ("COGECO" or the "Corporation") announced its
financial results for the first quarter of fiscal 2014, ended November 30, 2013,
in accordance with International Financial Reporting Standards ("IFRS").
For the first quarter of fiscal 2014:
-- Revenue increased by 41.0% to reach $517.0 million compared to the same
period of the prior year;
-- Operating income before depreciation and amortization(1)increased by
42.8% compared to the first quarter of fiscal 2013, reaching $224.0
million. The rapid progression for the period is mainly attributable to
the acquisitions of Atlantic Broadband and Peer 1 Network Enterprises,
Inc. ("PEER 1") ("the recent acquisitions"), which occurred at the end
of the first quarter and during the second quarter of fiscal 2013,
respectively, as well as the improvement from all our operating units;
-- In the first quarter, profit for the period amounted to $56.8 million of
which $23.1 million, or $1.38 per share is attributable to owners of the
Corporation. In fiscal 2013, profit for the period amounted to $47.1
million of which $18.5 million, or $1.11 per share was attributable to
owners of the Corporation. Profit progression for the quarter is mostly
attributable to the improvement in operating income before depreciation
and amortization stemming from the Cable segment organic growth and the
recent acquisitions, partly offset by additional depreciation and
amortization and financial expense related to these acquisitions;
-- Free cash flow(1)reached $72.6 million for the quarter compared to $18.3
million in the comparable quarter of the prior year. The increase for
the period is attributable to the improvement of operating income before
depreciation and amortization explained above as well as the decrease in
integration, restructuring and acquisition costs, partly offset by the
increase in financial expense as a result of higher indebtedness;
-- A quarterly dividend of $0.22 per share was paid to the holders of
subordinate and multiple voting shares, an increase of $0.03 per share,
or 15.8%, compared to a dividend of $0.19 per share paid in the first
quarter of fiscal 2013;
-- On November 22, 2013, Cogeco Cable amended and restated its $800 million
Term Revolving Facility with a syndicate of lenders. This Term Revolving
Facility also replaced Cogeco Cable's Secured Credit Facilities coming
to maturity on January 27, 2017 which was fully repaid on November 22,
2013. The Term Revolving Facility was extended and will mature on
January 22, 2019 and can be extended annually; and
-- On December 20, 2013, the Corporation amended its Term Revolving
Facility. Under the terms of the amendment, the maturity was extended by
an additional year until February 1, 2018. In addition, the amendment
reduced the margin for the calculation of the interest rate and reduced
restrictions on some covenants including financial ratios.
(1) The indicated terms do not have standard definitions prescribed by IFRS
and therefore, may not be comparable to similar measures presented by
other companies. For more details, please consult the "Non-IFRS
financial measures" section of the Management's discussion and analysis.
"I am happy to report that COGECO achieved solid financial results for its first
quarter of 2014," declared Louis Audet, President and Chief Executive Officer of
COGECO Inc."
"Improved free cash flow, stemming from improved profitability and sound cost
management puts our cable segment well on its way to reducing its leverage. Our
media activities, both on the radio and transit display advertising, continue to
improve," added Louis Audet.
"Our overall performance instills confidence in our ability to continue to
deliver solid results," concluded Louis Audet.
ABOUT COGECO
COGECO is a diversified holding corporation. Through its Cogeco Cable
subsidiary, COGECO provides to its residential and business customers Analogue
and Digital Television, High Speed Internet and Telephony services. Cogeco Cable
operates in Canada through its subsidiary Cogeco Cable Canada in Quebec and
Ontario, and in the United States through its subsidiary Atlantic Broadband in
Western Pennsylvania, South Florida, Maryland/Delaware and South Carolina.
Through its subsidiary Cogeco Enterprise Services, the holding company of Cogeco
Data Services and Peer 1 Network Enterprises, Cogeco Cable provides to its
commercial customers, a suite of IT hosting, information and communications
technology services (data centre, colocation, managed hosting, cloud
infrastructure and connectivity), with 20 data centres, extensive fibre networks
in Montreal and Toronto as well as points-of-presence in North America and
Europe. Through its subsidiary Cogeco Diffusion, COGECO owns and operates 13
radio stations across most of Quebec with complementary radio formats serving a
wide range of audiences as well as Cogeco News, its news agency. Through its
subsidiary Metromedia, COGECO operates an advertising representation house
specialized in the public transit sector that holds exclusive advertising rights
in the Province of Quebec where it also represents its business partners active
across other Canadian markets. COGECO's subordinate voting shares are listed on
the Toronto Stock Exchange (TSX:CGO). The subordinate voting shares of Cogeco
Cable are also listed on the Toronto Stock Exchange (TSX:CCA). For more
information about COGECO and its subsidiaries visit www.cogeco.ca,
cogecodiffusion.com and cogecometromedia.com.
Analyst Conference Call: Tuesday, January 14, 2014 at 9:30 a.m. (Eastern
Standard Time) Media representatives may attend as
listeners only.
Please use the following dial-in number to have
access to the conference call by dialing five
minutes before the start of the conference:
Canada/United States Access Number: 1 866-321-6651
International Access Number: + 1 416-642-5212
Confirmation Code: 8812199
By Internet at www.cogeco.ca/investors
A rebroadcast of the conference call will be
available until April 25, 2014, by dialing:
Canada and United States access number: 1 888-203-
1112
International access number: + 1 647-436-0148
Confirmation code: 8812199
FINANCIAL HIGHLIGHTS
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Quarters ended November 30,
(in thousands of dollars, except percentages
and per share data) 2013 2012(2) Change
$ $ %
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Operations
Revenue 516,971 366,608 41.0
Operating income before depreciation and
amortization(1) 224,040 156,884 42.8
Operating income 106,698 83,581 27.7
Profit for the period 56,839 47,106 20.7
Profit for the period attributable to owners
of the Corporation 23,055 18,530 24.4
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Cash Flow
Cash flow from operating activities 60,235 (6,005) -
Cash flow from operations(1) 159,222 101,501 56.9
Acquisitions of property, plant and
equipment, intangible and other assets 86,580 83,155 4.1
Free cash flow(1) 72,642 18,346 -
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Financial Condition(3)
Property, plant and equipment 1,863,364 1,874,866 (0.6)
Total assets 5,451,881 5,452,513 -
Indebtedness(4) 3,102,202 3,054,275 1.6
Equity attributable to owners of the
Corporation 477,136 457,273 4.3
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Per Share Data(5)
Earnings per share attributable to owners of
the Corporation
Basic 1.38 1.11 24.3
Diluted 1.37 1.10 24.5
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(1) The 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 details, please consult the "Non-IFRS financial measures" section
of the Management's discussion and analysis ("MD&A").
