- In the context of its network expansion strategy, Cogeco added 30,922 homes passed in Canada and the United States, totalling 101,000 homes passed over the past nine months;
- The acquisition of oxio expanded Cogeco Connexion's value proposition by adding a second brand to serve the telecommunication needs of Canadians;
- Revenue grew by 1.7% compared to the same period of the prior year to $767.6 million;
- Adjusted EBITDA(1) of $355.5 million increased 0.6% over last year;
- Profit for the period amounted to $33.3 million, a decrease of 69.3%, while the loss for the period attributable to owners of the Corporation amounted to $34.5 million, a decrease of $72.0 million compared to a profit last year, due to non-cash impairment charges of $88 million related to the radio operations. Adjusted profit attributable to owners of the Corporation(1)(3) remained comparable to last year;
- Loss per share on a diluted basis was $2.22, a decrease compared to earnings per share of $2.37 last year, due to the non-cash impairment charges related to the radio operations. Adjusted diluted earnings per share(1)(3) rose by 1.3% to $2.43;
- Net capital expenditures(1)(2) amounted to $170.3 million, a 7.0% reduction versus last year. Acquisition of property, plant and equipment amounted to $190.1 million, a decrease of 4.1%;
- Free cash flow(1) of $107.4 million decreased by 1.4%, while cash flows from operating activities decreased by 20.4% to $283.2 million; and
- Declared a quarterly eligible dividend of $0.731 per share, representing a 17.0% increase over last year.
MONTRÉAL, July 13, 2023 /CNW/ - Today, Cogeco Inc. (TSX: CGO) ("Cogeco" or the "Corporation") announced its financial results for the third quarter ended May 31, 2023.
"This quarter, we continued to demonstrate our strong and consistent execution in our fibre network expansion projects while remaining focused on delivering high quality product offerings and distinctive customer service," said Philippe Jetté, President and Chief Executive Officer of Cogeco.
"We are pleased with the performance of our Canadian telecommunications business again this quarter, where Internet customer additions are being driven by solid growth across our traditional and newly served footprints, as well as from our recently acquired oxio brand," continued Mr. Jetté.
"Although our U.S. telecommunications business, Breezeline, continues to face headwinds from the macroeconomic and nationwide competitive environments, our higher value product mix combined with cost efficiency initiatives led to a higher adjusted EBITDA margin over last year and compared to last quarter," added Mr. Jetté.
"At Cogeco Media, in an industry-wide changing advertising market, we are developing innovative digital solutions to create a multi-platform audio content model," continued Mr. Jetté. "Our listener engagement remained strong across many of our stations this quarter, including at 98.5 Montréal, where it remained in the top spot of the Numeris rankings," concluded Mr. Jetté.
Consolidated Financial Highlights
Three months ended May 31 |
2023 |
2022 |
Change |
Change in constant |
(1) |
||
(In thousands of Canadian dollars, except % and per share data) (unaudited) |
$ |
$ |
% |
% |
|||
Revenue |
767,603 |
754,777 |
1.7 |
(1.4) |
|||
Adjusted EBITDA (1) |
355,459 |
353,473 |
0.6 |
(2.2) |
|||
Profit for the period |
33,314 |
108,456 |
(69.3) |
||||
(Loss) profit for the period attributable to owners of the Corporation |
(34,473) |
37,493 |
— |
||||
Adjusted profit attributable to owners of the Corporation (1) (3) |
37,921 |
38,009 |
(0.2) |
||||
Cash flows from operating activities |
283,180 |
355,681 |
(20.4) |
||||
Free cash flow (1) |
107,379 |
108,954 |
(1.4) |
(1.1) |
|||
Free cash flow, excluding network expansion projects (1) |
139,210 |
147,613 |
(5.7) |
(6.1) |
|||
Acquisition of property, plant and equipment |
190,121 |
198,271 |
(4.1) |
||||
Net capital expenditures (1) |
170,258 |
183,107 |
(7.0) |
(10.7) |
|||
Net capital expenditures, excluding network expansion projects (1) |
138,427 |
144,448 |
(4.2) |
(8.2) |
|||
Diluted (loss) earnings per share |
(2.22) |
2.37 |
— |
||||
Adjusted diluted earnings per share (1) (3) |
2.43 |
2.40 |
1.3 |
||||
Operating results
For the third quarter of fiscal 2023:
- Revenue increased by 1.7% to reach $767.6 million. On a constant currency basis, revenue decreased by 1.4%, driven by declines in the American telecommunications segment and in the media activities, partly offset by growth in the Canadian telecommunications segment, which is further explained as follows:
- Canadian telecommunications' revenue increased by 3.2%, mainly driven by the cumulative effect of high-speed Internet service additions over the past year, higher revenue per customer and the oxio acquisition completed on March 3, 2023.
