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OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION AND OPERATING MARGIN
Fiscal 2013 first-quarter operating income before depreciation and amortization increased by $15.3 million, or 11.6%, to reach $147.1 million as a result of revenue growth and lower operating expenses. Cogeco Cable's first-quarter operating margin increased to 44.9% from 41.8% in the comparable period of the prior year. For further details on the Corporation's operating income before depreciation and amortization and operating margin, please refer to the "Cable services" and "Enterprise services" sections.
FIXED CHARGES
--------------------------------------------------------------------------------------------------------------------------------------------------------Quarters ended November 30 2012 2011 Change(in thousands of dollars, except percentages) $ $ %----------------------------------------------------------------------------Depreciation and amortization 64,666 64,824 (0.2)Financial expense 15,600 16,829 (7.3)--------------------------------------------------------------------------------------------------------------------------------------------------------
For the first quarter of fiscal 2013, depreciation and amortization expense was essentially the same at $64.7 million when compared to $64.8 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 $1.2 million, or 7.3%, at $15.6 million, when compared to $16.8 million in the prior year. Financial expense decrease is primarily attributable to the foreign exchange loss of $1.5 million recorded in fiscal 2012.
INCOME TAXES
Fiscal 2013 first-quarter income tax expense amounted to $17.4 million, compared to $10.6 million in the prior year. The increase is mostly attributable to the improvement in operating income before depreciation and amortization and by a reduction in 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 $42.2 million, or $0.87 per share compared to $39.6 million, or $0.81 per share for the comparable period of fiscal 2012. The variance for the quarter is mostly attributable to the 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 $42.2 million, or $0.87 per share, compared to $43 million, or $0.88 per share, in fiscal 2012. This variation is mostly attributable to the acquisition costs related to ABB acquisition, the increase in income taxes explained above and the profit from the Portuguese subsidiary reported as discontinued operations in fiscal 2012, partly offset by the improvement in operating income before depreciation and amortization.
