Three months ended |
Nine months ended |
|||||
May 31, |
May 31, |
May 31, |
May 31, |
|||
(in thousands of dollars, except percentages and per share data) |
2015 |
2014 |
Change |
2015 |
2014 |
Change |
$ |
$ |
% |
$ |
$ |
% |
|
Operations |
||||||
Revenue |
557,787 |
536,067 |
4.1 |
1,633,074 |
1,571,515 |
3.9 |
Adjusted EBITDA(1) |
246,977 |
233,083 |
6.0 |
710,029 |
678,930 |
4.6 |
Impairment of property, plant and equipment |
- |
32,197 |
(100.0) |
- |
32,197 |
(100.0) |
Profit for the period |
66,285 |
35,635 |
86.0 |
186,686 |
150,941 |
23.7 |
Profit for the period attributable to owners of the Corporation |
22,584 |
11,469 |
96.9 |
64,225 |
51,915 |
23.7 |
Cash Flow |
||||||
Cash flow from operating activities |
200,686 |
184,706 |
8.7 |
418,610 |
432,552 |
(3.2) |
Cash flow from operations(1) |
182,736 |
176,491 |
3.5 |
529,481 |
509,128 |
4.0 |
Acquisitions of property, plant and equipment, intangible and other assets |
104,807 |
84,960 |
23.4 |
311,907 |
253,537 |
23.0 |
Free cash flow(1) |
77,929 |
91,531 |
(14.9) |
217,574 |
255,591 |
(14.9) |
Financial Condition(2) |
||||||
Property, plant and equipment |
1,904,392 |
1,852,270 |
2.8 |
|||
Total assets |
5,660,394 |
5,367,730 |
5.5 |
|||
Indebtedness(3) |
3,029,006 |
2,848,040 |
6.4 |
|||
Equity attributable to owners of the Corporation |
574,938 |
513,965 |
11.9 |
|||
Per Share Data(4) |
||||||
Earnings per share |
||||||
Basic |
1.35 |
0.69 |
95.7 |
3.84 |
3.10 |
23.9 |
Diluted |
1.34 |
0.68 |
97.1 |
3.82 |
3.08 |
24.0 |
Revised projections |
Revised projections |
|
July 14, 2015 |
April 8, 2015 |
|
Fiscal 2015 |
Fiscal 2015 |
|
(in million of dollars) |
$ |
$ |
Revenue |
2,195 |
2,195 |
Adjusted EBITDA |
953 |
953 |
Integration, restructuring and acquisition costs |
15 |
1 |
Financial expense |
147 |
147 |
Current income tax expense |
95 |
95 |
Profit for the year |
253 |
263 |
Profit for the year attributable to owners of the Corporation |
85 |
87 |
Acquisitions of property, plant and equipment, intangible and other assets |
435 |
435 |
Free cash flow(1) |
275 |
290 |
Three months ended May 31, |
Nine months ended May 31, |
||||
Notes |
2015 |
2014 |
2015 |
2014 |
|
(In thousands of Canadian dollars, except per share data) |
$ |
$ |
$ |
$ |
|
Revenue |
557,787 |
536,067 |
1,633,074 |
1,571,515 |
|
Operating expenses |
4 |
310,810 |
302,984 |
923,045 |
892,585 |
Integration, restructuring and acquisition costs |
3 |
5,669 |
3,186 |
7,008 |
3,780 |
Depreciation and amortization |
5 |
117,793 |
118,926 |
352,144 |
350,475 |
Impairment of property, plant and equipment |
3 |
- |
32,197 |
- |
32,197 |
Financial expense |
6 |
37,632 |
34,071 |
112,492 |
102,485 |
Income taxes |
7 |
19,598 |
9,068 |
51,699 |
39,052 |
Profit for the period |
66,285 |
35,635 |
186,686 |
150,941 |
|
Profit for the period attributable to: |
|||||
Owners of the Corporation |
22,584 |
11,469 |
64,225 |
51,915 |
|
Non-controlling interest |
43,701 |
24,166 |
122,461 |
99,026 |
|
66,285 |
35,635 |
186,686 |
150,941 |
||
Earnings per share |
8 |
||||
Basic |
1.35 |
0.69 |
3.84 |
3.10 |
|
Diluted |
1.34 |
0.68 |
3.82 |
3.08 |
Three months ended May 31, |
Nine months ended May 31, |
|||
2015 |
