- Revenue increased by 6.0% (2.4% in constant currency
(1)) compared to the same period of the prior year to
$789.7 million;
- Adjusted EBITDA (1) was $373.9 million, an increase of 5.5% (2.3% in
constant currency (1));
- Profit for the period amounted to $123.8 million, an increase of 3.9%;
- Earnings per share on a diluted basis was $2.67, an increase of 10.8%;
- Net capital expenditures (1) (2) amounted to
$197.3 million, an increase of
39.5% (33.2% in constant currency). Excluding network expansion
projects (1), net capital expenditures amounted to
$131.5 million, an increase of
8.2% (3.7% in constant currency);
- Acquisition of property, plant and equipment amounted to
$235.0 million, an increase of
60.6%;
- Free cash flow (1) amounted to $109.5 million, a decrease of 19.4% (19.0% in
constant currency (1)), due to intensified network
expansion projects. Free cash flow, excluding network expansion
projects (1) was $175.3 million, an increase of 12.5% (10.7%
in constant currency);
- Cash flows from operating activities decreased by 34.8% to
$193.8 million, mainly resulting from
working capital items;
- Purchased and cancelled 27,700 Cogeco subordinate voting
shares for a total consideration of $1.6 million;
- Fiscal 2023 financial guidelines were revised; and
- A quarterly eligible dividend of $0.731 per share was declared, compared to
$0.625 per share in the comparable
quarter of fiscal 2022, an increase of 17%.
MONTRÉAL, Jan. 12,
2023 /CNW Telbec/ - Today, Cogeco Inc. (TSX:
CGO) ("Cogeco" 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 6.0% to reach $789.7 million. On a constant currency basis,
revenue increased by 2.4%, 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.
- Revenue in the media activities increased by 2.5%.
- Adjusted EBITDA increased by 5.5% to reach $373.9 million. On a constant currency basis,
adjusted EBITDA increased by 2.3%, 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 $123.8
million, of which $42.1
million, or $2.67 per diluted
share, was attributable to owners of the Corporation compared to
$119.1 million, $38.5 million, and $2.41 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, were $197.3 million,
compared to $141.5 million 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 amounted to
$131.5 million compared to
$121.5 million 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 60.6%
to $235.0 million, mainly due to
network expansion projects in both countries.
- Free cash flow decreased by 19.4%, or 19.0% in constant
currency, and amounted to $109.5
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 12.5%, or 10.7% in constant
currency, and amounted to $175.3
million.
- Cash flows from operating activities decreased by 34.8% to
reach $193.8 million, driven by a
$69.9 million outflow in non-cash
operating activities versus a $19.7
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 purchased and cancelled 27,700 subordinate voting shares
for a total consideration of $1.6 million.
- At its January 12, 2023 meeting,
the Board of Directors of Cogeco declared a quarterly eligible
dividend of $0.731 per share, an
increase of 17% compared to $0.625 per share in the comparable quarter of
fiscal 2022.
- On January 12, 2023, the Board of
Directors of Cogeco also approved the renewal of Cogeco's normal
course issuer bid ("NCIB") to repurchase for cancellation up to
325,000 subordinate voting shares, subject to the approval of the
Toronto Stock Exchange. The current NCIB expires on January 17, 2023.
"We have met our financial targets during the first quarter of
fiscal 2023," stated Philippe Jetté, President and Chief Executive
Officer of Cogeco 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."
"With respect to our broadcasting operations, while the market
remains challenging, Cogeco Media has performed in accordance with
our expectations and we continued to expand our multi-platform
audio content options with an emphasis on digital ad-tech
solutions. In addition, the fall Numeris survey results once again
confirm our market leadership," Mr. Jetté concluded.
FISCAL 2023 REVISED FINANCIAL GUIDELINES
Cogeco has revised its fiscal 2023 financial guidelines as
issued on July 13, 2022 for revenue,
adjusted EBITDA and net capital expenditures. 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%
|
|
2,995
|
Adjusted
EBITDA
|
Increase of 0.5% to
2.0%
|
|
Increase of 1.5% to
3.5%
|
|
1,406
|
Net capital
expenditures
|
$700 to
$775
|
|
$750 to $800
|
|
692
|
Net capital
expenditures in connection with network expansion
projects
|
$180 to
$230
|
|
$180 to $230
|
|
157
|
Free cash
flow
|
Decrease of 2% to
12%
|
(3)
|
Decrease of 2% to
12%
|
(3)
|
433
|
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)
|
590
|
|
|
|
|
|
|
(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, 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.
Furthermore, our radio operations have been impacted by a
portion of their customer base, such as the travel and automobile
industries, reducing their advertising budgets in the context of a
challenging economic environment and supply chain disruptions. In
order to mitigate the impact on its operations, Cogeco Media
continues to manage its operating expenses tightly, as it did since
the beginning of the pandemic, while maintaining quality
programming.
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.
