Canada NewsWire
MONTRÉAL, Oct. 30, 2019
MONTRÉAL, Oct. 30, 2019 /CNW Telbec/ - Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the fourth quarter ended August 31, 2019, in accordance with International Financial Reporting Standards ("IFRS").
Following Cogeco Communications' completion, on April 30, 2019, of the sale of Cogeco Peer 1 Inc., its Business information and communications technology ("Business ICT") services subsidiary, the operating and financial results from this subsidiary for the current and comparable periods are presented as discontinued operations separate from the Corporation's continuing operations.
For the fourth quarter of fiscal 2019:
(1) | The 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 details, please consult the "Non-IFRS financial measures" section of the MD&A. |
"As we report our results of the last quarter of fiscal year 2019 we are pleased with Cogeco Communications' overall performance," declared Philippe Jetté, President and Chief Executive Officer of Cogeco Communications Inc.
"Cogeco Connexion's adjusted EBITDA increased in the fourth quarter compared to last year thanks to our cost optimization efforts," added Mr. Jetté. "I am also pleased to report that our Canadian broadband services segment experienced a stabilization of its primary service units, made good progress with its digitization activities and is getting ready to launch its IPTV platform."
"We continue to be very satisfied with results at Atlantic Broadband," concluded Mr. Jetté. "Our American broadband services segment closed the fiscal year with healthy increases in revenue, adjusted EBITDA and primary service units. We are pleased with our expansion in the Florida market and are looking for more acquisitions now that our recent acquisitions are fully integrated."
Fiscal 2020 Financial Guidelines
Cogeco Communications maintains its 2020 preliminary financial guidelines as issued on July 10, 2019. Please consult the "Fiscal 2020 financial guidelines" section of the Corporation's 2019 Annual Report for further details.
ABOUT COGECO COMMUNICATIONS
Cogeco Communications Inc. is a communications corporation. It is the 8th largest cable operator in North America, operating in Canada under the Cogeco Connexion name in Québec and Ontario, and along the East Coast of the United States under the Atlantic Broadband brand (in 11 states from Maine to Florida). The Corporation provides residential and business customers with Internet, video and telephony services through its two-way broadband fibre networks. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
Analyst Conference Call: | Thursday, October 31, 2019 at 11:00 a.m. (Eastern Daylight Time) Media representatives may attend as listeners only. |
Please use the following dial-in number to have access to the conference call by dialing five minutes before the start of the conference: | |
Canada/United States Access Number: 1-877-291-4570 International Access Number: + 1-647-788-4919 | |
In order to join this conference, participants are only required to provide the operator with the company name, that is, Cogeco Inc. or Cogeco Communications Inc. | |
By Internet at http://corpo.cogeco.com/cca/en/investors/investor-relations |
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
Three months ended | Years ended | |||||||||||||||||||
August 31, | August 31, | Change | Change in | Foreign | August 31, | August 31, | Change | Change in | Foreign | |||||||||||
(in thousands of dollars, except percentages and per share data) | $ | $ | % | % | $ | $ | $ | % | % | $ | ||||||||||
Operations | ||||||||||||||||||||
Revenue | 583,673 | 566,184 | 3.1 | 2.7 | 2,427 | 2,331,820 | 2,147,404 | 8.6 | 6.8 | 37,433 | ||||||||||
Adjusted EBITDA(3) | 275,610 | 263,411 | 4.6 | 4.3 | 986 | 1,107,940 | 1,006,818 | 10.0 | 8.5 | 15,797 | ||||||||||
Adjusted EBITDA margin(3) | 47.2 | % | 46.5 | % | 47.5 | % | 46.9 | % | ||||||||||||
Integration, restructuring and acquisition costs(4) | 712 | 1,677 | (57.5) | 11,150 | 20,328 | (45.1) | ||||||||||||||
Profit for the period from continuing operations | 92,403 | 75,870 | 21.8 | 356,908 | 384,578 | (7.2) | ||||||||||||||