2014 |
2015 |
2014 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
Profit for the period |
66,285 |
35,635 |
186,686 |
150,941 |
Other comprehensive income (loss) | ||||
Items to be subsequently reclassified to profit or loss | ||||
Cash flow hedging adjustments | ||||
Net change in fair value of hedging derivative financial instruments |
(1,878) |
(4,919) |
29,909 |
5,324 |
Net change in fair value of hedging derivative financial instruments reclassified to financial expense |
1,254 |
4,408 |
(29,716) |
(5,928) |
Related income taxes |
257 |
178 |
(169) |
(120) |
(367) |
(333) |
24 |
(724) |
|
Foreign currency translation adjustments | ||||
Net foreign currency translation differences on net investments in foreign operations |
(4,819) |
(14,392) |
101,205 |
23,087 |
Net changes in unrealized adjustments on translation of long-term debt designated as hedges of net investments in foreign operations |
3,036 |
8,524 |
(63,191) |
(13,234) |
(1,783) |
(5,868) |
38,014 |
9,853 |
|
(2,150) |
(6,201) |
38,038 |
9,129 |
|
Items not to be subsequently reclassified to profit or loss | ||||
Defined benefit plans actuarial adjustments |
||||
Remeasurement of net defined benefit pension plan liability |
3,713 |
(200) |
(3,924) |
667 |
Related income taxes |
(1,043) |
59 |
1,015 |
(172) |
2,670 |
(141) |
(2,909) |
495 |
|
Other comprehensive income (loss) for the period |
520 |
(6,342) |
35,129 |
9,624 |
Comprehensive income for the period |
66,805 |
29,293 |
221,815 |
160,565 |
Comprehensive income for the period attributable to: |
||||
Owners of the Corporation |
23,695 |
9,291 |
74,265 |
54,948 |
Non-controlling interest |
43,110 |
20,002 |
147,550 |
105,617 |
66,805 |
29,293 |
221,815 |
160,565 |
Notes |
May 31, 2015 |
August 31, 2014 |
|
(In thousands of Canadian dollars) |
$ |
$ |
|
Assets | |||
Current |
|||
Cash and cash equivalents |
74,718 |
63,831 |
|
Trade and other receivables |
126,432 |
123,094 |
|
Income taxes receivable |
15,223 |
22,254 |
|
Prepaid expenses and other |
20,133 |
18,090 |
|
Derivative financial instruments |
36,124 |
- |
|
272,630 |
227,269 |
||
Non-current |
|||
Other assets |
10,608 |
11,637 |
|
Property, plant and equipment |
1,904,392 |
1,852,270 |
|
Intangible assets |
2,065,506 |
1,986,187 |
|
Goodwill |
1,382,545 |
1,259,654 |
|
Derivative financial instruments |
- |
6,132 |
|
Deferred tax assets |
24,713 |
24,581 |
|
5,660,394 |
5,367,730 |
||
Liabilities and Shareholders' equity | |||
Liabilities |
|||
Current |
|||
Bank indebtedness |
13,420 |
3,228 |
|
Trade and other payables |
223,360 |
345,910 |
|
Provisions |
22,899 |
16,749 |
|
Income tax liabilities |
49,687 |
47,561 |
|
Deferred and prepaid revenue |
59,911 |
57,012 |
|
Derivative financial instruments |
83 |
- |
|
Balance due on a business combination, bank prime rate plus 1% |
2,000 |
2,000 |
|
Current portion of long-term debt |
9 |
271,636 |
32,349 |
642,996 |
504,809 |
||
Non-current |
|||
Long-term debt |
9 |
2,746,423 |
2,782,712 |
Deferred and prepaid revenue and other liabilities |
28,286 |
25,086 |
|
Pension plan liabilities and accrued employees benefits |
12,881 |
17,169 |
|
Deferred tax liabilities |
513,182 |
498,866 |
