MONTRÉAL, July 15, 2020 /CNW Telbec/ - Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the third quarter ended May 31, 2020, in accordance with International Financial Reporting Standards ("IFRS").
COVID-19 PANDEMIC
Since the beginning of the COVID-19 pandemic, our efforts have focussed on providing our usual high level of service to customers while providing a safe working environment for our employees. Although we can now say that we have successfully taken on this challenge, the situation had various impacts on our business during the last quarter. However, these COVID related impacts did not have a material effect on our results.
FISCAL 2020 FINANCIAL GUIDELINES
Based on the experience gained while operating during the pandemic and the fact that there is one quarter left to the fiscal year, the Corporation is providing the following financial guidelines for the current fiscal year ending on August 31, 2020 as compared to the prior fiscal year, on a constant currency and consolidated basis:
OPERATING RESULTS
For the third quarter of fiscal 2020:
(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. |
"Overall we are satisfied with our results for the third quarter of fiscal year 2020 which was marked by unprecedented challenges related to the pandemic," declared Philippe Jetté, President and Chief Executive Officer of Cogeco Communications Inc.
"We are very pleased with how our teams have responded to the COVID-19 crisis, showing great adaptability and dedication," stated Mr. Jetté. "Over the past quarter, we have seen high demand for our services at both Cogeco Connexion and Atlantic Broadband. All our teams across Quebec, Ontario and eleven states across the U.S. East Coast have worked tirelessly to make sure that we maintain a high quality of connectivity services and access to information and entertainment for our customers."
"Despite the many challenges of the current crisis, we have maintained financial discipline and expect that we will end the fiscal year with growth of our EBITDA and free cash flow," concluded Mr. Jetté.
ABOUT COGECO COMMUNICATIONS
Cogeco Communications Inc. is a communications corporation. It is the 8th largest cable operator in North America, operating in Canada under the Cogeco Connexion name in Québec and Ontario, and along the East Coast of the United States under the Atlantic Broadband brand (in 11 states from Maine to Florida). The Corporation provides residential and business customers with Internet, video and telephony services through its two-way broadband fibre networks. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
SHAREHOLDERS' REPORT
Three and nine-month periods ended May 31, 2020
FINANCIAL HIGHLIGHTS
Three months ended | Nine months ended | |||||||||||||
May 31, 2020 | May 31, 2020 | Change | Change in constant currency(1) | Foreign exchange impact(1) | May 31, 2020 | May 31, 2019 | Change | Change in constant currency(1) | Foreign exchange impact(1) | |||||
(in thousands of dollars, except percentages and per share data) | $ | $ | % | % | $ | $ | $ | % | % | $ | ||||
Operations | ||||||||||||||
Revenue | 605,821 | 587,345 | 3.1 | 1.1 | 12,064 | 1,779,115 | 1,748,147 | 1.8 | 1.1 | 12,263 | ||||
Adjusted EBITDA | 294,717 | 283,927 | 3.8 | 1.9 | 5,260 | 854,194 | 832,330 | 2.6 | 2.0 | 5,330 | ||||
Adjusted EBITDA margin | 48.6 % | 48.3 % | 48.0 % | 47.6 % | ||||||||||
Integration, restructuring and acquisition costs(2) |
12 |
1,003 |
(98.8) |
5,531 |
10,438 |
(47.0) | ||||||||
Profit for the period from continuing operations | ||||||||||||||
96,724 | 99,571 | (2.9) | 300,443 | 264,505 | 13.6 | |||||||||
Profit for the period from discontinued operations |
? |
82,451 |
(100.0) |
? |
73,460 |
(100.0) | ||||||||
Profit for the period | 96,724 | 182,022 | (46.9) | 300,443 | 337,965 | (11.1) | ||||||||
Profit for the period from continuing | ||||||||||||||
operations attributable to owners of the Corporation | 90,771 | 96,613 | (6.0) | 284,340 | 252,123 | 12.8 | ||||||||
Profit for the period attributable to owners of the Corporation | ||||||||||||||
90,771 | 179,064 | (49.3) | 284,340 | 325,583 | (12.7) | |||||||||
Cash flow | ||||||||||||||
Cash flow from operating activities | 282,229 | 265,551 | 6.3 | 663,074 | 564,009 | 17.6 | ||||||||
Acquisitions of property, plant and equipment(3) | ||||||||||||||
123,653 | 96,116 | 28.6 | 24.8 | 3,663 | 355,795 | 289,446 | 22.9 | 21.6 | 3,841 | |||||
Free cash flow | 116,158 | 136,999 | (15.2) | (15.4) | 318 | 344,064 | 369,809 | (7.0) | (7.0) | 171 | ||||
Capital intensity | 20.4 % | 16.4 % | 20.0 % | 16.6 % | ||||||||||
Financial condition(4) | ||||||||||||||
Cash and cash equivalents | 493,794 | 556,504 | (11.3) | |||||||||||
Total assets | 7,157,104 | 6,951,079 | 3.0 | |||||||||||
Indebtedness(5) | 3,532,411 | 3,454,923 | 2.2 | |||||||||||
Equity attributable to owners of the Corporation |
2,272,495 |
2,199,789 |
3.3 | |||||||||||
Per Share Data(6) | ||||||||||||||
Earnings per share | ||||||||||||||
Basic | ||||||||||||||
From continuing operations | 1.89 | 1.96 | (3.6) | 5.84 | 5.11 | 14.3 | ||||||||
From discontinued operations | - | 1.67 | (100.0) | - | 1.49 | (100.0) | ||||||||
From continuing and | 1.89 | 3.62 | (47.8) | 5.84 | 6.59 | (11.4) | ||||||||
Diluted | ||||||||||||||
From continuing operations |
1.87 | 1.94 | (3.6) | 5.78 | 5.07 | 14.0 | ||||||||
From discontinued operations | - | 1.65 | (100.0) | - | 1.48 | (100.0) | ||||||||
From continuing and discontinued operations | 1.87 | 3.59 | (47.9) | 5.78 | 6.54 | (11.6) | ||||||||
Dividends | 0.58 | 0.525 | 10.5 | 1.74 | 1.575 | 10.5 | ||||||||
(1) | 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, 2019, the average foreign exchange rates used for translation were 1.3402 USD/CDN and 1.3266 USD/CDN, respectively. |
(2) | For the nine-month period ended May 31, 2020, integration, restructuring and acquisition costs resulted mostly from organizational changes and costs related to the acquisition of Thames Valley Communications. For the third-quarter and first nine months of fiscal 2019, integration, restructuring and acquisition costs were mostly due to an operational optimization program. |
(3) | For the three and nine-month periods ended May 31, 2020, acquisitions of property, plant and equipment in constant currency amounted to $119.9 million and $352.0 million, respectively. |
(4) | At May 31, 2020 and August 31, 2019. |
(5) | Indebtedness is defined as the aggregate of bank indebtedness, balance due on business combinations and principal on long-term debt. |
(6) | Per multiple and subordinate voting share. |
Source: | Cogeco Communications Inc. |
Patrice Ouimet | |
Senior Vice President and Chief Financial Officer | |
Tel.: 514-764-4700 | |
Information: | Media |
Marie-Hélène Labrie | |
Senior Vice-President, Chief Public Affairs and Communications Officer | |
Tel.: 514-764-4700 | |
Analyst Conference Call: | Thursday, July 16, 2020 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/cca/en/investors/investor-relations |
SOURCE Cogeco Communications Inc.
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