- Revenue increased by 14.0% (12.1% in constant currency (1)) compared to the same period of the prior year to reach $746.9 million;
- Adjusted EBITDA (1) reached $348.5 million, an increase of 18.7% (16.9% in constant currency (1));
- Profit for the period amounted to $111.4 million, an increase of 7.7%;
- Earnings per share on a diluted basis was $2.31, an increase of 11.6%;
- Net capital expenditures (1) (2) were $224.8 million (or $163.1 million excluding network expansion projects (1)), compared to $175.7 million in the same period of the prior year;
- Acquisition of property, plant and equipment amounted to $244.9 million, an increase of 35.9%;
- Free cash flow (1) amounted to $34.7 million, a decrease of 52.4% (49.9% in constant currency (1)), following accelerated network expansion activities. Free cash flow, excluding network expansion projects (1) was $96.3 million;
- Cash flows from operating activities increased by 15.2% to reach $326.6 million;
- Purchased and cancelled 31,500 Cogeco subordinate voting shares for a total consideration of $2.2 million; and
- A quarterly eligible dividend of $0.731 was declared, compared to $0.625 per share last year, an increase of 17%.
MONTRÉAL, Oct. 27, 2022 /CNW Telbec/ - Today, Cogeco Inc. (TSX: CGO) ("Cogeco" or the "Corporation") announced its financial results for the fourth quarter ended August 31, 2022, in accordance with International Financial Reporting Standards ("IFRS").
OPERATING RESULTS
For the fourth quarter of fiscal 2022:
- Revenue increased by 14.0% to reach $746.9 million. On a constant currency basis, revenue increased by 12.1%, mainly explained as follows:
- American telecommunications' revenue increased by 32.2% (27.6% in constant currency), mainly resulting from the Ohio broadband systems acquisition completed on September 1, 2021 and organic revenue growth driven by a higher value product mix.
- Internet service customers as at August 31, 2022 compared to the same date of the prior year increased by 36% (3) in the U.S., reflecting the Ohio broadband systems acquisition completed on September 1, 2021 and 2% organic growth (3)
- Canadian telecommunications' revenue increased by 1.1% as reported and in constant currency, mostly as a result of organic revenue growth.
- Internet service customers (4) as at August 31, 2022 compared to the same date of the prior year increased by 2% in Canada due to organic growth
- Revenue in the media activities decreased by 4.1%, as the radio advertising market continued to be impacted by supply chain disruptions limiting other customers' businesses.
- Adjusted EBITDA increased by 18.7% to reach $348.5 million. On a constant currency basis, adjusted EBITDA increased by 16.9%, mainly explained as follows:
- American telecommunications adjusted EBITDA increased by 35.4% (30.7% in constant currency), mainly resulting from the Ohio broadband systems acquisition, a higher margin driven by the organic revenue growth, partly offset by higher marketing and advertising costs to drive and support customer growth. Organic adjusted EBITDA growth in constant currency (1) was 11.6%.
- Canadian telecommunications adjusted EBITDA increased by 6.4% (6.7% in constant currency), mainly resulting from lower marketing expenses and certain year-end adjustments.
- Profit for the period amounted to $111.4 million, of which $36.4 million, or $2.31 per diluted share, was attributable to owners of the Corporation compared to $103.4 million, $33.1 million, and $2.07 per diluted 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 financial expense, depreciation and amortization expense, and acquisition, integration, restructuring and other costs.
- Net capital expenditures were $224.8 million, compared to $175.7 million in the same period of the prior year, following accelerated network expansion activities in the U.S. and Canada. Excluding network expansion projects, net capital expenditures amounted to $163.1 million.
- Network expansion projects added 70,000 homes passed during the year representing an increase of approximately 4% (3) in the U.S. and 2% (3) in Canada. Those fibre-to-the-home network expansion are setting the Corporation for further growth in subscribers and profitability in years to come.
- Acquisition of property, plant and equipment increased by 35.9% to $244.9 million, mainly due to network expansion projects in both countries.
