- Revenue increased by 14.7% (12.7% in constant currency
(1)) compared to the same period of the prior year to
reach $725.4 million;
- Adjusted EBITDA (1) reached $347.1 million, an increase of 19.4% (17.7% in
constant currency (1));
- Profit for the period amounted to $111.8 million, an increase of 8.1%;
- Earnings per share on a diluted basis was $2.28, an increase of 12.3%;
- Net capital expenditures (1) (2) and capital
intensity (1) were $223.5
million and 30.8%, respectively (or $161.9 million and 22.3% excluding network
expansion projects (1), respectively), compared to
$175.2 million and 27.7%,
respectively, in the same period of the prior year;
- Acquisition of property, plant and equipment amounted to
$243.6 million, an increase of
35.6%;
- Free cash flow (1) amounted to $34.5 million, a decrease of 51.8% (49.2% in
constant currency (1)), following accelerated network
expansion activities. Free cash flow, excluding network
expansion projects (1) was $96.1
million;
- Cash flows from operating activities increased by 13.4% to
reach $319.1 million;
- Purchased and cancelled 390,800 Cogeco Communications
subordinate voting shares for a total consideration of $34.5 million; and
- A quarterly eligible dividend of $0.776 per share was declared, compared to
$0.705 per share last year, an
increase of 10%.
- ◦ For fiscal 2022, free cash flow dividend payout ratio
(1) was 31% (or 22% excluding excluding network
expansion projects (1))
MONTRÉAL, Oct. 27,
2022 /CNW Telbec/ - Today, Cogeco Communications Inc.
(TSX: CCA) ("Cogeco Communications" 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 14.7% to reach $725.4 million. On a constant currency basis,
revenue increased by 12.7%, 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
- Adjusted EBITDA increased by 19.4% to reach $347.1 million. On a constant currency basis,
adjusted EBITDA increased by 17.7%, 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 $111.8
million, of which $104.9
million, or $2.28 per diluted
share, was attributable to owners of the Corporation compared to
$103.4 million, $96.2 million, and $2.03 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 and capital intensity were
$223.5 million and 30.8%,
respectively, compared to $175.2
million and 27.7% 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 and capital intensity
amounted to $161.9 million and 22.3%,
respectively.
-
- 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 35.6%
to $243.6 million, mainly due to
network expansion projects in both countries.
- Free cash flow decreased by 51.8% (49.2% in constant currency)
and amounted to $34.5 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 $96.1 million;
- Cash flows from operating activities increased by 13.4% to
reach $319.1 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 Communications purchased and cancelled 390,800
subordinate voting shares for a total consideration of $34.5 million.
- Cogeco Communications maintains its fiscal 2023 financial
guidelines as issued on July 13,
2022.
- At its October 27, 2022 meeting,
the Board of Directors of Cogeco Communications declared a
quarterly eligible dividend of $0.776
per share, an increase of 10% compared to $0.705 per share last year.
|
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Capital
intensity is a supplementary financial measure. 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, organic
adjusted EBITDA growth in constant currency, capital intensity,
excluding network expansion projects, free cash flow dividend
payout ratio and free cash flow, excluding network expansion
projects, dividend payout ratio 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.
|
"We are pleased with Cogeco Communications' 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
Communications 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."
"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 10% 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.
The Corporation's results discussed herein may not be indicative
of future operational trends and financial performance. Please
refer to the "Forward-looking statements" section.
