- In the context of its network expansion strategy, Cogeco
added 30,922 homes passed in Canada and the
United States, totalling 101,000 homes passed over the past
nine months;
- The acquisition of oxio expanded Cogeco Connexion's value
proposition by adding a second brand to serve the telecommunication
needs of Canadians;
- Revenue grew by 1.7% compared to the same period of the
prior year to $767.6
million;
- Adjusted EBITDA(1) of $355.5 million increased 0.6% over last
year;
- Profit for the period amounted to $33.3 million, a decrease of 69.3%, while the
loss for the period attributable to owners of the Corporation
amounted to $34.5 million, a decrease
of $72.0 million compared to a profit
last year, due to non-cash impairment charges of $88 million related to the radio operations.
Adjusted profit attributable to owners of the
Corporation(1)(3) remained comparable to last
year;
- Loss per share on a diluted basis was $2.22, a decrease compared to earnings per share
of $2.37 last year, due to the
non-cash impairment charges related to the radio operations.
Adjusted diluted earnings per share(1)(3) rose by 1.3%
to $2.43;
- Net capital expenditures(1)(2) amounted to
$170.3 million, a 7.0% reduction
versus last year. Acquisition of property, plant and equipment
amounted to $190.1 million, a
decrease of 4.1%;
- Free cash flow(1) of $107.4 million decreased by 1.4%, while cash
flows from operating activities decreased by 20.4% to $283.2 million; and
- Declared a quarterly eligible dividend of $0.731 per share, representing a 17.0% increase
over last year.
MONTRÉAL, July 13,
2023 /CNW/ - Today, Cogeco Inc. (TSX: CGO) ("Cogeco"
or the "Corporation") announced its financial results for the third
quarter ended May 31, 2023.
"This quarter, we continued to demonstrate our strong and
consistent execution in our fibre network expansion projects while
remaining focused on delivering high quality product offerings and
distinctive customer service," said Philippe Jetté, President and
Chief Executive Officer of Cogeco.
"We are pleased with the performance of our Canadian
telecommunications business again this quarter, where Internet
customer additions are being driven by solid growth across our
traditional and newly served footprints, as well as from our
recently acquired oxio brand," continued Mr. Jetté.
"Although our U.S. telecommunications business, Breezeline,
continues to face headwinds from the macroeconomic and nationwide
competitive environments, our higher value product mix combined
with cost efficiency initiatives led to a higher adjusted EBITDA
margin over last year and compared to last quarter," added Mr.
Jetté.
"At Cogeco Media, in an industry-wide changing advertising
market, we are developing innovative digital solutions to create a
multi-platform audio content model," continued Mr. Jetté. "Our
listener engagement remained strong across many of our stations
this quarter, including at 98.5 Montréal, where it remained in the
top spot of the Numeris rankings," concluded Mr. Jetté.
Consolidated Financial Highlights
|
Three months ended
May 31
|
2023
|
|
2022
|
|
Change
|
Change in
constant
currency
|
(1)
|
|
(In thousands of
Canadian dollars, except % and per share data)
(unaudited)
|
$
|
|
$
|
|
%
|
%
|
|
|
Revenue
|
767,603
|
|
754,777
|
|
1.7
|
(1.4)
|
|
|
Adjusted EBITDA
(1)
|
355,459
|
|
353,473
|
|
0.6
|
(2.2)
|
|
|
Profit for the
period
|
33,314
|
|
108,456
|
|
(69.3)
|
|
|
|
(Loss) profit
for the period attributable to owners of
the Corporation
|
(34,473)
|
|
37,493
|
|
—
|
|
|
|
Adjusted profit
attributable to owners of the Corporation (1)
(3)
|
37,921
|
|
38,009
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
283,180
|
|
355,681
|
|
(20.4)
|
|
|
|
Free cash flow
(1)
|
107,379
|
|
108,954
|
|
(1.4)
|
(1.1)
|
|
|
Free cash flow,
excluding network expansion projects (1)
|
139,210
|
|
147,613
|
|
(5.7)
|
(6.1)
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
190,121
|
|
198,271
|
|
(4.1)
|
|
|
|
Net capital
expenditures (1)
|
170,258
|
|
183,107
|
|
(7.0)
|
(10.7)
|
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
138,427
|
|
144,448
|
|
(4.2)
|
(8.2)
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings
per share
|
(2.22)
|
|
2.37
|
|
—
|
|
|
|
Adjusted diluted
earnings per share (1) (3)
|
2.43
|
|
2.40
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the third quarter of fiscal 2023:
- Revenue increased by 1.7% to reach $767.6 million. On a constant currency basis,
revenue decreased by 1.4%, driven by declines in the American
telecommunications segment and in the media activities, partly
offset by growth in the Canadian telecommunications segment, which
is further explained as follows:
-
- Canadian telecommunications' revenue increased by 3.2%, mainly
driven by the cumulative effect of high-speed Internet service
additions over the past year, higher revenue per customer and the
oxio acquisition completed on March 3,
2023.
