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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
F
INAN
C
IAL MEA
SU
RE
S:
i)
Revenu
e
R
evenue is a measurement determined in accordance with International Financial Reporting
Standards (“IFRS”). It re
p
resents the inflow of cash, receivables or other consideration arisin
g
f
rom the sale o
fp
roducts and serv
i
ces. Revenue
i
s net o
fi
tems such as trade or volum
e
d
iscounts, agency commissions and certain excise and sales taxes. It is the base on which fre
e
cash flow, a key performance driver, is determined; therefore, it measures the potential t
o
d
el
i
ver
f
ree cash
f
low as well as
i
nd
i
cat
i
n
gg
rowth
i
n a com
p
et
i
t
i
ve market
p
lace
.
T
he
C
om
p
an
y
’s cont
i
nuous d
i
sclosure documents ma
yp
rov
i
de d
i
scuss
i
on and anal
y
s
i
so
f
non-
IFRS financial measures. These financial measures do not have standard definitions
p
rescribe
d
b
y IFRS and therefore may not be comparable to similar measures disclosed by other
com
p
an
i
es. The
C
om
p
an
y
’s cont
i
nuous d
i
sclosure re
q
u
i
rements ma
y
also
p
rov
i
de d
i
scuss
i
o
n
a
nd anal
y
s
i
so
f
add
i
t
i
onal
G
AAP measures. Add
i
t
i
onal
G
AAP measures
i
nclude l
i
ne
i
tems,
h
eadings and sub-totals included in financial statements. The Company utilizes these measure
s
i
n mak
i
n
g
o
p
erat
i
n
g
dec
i
s
i
ons and assess
i
n
gi
ts
p
er
f
ormance.
C
erta
i
n
i
nvestors, anal
y
sts and
others ut
i
l
i
ze these measures
i
n assess
i
n
g
the
C
om
p
an
y
’s o
p
erat
i
onal and
fi
nanc
i
al
p
er
f
ormance
a
nd as an indicator of its ability to service debt and return cash to shareholders. These non-
IFR
S
measures and add
i
t
i
onal
G
AAP measures have not been
p
resented as an alternat
i
ve to ne
t
i
ncome or an
y
other measure o
fp
er
f
ormance or l
iq
u
i
d
i
t
yp
rescr
i
bed b
y
IFR
S
. The
f
ollow
i
n
g
contains a description of the Company’s use of non-IFRS financial measures and additional
G
AAP measures and
p
rov
i
des a reconc
i
l
i
at
i
on to the nearest IFR
S
measure or
p
rov
i
des a
refe
r
e
n
ce to suc
hr
eco
n
ci
l
iatio
n.
ii) Op
erat
i
n
gi
ncome be
f
ore amort
i
zat
i
on and o
p
erat
i
n
g
mar
gin
O
perat
i
ng
i
ncome be
f
ore amort
i
zat
i
on
i
s calculated as revenue less operat
i
ng, general and
administrative expenses. It is intended to indicate the Company’s ability to service and/or incu
r
d
ebt, and there
f
ore
i
t
i
s calculated be
f
ore amort
i
zat
i
on
(
a non-cash ex
p
ense
)
and
i
nterest
.
O
perat
i
ng
i
ncome be
f
ore amort
i
zat
i
on
i
s also one o
f
the measures used by the
i
nvest
i
ng
community to value the business. Operating margin is calculated by dividing operating income
be
f
ore amort
i
zat
i
on b
y
revenue
.
R
elat
i
ve
i
ncreases
p
er
i
od-over-
p
er
i
od
i
no
p
erat
i
n
gi
ncome be
f
ore amort
i
zat
i
on and
i
no
p
erat
i
n
g
m
argin are indicative of the Company’s success in delivering valued products and services, and
engaging programming content to its customers in a cost-effective manner.
Year ended August 31
,
(
$ millions Cdn)
2
013 2012
Op
erat
i
n
gi
ncome
1
,
366
1,319
A
dd back (deduct) amortization
:
De
f
erred e
q
u
ip
ment revenue
(121)
(11
5
)
Deferred equipment cost
s
2
57 231
Property, plant and equ
i
pment,
i
ntang
i
bles and other
718
692
Op
erat
i
n
gi
ncome be
f
ore amort
i
zat
i
on
2
,
220
2,12
7
21