- New operating model focused on customer experience and
operational excellence to power future growth.
- Expanded our customer value proposition with Breezeline
Mobile launched across most of Breezeline's U.S. broadband
footprint.
- Revenue increased by 1.3% compared to the same period last
year to $777.2 million, reflecting
revenue growth at Cogeco Connexion and stable revenue at
Breezeline, in line with expectations.
- Adjusted EBITDA(1) of $369.8 million increased by 4.0% over last
year.
- Profit for the period amounted to $75.3 million, an increase of $42.0 million, of which $19.0 million was attributable to owners of the
Corporation.
- Earnings per share on a diluted basis rose to $1.97 from a loss of $2.22 in the third quarter of fiscal 2023, while
adjusted diluted earnings per share(1)(3) rose by 24.3%
to $3.02, which excludes the impact
of last year's pre-tax non-cash impairment charges, restructuring
and certain other costs.
- Free cash flow(1) amounted to $89.3 million, a decrease of 16.9% compared to
last year reflecting restructuring costs recognized during the
quarter, while cash flow from operating activities increased by
18.3% to $335.1 million due to
the timing of certain working capital items. Free cash flow,
excluding network expansion projects(1) decreased by
18.3% to $113.7 million.
- Cogeco maintains its fiscal 2024 financial
guidelines.
- A quarterly dividend of $0.854
per share was declared, representing a 16.8% increase over the
prior year.
MONTRÉAL, July 11,
2024 /CNW/ - Today, Cogeco Inc. (TSX: CGO)
("Cogeco" or the "Corporation") announced its financial results for
the third quarter ended May 31,
2024.
"We demonstrated solid performance again in the third quarter of
2024, with revenue growth and healthy expansion of our adjusted
EBITDA margin due to an improving product mix, combined with an
acceleration of our efforts to drive operational efficiency," said
Frédéric Perron, President and CEO. "In the third quarter, we
implemented the initial steps of a new operating model designed to
deliver future growth and increase our focus on customer experience
and operational excellence.
"Growth in our Canadian telecommunications business was driven
by the ongoing expansion of our Internet subscriber base under our
Cogeco Connexion and oxio brands. We continue to be impressed
by oxio's performance and its robust adoption by consumers and are
cascading our learnings from this digital brand across our
organization.
"In the U.S., we rolled out Breezeline Mobile across most of our
footprint, which will provide an even stronger incentive for new
and existing customers to bundle their digital services with us. In
addition, our Internet-first strategy and persistent endeavors to
drive operational efficiency helped deliver adjusted EBITDA growth
over last year.
"At Cogeco Media, our innovative digital solutions and
multi-platform digital content helped generate another quarter of
audio sales growth. These gains were driven by strong listener
engagement across many of our stations, including at 98.5 Montréal,
which remained stalwart in the spring 2024 Numeris ratings as
Canada's most listened to radio
station.
"Lastly, the new operating model and transformation we began
during the quarter will allow us to sustain our growth, take our
competitive agility to new heights, better serve our customers, and
continue to build a strong culture where our colleagues thrive and
succeed. We expect it to result in significant value creation for
Cogeco over the coming years as the benefits of the transformation
are realized."
