MONTREAL, QUEBEC -- (Marketwired) -- 07/10/13 -- Today, COGECO Inc. (TSX: CGO) ("COGECO" or the "Corporation") announced its financial results for the third quarter of fiscal 2013, ended May 31, 2013, in accordance with International Financial Reporting Standards ("IFRS").
For the third quarter and first nine months of fiscal 2013, which include six months operating results of Atlantic Broadband ("ABB") and four months operating results for Peer 1 Network Enterprises, Inc. ("PEER 1"):
-- Third quarter revenue increased by 40.9% to reach $504.4 million and by 26.7% for the first nine months to reach $1.3 billion when compared to the same periods of the prior year;-- Operating income before depreciation and amortization increased by 39.2% to $220.6 million when compared to the third quarter of fiscal 2012, and by 29.3% to $573.1 million when compared to the first nine months of the prior year. Operating income before depreciation and amortization increases for both periods are mainly attributable to the acquisitions of ABB and PEER 1 ("recent acquisitions") as well as the improvement in the financial results of the Canadian operations in the Cable segment;-- Profit for the period from continuing operations amounted to $55.1 million in the third quarter compared to $55.4 million for the same period of the previous fiscal year. Profit for the period from continuing operations decreased slightly during the quarter mostly due to acquisition costs, additional depreciation and amortization and financial expense, including costs of approximately $3.5 million to refinance certain long-term debt with respect to the recent acquisitions, partly offset by operating income before depreciation and amortization generated by the Canadian operations and by the recent acquisitions in the Cable segment. For the first nine months of fiscal 2013, profit for the period from continuing operations amounted to $158.7 million compared to $129.3 million for the same period of fiscal 2012. Profit progression for the nine-month period is mostly attributable to the factors described above and by additional income tax expense;-- Profit for the period amounted to $55.1 million in the third quarter when compared to $55.4 million for the same period of the previous fiscal year due to the factors described in the paragraph above. For the first nine months of fiscal 2013, profit for the period amounted to $158.7 million when compared to $184.8 million for the same period of fiscal 2012 mostly attributable to the improvement of the Canadian operations in the Cable segment and by the recent acquisitions' financial results, offset by last year's profit from the Portuguese subsidiary, Cabovisao - Televisao por Cabo, S.A. ("Cabovisao"), reported as discontinued operations and disposed of on February 29, 2012 in the Cable segment;-- Free cash flow(1)reached $45.0 million for the third quarter compared to $29.5 million in the comparable quarter of the prior year. For the first nine months, free cash flow amounted to $98.0 million, compared to $73.8 million in the same period of fiscal 2012. The increase for both periods is mostly attributable to the Cable segment by the improvement of operating income before depreciation and amortization, partly offset by the increase in financial expense, the recent acquisition costs as well as the increase in acquisition of property, plant and equipment;(1) The indicated terms do not have standard 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 Management's discussion and analysis.-- A quarterly dividend of $0.19 per share was paid to the holders of subordinate and multiple voting shares, an increase of $0.01 per share, or 5.6%, when compared to a dividend of $0.18 per share paid in the third quarter of fiscal 2012. Dividend payments in the first nine months totaled $0.57 per share in fiscal 2013, compared to $0.54 per share in fiscal 2012;-- In the Cable segment, fiscal 2013 third-quarter primary service units ("PSU")(1)decreased by 3,331 and increased by 15,851 for the first nine months of fiscal 2013. At May 31, 2013, consolidated PSU amounted to 2,470,164 of which 1,981,290 come from the Canadian operations and 488,874 from the American operations;(1) Represents the sum of Television, High Speed Internet ("HSI") and Telephony service customers.