- Revenue increased by 16.6% (15.2% in constant currency
(1)) compared to the same period of the prior year to
reach $728.1 million;
- Adjusted EBITDA (1) reached $347.6 million, an increase of 17.0% (15.8% in
constant currency (1));
- Profit for the period amounted to $105.4 million, an increase of 2.5%;
- Free cash flow (1) amounted to $104.8 million, a decrease of 20.7% (20.3% in
constant currency (1)), following increased network
expansion activities;
- Cash flows from operating activities increased by 33.4% to
reach $353.0 million;
- Cogeco Communications is releasing its fiscal 2023 financial
guidelines; and
- A quarterly eligible dividend of $0.705 per share was declared compared to
$0.64 per share in the comparable
quarter of fiscal 2021.
MONTRÉAL, July 13,
2022 /CNW Telbec/ - Today, Cogeco Communications Inc.
(TSX: CCA) ("Cogeco Communications" or the "Corporation") announced
its financial results for the third quarter ended May 31,
2022, in accordance with International Financial Reporting
Standards ("IFRS").
OPERATING RESULTS
For the third quarter of fiscal 2022:
- Revenue increased by 16.6% to reach $728.1 million compared to the previous year. On
a constant currency basis, revenue increased by 15.2%, mainly
explained as follows:
-
- American broadband services revenue increased by 31.7% in
constant currency, mostly resulting from the Ohio broadband systems acquisition completed
on September 1, 2021 and organic
revenue growth driven by a higher Internet service customer base,
higher value product mix and annual rate increases implemented for
certain services.
- Canadian broadband services revenue increased by 2.5% mainly as
a result of last year's reduction in revenue of $4.6 million due to the retroactive impact of the
CRTC's decision on wholesale high-speed Internet access services
and organic revenue growth.
- Adjusted EBITDA increased by 17.0% to reach $347.6 million compared to the previous year. On
a constant currency basis, adjusted EBITDA increased by 15.8%,
mainly explained as follows:
-
- American broadband services adjusted EBITDA increased by 33.3%
in constant currency mainly resulting from the Ohio broadband systems acquisition and a
higher margin driven by the organic revenue growth, partly offset
by higher marketing and advertising costs, including Breezeline's
rebranding costs.
- Canadian broadband services adjusted EBITDA increased by 3.9%
in constant currency mainly resulting from last year's reduction in
revenue of $4.6 million due to the
retroactive impact of the CRTC's decision on wholesale high-speed
Internet access services and organic growth.
- Profit for the period amounted to $105.4
million, of which $100.3
million, or $2.17 per share,
was attributable to owners of the Corporation compared to
$102.8 million, $95.7 million, and $2.02 per share, respectively, in the comparable
period of fiscal 2021. The increases resulted mainly from higher
adjusted EBITDA and lower income tax expense, partly offset by the
increases in depreciation and amortization expense and financial
expense.
- Free cash flow decreased by 20.7% (20.3% in constant currency)
to reach $104.8 million compared to
the previous year, mainly due to higher capital expenditures, as
Cogeco Connexion accelerated its construction efforts in connection
with its high-speed Internet network expansion, and the increases
in financial expense and current income taxes, partly offset by
higher adjusted EBITDA.
- Cash flows from operating activities increased by 33.4% to
reach $353.0 million compared to the
previous year, mainly resulting from higher adjusted EBITDA,
improved working capital elements and lower income taxes paid,
partly offset by higher interest paid.
- Cogeco Communications maintains its fiscal 2022 financial
guidelines as issued on April 13,
2022.
- Cogeco Communications purchased and cancelled 294,800
subordinate voting shares for a total consideration of $30.6 million.
- At its July 13, 2022 meeting, the
Board of Directors of Cogeco Communications declared a quarterly
eligible dividend of $0.705 per share
compared to $0.64 per share in the
comparable quarter of fiscal 2021.
|
(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 of this press release, including
reconciliation to the most directly comparable IFRS financial
measures.
|
"Our performance for the third quarter of fiscal 2022 was in
line with our expectations, despite the increasingly challenging
economic context," stated Philippe Jetté, President and Chief
Executive Officer of Cogeco Communications Inc.
"Our Canadian broadband services business unit, Cogeco
Connexion, performed well during the quarter. The financial and
operational performance was in line with expectations, while the
number of customer additions reflected slower activity in the
industry. We are also actively building new networks in
collaboration with governments and a growing number of homes are
being connected and offered Cogeco's services," said Mr. Jetté.
