Cogeco 2009 Annual Report Download

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Table of contents

  • Page 1
    1 1 23341 5667581 9 9 1

  • Page 2
    ...,274 HOMES PASSED BY ITS CABLE NETWORK IN THE TERRITORIES IT SERVES. IT IS THE SECOND LARGEST CABLE SYSTEM OPERATOR IN ONTARIO, QUÉBEC AND PORTUGAL IN TERMS OF BASIC CABLE SERVICE CUSTOMERS SERVED. COGECO CABLE FOCUSES ITS ATTENTION ON THE SATISFACTION OF CUSTOMERS' VARIED ELECTRONIC COMMUNICATION...

  • Page 3
    ... MESSAGE TO SHAREHOLDERS MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) CONSOLIDATED FINANCIAL STATEMENTS FIVE-YEAR FINANCIAL HIGHLIGHTS 4 5 7 47 82 INVESTOR INFORMATION CUSTOMER STATISTICS BOARD OF DIRECTORS AND CORPORATE MANAGEMENT OPERATIONS AND CORPORATE INFORMATION 83 85 87 89 2 COGECO CABLE...

  • Page 4
    ... NATIONAL TELEVISION SYSTEM COMMITTEE PHASE ALTERNATING LINE REVENUE-GENERATING UNITS INCLUDE BASIC CABLE, HSI, DIGITAL TELEVISION AND TELEPHONY SERVICE CUSTOMERS SUBSCRIPTION VIDEO ON DEMAND SERVICES VIDEO ON DEMAND SERVICES VOICE-OVER-INTERNET PROTOCOL WIRELESS FIDELITY COGECO CABLE INC. 2009 3

  • Page 5
    ... OPERATING ACTIVITIES CASH FLOW FROM OPERATIONS(3) FREE CASH FLOW(3) FINANCIAL CONDITION TOTAL ASSETS INDEBTEDNESS(4) SHAREHOLDERS' EQUITY RGU GROWTH PER SHARE DATA(5) NET INCOME (LOSS) ADJUSTED NET INCOME(3) WEIGHTED AVERAGE NUMBER OF OUTSTANDING SHARES 1,217,837 524,395 43.1% 253,965 399,648 (256...

  • Page 6
    ... customer satisfaction towards a call center. We have launched several services that enhance choice and have reviewed the price range of many of our services in both Canada and in Portugal: new High Speed Internet packages and improvements in existing packages, an enhanced HD TV and Video on Demand...

  • Page 7
    ... employees and Board members. Their day-to-day work, innovative ideas and enthusiasm command our recognition. Thanks to them, Cogeco Cable is the company of choice for its customers. 1 1 1 Louis Audet President and Chief Executive Officer Jan Peeters Chairman of the Board 6 COGECO CABLE INC. 2009...

  • Page 8
    ...CANADIAN OPERATIONS 8 24 25 28 31 31 35 EUROPEAN OPERATIONS NON-GAAP FINANCIAL MEASURES THREE-YEAR ANNUAL FINANCIAL HIGHLIGHTS AND QUARTERLY FINANCIAL HIGHLIGHTS FISCAL 2010 FINANCIAL GUIDELINES ADDITIONAL INFORMATION 36 37 40 44 46 Management's discussion and analysis COGECO CABLE INC. 2009 7

  • Page 9
    ... in Ontario, Québec and Portugal in terms of the number of Basic Cable service customers served. The Corporation's operations are supported by hybrid fibre and co-axial cable broadband networks. The Corporation provides its residential customers with Audio, Analogue and Digital Television as...

  • Page 10
    ... of up to 13 standard definition digital television signals, or of up to 6 HD signals. KEY PERFORMANCE INDICATORS Cogeco Cable is dedicated to increasing shareholder value and consequently focuses on optimizing profitability while efficiently managing its use of capital without jeopardizing future...

  • Page 11
    ...,364 RGU primarily due to strong growth in Digital Television service customers in both Canadian and European operations. Penetration statistics measure Cogeco Cable's market share. Cogeco Cable computes the penetration for Basic Cable services as a percentage of homes passed and, in the case of all...

  • Page 12
    ... credit risk of its customers by examining such factors as the number of overdue days of the customer's balance owing as well as the customer's collection history with Cogeco Cable. As a result, conditions causing ï¬,uctuations in the aging of customer accounts will directly impact the reported...