- American telecommunications' revenue decreased by 5.7% on a constant currency basis (increase of 0.5% as reported), mainly due to a lower customer base in Ohio and an overall decline in video and phone service customers, offset in part by a higher revenue per customer and a better product mix.
- Revenue in the media activities decreased by 3.2%.
- Adjusted EBITDA increased by 0.6% to reach $355.5 million. On a constant currency basis, adjusted EBITDA decreased by 2.2%, due to a decline in the American telecommunications segment, while the Canadian telecommunications segment remained stable, as further explained below:
- Canadian telecommunications adjusted EBITDA remained stable as its revenue growth was offset by higher operating expenses to drive customer growth.
- American telecommunications adjusted EBITDA decreased by 2.8%, or 3.6% in constant currency, mainly resulting from lower revenue partly offset by reduced operating expenses.
- Profit for the period amounted to $33.3 million, while the loss for the period attributable to owners of the Corporation amounted to $34.5 million, or $2.22 per diluted share, compared to a profit of $108.5 million, $37.5 million, and $2.37 per diluted share, respectively, in the comparable period of fiscal 2022. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from non-cash impairment charges of $88 million related to the radio operations, higher financial expense and acquisition, integration, restructuring and other costs, partly offset by lower depreciation and amortization expense, income taxes and the appreciation of the US dollar.
- Adjusted profit attributable to owners of the Corporation(3), was $37.9 million, or $2.43 per diluted share(3), compared to $38.0 million, or $2.40 per diluted share, last year.
- Net capital expenditures, which account for network expansion subsidies, were $170.3 million, a decrease of 7.0% compared to $183.1 million in the same period of the prior year. In constant currency, net capital expenditures were $163.5 million, a decrease of 10.7% compared to last year, mainly due to lower capital expenditures following reduced spending, mostly in the Canadian telecommunications segment.
- Excluding network expansion projects, net capital expenditures were $138.4 million, a decrease of 4.2% compared to $144.4 million in the same period of the prior year. In constant currency, net capital expenditures excluding network expansion projects(1) were $132.6 million, a decrease of 8.2% compared to last year.
- Fibre-to-the-home network expansion projects continued in both Canada and the United States, with unprecedented homes passed additions of more than 171,000 during fiscal 2022 and the first nine months of the current fiscal year. These fibre-to-the-home network expansion projects are increasing the Corporation's footprint in the provinces of Québec and Ontario and in several areas adjacent to Breezeline's network in the United States.
- Acquisition of property, plant and equipment decreased by 4.1% to $190.1 million, mainly due to reduced capital spending, mostly in the Canadian telecommunications segment.
- Free cash flow decreased by 1.4%, or 1.1% in constant currency, and amounted to $107.4 million, mainly due to higher financial expense, higher acquisition, integration, restructuring and other costs and lower adjusted EBITDA, partly offset by lower net capital expenditures and current income taxes.
- Free cash flow, excluding network expansion projects decreased by 5.7%, or 6.1% in constant currency, and amounted to $139.2 million.
- Cash flows from operating activities decreased by 20.4% to reach $283.2 million, driven by a net inflow in non-cash operating activities of $20.7 million compared to $51.2 million in the comparative period, resulting mostly from the timing of trade and other payables, as well as an increase in income taxes and interest paid.
- Spectrum licences were acquired in the 2500 MHz and 3500 MHz bands in Québec in relation to our plan to offer mobility services within our operating footprint.