"In the United States, we had
good revenue and adjusted EBITDA growth at Breezeline, despite the
challenging economic environment and market softness which are
impacting customer acquisitions," added Mr. Jetté. "The Breezeline
team successfully rebranded its operations in Cleveland and Columbus, Ohio, as it transitioned the
customer management system."
"We were also pleased to have been ranked among Corporate
Knights' 2022 Best 50 Corporate Citizens in Canada for a fifth consecutive year. This
highly regarded ranking recognizes Canadian companies that are
setting the standard for sustainable growth leadership," concluded
Mr. Jetté.
FISCAL 2023 FINANCIAL GUIDELINES
Cogeco Communications released its fiscal 2023 financial
guidelines. On a constant currency basis, the Corporation expects
fiscal 2023 revenue to grow between 2% and 4% and adjusted EBITDA
between 1.5% and 3.5%. Net capital expenditures (1)
should reach between $750 and
$800 million, including net
investments of approximately $180 to
$230 million in network expansions
which will increase the Corporation's footprint in Canada and the
United States. As a result of these growth initiatives, free
cash flow is expected to decrease between 2% and 12%. Excluding the
fiscal 2023 network expansion projects, free cash flow on a
constant currency and consolidated basis would otherwise be within
a range encompassing a decrease of 5% to an increase of 5%.
(1)
|
During the third
quarter of fiscal 2022, the Corporation changed the label of its
"Acquisition of property, plant and equipment" key performance
indicator measure to "Net capital expenditures". Net capital
expenditures do not have a standardized definition 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 this press
release.
|
OPERATING ENVIRONMENT
While the impact of the COVID-19 pandemic on the Corporation is
generally stabilizing, our priority remains on ensuring the
well-being of our employees, customers and business partners. We
have conducted our operations normally during the recent quarters
and will remain vigilant should the situation change in the
future.
The more recent global economic and political instability has
resulted in rising inflation and, for certain purchased products,
more scarcity and longer delivery lead times. While we are
proactively working at minimizing the impact on the Corporation, we
expect the combination of those elements to put pressure on
revenue, as some customers seek ways to reduce their monthly
spending, and on the costs to deliver our services.
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 May 31,
|
|
Nine months ended May 31,
|
|
|
2022
|
2021
|
(1)
|
Change
|
Change in
constant
currency
|
(2)
(3)
|
Foreign
exchange
impact
|
(2)
|
2022
|
2021
|
(1)
|
Change
|
Change in
constant
currency
|
(2)
(3)
|
Foreign
exchange
impact
|
(2)
|
(In thousands
of
Canadian dollars,
except
percentages
and per
share data)
|
$
|
$
|
|
%
|
%
|
|
$
|
|
$
|
$
|
|
%
|
%
|
|
$
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
728,118
|
624,308
|
|
16.6
|
15.2
|
|
9,056
|
|
2,175,208
|
1,877,769
|
|
15.8
|
16.4
|
|
(9,637)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(3)
|
347,614
|
296,999
|
|
17.0
|
15.8
|
|
3,691
|
|
1,045,988
|
915,086
|
|
14.3
|
14.8
|
|
(4,751)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
margin
(3)
|
47.7 %
|
47.6 %
|
|
|
|
|
|
|
48.1 %
|
48.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Integration,
restructuring
and
acquisition
costs (4)
|
2,263
|
1,225
|
|
84.7
|
|
|
|
|
22,349
|
4,770
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
period
|
105,406
|
102,786
|
|
2.5
|
|
|
|
|
341,927
|
328,241
|
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the
period
attributable to
owners
of the
Corporation
|
100,250
|
95,702
|
|
4.8
|
|
|
|
|
318,362
|
305,317
|
|
4.3
|
|
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from
operating
activities
|
353,001
|
264,621
|
|
33.4
|
|
|
|
|
921,145
|
737,512
|
|
24.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
(3)
|
104,795
|
132,070
|
|
(20.7)
|
(20.3)
|
|
(458)
|
|
389,906
|
415,454
|
|
(6.1)
|
(5.7)
|
|
(1,699)
|
|
Acquisition
of
property,
plant and
equipment
|
197,345
|
126,570
|
|
55.9
|
|
|
|
|
501,066
|
358,006
|
|
40.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net capital
expenditures (1)
(3) (5)
|
182,181
|
126,570
|
|
43.9
|
41.4
|
|
3,159
|
|
465,404
|
358,006
|
|
30.0
|
30.4
|
|
(1,558)
|
|
Capital intensity
(3)
|
25.0 %
|
20.3 %
|
|
|
|
|
|
|
21.4 %
|
19.1 %
|
|
|
|
|
|
|
Financial condition
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash
equivalents
|
|
|
|
|
|
|
|
|
377,710
|
549,054
|
|
(31.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
8,976,551
|
7,351,692
|
|
22.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net indebtedness
(3) (7)
|
|
|
|
|
|
|
|
|
4,384,376
|
2,954,188
|
|
48.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable
to
owners of
the
Corporation
|
|
|
|
|
|
|
|
|
2,647,271
|
2,415,144
|
|
9.6
|
|
|
|
|
Per share data
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.17
|
2.02
|
|
7.4
|
|
|
|
|
6.87
|
6.42
|
|
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
2.16
|
2.01
|
|
7.5
|
|
|
|
|
6.81
|
6.36
|
|
7.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
0.705
|
0.64
|
|
10.2
|
|
|
|
|
2.115
|
1.92
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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 periods denominated
in US dollars at the foreign exchange rates of the comparable
periods of the prior year. For the three and nine-month periods
ended May 31, 2021, the average foreign exchange rates used for
translation were 1.2399 USD/CDN and 1.2771 USD/CDN,
respectively.
