Cogeco 2013 Annual Report Download - page 89

88 COGECO CABLE INC. 2013 Consolidated financial statements
total indebtedness. At August 31, 2013 and August 31, 2012 the Corporation was in compliance with all of its debt covenants and was not
subject to any other externally imposed capital requirements.
The following table summarizes certain of the key ratios used to monitor and manage the Corporation’s capital structure:
Years ended August 31, 2013 2012
Net senior indebtedness(1)(2) / operating income before depreciation and amortization(3) 2.6 1.3
Net indebtedness(2)(4) / operating income before depreciation and amortization(3) 3.4 1.4
Operating income before depreciation and amortization(3) / financial expense(3) 6.2 9.2
(1) Net senior indebtedness is defined as the aggregate of bank indebtedness, principal on long-term debt and obligations under derivative financial
instruments, less cash and cash equivalents and principal on Senior Unsecured Debenture and Senior Unsecured Notes.
(2) Excluding Atlantic Broadband’s cash and cash equivalents and non-recourse First Lien Credit Facilities at August 31, 2013.
(3) Calculation based on operating income before depreciation and amortization and financial expense for the twelve-month period ended August 31, 2013
and August 31, 2012 excluding Atlantic Broadband and including PEER 1 results for the seven-month period ended August 31, 2013.
(4) Net indebtedness is defined as the aggregate of bank indebtedness, principal on long-term debt, balance due on a business combination and obligations
under derivative financial instruments, less cash and cash equivalents.
C) CATEGORIES OF FINANCIAL INSTRUMENTS
At August 31, 2013 2012
(In thousands of Canadian dollars) $$
Financial assets
Loans and receivable 126,560 283,811
Derivative instruments in designated hedge accounting relationships 833 —
127,393 283,811
Financial liabilities
Derivative instruments in designated hedge accounting relationships —11,668
Other liabilities 3,166,546 1,268,818
3,166,546 1,280,486
21. DISPOSAL OF SUBSIDIARY AND DISCONTINUED OPERATIONS
On February 29, 2012, the Corporation completed the sale of its Portuguese subsidiary, Cabovisão – Televisão por Cabo, S.A. As a result of
the sale and in accordance with IFRS 5 – Non-Current Assets Held for Sale and Discontinued Operations, the Corporation reclassified the
prior year results and cash flows of these operations, up to the date of disposal, as discontinued operations.
The profit or loss of the discontinued operations for the year ended August 31, 2012 were as follows:
(In thousands of Canadian dollars) $
Revenue 80,546
Operating expenses 70,247
Depreciation and amortization 2,814
Operating income 7,485
Financial income 155
Gain on disposal 48,215
Profit before income taxes 55,855
Income taxes 409
Profit for the period 55,446
The cash flows of the discontinued operations for the year ended August 31, 2012 were as follows:
(In thousands of Canadian dollars) $
Net cash flows from operating activities 13,637
Net cash flows from investing activities 36,826
Effect of exchange rate changes on cash and cash equivalents denominated in a foreign currency (866)
Net increase in cash and cash equivalents 49,597