  • Page 13
    ... and foreign exchange rates related to its long-term debt. On September 1, 2007, the Corporation classified all of its derivative financial instruments as held-for-trading. Held-for-trading assets and liabilities are carried at fair value 12 COGECO CABLE INC. 2009 Management's discussion and...

  • Page 14
    ...the Management Agreement, the Corporation pays monthly fees equal to 2% of its total revenue to COGECO for the abovementioned services. In 1997, the management fee was capped at $7 million per year, subject to annual increases based on the variation in the Consumer Price Index in Canada. Accordingly...

  • Page 15
    ... costs are amortized over the term of the related financing using the effective interest rate method, except for transaction costs on the revolving loan and the swingline facility, which are amortized over the term of the related financing on a straight-line 14 COGECO CABLE INC. 2009 Management...

  • Page 16
    ...addition, changes in accounting methods must be applied retroactively and additional information must be disclosed. This Section applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2007. During the first quarter of fiscal 2008, the Corporation...

  • Page 17
    ... - in this phase, each area identified from the scoping and diagnostic phase will be addressed in order of descending priority, with project teams established as deemed necessary. This phase involves specification of changes required to existing accounting policies, information systems and business...

  • Page 18
    ... Executive Officer ("CEO") and the Senior Vice President and Chief Financial Officer ("CFO"), together with management, are responsible for establishing and maintaining adequate disclosure controls and procedures and internal controls over financial reporting, as defined in NI 52-109. Cogeco Cable...

  • Page 19
    ... of the Inukshuk broadband wireless network in partnership with Bell, Rogers Cablesystems Inc., the cable subsidiary of Rogers Communications Inc., is licenced to extend its services in the Burlington, Oakville and Milton areas, which are part of Cogeco Cable's footprint in Ontario, although there...

  • Page 20
    ... bundling with its mobile telephone and Internet services. Cabovisão, Zon, PT, Sonaecom, Vodafone and AR Telecom all have competitive triple-play offers available in the Portuguese market. Cabovisão is aggressively pursuing the rollout of its Digital Television services, which include HD channels...

  • Page 21
    ... and satellite distribution of their local and regional signals. Cogeco Cable will continue to strongly oppose any form of FFC. Such a measure, if implemented by the CRTC, could have an adverse impact on the cost of basic cable service and hence, on RGU growth and the purchase of optional television...

  • Page 22
    ... service options, customer account management, internal controls, provisioning, billing and the rollout of new services. The Corporation uses different customer relations management tools and databases for its operation respectively in Ontario, Québec and Portugal. There is however no assurance...

  • Page 23
    ... acquired business and its relevant market. The development of new services or additional lines of business, and the acquisition of new business properties, may not necessarily generate the anticipated results or benefits. There is no assurance that Cogeco Cable will be able to maintain or increase...

  • Page 24
    ...medium and long-term initiatives was developed by the various corporate services, approved by Cogeco Cable management, and announced to its Canadian employees. In addition, key performance indicators are being developed to measure its progress in carrying out the action plan. The Corporation is also...

  • Page 25
    ... to additional capital expenditures arising from customer premise equipment acquisitions to sustain RGU growth, to the recent acquisitions in Canada and to the appreciation of the Euro currency over the Canadian dollar. Amortization expense for the 2009 fiscal year was in line with the Corporation...

  • Page 26
    ...costs, excluding management fees payable to COGECO Inc., rose by $48.2 million, or 10.3%, to reach $515.5 million, to service additional RGU and as a result of the recent acquisitions, partly offset by the favourable impact of $19.8 million from the Part II licence fee settlement agreement described...

  • Page 27
    ... at that time. Management reviews its estimate periodically to take into consideration payments made relating to these contingencies as well as newly available information which would allow the Corporation to improve its previous estimate. During fiscal 2009, Cabovisão received reports from the...

  • Page 28
    ... II licence fee settlement agreement net of related income taxes. Net income of the prior year included an income tax adjustment of $24 million described above. Excluding the effect of these items, adjusted net income for fiscal 2009 would have amounted to $103.6 million, or $2.13 per Management...

  • Page 29
    ... with an increase in acquisition costs of $0.1 million, reduced goodwill by $0.6 million at August 31, 2009. BUSINESS ACQUISITIONS IN FISCAL 2008 On March 31, 2008, the Corporation completed the acquisition of all the assets of MaXess Networx®, ENWIN Energy Ltd.'s (City of Windsor's energy company...