- Cogeco reiterates its fiscal 2023 financial guidelines as issued on January 12, 2023. Furthermore, on June 8, 2023, Cogeco announced that it will provide its fiscal 2024 financial guidelines when it reports its financial results for the fourth quarter of fiscal 2023, which is consistent with industry practice.
- At its July 13, 2023 meeting, the Board of Directors of Cogeco declared a quarterly eligible dividend of $0.731 per share, an increase of 17% compared to $0.625 per share in the comparable quarter of fiscal 2022.
(1) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS financial measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS and other financial measures" section of this press release. |
(2) |
Net capital expenditures are presented net of government subsidies, including the utilization of those received in advance. |
(3) |
Excludes the impact of non-cash impairment charges, and acquisition, integration, restructuring and other costs, net of tax and non-controlling interest. |
Financial highlights
Three and nine months ended May 31 |
2023 |
2022 |
Change |
Change in constant |
(1) (2) |
2023 |
2022 |
Change |
Change in constant |
(1) (2) |
(In thousands of Canadian dollars, except percentages and per share data) |
$ |
$ |
% |
% |
$ |
$ |
% |
% |
||
Operations |
||||||||||
Revenue |
767,603 |
754,777 |
1.7 |
(1.4) |
2,314,484 |
2,248,101 |
3.0 |
(0.2) |
||
Adjusted EBITDA (2) |
355,459 |
353,473 |
0.6 |
(2.2) |
1,081,004 |
1,057,078 |
2.3 |
(0.7) |
||
Acquisition, integration, restructuring and other costs (3) |
11,377 |
2,286 |
— |
21,006 |
22,372 |
(6.1) |
||||
Impairment of goodwill and intangible assets |
88,000 |
— |
— |
88,000 |
— |
— |
||||
Profit for the period |
33,314 |
108,456 |
(69.3) |
259,714 |
346,376 |
(25.0) |
||||
(Loss) profit for the period attributable to owners of the Corporation |
(34,473) |
37,493 |
— |
41,396 |
112,675 |
(63.3) |
||||
Adjusted profit attributable to owners of the Corporation (2) |
37,921 |
38,009 |
(0.2) |
116,292 |
117,225 |
(0.8) |
||||
Cash flow |
||||||||||
Cash flows from operating activities |
283,180 |
355,681 |
(20.4) |
683,844 |
931,791 |
(26.6) |
||||
Free cash flow (2) |
107,379 |
108,954 |
(1.4) |
(1.1) |
335,193 |
398,477 |
(15.9) |
(15.3) |
||
Free cash flow, excluding network expansion projects (2) |
139,210 |
147,613 |
(5.7) |
(6.1) |
475,100 |
494,134 |
(3.9) |
(4.5) |
||
Acquisition of property, plant and equipment |
190,121 |
198,271 |
(4.1) |
598,803 |
502,753 |
19.1 |
||||
Net capital expenditures (2) |
170,258 |
183,107 |
(7.0) |
(10.7) |
524,432 |
467,091 |
12.3 |
7.3 |
||
Net capital expenditures, excluding network expansion projects (2) |
138,427 |
144,448 |
(4.2) |
(8.2) |
384,525 |
371,434 |
3.5 |
(1.3) |
||
Per share data (4) |
||||||||||
(Loss) earnings per share |
||||||||||
Basic |
(2.22) |
2.38 |
— |
2.65 |
7.11 |
(62.7) |
||||
Diluted |
(2.22) |
2.37 |
— |
2.64 |
7.07 |
(62.7) |
||||
Adjusted diluted (2) |
2.43 |
2.40 |
1.3 |
7.41 |
7.35 |
0.8 |
||||
Dividends |
0.731 |
0.625 |
17.0 |
2.193 |
1.875 |
17.0 |
||||
As at |
May 31, 2023 |
August 31, 2022 |
(In thousands of Canadian dollars) |
$ |
$ |
Financial condition |
||
Cash and cash equivalents |
365,665 |
379,001 |
Total assets |
9,877,551 |
9,468,025 |
Long-term debt |
||
Current |
43,064 |
340,468 |
Non-current |
5,105,833 |
4,398,142 |
Net indebtedness (2) |
4,905,659 |
4,545,809 |
Equity attributable to owners of the Corporation |
907,222 |
919,843 |
(1) |
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rate of the comparable periods of the prior year. For the three and nine-month periods ended May 31, 2022, the average foreign exchange rates used for translation were 1.2713 USD/CDN and 1.2660 USD/CDN, respectively. |
