- Revenue increased by 6.1% (2.3% in constant currency
(1)) compared to the same period of the prior year to
$762.3 million;
- Adjusted EBITDA (1) was $367.2 million, an increase of 5.1% (1.8% in
constant currency (1));
- Profit for the period amounted to $120.4 million, an increase of 3.2%;
- Earnings per share on a diluted basis was $2.44, an increase of 7.5%;
- Net capital expenditures (1) (2) amounted to
$197.0 million, an increase of 39.7%
(33.4% in constant currency). Excluding network expansion projects
(1), net capital expenditures amounted to $131.1 million, an increase of 8.4% (3.8% in
constant currency);
-
- Capital intensity (1)
was 25.8% compared to 19.6% in the same period of the prior
year. Excluding network expansion projects (1), capital
intensity was 17.2% compared to 16.8% last year.
- Acquisition of property, plant and equipment amounted to
$234.6 million, an increase of
60.9%;
- Free cash flow (1) amounted to $105.1 million, a decrease of 20.4% (20.0% in
constant currency (1)), due to intensified network
expansion projects. Free cash flow, excluding network expansion
projects (1) was $171.0 million, an increase of 12.4% (10.6% in
constant currency);
- Cash flows from operating activities decreased by 32.3% to
$194.2 million, mainly resulting from
working capital items;
- Purchased and cancelled 512,170 Cogeco Communications
subordinate voting shares for a total consideration of $37.3 million;
- Fiscal 2023 financial guidelines were revised; and
- A quarterly eligible dividend of $0.776 per share was declared, compared to
$0.705 per share in the comparable
quarter of fiscal 2022, an increase of 10%.
MONTRÉAL, Jan. 12,
2023 /CNW Telbec/ - Today, Cogeco Communications Inc.
(TSX: CCA) ("Cogeco Communications" or the "Corporation") announced
its financial results for the first quarter ended November 30,
2022, in accordance with International Financial Reporting
Standards ("IFRS").
OPERATING RESULTS
For the first quarter of fiscal 2023:
- Revenue increased by 6.1% to reach $762.3 million. On a constant currency basis,
revenue increased by 2.3%, mainly explained as follows:
-
- Canadian telecommunications' revenue increased by 4.8% as
reported and in constant currency, mainly driven by the cumulative
effect of high-speed Internet service additions over the past year,
a higher value product mix and rate increases.
- American telecommunications' revenue increased by 7.4%. On a
constant currency basis, revenue decreased by 0.1%. In constant
currency, stable revenue resulted from a higher value product mix
and rate increases, offset by a lower customer base in Ohio.
- Adjusted EBITDA increased by 5.1% to reach $367.2 million. On a constant currency basis,
adjusted EBITDA increased by 1.8%, mainly explained as follows:
-
- Canadian telecommunications adjusted EBITDA increased by 5.7%,
or 6.4% in constant currency, primarily due to revenue growth,
partly offset by increased operating expenses.
- American telecommunications adjusted EBITDA increased by 3.8%.
On a constant currency basis, adjusted EBITDA decreased by 3.4%,
mainly resulting from unusually low spending in marketing and
advertising and less staff last year in Ohio while the assets were still operating
under the previous owner's brand.
- Profit for the period amounted to $120.4
million, of which $111.5
million, or $2.44 per diluted
share, was attributable to owners of the Corporation compared to
$116.6 million, $106.8 million, and $2.27 per diluted share, respectively, in the
comparable period of fiscal 2022. The increases resulted mainly
from higher adjusted EBITDA and lower acquisition, integration,
restructuring and other costs, partly offset by increases in income
tax expense, financial expense and depreciation and amortization
expense.
- Net capital expenditures, which account for construction
subsidies, and capital intensity were $197.0
million and 25.8%, respectively, compared to $141.0 million and 19.6% in the same period of
the prior year, driven by increased network expansion activities in
Canada and the United States. Excluding network expansion
projects, net capital expenditures and capital intensity were
$131.1 million and 17.2%,
respectively, compared to $121.0
million and 16.8% in the same period of the prior year.
-
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States where about 20,000 and
17,000 homes passed were added during the quarter,
respectively.
- Acquisition of property, plant and equipment increased by 60.9%
to $234.6 million, mainly due to
network expansion projects in both countries.