Consolidated Financial Highlights
|
Three months ended
May 31
|
2024
|
|
2023
|
|
Change
|
Change in
constant
currency
|
(1)
|
|
(In thousands of
Canadian dollars, except % and per share data)
(unaudited)
|
$
|
|
$
|
|
%
|
%
|
|
|
Revenue
|
777,249
|
|
767,603
|
|
1.3
|
1.0
|
|
|
Adjusted EBITDA
(1)
|
369,786
|
|
355,459
|
|
4.0
|
3.8
|
|
|
Profit for the
period
|
75,285
|
|
33,314
|
|
—
|
|
|
|
Profit (loss) for the
period attributable to owners of the Corporation
|
18,960
|
|
(34,473)
|
|
—
|
|
|
|
Adjusted profit
attributable to owners of the Corporation
(1)(3)
|
29,102
|
|
37,921
|
|
(23.3)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
335,126
|
|
283,180
|
|
18.3
|
|
|
|
Free cash flow
(1)
|
89,276
|
|
107,379
|
|
(16.9)
|
(16.8)
|
|
|
Free cash flow,
excluding network expansion projects (1)
|
113,709
|
|
139,210
|
|
(18.3)
|
(18.3)
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
172,404
|
|
190,121
|
|
(9.3)
|
|
|
|
Net capital
expenditures (1)(2)
|
169,754
|
|
170,258
|
|
(0.3)
|
(0.7)
|
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
145,321
|
|
138,427
|
|
5.0
|
4.6
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
1.97
|
|
(2.22)
|
|
—
|
|
|
|
Adjusted diluted
earnings per share (1)(3)
|
3.02
|
|
2.43
|
|
24.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the third quarter of fiscal 2024 ended on May 31, 2024:
- Revenue increased by 1.3% to $777.2
million. On a constant currency basis(1), revenue
increased by 1.0% driven by revenue growth in the Canadian
telecommunications segment, while revenue remained stable in the
American telecommunications segment, as explained below.
- Canadian telecommunications' revenue increased by 2.2%, mostly
driven by the cumulative effect of high-speed Internet service
additions over the past year as well as the Niagara Regional
Broadband Network acquisition ("NRBN") completed on February 5, 2024.
- American telecommunications' revenue remained stable as
reported and in constant currency, mainly resulting from a higher
revenue per subscriber and a better product mix resulting from
customers subscribing to increasingly fast Internet speeds, offset
by lower video subscriptions and a lower Internet subscriber base
over the past year, with an increasing proportion of customers only
subscribing to Internet services.
- Revenue in the media activities increased by 3.3%.
- Adjusted EBITDA increased by 4.0% to $369.8 million. On a constant currency basis,
adjusted EBITDA increased by 3.8%, mainly due to higher adjusted
EBITDA in both the American and Canadian telecommunications
segments, as explained below, and lower corporate costs primarily
due to the timing of certain operating expenses.
- American telecommunications adjusted EBITDA increased by 4.5%,
or 3.9% in constant currency, mostly due to lower operating
expenses driven by cost reduction initiatives and operating
efficiencies.
- Canadian telecommunications adjusted EBITDA increased by 2.9%,
mainly due to revenue growth, partly offset by higher sales and
other operating expenses to drive subscriber growth.
- Profit for the period amounted to $75.3
million, of which $19.0
million, or $1.97 per diluted
share, was attributable to owners of the Corporation compared to a
profit of $33.3 million, and a loss
of $34.5 million, or $2.22 per diluted share, respectively, in the
comparable period of fiscal 2023. The increases in profit for the
period and profit attributable to owners of the Corporation
resulted mainly from last year's non-cash impairment charges of
$88 million related to the radio
operations and higher adjusted EBITDA, partly offset by higher
restructuring costs, depreciation and amortization expense and
income tax expense.
- Adjusted profit attributable to owners of the
Corporation(3) was $29.1
million, or $3.02 per diluted
share(3), compared to $37.9
million, or $2.43 per diluted
share, last year. The increase of adjusted diluted earnings per
share over last year reflects the benefit of the Corporation's
repurchase and cancellation of shares.
- Net capital expenditures were $169.8 million, a decrease of 0.3% compared
to $170.3 million in the same period
of the prior year. In constant currency, net capital
expenditures(1) were $169.1 million, a decrease of 0.7% compared
to last year, mainly due to lower spending in the American
telecommunications segment as expected due to the timing of network
expansion projects, partly offset by higher purchases of customer
premise equipment and other capital spending related to
fibre-to-the-home network expansions in the Canadian
telecommunications segment.
- Excluding network expansion projects, net capital expenditures
were $145.3 million, an increase of
5.0% compared to $138.4 million in
the same period of the prior year. In constant currency, net
capital expenditures, excluding network expansion
projects(1) were $144.8 million, an increase of 4.6% compared
to last year.