(2) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
(3) At November 30, 2013 and August 31, 2013.
(4) Indebtedness is defined as the total of bank indebtedness, principal on
long-term debt, balance due on a business combination and obligations
under derivative financial instruments.
(5) Per multiple and subordinate voting share.
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MANAGEMENT'S DISCUSSION AND ANALYSIS ("MD&A")
Three-month period ended November 30, 2013
FORWARD-LOOKING STATEMENTS
Certain statements in this Management's Discussion and Analysis ("MD&A") may
constitute forward-looking information within the meaning of securities laws.
Forward-looking information may relate to COGECO's 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. In
particular, statements regarding the Corporation's future operating results and
economic performance and its objectives and strategies are forward-looking
statements. These statements are based on certain factors and assumptions
including expected growth, results of operations, performance and business
prospects and opportunities, which COGECO believes are reasonable as of the
current date. While management considers these assumptions to be reasonable
based on information currently available to the Corporation, they may prove to
be incorrect.
The Corporation cautions the reader that the economic downturn experienced over
the past few years makes forward- looking information and the underlying
assumptions subject to greater uncertainty and that, consequently, they may not
materialize, or the results may significantly differ from the Corporation's
expectations. It is impossible for COGECO to predict with certainty the impact
that the current economic uncertainties may have on future results.
Forward-looking information is also subject to certain factors, including risks
and uncertainties(described in the "Uncertainties and main risk factors" section
of section of the Corporation's 2013 annual MD&A) that could cause actual
results to differ materially from what COGECO currently expects. These factors
include namely risks pertaining to markets and competition, technology,
regulatory developments, operating costs, information systems, disasters or
other contingencies, financial risks related to capital requirements, human
resources, controlling shareholder and holding structure, many of which are
beyond the Corporation's control. Therefore, future events and results may vary
significantly from what management currently foresees. The reader should not
place undue importance on forward-looking information and should not rely upon
this information as of any other date. While management may elect to, the
Corporation is under no obligation and does not undertake to update or alter
this information at any particular time, except as may be required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This
report should be read in conjunction with the Corporation's condensed interim
consolidated financial statements and the notes thereto for the three-month
period ended November 30, 2013, prepared in accordance with the International
Financial Reporting Standards ("IFRS") and the MD&A included in the
Corporation's 2013 Annual Report.
CORPORATE OBJECTIVES AND STRATEGIES
COGECO's objectives are to provide outstanding service to its customers and
maximize shareholder value by increasing profitability and ensuring continued
revenue growth. The strategies employed to reach these objectives, supported by
tight controls over costs and business processes, are specific to each segment.
The main strategies used to reach COGECO's objectives in the Cable segment focus
on expanding its service offering, enhancing its existing services and bundles,
improving customer experience and business processes as well as keeping a sound
capital management and a strict control over spending. The radio activities
focus on continuous improvement of its programming in order to increase its
market share and thereby its profitability. The Corporation measures its
performance, with regard to these objectives by monitoring operating income
before depreciation and amortization(1) and free cash flow(1).
(1) The 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 details, please consult the
"Non-IFRS financial measures" section.
KEY PERFORMANCE INDICATORS
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
First-quarter operating income before depreciation and amortization increased by
42.8% compared to the same period of fiscal 2013 to reach $224.0 million. The
improvement in operating income before depreciation and amortization is mainly
from the Cable segment and attributable to the acquisition of Atlantic Broadband
and Peer 1 Network Enterprises, Inc. ("PEER 1") (the "recent acquisitions")
which occurred at the end of the first quarter and in the second quarter of
fiscal 2013, respectively, as well as to the financial results improvement from
organic growth.
FREE CASH FLOW
For the three-month period ended November 30, 2013, COGECO reports free cash
flow of $72.6 million, compared to $18.3 million for the first three months of
the previous fiscal year, representing an increase of $54.3 million. This
increase is mostly attributable to the improvement of operating income before
depreciation and amortization explained above as well as the decrease in
integration, restructuring and acquisition costs, partly offset by the increase
in financial expense as a result of higher indebtedness.
BUSINESS DEVELOPMENTS AND OTHER
BBM Canada's fall 2013 survey in the Montreal region, conducted with the
Portable People Meter ("PPM"), reported that 98.5 FM is the leading radio
station in the Montreal French market amongst all listeners and men two years
old and over ("2+"), while Rythme FM has maintained its leadership position in
the female 2+ segment among the musical stations. Regarding the Montreal English
market, The Beat is the leading radio station in the female 35-64 segment. In
the other Quebec regions, our radio stations registered good ratings.
On December 20, 2013, the Corporation amended its Term Revolving Facility. Under
the terms of the amendment, the maturity was extended by an additional year
until February 1, 2018. In addition, the amendment reduced the margin for the
calculation of the interest rate and reduced restrictions on some covenants
including financial ratios.
OPERATING AND FINANCIAL RESULTS
OPERATING RESULTS
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Quarters ended November 30, 2013 2012(1) Change
(in thousands of dollars, except percentages) $ $ %
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Revenue 516,971 366,608 41.0
Operating expenses 292,931 209,724 39.7
------------------------------------------------------------------
Operating income before depreciation and
amortization 224,040 156,884 42.8
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(1) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
REVENUE
Fiscal 2014 first-quarter revenue increased by $150.4 million, or 41.0%, to
reach $517.0 million, compared to the same period last year, mainly due to the
Cable segment as explained below as well as the organic growth generated by all
of our business units.
