Rogers 2008 Annual Report Download - page 81

ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT 77
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ADJUSTED QUARTERLY CONSOLIDATED FINANCIAL SUMMARY (1)
(In millions of dollars, 2008 2007
except per share amounts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Income Statement
Operating Revenue
Wireless $ 1,431 $ 1,522 $ 1,727 $ 1,655 $ 1,231 $ 1,364 $ 1,442 $ 1,466
Cable 925 938 961 985 855 881 899 923
Media 307 409 386 394 266 348 339 364
Corporate and eliminations (54) (66) (92) (93) (54) (66) (69) (66)
2,609 2,803 2,982 2,941 2,298 2,527 2,611 2,687
Adjusted operating profit (2)
Wireless 705 769 693 639 581 664 686 658
Cable 303 304 318 313 228 243 265 265
Media 2 52 43 46 19 45 46 63
Corporate and eliminations (26) (36) (29) (30) (14) (22) (13) (29)
984 1,089 1,025 968 814 930 984 957
Depreciation and amortization 440 420 429 471 400 398 397 408
Adjusted operating income 544 669 596 497 414 532 587 549
Interest on long-term debt (138) (133) (147) (157) (149) (152) (140) (138)
Other income (expense) (3) 11 16 (31) 7 23 (14) –
Income tax reduction (expense) (133) (183) – (145) (86) (104) (165) (109)
Adjusted net income for the period $ 270 $ 364 $ 465 $ 164 $ 186 $ 299 $ 268 $ 302
Adjusted net income (loss) per share:
Basic $ 0.54 $ 0.47 $ 0.78 $ 0.26 $ 0.29 $ 0.47 $ 0.42 $ 0.47
Diluted $ 0.54 $ 0.47 $ 0.78 $ 0.26 $ 0.29 $ 0.47 $ 0.41 $ 0.47
Additions to property, plant
and equipment(2) $ 321 $ 481 $ 436 $ 783 $ 394 $ 381 $ 397 $ 624
(1) This quarterly summary has been adjusted to exclude the impact of the adoption of a cash settlement feature for employee stock options, stock-based compensation expense, integration and restruc-
turing costs, an adjustment to CRTC Part II fees related to prior periods, a one-time charge related to the renegotiation of an Internet-related services agreement, losses on impairment of goodwill,
intangible assets and other long-term assets, debt transaction costs, losses on repayment of long-term debt and the income tax impact related to the above items. Certain prior year numbers have been
reclassified to conform to the current year presentation. See the section entitled “Key Performance Indicators and Non-GAAP Measures”. The adjustment related to Part II CRTC fees is applicable to the
third quarter of 2007 and does not impact the full year 2007.
(2) As defined. See the section entitled “Key Performance Indicators and Non-GAAP Measures”.
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 Acting
Chief Executive Officer and Chief Financial Officer), pursuant to
Rule 13a-15 promulgated 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 Acting Chief Executive Officer and
Chief Financial Officer concluded that as of the Evaluation Date
such disclosure controls and procedures were effective.
Management’s Report 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.
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 management’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, 2008, based on the cri-
teria 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, 2008, our internal control over
financial reporting is effective. Our independent auditor, KPMG
LLP, has issued an audit report that we maintained, in all mate-
rial respects, effective internal control over financial reporting as
of December 31, 2008, based on the criteria established in Internal
Control – Integrated Framework issued by the COSO.