- Cogeco repurchased $280.0
million worth of its shares following CDPQ's acquisition of
the entirety of Rogers' holdings in both Cogeco and Cogeco
Communications;
- Cogeco further advanced its wireless ambitions
by securing spectrum licences in Québec and Ontario in the 3800 MHz spectrum auction, for
a total purchase price of $190.3
million. With this acquisition, Cogeco has spectrum covering
100% of its Canadian broadband network footprint as well as
valuable spectrum in the greater Toronto, Montréal, Québec City and
Ottawa regions;
- Cogeco Connexion reported another strong quarter of Internet
subscriber performance, with 10,765 net customer additions,
driven by a mix of new customers added under our digital oxio
brand, in fibre-to-the-home network expansions and in other
operating areas;
- Revenue declined by 1.7% compared to the same period last
year to $776.2 million, as revenue
growth at Cogeco Connexion was offset by lower revenue at
Breezeline;
- Adjusted EBITDA(1) of $366.0 million decreased by 2.1% over last year,
in line with our expectations;
- Profit for the period amounted to $98.7 million, a decrease of 20.3%, mainly
due to higher financial expenses including a pre-tax $16.9 million non-cash loss on debt
extinguishment following a US$1.6
billion refinancing;
- Free cash flow(1) amounted to $141.8 million, an increase of 29.5%, due to
lower net capital expenditures, while cash flows from operating
activities increased by 22.2% to $236.9 million. Free cash flow, excluding
network expansion projects(1) was $173.5 million, stable compared to last
year;
- Cogeco maintains its fiscal 2024 financial guidelines as
issued on November 1, 2023;
and
- A quarterly dividend of $0.854
per share was declared, representing a 16.8% increase over the
prior year.
MONTRÉAL, Jan. 10,
2024 /CNW/ - Today, Cogeco Inc. (TSX: CGO) ("Cogeco"
or the "Corporation") announced its financial results for the first
quarter ended November 30, 2023.
"The first months of fiscal 2024 were transformational and
historic moments for our company. We recently announced that Cogeco
bought back 6.0 million of its shares and Cogeco Communications
bought back 2.3 million of its shares, both at discounted market
prices per share, providing free cash flow per share accretion and
increasing the net asset value of Cogeco. In conjunction with these
transactions, the public float of Cogeco Communications was
increased therefore enhancing trading liquidity. This opportunity
represented a unique and attractive use of our capital to build
value for our shareholders, while strengthening our existing
partnership with CDPQ as an anchor investor in Cogeco
Communications. Another important milestone for us was when we
secured wireless spectrum critical for the 5G technology and now
have spectrum coverage for 100% of our wireline footprint. This
spectrum was secured at a significantly lower cost compared to past
spectrum auctions," said Philippe Jetté, President and Chief
Executive Officer of Cogeco.
"Our Canadian telecommunications business chalked up another
quarter of strong Internet subscriber performance, thanks to gains
across each of our oxio, expansion and legacy footprints,"
continued Mr. Jetté. "We continue to be impressed by the oxio
brand's growing adoption by consumers."
"In the U.S., our network expansion program along with demand
from existing customers for our higher speed tiers helped offset
customer losses at lower price points which were more directly
impacted by competition and challenging market conditions.
Consistent with our Internet led strategy to improve customer
lifetime value, our attractive product mix and focus on cost
efficiencies helped deliver another quarter of higher adjusted
EBITDA margin."
"At Cogeco Media, our ongoing efforts to develop innovative
digital solutions and adapt to a multi-platform audio content model
are beginning to bear fruit. These, along with strong listener
engagement across many of our stations, have resulted in solid
year-over-year revenue growth during the quarter," continued Mr.
Jetté.
"At Cogeco, we strive on a daily basis to deliver the best
products and service to our clients, engage with the communities we
serve, prioritize digital inclusion and climate action, and
finally, execute a sustainable business model through responsible
and ethical management to generate value for all of our
stakeholders," concluded Mr. Jetté.
