MONTRÉAL, July 10, 2019 (GLOBE NEWSWIRE) -- Today, Cogeco Inc. (TSX: CGO) ("Cogeco" or the "Corporation") announced its financial results for the third quarter ended May 31, 2019, in accordance with International Financial Reporting Standards ("IFRS").
Following Cogeco Communications' announcement on February 27, 2019 of the agreement to sell Cogeco Peer 1 Inc., its Business information and communications technology ("Business ICT") services subsidiary, the operating and financial results from this subsidiary for the current and comparable periods are presented as discontinued operations separate from the Corporation's continuing operations.
For the third quarter of fiscal 2019:
(1) | The indicated terms do not have standardized 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 MD&A. |
“Once again we are very satisfied with our overall quarterly performance as the results of the third quarter of fiscal 2019 are in line with expectations,” declared Philippe Jetté, President and Chief Executive Officer of Cogeco Inc.
“At Cogeco Communications, we reported strong growth in adjusted EBITDA resulting from our ongoing operational improvement initiatives at Cogeco Connexion,” stated Mr. Jetté.
“At Atlantic Broadband, we continue to see solid organic growth,” added Mr. Jetté. “We are seeing the benefits of our amplified marketing activities with a significant increase in our primary service units, demonstrating our American broadband services operations' position as a growth driver for Cogeco Communications.”
“On April 30 we completed the sale of Cogeco Peer 1, our Business information and communications technology operations, to affiliates of Digital Colony. This transaction resulted in a gain and allows the Corporation to focus on the growth of our broadband business,” added Mr. Jetté.
"Finally, at our radio subsidiary Cogeco Media, we are still experiencing the effects of a weak market, however we are pleased to see that our top stations continue to maintain strong ratings," concluded Mr. Jetté.
ABOUT COGECO
Cogeco Inc. is a diversified holding corporation which operates in the communications and media sectors. Its Cogeco Communications Inc. subsidiary provides residential and business customers with Internet, video and telephony services through its two-way broadband fibre networks, operating in Québec and Ontario, Canada, under the Cogeco Connexion name, and in the United States under the Atlantic Broadband brand (in 11 states along the East Coast, from Maine to Florida). Its Cogeco Media subsidiary owns and operates 23 radio stations with complementary radio formats and extensive coverage serving a wide range of audiences mainly across the province of Québec, as well as Cogeco News, a news agency. Cogeco’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CGO). The subordinate voting shares of Cogeco Communications Inc. are also listed on the Toronto Stock Exchange (TSX: CCA).
Source: | Cogeco Inc. |
Patrice Ouimet | |
Senior Vice President and Chief Financial Officer | |
Tel.: 514-764-4700 | |
Information: | Media |
Marie-Hélène Labrie | |
Senior Vice-President, Public Affairs and Communications | |
Tel.: 514-764-4700 | |
Analyst Conference Call: | Thursday, July 11, 2019 at 11:00 a.m. (Eastern Daylight Time) |
Media representatives may attend as listeners only. | |
Please use the following dial-in number to have access to the conference call by dialing five minutes before the start of the conference: | |
Canada/United States Access Number: 1-877-291-4570 | |
International Access Number: + 1-647-788-4919 | |
In order to join this conference, participants are only required to provide the operator with the company name, that is, Cogeco Inc. or Cogeco Communications Inc. | |
By Internet at http://corpo.cogeco.com/cgo/en/investors/investor-relations/ | |
SHAREHOLDERS’ REPORT
Three and nine-month periods ended May 31, 2019
FINANCIAL HIGHLIGHTS
Three months ended | Nine months ended | |||||||||||||||
May 31, 2019 | May 31, 2018(1) | Change | Change in constant currency(2) | Foreign exchange impact(2) | May 31, 2019 | May 31, 2018(1) | Change | Change in constant currency(2) | Foreign exchange impact(2) | |||||||
(in thousands of dollars, except percentages and per share data) | $ | $ | % | % | $ | $ | $ | % | % | $ | ||||||
