- In the context of its network expansion strategy, Cogeco
Communications 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 1.9% compared to the same period of the
prior year to $741.8
million;
- Adjusted EBITDA(1) of $351.3 million increased 1.1% over last
year;
- Profit for the period amounted to $101.5 million, a decrease of 3.7%, of which
$95.9 million was attributable to
owners of the Corporation, a decrease of 4.3%. Adjusted profit
attributable to owners of the Corporation(1)(3) rose by
2.1% to $103.8 million;
- Earnings per share on a diluted basis was $2.16, comparable to the same quarter of fiscal
2022. Adjusted diluted earnings per share(1)(3) rose by
6.8% to $2.34;
- Net capital expenditures(1)(2) amounted to
$169.8 million, a 6.8% reduction
versus last year. Acquisition of property, plant and
equipment amounted to $189.7
million, a decrease of 3.9%;
- Free cash flow(1) of $104.4 million remained comparable to last year,
while cash flows from operating activities decreased by 19.4% to
$284.4 million; and
- Declared a quarterly eligible dividend of $0.776 per share, representing a 10.1% increase
over last year.
MONTRÉAL, July 13,
2023 /CNW/ - Today, Cogeco Communications Inc. (TSX:
CCA) ("Cogeco Communications" 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 Communications Inc.
"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," 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
|
741,785
|
|
728,118
|
|
1.9
|
(1.3)
|
|
Adjusted EBITDA
(1)
|
351,328
|
|
347,614
|
|
1.1
|
(1.8)
|
|
Profit for the
period
|
101,538
|
|
105,406
|
|
(3.7)
|
|
|
Profit for the period
attributable to owners of the Corporation
|
95,892
|
|
100,250
|
|
(4.3)
|
|
|
Adjusted profit
attributable to owners of the Corporation (1)
(3)
|
103,826
|
|
101,717
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
284,377
|
|
353,001
|
|
(19.4)
|
|
|
Free cash flow
(1)
|
104,422
|
|
104,795
|
|
(0.4)
|
—
|
|
Free cash flow,
excluding network expansion projects (1)
|
136,253
|
|
143,454
|
|
(5.0)
|
(5.4)
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
189,656
|
|
197,345
|
|
(3.9)
|
|
|
Net capital
expenditures (1)
|
169,793
|
|
182,181
|
|
(6.8)
|
(10.5)
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
137,962
|
|
143,522
|
|
(3.9)
|
(7.9)
|
|
|
|
|
|
|
|
|
|
Capital intensity
(1)
|
22.9 %
|
|
25.0 %
|
|
|
|
|
Capital intensity,
excluding network expansion projects (1)
|
18.6 %
|
|
19.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
2.16
|
|
2.16
|
|
—
|
|
|
Adjusted diluted
earnings per share (1) (3)
|
2.34
|
|
2.19
|
|
6.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the third quarter of fiscal 2023:
- Revenue increased by 1.9% to reach $741.8 million. On a constant currency basis,
revenue decreased by 1.3%, driven by a decline in the American
telecommunications segment 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.
- Adjusted EBITDA increased by 1.1% to reach $351.3 million. On a constant currency basis,
adjusted EBITDA decreased by 1.8%, 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 $101.5
million, of which $95.9
million, or $2.16 per diluted
share, was attributable to owners of the Corporation compared to
$105.4 million, $100.3 million, and $2.16 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 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 $103.8
million, or $2.34 per diluted
share(3), compared to $101.7
million, or $2.19 per diluted
share, last year.
- Net capital expenditures, which account for network expansion
subsidies, were $169.8 million, a
decrease of 6.8%, compared to $182.2
million in the same period of the prior year. In constant
currency, net capital expenditures were $163.0 million, a decrease of 10.5% 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 $138.0 million, a decrease of
3.9% compared to $143.5 million in
the same period of the prior year. In constant currency, net
capital expenditures excluding network expansion
projects(1) were $132.2
million, a decrease of 7.9% 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.
- Capital intensity was 22.9% compared to 25.0% last year.
Excluding network expansion projects, capital intensity was 18.6%
compared to 19.7% in the same period of the prior year.
- Acquisition of property, plant and equipment decreased by 3.9%
to $189.7 million, mainly due to
reduced capital spending, mostly in the Canadian telecommunications
segment.
- Free cash flow remained comparable as reported and in constant
currency, amounting to $104.4
million. Free cash flow remained comparable in constant
currency mainly due to higher financial expense, acquisition,
integration, restructuring and other costs and lower adjusted
EBITDA being offset by lower net capital expenditures and current
income taxes.
-
- Free cash flow, excluding network expansion projects decreased
by 5.0%, or 5.4% in constant currency, and amounted to $136.3 million.
- Cash flows from operating activities decreased by 19.4% to
reach $284.4 million, driven by a net
inflow in non-cash operating activities of $26.2 million compared to $54.2 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 Communications reiterates its fiscal 2023 financial
guidelines as issued on January 12,
2023. Furthermore, on June 8,
2023, Cogeco Communications 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 Communications declared a quarterly
eligible dividend of $0.776 per
share, an increase of 10.1% compared to $0.705 per share in the comparable quarter of
fiscal 2022.
