- Revenue increased by $3.0 million, or 0.5%, to reach $586.1 million;
- Free cash flow(1) remained essentially the same at $109.0 million;
- Adjusted EBITDA(1) reached $256.4 million, decreasing by $4.9 million or 1.9%, compared to the first quarter of fiscal 2017; and
- A quarterly eligible dividend of $0.39 per share was declared, an increase of 14.7% compared to the first quarter of fiscal 2017.
MONTREAL, QUEBEC--(Marketwired - Jan 10, 2018) - Today, Cogeco Inc. (TSX:CGO) ("Cogeco" or the "Corporation") announced its financial results for the first quarter ended November 30, 2017, in accordance with International Financial Reporting Standards ("IFRS").
For the first quarter of fiscal 2018:
(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. |
"The results of our first quarter are generally aligned with our guidance for the full year as presented prior to the MetroCast acquisition," declared Louis Audet, President and Chief Executive Officer of Cogeco Inc. "Cogeco Connexion, our Canadian broadband services segment, reported financial results that were above expectations largely thanks to overall judicious management."
"Atlantic Broadband, our American broadband services segment, posted results in line with expectations apart from the impact of unforeseen challenges when hurricane Irma hit the Florida region in the fall," stated Mr. Audet. "Teams in place worked diligently to ensure the safety of our employees and quickly restored service to our customers. I am proud of how our teams prioritized customers during this difficult time, while they were also preparing for the closing of the MetroCast acquisition and the expansion of our Florida operations."
"The focus for Cogeco Peer 1, our Business ICT services segment, is to reinforce their role as a trusted advisor, offering relevant solutions in a market where change is perpetual and the competition is increasingly relentless," added Mr. Audet. "Cogeco Peer 1 is on its trajectory intended to renew with growth."
"Looking at Cogeco Media, Numeris ratings during the first quarter of fiscal 2018 show that our Montréal radio stations remain in leading positions. With advertising revenues currently under pressure, our leadership position provides us with greater leverage," concluded Mr. Audet.
ABOUT COGECO
Cogeco Inc. is a diversified holding corporation which operates in the communications and media sectors. Through its Cogeco Communications Inc. subsidiary, Cogeco provides its residential and business customers with Internet, video and telephony services through its two-way broadband fibre networks. Cogeco Communications Inc. operates in Canada under the Cogeco Connexion name in Québec and Ontario, and in the United States under the Atlantic Broadband name in 11 states along the East Coast, from Maine to Florida. Through Cogeco Peer 1, Cogeco Communications Inc. provides its business customers with a suite of information technology services (colocation, network connectivity, hosting, cloud and managed services), through its 16 data centres, extensive FastFiber Network® and more than 50 points of presence in North America and Europe. Through its subsidiary Cogeco Media, Cogeco owns and operates 13 radio stations across most of Québec with complementary radio formats serving a wide range of audiences as well as Cogeco News, its 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).
Analyst Conference Call: | Thursday, January 11, 2018 at 9:30 a.m. (Eastern 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/cgo/en/investors/investor-relations/ | |
SHAREHOLDERS' REPORT |
Three-month period ended November 30, 2017 |
FINANCIAL HIGHLIGHTS |
Quarters ended November 30, | |||||
(in thousands of dollars, except percentages, per share data and number of shares) |
2017 $ |
2016 $ |
Change % |
||
Operations | |||||
Revenue | 586,072 | 583,088 | 0.5 | ||
Adjusted EBITDA(1) | 256,370 | 261,267 | (1.9 | ) | |
Integration, restructuring and acquisition costs | 392 | - | - | ||
Profit for the period | 81,778 | 81,959 | (0.2 | ) | |
Profit for the period attributable to owners of the Corporation | 29,525 | 30,765 | (4.0 | ) | |
Cash Flow | |||||
Cash flow from operating activities | 2,329 | 122,875 | (98.1 | ) | |
Acquisitions of property, plant and equipment, intangible and other assets | 96,309 | 97,344 | (1.1 | ) | |
Free cash flow(1) | 109,014 | 109,333 | (0.3 | ) | |
Financial Condition(2)Cash and cash equivalents | 122,754 |
212,283 |
(42.2 |
) | |
Short-term investments | 34,000 | 54,000 | (37.0 | ) | |
Total assets | 5,464,130 | 5,499,376 | (0.6 | ) | |
Indebtedness(3) | 2,706,632 | 2,633,159 | 2.8 | ||
Equity attributable to owners of the Corporation | 593,369 | 578,556 | 2.6 | ||
Per Share Data(4) | |||||
Earnings per share | |||||
Basic | 1.80 | 1.84 | (2.2 | ) | |
Diluted | 1.78 | 1.83 | (2.7 | ) | |
Dividends | 0.39 | 0.34 | 14.7 | ||
Weighted average number of multiple and subordinate voting shares outstanding | 16,430,596 | 16,720,990 | (1.7 | ) |
(1) | 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. |
(2) | At November 30, 2017 and August 31, 2017. |
(3) | Indebtedness is defined as the aggregate of bank indebtedness, balance due on a business combination, principal on long-term debt and obligations under derivative financial instruments. |
(4) | Per multiple and subordinate voting shares. |
Source:
Cogeco Inc.
Patrice Ouimet
Senior Vice President and Chief Financial Officer
Tel.: 514-764-4700
Information:
Media
Rene Guimond
Senior Vice-President, Public Affairs and Communications
Tel.: 514-764-4700