  • Page 30
    ... communications. On July 31, 2008, the Corporation completed the acquisition of all the shares of Toronto Hydro Telecom Inc., the telecommunications subsidiary of Toronto Hydro Corporation Inc. (City of Toronto's energy company) for a total consideration of $200 million. In addition, the Corporation...

  • Page 31
    ... incurs significant costs to reconnect or activate additional services for Basic Cable, HSI, Digital Television and Telephony customers. Equipment subsidies are mainly related to subsidies on sales of digital terminals in Canada and cable modems in Portugal. During fiscal 2009, the lower increase in...

  • Page 32
    ... decrease in accounts payable and accrued liabilities is related to the reduction of withholding and stamp tax contingent liabilities and the Part II licence fee settlement agreement, offset by an increase in accounts payable and accrued liabilities due to the timing of payments made to suppliers...

  • Page 33
    ... for further details. OUTSTANDING SHARE DATA A description of Cogeco Cable's share data as at September 30, 2009 is presented in the table below. Additional details are provided in note 15 of the consolidated financial statements on page 70. AMOUNT NUMBER OF SHARES/ OPTIONS (in thousands of dollars...

  • Page 34
    ... support working capital requirements and that the next key refinancing milestone is related to the maturity of its Term Facility in July 2011. Refer to page 22 for a detailed description of financial risks. On April 9, 2009, Standard & Poor's Ratings Services ("S&P") revised Cogeco Cable's outlook...

  • Page 35
    ... PENSION PLAN LIABILITIES AND ACCRUED EMPLOYEE BENEFITS. THE NATURE OF THOSE OBLIGATIONS PREVENTS THE CORPORATION FROM ESTIMATING AN ANNUAL BREAKDOWN. (4) ANNUAL BREAKDOWN EXCLUDES OTHER LONG-TERM OBLIGATIONS. In the normal course of business, Cogeco Cable enters into agreements containing features...

  • Page 36
    ... continues to stem from the enhancement of the product offering, the impact of the bundled offer (Cogeco Complete Connection) of Cable Television, HSI and Telephony services, and promotional activities. Finally, the net additions of Digital Television service customers stood at 56,652 compared to 61...

  • Page 37
    ...60 per Basic Cable service customer. The launch of new Digital and VOD services, and the customer preference for equipment rentals over purchases have also generated revenue growth in the current year. OPERATING COSTS For fiscal 2009, Canadian operations' operating costs, including network fees but...

  • Page 38
    ... year. The Digital Television service was launched in the third quarter of 2008, with net additions of 78,301 customers in fiscal 2009 for a total of 102,753 customers since the launch, surpassing management's expectations. Fiscal 2009 Basic Cable service decreased by 36,655 customers compared to...

  • Page 39
    ...OPERATIONS ACQUISITION OF FIXED ASSETS INCREASE IN DEFERRED CHARGES ASSETS ACQUIRED UNDER CAPITAL LEASES - AS PER NOTE 17 B) ON PAGE 73 FREE CASH FLOW OPERATING INCOME BEFORE AMORTIZATION AND OPERATING MARGIN Operating income before amortization is used by Cogeco Cable's management and investors to...

  • Page 40
    ... SHARE Adjusted net income and adjusted earnings per share are used by Cogeco Cable's management and investors to evaluate what would have been the net income and earnings per share excluding the impairment of goodwill and intangible assets, non-recurring tax adjustments and the Part II licence fee...

  • Page 41
    ...FEDERAL ENACTED INCOME TAX RATES. (4) LONG-TERM FINANCIAL LIABILITIES INCLUDE LONG-TERM DEBT, DERIVATIVE FINANCIAL INSTRUMENT LIABILITIES AND PENSION PLAN LIABILITIES AND ACCRUED EMPLOYEE BENEFITS. (5) PER MULTIPLE AND SUBORDINATE VOTING SHARE. 40 COGECO CABLE INC. 2009 Management's discussion and...

  • Page 42
    ... such as Kingston, Windsor, St. Catharines, Hamilton, Peterborough, Trois-Rivières and Rimouski in Canada, and Aveiro, Covilhã, Evora, Guarda and Coimbra in Portugal. Furthermore, the third and fourth quarter's operating margin is usually higher as no management fees are paid to COGECO Inc. Under...