(2) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS financial measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS ratios. Net indebtedness is a capital management measure. These indicated terms do not have standardized definitions prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS and other financial measures" section of this press release. |
(3) |
For the three and nine-month periods ended May 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the ongoing integration of past acquisitions and from a retroactive adjustment of $3.3 million recognized during the third quarter of fiscal 2023, in addition to a $5.1 million adjustment recognized in the second quarter, both related to the Copyright Board preliminary conclusions of the 2016-2018 retransmission tariffs, impacting those years and estimated costs for the following years. For the three and nine-month periods ended May 31, 2022, acquisition, integration, restructuring and other costs resulted mostly from costs incurred in connection with the acquisition, completed on September 1, 2021, and integration of the Ohio broadband systems. |
(4) |
Per multiple and subordinate voting share. |
Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Inc.'s ("Cogeco" or the "Corporation") future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements regarding the Corporation's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco believes are reasonable as of the current date. Refer in particular to the "Corporate objectives and strategies" section of the Corporation's 2022 annual MD&A and of the fiscal 2023 third-quarter MD&A, the "Fiscal 2023 financial guidelines" section of the Corporation's 2022 annual MD&A and the "Fiscal 2023 revised financial guidelines" of the fiscal 2023 first-quarter MD&A for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco currently expects. These factors include risks such as competitive risks (including changing competitive ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), human-caused and natural threats to our network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, community acceptance risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation's control. Moreover, the Corporation's radio operations are significantly exposed to advertising budgets from the retail industry, which can fluctuate due to changing economic conditions. For more exhaustive information on these risks and uncertainties, the reader should refer to the "Uncertainties and main risk factors" sections of the Corporation's 2022 annual MD&A and of the fiscal 2023 third-quarter MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release which represent Cogeco's expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the Corporation's MD&A for the three and nine-month periods ended May 31, 2023, the Corporation's condensed interim consolidated financial statements and the notes thereto for the same periods prepared in accordance with International Financial Reporting Standards ("IFRS") and the Corporation's 2022 Annual Report.
This press release includes references to non-IFRS and other financial measures used by Cogeco. These financial measures are reviewed in assessing the performance of Cogeco and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS and other financial measures to the most directly comparable IFRS financial measures are provided below. Certain additional disclosures for non-IFRS and other financial measures used in this press release have been incorporated by reference and can be found in the "Non-IFRS and other financial measures" section of the Corporation's MD&A for the three and nine-month periods ended May 31, 2023, available on SEDAR at www.sedar.com.
Financial measures presented on a constant currency basis for the three and nine-month periods ended May 31, 2023 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.2713 USD/CDN and 1.2660 USD/CDN, respectively.
