OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION AND OPERATING MARGIN
Operating income before depreciation and amortization is used by Cogeco Cable'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. Operating margin is a measure of the proportion of the Corporation's revenue which is available, before income taxes, to pay for its fixed costs, such as interest on Indebtedness. Operating margin is calculated by dividing operating income before depreciation and amortization by revenue.
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 75,160 66,999Depreciation and amortization 64,666 64,824Integration, restructuring and acquisitions costs 7,300 -----------------------------------------------------------------------------Operating income before depreciation and amortization 147,126 131,823----------------------------------------------------------------------------Revenue 327,911 315,424----------------------------------------------------------------------------Operating margin 44.9% 41.8%--------------------------------------------------------------------------------------------------------------------------------------------------------
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 327,911 315,424 324,768 305,811Operating income before depreciation and amortization 147,126 131,823 160,825 151,579Operating margin 44.9% 41.8% 49.5% 49.6%Operating income 75,160 66,999 94,709 97,941Income taxes 17,400 10,603 32,987 20,713Profit for the period from continuing operations 42,160 39,567 45,705 62,745Profit (loss) for the period from discontinued operations - 3,399 - 6,219Profit (loss) for the period 42,160 42,966 45,705 68,964Cash flow from operating activities (280) 13,807 203,343 211,847Cash flow from operations 99,845 97,043 126,946 144,699Acquisitions of property, plant and equipment, intangible and other assets 82,833 77,283 124,392 120,663Free cash flow 17,012 19,760 2,554 24,036Earnings (loss) per share(1) From continuing and discontinued operations Basic 0.87 0.88 0.94 1.42 Diluted 0.86 0.88 0.93 1.42 From continuing operations Basic 0.87 0.81 0.94 1.29 Diluted 0.86 0.81 0.93 1.29 From discontinued operations Basic - 0.07 - 0.13 Diluted - 0.07 - 0.13---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- February FebruaryQuarters ended May 31, 29, 28,(in thousands of dollars, except percentages and per share data) 2012 2011 2012 2011 $ $ $ $----------------------------------------------------------------------------Revenue 319,771 298,211 317,735 293,457Operating income before depreciation and amortization 152,661 138,147 143,743 130,399Operating margin 47.7% 46.3% 45.2% 44.4%Operating income 90,981 86,995 59,491 80,426Income taxes 21,449 18,747 13,617 15,007Profit for the period from continuing operations 53,159 52,352 31,086 41,319Profit (loss) for the period from discontinued operations - (233,573) 52,047 (9,223)Profit (loss) for the period 53,159 (181,221) 83,133 32,096Cash flow from operating activities 112,275 142,009 120,961 88,420Cash flow from operations 113,075 125,923 104,622 114,682Acquisitions of property, plant and equipment, intangible and other assets 87,459 62,782 86,234 61,079Free cash flow 25,616 63,141 18,388 53,603Earnings (loss) per share(1) From continuing and discontinued operations Basic 1.09 (3.73) 1.71 0.66 Diluted 1.09 (3.73) 1.70 0.66 From continuing operations Basic 1.09 1.08 0.64 0.85 Diluted 1.09 1.08 0.63 0.85 From discontinued operations Basic - (4.80) 1.07 (0.19) Diluted - (4.80) 1.06 (0.19)--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Per multiple and subordinate voting share.
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca) is a telecommunications corporation and is the second largest hybrid fibre coaxial cable operator in Ontario and Quebec. Through its two-way broadband cable networks, Cogeco Cable 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, data security, co-location services, managed IT services, cloud services and other advanced communication solutions. Cogeco Cable's subordinate voting shares are 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 Cable's results for the first quarter of 2013, please refer to the Management Discussion and Analysis and condensed consolidated financial statements of Cogeco Cable, available on the SEDAR website at www.sedar.com.
Analyst Conference Tuesday, January 15, 2013 at 9:30 a.m. (EasternCall: 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 Cable 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