  • Page 43
    ... growth in HSI customer net additions continues to stem from the enhancement of the product offering, the impact of the bundled offer (Cogeco Complete Connection) of Cable Television, HSI and Telephony services, and promotional activities. The Digital Television service net additions stood at 9,674...

  • Page 44
    ... from the Part II licence fee settlement agreement, partly offset by the impact of servicing additional RGU and the CDS acquisition in Canada, and in Europe, due to the appreciation of the Euro over the Canadian dollar and an increase in the level of uncollectible customer accounts. Cabovisão has...

  • Page 45
    ...attrition of Basic Cable television service customers and consequently have an adverse impact on RGU. Management has realigned its short term strategic plan in order to curtail customer losses in fiscal 2010. In addition, Cabovisão recently launched new channels and implemented retention strategies...

  • Page 46
    .... Cogeco Cable plans to expand its Canadian Basic Cable Service clientele through consistently effective marketing, competitive product offerings and superior customer service. As the penetration of HSI, Telephony and Digital Television services increase, the demand for these products should slow...

  • Page 47
    ... rate used for fiscal 2010 projections is $1.50 per Euro. ADDITIONAL INFORMATION This MD&A was prepared on October 29, 2009. Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR at www.sedar.com. 46 COGECO CABLE INC. 2009 Management...

  • Page 48
    ... STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 48 48 49 50 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOWS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 50 51 52 53 Consolidated financial statements COGECO CABLE INC. 2009 47

  • Page 49
    ... financial information used elsewhere in the annual report is consistent with that of the consolidated financial statements. In fulfilling its responsibilities, management of Cogeco Cable Inc. and its subsidiaries has developed, and continues to improve administrative and accounting systems in order...

  • Page 50
    ...31, (in thousands of dollars, except per share data) 2009 $ 2008 $ REVENUE SERVICE EQUIPMENT 1,210,932 6,905 1,217,837 1,070,676 6,111 1,076,787 622,621 8,714 445,452 228,299 217,153 69,139 - - OPERATING COSTS (NOTE 23) MANAGEMENT FEES - COGECO INC. (NOTE 21) OPERATING INCOME BEFORE AMORTIZATION...

  • Page 51
    ... 31, (in thousands of dollars) 2009 $ 2008 $ BALANCE AS REPORTED, BEGINNING OF YEAR CHANGES IN ACCOUNTING POLICIES (NOTE 1 B)) BALANCE AS RESTATED, BEGINNING OF YEAR NET INCOME (LOSS) DIVIDENDS ON MULTIPLE VOTING SHARES DIVIDENDS ON SUBORDINATE VOTING SHARES BALANCE, END OF YEAR 297,150 - 181...

  • Page 52
    ...-TERM DEBT (NOTE 14) DERIVATIVE FINANCIAL INSTRUMENT DEFERRED AND PREPAID REVENUE AND OTHER LIABILITIES PENSION PLAN LIABILITIES AND ACCRUED EMPLOYEE BENEFITS ... OF THE BOARD OF DIRECTORS, JAN PEETERS DIRECTOR L. G. SERGE GADBOIS DIRECTOR Consolidated financial statements COGECO CABLE INC. 2009 51

  • Page 53
    ... ISSUANCE OF LONG-TERM DEBT, NET OF DISCOUNTS AND TRANSACTION COSTS REPAYMENT OF LONG-TERM DEBT AND SETTLEMENT OF DERIVATIVE FINANCIAL INSTRUMENTS ISSUE OF SUBORDINATE VOTING SHARES DIVIDENDS ON MULTIPLE VOTING SHARES DIVIDENDS ON SUBORDINATE VOTING SHARES EFFECT OF EXCHANGE RATE CHANGES ON CASH AND...

  • Page 54
    ... NATURE OF OPERATIONS Cogeco Cable Inc. (the "Corporation") is a Canadian public company whose shares are listed on the Toronto Stock Exchange ("TSX"). The Corporation's core business is providing Cable Television, High Speed Internet ("HSI"), Telephony and other telecommunications services to its...

  • Page 55
    ...transaction costs were capitalized and amortized on a straight-line basis over the term of the related financing, a period not exceeding five years. The impact of these adjustments at September 1, 2007 reduced deferred charges by $1.2 million, reduced long-term debt by $3.1 million, increased future...

  • Page 56
    ...addition, changes in accounting methods must be applied retroactively and additional information must be disclosed. This Section applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2007. During the first quarter of fiscal 2008, the Corporation...

