Rogers 2012 Annual Report Download - page 37

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MANAGEMENT’S DISCUSSION AND ANALYSIS
CONSOLIDATED FINANCIAL RESULTS
Years ended December 31,
(In millions of dollars, except per share amounts) 2012 2011 % Chg
Operating revenue
Wireless $ 7,280 $ 7,138 2
Cable 3,358 3,309 1
RBS 351 405 (13)
Media 1,620 1,611 1
Corporate items and intercompany eliminations (123) (117) 5
Total operating revenue 12,486 12,346 1
Adjusted operating profit(1)
Wireless 3,063 3,036 1
Cable 1,605 1,549 4
RBS 89 86 3
Media 190 180 6
Corporate items and intercompany eliminations (113) (112) 1
Adjusted operating profit(1) 4,834 4,739 2
Depreciation and amortization (1,819) (1,743) 4
Finance costs excluding loss on repayment of long-term debt (664) (639) 4
Other income, net 15 1 n/m
Share of the income of associates and joint ventures excluding gain on spectrum distribution(1)(2) 27 (71)
Adjusted net income before income taxes 2,368 2,365 –
Adjusted income tax expense(1)(3) (580) (629) (8)
Adjusted net income(1) $ 1,788 $ 1,736 3
Adjusted basic earnings per share(1) $ 3.45 $ 3.20 8
Adjusted diluted earnings per share(1) 3.43 3.17 8
Adjusted operating profit(1) $ 4,834 $ 4,739 2
Stock-based compensation expense (77) (64) 20
Integration, restructuring and acquisition expenses (92) (56) 64
Settlement of pension obligations –(11) n/m
Operating profit(1) 4,665 4,608 1
Depreciation and amortization (1,819) (1,743) 4
Impairment of assets (80) – n/m
Operating income 2,766 2,865 (3)
Finance costs (664) (738) (10)
Other income, net 15 1 n/m
Share of the income of associates and joint ventures 235 7 n/m
Income before income taxes 2,352 2,135 10
Income tax expense (620) (545) 14
Net income from continuing operations 1,732 1,590 9
Loss from discontinued operations (32) (27) 19
Net income $ 1,700 $ 1,563 9
Basic earnings per share – continuing operations $ 3.34 $ 2.93 14
Diluted earnings per share – continuing operations 3.32 2.91 14
Basic earnings per share 3.28 2.88 14
Diluted earnings per share 3.26 2.86 14
Total additions to PP&E $ 2,142 $ 2,127 1
Pre-tax free cash flow(1) 2,029 1,973 3
After-tax free cash flow(1) 1,649 1,874 (12)
(1) See the section “Key Performance Indicators and Non-GAAP Measures”. Operating profit should not be considered as a substitute or alternative for operating income or net
income, in each case determined in accordance with IFRS.
(2) Represents the income of associates and joint ventures of $235 million less the gain on spectrum distribution of $233 million, for the year ended December 31, 2012.
(3) Represents income tax expense of $620 million less $40 million related to income tax on adjusted items, for the year ended December 31, 2012.
nm: not meaningful.
2012 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 33