- Free cash flow decreased by 52.4% (49.9% in constant currency) and amounted to $34.7 million, mainly due to higher net capital expenditures driven by increased activity related to network expansions in both countries, and the increases in financial expense, acquisition, integration, restructuring and other costs, and current income taxes, partly offset by higher adjusted EBITDA. Free cash flow, excluding network expansion projects was $96.3 million;
- Cash flows from operating activities increased by 15.2% to reach $326.6 million, mainly resulting from higher adjusted EBITDA and lower income taxes paid, partly offset by higher trade and other payables, and the increases in acquisition, integration, restructuring and other costs, and interest paid.
- Cogeco purchased and cancelled 31,500 subordinate voting shares for a total consideration of $2.2 million.
- Cogeco maintains its fiscal 2023 financial guidelines as issued on July 13, 2022.
- At its October 27, 2022 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 last year.
"We are pleased with Cogeco's overall performance which is in line with our financial projections for fiscal 2022, despite the current challenging economic environment," said Philippe Jetté, President and Chief Executive Officer of Cogeco Inc.
"Our Canadian telecommunications business unit, Cogeco Connexion, performed well during the quarter," Mr. Jetté noted. "The quarter saw continued organic growth of our Internet service customer base as well as the implementation of several of our network expansion projects, mainly in Québec, and the announcement of new projects that will connect more than 13,800 homes and businesses as part of the Government of Ontario's Accelerated High Speed Internet Program."
"In the U.S., Breezeline reported good results in the latest quarter, consistent with our expectations," Mr. Jetté added. "Performance was strong within our networks outside of Ohio, driven by organic growth in our Internet service customers. Additionally, we continued extending fibre-to-the-home networks to communities in New Hampshire and West Virginia, adjacent to our existing operations. Within Ohio, the transition of the customer base onto our Breezeline platform affected our performance in this region. We are now focussing on running the Ohio business under the Breezeline brand name and will be rolling out our IPTV product in this market by the end of the calendar year."
"As for our radio broadcast operations, while the market remains challenging, Cogeco Media has continued to perform well in the ratings. Several of our radio stations topped the charts, including 98.5, which remains Canada's most popular radio station," Mr. Jetté continued. "Our efforts to develop new advertiser niches are beginning to produce results."
"Last week's decision from the Canadian Radio-television and Telecommunications Commission (CRTC) regarding the terms and conditions under which regional players such as Cogeco will be able to access the mobile networks of incumbents is a positive step in the implementation of the Mobile Virtual Network Operator (MVNO) regulatory framework. The CRTC has denied many unreasonable terms and conditions proposed by incumbents which would have rendered the MVNO regulatory regime ineffective. The CRTC has also determined that eligibility for the MVNO access service is contingent on being a commercial mobile wireless operator somewhere in Canada and this new requirement will need to be factored into our planning, as Cogeco has not yet launched a mobile wireless operation."
"Looking ahead, we will start adding new Internet customers in fiscal 2023 in areas where we have been investing in network expansion, with contributions to adjusted EBITDA and free cash flow from this customer base expected to begin flowing through in fiscal 2024 and beyond. The Corporation announced a further 17% increase in its dividend today, reflecting its confidence in our growth strategy and outlook."
"Regarding our ESG practices, once again this year Cogeco was awarded Imagine Canada's Caring Company certification, which recognizes outstanding leadership in community engagement and social responsibility in this country," Mr. Jetté stated. "We also recently held our second 1Cogeco Community Involvement Day, an annual company-wide initiative that gives employees an opportunity to engage in local environmental initiatives to support our communities and promote climate action."
"The year 2022 marks Cogeco's 65th anniversary and I am very proud of how far we have come since our company's founding. More than ever, we are in an excellent position to pursue our strategy for sustainable and inclusive growth," concluded Mr. Jetté.
OPERATING ENVIRONMENT
The current global economic and political instability has resulted in rising inflation and interest rates 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 continue to put pressure on revenue, as some customers seek ways to reduce their monthly spending, and on the costs to deliver our services.