  • Page 57
    ... services are earned; Promotional offers are accounted for as deductions from revenue when customers take advantage of such offers. • Amounts received or invoiced that do not comply with these criteria are accounted for as deferred and prepaid revenue. 56 COGECO CABLE INC. 2009...

  • Page 58
    ... its cable systems. The Corporation expects to renew all of its agreements with utility companies to access their support structures in the future, making the retirement date, relating to these assets, undeterminable. E) DEFERRED CHARGES Deferred charges include new service launch costs, equipment...

  • Page 59
    ... reporting period. J) EMPLOYEE FUTURE BENEFITS The pension costs, recorded in operating costs, related to the defined contribution pension plan and the collective registered retirement savings plans are equivalent to the contributions that the Corporation is required to pay in exchange for services...

  • Page 60
    ... communications. On July 31, 2008, the Corporation completed the acquisition of all the shares of Toronto Hydro Telecom Inc., the telecommunications subsidiary of Toronto Hydro Corporation Inc. (City of Toronto's energy company) for a total consideration of $200 million. In addition, the Corporation...

  • Page 61
    ...Toronto Hydro Telecom Inc., which now operates under the name of Cogeco Data Services Inc., offers data communications and other telecommunications services such as Ethernet, private line, VoIP, HSI access, dark fibre, data storage, data security and co-location to a wide range of business customers...

  • Page 62
    ... and other telecommunications services. The Corporation considers its Cable Television, HSI, Telephony and other telecommunications activities as a single operating segment. The Corporation's activities are carried out in Canada and in Europe. The principal financial information per business segment...

  • Page 63
    ... at that time. Management reviews its estimates periodically to take into consideration payments made relating to these contingencies as well as newly available information which would allow the Corporation to improve its previous estimate. During fiscal 2009, Cabovisão received reports from the...

  • Page 64
    ... FROM THE NON-DEDUCTIBLE IMPAIRMENT OF GOODWILL UTILIZATION OF PRE-ACQUISITION TAX LOSSES INCOME TAXES ARISING FROM NON-DEDUCTIBLE EXPENSES EFFECT OF FOREIGN INCOME TAX RATE DIFFERENCES OTHER INCOME TAXES AT EFFECTIVE INCOME TAX RATE Consolidated financial statements COGECO CABLE INC. 2009 63

  • Page 65
    ... liabilities for accounting purposes and the amounts used for tax purposes, as well as tax loss carry forwards: 2009 (in thousands of dollars) $ 2008 $ FUTURE INCOME TAX ASSETS NON-CAPITAL LOSS AND OTHER TAX CREDIT CARRYFORWARDS DEFERRED AND PREPAID REVENUE SHARE ISSUANCE COSTS OTHER TOTAL FUTURE...

  • Page 66
    ... OF THE OPTIONS WAS GREATER THAN THE AVERAGE SHARE PRICE OF THE SUBORDINATE VOTING SHARES. 10. FIXED ASSETS 2009 (in thousands of dollars) $ 2008 $ COST LAND BUILDINGS CABLE SYSTEMS EQUIPMENT, PROGRAMMING EQUIPMENT, FURNITURE AND FIXTURES HOME TERMINAL DEVICES ROLLING STOCK AND EQUIPMENT UNDER...

  • Page 67
    ... ACQUISITIONS (NOTE 2) AMORTIZATION IMPAIRMENT (NOTE 7) FOREIGN CURRENCY TRANSLATION ADJUSTMENT BALANCE, END OF YEAR At August 31, 2009 and 2008, the Corporation tested the value of customer base for impairment and concluded that no impairment existed. 66 COGECO CABLE INC. 2009 Consolidated...

  • Page 68
    ...rate. At August 31, 2009, the interest rate on bank indebtedness is 2.25% (4.75% in 2008). This facility, which matures on July 28, 2011, is secured on the same basis and is subject to the same restrictions as the Term Facility (note 14 a)). Consolidated financial statements COGECO CABLE INC. 2009...

  • Page 69
    ...the third tranche of its $900 million Term Facility, which was reduced to $862.5 million reflecting the 2008 and 2009 repayments. The Corporation benefits from an $862.5 million credit facility in the form of a Term Facility and an operating line of credit with a group of financial institutions. The...