|
3,943,768 |
3,828,642 |
||
Shareholders' equity | |||
Equity attributable to owners of the Corporation |
|||
Share capital |
10 B) |
117,191 |
117,963 |
Share-based payment reserve |
5,702 |
5,858 |
|
Accumulated other comprehensive income |
11 |
21,274 |
9,131 |
Retained earnings |
430,771 |
381,013 |
|
574,938 |
513,965 |
||
Non-controlling interest |
1,141,688 |
1,025,123 |
|
1,716,626 |
1,539,088 |
||
5,660,394 |
5,367,730 |
Three months ended May 31, |
Nine months ended May 31, |
||||
Notes |
2015 |
2014 |
2015 |
2014 |
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Cash flow from operating activities |
|||||
Profit for the period |
66,285 |
35,635 |
186,686 |
150,941 |
|
Adjustments for: |
|||||
Depreciation and amortization |
5 |
117,793 |
118,926 |
352,144 |
350,475 |
Impairment of property, plant and equipment |
3 |
- |
32,197 |
- |
32,197 |
Financial expense |
6 |
37,632 |
34,071 |
112,492 |
102,485 |
Income taxes |
7 |
19,598 |
9,068 |
51,699 |
39,052 |
Share-based payment |
10 D) |
1,684 |
2,763 |
6,149 |
7,166 |
Loss on disposals and write-offs of property, plant and equipment |
136 |
770 |
1,548 |
2,065 |
|
Defined benefit pension plans contributions, net of expense |
427 |
(1,182) |
(8,468) |
(6,246) |
|
243,555 |
232,248 |
702,250 |
678,135 |
||
Changes in non-cash operating activities |
12 |
27,848 |
13,340 |
(110,532) |
(82,379) |
Financial expense paid |
(52,187) |
(44,210) |
(117,029) |
(107,316) |
|
Income taxes paid |
(18,530) |
(16,672) |
(56,079) |
(55,888) |
|
200,686 |
184,706 |
418,610 |
432,552 |
||
Cash flow from investing activities |
|||||
Acquisition of property, plant and equipment |
(100,666) |
(80,017) |
(300,436) |
(239,865) |
|
Acquisition of intangible and other assets |
(4,141) |
(4,943) |
(11,471) |
(13,672) |
|
Other |
778 |
25 |
1,043 |
605 |
|
(104,029) |
(84,935) |
(310,864) |
(252,932) |
||
Cash flow from financing activities |
|||||
Increase (decrease) in bank indebtedness |
(3,216) |
9,351 |
10,192 |
51 |
|
Net decreases under the revolving facilities |
(12,579) |
(163,598) |
(31,028) |
(186,088) |
|
Issuance of long-term debt, net of discounts and transaction costs |
- |
48,670 |
- |
48,670 |
|
Repayments of long-term debt |
(7,861) |
(4,819) |
(28,220) |
(10,870) |
|
Increase in deferred transaction costs |
- |
- |
(550) |
(1,346) |
|
Acquisition of subordinate voting shares held in trust under the Incentive Share Unit and Performance Share Unit Plans |
10 B) |
- |
(12) |
(1,979) |
(1,941) |
Dividends paid on multiple voting shares |
10 C) |
(470) |
(405) |
(1,410) |
(1,216) |
Dividends paid on subordinate voting shares |
10 C) |
(3,797) |
(3,298) |
(11,392) |
(9,846) |
Issuance of subordinate voting shares by a subsidiary to non-controlling interest |
26 |
553 |
5,577 |
4,981 |
|
Acquisition by a subsidiary from non-controlling interest of subordinate voting shares held in trust under the Incentive Share Unit and Performance Share Unit Plans |
- |
- |
(6,425) |
(6,934) |
|
Dividends paid on subordinate voting shares by a subsidiary to non- controlling interest |
(11,633) |
(9,924) |
(34,841) |
(29,738) |
|
(39,530) |
(123,482) |
(100,076) |
(194,277) |
||
