Cogeco 2009 Annual Report Download - page 40

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Management’s discussion and analysis COGECO CABLE INC. 2009 39
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER 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 settlement agreement. This allows the Corporation to isolate the unusual adjustments in
order to evaluate net income and earnings per share from ongoing activities.
The most comparable Canadian GAAP financial measures are net income and earnings per share. Adjusted net income and
adjusted earnings per share are calculated as follows:
YEARS ENDED AUGUST 31, 2009 2008
(in thousands of dollars, except number of shares and per share data) $ $
NET INCOME (LOSS)
(256,675) 133,282
ADJUSTMENTS:
IMPAIRMENT OF GOODWILL AND INTANGIBLE ASSETS NET OF RELATED INCOME TAXES
383,630 –
NON-RECURRING TAX ADJUSTMENTS:
REDUCTION OF WITHHOLDING AND STAMP TAX CONTINGENT LIABILITIES
(16,130) –
UTILIZATION OF PRE-ACQUISITION TAX LOSSES
6,142 –
REDUCTION OF CANADIAN FEDERAL INCOME TAX RATES
– (24,002)
PART II LICENCE FEE SETTLEMENT AGREEMENT NET OF RELATED INCOME TAXES
(13,375) –
ADJUSTED NET INCOME
103,592 109,280
WEIGHTED AVERAGE NUMBER OF MULTIPLE VOTING AND SUBORDINATE VOTING SHARES
OUTSTANDING
48,545,296 48,472,364
EFFECT OF DILUTIVE STOCK OPTIONS
125,326 287,694
WEIGHTED AVERAGE NUMBER OF DILUTED MULTIPLE VOTING AND SUBORDINATE VOTING
SHARES OUTSTANDING
48,670,622 48,760,058
ADJUSTED EARNINGS PER SHARE
BASIC
2.13 2.25
DILUTED
2.13 2.24