Consolidated Financial Highlights
|
Three months ended
November 30
|
2023
|
|
2022
|
|
Change
|
Change in
constant
currency
|
(1)
|
|
(In thousands of
Canadian dollars, except % and per share data)
(unaudited)
|
$
|
|
$
|
|
%
|
%
|
|
|
Revenue
|
776,172
|
|
789,690
|
|
(1.7)
|
(2.3)
|
|
|
Adjusted EBITDA
(1)
|
366,033
|
|
373,882
|
|
(2.1)
|
(2.6)
|
|
|
Profit for the
period
|
98,729
|
|
123,808
|
|
(20.3)
|
|
|
|
Profit for the period
attributable to owners of the Corporation
|
34,541
|
|
42,081
|
|
(17.9)
|
|
|
|
Adjusted profit
attributable to owners of the Corporation (1)
(3)
|
40,038
|
|
42,762
|
|
(6.4)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
236,919
|
|
193,821
|
|
22.2
|
|
|
|
Free cash flow
(1)
|
141,823
|
|
109,483
|
|
29.5
|
29.4
|
|
|
Free cash flow,
excluding network expansion projects (1)
|
173,483
|
|
175,317
|
|
(1.0)
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
153,789
|
|
235,008
|
|
(34.6)
|
|
|
|
Net capital
expenditures (1) (2)
|
146,667
|
|
197,342
|
|
(25.7)
|
(26.2)
|
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
115,007
|
|
131,508
|
|
(12.5)
|
(13.2)
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
2.21
|
|
2.67
|
|
(17.2)
|
|
|
|
Adjusted diluted
earnings per share (1) (3)
|
2.57
|
|
2.71
|
|
(5.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the first quarter of fiscal 2024 ended on November 30, 2023:
- Revenue decreased by 1.7% to $776.2
million. On a constant currency basis(1), revenue
decreased by 2.3%, driven by a lower customer base in the American
telecommunications segment, which offset revenue growth in the
Canadian telecommunications segment, as explained below.
- Canadian telecommunications' revenue increased by 1.2%, mainly
driven by the oxio acquisition completed on March 3, 2023 as well as the cumulative effect of
high-speed Internet service additions over the past year.
- American telecommunications' revenue decreased by 4.9%, or 6.0%
in constant currency, mainly due to a lower customer base over the
past year with an increasing proportion of customers only
subscribing to Internet services, as well as the timing of price
increases introduced in the fiscal 2023 first-quarter which gave
rise to a difficult comparison between both periods. The revenue
decrease was offset in part by a higher revenue per customer and a
better product mix resulting from customers subscribing to
increasingly fast Internet speeds.
- Revenue in the media activities increased by 4.0%.
- Adjusted EBITDA decreased by 2.1% to $366.0 million. On a constant currency basis,
adjusted EBITDA decreased by 2.6%, due to a decline in both the
American telecommunications and Canadian telecommunications
segments, as further explained below, in addition to higher
corporate costs, primarily due to the timing of certain operating
expenses including in relation to its plan to offer mobile services
in Canada.
- American telecommunications adjusted EBITDA decreased by 2.4%,
or 3.6% in constant currency, mainly due to lower revenue, partly
offset by a better product mix and cost reduction initiatives.
- Canadian telecommunications adjusted EBITDA decreased by 1.1%,
mainly due to revenue growth being offset by higher operating
expenses.
- Profit for the period amounted to $98.7
million, of which $34.5
million, or $2.21 per diluted
share, was attributable to owners of the Corporation compared to
$123.8 million, $42.1 million, and $2.67 per diluted share, respectively, in the
comparable period of fiscal 2023. The decreases in profit for the
period and profit attributable to owners of the Corporation
resulted mainly from higher financial expense, mostly due to a
pre-tax $16.9 million non-cash loss
on debt extinguishment recognized following a US$1.6 billion refinancing in September 2023, lower adjusted EBITDA and higher
depreciation and amortization expense, partly offset by lower
income tax expense.
- Adjusted profit attributable to owners of the
Corporation(3) was $40.0
million, or $2.57 per diluted
share(3), compared to $42.8
million, or $2.71 per diluted
share, last year.
- Net capital expenditures were $146.7 million, a decrease of 25.7% compared
to $197.3 million in the same period
of the prior year. In constant currency, net capital
expenditures(1) were $145.6 million, a decrease of 26.2% compared
to last year, mostly due to lower spending in both the Canadian and
American telecommunications segments following the completion, or
near completion, as well as the timing of several fibre-to-the-home
network expansion projects.
- Excluding network expansion projects, net capital expenditures
were $115.0 million, a decrease of
12.5% compared to $131.5 million in
the same period of the prior year. In constant currency, net
capital expenditures excluding network expansion
projects(1) were $114.1 million, a decrease of 13.2% compared
to last year.
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States, with homes passed additions
of more than 13,000 during the first quarter of fiscal 2024.
- Acquisition of property, plant and equipment decreased by 34.6%
to $153.8 million, due to
reduced capital spending in both countries.