  • Page 70
    ...,050 c) d) e) f) g) h) Minimum payments due under capital leases total $10,607,000, of which $1,111,000 represents financial expense, and are as follows: 2010 (in thousands of dollars) $ 4,224 2011 $ 3,273 2012 $ 2,258 2013 $ 852 Consolidated financial statements COGECO CABLE INC. 2009 69

  • Page 71
    ... outstanding subordinate voting shares are available. Stock Purchase Plan The Employee Stock Purchase Plan is accessible to all employees up to a maximum of 5% of their annual salary. The subscription date is December 31 and the subscription price is based on the average market price of the shares...

  • Page 72
    ... to 20% of net gain after related taxes must be kept in shares of the Corporation until termination of employment with the Corporation or retirement. Under the Stock Option Plan, the following options were granted by the Corporation and are outstanding as at August 31: 2009 WEIGHTED AVERAGE EXERCISE...

  • Page 73
    ... share units were awarded to the participants in connection with the DSU Plan. A compensation expense of $117,000 ($153,000 in 2008) was recorded for the year ended August 31, 2009 related to this plan. Under the DSU plan, the following DSUs were awarded by Cogeco Cable Inc. and are outstanding...

  • Page 74
    ... fiscal 2009 ($3,000,000 in 2008). The defined benefit pension plans provide pensions based on the number of years of service and the average salary during the employment of each participant. In addition, the Corporation and its subsidiaries offer certain executives a supplementary pension plan. The...

  • Page 75
    ... PAST SERVICE COST NET ACCRUED BENEFIT LIABILITY 9,546 14,747 5,201 (1,957) (740) 2,504 8,268 12,656 4,388 (1,558) (286) 2,544 The accrued benefit liability is included in the Corporation's balance sheet under "Pension plan liabilities and accrued employee benefits". 74 COGECO CABLE INC. 2009...

  • Page 76
    ... INCREASE DEFINED BENEFIT PENSION COSTS DISCOUNT RATE EXPECTED LONG-TERM RATE OF RETURN ON PLAN ASSETS RATE OF COMPENSATION INCREASE 6.00 6.75 4.50 5.50 7.00 4.75 6.25 4.50 6.00 4.50 19. FINANCIAL AND CAPITAL MANAGEMENT A) FINANCIAL MANAGEMENT Management's objectives are to protect Cogeco Cable...

  • Page 77
    ... existing payment terms. Since the Corporation has a large and diversified clientele dispersed throughout its market area in Canada and Portugal, there is no significant concentration of credit risk. The following table provides further details on the Corporation's accounts receivable balances: 2009...

  • Page 78
    ... table summarizes the contractual maturities of the financial liabilities and related capital amounts: 2010 $ 2011 $ 2012 $ 2013 $ 2014 $ Thereafter $ Total $ ACCOUNTS PAYABLE AND ACCRUED LIABILITIES LONG-TERM DEBT(1) DERIVATIVE FINANCIAL INSTRUMENTS CASH OUTFLOWS (CANADIAN DOLLAR) CASH INFLOWS...

  • Page 79
    ..., 2009, the net investment amounted to â,¬183,220,000 (â,¬446,051,000 at August 31, 2008) while long-term debt denominated in Euros amounted to â,¬135,772,000 (â,¬237,455,000 at August 31, 2008). The exchange rate used to convert the Euro currency into Canadian dollars for the balance sheet accounts...

  • Page 80
    ... As at August 31, 2009, the Corporation and its subsidiaries are committed under lease agreements and other long-term contracts to make annual payments as follows: 2015 AND 2010 (in thousands of dollars) $ 14,922 4,982 19,904 2011 $ 14,275 1,068 15,343 2012 $ 12,693 697 13,390 2013 $ 11,553 680 12...

  • Page 81
    ... employees. Under the Management Agreement, the Corporation pays monthly fees equal to 2% of its total revenue to COGECO Inc. for the above-mentioned services. In 1997, the management fee was capped at $7,000,000 per year, subject to annual upward adjustment based on increases in the Consumer Price...

  • Page 82
    ...plaintiffs and the Crown as the defendant. Cogeco Cable Inc. sought and obtained intervener status in this proceeding with a view of supporting the position of the plaintiffs and protecting its rights to recover past payments of Part II licence fees. On October 7, 2009, the parties reached an out-of...

