Cogeco 2004 Annual Report Download - page 24

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MANAGEMENT’S DISCUSSION AND ANALYSIS
22 Cogeco Cable Inc. 2004
In the normal course of business, Cogeco Cable enters into
agreements containing features that meet the criteria for a
guarantee. In connection with the sale of businesses or assets,
the Corporation has agreed to indemnify the purchaser against
claims related to events, which occurred prior to the sale. Under
the terms of the Senior Secured Notes and the Second Secured
Debentures, Cogeco Cable has agreed to indemnify the other
parties against changes in regulation relative to withholding
taxes. The nature of the indemnification agreements prevents
the Corporation from estimating the maximum potential liability
it could be required to pay. As at August 31, 2004, no liability
has been recorded associated with these indemnifications.
Supplementary information on guarantees is presented in
Note 14 on page 48.
THREE-YEAR ANNUAL AND
QUARTERLY FINANCIAL HIGHLIGHTS
Three-Year Financial Highlights
The following financial highlights have been restated to reflect
the impact of the adoption of new accounting standards regarding
the timing of revenue recognition and certain related costs and
the classification of certain items such as revenue, expense or
capitalized costs. See the “Adoption of New Accounting Standards
– Revenue Recognition” section on page 10 for a detailed descrip-
tion of these new accounting standards.
Years ended August 31, 2004 2003 2002
(in thousands of dollars, (restated) (restated)
except per share data) $$$
Revenue 526,480 489,194 460,502
Operating Income 203,246 175,609 159,500
Net loss 32,194 124 4,524
Net loss per share
Basic 0.81 0.00 0.11
Diluted 0.81 0.00 0.11
Free Cash Flow 43,534 2,406 (39,735)
Total assets 1,761,379 1,802,744 1,812,475
Long-term liabilities 956,956 972,087 990,653
Commitments and Guarantees
Cogeco Cable’s contractual obligations as at August 31, 2004
are shown in the table below:
Years ended August 31, 2005 2006 2007 2008 2009 Thereafter Total
(in thousands of dollars) $$$$$$$
Long-term debt
(1)
1,400 1,520 183,000 — 388,650 175,000 749,570
Capital lease obligations
(2)
1,244 1,011 819 443 5 — 3,522
Operating leases and others 18,246 17,083 14,785 13,957 14,137 15,549 93,757
Other long-term obligations
(3)
206,688
Total contractual obligations
(4)
20,890 19,614 198,604 14,400 402,792 190,549 1,053,537
(1)
Includes principal repayments and the impact of cross-currency swap
agreements but excludes capital leases.
(2)
Includes principal repayments and financial expense.
(3)
Other long-term liabilities reflected on Cogeco Cable’s balance sheet, including
deferred and prepaid income, pension plan liabilities and accrued employee
benefits and future income tax liabilities. The nature of those obligations
prevents the Corporation from estimating an annual breakdown.
(4)
Annual breakdown excludes other long-term obligations.