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Capital
intensity is a supplementary financial measure. 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, capital intensity, excluding network expansion projects
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
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 % and per share data)
|
$
|
$
|
|
%
|
%
|
|
$
|
$
|
|
%
|
%
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
741,785
|
728,118
|
|
1.9
|
(1.3)
|
|
2,240,731
|
2,175,208
|
|
3.0
|
(0.3)
|
|
Adjusted EBITDA
(2)
|
351,328
|
347,614
|
|
1.1
|
(1.8)
|
|
1,069,766
|
1,045,988
|
|
2.3
|
(0.7)
|
|
Adjusted EBITDA margin
(2)
|
47.4 %
|
47.7 %
|
|
|
|
|
47.7 %
|
48.1 %
|
|
|
|
|
Acquisition,
integration, restructuring and other costs
(3)
|
11,368
|
2,263
|
|
—
|
|
|
20,997
|
22,349
|
|
(6.0)
|
|
|
Profit for the
period
|
101,538
|
105,406
|
|
(3.7)
|
|
|
326,175
|
341,927
|
|
(4.6)
|
|
|
Profit for the period
attributable to owners of the Corporation
|
95,892
|
100,250
|
|
(4.3)
|
|
|
305,774
|
318,362
|
|
(4.0)
|
|
|
Adjusted profit
attributable to owners of the Corporation (2)
|
103,826
|
101,717
|
|
2.1
|
|
|
320,785
|
331,741
|
|
(3.3)
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
284,377
|
353,001
|
|
(19.4)
|
|
|
681,579
|
921,145
|
|
(26.0)
|
|
|
Free cash flow
(2)
|
104,422
|
104,795
|
|
(0.4)
|
—
|
|
327,489
|
389,906
|
|
(16.0)
|
(15.4)
|
|
Free cash flow,
excluding network expansion projects (2)
|
136,253
|
143,454
|
|
(5.0)
|
(5.4)
|
|
467,396
|
485,563
|
|
(3.7)
|
(4.4)
|
|
Acquisition of
property, plant and equipment
|
189,656
|
197,345
|
|
(3.9)
|
|
|
597,260
|
501,066
|
|
19.2
|
|
|
Net capital
expenditures (2)
|
169,793
|
182,181
|
|
(6.8)
|
(10.5)
|
|
522,889
|
465,404
|
|
12.4
|
7.3
|
|
Net capital
expenditures, excluding network expansion projects
(2)
|
137,962
|
143,522
|
|
(3.9)
|
(7.9)
|
|
382,982
|
369,747
|
|
3.6
|
(1.2)
|
|
Capital intensity
(2)
|
22.9 %
|
25.0 %
|
|
|
|
|
23.3 %
|
21.4 %
|
|
|
|
|
Capital intensity,
excluding network expansion projects (2)
|
18.6 %
|
19.7 %
|
|
|
|
|
17.1 %
|
17.0 %
|
|
|
|
|
Per share data
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.17
|
2.17
|
|
—
|
|
|
6.83
|
6.87
|
|
(0.6)
|
|
|
Diluted
|
2.16
|
2.16
|
|
—
|
|
|
6.80
|
6.81
|
|
(0.1)
|
|
|
Adjusted diluted
(2)
|
2.34
|
2.19
|
|
6.8
|
|
|
7.13
|
7.10
|
|
0.4
|
|
|
Dividends
|
0.776
|
0.705
|
|
10.1
|
|
|
2.328
|
2.115
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
EBITDA margin and capital intensity are supplementary financial
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, capital intensity, excluding network expansion
projects 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 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.
|
|
|
|
As at
|
May 31,
2023
|
August 31,
2022
|
(In thousands of
Canadian dollars)
|
$
|
$
|
Financial
condition
|
|
|
Cash and cash
equivalents
|
364,857
|
370,899
|
Total assets
|
9,776,770
|
9,278,509
|
Long-term
debt
|
|
|
Current
|
41,489
|
339,096
|
Non-current
|
5,038,941
|
4,334,373
|
Net indebtedness
(1)
|
4,835,682
|
4,489,330
|
Equity attributable to
owners of the Corporation
|
2,905,974
|
2,751,080
|
|
|
|
(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 and nine-month
periods ended May 31, 2023, available on SEDAR at
www.sedar.com.
|
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" 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 Communications 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. 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 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 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 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 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
|
741,785
|
|
(23,039)
|
|
718,746
|
|
728,118
|
|
1.9
|
|
(1.3)
|
|
Operating
expenses
|
386,373
|
|
(13,134)
|
|
373,239
|
|
374,930
|
|
3.1
|
|
(0.5)
|
|
Management fees –
Cogeco Inc.
