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Rogers Communications Inc. (ticker: RCI.B.TO, exchange: Toronto Stock Exchange (.TO))
News Release -
22-Jul-1999
Rogers Announces Second Quarter 1999 Results
TORONTO, July 22 /CNW/ - ROGERS COMMUNICATIONS INC. (RCI) today announced
its consolidated financial results for the second quarter ended June 30, 1999.
Financial highlights, which are in thousands of Canadian dollars (except
per share data), are as follows:
| Three Months Ended June 30 |
|
1999 |
1998 |
Percent Change |
| Revenue |
$754,497 |
$715,800 |
5.4% |
| Operating income before depreciation and amortization |
229,567 |
231,017 |
(0.6%) |
| Net income |
40,646 |
663,347 |
NA |
| Net income per share |
$0.19 |
$3.68 |
NA |
| Loss, excluding non-operating gains |
(26,273) |
(44,045) |
NA |
| Loss per share, excluding non-operating gains |
$(0.18) |
$(0.29) |
NA |
| Six Months Ended June 30 |
|
1999 |
1998 |
Percent Change |
| Revenue |
$1,462,795 |
$1,393,660 |
5.0% |
| Operating income before depreciation and amortization |
428,661 |
423,236 |
1.3% |
| Net income |
87,592 |
644,483 |
NA |
| Net income per share |
$0.42 |
$3.53 |
NA |
| Loss, excluding non-operating gains |
(95,468) |
(103,771) |
NA |
| Loss per share, excluding non-operating gains |
$(0.59) |
$(0.66) |
NA |
Commenting on the Company's results, RCI's President and CEO, Edward S.
(Ted) Rogers said, "I am pleased with the operating performance of Rogers in
the second quarter. Wireless has reported accelerating subscriber growth rates
and improving fundamentals for several quarters, and is now beginning to show
its growth potential. Media's operating performance in the quarter was
slightly weaker than the extremely strong results this division has reported
for the last several quarters, but continues to nurture its growth
opportunities, such as its New Media division, its expanding Radio
broadcasting division and The Shopping Channel."
"The second quarter and the weeks following the close of the period were
particularly exciting at Cablesystems. Rogers@Home crossed the 100,000
customer mark, the VIP Cable offer continues to exceed our expectations, and
on July 12th Rogers signed an agreement with Microsoft Corporation to use its
software in the digital set top devices. The combination of Microsoft's
expertise, Rogers' advanced broadband networks and the $600 million investment
Microsoft is making in Rogers Communications will assist us in providing our
customers with earlier access to a broader range of advanced Internet and
interactive television services."
CONSOLIDATED RESULTS -
SECOND QUARTER 1999 VS. 1998
During the second quarter of 1999, consolidated revenue was $754.5
million, an increase of $38.7 million or 5.4% from $715.8 million in the
second quarter of 1998. Excluding the results of Rogers Telecom (which were
included in the 1998 results but not in the 1999 results) RCI had consolidated
revenue growth of $54.3 million, or 7.7%. This increase is due to a 6.2%
increase in revenue at Wireless and a 9.8% increase in revenue at
Cablesystems, and a 7.5% increase in revenue at Media.
Consolidated operating income before depreciation and amortization was
$229.6 million, down marginally from $231.0 million in the second quarter of
the prior year. Excluding the results of Rogers Telecom, RCI had consolidated
operating income before depreciation and amortization growth of $5.2 million,
or 2.3% compared to the second quarter of the prior year.
Fixed Charges
Depreciation and amortization was $145.3 million, approximately the same
as in the second quarter of 1998. Interest expense was $118.2 million, a
decrease of $18.6 million or 13.7% from $136.8 million in the second quarter
of 1998, primarily due to lower average debt balances.
Net Income and Loss
RCI recorded net income of $40.6 million, or $0.19 per share (after
preferred dividends) compared to net income of $663.3 million, or $3.68 per
share (after preferred dividends) in the second quarter of the prior year.
Excluding non-operating gains in both periods, RCI recorded a loss of $26.3
million, or 18 cents per share (after preferred dividends) compared to a loss
of $44.0 million, or 29 cents per share (after preferred dividends) in the
second quarter of the prior year.