FINANCIAL HIGHLIGHTS
|
|
Three months ended
August 31,
|
Years ended August
31,
|
|
2022
|
2021
|
(1)
|
Change
|
Change in
constant
currency
|
(2)
(3)
|
2022
|
2021
|
(1)
|
Change
|
Changes in
constant
currency
|
(2)
(3)
|
(In thousands of
Canadian dollars, except percentages and per share
data)
|
$
|
$
|
|
%
|
%
|
|
$
|
$
|
|
%
|
%
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
725,446
|
632,684
|
|
14.7
|
12.7
|
|
2,900,654
|
2,510,453
|
|
15.5
|
15.4
|
|
Adjusted EBITDA
(3)
|
347,074
|
290,570
|
|
19.4
|
17.7
|
|
1,393,062
|
1,205,656
|
|
15.5
|
15.5
|
|
Adjusted EBITDA margin
(3)
|
47.8 %
|
45.9 %
|
|
|
|
|
48.0 %
|
48.0 %
|
|
|
|
|
Acquisition,
integration, restructuring and other costs
(4)
|
12,593
|
3,974
|
|
—
|
|
|
34,942
|
8,744
|
|
—
|
|
|
Profit for the
period
|
111,829
|
103,406
|
|
8.1
|
|
|
453,756
|
431,647
|
|
5.1
|
|
|
Profit for the period
attributable to owners of the Corporation
|
104,937
|
96,200
|
|
9.1
|
|
|
423,299
|
401,517
|
|
5.4
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
319,137
|
281,547
|
|
13.4
|
|
|
1,240,282
|
1,019,059
|
|
21.7
|
|
|
Free cash flow
(3)
|
34,452
|
71,423
|
|
(51.8)
|
(49.2)
|
|
424,358
|
486,877
|
|
(12.8)
|
(12.1)
|
|
Acquisition of
property, plant and equipment
|
243,589
|
179,654
|
|
35.6
|
|
|
744,655
|
537,660
|
|
38.5
|
|
|
Net capital
expenditures (1) (3)
|
223,509
|
175,180
|
|
27.6
|
24.5
|
|
688,913
|
533,186
|
|
29.2
|
28.5
|
|
Capital intensity
(3)
|
30.8 %
|
27.7 %
|
|
|
|
|
23.8 %
|
21.2 %
|
|
|
|
|
Financial
condition
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
370,899
|
549,054
|
|
(32.4)
|
|
|
Total assets
|
|
|
|
|
|
|
9,278,509
|
7,351,692
|
|
26.2
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
339,096
|
225,344
|
|
50.5
|
|
|
Non-current
|
|
|
|
|
|
|
4,334,373
|
3,046,872
|
|
42.3
|
|
|
Net indebtedness
(3)
|
|
|
|
|
|
|
4,489,330
|
2,954,188
|
|
52.0
|
|
|
Equity attributable to
owners of the Corporation
|
|
|
|
|
|
|
2,751,080
|
2,415,144
|
|
13.9
|
|
|
Per share data
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.29
|
2.05
|
|
11.7
|
|
|
9.16
|
8.47
|
|
8.1
|
|
|
Diluted
|
2.28
|
2.03
|
|
12.3
|
|
|
9.09
|
8.40
|
|
8.2
|
|
|
Dividends
|
0.705
|
0.64
|
|
10.2
|
|
|
2.82
|
2.56
|
|
10.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Comparative figures
have been restated following the application of the IFRS
Interpretations Committee issued agenda decision Demand Deposits
with Restrictions on Use arising from a Contract with a Third
Party (IAS 7 Statement of Cash Flows) during the third
quarter of fiscal 2022. Furthermore, the Corporation also changed
the label of its "Acquisition of property, plant and equipment" key
performance indicator measure to "Net capital expenditures"
following this application. For further details, refer to the
"Accounting policies" section of the Management's Discussion and
Analysis ("MD&A").
|
(2)
|
Key performance
indicators presented on a constant currency basis are obtained by
translating financial results from the current periods denominated
in US dollars at the foreign exchange rates of the comparable
periods of the prior year. For the three-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. Adjusted
EBITDA margin and capital intensity are supplementary financial
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
Communications Inc.'s ("Cogeco Communications" or the
"Corporation") future outlook and anticipated events, business,
operations, financial performance, financial condition or results
and, in some cases, can be identified by terminology such as "may";
"will"; "should"; "expect"; "plan"; "anticipate"; "believe";
"intend"; "estimate"; "predict"; "potential"; "continue";
"foresee", "ensure" or other similar expressions concerning matters
that are not historical facts. Particularly, statements
regarding the Corporation's financial guidelines,
future operating results and economic performance, objectives and
strategies are forward-looking statements. These statements are
based on certain factors and assumptions including expected growth,
results of operations, purchase price allocation, tax rates,
weighted average cost of capital, performance and business
prospects and opportunities, which Cogeco Communications believes
are reasonable as of the current date. Refer in particular to the
"Corporate objectives and strategies" and "Fiscal 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 Communications
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. 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 Communications and future events and results
may vary significantly from what management currently foresees. The
reader should not place undue importance on forward-looking
information contained in this press release which represent Cogeco
Communications' expectations as of the date of this press release
(or as of the date they are otherwise stated to be made) and are
subject to change after such date. While management may elect to do
so, the Corporation is under no obligation (and expressly disclaims
any such obligation) and does not undertake to update or alter this
information at any particular time, whether as a result of new
information, future events or otherwise, except as required by
law.
