- Revenue increased by 16.3% (14.9% in constant currency
(1)) compared to the same period of the prior year to
reach $754.8 million;
- Adjusted EBITDA (1) reached $353.5 million, an increase of 16.9% (15.7% in
constant currency (1));
- Profit for the period amounted to $108.5 million, an increase of 3.3%;
- Free cash flow (1) amounted to $109.0 million, a decrease of 20.2% (19.9% in
constant currency (1)), following increased network
expansion activities;
- Cash flows from operating activities increased by 32.2% to
reach $355.7 million;
- Cogeco is releasing its fiscal 2023 financial guidelines;
and
- A quarterly eligible dividend of $0.625 per share was declared compared to
$0.545 per share in the comparable
quarter of fiscal 2021.
MONTRÉAL, July 13,
2022 /CNW Telbec/ - Today, Cogeco Inc. (TSX: CGO)
("Cogeco" 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 16.3% to reach $754.8 million compared to the previous year. On
a constant currency basis, revenue increased by 14.9%, 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.
- Revenue in the media activities increased by 6.8%, mainly
following the easing of public health restrictions, whereby last
year's third quarter radio advertising revenue was directly
impacted by COVID-19 related lockdown measures.
|
(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.
|
- Adjusted EBITDA increased by 16.9% to reach $353.5 million compared to the previous year. On
a constant currency basis, adjusted EBITDA increased by 15.7%,
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 $108.5
million, of which $37.5
million, or $2.38 per share,
was attributable to owners of the Corporation compared to
$105.0 million, $34.5 million, and $2.17 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 20.2% (19.9% in constant currency)
to reach $109.0 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 32.2% to
reach $355.7 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 maintains its fiscal 2022 financial guidelines as issued
on April 13, 2022.
- Cogeco purchased and cancelled 37,014 subordinate voting shares
for a total consideration of $2.8
million.
- At its July 13, 2022 meeting, the
Board of Directors of Cogeco declared a quarterly eligible dividend
of $0.625 per share compared to
$0.545 per share in the comparable
quarter of fiscal 2021.
"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 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."
"Cogeco Media, our radio business, has continued to shine in the
ratings, while the team finds innovative ways to overcome the
challenges of the traditional advertising market, including
progressively redefining our radio stations as multiplatform audio
content providers," continued Mr. Jetté. "In addition to the
Numeris results, which listed several of our radio stations at the
top of the rankings, including 98,5 which is once again the top
radio station in Canada, Cogeco
Media was well represented in Triton's inaugural listing of top 30
French language podcasts in Canada, with six on this prestigious
list."
"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 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%.
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.
In our radio operations, the advertising market was strongly
affected by the pandemic due to restrictions imposed on portions of
the customer base, such as the travel industry, as well as supply
chain disruptions limiting other customers' businesses, such as the
automobile industry. Furthermore, listeners have spent less time
commuting in their cars since the pandemic started, which
negatively impacted listening hours. However, signs have been
positive for the economy as the majority of public health measures
have been lifted. 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.
In our telecommunications operations, 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.
|
(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.
|
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
|
754,777
|
649,260
|
|
16.3
|
14.9
|
|
9,056
|
|
2,248,101
|
1,948,771
|
|
15.4
|
15.9
|
|
(9,637)
|
|
Adjusted EBITDA
(3)
|
353,473
|
302,340
|
|
16.9
|
15.7
|
|
3,691
|
|
1,057,078
|
931,844
|
|
13.4
|
13.9
|
|
(4,751)
|
|
Integration,
restructuring and acquisition costs
(4)
|
2,286
|
1,272
|
|
79.7
|
|
|
|
|
22,372
|
4,783
|
|
—
|
|
|
|
|
Profit for the
period
|
108,456
|
104,994
|
|
3.3
|
|
|
|
|
346,376
|
335,597
|
|
3.2
|
|
|
|
|
Profit for the period
attributable to owners of
the Corporation
|
37,493
|
34,548
|
|
8.5
|
|
|
|
|
112,675
|
108,774
|
|
3.6
|
|
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
355,681
|
269,078
|
|
32.2
|
|
|
|
|
931,791
|
746,229
|
|
24.9
|
|
|
|
|
Free cash flow
(3)
|
108,954
|
136,567
|
|
(20.2)
|
(19.9)
|
|
(458)
|
|
398,477
|
425,358
|
|
(6.3)
|
(5.9)
|
|
(1,699)
|
|
Acquisition of property,
plant and equipment
|
198,271
|
126,745
|
|
56.4
|
|
|
|
|
502,753
|
358,984
|
|
40.0
|
|
|
|
|
Net capital
expenditures (1) (3) (5)
|
183,107
|
126,745
|
|
44.5
|
42.0
|
|
3,159
|
|
467,091
|
358,984
|
|