Operations | ||||||||||||||||
Revenue | 617,617 | 598,877 | 3.1 | 1.3 | 10,849 | 1,833,552 | 1,669,753 | 9.8 | 7.7 | 35,006 | ||||||
Adjusted EBITDA(3) | 289,935 | 277,397 | 4.5 | 2.9 | 4,514 | 850,999 | 766,168 | 11.1 | 9.1 | 14,811 | ||||||
Integration, restructuring and acquisition costs(4) | 1,155 | 2,260 | (48.9 | ) | 12,012 | 18,651 | (35.6 | ) | ||||||||
Profit for the period from continuing operations | 102,559 | 76,116 | 34.7 | 272,972 | 321,610 | (15.1 | ) | |||||||||
Profit (loss) for the period from discontinued operations | 82,451 | (5,365 | ) | — | 73,460 | (23,329 | ) | — | ||||||||
Profit for the period | 185,010 | 70,751 | — | 346,432 | 298,281 | 16.1 | ||||||||||
Profit for the period attributable to owners of the Corporation | 59,883 | 25,155 | — | 111,718 | 101,272 | 10.3 | ||||||||||
Cash flow from continuing operations | ||||||||||||||||
Cash flow from operating activities | 267,388 | 171,757 | 55.7 | 575,172 | 369,698 | 55.6 | ||||||||||
Acquisitions of property, plant and equipment(5) | 97,169 | 98,950 | (1.8 | ) | (4.5 | ) | 2,629 | 292,456 | 296,438 | (1.3 | ) | (4.2 | ) | 8,413 | ||
Free cash flow(3) | 140,393 | 109,446 | 28.3 | 27.9 | 421 | 381,544 | 268,793 | 41.9 | 41.4 | 1,551 | ||||||
Financial condition(6) | ||||||||||||||||
Cash and cash equivalents | 448,424 | 86,352 | — | |||||||||||||
Total assets | 7,064,426 | 7,335,547 | (3.7 | ) | ||||||||||||
Indebtedness(7) | 3,578,541 | 3,951,791 | (9.4 | ) | ||||||||||||
Equity attributable to owners of the Corporation | 753,702 | 710,908 | 6.0 | |||||||||||||
Per Share Data(8) | ||||||||||||||||
Earnings (loss) per share | ||||||||||||||||
Basic | ||||||||||||||||
From continuing operations | 2.09 | 1.64 | 27.4 | 5.46 | 6.63 | (17.6 | ) | |||||||||
From discontinued operations | 1.62 | (0.10 | ) | — | 1.44 | (0.45 | ) | — | ||||||||
From continuing and discontinued operations | 3.71 | 1.54 | — | 6.90 | 6.18 | 11.7 | ||||||||||
Diluted | ||||||||||||||||
From continuing operations | 2.07 | 1.63 | 27.0 | 5.41 | 6.58 | (17.8 | ) | |||||||||
From discontinued operations | 1.61 | (0.10 | ) | — | 1.43 | (0.45 | ) | — | ||||||||
From continuing and discontinued operations | 3.68 | 1.52 | — | 6.84 | 6.13 | 11.6 | ||||||||||
Dividends | 0.43 | 0.39 | 10.3 | 1.29 | 1.17 | 10.3 | ||||||||||
(1) | Fiscal 2018 was restated to comply with IFRS 15 and to reflect a change in accounting policy as well as to reclassify results from Cogeco Peer 1 as discontinued operations. For further details, please consult the "Accounting policies" and "Discontinued operations" sections of the MD&A. |
(2) | Key performance indicators presented on a constant currency basis are obtained by translating financial results of the current periods denominated in US dollars at the foreign exchange rates of the comparable periods of the prior year. For the three and nine-month periods ended May 31, 2018, the average foreign exchange rates used for translation were 1.2846 USD/CDN and 1.2664 USD/CDN, respectively. |
(3) | The indicated terms do not have standardized definitions prescribed by the International Financial Reporting Standards ("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 MD&A. |
(4) | For the three and nine-month periods ended May 31, 2019, integration, restructuring and acquisition costs were mostly due to restructuring costs in the Canadian broadband services operations and were related to an operational optimization program. In addition, acquisition costs for the nine-month period ended May 31, 2019 were related to the acquisition of 10 regional radio stations on November 26, 2018 by the Corporation's subsidiary, Cogeco Media. For the three and nine-months periods ended May 31, 2018, integration, restructuring and acquisition costs were related to the MetroCast acquisition completed on January 4, 2018. |
(5) | For the three and nine-months periods ended May 31, 2019, acquisitions of property, plant and equipment in constant currency amounted to $94.5 million and $284.0 million, respectively. |
(6) | At May 31, 2019 and August 31, 2018. |
(7) | Indebtedness is defined as the aggregate of bank indebtedness, balance due on business combinations and principal on long-term debt. |
(8) | Per multiple and subordinate voting shares. |