VEON Files its Dutch Annual Report with Audited Financial Statements for Year Ended 31 December 2023
Amsterdam and Dubai, 1 November 2024 – VEON Ltd. VEONVEON), a global digital operator, (“VEON” or the “Company” or together with its subsidiaries, the “Group”), announces that today it has filed its 2023 Dutch Annual Report, including audited consolidated financial statements for the year ended 31 December 2023 prepared in accordance with International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code (the “Statutory Financial Statements”), with the Dutch Authority for the Financial Markets (“AFM”). A copy of the Company’s 2023 Dutch Annual Report can be found on the Financial Results section of VEON website at https://www.veon.com/investors/#tab-item-104.
About VEON
VEON is a global digital operator provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than 7% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on Nasdaq and Euronext. For more information visit: https://www.veon.com.
Contact information
VEON
Group Director of Investor Relations
Faisal Ghori
ir@veon.com
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Rise48 Equity Expands Services with Launch of Rise48 Residential, Taking Over Management of Four Dallas-Fort Worth Properties
PHOENIX, Nov. 1, 2024 /PRNewswire/ — Rise48 Equity, a multifamily investment group headquartered in Phoenix, Arizona, has announced the launch of its new third-party fee management company, Rise48 Residential. This expansion marks a significant step in the company’s growth, as Rise48 Residential has already taken on the management of four properties in Dallas and Fort Worth, TX, with plans to expand further in Q4.
After establishing a presence in the Dallas market in 2022 and expanding to North Carolina earlier this year, Rise48 Equity continues to strengthen its footprint by diversifying into property management. Rise48 Residential is a full-suite professional property management company, equipped with a full-time, experienced team specializing in operations, financial reporting, and marketing. The company focuses on assets built from the 1960s to the early 2000s, delivering tailored management solutions to optimize property performance.
Zach Haptonstall, CEO & Co-Founder of Rise48 Equity said, “We’ve recently had numerous lenders reach out to us saying they’re very happy with how we manage and operate the assets we currently own as a borrower, and these same lenders have asked us to help take over third-party fee management for other assets that they have foreclosed on from other borrowers. We saw an opportunity to expand on what we do best, which is manage and execute value-add business plans on existing multifamily properties.
The launch of Rise48 Residential allows us to share and expand our proprietary methods to third parties for marketing, recruiting staff, hiring, training, controlling supply chain, and executing on business plans. In Q4 we are taking over third-party management for other property owners in Arizona and have more assets in the pipeline from lenders coming in Texas. We will serve property owners and lenders in the Southwest, Southeast, and Texas markets for third-party fee management.
Our goal is to manage 50,000 units nationwide in the next 5 years for third parties. We will continue to grow our investment platform Rise48 Equity where we acquire and manage assets that we own.
Launching Rise48 Residential allows us to extend our high standard of property management to more communities, ensuring we can drive value not only for investors and lenders, but most importantly for residents,” said Zach Haptonstall, CEO & Co-Founder of Rise48 Equity. “We’re excited to bring this level of expertise to Dallas and are committed to continued growth in this market and beyond.”
Rise48 Residential provides a comprehensive range of services, including operations, financial planning & analysis, human resources, advanced data analytics, and marketing, designed to streamline operations and enhance asset value.
The company aims to bring its unique blend of operational expertise and strategic focus to each property it manages, ensuring maximum returns for investors and a high-quality living experience for residents.
About Rise48 Equity:
Rise48 Equity has completed over $2.3 Billion+ in total transactions and purchased 54 assets, 10,000+ units since 2019. They currently have $1.8 Billion+ of Assets Under Management in Phoenix, AZ and Dallas, TX. They have completed 11 Full-Cycle Dispositions and returned capital to investors. The company has 240+ full-time W2 employees on full healthcare benefits.
Rise48 Equity provides multifamily investment opportunities for accredited investors to protect and grow their wealth and achieve passive cash-flow. The team brings expertise to acquire, reposition and return capital to investors upon reaching the business plan.
Rise48 Communities is the vertically integrated property management company that manages all assets owned by Rise48 Equity. The company does all of the construction management, property management, and asset management in-house.
For more information about Rise48 Equity, visit their website: rise48equity.com
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SOURCE Rise48 Equity
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Michael Saylor The 'Egg Man'? Peter Schiff Points Out A Potential Pitfall Of MicroStategy's $42B Debt-Funded Bitcoin Bet
On Thursday, influential economist Peter Schiff took a swipe at MicroStrategy Inc.MSTR CEO Michael Saylor’s $42 billion Bitcoin BTC/USD investment strategy, likening it to a market trap.
What Happened: Schiff took to X, formerly Twitter, and compared Saylor to “the Egg Man” in a metaphorical critique of his Bitcoin investment plans.
Schiff used an egg futures analogy to express his concerns about Saylor’s strategy. He suggested that MicroStrategy could end up holding a large amount of Bitcoin with no potential buyers, should the market turn.
“Sell to whom, you’re the egg man!” Schiff concluded, implying that Saylor’s aggressive Bitcoin buying could potentially trap the company in a volatile market.
See Also: If You Invested $1,000 In Dogecoin On Jan. 1, 2021, Here’s How Much You’d Have Today
Why It Matters: Saylor’s Bitcoin strategy has been a hot topic in the financial world. Last month, he announced that MicroStrategy plans to invest an additional $42 billion in Bitcoin over the next three years, funded by issuing $21 billion in debt and $21 billion in equity.
Other companies like Coinbase Global Inc. COIN have also shown interest in expanding their cryptocurrency investment portfolios.
Coinbase CFO Alesia Haas on Thursday said that the company holds a cryptocurrency investment portfolio on its balance sheet, valued at approximately $1.3 billion at the close of the third quarter.
This portfolio represented close to 25% of Coinbase’s total cash reserves.
Meanwhile, Bitcoin ETFs are edging closer to becoming the largest collective holder of Bitcoin, potentially surpassing Satoshi Nakamoto’s legendary holdings.
Price Action: On Thursday, MicroStrategy shares ended the day 1.1% lower at $244.50 and gained 0.7% in the after-hours trading. Bitcoin was seen trading 4.1% lower at $69,321.65, according to Benzinga Pro data.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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Century Complete Unveils New Model Home in Bullhead City, AZ
Exceptional lineup of ranch-style floor plans now selling from the $240s at Rancho Colorado
BULLHEAD CITY, Ariz., Oct. 31, 2024 /PRNewswire/ — Century Communities, Inc. CCS—a top national homebuilder, industry leader in online home sales, and featured on America’s Most Trustworthy Companies and World’s Most Trustworthy Companies by Newsweek—is excited to invite homebuyers and real estate agents to tour the newest model home from its Century Complete brand at Rancho Colorado in Bullhead City, Arizona.
Offering a walkthrough of the community’s ranch-style Verbena plan, the new model showcases a versatile open-concept layout with features like granite countertops, Kohler® water fixtures, stainless-steel appliances, luxury vinyl plank flooring, and a covered patio—included features with every home at Rancho Colorado.
“We’re thrilled to open our new model home for tours, giving buyers a firsthand look at the craftsmanship and lifestyle available at Rancho Colorado,” said Dave Hodgman, Executive Vice President of Field Operations. “With affordable and quality homes available for quick move-in at this scenic location, it’s the perfect time for buyers to come find their dream home.”
Learn more and explore available homes at www.CenturyCommunities.com/RanchoColorado.
More Century Complete communities now selling in the Mohave Valley area:
- Chaparral Terrace in Bullhead City (final opportunity)
- Twin Palm Estates in Fort Mohave (USDA eligible, zero down payment)
- Desert Lakes in Fort Mohave (golf course community)
MORE ABOUT RANCHO COLORADO | BULLHEAD CITY, AZ
Now selling from the $240s
- 150+ single-family homesites
- Ranch floor plans
- Up to 4 bedrooms, 2 bathrooms, 1,155 to 1,815 square feet
- 1- and 2-bay garages
- Granite countertops, luxury vinyl plank flooring, Kohler® fixtures, stainless-steel appliances, walk-in closets, white shaker cabinets, covered patios and more included
- Less than a mile from the Colorado River, with fast access to Laughlin
Location:
2419 Vista Del Oro
Bullhead City, AZ 86442
520.213.8607
THE FREEDOM OF ONLINE HOMEBUYING
Century Complete is proud to feature its industry-first online homebuying experience on all available homes in Arizona, allowing homebuyers to easily find their best fit and purchase when they’re ready—all while continuing to work with their local real estate agent of choice. Homebuyers can further streamline the homebuying process by financing online with Century Complete’s affiliate lender, Inspire Home Loans®.
How it works:
- Shop homes at CenturyCommunities.com
- Click “Buy Now” on any available home
- Fill out a quick Buy Online form
- Electronically submit an initial earnest money deposit
- Electronically sign a purchase contract via DocuSign®
Learn more about the Buy Online experience at www.CenturyCommunities.com/online-homebuying.
About Century Communities
Century Communities, Inc. CCS is one of the nation’s largest homebuilders, an industry leader in online home sales, and the highest-ranked homebuilder on Newsweek’s list of America’s Most Trustworthy Companies 2024—consecutively awarded for a second year—and Newsweek’s list of the World’s Most Trustworthy Companies 2024. Through its Century Communities and Century Complete brands, Century’s mission is to build attractive, high-quality homes at affordable prices to provide its valued customers with A HOME FOR EVERY DREAM®. Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Company operates in 18 states and over 45 markets across the U.S., and also offers title, insurance and lending services in select markets through its Parkway Title, IHL Home Insurance Agency, and Inspire Home Loans subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.
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SOURCE Century Communities, Inc.
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Cogeco Communications Releases its Financial Results for the Fourth Quarter of Fiscal 2024
- Strong progress on the strategic priorities announced last quarter centered on synergies, digitization, advanced analytics, network expansion and wireless.
- Successfully completed the combination of our Canadian and U.S. telecommunications teams.
- Signed strategic partnerships to enable an upcoming launch of wireless services in Canada, in a capital-efficient manner as an MVNO.
- Met or exceeded all financial guidelines set for fiscal 2024; issuing fiscal 2025 financial guidelines.
- Increasing quarterly eligible dividend by 8.0% to $0.922 per share.
MONTRÉAL, Oct. 31, 2024 /CNW/ – Today, Cogeco Communications Inc. CCA (“Cogeco Communications” or the “Corporation”) announced its financial results for the fourth quarter ended August 31, 2024 and is issuing its fiscal 2025 financial guidelines.
“Fiscal 2024 has been a year of tremendous progress for Cogeco,” said Frédéric Perron, President and CEO. “Over the last six months alone, we set clear priorities to achieve sustainable growth, launched wireless in the U.S., assembled the building blocks to launch wireless in Canada as an MVNO, successfully combined our Canadian and U.S. organizations and refreshed our executive team. The recently completed restructuring, which simplified our operating model, was the first phase of a structured three-year program. We are now in a position to accelerate our digital capabilities, drive bundling across wireline and wireless, and continue to optimize our operations for ongoing growth and value creation.
“Our Canadian telecommunications business continued to perform well in Q4, driven by growth of our Internet subscriber base through Cogeco Connexion, oxio, and our network expansion program. We’re particularly excited about our oxio brand’s performance as its digital model has not only become a growth engine for the organization, but has also become a model for key transformation initiatives within the Corporation more broadly.
“In the U.S., the launch of Breezeline Mobile provides customers even more compelling reasons to bundle their services with us. Our Internet-led strategy and focus on operational efficiency contributed to another quarter of strong margin growth.
“Over the past year, we have maintained our balanced approach to allocating capital to growth initiatives including network expansion, product improvements, and a capital-light approach to growing wireless services in both countries, as well as returning capital through an increased dividend and share buybacks, all while progressively reducing our leverage. We will continue with our balanced approach in fiscal 2025 and with that, we are delighted to announce an increase in our quarterly dividend per share to $0.922.”