Wireless
Wireless' revenue was $325.1 million, an increase of $18.9 or 6.2% from
$306.2 million in the second quarter of the prior year. Operating income
before depreciation and amortization was $108.3 million, up $2.9 million or
2.8% from $105.4 million in the second quarter of the prior year.
Wireless added 187,100 gross cellular customers in the second quarter, an
increase of 74,300 or 65.9% from the second quarter of the prior year. The
average monthly disconnect or "churn" rate was 1.54%, versus 1.87% in the
second quarter of 1998. At June 30, 1999 Wireless had a total of 1,909,700
cellular customers, an increase of 109,500 in the quarter. At the end of the
second quarter, approximately 690,000 customers were on Digital PCS
representing approximately 36% of Wireless' total subscriber base, and 181,400
were on the prepaid cellular service, "Pay As You Go."
Average monthly revenue per unit, or ARPU, was $49, down $7 or 12.2% from
$56 in the second quarter of 1998. Average monthly usage was 223 minutes, up
from 213 minutes in the second quarter of the prior year.
Gross paging and data activations were 32,300, up 8,900 or 38.0%,
compared to the second quarter of the prior year. At June 30, 1999, Wireless
had a total of 270,500 paging and data customers, an increase of 10,800 since
March 31, 1999. The average monthly churn rate for paging was 2.72%, versus
3.23% in the second quarter of 1998.
Cablesystems
Cablesystems revenue was $279.1 million, an increase of $24.9 million, or
9.8% from $254.2 million reported in the second quarter of the prior year.
Operating income before depreciation and amortization was $103.3 million, an
increase of $3.1 million or 3.0% from $100.2 million in the second quarter of
the prior year.
The gain in Cablesystems revenue reflects higher revenue in core cable TV
operations. The revenue increase in core cable TV operations is due primarily
to improved penetration of the higher revenue tier III service and the effect
of tier and basic rate increases in March 1998 and 1999 respectively.
Cablesystems revenue also increased due to increases in Video Store revenue
and the inclusion of revenue from Rogers@Home service. The results of the
Rogers@Home division were deferred due to the early stage of its
development in prior years.
At June 30, 1999 approximately 87.0% of basic cable service customers
also subscribed to tier services. The tier penetration breakdown at June 30th,
1999 is as follows: 12.3% subscribed to tier I, 20.8% subscribed to tier II,
and 54.0% subscribed to tier III. At June 30, 1998 the tier penetration
breakdown between tiers I, II and III was 17.2%, 32.9% and 37.1% respectively.
At June 30, 1999, Cablesystems had 2,225,200 basic cable customers, a decline
of approximately 11,400 in the quarter, compared to a decline of 11,600 in the
second quarter of the prior year. The Company believes these customer figures
compare favorably considering the level of competition now in the market. At
June 30th, 1999 Cablesystems had approximately 167,000 VIP Cable customers.
Cablesystems continues to report solid operating profit and margins in
its core cable TV business. In the second quarter the core cable TV operating
profit was up 5.4% and the operating margin was 44.8%, compared to 45.3% in
the second quarter of the prior year.
During the second quarter, Cablesystems added approximately 24,500
Rogers@Home customers, ending the quarter with 100,500 customers. At June
30, 1999, Cablesystems was able to market its high-speed Internet access
service to approximately 2.5 million homes.
Video Stores reported revenue of $37.6 million, an increase of $3.1
million or 8.8% from $34.5 million reported in the second quarter of the prior
year. This increase is primarily due to the increase in the number of stores
and improvements in same store rental revenue. Video Stores ended the quarter
with a total of 216 stores, as compared to 201 stores at June 30, 1998.
Media
Media reported revenue of $150.3 million, an increase of $10.4 million or
7.5% from $139.9 million in the second quarter of 1998. Operating income
before depreciation and amortization was $21.9 million, a decrease of $3.0
million or 11.9% from $24.9 million in the second quarter of the prior year.
