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Operating expenses from the radio, advertising representation house and head office activities grew by $6.5 million, or 22.3%, in the first quarter mainly as a result of operating expenses generated by Metromedia, acquired in the second quarter of fiscal 2012.
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION
Mainly as a result of higher growth from revenue than operating expenses stemming primarily from the Cable segment, operating income before depreciation and amortization grew by $16.3 million, or 11.6%, in the first quarter to reach $156.6 million, when compared to the same period of the previous year. For further details on Cogeco Cable's operating results, please refer to the "Cable segment" section.
FIXED CHARGES
--------------------------------------------------------------------------------------------------------------------------------------------------------Quarters ended November 30 2012 2011 Change(in thousands of dollars, except percentages) $ $ %----------------------------------------------------------------------------Depreciation and amortization 66,041 65,619 0.6Financial expense 17,014 17,778 (4.3)--------------------------------------------------------------------------------------------------------------------------------------------------------
For the first quarter of fiscal 2013, depreciation and amortization expense was essentially the same at $66 million when compared to $65.6 million for the same period of the prior year resulting mainly from higher acquisition of property, plant and equipment offset by additional depreciation expense recorded in fiscal 2012 related to the reduction of useful lives for certain home terminal devices.
Fiscal 2013 first-quarter financial expense decreased by $0.8 million, or 4.3%, at $17 million, when compared to $17.8 million in the prior year. Financial expense decrease is primarily attributable to the foreign exchange loss of $1.5 million recorded in fiscal 2012 in the Cable segment.
INCOME TAXES
Fiscal 2013 first-quarter income tax expense amounted to $19.2 million, compared to $12.3 million in the prior year. The increase is mostly attributable to the improvement in operating income before depreciation and amortization and by a reduction of income taxes, in fiscal 2012, from the implementation of certain tax measures of the 2011 federal budget limiting the tax deferrals for corporations with a significant interest in a partnership.
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS
For the three-month period ended November 30, 2012, profit for the period from continuing operations amounted to $47.1 million of which $18.5 million, or $1.11 per share, is attributable to owners of the Corporation. For the comparable period of fiscal 2012, profit for the period from continuing operations amounted to $44.5 million of which $17.7 million, or $1.06 per share, is attributable to owners of the Corporation. The variance for the quarter is mostly attributable to the Cable segment and due to an increase in operating income before depreciation and amortization, partly offset by the acquisition costs related to ABB acquisition and the increase in income taxes explained above.
PROFIT FOR THE PERIOD
For the period ended November 30, 2012, profit for the period amounted to $47.1 million compared to $47.9 million in fiscal 2012. Fiscal 2013 first-quarter profit for the period attributable to owners of the Corporation amounted to $18.5 million, or $1.11 per share compared to $18.8 million, or $1.12 per share for the comparable period of prior year. This variation is mostly attributable to the Cable segment and due to the acquisition costs related to ABB acquisition, the increase in income taxes explained above and the profit from the Portuguese subsidiary, Cabovisao - Televisao por Cabo, S.A. ("Cabovisao"), reported as discontinued operations, in the Cable segment for fiscal 2012, partly offset by the improvement in operating income before depreciation and amortization.