Consolidated Financial Highlights
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
Change in constant |
(2) |
|
|
(In thousands of Canadian dollars, except % and per share data) (unaudited) |
$ |
$ |
% |
% |
|||
|
Revenue |
747,751 |
743,397 |
0.6 |
(0.7) |
|||
|
Adjusted EBITDA (2) |
370,418 |
351,300 |
5.4 |
4.2 |
|||
|
Adjusted EBITDA margin (2) |
49.5 % |
47.3 % |
|||||
|
Profit for the period |
85,484 |
91,797 |
(6.9) |
||||
|
Profit for the period attributable to owners of the Corporation |
81,958 |
86,499 |
(5.2) |
||||
|
Adjusted profit attributable to owners of the Corporation (2)(3) |
99,054 |
97,175 |
1.9 |
||||
|
Cash flows from operating activities |
319,177 |
281,326 |
13.5 |
||||
|
Free cash flow (1)(2) |
148,189 |
88,953 |
66.6 |
66.1 |
|||
|
Free cash flow, excluding network expansion projects (1)(2) |
205,100 |
121,881 |
68.3 |
67.4 |
|||
|
Acquisition of property, plant and equipment |
154,260 |
205,570 |
(25.0) |
||||
|
Net capital expenditures (2)(4) |
152,253 |
176,617 |
(13.8) |
(15.1) |
|||
|
Net capital expenditures, excluding network expansion projects (2) |
95,342 |
143,689 |
(33.6) |
(34.8) |
|||
|
Capital intensity (2) |
20.4 % |
23.8 % |
|||||
|
Capital intensity, excluding network expansion projects (2) |
12.8 % |
19.3 % |
|||||
|
Diluted earnings per share |
1.94 |
1.95 |
(0.5) |
||||
|
Adjusted diluted earnings per share (2)(3) |
2.35 |
2.19 |
7.3 |
||||
Operating results
For the fourth quarter of fiscal 2024 ended on August 31, 2024:
- Revenue increased by 0.6% to $747.8 million. On a constant currency basis(2), revenue decreased by 0.7% due to a decline in revenue in the American telecommunications segment, offset in part by revenue growth in the Canadian telecommunications segment, as explained below.
- American telecommunications’ revenue decreased by 2.3% in constant currency (remained stable as reported), mainly due to a decline in its subscriber base, especially for entry-level services, and a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by higher revenue per subscriber and a better product mix resulting from improving subscriber metrics.
- Canadian telecommunications’ revenue increased by 0.8%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year, including from network expansion projects, as well as the Niagara Regional Broadband Network acquisition completed on February 5, 2024.
- Adjusted EBITDA increased by 5.4% to $370.4 million. On a constant currency basis, adjusted EBITDA increased by 4.2%, mainly due to higher adjusted EBITDA in both the Canadian and American telecommunications segments, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, in addition to revenue growth in the Canadian telecommunications segment.
- Canadian telecommunications adjusted EBITDA increased by 3.8%, or 4.0% in constant currency.
- American telecommunications adjusted EBITDA increased by 5.2%, or 2.4% in constant currency.
- Profit for the period amounted to $85.5 million, of which $82.0 million, or $1.94 per diluted share, was attributable to owners of the Corporation compared to $91.8 million, $86.5 million, and $1.95 per diluted share, respectively, in the comparable period of fiscal 2023. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from higher depreciation and amortization expense and non-cash pre-tax impairment charges of $14.9 million recognized during the quarter mostly in relation to strategic partnerships to facilitate the development of wireless services in Canada under a capital-light operating model, partly offset by higher adjusted EBITDA, lower financial expense and lower acquisition, integration, restructuring and other costs.
- Adjusted profit attributable to owners of the Corporation(3) was $99.1 million, or $2.35 per diluted share(3), compared to $97.2 million, or $2.19 per diluted share, last year. The increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s share buybacks.
- Net capital expenditures were $152.3 million, a decrease of 13.8% compared to $176.6 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $150.0 million, a decrease of 15.1% compared to last year, mainly resulting from lower spending due to the timing of network expansion projects in both the American and Canadian telecommunications segments, in addition to drawdowns of previously accumulated customer premise equipment inventory in the American telecommunications segment.
- Excluding network expansion projects, net capital expenditures were $95.3 million, a decrease of 33.6% compared to $143.7 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $93.7 million, a decrease of 34.8% compared to last year.
- Fibre-to-the-home network expansion projects continued in both Canada and the United States by adding close to 58,000(5) homes passed during fiscal 2024, of which close to 14,000(5) were in the fourth quarter.
- Capital intensity was 20.4% compared to 23.8% last year. Excluding network expansion projects, capital intensity was 12.8% compared to 19.3% in the same period of the prior year.
- Acquisition of property, plant and equipment decreased by 25.0% to $154.3 million, mainly resulting from lower spending.
- Free cash flow(1) increased by 66.6%, or 66.1% in constant currency, and amounted to $148.2 million, or $147.7 million in constant currency, mainly due to lower net capital expenditures, higher adjusted EBITDA and lower financial expense. Free cash flow, excluding network expansion projects(1) increased by 68.3%, or 67.4% in constant currency, and amounted to $205.1 million, or $204.1 million in constant currency.
- Cash flows from operating activities increased by 13.5% to $319.2 million, mainly from the timing of payments of trade and other payables and higher adjusted EBITDA.
- At its October 31, 2024 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share last year.
FISCAL 2025 FINANCIAL GUIDELINES
Cogeco Communications released its fiscal 2025 financial guidelines. Fiscal 2025 will be the first year of a three-year transformation program, where investments are made in order to set the Corporation on a path to sustainable growth. On a constant currency basis, the Corporation expects fiscal 2025 revenue to remain stable resulting from a combination of Internet subscriber growth and a decline in video and wireline phone subscriptions. On a constant currency basis, fiscal 2025 adjusted EBITDA is anticipated to remain stable, mainly due to stable revenue as well as stable operating expenses, which are anticipated to benefit from the recent corporate reorganization and other operational improvements, offset by investments into new capabilities as part of a three-year transformation program. Net capital expenditures are anticipated to be between $650 and $725 million, including net investments of approximately $140 to $190 million in growth-oriented network expansions, which will increase the Corporation’s footprint in Canada and the United States. Capital intensity is expected to range between 22% and 24%, or 17% and 19% excluding network expansion projects. Free cash flow and free cash flow, excluding network expansion projects, are expected to decrease between 0% and 10% due to stronger than anticipated free cash flow in fiscal 2024, continued growth-oriented investments, and higher financial expense and current income tax.
|
October 31, 2024 |
|||
|
Projections |
(i) |
Actual |
|
|
Fiscal 2025 (constant currency) |
(ii) |
Fiscal 2024 |
|
|
(In millions of Canadian dollars, except percentages) |
$ |
$ |
|
|
Financial guidelines |
|||
|
Revenue |
Stable |
2,977 |
|
|
Adjusted EBITDA |
Stable |
1,442 |
|
|
Net capital expenditures |
$650 to $725 |
638 |
|
|
Net capital expenditures in connection with network expansion projects |
$140 to $190 |
137 |
|
|
Capital intensity |
22% to 24% |
21.4 % |
|
|
Capital intensity, excluding network expansion projects |
17% to 19% |
16.8 % |
|
|
Free cash flow |
Decrease of 0% to 10% |
(iii) |
476 |
|
Free cash flow, excluding network expansion projects |
Decrease of 0% to 10% |
(iii) |
613 |
|
(i) |
Percentage of changes compared to fiscal 2024. |
|
(ii) |
Fiscal 2025 financial guidelines are based on a USD/CDN constant exchange rate of 1.3606 USD/CDN. |
|
(iii) |
The assumed current income tax effective rate is approximately 14%. |
These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco Communications, and should be read in conjunction with the “Forward-looking statements” section of this press release.
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(2) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(3) |
Excludes the impact of non-cash impairment charges, and acquisition, integration, restructuring and other costs, net of tax and non-controlling interest. |
|
(4) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
|
(5) |
Organic growth calculated by excluding additions resulting from acquisitions. |
Financial highlights
|
Change in constant |
Change in constant |
|||||||||||
|
Three months and years ended August 31 |
2024 |
2023 |
(1) |
Change |
(2) (3) |
2024 |
2023 |
(1) |
Change |
(2) (3) |
||
|
(In thousands of Canadian dollars, except % and per share data) |
$ |
$ |
% |
% |
$ |
$ |
% |
% |
||||
|
Operations |
||||||||||||
|
Revenue |
747,751 |
743,397 |
0.6 |
(0.7) |
2,976,524 |
2,984,128 |
(0.3) |
(0.8) |
||||
|
Adjusted EBITDA (3) |
370,418 |
351,300 |
5.4 |
4.2 |
1,442,314 |
1,421,066 |
1.5 |
1.0 |
||||
|
Adjusted EBITDA margin (3) |
49.5 % |
47.3 % |
48.5 % |
47.6 % |
||||||||
|
Acquisition, integration, restructuring and other costs (4) |
10,561 |
15,228 |
(30.6) |
59,731 |
36,225 |
64.9 |
||||||
|
Impairment of property, plant and equipment |
14,862 |
— |
— |
14,862 |
— |
— |
||||||
|
Profit for the period |
85,484 |
91,797 |
(6.9) |
354,132 |
417,972 |
(15.3) |
||||||
|
Profit for the period attributable to owners of the Corporation |
81,958 |
86,499 |
(5.2) |
335,534 |
392,273 |
(14.5) |
||||||
|
Adjusted profit attributable to owners of the Corporation (3)(5) |
99,054 |
97,175 |
1.9 |
400,431 |
417,960 |
(4.2) |
||||||
|
Cash flow |
||||||||||||
|
Cash flows from operating activities |
319,177 |
281,326 |
13.5 |
1,175,219 |
962,905 |
22.0 |
||||||
|
Free cash flow (1)(3) |
148,189 |
88,953 |
66.6 |
66.1 |
476,021 |
418,056 |
13.9 |
13.6 |
||||
|
Free cash flow, excluding network expansion projects (1)(3) |
205,100 |
121,881 |
68.3 |
67.4 |
613,415 |
590,891 |
3.8 |
3.5 |
||||
|
Acquisition of property, plant and equipment |
154,260 |
205,570 |
(25.0) |
659,090 |
802,830 |
(17.9) |
||||||
|
Net capital expenditures (3)(6) |
152,253 |
176,617 |
(13.8) |
(15.1) |
637,833 |
699,506 |
(8.8) |
(9.3) |
||||
|
Net capital expenditures, excluding network expansion projects (3) |
95,342 |
143,689 |
(33.6) |
(34.8) |
500,439 |
526,671 |
(5.0) |
(5.5) |
||||
|
Capital intensity (3) |
20.4 % |
23.8 % |
21.4 % |
23.4 % |
||||||||
|
Capital intensity, excluding network expansion projects (3) |
12.8 % |
19.3 % |
16.8 % |
17.6 % |
||||||||
|
Per share data (7) |
||||||||||||
|
Earnings per share |
||||||||||||
|
Basic |
1.95 |
1.95 |
— |
7.87 |
8.78 |
(10.4) |
||||||
|
Diluted |
1.94 |
1.95 |
(0.5) |
7.83 |
8.75 |
(10.5) |
||||||
|
Adjusted diluted (3)(5) |
2.35 |
2.19 |
7.3 |
9.35 |
9.32 |
0.3 |
||||||
|
Dividends per share |
0.854 |
0.776 |
10.1 |
3.416 |
3.104 |
10.1 |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Proceeds on disposals of property, plant and equipment amounted to $0.6 million and $3.4 million for the three-month period and year ended August 31, 2024, respectively ($1.0 million and $2.7 million, respectively, in fiscal 2023). Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(2) |
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rate of the comparable periods of the prior year. For the three-month period and year ended August 31, 2023, the average foreign exchange rates used for translation were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively. |
|
(3) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(4) |
For the three-month period and year ended August 31, 2024, acquisition, integration, restructuring and other costs were mostly related to restructuring costs recognized during the second half of the year, including costs related to the new organizational structure announced in May 2024 and other cost optimization initiatives. For the three-month period and year ended August 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the integration of past acquisitions, as well as acquisition and integration costs incurred in connection with the acquisition of oxio, completed on March 3, 2023, from restructuring costs associated with organizational changes during the fourth quarter of fiscal 2023 within the Canadian and the American telecommunications segments and from configuration and customization costs related to cloud computing arrangements. Furthermore, a retroactive adjustment of $8.4 million was recognized in fiscal 2023 following the Copyright Board preliminary conclusions on the redetermination of the 2014-2018 royalty rates, of which $4.2 million was reversed during the second quarter of fiscal 2024 following the Copyright Board decision issued in January 2024. |
|
(5) |
Excludes the impact of non-cash impairment charges, acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, all net of tax and non-controlling interest. |
|
(6) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
|
(7) |
Per multiple and subordinate voting share. |
|
As at |
August 31, 2024 |
August 31, 2023 |
|
(In thousands of Canadian dollars, except %) |
$ |
$ |
|
Financial condition |
||
|
Cash and cash equivalents |
76,335 |
362,921 |
|
Total assets |
9,675,009 |
9,768,370 |
|
Long-term debt |
||
|
Current |
361,808 |
41,765 |
|
Non-current |
4,448,261 |
4,979,241 |
|
Net indebtedness (1) |
4,803,629 |
4,749,214 |
|
Equity attributable to owners of the Corporation |
2,979,691 |
2,957,797 |
|
Return on equity (2) |
11.3 % |
13.7 % |
|
(1) |
Net indebtedness is a capital management measure. For more information on this financial measure, please consult the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. |
|
(2) |
Return on equity is a supplementary financial measure and is calculated as profit attributable to owners of the Corporation for the year divided by the average of the equity attributable to owners of the Corporation for the year. |
Forward-looking statements
Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.’s (“Cogeco Communications” or the “Corporation”) future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”, “ensure” or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation’s financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s Fiscal 2024 annual Management’s Discussion and Analysis (“MD&A”) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation’s network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. For more exhaustive information on these risks and uncertainties, the reader should refer to the “Uncertainties and main risk factors” section of the Corporation’s Fiscal 2024 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications’ expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the MD&A included in the Corporation’s Fiscal 2024 Annual Report, the Corporation’s consolidated financial statements and the notes thereto prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) for the year ended August 31, 2024.