Publishing revenue and operating income declined compared to the second
quarter of the prior year, reflecting competitive advertising markets for many
consumer titles. During the second quarter, the Canadian and United States
governments reached an agreement to allow foreign publishers access to the
Canadian advertising market under certain conditions and with some
restrictions. While this agreement was not supported by the Company or the
Canadian magazine publishing industry, Rogers is confident that, with its
market-leading titles, Publishing is well positioned to implement strategies
that will enable it to prosper in the potentially more competitive
environment.
Radio and Television Broadcasting revenue increased over the second
quarter of the prior year driven by strong growth at CFMT-TV. CFMT-TV is
benefiting from strong ratings in an equally strong advertising market, as
well as tightly controlled costs. Revenue growth continues at The Shopping
Channel, with revenue up 31.6% compared to the second quarter of 1998,
primarily driven by significant increases in unit volume.
Liquidity and Capital Resources
Cash flow from operating activities increased to $111.3 million from
$50.2 million in the second quarter of 1998. RCI's operating cash flow
shortfall (defined as cash flow from operating activities after working
capital, capital expenditures and preferred share dividends) was $83.3 million
in the second quarter of 1999.
At June 30, 1999, RCI's total long-term debt (net of cash) was $5.069
billion, a decline of $185.0 million from the levels reported at December 31,
1998. RCI's capital expenditures for the quarter were $177.4 million net of a
$4.6 million sale of real estate assets, compared to $169.0 million in the
second quarter of the prior year.
As a result of an RCI notice of redemption dated April 23, 1999, during
the second quarter Cdn$198.7 million of RCI's 7.5% Convertible Subordinate
Debentures were converted into approximately 9.6 million Class B Non-Voting
Shares and the remaining $0.7 million of Convertible Debentures were redeemed
by RCI for cash.
During the second quarter, RCI sold shares of At Home Corporation and
Bid.com for a gain on sale of approximately $67.0 million.
CONSOLIDATED RESULTS - SIX MONTHS 1999 VS. SIX MONTHS 1998
In the first half of the year, consolidated revenue was $1,463.8 million,
an increase of $70.1 million or 5.0% from $1,393.7 million in the prior year
period. Consolidated operating income before depreciation and amortization was
$428.7 million, an increase of $5.5 million or 1.3% from $423.2 million in the
first half of 1998.
RCI's reported net income of $87.6 million in the first half of 1999, or
42 cents per share (after preferred dividends), compared to net income of
$664.5 million, or $3.53 per share (after preferred dividends) in the first
six months of the prior year. Excluding non-recurring items, RCI reported a
loss of $95.5 million in the first half of 1999, or 59 cents per share (after
preferred dividends) compared to a loss of $103.8 million, or 66 cents per
share (after preferred dividends) in the first six months of the prior year.
Year 2000 Readiness
In 1997, Rogers instituted a multi-phase programme to address all known
issues of year 2000 readiness in recognition of the potential material impact
on its ability to conduct business. This programme reports to Ronan McGrath,
President, Rogers Shared Services and Chief Information Officer. Status is
reported bi-weekly to a senior management Steering Committee, with regular
updates to the Audit Committee of the Board of Directors.
Rogers substantially completed its year 2000 remediation activities at
the end of 1998. At the beginning of July 1999, Rogers had completed 97% of
the project milestones for this critical remediation and implementation phase
of the year 2000 programme. Some minor effort is planned through to August
1999 to complete implementation of certain compliant solutions.
In the final phase of the year 2000 programme, Rogers will maintain its
year 2000 ready status through implementation of "clean management" or
change control processes that ensure year 2000 ready systems remain compliant
throughout the year. This final phase of the programme also included the
development of detailed contingency and business continuity plans. Validation
of these contingency and business continuity plans is under way with a
targeted completion of October 1999. Sufficient qualified personnel are
available to complete the year 2000 programme.
Rogers expenditures for its year 2000 readiness programme were
approximately $23 million in 1998 and $7 million through June 1999, bringing
cumulative expenditures to approximately $37 million since 1997, compared to a
total programme budget of $57 million extending into the year 2000. These
expenditures are to be capitalized to the extent that they enhance the
capabilities and useful life of the underlying systems. The funds required are
provided through Rogers' cashflow and lines of credit. No material non-year
2000 projects have been cancelled, deferred or accelerated as a result of the
year 2000 effort.