Profit (loss) for the period from discontinued operations | 1,920 | (1,052) | — | 75,380 | (24,381) | — | ||||||||||||||
Profit for the period | 94,323 | 74,818 | 26.1 | 432,288 | 360,197 | 20.0 | ||||||||||||||
Profit for the period attributable to owners of the Corporation | 89,770 | 71,701 | 25.2 | 415,353 | 350,833 | 18.4 | ||||||||||||||
Cash flow | ||||||||||||||||||||
Cash flow from operating activities | 304,702 | 255,438 | 19.3 | 868,711 | 620,748 | 39.9 | ||||||||||||||
Acquisitions of property, plant and equipment(5) | 145,099 | 162,319 | (10.6) | (11.2) | 929 | 434,545 | 457,808 | (5.1) | (7.1) | 9,342 | ||||||||||
Free cash flow(3) | 84,250 | 47,739 | 76.5 | 76.9 | (221) | 454,059 | 301,850 | 50.4 | 50.0 | 1,330 | ||||||||||
Capital intensity(3) | 24.9 | % | 28.7 | % | 18.6 | % | 21.3 | % | ||||||||||||
Financial condition | ||||||||||||||||||||
Cash and cash equivalents | 556,504 | 84,725 | — | |||||||||||||||||
Total assets | 6,951,079 | 7,180,043 | (3.2) | |||||||||||||||||
Indebtedness(6) | 3,454,923 | 3,914,711 | (11.7) | |||||||||||||||||
Equity attributable to owners of the Corporation | 2,199,789 | 1,997,169 | 10.1 | |||||||||||||||||
Per Share Data(7) | ||||||||||||||||||||
Earnings (loss) per share | ||||||||||||||||||||
Basic | ||||||||||||||||||||
From continuing operations | 1.78 | 1.48 | 20.3 | 6.89 | 7.61 | (9.5) | ||||||||||||||
From discontinued operations | 0.04 | (0.02) | — | 1.53 | (0.49) | — | ||||||||||||||
From continuing and discontinued operations | 1.82 | 1.45 | 25.5 | 8.41 | 7.12 | 18.1 | ||||||||||||||
Diluted | ||||||||||||||||||||
From continuing operations | 1.77 | 1.47 | 20.4 | 6.83 | 7.55 | (9.5) | ||||||||||||||
From discontinued operations | 0.04 | (0.02) | — | 1.51 | (0.49) | — | ||||||||||||||
From continuing and discontinued operations | 1.80 | 1.44 | 25.0 | 8.35 | 7.06 | 18.3 | ||||||||||||||
Dividends | 0.525 | 0.475 | 10.5 | 2.10 | 1.90 | 10.5 | ||||||||||||||
(1) | Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections of the MD&A of the Corporation's 2019 Annual Report. |
(2) | Key performance indicators presented on a constant currency basis are obtained by translating financial results of the current periods denominated in US dollars at the foreign exchange rates of the comparable periods of the prior year. For the three-month period and year ended August 31, 2018, the average foreign exchange rates used for translation were 1.3100 USD/CDN and 1.2773 USD/CDN, respectively. |
(3) | The indicated terms do not have standardized definitions prescribed by the International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable to similar measures presented by other companies. For more details, please consult the "Non-IFRS financial measures" section of the MD&A of the Corporation's 2019 Annual Report. |
(4) | For the year ended August 31, 2019, integration, restructuring and acquisition costs were mostly due to restructuring costs in the Canadian broadband services segment incurred in the first half of fiscal 2019 related to an operational optimization program. In addition, acquisition and integration costs were incurred by the American broadband services segment related to the FiberLight acquisition. For the year ended August 31, 2018, integration, restructuring and acquisition costs were related to the MetroCast acquisition completed on January 4, 2018. |
(5) | For the three-month period and year ended August 31, 2019, acquisitions of property, plant and equipment, intangible and other assets in constant currency amounted to $144.2 million and $425.2 million, respectively. |
(6) | Indebtedness is defined as the aggregate of bank indebtedness, balance due on a business combination and principal on long-term debt. |
(7) | Per multiple and subordinate voting share. |
Source: | Cogeco Communications Inc. |
Patrice Ouimet | |
Senior Vice President and Chief Financial Officer | |
Tel.: 514-764-4700 | |
Information: | Media |
Marie-Hélène Labrie | |
Senior Vice-President, Chief Public Affairs and Communications Officer | |
Tel.: 514-764-4700 |
SOURCE Cogeco Communications Inc.
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