- Free cash flow decreased by 20.4%, or 20.0% in constant
currency, and amounted to $105.1
million, mainly due to higher net capital expenditures
driven by increased network expansion activity in both countries
and higher financial expense, partly offset by lower acquisition,
integration, restructuring and other costs, higher adjusted EBITDA
and lower current income taxes. Free cash flow, excluding network
expansion projects increased by 12.4%, or 10.6% in constant
currency, and amounted to $171.0
million.
- Cash flows from operating activities decreased by 32.3% to
reach $194.2 million, driven by a
$64.4 million outflow in non-cash
operating activities versus a $13.2
million inflow in the comparative period, resulting from the
timing of trade and other payables, as well as increased interest
and income taxes paid, partly offset by higher adjusted EBITDA and
lower acquisition, integration, restructuring and other costs.
- Cogeco Communications purchased and cancelled 512,170
subordinate voting shares for a total consideration of $37.3 million, compared to 274,000 subordinate
voting shares purchased and cancelled in the comparable quarter of
fiscal 2022, for a total consideration of $29.5 million.
- At its January 12, 2023 meeting,
the Board of Directors of Cogeco Communications declared a
quarterly eligible dividend of $0.776
per share, an increase of 10% compared to $0.705 per share in the comparable quarter of
fiscal 2022.
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Capital
intensity is a supplementary financial measure. Constant currency
basis, 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 and capital intensity, excluding network
expansion projects 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.
|
|
|
(2)
|
Net capital
expenditures are presented net of government subsidies, including
the utilization of those received in advance.
|
"We have met our financial targets during the first quarter of
fiscal 2023," stated Philippe Jetté, President and Chief Executive
Officer of Cogeco Communications Inc.
"Cogeco Connexion, our Canadian telecommunications business
unit, performed as expected," Mr. Jetté continued. "We continued to
connect new homes to our network as part of the fibre-to-the-home
network expansions in Québec and we are starting to see the
positive effects."
"In the United States,
Breezeline's first-quarter financial results were consistent with
our expectations, with a high value product mix offsetting an
expected decline in subscribers in Ohio, driven primarily by the remaining impact
from our customer management and billing systems' migration," Mr.
Jetté added. "While inflation and increased nationwide competition
present challenges, notably for entry-level products, we are
working on several initiatives aimed at continuously improving our
customers' experience. In Ohio,
our IPTV product was successfully introduced to our new video
customers and we will be phasing in this service to existing
Breezeline video customers in the state starting in early
2023."
"Finally, we are delighted that our corporate governance
practices have been recognized again this year by the Globe and
Mail's Board Games as among the best within Canadian
family-controlled dual class public corporations," Mr. Jetté
concluded.
FISCAL 2023 REVISED FINANCIAL GUIDELINES
Cogeco Communications has revised its fiscal 2023 financial
guidelines as issued on July 13, 2022
for revenue, adjusted EBITDA, net capital expenditures and capital
intensity. Free cash flow projections remain the same as previously
disclosed. The Corporation expects a reduction in revenue growth
rates, driven by a lower customer base than expected in
Ohio, and to a lesser extent, by
the current economic conditions which are impacting customers'
discretionary spending, especially for the Corporation's
entry-level services, and by increasing competition. The
Corporation has initiated several cost optimization initiatives in
order to minimize the revenue impact on adjusted EBITDA, and with a
prudent cash management strategy, net capital expenditures are
expected to be lower than under the previous financial
guidelines.
Compared to fiscal 2022, on a constant currency and consolidated
basis, revenue and adjusted EBITDA are now expected to increase
between 0.5% and 2.0%. The expected growth in revenue and adjusted
EBITDA results mainly from expected growth in Internet service
customers and a high value product mix. The expected increase in
net capital expenditures compared to fiscal 2022 is primarily due
to the continued net investments in network expansions which will
increase the Corporation's footprint in Canada and the
United States.