In the Cable segment, fiscal 2014 first-quarter revenue increased by $147.1
million, or 44.9%, to reach $475.0 million compared to the same period last
year. Revenue increase is mainly attributable to the operating results of the
recent acquisitions. For further details on the Cable segment's revenue, please
refer to the "Cable segment" section.
OPERATING EXPENSES
For the first quarter of fiscal 2014, operating expenses increased by $83.2
million, to reach $292.9 million, an increase of 39.7% compared to the prior
year, mainly attributable to the Cable segment.
Operating expense in the Cable segment increased by $79.8 million, to reach
$253.9 million, an increase of 45.8% compared to the prior year. These
additional operating expenses are mostly attributable to the recent
acquisitions, partly offset by cost reduction initiatives and the restructuring
activities occurred in the fourth quarter of fiscal 2013 in Canada.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
Fiscal 2014 first-quarter operating income before depreciation and amortization
increased by $67.2 million, or 42.8%, to reach $224.0 million, of which the
Cable segment contributed $211.5 million to the consolidated operating income
before depreciation and amortization. For further details on Cogeco Cable's
operating results, please refer to the "Cable segment" section.
FIXED CHARGES
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Quarters ended November 30 2013 2012(1) Change
(in thousands of dollars, except percentages) $ $ %
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Depreciation and amortization 117,094 66,041 77.3
Financial expense 34,022 17,303 96.6
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(1) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
For the first quarter of fiscal 2014, depreciation and amortization expense
increased by $51.1 million, to reach $117.1 million, an increase of 77.3%
compared to prior year. The increase is attributable to the Cable segment and
resulted from the recent acquisitions, which occurred at the end of the first
quarter and in the second quarter of fiscal 2013 and consequently, no
depreciation and amortization expense related to these acquisitions are included
in the fiscal 2013 first-quarter.
Fiscal 2014 first-quarter financial expense increased by $16.7 million, or
96.6%, at $34.0 million compared to $17.3 million as a result of the recent
acquisitions financing costs.
INCOME TAXES
Fiscal 2014 first-quarter income tax expense amounted to $15.8 million, compared
to $19.2 million in the prior year. The decrease is mostly attributable to the
increase in fixed charges as well as the favorable impact of the tax structure
from the recent acquisitions in the Cable segment, partly offset by the
improvement in operating income before depreciation and amortization.
PROFIT FOR THE PERIOD
For the three-month period ended November 30, 2013, profit for the period
amounted to $56.8 million of which $23.1 million, or $1.38 per share, is
attributable to owners of the Corporation. For the comparable period of fiscal
2013, profit for the period amounted to $47.1 million of which $18.5 million, or
$1.11 per share, was attributable to owners of the Corporation. Profit
progression for the quarter is mostly attributable to the Cable segment and due
to an increase in operating income before depreciation and amortization
generated by the recent acquisitions, partly offset by the fixed charges
explained above.
The non-controlling interest represents a participation of approximately 67.9%
in Cogeco Cable's results. For fiscal 2014 first-quarter, the profit for the
period attributable to non-controlling interest amounted to $33.8 million
compared to $28.6 million in fiscal 2013.
CASH FLOW ANALYSIS
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Quarters ended November 30, 2013 2012(1)
(in thousands of dollars) $ $
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Operating activities
Cash flow from operations 159,222 101,501
Changes in non-cash operating activities (95,965) (87,508)
Amortization of deferred transaction costs and
discounts on long-term debt (1,878) (856)
Income taxes paid (19,164) (44,248)
Current income tax expense 28,166 26,112
Financial expense paid (44,168) (18,309)
Financial expense 34,022 17,303
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60,235 (6,005)
Investing activities (86,151) (1,437,212)
Financing activities 8,455 1,236,972
Effect of exchange rate changes on cash and cash
equivalents denominated in foreign currencies 199 -
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Net change in cash and cash equivalents (17,262) (206,245)
Cash and cash equivalents, beginning of period 43,793 215,523
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Cash and cash equivalents, end of period 26,531 9,278
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(1) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
OPERATING ACTIVITIES
Fiscal 2014 first-quarter cash flow from operations reached $159.2 million
compared to $101.5 million for the same period last year, an increase of $57.7
million. This increase resulted from the improvement in operating income before
depreciation and amortization as well as the decrease in integration,
restructuring and acquisition costs, partly offset by the increase in financial
expense as a result of higher indebtedness level from the recent acquisitions.
INVESTING ACTIVITIES
BUSINESS COMBINATION IN FISCAL 2013
On November 30, 2012, Cogeco Cable completed the acquisition of all the
outstanding shares of Atlantic Broadband, an independent cable system operator
formed in 2003, providing Analogue and Digital Television, as well as HSI and
Telephony services to residential and small and medium business customers.
During the first quarter of fiscal 2014, Cogeco Cable finalized the purchase
price allocation of Atlantic Broadband which remains unchanged since the last
adjustments made in the fourth quarter of fiscal 2013. Therefore, the final
purchase price allocation is as follows:
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Final
(in thousands of dollars) $
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Consideration
Paid
Purchase of shares 337,779
Working capital adjustments 5,415
Repayment of secured debt 1,021,854
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1,365,048
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Net assets acquired
Cash and cash equivalents 5,480
Trade and other receivables 12,012
Prepaid expenses and other 1,370
Income tax receivable 3,907
Property, plant and equipment 302,211
Intangible assets 711,418
Goodwill 522,215
Deferred tax assets 98,592
Trade and other payables assumed (27,620)
Provisions (721)
Deferred and prepaid revenue and other liabilities assumed (7,697)
Deferred tax liabilities (256,119)
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1,365,048
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ACQUISITIONS OF PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE AND OTHER ASSETS
Fiscal 2014 first-quarter acquisitions of property, plant and equipment amounted
to $82.5 million, an increase of 5.0% compared to $78.5 million in the first
quarter of the prior year, mainly as a result of the following factors in the
Cable segment:
-- An increase due to the recent acquisition of PEER 1 and by the expansion
of data centre facilities in Toronto, Canada and in Portsmouth, England
as well as the fiber expansion in the Toronto area in order to fulfill
orders from new customer demand;
-- An increase in customer premise equipment mainly due to the continuing
migration of analogue packages to digital technology in the
American cable services segment;
-- A decrease in scalable infrastructure due to the deployment in fiscal
2012 and early fiscal 2013 of advanced technologies such as
DOCSIS 3.0 and Switched Digital Video in existing areas served; and
-- Some capital expenditures decreases due to the timing of certain
initiatives;
For the three-month period ended November 30, 2013, the acquisition of
intangible and other assets amounted to $4.1 million compared to $4.6 million
for the same period last year.