Non-IFRS Accounting Standards and other financial measures
This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications’ non-IFRS Accounting Standards ratios.
|
Specified non-IFRS Accounting Standards measures |
Used in the component of the following non-IFRS Accounting Standards ratios |
|
Adjusted profit attributable to owners of the Corporation |
Adjusted diluted earnings per share |
|
Constant currency basis |
Change in constant currency |
|
Net capital expenditures, excluding network expansion projects |
Capital intensity, excluding network expansion projects |
Financial measures presented on a constant currency basis for the three-month period and year ended August 31, 2024 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.
Constant currency basis and foreign exchange impact reconciliation
Consolidated
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
747,751 |
(9,731) |
738,020 |
743,397 |
0.6 |
(0.7) |
||||||
|
Operating expenses |
372,095 |
(5,234) |
366,861 |
388,381 |
(4.2) |
(5.5) |
||||||
|
Management fees – Cogeco Inc. |
5,238 |
— |
5,238 |
3,716 |
41.0 |
41.0 |
||||||
|
Adjusted EBITDA |
370,418 |
(4,497) |
365,921 |
351,300 |
5.4 |
4.2 |
||||||
|
Free cash flow (1) |
148,189 |
(462) |
147,727 |
88,953 |
66.6 |
66.1 |
||||||
|
Net capital expenditures |
152,253 |
(2,254) |
149,999 |
176,617 |
(13.8) |
(15.1) |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
Years ended August 31 |
2024 |
2023 |
(1) |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
2,976,524 |
(15,024) |
2,961,500 |
2,984,128 |
(0.3) |
(0.8) |
||||||
|
Operating expenses |
1,513,258 |
(8,121) |
1,505,137 |
1,544,462 |
(2.0) |
(2.5) |
||||||
|
Management fees – Cogeco Inc. |
20,952 |
— |
20,952 |
18,600 |
12.6 |
12.6 |
||||||
|
Adjusted EBITDA |
1,442,314 |
(6,903) |
1,435,411 |
1,421,066 |
1.5 |
1.0 |
||||||
|
Free cash flow (1) |
476,021 |
(932) |
475,089 |
418,056 |
13.9 |
13.6 |
||||||
|
Net capital expenditures |
637,833 |
(3,340) |
634,493 |
699,506 |
(8.8) |
(9.3) |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
Canadian telecommunications segment
|
Three months ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
378,702 |
— |
378,702 |
375,754 |
0.8 |
0.8 |
||||||
|
Operating expenses |
175,688 |
(288) |
175,400 |
180,183 |
(2.5) |
(2.7) |
||||||
|
Adjusted EBITDA |
203,014 |
288 |
203,302 |
195,571 |
3.8 |
4.0 |
||||||
|
Net capital expenditures |
71,000 |
(245) |
70,755 |
73,348 |
(3.2) |
(3.5) |
||||||
|
Years ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
1,510,506 |
— |
1,510,506 |
1,489,915 |
1.4 |
1.4 |
||||||
|
Operating expenses |
710,706 |
(447) |
710,259 |
701,717 |
1.3 |
1.2 |
||||||
|
Adjusted EBITDA |
799,800 |
447 |
800,247 |
788,198 |
1.5 |
1.5 |
||||||
|
Net capital expenditures |
356,274 |
(463) |
355,811 |
354,384 |
0.5 |
0.4 |
||||||
American telecommunications segment
|
Three months ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
369,049 |
(9,731) |
359,318 |
367,643 |
0.4 |
(2.3) |
||||||
|
Operating expenses |
185,588 |
(4,916) |
180,672 |
193,172 |
(3.9) |
(6.5) |
||||||
|
Adjusted EBITDA |
183,461 |
(4,815) |
178,646 |
174,471 |
5.2 |
2.4 |
||||||
|
Net capital expenditures |
76,238 |
(2,011) |
74,227 |
100,488 |
(24.1) |
(26.1) |
||||||
|
Years ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
1,466,018 |
(15,024) |
1,450,994 |
1,494,213 |
(1.9) |
(2.9) |
||||||
|
Operating expenses |
759,658 |
(7,632) |
752,026 |
800,409 |
(5.1) |
(6.0) |
||||||
|
Adjusted EBITDA |
706,360 |
(7,392) |
698,968 |
693,804 |
1.8 |
0.7 |
||||||
|
Net capital expenditures |
267,728 |
(2,865) |
264,863 |
336,910 |
(20.5) |
(21.4) |
||||||
Adjusted profit attributable to owners of the Corporation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Profit for the period attributable to owners of the Corporation |
81,958 |
86,499 |
335,534 |
392,273 |
|
Impairment of property, plant and equipment |
14,862 |
— |
14,862 |
— |
|
Acquisition, integration, restructuring and other costs |
10,561 |
15,228 |
59,731 |
36,225 |
|
Loss on debt extinguishment (1) |
— |
— |
16,880 |
— |
|
Tax impact for the above items |
(6,648) |
(3,829) |
(24,109) |
(9,370) |
|
Non-controlling interest impact for the above items |
(1,679) |
(723) |
(2,467) |
(1,168) |
|
Adjusted profit attributable to owners of the Corporation |
99,054 |
97,175 |
400,431 |
417,960 |
|
(1) Included within financial expense. |
Free cash flow and free cash flow, excluding network expansion projects reconciliations
|
Three months ended August 31 |
Years ended August 31 |
|||||
|
2024 |
2023 |
(1) |
2024 |
2023 |
(1) |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
||
|
Cash flows from operating activities |
319,177 |
281,326 |
1,175,219 |
962,905 |
||
|
Changes in other non-cash operating activities |
(34,878) |
(9,946) |
(56,369) |
97,851 |
||
|
Income taxes paid |
6,526 |
2,025 |
5,719 |
91,673 |
||
|
Current income taxes |
(553) |
(5,708) |
(20,147) |
(32,067) |
||
|
Interest paid |
71,695 |
65,489 |
266,464 |
239,648 |
||
|
Financial expense |
(61,925) |
(70,222) |
(277,690) |
(251,642) |
||
|
Loss on debt extinguishment (2) |
— |
— |
16,880 |
— |
||
|
Amortization of deferred transaction costs and discounts on long-term debt (2) |
2,190 |
3,195 |
9,143 |
12,601 |
||
|
Net capital expenditures (3) |
(152,253) |
(176,617) |
(637,833) |
(699,506) |
||
|
Proceeds on disposals of property, plant and equipment (1) |
594 |
1,037 |
3,378 |
2,651 |
||
|
Repayment of lease liabilities |
(2,384) |
(1,626) |
(8,743) |
(6,058) |
||
|
Free cash flow (1) |
148,189 |
88,953 |
476,021 |
418,056 |
||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
32,928 |
137,394 |
172,835 |
||
|
Free cash flow, excluding network expansion projects (1) |
205,100 |
121,881 |
613,415 |
590,891 |
||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
(2) |
Included within financial expense. |
|
(3) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
Net capital expenditures reconciliation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Acquisition of property, plant and equipment |
154,260 |
205,570 |
659,090 |
802,830 |
|
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period |
(2,007) |
(28,953) |
(21,257) |
(103,324) |
|
Net capital expenditures |
152,253 |
176,617 |
637,833 |
699,506 |
Adjusted EBITDA reconciliation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Profit for the period |
85,484 |
91,797 |
354,132 |
417,972 |
|
Income taxes |
15,225 |
18,119 |
62,342 |
94,761 |
|
Financial expense |
61,925 |
70,222 |
277,690 |
251,642 |
|
Impairment of property, plant and equipment |
14,862 |
— |
14,862 |
— |
|
Depreciation and amortization |
182,361 |
155,934 |
673,557 |
620,466 |
|
Acquisition, integration, restructuring and other costs |
10,561 |
15,228 |
59,731 |
36,225 |
|
Adjusted EBITDA |
370,418 |
351,300 |
1,442,314 |
1,421,066 |
Net capital expenditures and free cash flow excluding network expansion projects reconciliations
Net capital expenditures
|
Three months ended August 31 |
2024 |
2023 |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Net capital expenditures |
152,253 |
(2,254) |
149,999 |
176,617 |
(13.8) |
(15.1) |
|||||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
(576) |
56,335 |
32,928 |
72.8 |
71.1 |
|||||
|
Net capital expenditures, excluding network expansion projects |
95,342 |
(1,678) |
93,664 |
143,689 |
(33.6) |
(34.8) |
|||||
|
Years ended August 31 |
2024 |
2023 |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Net capital expenditures |
637,833 |
(3,340) |
634,493 |
699,506 |
(8.8) |
(9.3) |
|||||
|
Net capital expenditures in connection with network expansion projects |
137,394 |
(780) |
136,614 |
172,835 |
(20.5) |
(21.0) |
|||||
|
Net capital expenditures, excluding network expansion projects |
500,439 |
(2,560) |
497,879 |
526,671 |
(5.0) |
(5.5) |
|||||
Free cash flow
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
|||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Free cash flow (1) |
148,189 |
(462) |
147,727 |
88,953 |
66.6 |
66.1 |
|||||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
(576) |
56,335 |
32,928 |
72.8 |
71.1 |
|||||
|
Free cash flow, excluding network expansion projects (1) |
205,100 |
(1,038) |
204,062 |
121,881 |
68.3 |
67.4 |
|||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
Years ended August 31 |
2024 |
2023 |
(1) |
Change |
|||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Free cash flow (1) |
476,021 |
(932) |
475,089 |
418,056 |
13.9 |
13.6 |
|||||
|
Net capital expenditures in connection with network expansion projects |
137,394 |
(780) |
136,614 |
172,835 |
(20.5) |
(21.0) |
|||||
|
Free cash flow, excluding network expansion projects (1) |
613,415 |
(1,712) |
611,703 |
590,891 |
3.8 |
3.5 |
|||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
Additional information
Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at corpo.cogeco.com.
About Cogeco Communications Inc.
Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange CCA.
For information:
Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com
Media
Claudja Joseph
Director, Communications & DEI
Cogeco Communications Inc.