30.1
|
30.5
|
|
(1,558)
|
|
Financial condition
(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
379,232
|
551,968
|
|
(31.3)
|
|
|
|
|
Total assets
|
|
|
|
|
|
|
|
|
9,167,638
|
7,536,313
|
|
21.6
|
|
|
|
|
Net indebtedness
(3) (7)
|
|
|
|
|
|
|
|
|
4,444,729
|
3,008,681
|
|
47.7
|
|
|
|
|
Equity attributable to
owners of the
Corporation
|
|
|
|
|
|
|
|
|
887,811
|
816,658
|
|
8.7
|
|
|
|
|
Per share data
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.38
|
2.17
|
|
9.7
|
|
|
|
|
7.11
|
6.84
|
|
3.9
|
|
|
|
|
Diluted
|
2.37
|
2.16
|
|
9.7
|
|
|
|
|
7.07
|
6.80
|
|
4.0
|
|
|
|
|
Dividends
|
0.625
|
0.545
|
|
14.7
|
|
|
|
|
1.875
|
1.635
|
|
14.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $179.9 million and $468.6 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
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" 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
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. 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 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 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 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 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", "free cash flow", "net
capital expenditures" 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. In addition, this press
release refers to the adjusted EBITDA margin and capital intensity
of the Canadian broadband services and the American broadband
services segments, key performance indicators used by Cogeco
Communications' management and investors, respectively, to value
its performance and to assess its investment in net capital
expenditures in order to support a certain level of revenue. These
financial measures do not have standard definitions 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 is a
key measure commonly
reported and used in the telecommunications industry,
as it allows comparisons between companies that have
different capital structures and is a more current
measure since it excludes 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's 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's 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's
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'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 Cogeco
Communications' 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's 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
RECONCILIATION
The reconciliation of adjusted EBITDA 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)
|
$
|
$
|
$
|
$
|
Profit for the
period
|
108,456
|
104,994
|
346,376
|
335,597
|
Income taxes
|
29,369
|
32,182
|
79,934
|
104,786
|
Financial
expense
|
45,810
|
34,523
|
136,904
|
103,677
|
Depreciation and
amortization
|
167,552
|
129,369
|
471,492
|
383,001
|
Integration,
restructuring and acquisition costs
|
2,286
|
1,272
|
22,372
|
4,783
|
Adjusted
EBITDA
|
353,473
|
302,340
|
1,057,078
|
931,844
|
|
|
|
|
|
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
|
355,681
|
269,078
|
931,791
|
746,229
|
Amortization of
deferred transaction costs and discounts on long-term
debt
|
2,944
|
2,354
|
8,896
|
6,994
|
Changes in other
non-cash operating activities
|
(51,178)
|
(14,795)
|
(45,472)
|
12,817
|
Income taxes
paid
|
291
|
18,681
|
31,764
|
77,398
|
Current income
taxes
|
(17,651)
|
(7,052)
|
(43,349)
|
(46,668)
|
Interest
paid
|
49,379
|
31,092
|
123,060
|
95,594
|
Financial
expense
|
(45,810)
|
(34,523)
|
(136,904)
|
(103,677)
|
Net capital
expenditures
|
(183,107)
|
(126,745)
|
(467,091)
|
(358,984)
|
Repayment of lease
liabilities
|
(1,595)
|
(1,523)
|
(4,218)
|
(4,345)
|
Free cash
flow
|
108,954
|
136,567
|
398,477
|
425,358
|
|
|
|
|
|
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
|
198,271
|
126,745
|
502,753
|
358,984
|
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
|
183,107
|
126,745
|
467,091
|
358,984
|
|
|
|
|
|
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
|
4,607,365
|
3,329,910
|
Discounts, transaction
costs and other
|
53,894
|
42,745
|
Bank
indebtedness
|
14,830
|
4,460
|
Cash and cash
equivalents, excluding cash with restrictions on use
|
(231,360)
|
(368,434)
|
Net
indebtedness
|
4,444,729
|
3,008,681
|
|
|
|
ABOUT COGECO INC.
Rooted in the communities it serves, Cogeco Inc. (TSX: CGO) is a
growing competitive force in the North American telecommunications
and media sectors with a legacy of 65 years. Through its business
units Cogeco Connexion and Breezeline (formerly Atlantic
Broadband), Cogeco 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. Through Cogeco
Media, it owns and operates 21 radio stations primarily in the
province of Quebec as well as a
news agency. To learn more about Cogeco's 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 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 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's website at
https://corpo.cogeco.com/cgo/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's
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 Inc.