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. 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 is a non-IFRS ratio. 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.
|
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
|
789,690
|
745,258
|
|
6.0
|
2.4
|
|
Adjusted EBITDA
(3)
|
373,882
|
354,394
|
|
5.5
|
2.3
|
|
Acquisition,
integration, restructuring and other costs
(4)
|
2,677
|
18,635
|
|
(85.6)
|
|
|
Profit for the
period
|
123,808
|
119,139
|
|
3.9
|
|
|
Profit for the period
attributable to owners of the Corporation
|
42,081
|
38,523
|
|
9.2
|
|
|
Cash
flow
|
|
|
|
|
|
|
Cash flows from
operating activities
|
193,821
|
297,342
|
|
(34.8)
|
|
|
Free cash flow
(3)
|
109,483
|
135,820
|
|
(19.4)
|
(19.0)
|
|
Free cash flow,
excluding network expansion projects (3)
|
175,317
|
155,836
|
|
12.5
|
10.7
|
|
Acquisition of property, plant and
equipment
|
235,008
|
146,329
|
|
60.6
|
|
|
Net capital
expenditures (1) (3)
|
197,342
|
141,509
|
|
39.5
|
33.2
|
|
Net capital
expenditures, excluding network expansion projects
(3)
|
131,508
|
121,493
|
|
8.2
|
3.7
|
|
Per share data
(5)
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic
|
2.68
|
2.42
|
|
10.7
|
|
|
Diluted
|
2.67
|
2.41
|
|
10.8
|
|
|
Dividends
|
0.731
|
0.625
|
|
17.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
November 30,
2022
|
August 31,
2022
|
|
|
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
|
|
|
Financial
condition
|
|
|
|
|
|
|
Cash and cash
equivalents
|
408,498
|
379,001
|
|
|
|
|
Total assets
|
9,777,227
|
9,468,025
|
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
Current
|
341,880
|
340,468
|
|
|
|
|
Non-current
|
4,671,508
|
4,398,142
|
|
|
|
|
Net indebtedness
(3)
|
4,734,886
|
4,545,809
|
|
|
|
|
Equity attributable to
owners of the Corporation
|
956,837
|
919,843
|
|
|
|
|
|
|
|
|
|
|
|
(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. 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 is a
non-IFRS ratio. 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
Inc.'s ("Cogeco" 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 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
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.
Moreover, the Corporation's radio operations are significantly
exposed to advertising budgets from the retail industry, which can
fluctuate due to changing economic conditions. 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 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's 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. These financial measures are
reviewed in assessing the performance of Cogeco 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
|
789,690
|
|
(26,910)
|
|
762,780
|
|
745,258
|
|
6.0
|
|
2.4
|
Operating
expenses
|
415,808
|
|
(15,435)
|
|
400,373
|
|
390,864
|
|
6.4
|
|
2.4
|
Adjusted
EBITDA
|
373,882
|
|
(11,475)
|
|
362,407
|
|
354,394
|
|
5.5
|
|
2.3
|
Free cash
flow
|
109,483
|
|
594
|
|
110,077
|
|
135,820
|
|
(19.4)
|
|
(19.0)
|
Net capital
expenditures
|
197,342
|
|
(8,904)
|
|
188,438
|
|
141,509
|
|
39.5
|
|
33.2
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
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
|
193,821
|
297,342
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
3,062
|
2,942
|
Changes in other
non-cash operating activities
|
69,949
|
(19,729)
|
Income taxes
paid
|
47,293
|
26,336
|
Current income
taxes
|
(9,290)
|
(15,549)
|
Interest
paid
|
61,206
|
32,872
|
Financial
expense
|
(57,527)
|
(45,608)
|
Net capital
expenditures
|
(197,342)
|
(141,509)
|
Repayment of lease
liabilities
|
(1,689)
|
(1,277)
|
Free cash
flow
|
109,483
|
135,820
|
|
|
|
(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
|
235,008
|
146,329
|
|
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
|
197,342
|
141,509
|
|
|
|
|
|
(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
|
123,808
|
119,139
|
Income taxes
|
33,480
|
18,383
|
Financial
expense
|
57,527
|
45,608
|
Depreciation and
amortization
|
156,390
|
152,629
|
Acquisition,
integration, restructuring and other costs
|
2,677
|
18,635
|
Adjusted
EBITDA
|
373,882
|
354,394
|
|
|
|
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
|
197,342
|
|
(8,904)
|
|
188,438
|
|
141,509
|
|
39.5
|
|
33.2
|
Net capital
expenditures in connection with network expansion
projects
|
65,834
|
|
(3,362)
|
|
62,472
|
|
20,016
|
|
—
|
|
—
|
Net capital
expenditures, excluding network expansion projects
|
131,508
|
|
(5,542)
|
|
125,966
|
|
121,493
|
|
8.2
|
|
3.7
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
109,483
|
|
594
|
|
110,077
|
|
135,820
|
|
(19.4)
|
|
(19.0)
|
Net capital
expenditures in connection with network expansion
projects
|
65,834
|
|
(3,362)
|
|
62,472
|
|
20,016
|
|
—
|
|
—
|
Free cash flow,
excluding network expansion projects
|
175,317
|
|
(2,768)
|
|
172,549
|
|
155,836
|
|
12.5
|
|
10.7
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 INC.
Rooted in the communities it serves, Cogeco Inc. is a growing
competitive force in the North American telecommunications and
media sectors with a legacy of more than 65 years. Through its
business units Cogeco Connexion and Breezeline, Cogeco 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. Through Cogeco
Media, it owns and operates 21 radio stations primarily in the
province of Québec as well as a news agency. Cogeco's subordinate
voting shares are listed on the Toronto Stock Exchange (TSX: CGO).
The subordinate voting shares of Cogeco Communications Inc. are
also 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's website at
https://corpo.cogeco.com/cgo/en/investors/investor-relations/. The
webcast will be available on Cogeco's 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/cgo/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.
|
SOURCE Cogeco Inc.