Consolidated
Three months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
2022 |
Actual |
In |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
767,603 |
(23,039) |
744,564 |
754,777 |
1.7 |
(1.4) |
|||||
Operating expenses |
412,144 |
(13,134) |
399,010 |
401,304 |
2.7 |
(0.6) |
|||||
Adjusted EBITDA |
355,459 |
(9,905) |
345,554 |
353,473 |
0.6 |
(2.2) |
|||||
Free cash flow |
107,379 |
370 |
107,749 |
108,954 |
(1.4) |
(1.1) |
|||||
Net capital expenditures |
170,258 |
(6,761) |
163,497 |
183,107 |
(7.0) |
(10.7) |
|||||
Nine months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
2022 |
Actual |
In constant currency |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
2,314,484 |
(71,231) |
2,243,253 |
2,248,101 |
3.0 |
(0.2) |
|||||
Operating expenses |
1,233,480 |
(40,429) |
1,193,051 |
1,191,023 |
3.6 |
0.2 |
|||||
Adjusted EBITDA |
1,081,004 |
(30,802) |
1,050,202 |
1,057,078 |
2.3 |
(0.7) |
|||||
Free cash flow |
335,193 |
2,353 |
337,546 |
398,477 |
(15.9) |
(15.3) |
|||||
Net capital expenditures |
524,432 |
(23,439) |
500,993 |
467,091 |
12.3 |
7.3 |
|||||
Canadian telecommunications segment
Three months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
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 |
2023 in constant |
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 |
2023 in constant |
2022 |
Actual |
In constant |
||||||
(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 |
2023 in constant |
2022 |
Actual |
In constant |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Revenue |
1,126,570 |
(71,231) |
1,055,339 |
1,095,766 |
2.8 |
(3.7) |
|||||
Operating expenses |
607,237 |
(38,371) |
568,866 |
584,143 |
4.0 |
(2.6) |
|||||
Adjusted EBITDA |
519,333 |
(32,860) |
486,473 |
511,623 |
1.5 |
(4.9) |
|||||
Net capital expenditures |
236,422 |
(14,962) |
221,460 |
227,829 |
3.8 |
(2.8) |
|||||
Adjusted profit attributable to owners of the Corporation
Three months ended May 31 |
Nine months ended May 31 |
|||
2023 |
2022 |
2023 |
2022 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
(Loss) profit for the period attributable to owners of the Corporation |
(34,473) |
37,493 |
41,396 |
112,675 |
Impairment of goodwill and intangible assets |
88,000 |
— |
88,000 |
— |
Acquisition, integration, restructuring and other costs |
11,377 |
2,286 |
21,006 |
22,372 |
Tax impact for the above items |
(21,386) |
(594) |
(23,938) |
(5,750) |
Non-controlling interest impact for the above items |
(5,597) |
(1,176) |
(10,172) |
(12,072) |
Adjusted profit attributable to owners of the Corporation |
37,921 |
38,009 |
116,292 |
117,225 |
Free cash flow reconciliation
Three months ended May 31 |
Nine months ended May 31 |
|||
2023 |
2022 |
2023 |
2022 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Cash flows from operating activities |
283,180 |
355,681 |
683,844 |
931,791 |
Amortization of deferred transaction costs and discounts on long-term debt (1) |
3,353 |
2,944 |
9,460 |
8,896 |
Changes in other non-cash operating activities |
(20,729) |
(51,178) |
115,392 |
(45,472) |
Income taxes paid |
19,166 |
291 |
89,778 |
31,764 |
Current income taxes |
(5,828) |
(17,651) |
(26,450) |
(43,349) |
Interest paid |
64,507 |
49,379 |
176,777 |
123,060 |
Financial expense |
(64,300) |
(45,810) |
(183,812) |
(136,904) |
Net capital expenditures |
(170,258) |
(183,107) |
(524,432) |
(467,091) |
Repayment of lease liabilities |
(1,712) |
(1,595) |
(5,364) |
(4,218) |
Free cash flow |
107,379 |
108,954 |
335,193 |
398,477 |
(1) |
Included within financial expense. |
Net capital expenditures reconciliation
Three months ended May 31 |
Nine months ended May 31 |
|||
2023 |
2022 |
2023 |
2022 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Acquisition of property, plant and equipment |
190,121 |
198,271 |
598,803 |
502,753 |
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period |
(19,863) |
(15,164) |
(74,371) |
(35,662) |
Net capital expenditures |
170,258 |
183,107 |
524,432 |
467,091 |
Adjusted EBITDA reconciliation
Three months ended May 31 |
Nine months ended May 31 |
|||
2023 |
2022 |
2023 |
2022 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Profit for the period |
33,314 |
108,456 |
259,714 |
346,376 |
Income taxes |
2,271 |
29,369 |
60,552 |
79,934 |
Financial expense |
64,300 |
45,810 |
