Shaw 2014 Annual Report Download - page 44

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
Company would pay approximately $510 million in common share dividends during 2015
(before taking into account the Company’s dividend reinvestment plan (“DRIP”), see further
details on page 54). While the Company expects to generate sufficient free cash flow in 2015
to fund these dividend payments, if actual results are different from expectations there can be
no assurance that the Company will continue common share dividend payments at the current
level.
xiii) Acquisitions and other strategic transactions
The Company may from time to time make acquisitions and enter into other strategic
transactions. In connection with these acquisitions and strategic transactions, Shaw may fail to
realize the anticipated benefits, incur unanticipated expenses and/or have difficulty
incorporating or integrating the acquired business, the occurrence of which could have a
material adverse effect on the Company.
II. SUMMARY OF QUARTERLY RESULTS
Quarter Revenue
Operating
income
before
restructuring
costs and
amortization(1)
Net income
attributable
to equity
shareholders
Net
income(2)
Basic
earnings
per share
Diluted
earnings
per share
($millions Cdn except per share amounts)
2014
Fourth 1,263 525 187 192 0.40 0.40
Third 1,342 601 219 228 0.47 0.47
Second 1,274 528 215 222 0.46 0.46
First 1,362 608 236 245 0.51 0.51
Total 5,241 2,262 857 887 1.84 1.84
2013
Fourth 1,246 496 111 117 0.24 0.24
Third 1,326 585 239 250 0.52 0.52
Second 1,251 538 172 182 0.38 0.38
First 1,319 601 224 235 0.50 0.49
Total 5,142 2,220 746 784 1.64 1.63
(1) See key performance drivers on page 21.
(2) Net income attributable to both equity shareholders and non-controlling interests.
Quarterly revenue and operating income before restructuring costs and amortization are
primarily impacted by the seasonality of the Media division and fluctuate throughout the year
due to a number of factors including seasonal advertising and viewing patterns. Typically, the
Media business has higher revenue in the first quarter driven by the fall launch of season
premieres and high demand and the third quarter which is impacted by season finales and mid
season launches. Advertising revenue typically declines in the summer months of the fourth
quarter when viewership is generally lower.
Net income has fluctuated quarter-over-quarter primarily as a result of the changes in operating
income before restructuring costs and amortization described above and the impact of the net
change in non-operating items. In the fourth quarter of 2014, net income decreased by $36
million primarily due to lower operating income before restructuring costs and amortization of
40