FREE CASH FLOW AND FINANCING ACTIVITIES
In the first quarter, free cash flow amounted to $72.6 million, $54.3 million
higher than in the comparable period of fiscal 2013. Free cash flow increase
stemmed mostly from the Cable segment and due to the improvement in operating
income before depreciation and amortization and a decrease in integration,
restructuring and acquisition costs, partly offset by an increase in the
financial expense as a result of higher indebtedness level from the recent
acquisitions.
In the first quarter of fiscal 2014, higher Indebtedness level provided for a
cash increase of $28.7 million, essentially due to the increase of the Term
Revolving Facility of $29.4 million.
In the first quarter of fiscal 2013, higher Indebtedness level provided for a
cash increase of $1.253 billion, mainly due to the draw-down of the Term
Revolving Facility of $584.2 million (US$588 million) and the new Term Loan
Facilities of $637.4 million (US$660 million for net proceeds of US$641.5
million, net of transaction costs of US$18.5 million) to finance the acquisition
of Atlantic Broadband in the Cable segment.
During the first quarter of fiscal 2014, a quarterly dividend of $0.22 per share
was paid to the holders of subordinate and multiple voting shares, totaling $3.7
million, compared to a quarterly dividend of $0.19 per share, or $3.2 million
the year before. In addition, dividends paid by a subsidiary to non-controlling
interests in the first quarter of 2014 amounted to $9.9 million compared to $8.6
million in the first quarter of the prior year. The consolidated dividend
payments amounted to $13.6 million in the first quarter of fiscal 2014 compared
to $11.8 million for the prior year.
At November 30, 2013, the Corporation had a working capital deficiency of $144.1
million compared to $223.8 million at August 31, 2013. The decrease of $79.7
million in the deficiency is mainly due to the decrease of $99.2 million in
trade and other payables, partly offset by an increase of $9.0 million in income
tax liabilities. As part of the usual conduct of its business, COGECO maintains
a working capital deficiency due to a low level of accounts receivable as a
large portion of Cogeco Cable's customers pay before their services are
rendered, unlike trade and other payables, which are paid after products are
delivered or services are rendered, thus enabling the Corporation to use cash
and cash equivalents to reduce Indebtedness.
At November 30, 2013, the Corporation had used $71.2 million of its $100 million
Term Revolving Facility for a remaining availability of $28.8 million and Cogeco
Cable had used $608.6 million of its $800 million amended and restated Term
Revolving Facility for a remaining availability of $191.4 million. In addition,
two subsidiaries of Cogeco Cable also benefit from a Revolving Facility of
$106.2 million (US$100 million) related to the acquisition of Atlantic
Broadband, of which $21.8 million (US$20.6 million) was used at November 30,
2013 for a remaining availability of $84.4 million (US$79.4 million).
FINANCIAL POSITION
Since August 31, 2013, the following balances have changed significantly: "cash
and cash equivalents", "property, plant and equipment", "goodwill", "trade and
other payables", "income tax liabilities" and "long-term debt".
The decrease of $17.3 million in cash and cash equivalents and the increase of
$46.9 million in long-term debt are due to the factors previously discussed in
the "Cash flow analysis" section and to the appreciation of US dollar and
British Pound currency compared to Canadian dollar. The $11.5 million decrease
in property, plant and equipment reflects the excess of depreciation expense
over the acquisitions discussed in the "Cash flow analysis" section, partly
offset by the impact of the appreciation of the US dollar and British Pound
currency compared to Canadian dollar. Goodwill increased by $11.1 million due to
the appreciation of the US dollar and the British Pound against the Canadian
dollar in the first quarter of fiscal 2014. The $99.2 million decrease in trade
and other payables is related to the timing of payments made to suppliers and
the increase in income tax liabilities of $9.0 million due to the excess of
current income tax expense over income tax paid.
OUTSTANDING SHARE DATA
A description of COGECO's share data at December 31, 2013 is presented in the
table below. Additional details are provided in Note 11 of the condensed interim
consolidated financial statements.
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Amount
Number of (in thousands
shares of dollars)
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Common shares
Multiple voting shares 1,842,860 12
Subordinate voting shares 14,989,338 121,976
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FINANCING
In the normal course of business, COGECO has incurred financial obligations,
primarily in the form of long-term debt, operating and finance leases and
guarantees. COGECO's obligations, as discussed in the 2013 Annual Report, have
not materially changed since August 31, 2013, except as mentioned below.