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States, with homes passed additions
close to 44,000(4) during the first nine months of
fiscal 2024.
- Acquisition of property, plant and equipment decreased by 9.3%
to $172.4 million, mainly resulting
from lower spending.
- Free cash flow decreased by 16.9%, or 16.8% in constant
currency, and amounted to $89.3
million as reported and in constant currency, mainly due to
higher restructuring costs. Free cash flow, excluding network
expansion projects decreased by 18.3% as reported and in constant
currency, and amounted to $113.7
million.
- Cash flows from operating activities increased by 18.3% to
$335.1 million, mostly due to the
timing of payments of trade and other payables and the collection
of trade accounts receivable, lower income taxes paid and higher
adjusted EBITDA.
- Cogeco maintains its fiscal 2024 financial guidelines as issued
on November 1, 2023.
- At its July 11, 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, and related borrowing costs, of spectrum
licences, and 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.
|
|
(4)
|
Organic growth
calculated by excluding additions resulting from
acquisitions.
|
Financial highlights
|
Three and nine
months ended May 31
|
2024
|
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
2024
|
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
|
(In thousands of
Canadian dollars,
except % and per share data)
|
$
|
$
|
%
|
%
|
|
$
|
$
|
%
|
%
|
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
777,249
|
767,603
|
1.3
|
1.0
|
|
2,305,329
|
2,314,484
|
(0.4)
|
(0.6)
|
|
|
Adjusted EBITDA
(2)
|
369,786
|
355,459
|
4.0
|
3.8
|
|
1,083,601
|
1,081,004
|
0.2
|
—
|
|
|
Acquisition,
integration, restructuring
and other costs (3)
|
46,634
|
11,377
|
—
|
|
|
51,121
|
21,006
|
—
|
|
|
|
Impairment of goodwill
and
intangible assets
|
—
|
88,000
|
—
|
|
|
—
|
88,000
|
—
|
|
|
|
Profit for the
period
|
75,285
|
33,314
|
—
|
|
|
267,944
|
259,714
|
3.2
|
|
|
|
Profit (loss) for the
period
attributable to owners of the
Corporation
|
18,960
|
(34,473)
|
—
|
|
|
77,498
|
41,396
|
87.2
|
|
|
|
Adjusted profit
attributable to
owners of the Corporation (2)(4)
|
29,102
|
37,921
|
(23.3)
|
|
|
93,486
|
116,292
|
(19.6)
|
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
335,126
|
283,180
|
18.3
|
|
|
858,427
|
683,844
|
25.5
|
|
|
|
Free cash flow
(2)
|
89,276
|
107,379
|
(16.9)
|
(16.8)
|
|
329,923
|
335,193
|
(1.6)
|
(1.7)
|
|
|
Free cash flow,
excluding network
expansion projects (2)
|
113,709
|
139,210
|
(18.3)
|
(18.3)
|
|
410,406
|
475,100
|
(13.6)
|
(13.8)
|
|
|
Acquisition of property, plant and
equipment
|
172,404
|
190,121
|
(9.3)
|
|
|
507,427
|
598,803
|
(15.3)
|
|
|
|
Net capital
expenditures (2)(5)
|
169,754
|
170,258
|
(0.3)
|
(0.7)
|
|
488,177
|
524,432
|
(6.9)
|
(7.1)
|
|
|
Net capital
expenditures, excluding
network expansion projects (2)
|
145,321
|
138,427
|
5.0
|
4.6
|
|
407,694
|
384,525
|
6.0
|
5.8
|
|
|
Per share data
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.99
|
(2.22)
|
—
|
|
|
6.58
|
2.65
|
—
|
|
|
|
Diluted
|
1.97
|
(2.22)
|
—
|
|
|
6.52
|
2.64
|
—
|
|
|
|
Adjusted diluted
(2)(4)
|
3.02
|
2.43
|
24.3
|
|
|
7.87
|
7.41
|
6.2
|
|
|
|
Dividends per
share
|
0.854
|
0.731
|
16.8
|
|
|
2.562
|
2.193
|
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 and nine-month periods ended May
31, 2023, the average foreign exchange rates used for translation
were 1.3562 USD/CDN and 1.3513 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. 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, 2024, acquisition, integration,
restructuring and other costs were mostly related to restructuring
costs recognized during the third quarter of fiscal 2024. For the
three and nine-month periods ended May 31, 2023, acquisition,
integration, restructuring and other costs resulted mostly from
costs related to the integration of past acquisitions and from a
$3.3 million retroactive adjustment recognized during the third
quarter, in addition to a $5.1 million adjustment recognized during
the second quarter following the Copyright Board preliminary
conclusions on the redetermination of the 2014-2018 royalty rates,
of which $4.2 million was reversed during the second quarter of
fiscal 2024 following the Copyright Board decision issued in
January 2024.