|
(3)
|
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 of this press release, including
reconciliation to the most directly comparable IFRS financial
measures.
|
(4)
|
For the three and
nine-month periods ended May 31, 2022, integration, restructuring
and acquisition costs resulted mostly from costs incurred in
connection with the acquisition, completed on September 1, 2021,
and ongoing integration of the Ohio broadband systems, as well as
integration costs related to the DERYtelecom acquisition. For the
three and nine-month periods ended May 31, 2021, integration,
restructuring and acquisition costs resulted mostly from due
diligence costs related to the acquisition of the Ohio broadband
systems and costs related to the acquisition, which was completed
on December 14, 2020, and integration of DERYtelecom.
|
(5)
|
For the three and
nine-month periods ended May 31, 2022, net capital expenditures in
constant currency amounted to $179.0 million and $467.0 million,
respectively.
|
(6)
|
At May 31, 2022 and
August 31, 2021.
|
(7)
|
Net indebtedness is
defined as the total of bank indebtedness and principal on
long-term debt, less cash and cash equivalents, excluding cash with
restrictions on use.
|
(8)
|
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" and "Fiscal 2022 financial guidelines"
sections of the Corporation's 2021 annual MD&A and of the
current MD&A, and the "Fiscal 2023 financial guidelines"
section 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,
business risks (including potential disruption to our supply chain
worsened by the increasing geopolitical instability resulting from
the war in Ukraine and other
contributing factors, increasing transportation lead times,
scarcity of input materials and shortages of chipsets,
semiconductors and key telecommunication equipment and competition
for 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, infrastructure and systems,
community acceptance risks, ethical behavior risks, ownership
risks, litigation risks and public health crisis and emergencies
such as the COVID-19 pandemic, 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
2021 annual MD&A and of the current 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 and nine-month periods
ended May 31, 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 2021 Annual Report.
NON-IFRS FINANCIAL MEASURES
This section describes non-IFRS financial measures used by
Cogeco Communications throughout this press release. These
financial measures are reviewed in assessing the performance of the
Corporation and used in the decision-making process with regard to
its business units. Reconciliations between "adjusted EBITDA",
"adjusted EBITDA margin", "free cash flow", "net capital
expenditures", "capital intensity" and "net indebtedness" and the
most directly comparable IFRS financial measures are also provided.
These financial measures do not have standard definitions
prescribed by IFRS and therefore, may not be comparable to similar
measures presented by other companies.
This press release also makes reference to key performance
indicators on a constant currency basis, including revenue,
"adjusted EBITDA", "net capital expenditures" and "free cash flow".
Measures on a constant currency basis are considered non-IFRS
financial measures and do not have any standardized meaning
prescribed by IFRS and therefore, may not be comparable to similar
measures presented by other companies.
|
|
|
|
Non-IFRS
financial
measures
|
Application
|
Calculation
|
Most
directly
comparable
IFRS
financial
measures
|
Adjusted
EBITDA
and
adjusted
EBITDA
margin
|
Adjusted EBITDA and
adjusted EBITDA margin are
key measures commonly
reported and used in the
telecommunications
industry, as they allow
comparisons between
companies that have different
capital structures and
are more current measures since
they exclude the impact
of historical investments in
assets. Adjusted EBITDA
is one of the key metrics
employed by the
financial community to value a
business and its
financial strength.