- Free cash flow increased by 29.5%, or 29.4% in constant
currency, and amounted to $141.8
million, or $141.6 million in
constant currency, mainly due to lower net capital expenditures.
Free cash flow, excluding network expansion projects amounted to
$173.5 million, or $173.1 million in constant currency, and remained
stable compared to the same period of the prior year.
- Cash flows from operating activities increased by 22.2% to
$236.9 million, resulting mostly from
lower income taxes paid, and to a lesser extent, the timing of
trade accounts receivable, offset in part by lower adjusted EBITDA
and higher interest paid.
- On November 30, 2023, Cogeco
Communications, through its wholly-owned subsidiary Elite General
Partnership, secured 99 spectrum licences in urban and rural
markets, including the greater Toronto, Montréal, Québec City and
Ottawa areas, for a total purchase
price of $190.3 million.
- On December 13, 2023, Cogeco
completed the repurchase, for cancellation, of the
5,969,390 shares sold by CDPQ, for an amount of $280.0 million, following the purchase by CDPQ of
the entirety of Rogers' holdings in both Cogeco and Cogeco
Communications.
- Cogeco maintains its fiscal 2024 financial guidelines as issued
on November 1, 2023.
- At its January 10, 2024 meeting, the Board of Directors of
Cogeco declared a quarterly eligible dividend of $0.854 per share, an increase of
16.8% compared to $0.731 per
share in the comparable quarter of fiscal 2023.
|
___________
|
|
(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 exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
|
(3)
|
Excludes the impact of
acquisition, integration, restructuring and other costs, and
gains/losses on debt modification and/or extinguishment, net of tax
and non-controlling interest.
|
Financial highlights
|
Three months ended
November 30
|
2023
|
2022
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
|
(In thousands of
Canadian dollars, except % and per share data)
|
$
|
$
|
%
|
%
|
|
|
Operations
|
|
|
|
|
|
|
Revenue
|
776,172
|
789,690
|
(1.7)
|
(2.3)
|
|
|
Adjusted EBITDA
(2)
|
366,033
|
373,882
|
(2.1)
|
(2.6)
|
|
|
Acquisition,
integration, restructuring and other costs
(3)
|
3,265
|
2,677
|
22.0
|
|
|
|
Profit for the
period
|
98,729
|
123,808
|
(20.3)
|
|
|
|
Profit for the period
attributable to owners of the Corporation
|
34,541
|
42,081
|
(17.9)
|
|
|
|
Adjusted profit
attributable to owners of the Corporation
(2)(4)
|
40,038
|
42,762
|
(6.4)
|
|
|
|
Cash
flow
|
|
|
|
|
|
|
Cash flows from
operating activities
|
236,919
|
193,821
|
22.2
|
|
|
|
Free cash flow
(2)
|
141,823
|
109,483
|
29.5
|
29.4
|
|
|
Free cash flow,
excluding network expansion projects (2)
|
173,483
|
175,317
|
(1.0)
|
(1.2)
|
|
|
Acquisition of property, plant and
equipment
|
153,789
|
235,008
|
(34.6)
|
|
|
|
Net capital
expenditures (2)(5)
|
146,667
|
197,342
|
(25.7)
|
(26.2)
|
|
|
Net capital
expenditures, excluding network expansion projects
(2)
|
115,007
|
131,508
|
(12.5)
|
(13.2)
|
|
|
Per share data
(6)
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic
|
2.23
|
2.68
|
(16.8)
|
|
|
|
Diluted
|
2.21
|
2.67
|
(17.2)
|
|
|
|
Adjusted diluted
(2)(4)
|
2.57
|
2.71
|
(5.2)
|
|
|
|
Dividends per
share
|
0.854
|
0.731
|
16.8
|
|
|
|
|
|
|
|
|
|
(1)
|
Key performance
indicators presented on a constant currency basis are obtained by
translating financial results from the current period denominated
in US dollars at the foreign exchange rate of the comparable period
of the prior year. For the three-month period ended November 30,
2022, the average foreign exchange rate used for translation was
1.3489 USD/CDN.
|
|
(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. 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-month
periods ended November 30, 2023 and 2022, acquisition, integration,
restructuring and other costs mostly related to costs associated
with the configuration and customization related to cloud computing
and other arrangements.
|
|
(4)
|
Excludes the impact of
acquisition, integration, restructuring and other costs, and
gains/losses on debt modification and/or extinguishment, net of tax
and non-controlling interest.
|
|
(5)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
|
(6)
|
Per multiple and
subordinate voting share.