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 and a return to the workplace. Although we have conducted our operations normally during the recent quarters, we 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 were spending less time commuting in their cars, which had negatively impacted listening hours. While the market remains challenging, Cogeco Media continues to manage its operating expenses tightly, 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. Net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects, are non-IFRS financial measures. Constant currency basis and organic adjusted EBITDA growth in constant currency 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. |
||
(3) |
Calculated as a percentage of growth compared to August 31, 2021. Organic growth is calculated by excluding additions resulting from acquisitions. Homes passed at acquisition date have been adjusted upwards by approximately 19,000 following the migration of the customer management and billing systems in Ohio in late May 2022. This change has been applied retrospectively to the comparative figures. |
||
(4) |
During the fourth quarter of fiscal 2022, the Corporation modified its definition of Internet service customers in order to be consistent with industry practices. As per the new definition, Internet service customers include only customers who have their Internet service installed, operated and billed directly by the Corporation. The previous definition also included wholesale Internet customers, which is applicable only in Canada. This change has been applied retrospectively to the comparative figures. |
||
FINANCIAL HIGHLIGHTS
Three months ended August 31, |
Years ended August 31, |
|||||||||||
2022 |
2021 |
(1) |
Change |
Change in constant |
(2) |
2022 |
2021 |
(1) |
Change |
Change in constant |
(2) |
|
(In thousands of Canadian dollars, except percentages and |
$ |
$ |
% |
% |
$ |
$ |
% |
% |
||||
Operations |
||||||||||||
Revenue |
746,911 |
655,074 |
14.0 |
12.1 |
2,995,012 |
2,603,845 |
15.0 |
14.9 |
||||
Adjusted EBITDA (3) |
348,510 |
293,624 |
18.7 |
16.9 |
1,405,588 |
1,225,468 |
14.7 |
14.7 |
||||
Acquisition, integration, restructuring and other costs (4) |
12,657 |
3,961 |
— |
35,029 |
8,744 |
— |
||||||
Profit for the period |
111,379 |
103,418 |
7.7 |
457,755 |
439,015 |
4.3 |
||||||
Profit for the period attributable to owners of the Corporation |
36,433 |
33,082 |
10.1 |
149,108 |
141,856 |
5.1 |
||||||
Cash flow |
||||||||||||
Cash flows from operating activities |
326,636 |
283,538 |
15.2 |
1,258,427 |
1,029,767 |
22.2 |
||||||
Free cash flow (3) |
34,704 |
72,915 |
(52.4) |
(49.9) |
433,181 |
498,273 |
(13.1) |
(12.4) |
||||
Acquisition of property, plant and equipment |
244,855 |
180,192 |
35.9 |
747,608 |
539,176 |
38.7 |
||||||
Net capital expenditures (1) (3) |
224,775 |
175,718 |
27.9 |
24.8 |
691,866 |
534,702 |
29.4 |
28.7 |
||||
Financial condition |
||||||||||||
Cash and cash equivalents |
379,001 |
551,968 |
(31.3) |
|||||||||
Total assets |
9,468,025 |
7,536,313 |
25.6 |
|||||||||
Long-term debt |
||||||||||||
Current |
340,468 |
261,970 |
30.0 |
|||||||||
Non-current |
4,398,142 |
3,067,940 |
43.4 |
|||||||||
Net indebtedness (3) |
4,545,809 |
3,008,681 |
51.1 |
|||||||||
Equity attributable to owners of the Corporation |
919,843 |
816,658 |
12.6 |
|||||||||
Per share data (5) |
||||||||||||
Earnings per share |
||||||||||||
Basic |
2.32 |
2.08 |
11.5 |
9.43 |
8.92 |
5.7 |
||||||
Diluted |
2.31 |
2.07 |
11.6 |
9.37 |
8.87 |
5.6 |
||||||
Dividends |
0.625 |
0.545 |
14.7 |
2.50 |
2.18 |
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-month period and year ended August 31, 2021, the average foreign exchange rates used for translation were 1.2450 USD/CDN and 1.2691 USD/CDN, respectively. |
(3) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Free cash flow is a non-IFRS financial measure. 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 and year ended August 31, 2022, acquisition, integration, restructuring and other costs resulted mostly from the ongoing integration of the Ohio broadband systems, from restructuring costs associated with organizational changes during the fourth quarter of fiscal 2022 within the Canadian telecommunications segment, resulting in cost optimization, as well as from costs associated with configuration and customization related to cloud computing arrangements. For the three-month period and year ended August 31, 2021, acquisition, integration, restructuring and other costs resulted mostly from costs incurred in connection with the acquisition, completed on December 14, 2020, and integration of DERYtelecom, and due diligence costs and legal fees related to the acquisition of the Ohio broadband systems, which was completed on September 1, 2021. |
(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" and "Fiscal 2023 financial guidelines" sections of the Corporation's 2022 annual Management's Discussion and Analysis ("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 caused by economic and geopolitical instability resulting from the war in Ukraine and other contributing factors, increasing transportation lead times, scarcity and shortage of input materials 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 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" section of the Corporation's 2022 annual 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 MD&A included in the Corporation's 2022 Annual Report, the Corporation's consolidated financial statements and the notes thereto prepared in accordance with the International Financial Reporting Standards ("IFRS") for the year ended August 31, 2022.
