OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
Operating income before depreciation and amortization is used by COGECO's management and investors to assess the Corporation's ability to seize growth opportunities in a cost effective manner, to finance its ongoing operations and to service its debt. Operating income before depreciation and amortization is a proxy for cash flows from operations excluding the impact of the capital structure chosen, and is one of the key metrics used by the financial community to value the business and its financial strength.
The most comparable IFRS financial measure is operating income. Operating income before depreciation and amortization and operating margin are calculated as follows:
-------------------------------------------------------------------------------------------------------------------------------------------------------- Quarters ended November 30, 2012 2011(in thousands of dollars, except percentages) $ $----------------------------------------------------------------------------Operating income 83,277 74,642Depreciation and amortization 66,041 65,619Integration, restructuring and acquisitions costs 7,262 -----------------------------------------------------------------------------Operating income before depreciation and amortization 156,580 140,261--------------------------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY QUARTERLY FINANCIAL INFORMATION
--------------------------------------------------------------------------------------------------------------------------------------------------------Quarters ended November 30, August 31,(in thousands of dollars, except percentages and per share data) 2012 2011 2012 2011 $ $ $ $----------------------------------------------------------------------------Revenue 366,608 346,023 356,685 331,045Operating income before depreciation and amortization 156,580 140,261 163,617 152,434Operating income 83,277 74,642 95,943 101,304Income taxes 19,168 12,340 33,625 21,804Profit for the period from continuing operations 47,095 44,524 44,900 63,870Profit (loss) for the period from discontinued operations - 3,399 - 6,219Profit (loss) for the period 47,095 47,923 44,900 70,089Profit (loss) for the period attributable to owners of theCorporation 18,487 18,770 13,889 23,317Cash flow from operating activities (6,005) 9,570 203,193 217,792Cash flow from operations 101,790 104,739 119,612 148,228Acquisitions of property, plant and equipment, intangibleand other assets 83,155 78,404 124,638 122,441Free cash flow 18,635 26,335 (5,026) 25,787Earnings (loss) per share(1) From continuing and discontinued operations Basic 1.11 1.12 0.83 1.39 Diluted 1.10 1.11 0.83 1.39 From continuing operations Basic 1.11 1.06 0.83 1.27 Diluted 1.10 1.05 0.83 1.27 From discontinued operations Basic - 0.07 - 0.12 Diluted - 0.06 - 0.12---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- February FebruaryQuarters ended May 31, 29, 28,(in thousands of dollars, except percentages and per share data) 2012 2011 2012 2011 $ $ $ $----------------------------------------------------------------------------Revenue 358,032 330,258 345,613 307,532Operating income before depreciation and amortization 158,446 142,025 144,518 132,140Operating income 95,473 90,242 58,931 68,597Income taxes 22,278 19,252 13,372 12,465Profit for the period from continuing operations 55,373 54,371 29,449 31,656Profit (loss) for the period from discontinued operations - (233,573) 52,047 (9,223)Profit (loss) for the period 55,373 (179,202) 81,496 22,433Profit (loss) for the period attributable to owners of theCorporation 19,303 (56,303) 25,089 634Cash flow from operating activities 109,546 141,106 126,455 90,891Cash flow from operations 117,606 129,327 105,153 103,309Acquisitions of property, plant and equipment, intangibleand other assets 88,141 63,807 87,186 62,873Free cash flow 29,465 65,520 17,967 40,436Earnings (loss) per share(1) From continuing and discontinued operations Basic 1.15 (3.36) 1.50 0.04 Diluted 1.15 (3.36) 1.49 0.04 From continuing operations Basic 1.15 1.13 0.50 0.22 Diluted 1.15 1.13 0.50 0.21 From discontinued operations Basic - (4.49) 1.00 (0.18) Diluted - (4.49) 0.99 (0.18)--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Per multiple and subordinate voting share.
ABOUT COGECO
COGECO is a diversified communications corporation. Through its Cogeco Cable subsidiary, COGECO provides its residential customers with Analogue and Digital Television, High Speed Internet ("HSI") and Telephony services. Cogeco Cable is also present in the United States through its subsidiary, Atlantic Broadband, whose head office is located in Quincy, Massachusetts. Atlantic Broadband is ranked the 12th largest cable television system operator in the United States and, serves the following areas: Western Pennsylvania, Southern Florida, Maryland, Delaware and South Carolina. Cogeco Cable provides as well to its commercial customers, through its subsidiary Cogeco Data Services, data networking, e-business applications, video conferencing, hosting services, Ethernet, private line, VoIP, HSI access, data storage, co-location services, managed IT services, cloud services and other advanced communication solutions. Through its subsidiary, Cogeco Diffusion, COGECO owns and operates 13 radio stations across most of Quebec with complementary radio formats serving a wide range of audiences as well as Cogeco News, its news agency. Cogeco Diffusion also operates Metromedia, an advertising representation house specialized in the public transit sector that holds exclusive advertising rights in the Province of Quebec where it also represents its business partners active across other Canadian markets. COGECO's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CGO). The subordinate voting shares of Cogeco Cable are also listed on the Toronto Stock Exchange (TSX: CCA).
ADDITIONAL INFORMATION
For additional information relating to the Corporation, including its Annual Information Form, and for a detailed analysis of COGECO's results for the first quarter of 2013, please refer to the Management Discussion and Analysis and condensed consolidated financial statements of COGECO, available on the SEDAR website at www.sedar.com.
Analyst Conference Call: Tuesday, January 15, 2013 at 9:30 a.m. (Eastern Standard Time) Media representatives may attend as listeners only. Please use the following dial-in number to have access to the conference call by dialling five minutes before the start of the conference: Canada/USA Access Number: 1-800-820-0231 International Access Number: 1-416-640-5926 Confirmation Code: 4571052 By Internet at www.cogeco.ca/investors A rebroadcast of the conference call will be available until January 22, 2013, by dialling: Canada and US access number: 1 888-203-1112 International access number: + 1 647-436-0148 Confirmation code: 4571052
Contacts:
Source: COGECO Inc.
Pierre Gagne
Senior Vice President and Chief Financial Officer
514-764-4700
Information: Media
Rene Guimond
Vice-President, Public Affairs and Communications
514-764-4700