|
|
|
|
|
|
|
January 12,
2023
|
|
July 13,
2022
|
|
|
|
Revised
projections
|
(1)
|
Original
projections
|
(1)
|
Actual
|
(In millions of
Canadian dollars, except percentages)
|
Fiscal
2023
(constant
currency)
|
(2)
|
Fiscal 2023
(constant
currency)
|
(2)
|
Fiscal 2022
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
Financial
guidelines
|
|
|
|
|
|
Revenue
|
Increase of 0.5% to
2.0%
|
|
Increase of 2% to
4%
|
|
2,901
|
Adjusted
EBITDA
|
Increase of 0.5% to
2.0%
|
|
Increase of 1.5% to
3.5%
|
|
1,393
|
Net capital
expenditures
|
$700 to
$775
|
|
$750 to $800
|
|
689
|
Net capital
expenditures in connection with network expansion
projects
|
$180 to
$230
|
|
$180 to $230
|
|
157
|
Capital
intensity
|
24% to
26%
|
|
Approximately
26%
|
|
23.8 %
|
Capital intensity,
excluding network expansion projects
|
17% to
19%
|
|
Approximately
19%
|
|
18.3 %
|
Free cash
flow
|
Decrease of 2% to
12%
|
(3)
|
Decrease of 2% to
12%
|
(3)
|
424
|
Free cash flow,
excluding network expansion projects
|
Decrease of 5% to an
increase of 5%
|
(3)
|
Decrease of 5% to an
increase of 5%
|
(3)
|
582
|
|
|
|
|
|
|
(1)
|
Percentage of changes
compared to fiscal 2022.
|
(2)
|
Fiscal 2023 financial
guidelines are based on a USD/CDN constant exchange rate of 1.2718
USD/CDN.
|
(3)
|
The assumed current
income tax effective rate is approximately 11%.
|
These financial guidelines, including the various assumptions
underlying them, contain forward-looking statements concerning the
business outlook for Cogeco Communications, and should be read in
conjunction with the "Forward-looking statements" section of this
press release.
OPERATING ENVIRONMENT
The current global economic and political instability has
resulted in rising inflation and interest rates. While we are
proactively working at minimizing their impact on the Corporation,
we expect the combination of those elements to continue to put
pressure on revenue, as some customers seek ways to reduce their
monthly spending, and on the costs to deliver our services. At the
same time, and partially as a reaction to a more challenging
market, some telecommunications providers have adopted more
aggressive strategies and price points in order to generate sales
activity.
While the Corporation experienced sustained demand for its
residential high-speed Internet product in the context of the
COVID-19 pandemic restrictions, a softening of the market is being
observed with the re-opening of the economy in the recent quarters
and a return to the workplace. While we remain cautious in our
management of the situation, our priority remains on ensuring the
well-being of our employees, customers and business partners.
Although we have conducted our operations normally during recent
quarters, we will remain vigilant should the situation change in
the future.
The Corporation's results discussed herein may not be indicative
of future operational trends and financial performance. Please
refer to the "Forward-looking statements" section.
FINANCIAL HIGHLIGHTS
Three months ended
November 30,
|
2022
|
2021
|
(1)
|
Change
|
Change in
constant
currency
|
(2)
(3)
|
(In thousands of
Canadian dollars, except percentages and per share
data)
|
$
|
$
|
|
%
|
%
|
|
Operations
|
|
|
|
|
|
|
Revenue
|
762,300
|
718,541
|
|
6.1
|
2.3
|
|
Adjusted EBITDA
(3)
|
367,223
|
349,287
|
|
5.1
|
1.8
|
|
Adjusted EBITDA margin
(3)
|
48.2 %
|
48.6 %
|
|
|
|
|
Acquisition,
integration, restructuring and other costs
(4)
|
2,677
|
18,635
|
|
(85.6)
|
|
|
Profit for the
period
|
120,375
|
116,610
|
|
3.2
|
|
|
Profit for the period
attributable to owners of the Corporation
|
111,504
|
106,837
|
|
4.4
|
|
|
Cash
flow
|
|
|
|
|
|
|
Cash flows from
operating activities
|
194,159
|
286,945
|
|
(32.3)
|
|
|
Free cash flow
(3)
|
105,128
|
132,111
|
|
(20.4)
|
(20.0)
|
|
Free cash flow,
excluding network expansion projects (3)
|
170,962
|
152,127
|
|
12.4
|
10.6
|
|
Acquisition of
property, plant and equipment
|
234,637
|
145,848
|
|
60.9
|
|
|
Net capital
expenditures (1) (3)
|
196,971
|
141,028
|
|
39.7
|
33.4
|
|
Net capital
expenditures, excluding network expansion projects
(3)
|
131,137
|
121,012