- American telecommunications' revenue decreased by 5.7% on a
constant currency basis (increase of 0.5% as reported), mainly due
to a lower customer base in Ohio
and an overall decline in video and phone service customers, offset
in part by a higher revenue per customer and a better product
mix.
- Revenue in the media activities decreased by 3.2%.
- Adjusted EBITDA increased by 0.6% to reach $355.5 million. On a constant currency basis,
adjusted EBITDA decreased by 2.2%, due to a decline in the American
telecommunications segment, while the Canadian telecommunications
segment remained stable, as further explained below:
-
- Canadian telecommunications adjusted EBITDA remained stable as
its revenue growth was offset by higher operating expenses to drive
customer growth.
- American telecommunications adjusted EBITDA decreased by 2.8%,
or 3.6% in constant currency, mainly resulting from lower revenue
partly offset by reduced operating expenses.
- Profit for the period amounted to $33.3
million, while the loss for the period attributable to
owners of the Corporation amounted to $34.5
million, or $2.22 per diluted
share, compared to a profit of $108.5
million, $37.5 million, and
$2.37 per diluted share,
respectively, in the comparable period of fiscal 2022. The
decreases in profit for the period and profit attributable to
owners of the Corporation resulted mainly from non-cash impairment
charges of $88 million related to the
radio operations, higher financial expense and acquisition,
integration, restructuring and other costs, partly offset by lower
depreciation and amortization expense, income taxes and the
appreciation of the US dollar.
-
- Adjusted profit attributable to owners of the
Corporation(3), was $37.9
million, or $2.43 per diluted
share(3), compared to $38.0
million, or $2.40 per diluted
share, last year.
- Net capital expenditures, which account for network expansion
subsidies, were $170.3 million, a
decrease of 7.0% compared to $183.1
million in the same period of the prior year. In constant
currency, net capital expenditures were $163.5 million, a decrease of 10.7% compared to
last year, mainly due to lower capital expenditures following
reduced spending, mostly in the Canadian telecommunications
segment.
-
- Excluding network expansion projects, net capital expenditures
were $138.4 million, a decrease of
4.2% compared to $144.4 million in
the same period of the prior year. In constant currency, net
capital expenditures excluding network expansion
projects(1) were $132.6
million, a decrease of 8.2% compared to last year.
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States, with unprecedented homes
passed additions of more than 171,000 during fiscal 2022 and the
first nine months of the current fiscal year. These
fibre-to-the-home network expansion projects are increasing the
Corporation's footprint in the provinces of Québec and Ontario and in several areas adjacent to
Breezeline's network in the United
States.
- Acquisition of property, plant and equipment decreased by 4.1%
to $190.1 million, mainly due to
reduced capital spending, mostly in the Canadian telecommunications
segment.
- Free cash flow decreased by 1.4%, or 1.1% in constant currency,
and amounted to $107.4 million,
mainly due to higher financial expense, higher acquisition,
integration, restructuring and other costs and lower adjusted
EBITDA, partly offset by lower net capital expenditures and current
income taxes.
-
- Free cash flow, excluding network expansion projects decreased
by 5.7%, or 6.1% in constant currency, and amounted to $139.2 million.
- Cash flows from operating activities decreased by 20.4% to
reach $283.2 million, driven by a net
inflow in non-cash operating activities of $20.7 million compared to $51.2 million in the comparative period,
resulting mostly from the timing of trade and other payables, as
well as an increase in income taxes and interest paid.