On November 22, 2013, the Corporation's subsidiary, Cogeco Cable, amended and
restated its Term Revolving Facility of $800 million with a syndicate of
lenders. The maturity was extended and will mature on January 22, 2019 and the
maturity can be extended annually. The amendments reduced the margin for the
calculation of the interest rate and reduced restrictions on some covenants. The
amended and restated Term Revolving Facility also replaced Cogeco Cable's
Secured Credit Facilities coming to maturity on January 27, 2017 which was fully
repaid on November 22, 2013. This amended and restated Term Revolving Facility
is comprised of two tranches: a first tranche, a Canadian tranche, amounting to
$788 million and the second tranche, a UK tranche, amounting to $12 million. The
Canadian tranche is available in Canadian dollars, US dollars, Euros and British
Pound and interest rates are based on banker's acceptance, US dollar base rate
loans, LIBOR loans in US dollars, Euros or British Pound, plus the applicable
margin. The UK tranche is available in British Pounds and interest rates are
based on British Pounds base rate loans and British Pounds LIBOR loans. The Term
Revolving Facility is indirectly secured by first priority fixed and floating
charges and a security interest on substantially all present and future real and
personal properties and undertaking of every nature and kind of Cogeco Cable and
certain of its subsidiaries, and provides for certain permitted encumbrances,
including purchased money obligations, existing funded obligations and charges
granted by any subsidiary prior to the date when it becomes a subsidiary,
subject to a maximum amount. The provisions under this facility provide for
restrictions on the operations and activities of Cogeco Cable. Generally, the
most significant restrictions relate to permitted investments and dividends on
multiple and subordinate voting shares, as well as incurrence and maintenance of
certain financial ratios primarily linked to operating income before
amortization, financial expense and total indebtedness.
FINANCIAL MANAGEMENT
Cogeco Cable had entered into cross-currency swap agreements to set the
liability for interest and principal payments on its US$190 million Senior
Secured Notes Series A maturing on October 1, 2015. These agreements have the
effect of converting the U.S. interest coupon rate of 7.00% per annum to an
average Canadian dollar interest rate of 7.24% per annum. The exchange rate
applicable to the principal portion of the debt has been fixed at $1.0625 per US
dollar. Cogeco Cable elected to apply cash flow hedge accounting on these
derivative financial instruments. During the first quarter of fiscal 2014,
amounts due under the US$190 million Senior Secured Notes Series A increased by
$1.7 million due to the US dollar's appreciation relative to the Canadian
dollar. The fair value of cross-currency swaps asset increased by a net amount
of $2.0 million, of which an increase of $1.7 million offsets the foreign
exchange loss on the debt denominated in US dollars. The difference of $0.3
million was recorded as an increase of other comprehensive income. During the
first quarter of fiscal 2013, amounts due under the US$190 million Senior
Secured Notes Series A increased by $1.5 million due to the US dollar's
appreciation over the Canadian dollar. The fair value of cross- currency swaps
liability decreased by a net amount of $1.1 million, of which $1.5 million
offsets the foreign exchange loss on the debt denominated in US dollars.
In addition, on July 22, 2013, Cogeco Cable had entered into interest rate swap
agreements to fix the interest rate on US$200 million of its LIBOR based loans.
These agreements have the effect of converting the floating US LIBOR base rate
at an average fixed rate of 0.39625% under the Term Revolving Facility until
July 25, 2015. Cogeco Cable elected to apply hedge accounting on these
derivative financial instruments. The fair value of interest rate swaps asset
decreased by a net amount of $0.9 million which was recorded as a decrease of
other comprehensive income at November 30, 2013.
Furthermore, Cogeco Cable's net investment in foreign subsidiaries is exposed to
market risk attributable to fluctuations in foreign currency exchange rates,
primarily changes in the values of the Canadian dollar versus the US dollar and
British Pound. This risk was mitigated since the major part of the purchase
prices for Atlantic Broadband and PEER 1 were borrowed directly in US dollars
and British Pounds. These debts were designated as hedges of net investments in
foreign operations. At November 30, 2013, the net investment for Atlantic
Broadband and for PEER 1 amounted to US$1.1 billion and GBP 70.7 million while
long-term debt hedging these net investments amounted to US$853.0 million and
GBP $56.7 million, respectively. The exchange rate used to convert the US dollar
currency and British Pound currency into Canadian dollars for the statement of
financial position accounts at November 30, 2013 was $1.0620 per US dollar and
$1.7383 per British Pound. The impact of a 10% change in the exchange rate of
the US dollar and British Pound into Canadian dollars would change other
comprehensive income by approximately $27.3 million.
The average rates prevailing during the first quarter of fiscal 2014 used to
convert the operating results in the Cable segment were $1.0399 per US dollar
and $1.6670 per British Pound. Cogeco Cable's condensed interim consolidated
financial statements are expressed in Canadian dollars, however a portion of its
business is conducted in US dollar and British Pound therefore, exchange rate
fluctuations can increase or decrease Cogeco Cable's operating results.
The following table highlights in Canadian dollars, the impact of a 10% increase
in US dollar or British Pound against the Canadian dollar as the case may be, of
Cogeco Cable's operating results for the three-month period ended November 30,
2013:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cable segment
Exchange rate
As reported impact
(in thousands of dollars) $ $
----------------------------------------------------------------------------
Revenue 474,980 12,805
Operating expense 253,949 7,556
Management fees - COGECO Inc. 9,509 -
----------------------------------------------------------------------------
Operating income before depreciation and
amortization 221,031 5,249
Integration, restructuring and acquisition costs 248 6
Depreciation and amortization 115,754 3,751
----------------------------------------------------------------------------
Operating income 95,520 1,492
----------------------------------------------------------------------------
----------------------------------------------------------------------------
The Corporation is also impacted by foreign currency exchange rates, primarily
changes in the values of the US dollar relative to the Canadian dollar with
regards to purchases of certain equipment, which are purchased and subsequently
paid in US dollars.
DIVIDEND DECLARATION
At its January 13, 2014 meeting, the Board of Directors of COGECO declared a
quarterly eligible dividend of $0.22 per share for multiple voting and
subordinate voting shares, payable on February 10, 2014, to shareholders of
record on January 27, 2014. The declaration, amount and date of any future
dividend will continue to be considered and approved by the Board of Directors
of the Corporation based upon the Corporation's financial condition, results of
operations, capital requirements and such other factors as the Board of
Directors, at its sole discretion, deems relevant. There is therefore no
assurance that dividends will be declared, and if declared, the amount and
frequency may vary.
