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20 COGECO CABLE INC. 2015 MD&A
2.6 THREE-YEAR ANNUAL FINANCIAL HIGHLIGHTS
Years ended August 31, 2015 2014 2013
(in thousands of dollars, except percentages and per share data) $$ $
Revenue 2,043,316 1,947,591 1,692,466
Adjusted EBITDA 930,479 893,357 780,723
Operating margin 45.5% 45.9% 46.1%
Integration, restructuring and acquisition costs 13,950 4,736 21,570
Settlement of a claim with a supplier (27,431) — —
Impairment of property, plant and equipment —35,493 —
Profit for the year 257,750 209,441 184,895
Cash flow from operating activities 688,924 758,368 545,010
Cash flow from operations 725,187 690,148 557,581
Acquisitions of property, plant and equipment, intangible and other assets 439,220 415,472 408,202
Free cash flow 285,967 274,676 149,379
Capital intensity 21.5% 21.3% 24.1%
Total assets 6,014,038 5,173,741 5,149,211
Indebtedness 3,261,908 2,744,746 2,944,182
Shareholder's equity 1,758,972 1,508,256 1,342,940
Per Share Data(1)
Earnings per share
Basic 5.27 4.30 3.80
Diluted 5.22 4.26 3.78
Dividends 1.40 1.20 1.04
(1) Per multiple and subordinate voting share.
3. OPERATING AND FINANCIAL RESULTS
3.1 OPERATING RESULTS
Years ended August 31, 2015 2014 Change
(in thousands of dollars, except percentages) $$ %
Revenue 2,043,316 1,947,591 4.9
Operating expenses 1,102,960 1,044,560 5.6
Management fees – COGECO Inc. 9,877 9,674 2.1
Adjusted EBITDA 930,479 893,357 4.2
Operating margin 45.5% 45.9%
REVENUE
Fiscal 2015 revenue amounted to $2.0 billion, an increase of $95.7 million, or 4.9% compared to fiscal 2014, driven by a growth of 20.1% in the
American cable services segment, 3.5% in the Enterprise data services segment and 0.6% in the Canadian cable services segment. Revenue
increased as a result of the growth in the American cable services segment, with stable revenue in the Canadian cable services segment combined
with the favorable foreign exchange rates for our foreign operations compared to fiscal 2014. For further details on the Corporation’s revenue,
please refer to the “Segmented operating results” sections.
OPERATING EXPENSES AND MANAGEMENT FEES
For fiscal 2015, operating expenses amounted to $1.1 billion, an increase of $58.4 million, or 5.6%, compared to the same period of fiscal 2014.
Operating expenses increased organically for all of our business units combined with the appreciation of the US dollar and British Pound currency
compared to the Canadian dollar, partly offset by savings resulting from the operational, financial and organizational restructuring in the Enterprise
data services segment. For further details on the Corporation’s operating expenses, please refer to the “Segmented operating results” sections.
Management fees paid to COGECO Inc. ("COGECO") amounted to $9.9 million compared to $9.7 million in fiscal 2014, and are discussed in
details in the “Related party transactions” section.