All amounts are stated in Canadian dollars unless otherwise
indicated. This press release should be read in
conjunction with the 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 Communications. 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 exchange
impact
|
2022
in constant
currency
|
(1)
|
2021
|
Actual
|
In
constant
currency
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
$
|
$
|
|
$
|
%
|
%
|
Revenue
|
725,446
|
(12,518)
|
712,928
|
|
632,684
|
14.7
|
12.7
|
Operating
expenses
|
372,797
|
(7,346)
|
365,451
|
|
336,206
|
10.9
|
8.7
|
Management fees –
Cogeco Inc.
|
5,575
|
—
|
5,575
|
|
5,908
|
(5.6)
|
(5.6)
|
Adjusted
EBITDA
|
347,074
|
(5,172)
|
341,902
|
|
290,570
|
19.4
|
17.7
|
Free cash
flow
|
34,452
|
1,825
|
36,277
|
|
71,423
|
(51.8)
|
(49.2)
|
Net capital
expenditures
|
223,509
|
(5,434)
|
218,075
|
|
175,180
|
27.6
|
24.5
|
|
|
|
|
|
|
|
|
(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 exchange
impact
|
2022
in constant
currency
|
(1)
|
2021
|
Actual
|
In
constant
currency
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
$
|
$
|
|
$
|
%
|
%
|
Revenue
|
2,900,654
|
(2,881)
|
2,897,773
|
|
2,510,453
|
15.5
|
15.4
|
Operating
expenses
|
1,485,292
|
(2,460)
|
1,482,832
|
|
1,281,332
|
15.9
|
15.7
|
Management fees –
Cogeco Inc.
|
22,300
|
—
|
22,300
|
|
23,465
|
(5.0)
|
(5.0)
|
Adjusted
EBITDA
|
1,393,062
|
(421)
|
1,392,641
|
|
1,205,656
|
15.5
|
15.5
|
Free cash
flow
|
424,358
|
3,524
|
427,882
|
|
486,877
|
(12.8)
|
(12.1)
|
Net capital
expenditures
|
688,913
|
(3,876)
|
685,037
|
|
533,186
|
29.2
|
28.5
|
|
|
|
|
|
|
|
|
(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 exchange
impact
|
2022
in constant
currency
|
(1)
|
2021
|
Actual
|
In
constant
currency
|
(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 exchange
impact
|
2022
in constant
currency
|
(1)
|
2021
|
Actual
|
In
constant
currency
|
(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 exchange
impact
|
2022
in constant
currency
|
(1)
|
2021
|
Actual
|
In
constant
currency
|
(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 exchange
impact
|
2022
in constant
currency
|
(1)
|
2021
|
Actual
|
In
constant
currency
|
(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
revenue
in constant
currency
|
Impact of
acquisitions
|
Fiscal 2022
organic revenue
in constant
currency
|
Fiscal 2021
actual
|
Organic revenue
growth
in
constant currency
|
(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
|
|
712,928
|
62,737
|
650,191
|
632,684
|
2.8
|
|
|
|
|
|
|
ORGANIC ADJUSTED EBITDA IN CONSTANT CURRENCY
RECONCILIATION
|
|
|
|
|
|
|
|
|
Three months ended
August 31,
|
|
Fiscal 2022
Adjusted EDITDA
in constant
currency
|
Impact of
acquisitions
|
Fiscal 2022
organic adjusted
EBITDA in
constant
currency
|
Fiscal 2021
actual
|
Organic adjusted
EBITDA growth
in constant
currency
|
(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)
|
|
341,902
|
23,223
|
318,679
|
290,570
|
9.7
|
|
|
|
|
|
|
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
|
319,137
|
281,547
|
1,240,282
|
1,019,059
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
2,974
|
2,342
|
11,815
|
9,277
|
Changes in other
non-cash operating activities
|
(30,026)
|
(50,068)
|
(74,840)
|
(40,289)
|
Income taxes
paid
|
6,871
|
25,320
|
36,563
|
101,715
|
Current income
taxes
|
(27,430)
|
(20,331)
|
(69,513)
|
(65,070)
|
Interest
paid
|
39,882
|
32,185
|
161,019
|
123,657
|
Financial
expense
|
(52,349)
|
(23,608)
|
(187,617)
|
(124,163)
|
Net capital
expenditures
|
(223,509)
|
(175,180)
|
(688,913)
|
(533,186)
|
Repayment of lease
liabilities
|
(1,098)
|
(784)
|
(4,438)
|
(4,123)
|
Free cash
flow
|
34,452
|
71,423
|
424,358
|
486,877
|
|
|
|
|
|
(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