CABLE SEGMENT
CUSTOMER STATISTICS
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Consolidated UNITED STATES CANADA
November 30, 2013
-----------------------------------------------------------------------
Primary service units ("PSU")(4) 2,464,932 489,430 1,975,502
Television service customers 1,057,859 230,210 827,649
HSI service customers 848,897 180,640 668,257
Telephony service customers 558,176 78,580 479,596
-----------------------------------------------------------------------
-----------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net additions (losses)
Quarters ended % of penetration(1)
November 30, November 30,
2013 2012(2) 2013 2012(2)
----------------------------------------------------------------------------
Primary service units ("PSU")(4) (2,725) 15,788(3)
Television service customers (9,093) (2,076) 48.2 52.1
HSI service customers 10,452 11,553(3) 38.7 39.4(3)
Telephony service customers (4,084) 6,311 25.4 28.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) As a percentage of homes passed.
(2) Net additions (losses) and penetration rates for fiscal 2012 are only
for the Canadian cable services segment.
(3) In the fourth quarter of fiscal 2013, High Speed Internet ("HSI")
customers have been adjusted upwards retroactively to comply with the
industry practices and consequently, PSU and penetration rate have been
also adjusted.
(4) Represents the sum of Television, HSI and Telephony service customers.
On November 30, 2013, PSU reached 2,464,932 of which 1,975,502 come from Canada
and 489,430 from the United States. In Canada, PSU decreased by 4,620 in the
quarter compared to an increase of 15,788 PSU for the comparable period of the
prior year, mainly as a result of service category maturity and a much more
competitive environment in all services. In the United States, PSU increased by
1,895 for the quarter stemming primarily from additional HSI services, offset by
small losses in Television services. At the consolidated level, fiscal 2014
first-quarter PSU net losses amounted to 2,725 compared to net additions of
15,788 in the comparable period of the prior year. Fiscal 2014 first-quarter net
losses for Television service customers stood at 9,093 compared to 2,076, HSI
service customers grew by 10,452 compared to 11,553 and the Telephony service
net losses stood at 4,084 customers compared to net additions of 6,311 for the
comparable period of fiscal 2013. HSI net additions continue to stem from the
enhancement of the product offering and the impact of the bundled offer.
OPERATING RESULTS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quarters ended November 30, 2013 2012 (1)(2) Change
(in thousands of dollars, except percentages) $ $ %
----------------------------------------------------------------------------
Revenue 474,980 327,911 44.9
Operating expenses 253,949 174,154 45.8
Management fees - COGECO Inc. 9,509 6,581 44.5
---------------------------------------------------------------------
Operating income before depreciation and
amortization 211,522 147,176 43.7
---------------------------------------------------------------------
Operating margin 44.5% 44.9%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Operating results for the period ended November 30, 2012 exclude those
of the recent acquisitions.
(2) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
REVENUE
Fiscal 2014 first-quarter revenue increased by $147.1 million, or 44.9%, to
reach $475.0 million compared to the same period last year. Revenue increase is
mainly attributable to the operating results of the recent acquisitions, the
rate increases implemented in June 2013 in Canada as well as organic growth from
data centre, managed IT and connectivity services.
OPERATING EXPENSES AND MANAGEMENT FEES
For the first quarter of fiscal 2014, operating expenses increased by $79.8
million, to reach $253.9 million, an increase of 45.8% compared to the prior
year. These additional operating expenses are mostly attributable to the recent
acquisitions, partly offset by cost reduction initiatives and the restructuring
activities occurred in the fourth quarter of fiscal 2013 in the Canadian cable
operations.
Management fees paid to COGECO Inc amounted to $9.5 million, 44.5% higher
compared to $6.6 million in fiscal 2013 as a result of higher revenues stemming
from the recent acquisitions. For fiscal year 2014, management fees have been
set at a maximum of $9.7 million ($9.6 million in 2013), which is expected to be
paid within the first half of the fiscal year.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION AND OPERATING MARGIN
Fiscal 2014 first quarter operating income before depreciation and amortization
increased by $64.3 million, or 43.7%, to reach $211.5 million as a result of the
recent acquisitions and the improvement of Cogeco Cable's financial results in
all its business units. Cogeco Cable's first quarter operating margin decreased
to 44.5% from 44.9% in the comparable period of the prior year essentially
attributable to lower margin business activities from the recent acquisition of
PEER 1.
CONTROLS AND PROCEDURES
The President and Chief Executive Officer ("CEO") and the Senior Vice President
and Chief Financial Officer ("CFO"), together with Management, are responsible
for establishing and maintaining adequate disclosure controls and procedures and
internal controls over financial reporting, as defined in National Instrument
52-109. COGECO's internal control framework is based on the criteria published
in the report Internal Control- Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission and is designed to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
IFRS.
The CEO and CFO, supported by Management, evaluated the design of the
Corporation's disclosure controls and procedures and internal controls over
financial reporting as of November 30, 2013, and have concluded that they are
adequate. Furthermore, no significant changes to the internal controls over
financial reporting occurred during the quarter ended November 30, 2013, except
as described below with respect to PEER 1, a subsidiary of Cogeco Cable.
On January 31, 2013 and on April 3, 2013, Cogeco Cable acquired 100% of the
issued and outstanding shares of PEER 1. Due to the short period of time between
those acquisition dates and the certification date on January 13, 2014,
management was unable to complete its review of the design of Internal Controls
Over Financial Reporting ("ICFR") for this recent acquisition. At November 30,
2013, risks were however mitigated as management was fully apprised of any
material events affecting the PEER 1 recent acquisition. In addition, all the
assets and liabilities acquired were valued and recorded in the condensed
interim consolidated financial statements as part of the preliminary purchase
price allocation process and PEER 1 results of operations were also included in
COGECO's consolidated results. PEER 1 constitutes 10% of revenue, -15% of profit
of the period, 15% of the total assets, 20% of the current assets, 15% of the
non current assets, 8% of the current liabilities and 15% of the non current
liabilities of the consolidated condensed interim financial statements of COGECO
for the three-month period ended November 30, 2013. In the upcoming quarters,
management will complete its review of the design of ICFR for PEER 1 and assess
its effectiveness. Financial information about the preliminary purchase price
allocation, assets acquired and liabilities assumed as well as other financial
information about PEER 1's business impact can be found in the 2013 Annual
Report of the Corporation.