- Spectrum licences were acquired in the 2500 MHz and 3500 MHz
bands in Québec in relation to our plan to offer mobility services
within our operating footprint.
- Cogeco reiterates its fiscal 2023 financial guidelines as
issued on January 12, 2023.
Furthermore, on June 8, 2023, Cogeco
announced that it will provide its fiscal 2024 financial guidelines
when it reports its financial results for the fourth quarter of
fiscal 2023, which is consistent with industry practice.
- At its July 13, 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.
|
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Constant
currency basis, adjusted profit attributable to owners of the
Corporation, net capital expenditures, excluding network expansion
projects, free cash flow and free cash flow, excluding network
expansion projects are non-IFRS financial measures. Change in
constant currency and adjusted diluted earnings per share are
non-IFRS ratios. These indicated terms do not have
standardized definitions prescribed by International Financial
Reporting Standards ("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)
|
Excludes the impact of
non-cash impairment charges, and acquisition, integration,
restructuring and other costs, net of tax and non-controlling
interest.
|
Financial highlights
|
Three and nine
months ended May 31
|
2023
|
2022
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
2023
|
2022
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
|
(In thousands of
Canadian dollars, except percentages and per share
data)
|
$
|
$
|
%
|
%
|
|
$
|
$
|
%
|
%
|
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
767,603
|
754,777
|
1.7
|
(1.4)
|
|
2,314,484
|
2,248,101
|
3.0
|
(0.2)
|
|
|
Adjusted EBITDA
(2)
|
355,459
|
353,473
|
0.6
|
(2.2)
|
|
1,081,004
|
1,057,078
|
2.3
|
(0.7)
|
|
|
Acquisition,
integration, restructuring and other costs
(3)
|
11,377
|
2,286
|
—
|
|
|
21,006
|
22,372
|
(6.1)
|
|
|
|
Impairment of goodwill
and intangible assets
|
88,000
|
—
|
—
|
|
|
88,000
|
—
|
—
|
|
|
|
Profit for the
period
|
33,314
|
108,456
|
(69.3)
|
|
|
259,714
|
346,376
|
(25.0)
|
|
|
|
(Loss) profit for the
period attributable to owners of the Corporation
|
(34,473)
|
37,493
|
—
|
|
|
41,396
|
112,675
|
(63.3)
|
|
|
|
Adjusted profit
attributable to owners of the Corporation (2)
|
37,921
|
38,009
|
(0.2)
|
|
|
116,292
|
117,225
|
(0.8)
|
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
283,180
|
355,681
|
(20.4)
|
|
|
683,844
|
931,791
|
(26.6)
|
|
|
|
Free cash flow
(2)
|
107,379
|
108,954
|
(1.4)
|
(1.1)
|
|
335,193
|
398,477
|
(15.9)
|
(15.3)
|
|
|
Free cash flow,
excluding network expansion projects (2)
|
139,210
|
147,613
|
(5.7)
|
(6.1)
|
|
475,100
|
494,134
|
(3.9)
|
(4.5)
|
|
|
Acquisition of property, plant and
equipment
|
190,121
|
198,271
|
(4.1)
|
|
|
598,803
|
502,753
|
19.1
|
|
|
|
Net capital
expenditures (2)
|
170,258
|
183,107
|
(7.0)
|
(10.7)
|
|
524,432
|
467,091
|
12.3
|
7.3
|
|
|
Net capital
expenditures, excluding network expansion projects
(2)
|
138,427
|
144,448
|
(4.2)
|
(8.2)
|
|
384,525
|
371,434
|
3.5
|
(1.3)
|
|
|
Per share data
(4)
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(2.22)
|
2.38
|
—
|
|
|
2.65
|
7.11
|
(62.7)
|
|
|
|
Diluted
|
(2.22)
|
2.37
|
—
|
|
|
2.64
|
7.07
|
(62.7)
|
|
|
|
Adjusted diluted
(2)
|
2.43
|
2.40
|
1.3
|
|
|
7.41
|
7.35
|
0.8
|
|
|
|
Dividends
|
0.731
|
0.625
|
17.0
|
|
|
2.193
|
1.875
|
17.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
|
May 31,
2023
|
August 31,
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Financial
condition
|
|
|
|
Cash and cash
equivalents
|
365,665
|
379,001
|
|
Total assets
|
9,877,551
|
9,468,025
|
|
Long-term
debt
|
|
|
|
Current
|
43,064
|
340,468
|
|
Non-current
|
5,105,833
|
4,398,142
|
|
Net indebtedness
(2)
|
4,905,659
|
4,545,809
|
|
Equity attributable to
owners of the Corporation
|
907,222
|
919,843
|
|
|
|
|
(1)
|
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 rate of the comparable
periods of the prior year. For the three and nine-month periods
ended May 31, 2022, the average foreign exchange rates used for
translation were 1.2713 USD/CDN and 1.2660 USD/CDN,
respectively.