Tel.: 514 764-4600
claudja.joseph@cogeco.com
|
Conference Call: |
Friday, November 1st, 2024 at 11:00 a.m. (Eastern Daylight Time) |
|
A live audio of the analyst conference call will be available on both the Investor Relations and the Events and Presentations pages on Cogeco Communications’ website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications’ website for a three-month period. |
|
|
Please use the following dial-in number to access the conference call 10 minutes before the start of the conference: |
|
|
Local – Toronto: 1 289 514-5100 |
|
|
Toll Free – North America: 1 800 717-1738 |
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To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc. |
SOURCE Cogeco Communications Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2024/31/c6932.html
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tesla Can Make Cybercab For The Same Money It Takes Waymo To Install Lidar Sensors On Its Robotaxi, Says Ark Analyst
Tesla Inc.’s TSLA cost of making the entire Cybercab will roughly equal Alphabet Inc. GOOG GOOGL subsidiary Waymo‘s cost for installing lidar sensors on its robotaxis, according to Ark Invest analyst Brett Winton.
What Happened: The cost of manufacturing the Tesla Cybercab should be half the cost of manufacturing the company’s Model 3 or Model Y given the Cybercab has half the content as the other vehicles, Winton said. So once production reaches scale, the cost of manufacturing a Cybercab should be nearly $18,000, according to the analyst.
The cost of purchasing Waymo’s lidar sensors together with installation charges will cost roughly the same amount, Winton said. While the cost of the lidars alone would come at $13,500, installation and wiring will cost another $1,500, taking the total cost of the lidar sensors alone to $15,000.
Waymo installs its sensor suite on electric vehicles made by auto manufacturers such as Zeekr, implying a separate cost for purchasing the vehicle.
Winton is not alone in expecting the cost of making the Cybercab to be lower than Waymo’s cost for deploying its robotaxis.
“ARK estimates that Waymo’s vehicles cost more than $100,000 to produce, its sensor set alone ~$40,000+, though it is working to reduce costs. Tesla’s Model 3 costs $40,000, sensors included. While it needs to build backend support for remote vehicle assistance and customer support, Tesla should be able to leverage its existing factory, charging, and service infrastructure to scale efficiently,” Ark Invest’s Tasha Keeney also said in a blog post last month.
Why It Matters: Tesla unveiled its Cybercab with no pedals or steering wheel last month. The vehicle, CEO Elon Musk then said, will enter production “before 2027” and be priced below $30,000.
During Tesla’s third-quarter earnings call last month, Musk said that the company expects to start a ride-hail service in Texas and California starting next year, subject to regulatory approval, with self-driving Model 3 and Model Y vehicles.
However, the vehicles might not all operate as driverless robotaxis initially but with a driver as some states demand it until the company touches certain milestones in terms of miles and hours driven, the company then said.
However, Musk also expressed confidence about the company operating driverless paid rides sometime next year, placing it as a firm competitor to Alphabet Inc’s Waymo.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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Commercial Real Estate Foreclosures Soar By 48% Nationwide While California Sees A 238% Surge
Commercial real estate foreclosures are surging across the U.S., with foreclosures climbing 48% in September year-over-year. California’s numbers are especially striking, with a massive 238% increase, per ATTOM’s recent report, as detailed by Business Insider. This spike points to growing pressures in the sector. This trend is likely influenced by rising interest rates and lingering effects from post-pandemic shifts in demand, particularly for office spaces. States like New York and Florida are also seeing big foreclosure increases, up 48% and 49%, respectively.
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The broader economic shifts are weighing heavily on commercial real estate. Debt continues to mature while demand remains weak. Office spaces have been hit particularly hard as businesses adapt to hybrid work models. Many are downsizing or shedding traditional office space. This transformation leaves landlords with vacancies they may struggle to fill. The dynamic, combined with stricter lending terms, is creating a perfect storm of financial stress for property owners. It could explain the rise in foreclosures.
Industry experts, as polled by Business Insider, are divided on the outlook. Some see foreclosures continuing to rise, especially in markets where properties are difficult to repurpose or reposition. Many commercial properties — particularly aging office buildings — require substantial investment to be converted into housing or mixed-use spaces. These projects are often too costly for landlords already struggling with mortgage payments and other operating expenses.
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However, a recent report from Moody’s offers a more optimistic view, noting an uptick in commercial property transactions in September, the first rise in two years. This increase suggests that, while distressed sales may be on the horizon, there could also be buyers looking to snap up properties at lower prices, potentially spurring a market rebound.
Mortgage delinquency rates further underscore the stress in the sector. The Mortgage Bankers Association recently reported that loans overdue by 60 to 90 days have risen to 0.3%, with loans over 90 days past due up to 2.7%. Despite this strain, some property experts remain cautiously optimistic, suggesting that creative solutions, like converting office spaces into housing, could alleviate commercial real estate distress and the housing shortage.
For now, all eyes remain on how landlords, policymakers, and investors respond to the ongoing pressures facing commercial real estate, as any major moves could impact urban development and housing availability across the U.S.
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Cogeco Releases its Financial Results for the Fourth Quarter of Fiscal 2024
- Strong progress on the strategic priorities announced last quarter centered on synergies, digitization, advanced analytics, network expansion and wireless, as well as transforming our radio business.
- Successfully completed the combination of our Canadian and U.S. telecommunications teams.
- Signed strategic partnerships to enable an upcoming launch of wireless services in Canada, in a capital-efficient manner as an MVNO.
- Met or exceeded all financial guidelines set for fiscal 2024; issuing fiscal 2025 financial guidelines.
- Increasing quarterly eligible dividend by 8.0% to $0.922 per share.
MONTRÉAL, Oct. 31, 2024 /CNW/ – Today, Cogeco Inc. CGO (“Cogeco” or the “Corporation”) announced its financial results for the fourth quarter ended August 31, 2024 and is issuing its fiscal 2025 financial guidelines.
“Fiscal 2024 has been a year of tremendous progress for Cogeco,” said Frédéric Perron, President and CEO. “Over the last six months alone, we set clear priorities to achieve sustainable growth, launched wireless in the U.S., assembled the building blocks to launch wireless in Canada as an MVNO, successfully combined our Canadian and U.S. organizations and refreshed our executive team. The recently completed restructuring, which simplified our operating model, was the first phase of a structured three-year program. We are now in a position to accelerate our digital capabilities, drive bundling across wireline and wireless, and continue to optimize our operations for ongoing growth and value creation.
“Our Canadian telecommunications business continued to perform well in Q4, driven by growth of our Internet subscriber base through Cogeco Connexion, oxio, and our network expansion program. We’re particularly excited about our oxio brand’s performance as its digital model has not only become a growth engine for the organization, but has also become a model for key transformation initiatives within the Corporation more broadly.
“In the U.S., the launch of Breezeline Mobile provides customers even more compelling reasons to bundle their services with us. Our Internet-led strategy and focus on operational efficiency contributed to another quarter of strong margin growth.
“While competitive dynamics in the radio advertising market remain challenging, many of Cogeco Media’s radio stations remained high in the ratings again this quarter. Furthermore, our digital advertising solutions continue to provide a growing contribution to our overall revenue.
“Over the past year, we have maintained our balanced approach to allocating capital to growth initiatives including network expansion, product improvements, and a capital-light approach to growing wireless services in both countries, as well as returning capital through an increased dividend and share buybacks, all while progressively reducing our leverage. We will continue with our balanced approach in fiscal 2025 and with that, we are delighted to announce an increase in our quarterly dividend per share to $0.922.”
Consolidated Financial Highlights
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
Change in constant |
(2) |
|
|
(In thousands of Canadian dollars, except % and per share data) (unaudited) |
$ |
$ |
% |
% |
|||
|
Revenue |
768,656 |
766,652 |
0.3 |
(1.0) |
|||
|
Adjusted EBITDA (2) |
371,216 |
351,925 |
5.5 |
4.2 |
|||
|
Profit for the period |
81,437 |
90,521 |
(10.0) |
||||
|
Profit for the period attributable to owners of the Corporation |
19,248 |
29,234 |
(34.2) |
||||
|
Adjusted profit attributable to owners of the Corporation (2)(3) |
25,562 |
33,006 |
(22.6) |
||||
|
Cash flows from operating activities |
326,723 |
284,370 |
14.9 |
||||
|
Free cash flow (1)(2) |
143,055 |
87,274 |
63.9 |
63.4 |
|||
|
Free cash flow, excluding network expansion projects (1)(2) |
199,966 |
120,202 |
66.4 |
65.5 |
|||
|
Acquisition of property, plant and equipment |
156,577 |
207,434 |
(24.5) |
||||
|
Net capital expenditures (2)(4) |
154,570 |
178,481 |
(13.4) |
(14.7) |
|||
|
Net capital expenditures, excluding network expansion projects (2) |
97,659 |
145,553 |
(32.9) |
(34.1) |
|||
|
Diluted earnings per share |
1.99 |
1.87 |
6.4 |
||||
|
Adjusted diluted earnings per share (2)(3) |
2.65 |
2.12 |
25.0 |
||||
Operating results
For the fourth quarter of fiscal 2024 ended on August 31, 2024:
- Revenue remained stable at $768.7 million. On a constant currency basis(2), revenue decreased by 1.0% due to a decline in revenue in the American telecommunications segment and in the media activities, offset in part by revenue growth in the Canadian telecommunications segment, as explained below.
- American telecommunications’ revenue decreased by 2.3% in constant currency (remained stable as reported), mainly due to a decline in its subscriber base, especially for entry-level services, and a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by higher revenue per subscriber and a better product mix resulting from improving subscriber metrics.
- Revenue in the media activities decreased by 10.1% as competitive dynamics in the radio advertising market remain challenging.
- Canadian telecommunications’ revenue increased by 0.8%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year, including from network expansion projects, as well as the Niagara Regional Broadband Network acquisition completed on February 5, 2024.
- Adjusted EBITDA increased by 5.5% to $371.2 million. On a constant currency basis, adjusted EBITDA increased by 4.2%, mainly due to higher adjusted EBITDA in both the Canadian and American telecommunications segments, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, in addition to revenue growth in the Canadian telecommunications segment.
- Canadian telecommunications adjusted EBITDA increased by 3.8%, or 4.0% in constant currency.
- American telecommunications adjusted EBITDA increased by 5.2%, or 2.4% in constant currency.
- Profit for the period amounted to $81.4 million, of which $19.2 million, or $1.99 per diluted share, was attributable to owners of the Corporation compared to $90.5 million, $29.2 million, and $1.87 per diluted share, respectively, in the comparable period of fiscal 2023. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from higher depreciation and amortization expense and non-cash pre-tax impairment charges of $15.2 million recognized during the quarter mostly in relation to strategic partnerships to facilitate the development of wireless services in Canada under a capital-light operating model, partly offset by higher adjusted EBITDA and lower financial expense.
- Adjusted profit attributable to owners of the Corporation(3) was $25.6 million, or $2.65 per diluted share(3), compared to $33.0 million, or $2.12 per diluted share, last year. The increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s share buybacks.
- Net capital expenditures were $154.6 million, a decrease of 13.4% compared to $178.5 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $152.3 million, a decrease of 14.7% compared to last year, mainly resulting from lower spending due to the timing of network expansion projects in both the American and Canadian telecommunications segments, in addition to drawdowns of previously accumulated customer premise equipment inventory in the American telecommunications segment.
- Excluding network expansion projects, net capital expenditures were $97.7 million, a decrease of 32.9% compared to $145.6 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $96.0 million, a decrease of 34.1% compared to last year.
- Fibre-to-the-home network expansion projects continued in both Canada and the United States by adding close to 58,000(5) homes passed during fiscal 2024, of which close to 14,000(5) were in the fourth quarter.
- Acquisition of property, plant and equipment decreased by 24.5% to $156.6 million, mainly resulting from lower spending.
- Free cash flow(1) increased by 63.9%, or 63.4% in constant currency, and amounted to $143.1 million, or $142.6 million in constant currency, mainly due to lower net capital expenditures, higher adjusted EBITDA and lower financial expense. Free cash flow, excluding network expansion projects(1) increased by 66.4%, or 65.5% in constant currency, and amounted to $200.0 million, or $198.9 million in constant currency.