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 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 year ended August 31, 2022, available on SEDAR at www.sedar.com.
CONSTANT CURRENCY BASIS AND FOREIGN EXCHANGE IMPACT RECONCILIATION
Consolidated
Change |
|||||||||||
Three months ended August 31, |
2022 |
Foreign |
2022 in constant |
(1) |
2021 |
Actual |
In constant |
||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
746,911 |
(12,518) |
734,393 |
655,074 |
14.0 |
12.1 |
|||||
Operating expenses |
398,401 |
(7,346) |
391,055 |
361,450 |
10.2 |
8.2 |
|||||
Adjusted EBITDA |
348,510 |
(5,172) |
343,338 |
293,624 |
18.7 |
16.9 |
|||||
Free cash flow |
34,704 |
1,825 |
36,529 |
72,915 |
(52.4) |
(49.9) |
|||||
Net capital expenditures |
224,775 |
(5,434) |
219,341 |
175,718 |
27.9 |
24.8 |
|||||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of the comparable period of fiscal 2021 which was 1.2450 USD/CDN. |
Change |
|||||||||||
Years ended August 31, |
2022 |
Foreign |
2022 in constant |
(1) |
2021 |
Actual |
In constant |
||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
2,995,012 |
(2,881) |
2,992,131 |
2,603,845 |
15.0 |
14.9 |
|||||
Operating expenses |
1,589,424 |
(2,460) |
1,586,964 |
1,378,377 |
15.3 |
15.1 |
|||||
Adjusted EBITDA |
1,405,588 |
(421) |
1,405,167 |
1,225,468 |
14.7 |
14.7 |
|||||
Free cash flow |
433,181 |
3,524 |
436,705 |
498,273 |
(13.1) |
(12.4) |
|||||
Net capital expenditures |
691,866 |
(3,876) |
687,990 |
534,702 |
29.4 |
28.7 |
|||||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of fiscal 2021, which was 1.2691 USD/CDN. |
Canadian telecommunications segment
Change |
|||||||||||
Three months ended August 31, |
2022 |
Foreign |
2022 in constant |
(1) |
2021 |
Actual |
In constant |
||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
360,834 |
— |
360,834 |
356,850 |
1.1 |
1.1 |
|||||
Operating expenses |
163,157 |
(527) |
162,630 |
171,128 |
(4.7) |
(5.0) |
|||||
Adjusted EBITDA |
197,677 |
527 |
198,204 |
185,722 |
6.4 |
6.7 |
|||||
Net capital expenditures |
100,140 |
(1,305) |
98,835 |
76,342 |
31.2 |
29.5 |
|||||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of the comparable period of fiscal 2021 which was 1.2450 USD/CDN. |
Change |
|||||||||||
Years ended August 31, |
2022 |
Foreign |
2022 in constant |
(1) |
2021 |
Actual |
In constant |
||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
1,440,276 |
— |
1,440,276 |
1,393,097 |
3.4 |
3.4 |
|||||
Operating expenses |
665,732 |
(374) |
665,358 |
642,568 |
3.6 |
3.5 |
|||||
Adjusted EBITDA |
774,544 |
374 |
774,918 |
750,529 |
3.2 |
3.2 |
|||||
Net capital expenditures |
336,104 |
(1,500) |
334,604 |
256,636 |
31.0 |
30.4 |
|||||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of fiscal 2021, which was 1.2691 USD/CDN. |
American telecommunications segment
Change |
|||||||||||
Three months ended August 31, |
2022 |
Foreign |
2022 in constant |
(1) |
2021 |
Actual |
In constant |
||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
364,612 |
(12,518) |
352,094 |
275,834 |
32.2 |
27.6 |
|||||
Operating expenses |
199,561 |
(6,819) |
192,742 |
153,903 |
29.7 |
25.2 |
|||||