|
|
(4)
|
Excludes the impact of
non-cash impairment charges, 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, and related borrowing costs, 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
|
May 31,
2024
|
August 31,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Financial
condition
|
|
|
|
Cash and cash
equivalents
|
55,135
|
363,854
|
|
Total assets
|
9,878,343
|
9,869,778
|
|
Long-term
debt
|
|
|
|
Current
|
79,403
|
43,325
|
|
Non-current
|
5,026,116
|
5,045,672
|
|
Net indebtedness
(1)
|
5,127,971
|
4,817,113
|
|
Equity attributable to
owners of the Corporation
|
811,526
|
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 and nine-month
periods ended May 31, 2024, 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 relating to 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
third-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 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" section of the Corporation's 2023 annual
MD&A and of the fiscal 2024 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 and the forward-looking
statements contained in this press release 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, 2024, 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 and nine-month periods ended May 31, 2024,
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 and nine-month periods ended May
31, 2024 are translated at the average foreign exchange rate
of the comparable periods of the prior year, which were
1.3562 USD/CDN and 1.3513 USD/CDN, respectively.
Constant currency basis and foreign exchange impact
reconciliation
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
777,249
|
|
(1,802)
|
|
775,447
|
|
767,603
|
|
1.3
|
1.0
|
|
Operating
expenses
|
407,463
|
|
(934)
|
|
406,529
|
|
412,144
|
|
(1.1)
|
(1.4)
|
|
Adjusted
EBITDA
|
369,786
|
|
(868)
|
|
368,918
|
|
355,459
|
|
4.0
|
3.8
|
|
Free cash
flow
|
89,276
|
|
50
|
|
89,326
|
|
107,379
|
|
(16.9)
|
(16.8)
|
|
Net capital
expenditures
|
169,754
|
|
(622)
|
|
169,132
|
|
170,258
|
|
(0.3)
|
(0.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
2,305,329
|
|
(5,293)
|
|
2,300,036
|
|
2,314,484
|
|
(0.4)
|
(0.6)
|
|
Operating
expenses
|
1,221,728
|
|
(2,887)
|
|
1,218,841
|
|
1,233,480
|
|
(1.0)
|
(1.2)
|
|
Adjusted
EBITDA
|
1,083,601
|
|
(2,406)
|
|
1,081,195
|
|
1,081,004
|
|
0.2
|
—
|
|
Free cash
flow
|
329,923
|
|
(470)
|
|
329,453
|
|
335,193
|
|
(1.6)
|
(1.7)
|
|
Net capital
expenditures
|
488,177
|
|
(1,086)
|
|
487,091
|
|
524,432
|
|
(6.9)
|
(7.1)
|
|
|
|
|
|
|
|
|
|
|
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
381,877
|
|
—
|
|
381,877
|
|
373,743
|
|
2.2
|
2.2
|
|
Operating
expenses
|
180,204
|
|
(31)
|
|
180,173
|
|
177,794
|
|
1.4
|
1.3
|
|
Adjusted
EBITDA
|
201,673
|
|
31
|
|
201,704
|
|
195,949
|
|
2.9
|
2.9
|
|
Net capital
expenditures
|
91,093
|
|
(258)
|
|
90,835
|
|
84,415
|
|
7.9
|
7.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
1,131,804
|
|
—
|
|
1,131,804
|
|
1,114,161
|
|
1.6
|
1.6
|
|
Operating
expenses
|
535,018
|
|
(159)
|
|
534,859
|
|
521,534
|
|
2.6
|
2.6
|
|
Adjusted
EBITDA
|
596,786
|
|
159
|
|
596,945
|
|
592,627
|
|
0.7
|
0.7
|
|
Net capital
expenditures
|
285,274
|
|
(218)
|
|
285,056
|
|
281,036
|
|
1.5