|
|
8.4
|
3.8
|
|
Capital intensity
(3)
|
25.8 %
|
19.6 %
|
|
|
|
|
Capital intensity,
excluding network expansion projects (3)
|
17.2 %
|
16.8 %
|
|
|
|
|
Per share data
(5)
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic
|
2.45
|
2.29
|
|
7.0
|
|
|
Diluted
|
2.44
|
2.27
|
|
7.5
|
|
|
Dividends
|
0.776
|
0.705
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
November 30,
2022
|
August 31,
2022
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Financial
condition
|
|
|
Cash and cash
equivalents
|
407,757
|
370,899
|
Total assets
|
9,587,396
|
9,278,509
|
Long-term
debt
|
|
|
Current
|
340,606
|
339,096
|
Non-current
|
4,610,038
|
4,334,373
|
Net indebtedness
(3)
|
4,672,763
|
4,489,330
|
Equity attributable to
owners of the Corporation
|
2,844,925
|
2,751,080
|
|
|
|
|
|
|
(1)
|
Comparative figures
have been restated following the application of the IFRS
Interpretations Committee issued agenda decision Demand Deposits
with Restrictions on Use arising from a Contract with a Third
Party (IAS 7 Statement of Cash Flows) during the third
quarter of fiscal 2022. Furthermore, the Corporation also changed
the label of its "Acquisition of property, plant and equipment" key
performance indicator measure to "Net capital expenditures"
following this application. For further details, refer to the
"Accounting policies" section of the first quarter of fiscal 2023
Management's Discussion and Analysis ("MD&A").
|
(2)
|
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-month period ended November 30,
2021, the average foreign exchange rate used for translation was
1.2559 USD/CDN.
|
(3)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Adjusted
EBITDA margin and capital intensity are supplementary financial
measures. 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 and capital intensity, excluding network
expansion projects are non-IFRS ratios. Net indebtedness is a
capital management measure. 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.
|
(4)
|
For the three-month
period ended November 30, 2022, acquisition, integration,
restructuring and other costs resulted mostly from costs associated
with the configuration and customization related to cloud computing
arrangements. For the three-month period ended November 30, 2021,
acquisition, integration, restructuring and other costs resulted
mostly from costs incurred in connection with the acquisition,
completed on September 1, 2021, and integration of the Ohio
broadband systems.
|
(5)
|
Per multiple and
subordinate voting share.
|
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 regarding
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 2022 annual
MD&A and of the fiscal 2023 first-quarter MD&A, the "Fiscal
2023 financial guidelines" section of the Corporation's 2022 annual
MD&A and the "Fiscal 2023 revised financial guidelines of the
current 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 competitive risks
(changing competitive ecosystem, disruptive competitive strategies
adopted by our competitors), business risks (including potential
disruption to our supply chain caused by economic and geopolitical
instability and other contributing factors, increasing
transportation lead times, scarcity and shortage of input materials
and key telecommunication equipment and competition for limited
resources), regulatory risks, technology risks (including
cybersecurity), financial risks (including variations in currency
and interest rates), economic conditions (including elevated
inflation reaching historical highs pressuring revenue, due to
reduced consumer spending, and increasing costs), human-caused and
natural threats to our 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"
sections of the Corporation's 2022 annual MD&A and of the
fiscal 2023 first-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 which 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-month
period ended November 30, 2022, 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 2022 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-month period ended November 30, 2022, available on
SEDAR at www.sedar.com.