  • Page 83
    ...MILLION RELATED TO THE REDUCTION OF CANADIAN FEDERAL ENACTED INCOME TAX RATES. (6) INDEBTEDNESS IS DEFINED AS THE TOTAL OF BANK INDEBTEDNESS, PRINCIPAL ON LONG-TERM DEBT AND OBLIGATIONS UNDER DERIVATIVE FINANCIAL INSTRUMENTS. (7) PER MULTIPLE AND SUBORDINATE VOTING SHARE. 82 COGECO CABLE INC. 2009...

  • Page 84
    ...PER SHARE) OUTSTANDING STOCK EXCHANGE LISTING TRADING SYMBOL COMPUTERSHARE TRUST COMPANY OF CANADA 100 UNIVERSITY AVENUE, 32,867,426 9TH FLOOR TORONTO, ON M5J 2Y1 TEL.: 514-982-7555 THE TORONTO STOCK EXCHANGE TEL.: 1 800-564-6253 CCA FAX: 416-263-9394 15,691,100 Investor information COGECO CABLE...

  • Page 85
    .... 30 $ FEB. 29 $ MAY 31 $ AUG. 31 $ TOTAL THE TORONTO STOCK EXCHANGE HIGH LOW CLOSE VOLUME (SHARES) 50.25 43.51 43.91 5,576,390 48.82 35.58 36.30 6,254,376 42.00 32.27 40.51 5,081,635 44.59 35.03 44.00 3,408,578 20,320,979 84 COGECO CABLE INC. 2009 Investor information

  • Page 86
    ... OF HOMES PASSED. (4) HSI AND TELEPHONY SERVICE CUSTOMERS WHO DO NOT SUBSCRIBE TO OTHER CABLE SERVICES AND BASIC CABLE SERVICE CUSTOMERS. (5) THE NUMBER OF DIGITAL TELEVISION SERVICE CUSTOMERS FOR FISCAL 2005 WAS RESTATED TO REFLECT CHANGES BROUGHT ABOUT BY COGECO CABLE'S BILLING IMPROVEMENT PROGRAM...

  • Page 87
    HOMES PASSED BASIC CABLE SERVICE % OF CUSTOMERS PENETRATION (1) BREAKDOWN ONTARIO QUÉBEC CANADA PORTUGAL(2) TOTAL (1) AS A PERCENTAGE OF HOMES PASSED. (2) THE CORPORATION IS CURRENTLY ASSESSING THE NUMBER OF HOMES PASSED. 1,049,818 515,327 1,565,145 905,129 2,470,274 597,651 267,154 864,805 259...

  • Page 88
    ... 21JAN PEETERS Montréal (Québec) President and Chief Executive Officer Board Chair Olameter Inc. Board Chair 11GERMAINE GIBARA, MA, CFA Montréal (Québec) President Avvio Management Inc. Director 1 LOUIS AUDET, Eng., MBA Westmount (Québec) President and Chief Executive Officer Cogeco Cable...

  • Page 89
    ..., Corporate Engineering YVES MAYRAND Vice President, Corporate Affairs RON A. PERROTTA Vice President, Marketing and Strategic Planning LOUISE ST-PIERRE Senior Vice President, Residential Services ALEX TESSIER Treasurer 88 COGECO CABLE INC. 2009 Board of directors and corporate management

  • Page 90
    ... CORPORATE INFORMATION OPERATIONS HEAD OFFICE 5 Place Ville Marie Suite 1700 Montréal (Québec) H3B 0B3 Tel: 514-764-4700 Fax: 514-874-2625 www.cogeco.ca CABLE ONTARIO CABLE QUÉBEC 1630 6 Rue Suite 200 Trois-Rivières (Québec) G8Y 5B8 Tel: 819-379-2443 Fax: 819-372-3318 e COGECO DATA SERVICES...

  • Page 91
    ... Toronto (Ontario) M5X 1B2 1 Place Ville Marie Suite 3900 Montréal (Québec) H3B 4M7 TRANSFER AGENT SENIOR SECURED DEBENTURES AND SENIOR SECURED NOTES Computershare Trust Company of Canada QUARTER ENDS November, February, May YEAR END August 31 90 COGECO CABLE INC. 2009 Operations and corporate...

  • Page 92
    ... and the Annual Report. Every effort is made to avoid such duplication. Shareholders who receive duplicate mailings should advise Computershare Trust Company of Canada. WHISTLE BLOWING PROCEDURES REGARDING ACCOUNTING, INTERNAL ACCOUNTING CONTROLS OR AUDITING MATTERS Any employee of Cogeco Cable Inc...

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