- Cash flows from operating activities increased by 14.9% to $326.7 million, mainly from the timing of payments of trade and other payables and higher adjusted EBITDA.
- At its October 31, 2024 meeting, the Board of Directors of Cogeco declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share last year.
FISCAL 2025 FINANCIAL GUIDELINES
Cogeco released its fiscal 2025 financial guidelines. Fiscal 2025 will be the first year of a three-year transformation program, where investments are made in order to set the Corporation on a path to sustainable growth. On a constant currency basis, the Corporation expects fiscal 2025 revenue to remain stable resulting from a combination of Internet subscriber growth and a decline in video and wireline phone subscriptions. On a constant currency basis, fiscal 2025 adjusted EBITDA is anticipated to remain stable, mainly due to stable revenue as well as stable operating expenses, which are anticipated to benefit from the recent corporate reorganization and other operational improvements, offset by investments into new capabilities as part of a three-year transformation program. Net capital expenditures are anticipated to be between $660 and $735 million, including net investments of approximately $140 to $190 million in growth-oriented network expansions, which will increase the Corporation’s footprint in Canada and the United States. Free cash flow and free cash flow, excluding network expansion projects, are expected to decrease between 0% and 10% due to stronger than anticipated free cash flow in fiscal 2024, continued growth-oriented investments, and higher financial expense and current income tax.
|
October 31, 2024 |
|||
|
Projections |
(i) |
Actual |
|
|
Fiscal 2025 (constant currency) |
(ii) |
Fiscal 2024 |
|
|
(In millions of Canadian dollars, except percentages) |
$ |
$ |
|
|
Financial guidelines |
|||
|
Revenue |
Stable |
3,074 |
|
|
Adjusted EBITDA |
Stable |
1,455 |
|
|
Net capital expenditures |
$660 to $735 |
643 |
|
|
Net capital expenditures in connection with network expansion projects |
$140 to $190 |
137 |
|
|
Free cash flow |
Decrease of 0% to 10% |
(iii) |
476 |
|
Free cash flow, excluding network expansion projects |
Decrease of 0% to 10% |
(iii) |
613 |
|
(i) |
Percentage of changes compared to fiscal 2024. |
|
(ii) |
Fiscal 2025 financial guidelines are based on a USD/CDN constant exchange rate of 1.3606 USD/CDN. |
|
(iii) |
The assumed current income tax effective rate is approximately 14%. |
These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco, and should be read in conjunction with the “Forward-looking statements” section of this press release.
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(2) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(3) |
Excludes the impact of non-cash impairment charges, and acquisition, integration, restructuring and other costs, net of tax and non-controlling interest. |
|
(4) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
|
(5) |
Organic growth calculated by excluding additions resulting from acquisitions. |
Financial highlights
|
Three months and years ended August 31 |
2024 |
2023 |
(1) |
Change |
Change in constant |
(2) (3) |
2024 |
2023 |
(1) |
Change |
Change in constant |
(2) (3) |
|
(In thousands of Canadian dollars, except % and per share data) |
$ |
$ |
% |
% |
$ |
$ |
% |
% |
||||
|
Operations |
||||||||||||
|
Revenue |
768,656 |
766,652 |
0.3 |
(1.0) |
3,073,985 |
3,081,136 |
(0.2) |
(0.7) |
||||
|
Adjusted EBITDA (3) |
371,216 |
351,925 |
5.5 |
4.2 |
1,454,817 |
1,432,929 |
1.5 |
1.0 |
||||
|
Acquisition, integration, restructuring and other costs (4) |
12,177 |
15,239 |
(20.1) |
63,298 |
36,245 |
74.6 |
||||||
|
Impairment of property, plant and equipment, intangible assets and goodwill |
15,229 |
— |
— |
15,229 |
88,000 |
(82.7) |
||||||
|
Profit for the period |
81,437 |
90,521 |
(10.0) |
349,381 |
350,235 |
(0.2) |
||||||
|
Profit for the period attributable to owners of the Corporation |
19,248 |
29,234 |
(34.2) |
96,746 |
70,630 |
37.0 |
||||||
|
Adjusted profit attributable to owners of the Corporation (3)(5) |
25,562 |
33,006 |
(22.6) |
119,048 |
149,298 |
(20.3) |
||||||
|
Cash flow |
||||||||||||
|
Cash flows from operating activities |
326,723 |
284,370 |
14.9 |
1,185,150 |
968,214 |
22.4 |
||||||
|
Free cash flow (1)(3) |
143,055 |
87,274 |
63.9 |
63.4 |
475,765 |
424,083 |
12.2 |
12.0 |
||||
|
Free cash flow, excluding network expansion projects (1)(3) |
199,966 |
120,202 |
66.4 |
65.5 |
613,159 |
596,918 |
2.7 |
2.4 |
||||
|
Acquisition of property, plant and equipment |
156,577 |
207,434 |
(24.5) |
664,004 |
806,237 |
(17.6) |
||||||
|
Net capital expenditures (3)(6) |
154,570 |
178,481 |
(13.4) |
(14.7) |
642,747 |
702,913 |
(8.6) |
(9.0) |
||||
|
Net capital expenditures, excluding network expansion projects (3) |
97,659 |
145,553 |
(32.9) |
(34.1) |
505,353 |
530,078 |
(4.7) |
(5.1) |
||||
|
Per share data (7) |
||||||||||||
|
Earnings per share |
||||||||||||
|
Basic |
2.02 |
1.89 |
6.9 |
8.63 |
4.53 |
90.5 |
||||||
|
Diluted |
1.99 |
1.87 |
6.4 |
8.55 |
4.51 |
89.6 |
||||||
|
Adjusted diluted (3)(5) |
2.65 |
2.12 |
25.0 |
10.52 |
9.53 |
10.4 |
||||||
|
Dividends per share |
0.854 |
0.731 |
16.8 |
3.416 |
2.924 |
16.8 |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Proceeds on disposals of property, plant and equipment amounted to $0.6 million and $3.4 million for the three-month period and year ended August 31, 2024, respectively ($1.0 million and $2.7 million, respectively, in fiscal 2023). Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(2) |
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rate of the comparable periods of the prior year. For the three-month period and year ended August 31, 2023, the average foreign exchange rates used for translation were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively. |
|
(3) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(4) |
For the three-month period and year ended August 31, 2024, acquisition, integration, restructuring and other costs were mostly related to restructuring costs recognized during the second half of the year, including costs related to the new organizational structure announced in May 2024 and other cost optimization initiatives. For the three-month period and year ended August 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the integration of past acquisitions, as well as acquisition and integration costs incurred in connection with the acquisition of oxio, completed on March 3, 2023, from restructuring costs associated with organizational changes during the fourth quarter of fiscal 2023 within the Canadian and the American telecommunications segments and from configuration and customization costs related to cloud computing arrangements. Furthermore, a retroactive adjustment of $8.4 million was recognized in fiscal 2023 following the Copyright Board preliminary conclusions on the redetermination of the 2014-2018 royalty rates, of which $4.2 million was reversed during the second quarter of fiscal 2024 following the Copyright Board decision issued in January 2024. |
|
(5) |
Excludes the impact of non-cash impairment charges, acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, all net of tax and non-controlling interest. |
|
(6) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
|
(7) |
Per multiple and subordinate voting share. |
|
As at |
August 31, 2024 |
August 31, 2023 |
|
(In thousands of Canadian dollars, except %) |
$ |
$ |
|
Financial condition |
||
|
Cash and cash equivalents |
77,746 |
363,854 |
|
Total assets |
9,773,739 |
9,869,778 |
|
Long-term debt |
||
|
Current |
370,108 |
43,325 |
|
Non-current |
4,594,057 |
5,045,672 |
|
Net indebtedness (1) |
4,957,594 |
4,817,113 |
|
Equity attributable to owners of the Corporation |
810,437 |
925,863 |
|
Return on equity (2) |
11.1 % |
7.7 % |
|
(1) |
Net indebtedness is a capital management measure. For more information on this financial measure, please consult the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. |
|
(2) |
Return on equity is a supplementary financial measure and is calculated as profit attributable to owners of the Corporation for the year divided by the average of the equity attributable to owners of the Corporation for the year. |
Forward-looking statements
Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Inc.’s (“Cogeco” or the “Corporation”) future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”, “ensure” or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation’s financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s Fiscal 2024 annual Management’s Discussion and Analysis (“MD&A”) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation’s network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. Moreover, the Corporation’s radio operations are significantly exposed to advertising budgets from the retail industry, which can fluctuate due to increased competition and changing economic conditions. For more exhaustive information on these risks and uncertainties, the reader should refer to the “Uncertainties and main risk factors” section of the Corporation’s Fiscal 2024 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco’s expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the MD&A included in the Corporation’s Fiscal 2024 Annual Report, the Corporation’s consolidated financial statements and the notes thereto prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) for the year ended August 31, 2024.
Non-IFRS Accounting Standards and other financial measures
This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco. These financial measures are reviewed in assessing the performance of Cogeco and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco’s non-IFRS Accounting Standards ratios.
|
Specified non-IFRS Accounting Standards measure |
Used in the component of the following non-IFRS Accounting Standards ratio |
|
Adjusted profit attributable to owners of the Corporation |
Adjusted diluted earnings per share |
Financial measures presented on a constant currency basis for the three-month period and year ended August 31, 2024 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.