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
368,706
|
|
(1,802)
|
|
366,904
|
|
368,042
|
|
0.2
|
(0.3)
|
|
Operating
expenses
|
190,327
|
|
(887)
|
|
189,440
|
|
197,273
|
|
(3.5)
|
(4.0)
|
|
Adjusted
EBITDA
|
178,379
|
|
(915)
|
|
177,464
|
|
170,769
|
|
4.5
|
3.9
|
|
Net capital
expenditures
|
72,782
|
|
(349)
|
|
72,433
|
|
82,923
|
|
(12.2)
|
(12.7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
1,096,969
|
|
(5,293)
|
|
1,091,676
|
|
1,126,570
|
|
(2.6)
|
(3.1)
|
|
Operating
expenses
|
574,070
|
|
(2,716)
|
|
571,354
|
|
607,237
|
|
(5.5)
|
(5.9)
|
|
Adjusted
EBITDA
|
522,899
|
|
(2,577)
|
|
520,322
|
|
519,333
|
|
0.7
|
0.2
|
|
Net capital
expenditures
|
191,490
|
|
(854)
|
|
190,636
|
|
236,422
|
|
(19.0)
|
(19.4)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the Corporation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Profit (loss) for
the period attributable to owners of the Corporation
|
18,960
|
(34,473)
|
77,498
|
41,396
|
|
Impairment of goodwill
and intangible assets
|
—
|
88,000
|
—
|
88,000
|
|
Acquisition,
integration, restructuring and other costs
|
46,634
|
11,377
|
51,121
|
21,006
|
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
|
Tax impact for the
above items
|
(12,337)
|
(21,386)
|
(17,978)
|
(23,938)
|
|
Non-controlling
interest impact for the above items
|
(24,155)
|
(5,597)
|
(34,035)
|
(10,172)
|
|
Adjusted profit
attributable to owners of the Corporation
|
29,102
|
37,921
|
93,486
|
116,292
|
|
|
|
|
|
|
(1) Included
within financial expense.
|
Free cash flow reconciliation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Cash flows from
operating activities
|
335,126
|
283,180
|
858,427
|
683,844
|
|
Changes in other
non-cash operating activities
|
(73,787)
|
(20,729)
|
(14,195)
|
115,392
|
|
Income taxes paid
(received)
|
3,502
|
19,166
|
(1,234)
|
89,778
|
|
Current income
taxes
|
(3,390)
|
(5,828)
|
(20,313)
|
(26,450)
|
|
Interest
paid
|
65,253
|
64,507
|
201,133
|
176,777
|
|
Financial
expense
|
(67,109)
|
(64,300)
|
(222,211)
|
(183,812)
|
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
2,329
|
3,353
|
7,079
|
9,460
|
|
Net capital
expenditures (2)
|
(169,754)
|
(170,258)
|
(488,177)
|
(524,432)
|
|
Repayment of lease
liabilities
|
(2,894)
|
(1,712)
|
(7,466)
|
(5,364)
|
|
Free cash
flow
|
89,276
|
107,379
|
329,923
|
335,193
|
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases, and related borrowing costs, 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 May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Acquisition of
property, plant and equipment
|
172,404
|
190,121
|
507,427
|
598,803
|
|
Subsidies received in
advance recognized as a reduction of the cost of
property, plant and equipment during the
period
|
(2,650)
|
(19,863)
|
(19,250)
|
(74,371)
|
|
Net capital
expenditures
|
169,754
|
170,258
|
488,177
|
524,432
|
|
|
|
|
|
Adjusted EBITDA reconciliation
|
|
|
|
|
|
Three months ended May
31
|
Nine months ended May
31
|
|
2024
|
2023
|
2024
|
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Profit for the
period
|
75,285
|
33,314
|
267,944
|
259,714
|
|
Income taxes
|
11,172
|
2,271
|
47,546
|
60,552
|
|
Financial
expense
|
67,109
|
64,300
|
222,211
|
183,812
|
|
Impairment of goodwill
and intangible assets