Adjusted EBITDA for
Cogeco Communications'
business units is equal
to the segment profit (loss)
reported in Note 4 of the condensed interim
consolidated financial
statements.
|
Adjusted
EBITDA:
- Profit for the
period
add:
- Income
taxes;
- Financial
expense;
- Depreciation and
amortization; and
- Integration,
restructuring and acquisition costs.
|
Profit for
the
period
|
|
|
Adjusted EBITDA
margin:
- Adjusted
EBITDA
divided by:
- Revenue.
|
No directly
comparable
IFRS
financial
measure
|
Free cash
flow
|
Management and
investors use free cash flow to
measure Cogeco
Communications' ability to repay
debt, distribute
capital to its shareholders and finance
its growth.
|
Free cash
flow:
- Adjusted
EBITDA
add:
- Amortization of
deferred transaction costs and discounts on long-term
debt;
- Share-based
payment;
- Loss (gain) on
disposals and write-offs of property, plant and equipment;
and
- Defined benefit plans
expense, net of
contributions
deduct:
- Integration,
restructuring and acquisition costs;
- Financial
expense;
- Current income
taxes;
- Net capital
expenditures; and
- Repayment of lease
liabilities.
|
Cash flows
from
operating
activities
|
Net capital
expenditures
|
Net capital
expenditures is a measure used by Cogeco
Communications'
management to assess the
Corporation's total
capital investments, net of subsidies
recognized as a
reduction of the cost of property, plant
and equipment during
the period, regardless of whether
they were received in
advance or not. Subsidies
received in advance are
recognized as a reduction of
property, plant and
equipment based on the costs
incurred in connection
with the high-speed Internet
network expansion
construction projects over the total
expected
costs.
Net capital
expenditures for Cogeco Communication's
business units is equal
to the measure reported in Note
4 of the condensed
interim consolidated financial statements.
|
Net capital
expenditures:
- Acquisition of
property, plant and equipment (1)
deduct:
- Subsidies received in
advance recognized as a reduction
of the cost of
property, plant and equipment during the
period.
|
Acquisition
of
property,
plant
and
equipment
|
|
|
|
|
(1)
Excludes the non-cash acquisition of right-of-use assets and the
purchases of spectrum licences.
|
|
|
|
|
Non-IFRS
financial
measures
|
Application
|
Calculation
|
Most
directly
comparable
IFRS
financial
measures
|
Constant currency
basis
|
Revenue, operating
expenses, adjusted EBITDA, net
capital expenditures
and free cash flow are measures
presented on a constant
currency basis to enable an
improved understanding
of the Corporation's
underlying financial
performance, undistorted by the
effects of changes in
foreign exchange rates.
|
Constant currency basis
is obtained by translating
financial results from
the current periods denominated in
US dollars at the
foreign exchange rates of the comparable
periods of the prior
year.
|
No directly
comparable
IFRS
financial
measure
|
|
|
|
|
Capital
intensity
|
Capital intensity is
used by Cogeco Communications'
management and
investors to assess the Corporation's
investment in capital
expenditures in order to support
a certain level of
revenue.
|
Capital
intensity:
- Net capital
expenditures
divided by:
- Revenue.
|
No directly
comparable
IFRS
financial
measure
|
Net
indebtedness
|
Net indebtedness is a
measure used by management
and investors to assess
Cogeco Communications'
financial leverage, as
it represents the debt net of the
available unrestricted
cash and cash equivalents.
|
Net
indebtedness:
add:
- Principal on
long-term debt; and
- Bank
indebtedness
deduct:
- Cash and cash
equivalents, excluding cash with
restrictions on
use.
