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%