|
|
(2)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Adjusted
profit attributable to owners of the Corporation, free cash flow,
free cash flow, excluding network expansion projects and net
capital expenditures, excluding network expansion projects are
non-IFRS financial measures. Change in constant currency and
adjusted diluted earnings per share are non-IFRS ratios. Net
indebtedness is a capital management measure. These indicated terms
do not have standardized definitions prescribed by IFRS and,
therefore, may not be comparable to similar measures presented by
other companies. For more information on these financial measures,
please consult the "Non-IFRS and other financial measures" section
of this press release.
|
|
(3)
|
For the three and
nine-month periods ended May 31, 2023, acquisition, integration,
restructuring and other costs resulted mostly from costs related to
the ongoing integration of past acquisitions and from a retroactive
adjustment of $3.3 million recognized during the third quarter of
fiscal 2023, in addition to a $5.1 million adjustment recognized in
the second quarter, both related to the Copyright Board preliminary
conclusions of the 2016-2018 retransmission tariffs, impacting
those years and estimated costs for the following years. For the
three and nine-month periods ended May 31, 2022, 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.
|
|
(4)
|
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
third-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 fiscal 2023 first-quarter
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 (including changing competitive
ecosystems and disruptive competitive strategies adopted by our
competitors), business risks, regulatory risks, technology risks
(including cybersecurity), financial risks (including variations in
currency and interest rates), economic conditions (including
inflation pressuring revenue, 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 third-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 and
nine-month periods ended May 31, 2023, 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 and nine-month periods ended May 31, 2023,
available on SEDAR at www.sedar.com.
Financial measures presented on a constant currency basis for
the three and nine-month periods ended May 31, 2023 are
translated at the average foreign exchange rate of the comparable
periods of the prior year, which were 1.2713 USD/CDN and
1.2660 USD/CDN, respectively.
Constant currency basis and
foreign exchange impact reconciliation
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
767,603
|
|
(23,039)
|
|
744,564
|
|
754,777
|
|
1.7
|
|
(1.4)
|
|
Operating
expenses
|
412,144
|
|
(13,134)
|
|
399,010
|
|
401,304
|
|
2.7
|
|
(0.6)
|
|
Adjusted
EBITDA
|
355,459
|
|
(9,905)
|
|
345,554
|
|
353,473
|
|
0.6
|
|
(2.2)
|
|
Free cash
flow
|
107,379
|
|
370
|
|
107,749
|
|
108,954
|
|
(1.4)
|
|
(1.1)
|
|
Net capital
expenditures
|
170,258
|
|
(6,761)
|
|
163,497
|
|
183,107
|
|
(7.0)
|
|
(10.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
2,314,484
|
|
(71,231)
|
|
2,243,253
|
|
2,248,101
|
|
3.0
|
|
(0.2)
|
|
Operating
expenses
|
1,233,480
|
|
(40,429)
|
|
1,193,051
|
|
1,191,023
|
|
3.6
|
|
0.2
|
|
Adjusted
EBITDA
|
1,081,004
|
|
(30,802)
|
|
1,050,202
|
|
1,057,078
|
|
2.3
|
|
(0.7)
|
|
Free cash