|
Long-term
debt,
including
the
current
portion
|
|
|
|
|
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
RECONCILIATION
The reconciliation of adjusted EBITDA to the most directly
comparable IFRS financial measure and the calculation of adjusted
EBITDA margin are as follows:
|
Three months ended May
31,
|
Nine months ended May
31,
|
|
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
$
|
$
|
$
|
Profit for the
period
|
105,406
|
102,786
|
341,927
|
328,241
|
|
|
|
|
|
Income taxes
|
28,202
|
31,326
|
78,373
|
102,260
|
|
|
|
|
|
Financial
expense
|
45,334
|
33,506
|
135,268
|
100,555
|
|
|
|
|
|
Depreciation and
amortization
|
166,409
|
128,156
|
468,071
|
379,260
|
|
|
|
|
|
Integration,
restructuring and acquisition costs
|
2,263
|
1,225
|
22,349
|
4,770
|
Adjusted
EBITDA
|
347,614
|
296,999
|
1,045,988
|
915,086
|
Revenue
|
728,118
|
624,308
|
2,175,208
|
1,877,769
|
Adjusted EBITDA
margin
|
47.7 %
|
47.6 %
|
48.1 %
|
48.7 %
|
|
|
|
|
|
FREE CASH FLOW RECONCILIATION
The reconciliation of free cash flow to the most directly
comparable IFRS financial measure is as follows:
|
Three months ended May
31,
|
Nine months ended May
31,
|
|
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
|
|
|
|
Cash flows from
operating activities
|
353,001
|
264,621
|
921,145
|
737,512
|
|
|
|
|
|
Amortization of
deferred transaction costs and discounts on long-term
debt
|
2,926
|
2,334
|
8,841
|
6,935
|
|
|
|
|
|
Changes in other
non-cash operating activities
|
(54,184)
|
(15,536)
|
(44,814)
|
9,779
|
|
|
|
|
|
Income taxes
paid
|
(369)
|
18,085
|
29,692
|
76,395
|
|
|
|
|
|
Current income
taxes
|
(16,734)
|
(6,504)
|
(42,083)
|
(44,739)
|
|
|
|
|
|
Interest
paid
|
48,984
|
30,342
|
121,137
|
91,472
|
|
|
|
|
|
Financial
expense
|
(45,334)
|
(33,506)
|
(135,268)
|
(100,555)
|
|
|
|
|
|
Net capital
expenditures
|
(182,181)
|
(126,570)
|
(465,404)
|
(358,006)
|
|
|
|
|
|
Repayment of lease
liabilities
|
(1,314)
|
(1,196)
|
(3,340)
|
(3,339)
|
Free cash
flow
|
104,795
|
132,070
|
389,906
|
415,454
|
|
|
|
|
|
NET CAPITAL EXPENDITURES RECONCILIATION
The reconciliation of net capital expenditures to the most
directly comparable IFRS financial measure is as follows:
|
Three months ended May
31,
|
Nine months ended May
31,
|
|
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
Acquisition of
property, plant and equipment
|
197,345
|
126,570
|
501,066
|
358,006
|
|
|
|
|
|
Subsidies received in
advance recognized as a reduction of the cost of property, plant
and
equipment
during the period
|
(15,164)
|
—
|
(35,662)
|
—
|
Net capital
expenditures
|
182,181
|
126,570
|
465,404
|
358,006
|
|
|
|
|
|
CAPITAL INTENSITY RECONCILIATION
The calculation of capital intensity is as follows:
|
Three months ended May
31,
|
Nine months ended May
31,
|
|
|
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
$
|
$
|
$
|
Net capital
expenditures
|
182,181
|
126,570
|
465,404
|
358,006
|
|
|
|
|
|
Revenue
|
728,118
|
624,308
|
2,175,208
|
1,877,769
|
Capital
intensity
|
25.0 %
|
20.3 %
|
21.4 %
|
19.1 %
|
|
|
|
|
|
NET INDEBTEDNESS RECONCILIATION
The reconciliation of net indebtedness to the most directly
comparable IFRS financial measure is as follows:
|
At May 31,
2022
|
At August 31,
2021
|
|
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Long-term debt,
including the current portion
|
4,545,871
|
3,272,216
|
|
|
|
Discounts, transaction
costs and other
|
54,548
|
43,032
|
|
|
|
Bank
indebtedness
|
13,795
|
4,460
|
|
|
|
Cash and cash
equivalents, excluding cash with restrictions on use
|
(229,838)
|
(365,520)
|
Net
indebtedness
|
4,384,376
|
2,954,188
|
|
|
|
ABOUT COGECO COMMUNICATIONS INC.
Rooted in the communities it serves, Cogeco Communications Inc.
(TSX: CCA) is a growing competitive force in the North American
telecommunications sector with a legacy of 65 years. Through its
business units Cogeco Connexion and Breezeline (formerly Atlantic
Broadband), Cogeco Communications provides Internet, video and
phone services to 1.6 million residential and business customers in
Quebec and Ontario in Canada as well as in twelve states in
the United States. To learn more
about Cogeco Communications' growth strategy and its commitment to
support its communities, promote inclusive growth and fight climate
change, please visit us online at corpo.cogeco.com.
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
Conference
Call:
|
Thursday, July 14, 2022
at 11:00 a.m. (Eastern Time)
|
|
|
|
A live audio webcast
will be available on Cogeco Communications' website at
https://corpo.cogeco.com/cca/en/investors/investor-relations/.
Members of the financial community will be able to access the
conference call and ask questions. Media representatives may attend
as listeners only. The webcast will be available on Cogeco
Communications' website for a three-month period.
|
|
|
|
Please use the
following dial-in number to have access to the conference call 5 to
10 minutes before the start of the conference:
|
|
|
|
Canada/United States
Access Number: 1-888-396-8049
|
|
|
|
International Access
Number: 1-416-764-8646
|
|
|
|
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.
|
SOURCE Cogeco Communications Inc.