Constant currency basis and foreign exchange impact reconciliation
Consolidated
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
768,656 |
(9,731) |
758,925 |
766,652 |
0.3 |
(1.0) |
||||||
|
Operating expenses |
397,440 |
(5,234) |
392,206 |
414,727 |
(4.2) |
(5.4) |
||||||
|
Adjusted EBITDA |
371,216 |
(4,497) |
366,719 |
351,925 |
5.5 |
4.2 |
||||||
|
Free cash flow (1) |
143,055 |
(462) |
142,593 |
87,274 |
63.9 |
63.4 |
||||||
|
Net capital expenditures |
154,570 |
(2,254) |
152,316 |
178,481 |
(13.4) |
(14.7) |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
Years ended August 31 |
2024 |
2023 |
(1) |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
3,073,985 |
(15,024) |
3,058,961 |
3,081,136 |
(0.2) |
(0.7) |
||||||
|
Operating expenses |
1,619,168 |
(8,121) |
1,611,047 |
1,648,207 |
(1.8) |
(2.3) |
||||||
|
Adjusted EBITDA |
1,454,817 |
(6,903) |
1,447,914 |
1,432,929 |
1.5 |
1.0 |
||||||
|
Free cash flow (1) |
475,765 |
(932) |
474,833 |
424,083 |
12.2 |
12.0 |
||||||
|
Net capital expenditures |
642,747 |
(3,340) |
639,407 |
702,913 |
(8.6) |
(9.0) |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
Canadian telecommunications segment
|
Three months ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
378,702 |
— |
378,702 |
375,754 |
0.8 |
0.8 |
||||||
|
Operating expenses |
175,688 |
(288) |
175,400 |
180,183 |
(2.5) |
(2.7) |
||||||
|
Adjusted EBITDA |
203,014 |
288 |
203,302 |
195,571 |
3.8 |
4.0 |
||||||
|
Net capital expenditures |
71,000 |
(245) |
70,755 |
73,348 |
(3.2) |
(3.5) |
||||||
|
Years ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
1,510,506 |
— |
1,510,506 |
1,489,915 |
1.4 |
1.4 |
||||||
|
Operating expenses |
710,706 |
(447) |
710,259 |
701,717 |
1.3 |
1.2 |
||||||
|
Adjusted EBITDA |
799,800 |
447 |
800,247 |
788,198 |
1.5 |
1.5 |
||||||
|
Net capital expenditures |
356,274 |
(463) |
355,811 |
354,384 |
0.5 |
0.4 |
||||||
American telecommunications segment
|
Three months ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
369,049 |
(9,731) |
359,318 |
367,643 |
0.4 |
(2.3) |
||||||
|
Operating expenses |
185,588 |
(4,916) |
180,672 |
193,172 |
(3.9) |
(6.5) |
||||||
|
Adjusted EBITDA |
183,461 |
(4,815) |
178,646 |
174,471 |
5.2 |
2.4 |
||||||
|
Net capital expenditures |
76,238 |
(2,011) |
74,227 |
100,488 |
(24.1) |
(26.1) |
||||||
|
Years ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
1,466,018 |
(15,024) |
1,450,994 |
1,494,213 |
(1.9) |
(2.9) |
||||||
|
Operating expenses |
759,658 |
(7,632) |
752,026 |
800,409 |
(5.1) |
(6.0) |
||||||
|
Adjusted EBITDA |
706,360 |
(7,392) |
698,968 |
693,804 |
1.8 |
0.7 |
||||||
|
Net capital expenditures |
267,728 |
(2,865) |
264,863 |
336,910 |
(20.5) |
(21.4) |
||||||
Adjusted profit attributable to owners of the Corporation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Profit for the period attributable to owners of the Corporation |
19,248 |
29,234 |
96,746 |
70,630 |
|
Impairment of property, plant and equipment, intangible assets and goodwill |
15,229 |
— |
15,229 |
88,000 |
|
Acquisition, integration, restructuring and other costs |
12,177 |
15,239 |
63,298 |
36,245 |
|
Loss on debt extinguishment (1) |
— |
— |
16,880 |
— |
|
Tax impact for the above items |
(7,173) |
(3,832) |
(25,151) |
(27,770) |
|
Non-controlling interest impact for the above items |
(13,919) |
(7,635) |
(47,954) |
(17,807) |
|
Adjusted profit attributable to owners of the Corporation |
25,562 |
33,006 |
119,048 |
149,298 |
|
(1) |
Included within financial expense. |
Free cash flow and free cash flow, excluding network expansion projects reconciliations
|
Three months ended August 31 |
Years ended August 31 |
|||||
|
2024 |
2023 |
(1) |
2024 |
2023 |
(1) |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
||
|
Cash flows from operating activities |
326,723 |
284,370 |
1,185,150 |
968,214 |
||
|
Changes in other non-cash operating activities |
(44,264) |
(12,970) |
(58,459) |
102,422 |
||
|
Income taxes paid |
6,124 |
2,190 |
4,890 |
91,968 |
||
|
Current income taxes |
(682) |
(5,523) |
(20,995) |
(31,973) |
||
|
Interest paid |
74,150 |
66,544 |
275,283 |
243,321 |
||
|
Financial expense |
(64,461) |
(71,198) |
(286,672) |
(255,010) |
||
|
Loss on debt extinguishment (2) |
— |
— |
16,880 |
— |
||
|
Amortization of deferred transaction costs and discounts on long-term debt (2) |
2,257 |
3,212 |
9,336 |
12,672 |
||
|
Net capital expenditures (3) |
(154,570) |
(178,481) |
(642,747) |
(702,913) |
||
|
Proceeds on disposals of property, plant and equipment (1) |
594 |
1,037 |
3,381 |
2,653 |
||
|
Repayment of lease liabilities |
(2,816) |
(1,907) |
(10,282) |
(7,271) |
||
|
Free cash flow (1) |
143,055 |
87,274 |
475,765 |
424,083 |
||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
32,928 |
137,394 |
172,835 |
||
|
Free cash flow, excluding network expansion projects (1) |
199,966 |
120,202 |
613,159 |
596,918 |
||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
(2) |
Included within financial expense. |
|
(3) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
Net capital expenditures reconciliation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Acquisition of property, plant and equipment |
156,577 |
207,434 |
664,004 |
806,237 |
|
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period |
(2,007) |
(28,953) |
(21,257) |
(103,324) |
|
Net capital expenditures |
154,570 |
178,481 |
642,747 |
702,913 |
Adjusted EBITDA reconciliation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Profit for the period |
81,437 |
90,521 |
349,381 |
350,235 |
|
Income taxes |
14,262 |
17,827 |
61,808 |
78,379 |
|
Financial expense |
64,461 |
71,198 |
286,672 |
255,010 |
|
Impairment of property, plant and equipment, intangible assets and goodwill |
15,229 |
— |
15,229 |
88,000 |
|
Depreciation and amortization |
183,650 |
157,140 |
678,429 |
625,060 |
|
Acquisition, integration, restructuring and other costs |
12,177 |
15,239 |
63,298 |
36,245 |
|
Adjusted EBITDA |
371,216 |
351,925 |
1,454,817 |
1,432,929 |
Net capital expenditures and free cash flow excluding network expansion projects reconciliations
Net capital expenditures
|
Three months ended August 31 |
2024 |
2023 |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Net capital expenditures |
154,570 |
(2,254) |
152,316 |
178,481 |
(13.4) |
(14.7) |
|||||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
(576) |
56,335 |
32,928 |
72.8 |
71.1 |
|||||
|
Net capital expenditures, excluding network expansion projects |
97,659 |
(1,678) |
95,981 |
145,553 |
(32.9) |
(34.1) |
|||||
|
Years ended August 31 |
2024 |
2023 |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Net capital expenditures |
642,747 |
(3,340) |
639,407 |
702,913 |
(8.6) |
(9.0) |
|||||
|
Net capital expenditures in connection with network expansion projects |
137,394 |
(780) |
136,614 |
172,835 |
(20.5) |
(21.0) |
|||||
|
Net capital expenditures, excluding network expansion projects |
505,353 |
(2,560) |
502,793 |
530,078 |
(4.7) |
(5.1) |
|||||
Free cash flow
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
|||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Free cash flow (1) |
143,055 |
(462) |
142,593 |
87,274 |
63.9 |
63.4 |
|||||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
(576) |
56,335 |
32,928 |
72.8 |
71.1 |
|||||
|
Free cash flow, excluding network expansion projects (1) |
199,966 |
(1,038) |
198,928 |
120,202 |
66.4 |
65.5 |
|||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
Years ended August 31 |
2024 |
2023 |
(1) |
Change |
|||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Free cash flow (1) |
475,765 |
(932) |
474,833 |
424,083 |
12.2 |
12.0 |
|||||
|
Net capital expenditures in connection with network expansion projects |
137,394 |
(780) |
136,614 |
172,835 |
(20.5) |
(21.0) |
|||||
|
Free cash flow, excluding network expansion projects (1) |
613,159 |
(1,712) |
611,447 |
596,918 |
2.7 |
2.4 |
|||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
Additional information
Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at corpo.cogeco.com.
About Cogeco Inc.
Cogeco Inc. is a North American leader in the telecommunications and media sectors. Through Cogeco Communications Inc., we provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Through Cogeco Media, we operate 21 radio stations in Canada, primarily in the province of Québec, as well as a news agency. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Both Cogeco Inc.’s and Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange CGO.
For information:
Investors
Troy Crandall
Head, Investor Relations
Cogeco Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com
Media
Claudja Joseph
Director, Communications & DEI
Cogeco Inc.
Tel.: 514 764-4600
claudja.joseph@cogeco.com
|
Conference Call: |
Friday, November 1st, 2024 at 11:00 a.m. (Eastern Daylight Time) |
|
A live audio of the analyst conference call will be available on both the Investor Relations and the Events and Presentations pages on Cogeco’s website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco’s website for a three-month period. |
|
|
Please use the following dial-in number to access the conference call 10 minutes before the start of the conference: |
|
|
Local – Toronto: 1 289 514-5100 |
|
|
Toll Free – North America: 1 800 717-1738 |
|
|
To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc. |
SOURCE Cogeco Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2024/31/c7345.html
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Black Diamond Reports Third Quarter 2024 Results and Increases Dividend by 17%
CALGARY, Alberta, Oct. 31, 2024 (GLOBE NEWSWIRE) — Black Diamond Group Limited (“Black Diamond”, the “Company” or “we”), BDI, a leading provider of space rental and workforce accommodation solutions, today announced its operating and financial results for the three and nine months ended September 30, 2024 (the “Quarter”) compared with the three and nine months ended September 30, 2023 (the “Comparative Quarter”). All financial figures are expressed in Canadian dollars.
Key Highlights from the Third Quarter of 2024
- Consolidated rental revenue of $37.9 million decreased a modest 4% as compared to the Comparative Quarter and was up 7% from the second quarter of 2024. Modular Space Solutions (“MSS”) rental revenue of $24.5 million, was another quarterly record and increased 11% from $22.0 million in the Comparative Quarter, while Workforce Solutions (“WFS”) rental revenue was down 23% to $13.4 million due to the completion of two large pipeline projects at the end of 2023.
- Adjusted EBITDA1 of $28.8 million was down 21% from the Comparative Quarter primarily due to lower contribution from WFS, a positive settlement recognized in the Comparative Quarter of $2.1 million related to a customer dispute from a prior year related to one project (“2023 Settlement”), as well as slightly lower custom sales contribution from MSS.
- Consolidated contracted future rental revenue at the end of the Quarter continued to grow and was up 27% from $128.6 million at the end of the Comparative Quarter to $163.8 million.
- Total capital expenditures for the Quarter and Year of $23.8 million and $94.5 million is up 18% and 71% respectively and highlights the organic growth opportunities Management continues to see across the platform to drive growing contracted future rental revenue.
- Return on Assets1 of 19% for the Quarter continues to represent an attractive return profile given the long-life and low maintenance characteristics of the Company’s rental assets.
- MSS average monthly rental rate per unit increased 10% from the Comparative Quarter (or 9% on a constant currency basis), while contracted future rental revenue increased 28% to $127.6 million at the end of the Quarter from $99.7 million at the end of the Comparative Quarter.
- WFS contracted future rental revenue from contracts in place was $36.2 million, an increase of 25% from the Comparative Quarter.
- LodgeLink net revenue was a record $3.4 million, an increase of 26% from $2.7 million in the Comparative Quarter. Total room nights sold increased 34% from the Comparative Quarter, to a record of 147,560.
- Long term debt and Net Debt1 at the end of the Quarter increased 28% and 24% since December 31, 2023, to $243.2 million and $228.4 million, respectively. The increase is primarily attributable to growth capital expenditure during the year. Net Debt to trailing twelve month (“TTM”) Adjusted Leverage EBITDA1 of 2.2x is at the low-end of the Company’s target range of 2.0x to 3.0x, while available liquidity was $98.4 million at the end of the Quarter.
- Given continued strength across the rental platform, subsequent to the end of the Quarter, the Company announced a 17% increase to its quarterly dividend from $0.03 to $0.035 per quarter. The fourth quarter dividend of $0.035 is payable on or about January 15, 2025 to shareholders of record on December 31, 2024.
Outlook
The Company remains well-positioned for continued growth for the remainder of 2024 and into 2025. The positive outlook for the business is driven in-part by over $163.8 million of contracted future rental revenue, up 27% from the end of the Comparative Quarter. The meaningful growth in future contracted rental revenues has been driven by the Company’s disciplined organic growth initiatives this year with $94.5 million of gross capital expenditures for the Year, as well as renewals of existing contracts.
During the Quarter, MSS generated a record $24.5 million in rental revenue, up 11% from the Comparative Quarter, driven by increased average rental rates and ongoing organic fleet investment, slightly offset by a moderate decline in utilization. Current utilization remains at healthy levels for the MSS platform in the context of long-term industry trends. Sales revenue declined 25% from a historically strong Comparative Quarter, but increased from the first half of 2024 as previously delayed projects reach completion. Non-rental revenue in the Quarter was up 24% from the Comparative Quarter, as installation activity remained robust for both the rental fleet and custom sales. MSS contracted future rental revenue continues to grow and ended the Quarter at $127.6 million, up 28% or $27.9 million from the Comparative Quarter, with an average rental duration of 51 months. Demand remains strong in key infrastructure and education verticals which continues to support ongoing deployment of organic fleet growth into 2025.
For the Year, WFS performance is modestly below the Prior Year with revenue and Adjusted EBITDA down 12% and 6%, respectively, despite the completion of two large projects at the end of 2023. For the Quarter, revenue and Adjusted EBITDA was down 31% and 39%, respectively, primarily due to a high degree of contribution from these aforementioned projects in the Comparative Quarter. Management continues to focus on growing rental revenues through improving utilization across our WFS geographies amidst a generally higher rate environment. The WFS sales pipeline and opportunity set remain robust with contracted future rental revenue increasing 25% to $36.2 million.