183,812 |
136,904 |
Impairment of goodwill and intangible assets |
88,000 |
— |
88,000 |
— |
Depreciation and amortization |
156,197 |
167,552 |
467,920 |
471,492 |
Acquisition, integration, restructuring and other costs |
11,377 |
2,286 |
21,006 |
22,372 |
Adjusted EBITDA |
355,459 |
353,473 |
1,081,004 |
1,057,078 |
Net capital expenditures
Three months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
2022 |
Actual |
In constant currency |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Net capital expenditures |
170,258 |
(6,761) |
163,497 |
183,107 |
(7.0) |
(10.7) |
|||||
Net capital expenditures in connection with network expansion projects |
31,831 |
(976) |
30,855 |
38,659 |
(17.7) |
(20.2) |
|||||
Net capital expenditures, excluding network expansion projects |
138,427 |
(5,785) |
132,642 |
144,448 |
(4.2) |
(8.2) |
|||||
Nine months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
2022 |
Actual |
In constant currency |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Net capital expenditures |
524,432 |
(23,439) |
500,993 |
467,091 |
12.3 |
7.3 |
|||||
Net capital expenditures in connection with network expansion projects |
139,907 |
(5,660) |
134,247 |
95,657 |
46.3 |
40.3 |
|||||
Net capital expenditures, excluding network expansion projects |
384,525 |
(17,779) |
366,746 |
371,434 |
3.5 |
(1.3) |
|||||
Free cash flow
Three months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
2022 |
Actual |
In constant |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Free cash flow |
107,379 |
370 |
107,749 |
108,954 |
(1.4) |
(1.1) |
|||||
Net capital expenditures in connection with network expansion projects |
31,831 |
(976) |
30,855 |
38,659 |
(17.7) |
(20.2) |
|||||
Free cash flow, excluding network expansion projects |
139,210 |
(606) |
138,604 |
147,613 |
(5.7) |
(6.1) |
|||||
Nine months ended May 31 |
|||||||||||
Change |
|||||||||||
2023 |
Foreign |
2023 in constant |
2022 |
Actual |
In constant |
||||||
(In thousands of Canadian dollars, except percentages) |
$ |
$ |
$ |
$ |
% |
% |
|||||
Free cash flow |
335,193 |
2,353 |
337,546 |
398,477 |
(15.9) |
(15.3) |
|||||
Net capital expenditures in connection with network expansion projects |
139,907 |
(5,660) |
134,247 |
95,657 |
46.3 |
40.3 |
|||||
Free cash flow, excluding network expansion projects |
475,100 |
(3,307) |
471,793 |
494,134 |
(3.9) |
(4.5) |
|||||
Additional information relating to the Corporation is available on the SEDAR website at www.sedar.com and on the Corporation's website at corpo.cogeco.com.
Rooted in the communities it serves, Cogeco Inc. is a growing competitive force in the North American telecommunications sector, serving 1.6 million residential and business customers. Its Cogeco Communications Inc. subsidiary provides Internet, video and phone services in the provinces of Québec and Ontario as well as in thirteen states in the United States through its business units Cogeco Connexion and Breezeline. Through Cogeco Media, it owns and operates 21 radio stations primarily in the province of Québec as well as a news agency. Cogeco's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CGO). The subordinate voting shares of Cogeco Communications Inc. are also listed on the Toronto Stock Exchange (TSX: CCA).
For information:
Investors
Patrice Ouimet
Senior Vice President and Chief Financial Officer
Cogeco Inc.
Tel.: 514-764-4700
[email protected]
Media
Marie-Hélène Labrie
Senior Vice President and Chief Public Affairs, Communications and Strategy Officer
Cogeco Inc.
Tel.: 514-764-4700
[email protected]
Conference Call: |
Friday, July 14, 2023 at 11:00 a.m. (EDT) |
|
The conference call will be available on Cogeco's website at https://corpo.cogeco.com/cgo/en/investors/investor-relations/. Financial analysts will be able to access the conference call and ask questions. Media representatives may attend as listeners only. The conference replay will be available on Cogeco's website for a three-month period. |
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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 |
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Toll Free - North America: 1 888-886-7786 |
To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.
SOURCE Cogeco Inc.
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