Rogers 2008 Annual Report Download - page 30

26 ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Summarized Consolidated Financial Results
Years ended December 31,
(In millions of dollars, except per share amounts) 2008 2007 % Chg
Operating revenue
Wireless $ 6,335 $ 5,503 15
Cable
Cable Operations 2,878 2,603 11
RBS 526 571 (8)
Rogers Retail 417 393 6
Corporate items and eliminations (12) (9) 33
3,809 3,558 7
Media 1,496 1,317 14
Corporate items and eliminations (305) (255) 20
Total 11,335 10,123 12
Adjusted operating profit (loss) (1)
Wireless 2,806 2,589 8
Cable
Cable Operations 1,171 1,008 16
RBS 59 12 n/m
Rogers Retail 3 (4) n/m
1,233 1,016 21
Media 142 176 (19)
Corporate items and eliminations (121) (78) 55
Adjusted operating profit (1) 4,060 3,703 10
Stock option plan amendment (3) – (452) n/m
Stock-based compensation recovery (expense) (3) 100 (62) n/m
Integration and restructuring expenses (4) (51) (38) 34
Contract renegotiation fee (5) – (52) n/m
Adjustment for CRTC Part II fees decision (6) (31) – n/m
Operating profit (1) 4,078 3,099 32
Other income and expense, net (7) 3,076 2,462 25
Net income $ 1,002 $ 637 57
Net income per share:
Basic $ 1.57 $ 1.00 57
Diluted 1.57 0.99 59
As adjusted: (2)
Net income $ 1,260 $ 1,066 18
Net income per share:
Basic $ 1.98 $ 1.67 19
Diluted 1.98 1.66 19
Additions to property, plant and equipment (“PP&E”) (1)
Wireless $ 929 $ 822 13
Cable
Cable Operations 829 710 17
RBS 36 83 (57)
Rogers Retail 21 21 –
886 814 9
Media 81 77 5
Corporate 125 83 51
Total $ 2,021 $ 1,796 13
(1) As defined. See the sections entitled “Supplementary Information: Non-GAAP Calculations” and “Key Performance Indicators and Non-GAAP Measures”. Operating profit should not be considered as a substi-
tute or alternative for operating income or net income, in each case determined in accordance with Canadian generally accepted accounting principles (“GAAP”). See the section entitled “Reconciliation of Net
Income to Operating Profit and Adjusted Operating Profit for the Period” for a reconciliation of operating profit and adjusted operating profit to operating income and net income under Canadian GAAP and
the section entitled “Key Performance Indicators and Non-GAAP Measures”.
(2) For details on the determination of the ‘as adjusted’ amounts, which are non-GAAP measures, see the sections entitled “Supplementary Information: Non-GAAP Calculations” and “Key Performance
Indicators and Non-GAAP Measures”. The ‘as adjusted’ amounts presented above are reviewed regularly by management and our Board of Directors in assessing our performance and in making decisions
regarding the ongoing operations of the business and the ability to generate cash flows. The ‘as adjusted’ amounts exclude (i) the impact of a one-time non-cash charge related to the introduction of a cash
settlement feature for employee stock options; (ii) stock-based compensation (recovery) expense; (iii) integration and restructuring expenses; (iv) the impact of a one-time charge resulting from the renego-
tiation of an Internet-related services agreement; (v) an adjustment for Canadian Radio-television and Telecommunications Commission (“CRTC”) Part II fees related to prior periods; and (vi) in respect of net
income and net income per share, debt issuance costs, loss on repayment of long-term debt, impairment losses on goodwill, intangible assets and other long-term assets; and the related income tax impact of
the above amounts.
(3) See the section entitled “Stock-based Compensation”.
(4) Costs incurred relate to severances resulting from the restructuring of our employee base to improve our cost structure in light of the declining economic conditions, the integration of Call-Net Enterprises Inc. (“Call-
Net”), Futureway Communications Inc. (“Futureway”) and Aurora Cable TV Limited (“Aurora Cable”), the restructuring of Rogers Business Solutions (“RBS”), and the closure of certain Rogers Retail stores.
(5) One-time charge resulting from the renegotiation of an Internet-related services agreement. See the section entitled “Cable Operations Operating Expenses”.
(6) Relates to an adjustment for CRTC Part II fees related to prior periods. See the section entitled “Government Regulation and Regulatory Developments”.
(7) See the section entitled “Reconciliation of Net Income to Operating Profit and Adjusted Operating Profit for the Period”.
n/m: not meaningful.