LodgeLink performance continued to set quarterly records as Gross Bookings1 for the Quarter were up 31% to $27.2 million and net revenue grew 26% from the Comparative Quarter to a record $3.4 million. Total room nights sold in the Quarter rose 34% from the Comparative Quarter to a record 147,560. The LodgeLink supply network also continues to scale with over 1.7 million rooms of capacity in over 17,000 North American properties. Management remains focused on efficiently growing LodgeLink net revenue and based on current trends, expects modest positive EBITDA contribution from LodgeLink in 2025.
With respect to the Company’s ongoing ERP upgrade and implementation project, the Company has set a remaining budget of $11.9 million for the ERP upgrade related to Black Diamond’s MSS and Corporate segments with anticipated implementation in early 2026.
Black Diamond remains focused on driving profitable growth while compounding the Company’s high-margin, recurring rental revenue streams in both North America and Australia. The Company is well positioned to fund continued organic and inorganic growth with liquidity of $98.4 million, and Net Debt to TTM Adjusted Leverage EBITDA1 of 2.2x, which is at the low end of the Company’s targeted range of 2.0x to 3.0x. The outlook to close out calendar 2024 remains positive and the Company maintains strong momentum into 2025 supported by healthy contracted rental revenues, a growing fleet of long-lived assets, a robust sales pipeline, and the continued scaling of LodgeLink.
1 Adjusted EBITDA, Net Debt and Gross Bookings are non-GAAP financial measures. Return on Assets, Net Revenue Margin and Net Debt to TTM Adjusted Leverage EBITDA are non-GAAP ratios. Refer to the Non-GAAP Measures section of this news release for more information on each non-GAAP financial measure and ratio.
| Third Quarter 2024 Financial Highlights | ||||||
| Three months ended September 30, |
Nine months ended September 30, |
|||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Financial Highlights | $ | $ | % | $ | $ | % |
| Total revenue | 101.2 | 117.5 | (14)% | 270.3 | 290.1 | (7)% |
| Gross profit | 46.7 | 54.2 | (14)% | 128.5 | 130.9 | (2)% |
| Administrative expenses | 18.2 | 17.5 | 4% | 55.0 | 50.3 | 9% |
| Adjusted EBITDA(1) | 28.8 | 36.6 | (21)% | 76.2 | 80.5 | (5)% |
| Adjusted EBIT(1) | 16.2 | 24.0 | (33)% | 41.7 | 47.5 | (12)% |
| Funds from Operations(1) | 31.2 | 39.2 | (20)% | 80.5 | 86.7 | (7)% |
| Per share ($) | 0.51 | 0.65 | (22)% | 1.32 | 1.44 | (8)% |
| Profit before income taxes | 10.3 | 18.7 | (45)% | 22.6 | 32.0 | (29)% |
| Profit | 7.4 | 13.6 | (46)% | 16.3 | 22.5 | (28)% |
| Earnings per share – Basic ($) | 0.12 | 0.22 | (45)% | 0.27 | 0.37 | (27)% |
| Earnings per share – Diluted ($) | 0.12 | 0.22 | (45)% | 0.26 | 0.37 | (30)% |
| Capital expenditures | 23.8 | 20.1 | 18% | 94.5 | 55.2 | 71% |
| Property & equipment | 571.1 | 510.1 | 12% | 571.1 | 510.1 | 12% |
| Total assets | 745.5 | 669.3 | 11% | 745.5 | 669.3 | 11% |
| Long-term debt | 243.2 | 206.1 | 18% | 243.2 | 206.1 | 18% |
| Cash and cash equivalents | 15.1 | 5.6 | 170% | 15.1 | 5.6 | 170% |
| Return on Assets (%)(1) | 19.3% | 27.3% | (800) bps | 17.5% | 20.2% | (270) bps |
| Free Cashflow(1) | 19.6 | 30.6 | (36)% | 47.2 | 60.8 | (22)% |
| (1) Adjusted EBITDA, Adjusted EBIT, Funds from Operations and Free Cashflow are non-GAAP financial measures. Return on Assets is a non-GAAP ratio. Refer to the Non-GAAP Measures section of this news release for more information on each non-GAAP financial measure and ratio. | ||||||
Additional Information
A copy of the Company’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023 and related management’s discussion and analysis have been filed with the Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) and www.blackdiamondgroup.com.
About Black Diamond Group
Black Diamond is a specialty rentals and industrial services company with two operating business units – MSS and WFS. We operate in Canada, the United States, and Australia.
MSS through its principal brands, BOXX Modular, CLM, MPA Systems, and Schiavi, owns a large rental fleet of modular buildings of various types and sizes. Its network of local branches rent, sell, service, and provide ancillary products and services to a diverse customer base in the construction, industrial, education, financial, and government sectors.
WFS owns a large rental fleet of modular accommodation assets of various types. Its regional operating terminals rent, sell, service, and provide ancillary products and services including turnkey operated camps to a wide array of customers in the resource, infrastructure, construction, disaster recovery, and education sectors.
In addition, WFS includes LodgeLink which operates a digital marketplace for business-to-business crew accommodation, travel, and logistics services across North America. The LodgeLink proprietary digital platform enables customers to efficiently find, book, and manage their crew travel and accommodation needs through a rapidly growing network of hotel, remote lodge, and travel partners. LodgeLink exists to solve the unique challenges associated with crew travel and applies technology to eliminate inefficiencies at every step of the crew travel process from booking, to management, to payments, to cost reporting.
Learn more at www.blackdiamondgroup.com.
For investor inquiries please contact Jason Zhang at 403-206-4739 or investor@blackdiamondgroup.com.
Conference Call
Black Diamond will hold a conference call and webcast at 9:00 a.m. MT (11:00 a.m. ET) on Friday, November 1, 2024. CEO Trevor Haynes and CFO Toby LaBrie will discuss Black Diamond’s financial results for the Quarter and then take questions from investors and analysts.
To access the conference call by telephone dial toll free 1-844-763-8274. International callers should use 1-647-484-8814. Please connect approximately 10 minutes prior to the beginning of the call.
To access the call via webcast, please log into the webcast link 10 minutes before the start time at:
https://www.gowebcasting.com/13707
Following the conference call, a replay will be available on the Investor Centre section of the Company’s website at www.blackdiamondgroup.com, under Presentations & Events.
https://www.gowebcasting.com/13707
Reader Advisory
Forward-Looking Statements
Certain information set forth in this news release contains forward-looking statements including, but not limited to, the Company’s outlook for the remainder of 2024 and into 2025, expectations for and opportunities in different geographic areas, opportunities for organic investment, the Company’s ability to fund organic and inorganic growth, the sales and opportunity pipeline, timing and payment of a fourth quarter dividend, the anticipated timeline for the Company’s Enterprise Resource Planning (“ERP”) system upgrade and implementation project, management’s assessment of Black Diamond’s future operations and what may have an impact on them, expectations regarding the rental rate environment, opportunities and effect of deploying investment capital, financial performance, business prospects and opportunities, changing operating environment including changing activity levels, effects on demand and performance based on the changing operating environment, expectations for demand and growth in the Company’s operating and customer segments, future deployment of assets, amount of revenue anticipated to be derived from current contracts, anticipated debt levels, liquidity demands and sources, ongoing contractual terms and debt obligations, liquidity, working capital and other requirements, sources and use of funds, economic life of the Company’s assets, expected length of existing contracts and future growth and profitability of the Company. With respect to the forward-looking statements in this news release, Black Diamond has made assumptions regarding, among other things: future commodity prices, the future rate environment, that Black Diamond will continue to raise sufficient capital to fund its business plans in a manner consistent with past operations, timing and cost estimates of a new ERP system, that counterparties to contracts will perform the contracts as written and that there will be no unforeseen material delays in contracted projects. Although Black Diamond believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurances that such expectations or assumptions will prove to be correct. Readers are cautioned that assumptions used in the preparation of such statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of Black Diamond. These risks include, but are not limited to: volatility of industry conditions, the Company’s ability to attract new customers, political conditions, dependence on agreements and contracts, competition, credit risk, information technology systems and cyber security, vulnerability to market changes, operating risks and insurance, weakness in industrial construction and infrastructure developments, weakness in natural resource industries, access to additional financing, dependence on suppliers and manufacturers, reliance on key personnel, and workforce availability. The risks outlined above should not be construed as exhaustive. Additional information on these and other factors that could affect Black Diamond’s operations and financial results are included in Black Diamond’s annual information form for the year ended December 31, 2023 and other reports on file with the Canadian securities regulatory authorities which can be accessed on Black Diamond’s profile on SEDAR+. Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Black Diamond does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.
Non-GAAP Measures
In this news release, the following specified financial measures and ratios have been disclosed: Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue, Return on Assets, Net Debt, Net Debt to TTM Adjusted Leverage EBITDA, Funds from Operations, Free Cashflow, Gross Bookings, and Net Revenue Margin. These non-GAAP and other financial measures do not have any standardized meaning prescribed under International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures presented by other entities. Readers are cautioned that these non-GAAP measures are not alternatives to measures under IFRS and should not, on their own, be construed as an indicator of the Company’s performance or cash flows, a measure of liquidity or as a measure of actual return on the common shares of the Company. These non-GAAP measures should only be used in conjunction with the consolidated financial statements of the Company.
Adjusted EBITDA is not a measure recognized under IFRS and does not have standardized meanings prescribed by IFRS. Adjusted EBITDA refers to consolidated earnings before finance costs, tax expense, depreciation, amortization, accretion, foreign exchange, share-based compensation, acquisition costs, non-controlling interests, share of gains or losses of an associate, write-down of property and equipment, impairment, non-recurring costs, and gains or losses on the sale of non-fleet assets in the normal course of business.
Black Diamond uses Adjusted EBITDA primarily as a measure of operating performance. Management believes that operating performance, as determined by Adjusted EBITDA, is meaningful because it presents the performance of the Company’s operations on a basis which excludes the impact of certain non-cash items as well as how the operations have been financed. In addition, management presents Adjusted EBITDA because it considers it to be an important supplemental measure of the Company’s performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Adjusted EBITDA has limitations as an analytical tool, and readers should not consider this item in isolation, or as a substitute for an analysis of the Company’s results as reported under IFRS. Some of the limitations of Adjusted EBITDA are:
- Adjusted EBITDA excludes certain income tax payments and recoveries that may represent a reduction or increase in cash available to the Company;
- Adjusted EBITDA does not reflect the Company’s cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, the Company’s working capital needs;
- Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest payments on the Company’s debt;
- depreciation and amortization are non-cash charges, thus the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and
- other companies in the industry may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of the Company’s business. The Company compensates for these limitations by relying primarily on the Company’s IFRS results and using Adjusted EBITDA only on a supplementary basis. A reconciliation to profit, the most comparable GAAP measure, is provided below.
Adjusted EBIT is Adjusted EBITDA less depreciation and amortization. Black Diamond uses Adjusted EBIT primarily as a measure of operating performance. Management believes that Adjusted EBIT is a useful measure for investors when analyzing ongoing operating trends. There can be no assurances that additional special items will not occur in future periods, nor that the Company’s definition of Adjusted EBIT is consistent with that of other companies. As such, management believes that it is appropriate to consider both profit determined on a GAAP basis as well as Adjusted EBIT. A reconciliation to profit, the most comparable GAAP measure, is provided below.
Adjusted EBITDA as a % of Revenue is calculated by dividing Adjusted EBITDA by total revenue for the period. Black Diamond uses Adjusted EBITDA as a % of Revenue primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company’s performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures.