|
—
|
88,000
|
—
|
88,000
|
|
Depreciation and
amortization
|
169,586
|
156,197
|
494,779
|
467,920
|
|
Acquisition,
integration, restructuring and other costs
|
46,634
|
11,377
|
51,121
|
21,006
|
|
Adjusted
EBITDA
|
369,786
|
355,459
|
1,083,601
|
1,081,004
|
|
|
|
|
|
Net capital expenditures and free cash flow excluding network
expansion projects reconciliations
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Net capital
expenditures
|
169,754
|
|
(622)
|
|
169,132
|
|
170,258
|
|
(0.3)
|
(0.7)
|
|
Net capital
expenditures in connection with
network expansion projects
|
24,433
|
|
(53)
|
|
24,380
|
|
31,831
|
|
(23.2)
|
(23.4)
|
|
Net capital
expenditures, excluding network
expansion projects
|
145,321
|
|
(569)
|
|
144,752
|
|
138,427
|
|
5.0
|
4.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Net capital
expenditures
|
488,177
|
|
(1,086)
|
|
487,091
|
|
524,432
|
|
(6.9)
|
(7.1)
|
|
Net capital
expenditures in connection with
network expansion projects
|
80,483
|
|
(204)
|
|
80,279
|
|
139,907
|
|
(42.5)
|
(42.6)
|
|
Net capital
expenditures, excluding network
expansion projects
|
407,694
|
|
(882)
|
|
406,812
|
|
384,525
|
|
6.0
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Free cash
flow
|
89,276
|
|
50
|
|
89,326
|
|
107,379
|
|
(16.9)
|
(16.8)
|
|
Net capital
expenditures in connection with
network expansion projects
|
24,433
|
|
(53)
|
|
24,380
|
|
31,831
|
|
(23.2)
|
(23.4)
|
|
Free cash flow,
excluding network expansion
projects
|
113,709
|
|
(3)
|
|
113,706
|
|
139,210
|
|
(18.3)
|
(18.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended May
31
|
2024
|
|
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except
percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Free cash
flow
|
329,923
|
|
(470)
|
|
329,453
|
|
335,193
|
|
(1.6)
|
(1.7)
|
|
Net capital
expenditures in connection with
network expansion projects
|
80,483
|
|
(204)
|
|
80,279
|
|
139,907
|
|
(42.5)
|
(42.6)
|
|
Free cash flow,
excluding network expansion
projects
|
410,406
|
|
(674)
|
|
409,732
|
|
475,100
|
|
(13.6)
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
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
subscribers. Its Cogeco Communications Inc. subsidiary provides
Internet, video and wireline phone services in Canada, and in thirteen states in the United States under the Cogeco Connexion,
oxio and Breezeline brand names. Breezeline also offers wireless
services in most of the U.S. states in which it operates. 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
Troy
Crandall
Head, Investor Relations
Cogeco Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com
Media
Youann Blouin
Director, Media Relations & Strategic Communications
Cogeco Inc.
Tel.: 514 297-2853
youann.blouin@cogeco.com
|
Conference
Call:
|
Friday, July
12th, 2024 at 11:00
a.m. (Eastern Daylight Time)
|
|
|
|
|
|
A live audio of the
analyst conference call will be available on both the Investor
Relations and the Events and Presentations pages 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 conference call 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
289 514-5100
|
|
|
Toll Free - North
America: 1 800 717-1738
|
|
|
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.