UNCERTAINTIES AND MAIN RISK FACTORS
There has been no significant change in the uncertainties and main risk factors
faced by the Corporation since August 31, 2013 except as mentioned below. A
detailed description of the uncertainties and main risk factors faced by COGECO
can be found in the 2013 Annual Report available at www.sedar.com and
www.cogeco.ca.
On October 24, 2013, the Canadian Radio-Television and Telecommunications
Commission ("CRTC") issued a broadcasting notice inviting Canadians to express
their views on the future of the television system in Canada. The first phase of
that public proceeding was completed in December 2013 and the second phase will
take place in the winter of 2014. This public consultation is likely to lead to
changes in regulatory policy respecting significant aspects of the production,
funding and distribution of television programming content in Canada. On the
heels of the CRTC's invitation for comments from the public, the Canadian
Government issued on November 14, 2013 a direction to the CRTC under the
authority of section 15 of the Broadcasting Act requesting that the CRTC report
on television channel choice by no later than April 30, 2014. The requested
report will focus specifically on the issue of unbundling of television
channels, including the steps the CRTC intends to take in that regard. At this
time, it is not known what steps or measures the CRTC will recommend in its
report, or how and when these steps or measures would be implemented. They could
have a major impact on wholesale and retail pricing of television services
distributed by Cogeco Cable and other Canadian terrestrial and satellite
broadcasting distributors as, if and when they are eventually implemented.
On November 26, 2013, Rogers Communications and the National Hockey League
("NHL") announced that they had concluded a twelve-year comprehensive broadcast
and multimedia licensing agreement respecting all national rights to NHL games
on all platforms in all languages in Canada, beginning with 2014-2015 season.
Rogers Communications also announced that it had selected CBC and TVA for
separate sublicensing deals for English-language broadcasts of "Hockey Night in
Canada" and all national French-language multimedia rights, respectively. At
this time, the impact of this long-term agreement on wholesale and retail rates
for linear subscription and on-demand television programming services involving
NHL hockey games distributed by Cogeco Cable and other terrestrial and satellite
broadcasting distributors cannot be assessed, nor the extent to which the
consumption of Canadian premium sports programming will change over the next
twelve years as a result of future distribution sublicensing terms for NHL
hockey games.
FUTURE ACCOUNTING DEVELOPMENTS IN CANADA
A number of new standards, interpretations and amendments to existing standards
issued by the International Accounting Standard Board ("IASB") are effective for
annual periods starting on or after January 1, 2013 and have been applied in
preparing the condensed interim consolidated financial statements for the three
months ended November 30, 2013.
NEW ACCOUNTING STANDARDS
The Corporation adopted the following new accounting standards on September 1,
2013. The impacts of the application of this standard are described in Note 2 of
the condensed interim consolidated financial statements.
-- Amendment to IAS 19, Employee Benefits : The principal difference in the
amended standard is that the expected long-term rate of return on plan
assets will no longer be used to calculate the defined benefit pension
costs. The defined benefit pension costs concepts of "interest cost" and
"expected return on plan assets" are replaced by the concept of "net
interest" calculated by applying the discount rate to the net liability
or asset. The net interest cost takes into account the change any
contributions and benefit payments have on the net defined benefit
liability or asset during the period.
The Corporation also adopted the following standards on September 1, 2013 which
had no impact on the condensed interim consolidated financial statements.
-- Amendments to IFRS 7 Financial Instruments: Disclosures
-- IFRS 10 Consolidated Financial Statements
-- IFRS 12 Disclosure of Interest in Other Entities
-- IFRS 13 Fair Value Measurement
CHANGES IN CRITICAL ACCOUNTING POLICIES AND ESTIMATES
There has been no significant change in COGECO's accounting policies, estimates
and future accounting pronouncements since August 31, 2013. A description of the
Corporation's policies and estimates can be found in the 2013 Annual Report,
available at www.sedar.com and www.cogeco.ca.
NON-IFRS FINANCIAL MEASURES
This section describes non-IFRS financial measures used by COGECO throughout
this MD&A. It also provides reconciliations between these non-IFRS measures and
the most comparable IFRS financial measures. These financial measures do not
have standard definitions prescribed by IFRS and therefore, may not be
comparable to similar measures presented by other companies. These measures
include "cash flow from operations", "free cash flow" and "operating income
before depreciation and amortization".
CASH FLOW FROM OPERATIONS AND FREE CASH FLOW
Cash flow from operations is used by COGECO's management and investors to
evaluate cash flows generated by operating activities, excluding the impact of
changes in non-cash operating activities, amortization of deferred transaction
costs and discounts on long-term debt, income taxes paid, current income tax
expense, financial expense paid and financial expense. This allows the
Corporation to isolate the cash flows from operating activities from the impact
of cash management decisions. Cash flow from operations is subsequently used in
calculating the non-IFRS measure, "free cash flow". Free cash flow is used, by
COGECO's management and investors, to measure its ability to repay debt,
distribute capital to its shareholders and finance its growth.