|
|
As at
|
November 30,
2023
|
August 31,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Financial
condition
|
|
|
|
Cash and cash
equivalents
|
86,921
|
363,854
|
|
Total assets
|
9,607,256
|
9,869,778
|
|
Long-term
debt
|
|
|
|
Current
|
67,540
|
43,325
|
|
Non-current
|
4,741,681
|
5,045,672
|
|
Net indebtedness
(1)
|
4,815,873
|
4,817,113
|
|
Equity attributable to
owners of the Corporation
|
943,601
|
925,863
|
|
|
|
|
(1)
|
Net indebtedness is a
capital management measure. For more information on this financial
measure, please consult the "Non-IFRS and other financial measures"
section of the Corporation's MD&A for the three-month period
ended November 30, 2023, available on SEDAR+
at www.sedarplus.ca.
|
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 2023 annual MD&A and of the fiscal 2024
first-quarter MD&A, and the "Fiscal 2024 financial guidelines"
section of the Corporation's 2023 annual 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 general market and other
conditions, 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), talent management risks (including highly
competitive market for limited pool of digitally skilled
employees), human-caused and natural threats to the Corporation's
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 2023 annual MD&A and of the fiscal 2024
first-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-month
period ended November 30, 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 2023
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-month period ended November 30, 2023, available
on SEDAR+ at www.sedarplus.ca. The following non-IFRS financial
measures are used as a component of Cogeco's non-IFRS ratios.
|
|
|
Specified non-IFRS
financial measures
|
Used in the
component of the following non-IFRS ratios
|
|
Adjusted profit
attributable to owners of the Corporation
|
Adjusted diluted
earnings per share
|
|
Constant currency
basis
|
Change in constant
currency
|
|
|
Financial measures presented on a constant currency basis for the
three-month period ended November 30, 2023 are translated
at the average foreign exchange rate of the comparable period of
the prior year, which was 1.3489 USD/CDN.
Constant currency basis and foreign exchange impact
reconciliation
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
776,172
|
|
(4,462)
|
|
771,710
|
|
789,690
|
|
(1.7)
|
|
(2.3)
|
|
Operating
expenses
|
410,139
|
|
(2,507)
|
|
407,632
|
|
415,808
|
|
(1.4)
|
|
(2.0)
|
|
Adjusted
EBITDA
|
366,033
|
|
(1,955)
|
|
364,078
|
|
373,882
|
|
(2.1)
|
|
(2.6)
|
|
Free cash
flow
|
141,823
|
|
(176)
|
|
141,647
|
|
109,483
|
|
29.5
|
|
29.4
|
|
Net capital
expenditures
|
146,667
|
|
(1,060)
|
|
145,607
|
|
197,342
|
|
(25.7)
|
|
(26.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
376,448
|
|
—
|
|
376,448
|
|
372,084
|
|
1.2
|
|
1.2
|
|
Operating
expenses
|
180,094
|
|
(191)
|
|
179,903
|
|
173,451
|
|
3.8
|
|
3.7
|
|
Adjusted
EBITDA
|
196,354
|
|
191
|
|
196,545
|
|
198,633
|
|
(1.1)
|
|
(1.1)
|
|
Net capital
expenditures
|
87,836
|
|
(388)
|
|
87,448
|
|
115,238
|
|
(23.8)
|
|
(24.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Revenue
|
371,241
|
|
(4,462)
|
|
366,779
|
|
390,216
|
|
(4.9)
|
|
(6.0)
|
|
Operating
expenses
|
193,071
|
|
(2,316)
|
|
190,755
|
|
207,710
|
|
(7.0)
|
|
(8.2)
|
|
Adjusted
EBITDA
|
178,170
|
|
(2,146)
|
|
176,024
|
|
182,506
|
|
(2.4)
|
|
(3.6)
|
|
Net capital
expenditures
|
55,853
|
|
(672)
|
|
55,181
|
|
80,408
|
|
(30.5)
|
|
(31.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the Corporation
|
|
|
|
Three months ended
November 30
|
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Profit for the
period attributable to owners of the Corporation
|
34,541
|
42,081
|
|
Acquisition,
integration, restructuring and other costs
|
3,265
|
2,677
|
|
Loss on debt
extinguishment (1)
|
16,880
|
—
|
|
Tax impact for the
above items
|
(5,333)
|
(710)
|
|
Non-controlling
interest impact for the above items
|
(9,315)
|
(1,286)
|
|
Adjusted profit
attributable to owners of the Corporation
|
40,038
|
42,762
|
|
|
|
|
(1)
|
Included within
financial expense.