Adjusted EBITDA |
165,051 |
(5,699) |
159,352 |
121,931 |
35.4 |
30.7 |
|||||
Net capital expenditures |
120,347 |
(4,129) |
116,218 |
96,989 |
24.1 |
19.8 |
|||||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of the comparable period of fiscal 2021 which was 1.2450 USD/CDN. |
Change |
|||||||||||
Years ended August 31, |
2022 |
Foreign |
2022 in constant |
(1) |
2021 |
Actual |
In constant |
||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
1,460,378 |
(2,881) |
1,457,497 |
1,117,356 |
30.7 |
30.4 |
|||||
Operating expenses |
783,704 |
(2,086) |
781,618 |
605,856 |
29.4 |
29.0 |
|||||
Adjusted EBITDA |
676,674 |
(795) |
675,879 |
511,500 |
32.3 |
32.1 |
|||||
Net capital expenditures |
348,176 |
(2,376) |
345,800 |
271,474 |
28.3 |
27.4 |
|||||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of fiscal 2021, which was 1.2691 USD/CDN. |
ORGANIC REVENUE GROWTH IN CONSTANT CURRENCY RECONCILIATION
Three months ended August 31, |
|||||||||
Fiscal 2022 in constant |
Impact of |
Fiscal 2022 |
Fiscal 2021 |
Organic revenue in constant |
|||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
||||
Canadian telecommunications |
360,834 |
— |
360,834 |
356,850 |
1.1 |
||||
American telecommunications |
352,094 |
62,737 |
289,357 |
275,834 |
4.9 |
||||
Other |
21,465 |
— |
21,465 |
22,390 |
(4.1) |
||||
734,393 |
62,737 |
671,656 |
655,074 |
2.5 |
|||||
ORGANIC ADJUSTED EBITDA IN CONSTANT CURRENCY RECONCILIATION
Three months ended August 31, |
|||||||||
Fiscal 2022 in constant |
Impact of |
Fiscal 2022 |
Fiscal 2021 |
Organic adjusted in constant |
|||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
||||
Canadian telecommunications |
198,204 |
— |
198,204 |
185,722 |
6.7 |
||||
American telecommunications |
159,352 |
23,223 |
136,129 |
121,931 |
11.6 |
||||
Corporate and eliminations |
(15,654) |
— |
(15,654) |
(17,083) |
(8.4) |
||||
Other |
1,436 |
— |
1,436 |
3,054 |
(53.0) |
||||
343,338 |
23,223 |
320,115 |
293,624 |
9.0 |
|||||
FREE CASH FLOW RECONCILIATION
Three months ended August 31, |
Years ended August 31, |
|||
2022 |
2021 |
2022 |
2021 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Cash flows from operating activities |
326,636 |
283,538 |
1,258,427 |
1,029,767 |
Amortization of deferred transaction costs and discounts on long-term debt (1) |
2,992 |
2,361 |
11,888 |
9,355 |
Changes in other non-cash operating activities |
(36,411) |
(48,187) |
(81,883) |
(35,370) |
Income taxes paid |
7,404 |
25,072 |
39,168 |
102,470 |
Current income taxes |
(27,362) |
(20,892) |
(70,711) |
(67,560) |
Interest paid |
40,603 |
32,351 |
163,663 |
127,945 |
Financial expense |
(53,010) |
(24,535) |
(189,914) |
(128,212) |
Net capital expenditures |
(224,775) |
(175,718) |
(691,866) |
(534,702) |
Repayment of lease liabilities |
(1,373) |
(1,075) |
(5,591) |
(5,420) |
Free cash flow |
34,704 |
72,915 |
433,181 |
498,273 |
(1) |
Included within financial expense. |
NET CAPITAL EXPENDITURES RECONCILIATION
Three months ended August 31, |
Years ended August 31, |
|||
2022 |
2021 |
2022 |
2021 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Acquisition of property, plant and equipment |
244,855 |
180,192 |