|
4,084
|
|
—
|
|
4,084
|
|
5,574
|
|
(26.7)
|
|
(26.7)
|
|
Adjusted
EBITDA
|
351,328
|
|
(9,905)
|
|
341,423
|
|
347,614
|
|
1.1
|
|
(1.8)
|
|
Free cash
flow
|
104,422
|
|
370
|
|
104,792
|
|
104,795
|
|
(0.4)
|
|
—
|
|
Net capital
expenditures
|
169,793
|
|
(6,761)
|
|
163,032
|
|
182,181
|
|
(6.8)
|
|
(10.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
2,240,731
|
|
(71,231)
|
|
2,169,500
|
|
2,175,208
|
|
3.0
|
|
(0.3)
|
|
Operating
expenses
|
1,156,081
|
|
(40,429)
|
|
1,115,652
|
|
1,112,495
|
|
3.9
|
|
0.3
|
|
Management fees –
Cogeco Inc.
|
14,884
|
|
—
|
|
14,884
|
|
16,725
|
|
(11.0)
|
|
(11.0)
|
|
Adjusted
EBITDA
|
1,069,766
|
|
(30,802)
|
|
1,038,964
|
|
1,045,988
|
|
2.3
|
|
(0.7)
|
|
Free cash
flow
|
327,489
|
|
2,353
|
|
329,842
|
|
389,906
|
|
(16.0)
|
|
(15.4)
|
|
Net capital
expenditures
|
522,889
|
|
(23,439)
|
|
499,450
|
|
465,404
|
|
12.4
|
|
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)
|
$
|
$
|
$
|
$
|
Profit for the
period attributable to owners of the Corporation
|
95,892
|
100,250
|
305,774
|
318,362
|
Acquisition,
integration, restructuring and other costs
|
11,368
|
2,263
|
20,997
|
22,349
|
Tax impact for the
above items
|
(2,989)
|
(588)
|
(5,541)
|
(5,744)
|
Non-controlling
interest impact for the above items
|
(445)
|
(208)
|
(445)
|
(3,226)
|
Adjusted profit
attributable to owners of the Corporation
|
103,826
|
101,717
|
320,785
|
331,741
|
|
|
|
|
|
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
|
284,377
|
353,001
|
681,579
|
921,145
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
3,334
|
2,926
|
9,406
|
8,841
|
Changes in other
non-cash operating activities
|
(26,238)
|
(54,184)
|
107,797
|
(44,814)
|
Income taxes paid
(received)
|
20,170
|
(369)
|
89,648
|
29,692
|
Current income
taxes
|
(5,944)
|
(16,734)
|
(26,359)
|
(42,083)
|
Interest
paid
|
63,335
|
48,984
|
174,159
|
121,137
|
Financial
expense
|
(63,385)
|
(45,334)
|
(181,420)
|
(135,268)
|
Net capital
expenditures
|
(169,793)
|
(182,181)
|
(522,889)
|
(465,404)
|
Repayment of lease
liabilities
|
(1,434)
|
(1,314)
|
(4,432)
|
(3,340)
|
Free cash
flow
|
104,422
|
104,795
|
327,489
|
389,906
|
|
|
|
|
|
(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
|
189,656
|
197,345
|
597,260
|
501,066
|
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
|
169,793
|
182,181
|
522,889
|
465,404
|
|
|
|
|
|
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
|
101,538
|
105,406
|
326,175
|
341,927
|
Income taxes
|
19,996
|
28,202
|
76,642
|
78,373
|
Financial
expense
|
63,385
|
45,334
|
181,420
|
135,268
|
Depreciation and
amortization
|
155,041
|
166,409
|
464,532
|
468,071
|
Acquisition,
integration, restructuring and other costs
|
11,368
|
2,263
|
20,997
|
22,349
|
Adjusted
EBITDA
|
351,328
|
347,614
|
1,069,766
|
1,045,988
|
|
|
|
|
|
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
|
169,793
|
|
(6,761)
|
|
163,032
|
|
182,181
|
|
(6.8)
|
|
(10.5)
|
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
|
137,962
|
|
(5,785)
|
|
132,177
|
|
143,522
|
|
(3.9)
|
|
(7.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
522,889
|
|
(23,439)
|
|
499,450
|
|
465,404
|
|
12.4
|
|
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
|
382,982
|
|
(17,779)
|
|
365,203
|
|
369,747
|
|
3.6
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
104,422
|
|
370
|
|
104,792
|
|
104,795
|
|
(0.4)
|
|
—
|
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
|
136,253
|
|
(606)
|
|
135,647
|
|
143,454
|
|
(5.0)
|
|
(5.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
327,489
|
|
2,353
|
|
329,842
|
|
389,906
|
|
(16.0)
|
|
(15.4)
|
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
|
467,396
|
|
(3,307)
|
|
464,089
|
|
485,563
|
|
(3.7)
|
|
(4.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Communications Inc.
Rooted in the communities it serves, Cogeco Communications Inc.
is a growing competitive force in the North American
telecommunications sector, serving 1.6 million residential and
business customers. Through its business units Cogeco Connexion and
Breezeline, Cogeco Communications provides Internet, video and
phone services in the provinces of Québec and Ontario 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, July 14, 2023
at 11:00 a.m. (EDT)
|
|
|
|
The conference call
will be available on Cogeco Communications' website at
https://corpo.cogeco.com/cca/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 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: 1 416-764-8658
|
|
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 Communications Inc.