|
Free cash flow reconciliation
|
|
|
|
Three months ended
November 30
|
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Cash flows from
operating activities
|
236,919
|
193,821
|
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
2,691
|
3,062
|
|
Loss on debt
extinguishment (1)
|
16,880
|
—
|
|
Changes in other
non-cash operating activities
|
58,495
|
69,949
|
|
Income taxes
paid
|
2,903
|
47,293
|
|
Current income
taxes
|
(8,042)
|
(9,290)
|
|
Interest
paid
|
65,038
|
61,206
|
|
Financial
expense
|
(84,294)
|
(57,527)
|
|
Net capital
expenditures (2)
|
(146,667)
|
(197,342)
|
|
Repayment of lease
liabilities
|
(2,100)
|
(1,689)
|
|
Free cash
flow
|
141,823
|
109,483
|
|
|
|
|
(1)
|
Included within
financial expense.
|
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
Net capital expenditures reconciliation
|
|
|
|
Three months ended
November 30
|
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Acquisition of
property, plant and equipment
|
153,789
|
235,008
|
|
Subsidies received in
advance recognized as a reduction of the cost of property, plant
and equipment during the period
|
(7,122)
|
(37,666)
|
|
Net capital
expenditures
|
146,667
|
197,342
|
|
|
|
Adjusted EBITDA reconciliation
|
|
|
|
Three months ended
November 30
|
|
2023
|
2022
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Profit for the
period
|
98,729
|
123,808
|
|
Income taxes
|
19,381
|
33,480
|
|
Financial
expense
|
84,294
|
57,527
|
|
Depreciation and
amortization
|
160,364
|
156,390
|
|
Acquisition,
integration, restructuring and other costs
|
3,265
|
2,677
|
|
Adjusted
EBITDA
|
366,033
|
373,882
|
|
|
|
Net capital expenditures and free cash flow excluding network
expansion projects reconciliations
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Net capital
expenditures
|
146,667
|
|
(1,060)
|
|
145,607
|
|
197,342
|
|
(25.7)
|
|
(26.2)
|
|
Net capital
expenditures in connection with network expansion
projects
|
31,660
|
|
(162)
|
|
31,498
|
|
65,834
|
|
(51.9)
|
|
(52.2)
|
|
Net capital
expenditures, excluding network expansion projects
|
115,007
|
|
(898)
|
|
114,109
|
|
131,508
|
|
(12.5)
|
|
(13.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
November 30
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
|
2023
|
|
Foreign
exchange
impact
|
|
2023
in constant
currency
|
|
2022
|
|
Actual
|
|
In
constant
currency
|
|
(In thousands of
Canadian dollars, except percentages)
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
|
%
|
|
Free cash
flow
|
141,823
|
|
(176)
|
|
141,647
|
|
109,483
|
|
29.5
|
|
29.4
|
|
Net capital
expenditures in connection with network expansion
projects
|
31,660
|
|
(162)
|
|
31,498
|
|
65,834
|
|
(51.9)
|
|
(52.2)
|
|
Free cash flow,
excluding network expansion projects
|
173,483
|
|
(338)
|
|
173,145
|
|
175,317
|
|
(1.0)
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional information
Additional information relating to the Corporation is available
on SEDAR+ at www.sedarplus.ca 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 and
media sectors, serving 1.6 million residential and business
customers. Its Cogeco Communications Inc. subsidiary provides
Internet, video and phone services in Canada 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.: 514-764-4600
patrice.ouimet@cogeco.com
Troy Crandall
Head, Investor Relations
Cogeco Inc.
Tel.: 514-764-4700
troy.crandall@cogeco.com
Media
Youann Blouin
Director, Media Relations & Strategic Communications
Cogeco Inc.
Tel.: 514-297-2853
youann.blouin@cogeco.com
|
Conference
Call:
|
Thursday, January
11th, 2024 at 9:30 a.m. (Eastern Standard
Time)
|
|
|
A live audio webcast of
the analyst call will be available on the Investor
Relations page and on
the Events and Presentations page on Cogeco's website. Financial analysts will be able to access
the live conference call and ask questions. Media representatives
may attend as listeners only. A recording of the webcast will be
available on Cogeco's website for
a three-month period.
|
|
Please use the
following dial-in number to access 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.
The conference call will be followed by a live webcast of the
virtual Annual and Special Shareholders' Meetings at 11:30
a.m. at: https://web.lumiagm.com/#/424761509
SOURCE Cogeco Inc.