flow
|
335,193
|
|
2,353
|
|
337,546
|
|
398,477
|
|
(15.9)
|
|
(15.3)
|
|
Net capital
expenditures
|
524,432
|
|
(23,439)
|
|
500,993
|
|
467,091
|
|
12.3
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
373,743
|
|
—
|
|
373,743
|
|
362,072
|
|
3.2
|
|
3.2
|
|
Operating
expenses
|
177,794
|
|
(722)
|
|
177,072
|
|
166,082
|
|
7.1
|
|
6.6
|
|
Adjusted
EBITDA
|
195,949
|
|
722
|
|
196,671
|
|
195,990
|
|
—
|
|
0.3
|
|
Net capital
expenditures
|
84,415
|
|
(1,566)
|
|
82,849
|
|
100,730
|
|
(16.2)
|
|
(17.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
1,114,161
|
|
—
|
|
1,114,161
|
|
1,079,442
|
|
3.2
|
|
3.2
|
|
Operating
expenses
|
521,534
|
|
(2,058)
|
|
519,476
|
|
502,575
|
|
3.8
|
|
3.4
|
|
Adjusted
EBITDA
|
592,627
|
|
2,058
|
|
594,685
|
|
576,867
|
|
2.7
|
|
3.1
|
|
Net capital
expenditures
|
281,036
|
|
(8,477)
|
|
272,559
|
|
235,964
|
|
19.1
|
|
15.5
|
|
|
|
|
|
|
|
|
|
|
|
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
368,042
|
|
(23,039)
|
|
345,003
|
|
366,046
|
|
0.5
|
|
(5.7)
|
|
Operating
expenses
|
197,273
|
|
(12,412)
|
|
184,861
|
|
199,977
|
|
(1.4)
|
|
(7.6)
|
|
Adjusted
EBITDA
|
170,769
|
|
(10,627)
|
|
160,142
|
|
166,069
|
|
2.8
|
|
(3.6)
|
|
Net capital
expenditures
|
82,923
|
|
(5,195)
|
|
77,728
|
|
81,424
|
|
1.8
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
1,126,570
|
|
(71,231)
|
|
1,055,339
|
|
1,095,766
|
|
2.8
|
|
(3.7)
|
|
Operating
expenses
|
607,237
|
|
(38,371)
|
|
568,866
|
|
584,143
|
|
4.0
|
|
(2.6)
|
|
Adjusted
EBITDA
|
519,333
|
|
(32,860)
|
|
486,473
|
|
511,623
|
|
1.5
|
|
(4.9)
|
|
Net capital
expenditures
|
236,422
|
|
(14,962)
|
|
221,460
|
|
227,829
|
|
3.8
|
|
(2.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the
Corporation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2023
|
2022
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
(Loss) profit for
the period attributable to owners of the Corporation
|
(34,473)
|
37,493
|
41,396
|
112,675
|
|
Impairment of goodwill
and intangible assets
|
88,000
|
—
|
88,000
|
—
|
|
Acquisition,
integration, restructuring and other costs
|
11,377
|
2,286
|
21,006
|
22,372
|
|
Tax impact for the
above items
|
(21,386)
|
(594)
|
(23,938)
|
(5,750)
|
|
Non-controlling
interest impact for the above items
|
(5,597)
|
(1,176)
|
(10,172)
|
(12,072)
|
|
Adjusted profit
attributable to owners of the Corporation
|
37,921
|
38,009
|
116,292
|
117,225
|
|
|
|
|
|
Free cash flow reconciliation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2023
|
2022
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Cash flows from
operating activities
|
283,180
|
355,681
|
683,844
|
931,791
|
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
3,353
|
2,944
|
9,460
|
8,896
|
|
Changes in other
non-cash operating activities
|
(20,729)
|
(51,178)
|
115,392
|
(45,472)
|
|
Income taxes
paid
|
19,166
|
291
|
89,778
|
31,764
|
|
Current income
taxes
|
(5,828)
|
(17,651)
|
(26,450)
|
(43,349)
|
|
Interest
paid
|
64,507
|
49,379
|
176,777
|
123,060
|
|
Financial
expense
|
(64,300)
|
(45,810)
|
(183,812)
|
(136,904)
|
|
Net capital
expenditures
|
(170,258)
|
(183,107)
|
(524,432)
|
(467,091)
|
|
Repayment of lease
liabilities
|
(1,712)
|
(1,595)
|
(5,364)
|
(4,218)
|
|
Free cash
flow
|
107,379
|
108,954
|
335,193
|
398,477
|
|
|
|
(1)
|
Included within
financial expense.
