Cogeco 2006 Annual Report Download - page 35

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Management’s Discussion and Analysis COGECO CABLE INC. 2006 33
THREE-YEAR ANNUAL FINANCIAL HIGHLIGHTS AND QUARTERLY FINANCIAL HIGHLIGHTS
THREE-YEAR FINANCIAL HIGHLIGHTS
YEARS ENDED AUGUST 31, 2006 2005 2004
(in thousands of dollars, except per share data) $ $ $
REVENUE 620,001 554,404 526,480
OPERATING INCOME BEFORE AMORTIZATION 252,978 227,521 203,246
NET INCOME (LOSS) 65,556 28,721 (32,194)
PER SHARE DATA
NET INCOME (LOSS) PER SHARE
BASIC(1) 1.64 0.72 (0.81)
DILUTED(1) 1.63 0.72 (0.81)
DIVIDEND(1) 0.16 0.10 0.00
FREE CASH FLOW 30,293 45,267 43,534
TOTAL ASSETS 2,602,603 1,755,796 1,761,379
LONG-TERM LIABILITIES 1,420,378 914,315 956,956
( 1 ) PER MULTIPLE VOTING SHARE AND PER SUBORDINATE VOTING SHARE.
QUARTERLY FINANCIAL HIGHLIGHTS
Cogeco Cable’s operating results are not generally subject to material seasonal fl uctuations. However, the loss in basic
service customers is usually greater, and the addition of HSI service customers is generally lower in the third quarter,
mainly because students leave their campus at the end of the school year. Cogeco Cable offers its services in several
university and college towns such as Kingston, Windsor, St. Catharines, Hamilton, Peterborough, Trois-Rivières and
Rimouski. Furthermore, the fourth quarter’s operating margin is usually higher as no management fees are paid to
COGECO Inc. Under the Management Agreement, Cogeco Cable pays a fee equal to 2% of its total revenue subject
to a maximum amount. Since the maximum amount was reached in the third quarter of fi scal 2006 and 2005,
Cogeco Cable has paid no management fees in the fourth quarters.
Cogeco Cable’s revenue has consistently grown over the last eight quarters mainly as a result of improved penetration
of HSI, Digital Telephony, basic cable and Digital Television services, rate increases and the acquisition of Cabovisão.
Furthermore, Cogeco Cable has focused on improving its quarterly operating income before amortization and cash fl ow
from operations compared to prior year. Management believes that this kind of consistent fi nancial performance quarter
over quarter leads to strong shareholder value creation.