Effect of exchange rate changes on cash and cash equivalents denominated in foreign currencies |
(331) |
(535) |
3,217 |
1,390 |
|
Net change in cash and cash equivalents |
56,796 |
(24,246) |
10,887 |
(13,267) |
|
Cash and cash equivalents, beginning of the period |
17,922 |
54,772 |
63,831 |
43,793 |
|
Cash and cash equivalents, end of the period |
74,718 |
30,526 |
74,718 |
30,526 |
Three months ended May 31, |
Nine months ended May 31, |
|||
2015 |
2014 |
2015 |
2014 |
|
$ |
$ |
$ |
$ |
|
Salaries, employee benefits and outsourced services |
107,494 |
103,999 |
313,358 |
302,680 |
Service delivery costs(1) |
156,654 |
148,808 |
461,685 |
445,907 |
Customer related costs(2) |
17,382 |
20,891 |
57,728 |
60,415 |
Other external purchases(3) |
29,280 |
29,286 |
90,274 |
83,583 |
310,810 |
302,984 |
923,045 |
892,585 |
Three months ended May 31, |
Nine months ended May 31, |
|||
2015 |
2014 |
2015 |
2014 |
|
$ |
$ |
$ |
$ |
|
Profit for the period attributable to owners of the Corporation |
22,584 |
11,469 |
64,225 |
51,915 |
Weighted average number of multiple and subordinate voting shares outstanding |
16,734,904 |
16,729,177 |
16,739,566 |
16,729,701 |
Effect of dilutive incentive share units |
78,482 |
102,646 |
80,369 |
103,475 |
Effect of dilutive performance share units |
18,987 |
- |
14,648 |
- |
Weighted average number of diluted multiple and subordinate voting shares outstanding |
16,832,373 |
16,831,823 |
16,834,583 |
16,833,176 |
Earnings per share |
||||
Basic |
1.35 |
0.69 |
3.84 |
3.10 |
Diluted |
1.34 |
0.68 |
3.82 |
3.08 |
May 31, |
February 28, |
November 30, |
August 31, |
May 31, |
|
2015 |
2015 |
2014 |
2014 |
2014 |
|
CONSOLIDATED |
|||||
Primary service units |
2,448,755 |
2,451,156 |
2,453,272 |
2,442,184 |
2,452,118 |
Television service customers |
998,043 |
1,004,481 |
1,014,629 |
1,023,094 |
1,034,991 |
HSI service customers |
905,057 |
898,807 |
887,988 |
869,453 |
865,597 |
Telephony service customers |
545,655 |
547,868 |
550,655 |
549,637 |
551,530 |
CANADA |
|||||
Primary service units |
1,936,923 |
1,943,658 |
1,951,317 |
1,946,022 |
1,956,444 |
Television service customers |
774,977 |
780,477 |
789,686 |
797,165 |
807,831 |
Penetration as a percentage of homes passed |
46.7% |
46.4% |
46.8% |
47.3% |
47.9% |
HSI service customers |
700,090 |
698,247 |
692,911 |
679,584 |
676,802 |
Penetration as a percentage of homes passed |
42.2% |
41.5% |
41.1% |
40.3% |
40.2% |
Telephony service customers |
461,856 |
464,934 |
468,720 |
469,273 |
471,811 |
Penetration as a percentage of homes passed |
27.8% |
27.6% |
27.8% |
27.8% |
28.0% |
UNITED STATES |
|||||
Primary service units |
511,832 |
507,498 |
501,955 |
496,162 |
495,674 |
Television service customers |
223,066 |
224,004 |
224,943 |
225,929 |
227,160 |
Penetration as a percentage of homes passed |
42.9% |
43.1% |
43.5% |
43.7% |
43.8% |
HSI service customers |
204,967 |
200,560 |
195,077 |
189,869 |
188,795 |
Penetration as a percentage of homes passed |
39.4% |
38.6% |
37.7% |
36.7% |
36.4% |
Telephony service customers |
83,799 |
82,934 |
81,935 |
80,364 |
79,719 |
Penetration as a percentage of homes passed |
16.1% |
16.0% |
15.8% |
15.5% |
15.4% |