Cogeco 2011 Annual Report Download - page 42

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Management’s Discussion and Analysis (MD&A) COGECO CABLE INC. 2011 41
Quarterly financial highlights
Fiscal 2011 Fiscal 2010
Quarters ended(1) Nov. 30 Feb. 28 May 31 Aug. 31 Nov. 30 Feb. 28 May 31 Aug. 31
(in thousands of dollars, except percentages and per share
data) $ $ $ $ $ $ $ $
Revenue 331,519 336,569 342,910 350,168 317,365 320,397 319,291 324,323
Operating income before amortization 129,428 134,372 144,085 158,098 122,606 122,613 126,700 138,177
Operating margin 39.0% 39.9% 42.0% 45.1% 38.6% 38.3% 39.7% 42.6%
Operating income 66,438 69,293 78,444 104,630 57,041 56,774 62,929 74,481
Impairment of goodwill and fixed assets – – 225,873 –
–
– – –
Income taxes 16,101 14,017 18,547 20,304 (15,766) 11,952 15,060 17,772
Net income (loss) 33,637 31,151 (182,019) 69,565 56,666 29,789 31,185 39,663
A
djusted net income 33,637 31,151 43,854 69,565 26,884 29,789 31,185 39,663
Cash flow from operating activities 55,003 92,663 148,147 219,509 (3,618) 114,037 112,451 194,414
Cash flow from operations 36,433 118,819 131,746 153,351 130,229 118,318 119,243 127,024
Capital expenditures and increase in deferred charges 66,447 70,668 70,562 128,915 68,221 74,379 69,283 107,799
Free cash flow (30,014) 48,151 61,184 24,436 62,008 43,939 49,960 19,225
Earnings (loss) per share(2)
Basic 0.69 0.64 (3.74) 1.43 1.17 0.61 0.64 0.82
Diluted 0.69 0.64 (3.74) 1.42 1.16 0.61 0.64 0.81
A
djusted earnings per share(2)
Basic 0.69 0.64 0.90 1.43 0.55 0.61 0.64 0.82
Diluted 0.69 0.64 0.90 1.42 0.55 0.61 0.64 0.81
(1) The addition of quarterly information may not correspond to the annual total due to rounding.
(2) Per multiple and subordinate voting share.
Seasonal variations
Cogeco Cable’s operating results are not generally subject to material seasonal fluctuations. However, the customer growth in the Basic Cable
and HSI service are generally lower in the second half of the fiscal year as a result of a decrease in economic activity due to the beginning of
the vacation period, the end of the television seasons, and students leaving their campuses 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 in Canada, and Aveiro, Covilhã, Evora, Guarda and Coimbra in Portugal.
Furthermore, the third and fourth quarter operating margins are 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. As the maximum amount
has been reached in the second quarters of fiscal 2011 and fiscal 2010, Cogeco Cable did not pay management fees in the second halves of
either year.