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78 ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SUMMARY FINANCIAL RESULTS OF LONG-TERM
DEBT GUARANTORS
The Company’s outstanding public debt, $2.4 billion bank credit
facility and Derivatives are unsecured obligations of RCI. RCI’s
public debt originally issued by Rogers Cable Inc. has Rogers
Cable Communications Inc. (“RCCI”), a wholly owned subsidiary,
as a co-obligor and Rogers Wireless Partnership (“RWP”), a wholly
owned subsidiary, as an unsecured guarantor while RCI’s public debt
originally issued by Rogers Wireless Inc. has RWP as a co-obligor
and RCCI as an unsecured guarantor. Similarly, RCCI and RWP have
provided unsecured guarantees for the public debt issued by RCI,
the bank credit facility and the Derivatives. Accordingly, RCI’s
bank debt, senior public debt and Derivatives rank pari passu on
an unsecured basis. Prior to its redemption in December 2009, the
Company’s US$400 million 8.00% Senior Subordinated Notes were
subordinated to its senior debt.
The following table sets forth the selected unaudited consolidating
summar y financial information for RCI for the periods
identified below, presented with a separate column for: (i) RCI;
(ii) RWP and RCCI (the “Guarantors”), on a combined basis;
(iii) our non-guarantor subsidiaries (“Other Subsidiaries”) on a
combined basis; (iv) consolidating adjustments; and (v) the total
consolidated amounts.
(1) This quarterly summary has been adjusted to exclude stock-based compensation (recovery) expense, integration and restructuring expenses, contract termination fees, an adjustment to CRTC Part II
fees related to prior periods, pension settlement, debt issuance costs, loss on repayment of long-term debt, impairment losses on goodwill, intangible assets and other long-term assets, 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”.
(2) As defined. See the section entitled “Key Performance Indicators and Non-GAAP Measures”.
2009 2008
(in millions of dollars,
except per share amounts) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Operating Revenue
Wireless $ 1,544 $ 1,616 $ 1,760 $ 1,734 $ 1,431 $ 1,522 $ 1,727 $ 1,655
Cable 968 972 989 1,019 925 938 961 985
Media 284 366 364 393 307 409 386 394
Corporate and eliminations (49) (63) (77) (89) (54) (66) (92) (93)
2,747 2,891 3,036 3,057 2,609 2,803 2,982 2,941
Adjusted operating profit (loss)(2)
Wireless 710 742 846 744 705 769 693 639
Cable 324 332 329 325 303 304 318 313
Media (10) 37 36 52 2 52 43 46
Corporate and eliminations (19) (28) (30) (20) (26) (36) (29) (30)
1,005 1,083 1,181 1,101 984 1,089 1,025 968
Depreciation and amortization 444 446 416 424 440 420 429 471
Adjusted operating income 561 637 765 677 544 669 596 497
Interest on long-term debt (152) (156) (166) (173) (138) (133) (147) (157)
Other income (expense) (17) 73 44 (23) (3) 11 16 (31)
Income tax expense (136) (142) (138) (111) (133) (183) – (145)
Adjusted net income for the period $ 256 $ 412 $ 505 $ 370 $ 270 $ 364 $ 465 $ 164
Adjusted net income per share:
Basic $ 0.40 $ 0.65 $ 0.82 $ 0.61 $ 0.42 $ 0.57 $ 0.73 $ 0.26
Diluted $ 0.40 $ 0.65 $ 0.82 $ 0.61 $0.42 $ 0.57 $ 0.73 $ 0.26
Additions to property, plant and equipment(2) $ 359 $ 434 $ 491 $ 571 $321 $ 481 $ 436 $ 783
Adjusted Quarterly Consolidated Financial Summary(1)