|
243,589
|
179,654
|
744,655
|
537,660
|
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
|
223,509
|
175,180
|
688,913
|
533,186
|
|
|
|
|
|
ADJUSTED EBITDA RECONCILIATION
|
|
|
|
|
|
Three months ended
August 31,
|
Years ended August
31,
|
|
2022
|
2021
|
2022
|
2021
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
$
|
$
|
$
|
Profit for the
period
|
111,829
|
103,406
|
453,756
|
431,647
|
Income taxes
|
17,290
|
28,466
|
95,663
|
130,726
|
Financial
expense
|
52,349
|
23,608
|
187,617
|
124,163
|
Depreciation and
amortization
|
153,013
|
131,116
|
621,084
|
510,376
|
Acquisition,
integration, restructuring and other costs
|
12,593
|
3,974
|
34,942
|
8,744
|
Adjusted
EBITDA
|
347,074
|
290,570
|
1,393,062
|
1,205,656
|
|
|
|
|
|
NET CAPITAL EXPENDITURES AND FREE CASH FLOW EXCLUDING NETWORK
EXPANSION PROJECTS RECONCILIATIONS
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
Three months
ended,
|
Fiscal
2022
|
Foreign exchange
impact
|
Fiscal
2022
in constant
currency
|
(1)
|
|
Nov. 30
|
Feb. 28
|
May 31
|
Aug. 31
|
|
|
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
Net capital
expenditures
|
141,028
|
142,195
|
182,181
|
223,509
|
688,913
|
(3,876)
|
685,037
|
|
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
|
121,012
|
105,213
|
143,522
|
161,877
|
531,624
|
(2,698)
|
528,926
|
|
|
|
|
|
|
|
|
|
|
(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 exchange
impact
|
Fiscal
2022
in constant
currency
|
(1)
|
|
Nov. 30
|
Feb. 28
|
May 31
|
Aug. 31
|
|
|
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
$
|
$
|
$
|
|
Free cash
flow
|
132,111
|
153,000
|
104,795
|
34,452
|
424,358
|
3,524
|
427,882
|
|
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
|
152,127
|
189,982
|
143,454
|
96,084
|
581,647
|
2,346
|
583,993
|
|
|
|
|
|
|
|
|
|
|
(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 COMMUNICATIONS
INC.
Rooted in the communities it serves, Cogeco Communications Inc.
is a growing competitive force in the North American
telecommunications sector with a legacy of 65 years. Through its
business units Cogeco Connexion and Breezeline (formerly Atlantic
Broadband), Cogeco Communications provides Internet, video and
phone services to 1.6 million residential and business customers in
Québec and Ontario in Canada as well as in thirteen states in
the United States. Cogeco
Communications Inc.'s subordinate voting shares are listed on the
Toronto Stock Exchange (TSX: CCA).
For information:
Investors
Patrice
Ouimet
Senior Vice President and Chief Financial Officer
Cogeco Communications Inc.
Tel.: 514-764-4700
patrice.ouimet@cogeco.com
Media
Marie-Hélène Labrie
Senior Vice President and Chief Public Affairs, Communications and
Strategy Officer
Cogeco Communications Inc.
Tel.: 514-764-4700
marie-helene.labrie@cogeco.com
Conference
Call:
|
Friday, October 28,
2022 at 11:00 a.m. (Eastern Time)
|
|
|
|
A live audio webcast
will be available on Cogeco Communications' website at
https://corpo.cogeco.com/cca/en/investors/investor-relations/.
Members of the financial community will be able to access the
conference call and ask questions. Media representatives may attend
as listeners only. The webcast will be available on Cogeco
Communications' website for a three-month period.
|
|
|
|
Please use the
following dial-in number to have access to the conference call 10
minutes before the start of the conference:
|
|
|
|
Local - Toronto:
1-416-764-8646
|
|
Toll Free - North
America: 1-888-396-8049
|
|
|
|
In order to join this
conference, participants are required to provide the operator with
the name of the company hosting the call, that is, Cogeco Inc. or
Cogeco Communications Inc.
|
SOURCE Cogeco Communications Inc.