Rogers 2006 Annual Report Download - page 75

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RO GER S CO MMU NIC AT ION S IN C . 20 0 6 ANN UA L RE POR T
MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
2005 Quarterly Consolidated Financial Summar y
2005
(In millions of dollars, except per share amounts) Q1 Q2 Q3 Q4
Operating revenue
Wireless (1) $ 851 $ 933 $ 1,026 $ 1,050
Cable and Telecom 505 500 726 761
Media 219 293 285 300
Corporate and eliminations (17) (25) (33) (40)
1,558 1,701 2,004 2,071
Operating profit (2)
Wireless 298 364 383 292
Cable and Telecom 181 172 195 217
Media 12 44 33 39
Corporate and eliminations (15) (15) (22) (34)
476 565 589 514
Depreciation and amortization (3) 344 362 379 404
Operating income 132 203 210 110
Interest on long-term debt (3) (183) (177) (176) (163)
Other income (expense) 8 (3) 18 (22)
Income tax reduction (expense) (3) (4) (3) 8
Net income (loss) for the period $ (46) $ 19 $ 49 $ (67)
Net income (loss) per share (4) – basic $ (0.09) $ 0.04 $ 0.08 $ (0.11)
– diluted $ (0.09) $ 0.04 $ 0.08 $ (0.11)
Operating profit margin % (2) 31% 33% 29% 25%
Additions to PP&E (2) $ 260 $ 345 $ 319 $ 431
(1) Certain current and prior year amounts related to equipment sales have been reclassified. See “Reclassification of Wireless Equipment Sales and Cost of Sales” section for further details.
(2) As defined in “Key Performance Indicators Non-GAAP Measures” section.
(3) Certain prior year amounts have been reclassified to conform to the current year presentation.
(4) Prior period per share amounts have been retroactively adjusted to reflect a two-for-one split of the Company’s Class A Voting and Class B Non-Voting shares on December 29, 2006.
All internal control systems, no matter how well designed, have
inherent limitations. Therefore, even those systems determined to
be effective can provide only reasonable assurance with respect to
financial statement preparation and presentation.
Management maintains a comprehensive system of controls intended
to ensure that transactions are executed in accordance with manage-
ment’s authorization, assets are safeguarded, and financial records
are reliable. Management also takes steps to see that information
and communication flows are effective and to monitor performance,
including performance of internal control procedures.
Management assessed the effectiveness of our internal control over
financial reporting as of December 31, 2006 based on the criteria
set forth in the Internal Control-Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Based on this assessment, management has
concluded that, as of December 31, 2006, our internal control over
financial reporting is effective. Our independent auditor, KPMG LLP,
has issued an attestation report on Management’s assessment of the
internal control over financial reporting.
CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
As of the end of the period covered by this report (the “Evaluation
Date”), we conducted an evaluation (under the supervision and with
the participation of our management, including the chief executive
officer and chief financial officer), pursuant to Rule 13a-15 promul-
gated under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), of the effectiveness of the design and operation of
our disclosure controls and procedures. Based on this evaluation, our
chief executive officer and chief financial officer concluded that as
of the Evaluation Date such disclosure controls and procedures were
effective.
Management ’s Repor t on Internal Control Over Financial Reporting
The management of our company is responsible for establishing
and maintaining adequate internal control over financial reporting.
Our internal control system was designed to provide reasonable
assurance to our management and Board of Directors regarding
the preparation and fair presentation of published financial state-
ments in accordance with generally accepted accounting principles.