|
Net capital expenditures reconciliation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2023
|
2022
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Acquisition of
property, plant and equipment
|
190,121
|
198,271
|
598,803
|
502,753
|
|
Subsidies received in
advance recognized as a reduction of the cost of property, plant
and equipment during the period
|
(19,863)
|
(15,164)
|
(74,371)
|
(35,662)
|
|
Net capital
expenditures
|
170,258
|
183,107
|
524,432
|
467,091
|
|
|
|
|
|
Adjusted EBITDA reconciliation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2023
|
2022
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Profit for the
period
|
33,314
|
108,456
|
259,714
|
346,376
|
|
Income taxes
|
2,271
|
29,369
|
60,552
|
79,934
|
|
Financial
expense
|
64,300
|
45,810
|
183,812
|
136,904
|
|
Impairment of goodwill
and intangible assets
|
88,000
|
—
|
88,000
|
—
|
|
Depreciation and
amortization
|
156,197
|
167,552
|
467,920
|
471,492
|
|
Acquisition,
integration, restructuring and other costs
|
11,377
|
2,286
|
21,006
|
22,372
|
|
Adjusted
EBITDA
|
355,459
|
353,473
|
1,081,004
|
1,057,078
|
|
|
|
|
|
Net capital expenditures and free
cash flow excluding network expansion projects
reconciliations
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Net capital
expenditures
|
170,258
|
|
(6,761)
|
|
163,497
|
|
183,107
|
|
(7.0)
|
|
(10.7)
|
|
Net capital
expenditures in connection with network expansion
projects
|
31,831
|
|
(976)
|
|
30,855
|
|
38,659
|
|
(17.7)
|
|
(20.2)
|
|
Net capital
expenditures, excluding network expansion projects
|
138,427
|
|
(5,785)
|
|
132,642
|
|
144,448
|
|
(4.2)
|
|
(8.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Net capital
expenditures
|
524,432
|
|
(23,439)
|
|
500,993
|
|
467,091
|
|
12.3
|
|
7.3
|
|
Net capital
expenditures in connection with network expansion
projects
|
139,907
|
|
(5,660)
|
|
134,247
|
|
95,657
|
|
46.3
|
|
40.3
|
|
Net capital
expenditures, excluding network expansion projects
|
384,525
|
|
(17,779)
|
|
366,746
|
|
371,434
|
|
3.5
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Free cash
flow
|
107,379
|
|
370
|
|
107,749
|
|
108,954
|
|
(1.4)
|
|
(1.1)
|
|
Net capital
expenditures in connection with network expansion
projects
|
31,831
|
|
(976)
|
|
30,855
|
|
38,659
|
|
(17.7)
|
|
(20.2)
|
|
Free cash flow,
excluding network expansion projects
|
139,210
|
|
(606)
|
|
138,604
|
|
147,613
|
|
(5.7)
|
|
(6.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Free cash
flow
|
335,193
|
|
2,353
|
|
337,546
|
|
398,477
|
|
(15.9)
|
|
(15.3)
|
|
Net capital
expenditures in connection with network expansion
projects
|
139,907
|
|
(5,660)
|
|
134,247
|
|
95,657
|
|
46.3
|
|
40.3
|
|
Free cash flow,
excluding network expansion projects
|
475,100
|
|
(3,307)
|
|
471,793
|
|
494,134
|
|
(3.9)
|
|
(4.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
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 sector,
serving 1.6 million residential and business customers. Its Cogeco
Communications Inc. subsidiary provides Internet, video and
phone services in the provinces of Québec and Ontario as well as in thirteen states in
the United States through its
business units Cogeco Connexion and Breezeline. 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
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:
|
Friday, July 14, 2023
at 11:00 a.m. (EDT)
|
|
|
|
|
|
The conference call
will be available on Cogeco's website at
https://corpo.cogeco.com/cgo/en/investors/investor-relations/.
Financial analysts will be able to access the conference call and
ask questions. Media representatives may attend as listeners only.
The conference replay 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
10 minutes before the start of the conference:
|
|
|
|
|
|
Local - Toronto: 1
416-764-8658
|
|
|
Toll Free - North
America: 1 888-886-7786
|
|
To join this conference call, 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.
