Rogers 2014 Annual Report Download - page 44

MANAGEMENT’S DISCUSSION AND ANALYSIS
ENGAGED PEOPLE
For our team of approximately 27,000 employees, we strive to create a
great workplace, focusing on all aspects of the employee experience,
which include:
• engaging employees and building high-performing teams through
initiatives including engagement surveys and leadership
development programs;
• aiming to attract and retain top talent through effective training and
development, performance-driving employee recognition
programs, and career progression programs for front-line
employees;
• maintaining our commitment to diversity and inclusion; and
• providing a safe workplace.
POWERFUL BRANDS
The Rogers brand has strong national recognition through our
established network, extensive distribution, recognizable media
content and programming, advertising, event sponsorships including
the Rogers Cup, community investment including Rogers Youth Fund,
and naming rights to some of Canada’s landmark buildings including
the Rogers Centre in Toronto, Rogers Arena in Vancouver, and Rogers
Place in Edmonton.
We also own or utilize some of Canada’s most recognized brands
including:
• The wireless brands of Rogers, Fido and Chatr;
• over 20 TV stations including Sportsnet, The Shopping Channel,
FX (Canada) and FXX (Canada), OMNI, and City;
• over 40 publications including Maclean’s, Chatelaine, Flare, Hello!
Canada and Canadian Business;
• Next Issue Canada with a catalogue of nearly 150 premium
Canadian and US magazine titles;
• over 50 radio stations including Kiss 92.5, 98.1 CHFI, 680 News,
and Sportsnet 590 The Fan;
• major league sports teams including the Toronto Blue Jays and
investments in the Toronto Maple Leafs and the Toronto Raptors;
• shomi, a subscription video-on-demand service; and
• VICE, a global youth media company producing and distributing
global online video content.
FINANCIAL STRENGTH AND FLEXIBILITY
We have an investment grade balance sheet, conservative debt
leverage and significant available liquidity. Our capital resources
consist primarily of cash provided by operating activities, cash and cash
equivalents, available lines of credit, funds available under our
accounts receivable securitization programandissuancesoflong-term
debt. We also own approximately $1.1 billion of marketable equity
securities in publicly traded companies as at December 31, 2014.
The following information is forward-looking and should be read in
conjunction with “About forward-looking information” and “Risks and
Uncertainties Affecting Our Business” and other disclosure about
various economic, competitive and regulatory assumptions, factors
and risks that could cause our actual future financial and operating
resultstodifferfromthosecurrentlyexpected.
We anticipate generating a net cash surplus in 2015 from our cash
provided by operating activities. We expect that we will have sufficient
capital resources to satisfy our cash funding requirements in 2015,
including the funding of dividends on our common shares, repayment
of maturing long-term debt and other financing activities, investing
activities, and other requirements, taking into account our opening
cash balance, cash provided by operating activities, the amount
available under our $2.5 billion bank credit facility, our accounts
receivable securitization program and funds available to us from the
issuance of other bank, publicly issued or private placement debt from
time to time. As at December 31, 2014, there were no significant
restrictions on the flow of funds between Rogers and its subsidiary
companies.
We believe that we can satisfy foreseeable additional funding
requirements by issuing additional debt financing, which, depending
on market conditions, could include restructuring our existing bank
credit and letter of credit facilities, or entering into new bank credit
facilities, issuing public or private debt, amending the terms of our
accounts receivable securitization program or issuing equity. We may
also opportunistically refinance a portion of existing debt depending
on market conditions and other factors. There is no assurance,
however, that these financing initiatives will or can be done as they
become necessary.
HEALTHY TRADING VOLUMES AND HISTORY
OF DIVIDEND GROWTH
Our Class B Non-Voting common shares actively trade on the TSX and
NYSE with a combined average daily trading volume of approximately
1.3 million shares. In addition, our Class A Voting common shares
trade on the TSX. Dividends are the same on both classes of shares
and have been increased in each of the last 12 years. In 2014, each
share paid an annualized dividend of $1.83, which we recently
increased by 5% to $1.92 per share for 2015.
40 ROGERS COMMUNICATIONS INC. 2014 ANNUAL REPORT