747,608 |
539,176 |
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period |
(20,080) |
(4,474) |
(55,742) |
(4,474) |
Net capital expenditures |
224,775 |
175,718 |
691,866 |
534,702 |
ADJUSTED EBITDA RECONCILIATION
Three months ended August 31, |
Years ended August 31, |
|||
2022 |
2021 |
2022 |
2021 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Profit for the period |
111,379 |
103,418 |
457,755 |
439,015 |
Income taxes |
17,353 |
29,456 |
97,287 |
134,242 |
Financial expense |
53,010 |
24,535 |
189,914 |
128,212 |
Depreciation and amortization |
154,111 |
132,254 |
625,603 |
515,255 |
Acquisition, integration, restructuring and other costs |
12,657 |
3,961 |
35,029 |
8,744 |
Adjusted EBITDA |
348,510 |
293,624 |
1,405,588 |
1,225,468 |
NET CAPITAL EXPENDITURES AND FREE CASH FLOW EXCLUDING NETWORK EXPANSION PROJECTS RECONCILIATIONS
Net capital expenditures
Three months ended, |
Fiscal 2022 |
Foreign |
Fiscal 2022 in constant |
(1) |
|||||
Nov. 30 |
Feb. 28 |
May 31 |
Aug. 31 |
||||||
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||
Net capital expenditures |
141,509 |
142,475 |
183,107 |
224,775 |
691,866 |
(3,876) |
687,990 |
||
Net capital expenditures in connection with network expansion projects |
20,016 |
36,982 |
38,659 |
61,632 |
157,289 |
(1,178) |
156,111 |
||
Net capital expenditures, excluding network expansion projects |
121,493 |
105,493 |
144,448 |
163,143 |
534,577 |
(2,698) |
531,879 |
||
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of fiscal 2021, which was 1.2691 USD/CDN. |
Free cash flow
Three months ended, |
Fiscal 2022 |
Foreign |
Fiscal 2022 in constant |
(1) |
||||
Nov. 30 |
Feb. 28 |
May 31 |
Aug. 31 |
|||||
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|
Free cash flow |
135,820 |
153,703 |
108,954 |
34,704 |
433,181 |
3,524 |
436,705 |
|
Net capital expenditures in connection with network expansion projects |
20,016 |
36,982 |
38,659 |
61,632 |
157,289 |
(1,178) |
156,111 |
|
Free cash flow, excluding network expansion projects |
155,836 |
190,685 |
147,613 |
96,336 |
590,470 |
2,346 |
592,816 |
|
(1) |
Fiscal 2022 in constant currency is translated at the average foreign exchange rate of fiscal 2021, which was 1.2691 USD/CDN. |
ADDITIONAL INFORMATION
Additional information relating to the Corporation, including its Annual Information Form, is available on the SEDAR website at www.sedar.com or 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 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 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).
For information:
Investors
Patrice Ouimet
Senior Vice President and Chief Financial Officer
Cogeco Inc.
Tel.: 514-764-4700
[email protected]
Media
Marie-Hélène Labrie
Senior Vice President and Chief Public Affairs, Communications and Strategy Officer
Cogeco Inc.
Tel.: 514-764-4700
[email protected]
Conference Call: |
Friday, October 28, 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 |
|
Please use the following dial-in number to have access to the conference call 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, |
SOURCE Cogeco Inc.
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