CONSTANT CURRENCY BASIS AND FOREIGN EXCHANGE IMPACT
RECONCILIATION
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
2022
|
|
Foreign exchange
impact
|
|
2022
in constant
currency
|
(1)
|
2021
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
762,300
|
|
(26,910)
|
|
735,390
|
|
718,541
|
|
6.1
|
|
2.3
|
|
Operating
expenses
|
389,677
|
|
(15,435)
|
|
374,242
|
|
363,674
|
|
7.2
|
|
2.9
|
|
Management fees –
Cogeco Inc.
|
5,400
|
|
—
|
|
5,400
|
|
5,580
|
|
(3.2)
|
|
(3.2)
|
|
Adjusted
EBITDA
|
367,223
|
|
(11,475)
|
|
355,748
|
|
349,287
|
|
5.1
|
|
1.8
|
|
Free cash
flow
|
105,128
|
|
594
|
|
105,722
|
|
132,111
|
|
(20.4)
|
|
(20.0)
|
|
Net capital
expenditures
|
196,971
|
|
(8,904)
|
|
188,067
|
|
141,028
|
|
39.7
|
|
33.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2023
first-quarter in constant currency is translated at the average
foreign exchange rate of fiscal 2022 first-quarter, which was
1.2559 USD/CDN.
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
2022
|
|
Foreign exchange
impact
|
|
2022
in constant
currency
|
(1)
|
2021
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
372,084
|
|
—
|
|
372,084
|
|
355,047
|
|
4.8
|
|
4.8
|
|
Operating
expenses
|
173,451
|
|
(1,168)
|
|
172,283
|
|
167,186
|
|
3.7
|
|
3.0
|
|
Adjusted
EBITDA
|
198,633
|
|
1,168
|
|
199,801
|
|
187,861
|
|
5.7
|
|
6.4
|
|
Net capital
expenditures
|
115,238
|
|
(3,360)
|
|
111,878
|
|
67,471
|
|
70.8
|
|
65.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2023
first-quarter in constant currency is translated at the average
foreign exchange rate of fiscal 2022 first-quarter, which was
1.2559 USD/CDN.
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
|
2022
|
|
Foreign exchange
impact
|
|
2022
in constant
currency
|
(1)
|
2021
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
390,216
|
|
(26,910)
|
|
363,306
|
|
363,494
|
|
7.4
|
|
(0.1)
|
|
Operating
expenses
|
207,710
|
|
(14,267)
|
|
193,443
|
|
187,730
|
|
10.6
|
|
3.0
|
|
Adjusted
EBITDA
|
182,506
|
|
(12,643)
|
|
169,863
|
|
175,764
|
|
3.8
|
|
(3.4)
|
|
Net capital
expenditures
|
80,408
|
|
(5,544)
|
|
74,864
|
|
73,227
|
|
9.8
|
|
2.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2023
first-quarter in constant currency is translated at the average
foreign exchange rate of fiscal 2022 first-quarter, which was
1.2559 USD/CDN.
|
FREE CASH FLOW RECONCILIATION
|
|
Three months ended
November 30,
|
|
2022
|
2021
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Cash flows from
operating activities
|
194,159
|
286,945
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
3,044
|
2,922
|
Changes in other
non-cash operating activities
|
64,416
|
(13,174)
|
Income taxes
paid
|
46,618
|
25,360
|
Current income
taxes
|
(8,376)
|
(14,563)
|
Interest
paid
|
60,498
|
31,599
|
Financial
expense
|
(56,919)
|
(44,955)
|
Net capital
expenditures
|
(196,971)
|
(141,028)
|
Repayment of lease
liabilities
|
(1,341)
|
(995)
|
Free cash
flow
|
105,128
|
132,111
|
|
|
|
(1)
|
Included within
financial expense.
|
NET CAPITAL EXPENDITURES RECONCILIATION
|
|
|
|
|
Three months ended
November 30,
|
|
2022
|
2021
|
(1)
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Acquisition of
property, plant and equipment
|
234,637
|
145,848
|
|
Subsidies received in
advance recognized as a reduction of the cost of property, plant
and equipment during the period
|
(37,666)
|
(4,820)
|
|
Net capital
expenditures
|
196,971
|
141,028
|
|
|
|
|
|
(1)
|
Comparative figures
have been restated. For further details, refer to the "Accounting
policies" section of the fiscal 2023 first-quarter
MD&A.
