- Revenue increased by $16.2 million, or 2.9%, to reach $574.0 million;
- Adjusted EBITDA(1) increased by $6.2 million, or 2.5%, to reach $253.2 million compared to $247.0 million for the third quarter of fiscal 2015;
- Free cash flow(1) reached $91.9 million, an increase of $14.0 million, or 18.0%;
- A quarterly eligible dividend of $0.295 per share was declared, an increase of 15.7% compared to the same period of fiscal 2015; and
- Cogeco Communications recorded a non-cash impairment of goodwill and intangible assets of $450 million related to its Business information and communications technology ("Business ICT") services segment during the third quarter of fiscal 2016.
MONTRÉAL, QUÉBEC--(Marketwired - July 6, 2016) - Today, Cogeco Inc. (TSX:CGO) ("Cogeco" or the "Corporation") announced its financial results for the third quarter ended May 31, 2016, in accordance with International Financial Reporting Standards ("IFRS").
For the third quarter of fiscal 2016:
|For the nine-month period ended May 31, 2016:|
|(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 Management's discussion and analysis ("MD&A").|
"Except for our Business ICT segment of Cogeco Communications, our results for the third quarter of fiscal 2016 have been satisfactory," declared Louis Audet, President and Chief Executive Officer of Cogeco Inc. "Cogeco Connexion, Cogeco Communications' Canadian broadband services subsidiary, has reported relatively satisfactory results, leveraging its superior internet speeds and video solutions in a competitive environment."
"Meanwhile, Atlantic Broadband, Cogeco Communications' American broadband services subsidiary, continues to report strong results and new growth, particularly in Miami with the recent announcement of a contract to be the exclusive communications services provider for the new 83-story Panorama Tower," added M. Audet. "We are also maintaining solid organic growth, including in our newly acquired Connecticut system."
"We are seeing increased competition in the Business ICT sector from large cloud-based offerings competing with traditional managed hosting providers," stated Mr. Audet. "Cogeco Communications remains committed to investing in and growing the Business ICT sector with its subsidiary, Cogeco Peer 1, at the forefront of this strategy, positioned as a trusted partner to its customers. Our integration is now complete and we are confident that with a solid, seasoned management team in place and a competitive product portfolio, our subsidiary can serve the market, continuing to adapt to the significant capacity and price pressure originating from cloud providers."
"Finally, in our radio business, I'm very pleased to report that Cogeco Media results remain on their trajectory of solid financial performance and growth, and our stations continue to shine in the rankings in all our markets," continued M. Audet.
"In all our businesses, we move forward and act with our customers in mind, and we feel this strategy continues to be the key to our success," concluded M. Audet.
Cogeco Inc. (corpo.cogeco.com) is a diversified holding corporation which operates in the communications and media sectors. Through its Cogeco Communications Inc. subsidiary, Cogeco provides its residential and business customers with video, Internet and telephony services through its two-way broadband fibre networks. Cogeco Communications Inc. operates in Canada under the Cogeco Connexion name in Québec and Ontario, and in the United States under the Atlantic Broadband name in western Pennsylvania, south Florida, Maryland/Delaware, South Carolina and eastern Connecticut. Through Cogeco Peer 1, Cogeco Communications Inc. provides its business customers with a suite of information and communications technology services (colocation, network connectivity, managed hosting, cloud services and managed IT services), through its 17 data centres, an extensive FastFiber NetworkTM and more than 50 points-of-presence in North America and Europe. Through its subsidiary Cogeco Media, Cogeco owns and operates 13 radio stations across most of Québec with complementary radio formats serving a wide range of audiences as well as Cogeco News, its 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).
|Analyst Conference Call:||Thursday, July 7, 2016 at 11:00 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 dialing five minutes before the start of the conference:|
|Canada/United States Access Number: 1 800-505-9573|
|International Access Number: + 1 416-204-9498|
|Confirmation Code: 5432616|
|By Internet at corpo.cogeco.com/cgo/en/investors/|
|A rebroadcast of the conference call will be available until July 13, 2016, by dialing:|
|Canada and United States access number: 1 888-203-1112|
|International access number: + 1 647-436-0148|
|Confirmation code: 5432616|
|Quarters ended||Nine months ended|
|(in thousands of dollars, except percentages and per share data)||$||$||%||$||$||%|
|Integration, restructuring and acquisition costs||1,126||5,669||(80.1||)||7,476||7,008||6.7|
|Claims and litigations||10,499||-||-||10,499||-||-|
|Impairment of goodwill and intangible assets||450,000||-||-||450,000||-||-|
|Gain on disposal of a subsidiary||-||-||-||(12,940||)||-||-|
|Profit (loss) for the period||(381,886||)||66,285||-||(239,367||)||186,686||-|
|Profit (loss) for the period attributable to owners of the Corporation|
|Cash flow from operating activities||186,209||200,686||(7.2||)||487,916||418,610||16.6|
|Acquisitions of property, plant and equipment, intangible and other assets|
|Free cash flow(1)||91,934||77,929||18.0||210,044||217,574||(3.5||)|
|Property, plant and equipment||-||-||-||2,009,566||2,005,461||0.2|
|Equity attributable to owners of the Corporation||-||-||-||525,962||603,598||(12.9||)|
|Per Share Data(4)|
|Earnings (loss) per share|
|(1)||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.|
|(2)||At May 31, 2016 and August 31, 2015.|
|(3)||Indebtedness is defined as the aggregate of bank indebtedness, principal on long-term debt and obligations under derivative financial instruments.|
|(4)||Per multiple and subordinate voting share.|