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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
$
102 million
p
rimaril
y
due to hi
g
her o
p
eratin
g
income before amortization of $100 million. I
n
t
he fourth quarter of 2012, net income decreased
$
115 million, primarily due to lower
o
perating income before amortization of
$
66 million and increased income tax expense of
$
31
m
illion. The fourth
q
uarter also included a loss of $26 million in res
p
ect of the electrical fire a
t
t
he Company’s head office offset by a pension recovery of
$
25 million related to past servic
e
ad
j
ustments. In the third
q
uarter of 2012, net income increased
$
70 million mainl
y
due t
o
h
i
g
her o
p
eratin
g
income before amortization of $74 million
p
artiall
y
offset b
y
increased incom
e
t
ax expense of
$
17 million. In the second quarter of 2012, net income decreased
$
24 millio
n
d
ue to a decline in operating income before amortization of
$
73 million partially offset by lower
income tax ex
p
ense of $53 million. As a result of the aforementioned chan
g
es in net income
,
basic and diluted earnings per share have trended accordingly
.
The
f
ollow
i
ng
f
urther ass
i
sts
i
n expla
i
n
i
ng the trend o
f
quarterly revenue and operat
i
ng
i
ncome
before amortization
:
G
r
o
w
t
h
i
n
subsc
r
ibe
r
statistics
(1)(2)
as fo
ll
o
w
s:
2013
2012
Subsc
r
ibe
r
Statistics
F
i
r
st Seco
n
d
Th
i
r
d
F
ou
r
t
hF
i
r
st Seco
n
d
Th
i
r
d
F
ou
r
th
V
i
deo customer
s
(23
,
8
77
) (29
,5
2
5
) (26
,57
8) (29
,5
22)
(22,886) (9,6
5
6) (21,2
77
) (16,119)
I
n
te
rn
et custo
m
e
r
s
5
,
63
77,
6
75 4,
1
57
10
,5
6
4
8
,74
820
,
812 2
,
230 6
,45
8
D
igital Phone lines
1
6
,
750 13
,
225 17
,
719 4
,
72
2
16
,
489 51
,
125 38
,
597 28
,
570
D
TH customer
s
(
4,
021) 1
,
328 (2
,
930) (83
5
)
531 1
,
2
74
(1
,
820) 1
,
1
55
(1) S
ubscr
i
ber numbers
f
or the com
p
arat
i
ve
p
er
i
od have been restated to remove
p
end
i
n
g
i
nstalls and have also been ad
j
usted to re
f
lect the results o
f
a pre-m
i
grat
i
on subscr
i
ber
audit recently undertaken prior to the planned migration of customers to Shaw’s ne
w
bi
ll
i
n
g
s
y
stem. The aud
i
tad
j
ustments relate
p
r
i
mar
i
l
y
to
p
er
i
ods
p
r
i
or to
2009
and re
f
lec
t
a reduct
i
on o
f
approx
i
mately
28
,
600
and
1
,
800
V
i
deo and Internet customers
,
respectively and an increase of 900 Digital phone lines. Also, given the growth in Digita
l
c
able
p
enetrat
i
on, the
C
om
p
an
y
now comb
i
ned the re
p
ort
i
n
g
o
f
Bas
i
c cable and D
igi
tal
cab
l
easa
V
ideo custo
m
e
r
.
(2) Subscriber numbers have been restated for comparative purposes to remove approximately
41
,
000
V
i
deo customers,
3
4,
000
Internet customers and
38
,
000
D
igi
tal
p
hone l
i
nes as
a
r
esu
l
to
f
t
h
esa
l
eo
fM
ou
n
ta
in
Cab
l
e
.
4
0