Return on Assets is calculated as annualized Adjusted EBITDA divided by average net book value of property and equipment. Annualized Adjusted EBITDA is calculated by multiplying Adjusted EBITDA for the Quarter and Comparative Quarter by an annualized multiplier. Management believes that Return on Assets is a useful financial measure for investors in evaluating operating performance for the periods presented. When read in conjunction with our profit and property and equipment, two GAAP measures, this non-GAAP ratio provides investors with a useful tool to evaluate Black Diamond’s ongoing operations and management of assets from period-to-period.
| Reconciliation of Consolidated Profit to Adjusted EBITDA, Adjusted EBIT, Adjusted EBITDA as a % of Revenue and Return on Assets: | ||||||
| Three months ended September 30, |
Nine months ended September 30, |
|||||
| ($ millions, except as noted) | 2024 | 2023 | Change % |
2024 | 2023 | Change % |
| Profit | 7.4 | 13.6 | (46)% | 16.3 | 22.5 | (28)% |
| Add: | ||||||
| Depreciation and amortization(1) | 12.6 | 12.6 | —% | 34.5 | 33.0 | 5% |
| Finance costs(1) | 4.3 | 3.7 | 16% | 11.6 | 10.4 | 12% |
| Share-based compensation(1) | 1.2 | 1.6 | (25)% | 4.3 | 5.1 | (16)% |
| Non-controlling interest(1) | 0.4 | 0.3 | 33% | 1.1 | 0.9 | 22% |
| Current income taxes(1) | — | — | —% | 0.2 | 0.1 | 100% |
| Deferred income taxes | 2.6 | 4.8 | (46)% | 5.0 | 8.5 | (41)% |
| Non-recurring costs: | ||||||
| ERP implementation and related costs(2) | 0.3 | — | 100% | 2.6 | — | 100% |
| Acquisition costs | — | — | —% | 0.6 | — | 100% |
| Adjusted EBITDA | 28.8 | 36.6 | (21)% | 76.2 | 80.5 | (5)% |
| Less: | ||||||
| Depreciation and amortization(1) | 12.6 | 12.6 | —% | 34.5 | 33.0 | 5% |
| Adjusted EBIT | 16.2 | 24.0 | (33)% | 41.7 | 47.5 | (12)% |
| Total revenue(1) | 101.2 | 117.5 | (14)% | 270.3 | 290.1 | (7)% |
| Adjusted EBITDA as a % of Revenue | 28.5% | 31.1% | (260) bps | 28.2% | 27.7% | 50 bps |
| Annualized multiplier | 4 | 4 | 1.3 | 1.3 | ||
| Annualized adjusted EBITDA | 115.2 | 146.4 | (21)% | 99.1 | 104.7 | (5)% |
| Average net book value of property and equipment | 597.8 | 535.9 | 12% | 566.3 | 531.6 | 7% |
| Return on Assets | 19.3% | 27.3% | (800) bps | 17.5% | 20.2% | (270) bps |
| (1) Sourced from the Company’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. (2) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system in which the first phase of the implementation went live on May 1, 2024 and costs are included in administrative expenses. |
||||||
Net Debt to TTM Adjusted Leverage EBITDA is a non-GAAP ratio which is calculated as Net Debt divided by trailing twelve months Adjusted Leverage EBITDA. Net Debt, a non-GAAP financial measure, is calculated as long-term debt minus cash and cash equivalents. A reconciliation to long-term debt, the most comparable GAAP measure, is provided below. Net Debt and Net Debt to TTM Adjusted Leverage EBITDA removes cash and cash equivalents from the Company’s debt balance. Black Diamond uses this ratio primarily as a measure of operating performance. Management believes this ratio is an important supplemental measure of the Company’s performance and believes this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. In the quarter ended June 30, 2022, Net Debt to TTM Adjusted EBITDA was renamed Net Debt to TTM Adjusted Leverage EBITDA, to provide further clarity on the composition of the denominator to include pre-acquisition estimates of EBITDA from business combinations. Management believes including the additional information in this calculation helps provide information on the impact of trailing operations from business combinations on the Company’s leverage position.
| Reconciliation of Consolidated Profit to Adjusted EBITDA, Net Debt and Net Debt to TTM Adjusted Leverage EBITDA: | |||||||||
| ($ millions, except as noted) | 2024 | 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 | Change |
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | ||
| Profit | 7.4 | 7.5 | 1.5 | 7.8 | 13.6 | 4.6 | 4.4 | 9.4 | |
| Add: | |||||||||
| Depreciation and amortization | 12.6 | 11.1 | 10.7 | 11.2 | 12.6 | 10.6 | 9.8 | 8.6 | |
| Finance costs | 4.3 | 3.4 | 3.8 | 3.7 | 3.7 | 3.7 | 2.9 | 3.6 | |
| Share-based compensation | 1.2 | 1.6 | 1.5 | 1.1 | 1.6 | 1.3 | 2.2 | 1.3 | |
| Non-controlling interest | 0.4 | 0.4 | 0.3 | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | |
| Current income taxes | — | — | 0.2 | 0.1 | — | 0.1 | — | 0.1 | |
| Deferred income taxes | 2.6 | 2.1 | 0.3 | 0.4 | 4.8 | 1.9 | 1.8 | 3.7 | |
| Impairment reversal | — | — | — | — | — | — | — | (6.3) | |
| Non-recurring costs | |||||||||
| ERP implementation and related costs (1) | 0.3 | 1.8 | 0.5 | 1.5 | — | — | — | — | |
| Acquisition costs | — | — | 0.6 | — | — | — | — | 1.2 | |
| Adjusted EBITDA | 28.8 | 27.9 | 19.4 | 26.1 | 36.6 | 22.5 | 21.4 | 22.0 | |
| Acquisition pro-forma adjustments(2) | — | — | — | — | — | — | — | 0.5 | |
| Adjusted Leverage EBITDA | 28.8 | 27.9 | 19.4 | 26.1 | 36.6 | 22.5 | 21.4 | 22.5 | |
| TTM Adjusted Leverage EBITDA | 102.2 | 103.0 | (1)% | ||||||
| Long-term debt | 243.2 | 206.1 | 18% | ||||||
| Cash and cash equivalents | 15.1 | 5.6 | 170% | ||||||
| Current portion of long term debt (3) | 0.3 | 0.3 | —% | ||||||
| Net Debt | 228.4 | 200.8 | 14% | ||||||
| Net Debt to TTM Adjusted Leverage EBITDA | 2.2 | 1.9 | 16% | ||||||
| (1) This relates to the corporate structure reorganization costs that have been incurred in preparation of a new ERP system in which the first phase of implementation went live on May 1, 2024. (2) Includes pro-forma pre-acquisition EBITDA estimates as if the acquisition that occurred in the fourth quarter 2022, occurred on January 1, 2022. (3) Current portion of long-term debt relating to the payments due within one year on the bank term loans assumed as part of the acquisition in the fourth quarter of 2022. |
|||||||||
Funds from Operations is calculated as the cash flow from operating activities, the most comparable GAAP measure, excluding the changes in non-cash working capital. Management believes that Funds from Operations is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments. Changes in long-term accounts receivables and non-cash working capital items have been excluded as such changes are financed using the operating line of Black Diamond’s credit facilities. A reconciliation to cash flow from operating activities, the most comparable GAAP measure, is provided below.
Free Cashflow is calculated as Funds from Operations minus maintenance capital, net interest paid (including lease interest), payment of lease liabilities, net current income tax expense (recovery), distributions declared to non-controlling interest, dividends paid on common shares and dividends paid on preferred shares plus net current income taxes received (paid). Management believes that Free Cashflow is a useful measure as it provides an indication of the funds generated by the operations before working capital adjustments and other items noted above. Management believes this metric is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in industries with similar capital structures. A reconciliation to cash flow from operating activities, the most comparable GAAP measure, is provided below.
| Reconciliation of Cash Flow from Operating Activities to Funds from Operations and Free Cashflow: | ||||||
| Three months ended September 30, |
Nine months ended September 30, |
|||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Cash Flow from Operating Activities(1) | 31.4 | 33.5 | (6)% | 81.2 | 97.9 | (17)% |
| Add/(Deduct): | ||||||
| Change in other long term assets(1) | 1.1 | 0.5 | 120% | (0.5) | 0.1 | (600)% |
| Changes in non-cash operating working capital(1) | (1.3) | 5.2 | (125)% | (0.2) | (11.3) | 98% |
| Funds from Operations | 31.2 | 39.2 | (20)% | 80.5 | 86.7 | (7)% |
| Add/(deduct): | ||||||
| Maintenance capital | (3.2) | (1.8) | (78)% | (9.3) | (6.1) | (52)% |
| Payment for lease liabilities | (2.4) | (2.0) | (20)% | (6.6) | (5.7) | (16)% |
| Interest paid (including lease interest) | (4.2) | (3.6) | (17)% | (11.5) | (10.0) | (15)% |
| Net current income tax expense | — | — | —% | 0.2 | 0.1 | 100% |
| Dividends paid on common shares | (1.8) | (1.2) | (50)% | (5.5) | (3.6) | (53)% |
| Distributions paid to non-controlling interest | — | — | —% | (0.6) | (0.6) | —% |
| Free Cashflow | 19.6 | 30.6 | (36)% | 47.2 | 60.8 | (22)% |
| (1) Sourced from the Company’s unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023. | ||||||
Gross Bookings, a non-GAAP measure, is total revenue billed to the customer which includes all fees and charges. Net revenue, a GAAP measure, is Gross Bookings less costs paid to suppliers. Revenue from bookings at third party lodges and hotels through LodgeLink are recognized on a net revenue basis. LodgeLink is an agent in the transaction as it is not responsible for providing the service to the customer and does not control the service provided by a supplier. Management believes this ratio is an important supplemental measure of LodgeLink’s performance and cash generation and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms of revenue generation.
Net Revenue Margin is calculated by dividing net revenue by Gross Bookings for the period. Management believes this ratio is an important supplemental measure of LodgeLink’s performance and profitability and believes this ratio is frequently used by interested parties in the evaluation of companies in industries with similar forms revenue generation where companies act as agents in transactions.
| Reconciliation of Net Revenue to Gross Bookings and Net Revenue Margin: | ||||||
| Three months ended September 30, |
Nine months ended September 30, |
|||||
| ($ millions, except as noted) | 2024 | 2023 | Change | 2024 | 2023 | Change |
| Net revenue(1) | 3.4 | 2.7 | 26% | 8.9 | 7.2 | 24% |
| Costs paid to suppliers(1) | 23.8 | 18.1 | 31% | 64.2 | 51.6 | 24% |
| Gross Bookings(1) | 27.2 | 20.8 | 31% | 73.1 | 58.8 | 24% |
| Net Revenue Margin | 12.5% | 12.7% | (20) bps | 12.2% | 12.2% | — bps |
| (1) Includes intercompany transactions. | ||||||
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stock market today: Nasdaq, S&P 500 poised for rebound amid Amazon cheer, jobs report
US stocks were poised for a comeback on Friday as investors digested Amazon (AMZN) and Intel (INTC) earnings and all-important monthly jobs report.
Futures on the Nasdaq 100 (NQ=F) popped 0.6%, while those on the S&P 500 (^GSPC) rose 0.5%, both coming off steep losses fueled by after-earnings tumbles in Meta (META) and Microsoft (MSFT). Dow Jones Industrial Average futures (YM=F) added 0.5%.
Upbeat earnings from Amazon are dissipating the gloom around Big Tech’s prospects that drove Thursday’s slump in stocks. Its shares jumped over 6% in premarket after CEO Andy Jassy said its cloud unit’s AI business was seeing triple-digit revenue growth.
Morale also got a lift from Intel’s (INTC) earnings beat and outlook, which revived hopes for the chipmaker’s turnaround and boosted the stock. But Apple (AAPL) shares slipped as its results and outlook left Wall Street wanting more.
Markets also took in stride disappointing headline numbers from the all-important jobs report, as the US economy added just 12,000 jobs in October, significantly missing expectations. The government said those numbers were weighed down by recent hurricanes and strike activity, most prominently at Boeing (BA).
Markets are currently pricing in about 98% odds of a quarter-point rate cut at the Fed meeting next week, per CME FedWatch.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
In corporates, Boeing shares tipped higher after the union backed its latest offer to end a harmful factory workers’ strike. The sweetened deal would lift wages by 38%.
Meanwhile, oil prices rose almost 2% amid revived Mideast fears, after a report that Iran is planning a strike on Israel via militias that it backs in Iraq. Brent (BZ=F) crude futures traded at around $74 a barrel after briefly nudging $75, while West Texas Intermediate (CL=F) futures neared $71.
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