|
ADJUSTED EBITDA RECONCILIATION
|
|
|
|
Three months ended
November 30,
|
|
2022
|
2021
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Profit for the
period
|
120,375
|
116,610
|
Income taxes
|
31,953
|
17,450
|
Financial
expense
|
56,919
|
44,955
|
Depreciation and
amortization
|
155,299
|
151,637
|
Acquisition,
integration, restructuring and other costs
|
2,677
|
18,635
|
Adjusted
EBITDA
|
367,223
|
349,287
|
|
|
|
NET CAPITAL EXPENDITURES AND FREE CASH FLOW EXCLUDING NETWORK
EXPANSION PROJECTS RECONCILIATIONS
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30,
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2022
|
|
Foreign exchange
impact
|
|
2022
in constant
currency
|
(1)
|
2021
|
|
Actual
|
|
In
constant
currency
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Net capital
expenditures
|
196,971
|
|
(8,904)
|
|
188,067
|
|
141,028
|
|
39.7
|
|
33.4
|
Net capital
expenditures in connection with network expansion
projects
|
65,834
|
|
(3,362)
|
|
62,472
|
|
20,016
|
|
—
|
|
—
|
Net capital
expenditures, excluding network expansion projects
|
131,137
|
|
(5,542)
|
|
125,595
|
|
121,012
|
|
8.4
|
|
3.8
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2023
first-quarter in constant currency is translated at the average
foreign exchange rate of fiscal 2022 first-quarter, which was
1.2559 USD/CDN.
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30,
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2022
|
|
Foreign exchange
impact
|
|
2022
in constant
currency
|
(1)
|
2021
|
|
Actual
|
|
In
constant
currency
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
Free cash
flow
|
105,128
|
|
594
|
|
105,722
|
|
132,111
|
|
(20.4)
|
|
(20.0)
|
Net capital
expenditures in connection with network expansion
projects
|
65,834
|
|
(3,362)
|
|
62,472
|
|
20,016
|
|
—
|
|
—
|
Free cash flow,
excluding network expansion projects
|
170,962
|
|
(2,768)
|
|
168,194
|
|
152,127
|
|
12.4
|
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Fiscal 2023
first-quarter in constant currency is translated at the average
foreign exchange rate of fiscal 2022 first-quarter, which was
1.2559 USD/CDN.
|
ADDITIONAL INFORMATION
Additional information relating to the Corporation is available
on the SEDAR website at www.sedar.com 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 with a legacy of more than 65 years.
Through its business units Cogeco Connexion and Breezeline, Cogeco
Communications provides Internet, video and phone services to 1.6
million residential and business customers in Québec and
Ontario in Canada as well as in thirteen states in
the United States. Cogeco
Communications Inc.'s subordinate voting shares are listed on the
Toronto Stock Exchange (TSX: CCA).
Conference
Call:
|
Friday, January 13,
2023 at 9:30 a.m. (Eastern Time)
|
|
|
|
|
|
A live audio webcast of
the analyst call will be available on Cogeco Communications'
website at
https://corpo.cogeco.com/cca/en/investors/investor-relations/. The
webcast will be available on Cogeco Communications' website for a
three-month period. Members of the financial community will be able
to access the conference call and ask questions. Media
representatives may attend as listeners only.
|
|
|
|
Please use the
following dial-in number to have access to the conference call 5 to
10 minutes before the start of the conference:
|
|
|
|
Local - Toronto:
1-416-764-8646
|
|
Toll Free - North
America: 1-888-396-8049
|
|
|
|
In order to join this
conference, participants are required to provide the operator with
the name of the company hosting the call, that is, Cogeco Inc. or
Cogeco Communications Inc.
|
|
|
|
The conference call
will be followed by the Annual Shareholders' Meetings at 11:30 a.m.
at the Centre Mont-Royal in Montréal, Québec (2200 Mansfield
Street). A live webcast of the Annual Shareholders' Meetings will
be available on Cogeco's and Cogeco Communications' websites. You
will be able to log into the virtual Meetings at
https://corpo.cogeco.com/cca/en/investors/shareholders-meetings/
starting at 10:30 a.m. on January 13. Note that the Meetings are
not accessible via the Internet Explorer web browser.
|
|
|
For information:
Investors
Patrice Ouimet
Senior Vice President and Chief Financial Officer
Cogeco Communications Inc.
Tel.: 514-764-4700
patrice.ouimet@cogeco.com
Media
Marie-Hélène Labrie
Senior Vice President and Chief Public Affairs, Communications and
Strategy Officer
Cogeco Communications Inc.
Tel.: 514-764-4700
marie-helene.labrie@cogeco.com
SOURCE Cogeco Communications Inc.