The most comparable IFRS measure is cash flow from operating activities. Cash
flow from operations is calculated as follows:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quarters ended November 30, 2013 2012(1)
(in thousands of dollars) $ $
----------------------------------------------------------------------------
Cash flow from operating activities 60,235 (6,005)
Changes in non-cash operating activities 95,965 87,508
Amortization of deferred transaction costs and discounts
on long-term debt 1,878 856
Income taxes paid 19,164 44,248
Current income tax expense (28,166) (26,112)
Financial expense paid 44,168 18,309
Financial expense (34,022) (17,303)
----------------------------------------------------------------------------
Cash flow from operations 159,222 101,501
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
Free cash flow is calculated as follows:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quarters ended November 30, 2013 2012(1)
(in thousands of dollars) $ $
----------------------------------------------------------------------------
Cash flow from operations 159,222 101,501
Acquisition of property, plant and equipment (82,464) (78,514)
Acquisition of intangible and other assets (4,116) (4,641)
----------------------------------------------------------------------------
Free cash flow 72,642 18,346
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
Operating income before depreciation and amortization is used by COGECO's
management and investors to assess the Corporation's ability to seize growth
opportunities in a cost effective manner, to finance its ongoing operations and
to service its debt. Operating income before depreciation and amortization is a
proxy for cash flows from operations excluding the impact of the capital
structure chosen, and is one of the key metrics used by the financial community
to value the business and its financial strength.
The most comparable IFRS financial measure is operating income. Operating income
before depreciation and amortization is calculated as follow:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quarters ended November 30, 2013 2012(1)
(in thousands of dollars) $ $
----------------------------------------------------------------------------
Operating income 106,698 83,581
Depreciation and amortization 117,094 66,041
Integration, restructuring and acquisitions costs 248 7,262
----------------------------------------------------------------------------
Operating income before depreciation and amortization 224,040 156,884
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Comparative figures have been adjusted to comply with the adoption of
IAS 19 - Employee Benefits. For further details, please refer to Note 2
of the condensed interim consolidated financial statements.
SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Quarters ended November 30, August 31,
(in thousands of dollars, except
percentages and per share data) 2013 2012 (2) 2013 (2) 2012
$ $ $ $
----------------------------------------------------------------------------
Revenue 516,971 366,608 504,714 356,685
Operating income before
depreciation and amortization 224,040 156,884 224,608 163,617
Operating income 106,698 83,581 104,414 95,943
Income taxes 15,837 19,172 10,374 33,625
Profit for the period from
continuing operations 56,839 47,106 43,770 44,900
Profit for the period from
discontinued operations - - - -
Profit for the period 56,839 47,106 43,770 44,900
Profit for the period attributable
to owners of the Corporation 23,055 18,530 13,869 13,889
Cash flow from operating
activities 60,235 (6,005) 233,464 203,193
Cash flow from operations 159,222 101,501 162,138 119,612
Acquisitions of property, plant
and equipment, intangible and
other assets 86,580 83,155 108,756 124,638
Free cash flow (deficit) 72,642 18,346 53,382 (5,026)
Earnings per share(1) attributable
to owners of the Corporation
From continuing and discontinued
operations
Basic 1.38 1.11 0.83 0.83
Diluted 1.37 1.10 0.82 0.83
From continuing operations
Basic 1.38 1.11 0.83 0.83
Diluted 1.37 1.10 0.82 0.83
From discontinued operations
Basic - - - -
Diluted - - - -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
--------------------------------------------------------------------------
--------------------------------------------------------------------------
February, February,
Quarters ended May 31, 28 29
(in thousands of dollars, except
percentages and per share data) 2013 (2) 2012 2013 (2) 2012
$ $ $ $
--------------------------------------------------------------------------
Revenue 504,434 358,032 458,501 345,613
Operating income before
depreciation and amortization 220,878 158,446 196,272 144,518
Operating income 105,851 95,473 94,859 58,931
Income taxes 19,080 22,278 15,089 13,372
Profit for the period from
continuing operations 49,995 55,373 48,950 29,449
Profit for the period from
discontinued operations - - - 52,047
Profit for the period 49,995 55,373 48,950 81,496
Profit for the period attributable
to owners of the Corporation 17,185 19,303 14,676 25,089
Cash flow from operating
activities 167,641 109,546 157,095 126,455
Cash flow from operations 158,172 117,606 140,124 105,153
Acquisitions of property, plant
and equipment, intangible and
other assets 113,492 88,141 106,019 87,186
Free cash flow (deficit) 44,680 29,465 34,105 17,967
Earnings per share(1) attributable
to owners of the Corporation
From continuing and discontinued
operations
Basic 1.03 1.15 0.88 1.50
Diluted 1.02 1.15 0.87 1.49
From continuing operations
Basic 1.03 1.15 0.88 0.50
Diluted 1.02 1.15 0.87 0.50
From discontinued operations
Basic - - - 1.00
Diluted - - - 0.99
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Per multiple and subordinate voting share.
(2) These figures have been adjusted to comply with the adoption of IAS 19 -
Employee Benefits.
SEASONAL VARIATIONS
Cogeco Cable's operating results are not generally subject to material seasonal
fluctuations except as follows. In the Cable segment, the number of customers in
the Television service and HSI service are generally lower in the second half of
the fiscal year as a result of a decrease in economic activity due to the
beginning of the vacation period, the end of the television season, and students
leaving their campuses at the end of the school year. Cogeco Cable offers its
services in several university and college towns such as Kingston, Windsor,
St.Catharines, Hamilton, Peterborough, Trois-Rivieres and Rimouski in Canada and
in the Pennsylvania region, and to a lesser extent in South Carolina,
Maryland/Delaware in the United States. In the United States, the Miami region
is also subject to seasonal fluctuations due to the winter season residents
returning home from late Spring through the Fall.
ADDITIONAL INFORMATION
This MD&A was prepared on January 13, 2014. Additional information relating to
the Corporation, including its Annual Information Form, is available on the
SEDAR website at www.sedar.com.
/s/ Jan Peeters /s/ Louis Audet
---------------------------------- ----------------------------------
Jan Peeters Louis Audet
Chairman of the Board President and Chief Executive
Officer
COGECO Inc.
Montreal, Quebec
January 13, 2014
FOR FURTHER INFORMATION PLEASE CONTACT:
Source:
COGECO Inc.
Pierre Gagne
Senior Vice President and Chief Financial Officer
514-764-4700
Information:
Media
Rene Guimond
Vice-President, Public Affairs and Communications
514-764-4700
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