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76 COGECO CABLE INC. 2015 Consolidated financial statements
Year ended August 31, 2014 Canadian cable
services American
cable services Enterprise data
services
Inter-segment
eliminations
and other Consolidated
(In thousands of Canadian dollars) $ $ $ $ $
Revenue 1,255,154 391,670 303,075 (2,308) 1,947,591
Operating expenses 614,116 218,573 200,553 11,318 1,044,560
Management fees – COGECO Inc. — — — 9,674 9,674
Integration, restructuring and acquisition costs(1) 1,663 767 2,306 —4,736
Depreciation and amortization 237,988 94,837 127,137 320 460,282
Impairment of property, plant and equipment (Note 13) 32,197 — 3,296 —35,493
Segment profit (loss) 369,190 77,493 (30,217) (23,620) 392,846
Financial expense 130,221
Income taxes 53,184
Profit for the year 209,441
Property, plant and equipment 1,106,443 318,022 405,097 1,409 1,830,971
Intangible assets 990,487 746,700 157,659 — 1,894,846
Goodwill 4,662 571,399 644,468 — 1,220,529
Acquisition of property, plant and equipment 214,370 71,669 114,807 —400,846
Acquisition of intangible and other assets 9,487 1,861 3,278 —14,626
(1) The integration, restructuring and acquisition costs were primarily related to severance costs associated to the restructuring of the employee base in the
Canadian cable services and Enterprise data services segments.
The following tables set out certain geographic market information:
Year ended August 31, 2015 Canada United States Europe Total
(In thousands of Canadian dollars) $$$$
Revenue 1,419,584 583,350 40,382 2,043,316
Property, plant and equipment 1,429,517 504,073 51,831 1,985,421
Intangible assets 1,061,954 1,052,949 10,001 2,124,904
Goodwill 333,710 1,113,073 57,596 1,504,379
Year ended August 31, 2014 Canada United States Europe Total
(In thousands of Canadian dollars) $$$$
Revenue 1,406,229 503,516 37,846 1,947,591
Property, plant and equipment 1,389,746 389,112 52,113 1,830,971
Intangible assets 1,076,422 807,274 11,150 1,894,846
Goodwill 333,710 835,319 51,500 1,220,529
6. BUSINESS COMBINATION
On August 20, 2015, Atlantic Broadband, a wholly-owned subsidiary of Cogeco Cable, completed the acquisition of substantially all of the
net assets of MetroCast Communications of Connecticut, LLC ("MetroCast Connecticut"), which served 27,256 video, 22,673 Internet and
7,817 telephony customers at August 31, 2015. The transaction, valued at US$200 million, subject to a post-closing net working capital
adjustment, was financed through a combination of cash on hand, a draw-down on the existing Revolving Facility of US$90 million and US
$100 million of borrowings under a new Term Loan A-2 Facility issued under the First Lien Credit Facilities. This acquisition enhances Cogeco
Cable's footprint in the American cable market and provides for further growth potential.