Rogers is also implementing an upgraded internal personal computer
platform that will encompass a year 2000 ready solution for the desktop. This
implementation is underway and on target to be completed in July 1999.
Rogers' progress to date, and plans for 1999, indicate that Rogers is
well positioned internally to be year 2000 ready in advance of December 31,
1999. The impact of the year 2000 issue on Rogers depends on the year 2000
readiness of third parties such as vendors, suppliers, customers, financial
institutions and government agencies worldwide.
At this time, Rogers cannot determine the potential impact caused by
third party infrastructure issues which may include lost revenue and an
erosion of its customer base. Rogers' final phase of contingency planning
includes addressing this third party impact on its operations. Because of the
uncertainty surrounding the year 2000 readiness of third parties and not
withstanding the steps taken by Rogers, there cannot be total assurance that
uncertainties with the year 2000 issue will not materially and adversely
affect Rogers' business operations and its customers.
Rogers provides a monthly update of its year 2000 programme status and
progress on its Internet Web site www.rogers.com.
About Rogers
Rogers Communications Inc. (Toronto: RCI.A and RCI.B; NYSE:RG) is
Canada's national communications company engaged in cellular and Digital PCS
communications through its 81% owned subsidiary Cantel Mobile
Communications Inc., in cable television, high-speed Internet access, and
video retailing through its wholly-owned subsidiary Rogers Cablesystems
Limited, and in radio and television broadcasting, publishing and new media
businesses through its wholly-owned subsidiary Rogers Media Inc.
(see attached financial tables)
Consolidated Statements of Income
(in thousands of dollars except per share data)
|
Three Months Ended June 30 |
Six Months Ended June 30 |
| |
1999 (Unaudited) |
1998 (Unaudited) |
1999 (Unaudited) |
1998 (Unaudited) |
| Revenue |
| Wireless |
$ 325,114 |
$ 306,167 |
$ 621,339 |
$ 603,230 |
| Cablesystems |
279,061 |
254,255 |
553,668 |
502,644 |
| Media |
150,322 |
139,852 |
288,788 |
256,683 |
| Telecom |
- |
15,556 |
- |
31,103 |
|
$ 754,497 |
$ 715,800 |
$ 1,463,795 |
$ 1,393,660 |
|
|
|
|
Operating income before depreciation and amortization:
|
| Wireless |
$ 108,342 |
$ 105,427 |
$ 202,493 |
$ 193,969 |
| Cablesystems |
103,266 |
100,211 |
201,978 |
194,041 |
| Media |
21,898 |
24,867 |
33,728 |
33,722 |
| Telecom |
- |
6,646 |
- |
12,659 |
| Corporate |
(3,939) |
(6,134) |
(9,538) |
(11,155) |
|
|
|
|
229,567 |
231,017 |
428,661 |
423,236 |
| |
| Depreciation and amortization |
145,285 |
142,172 |
286,024 |
279,791 |
|
|
|
| |
| Operating income |
84,282 |
85,845 |
142,637 |
143,445 |
| Interest expense |
(118,159) |
(136,843) |
(242,069) |
(267,609) |
| Gain on sale of assets and other investments |
66,989 |
23,799 |
156,170 |
64,661 |
| Investment and other income |
953 |
2,444 |
33,080 |
7,180 |
|
|
|
| |
| Income before income taxes |
34,065 |
657,138 |
89,818 |
629,570 |
Income taxes (recovery) |
6,581 |
6,209 |
(2,226) |
14,913 |
|
|
|
| |
| Net income for the period |
$ 40,646 |
$ 663,347 |
$ 87,592 |
$644,483 |
|
|
|
| |
| Earnings per share |
| Basic |
| Net income for the period |
$ 0.19 |
$ 3.68 |
$ 0.42 |
$ 3.53 |
| Fully Diluted |
| Net income for the period |
$ 0.18 |
$ 3.11 |
$ 0.39 |
$ 3.02 |
| Weighted Average Class A and Class B |
| Shares outstanding for the period (thousands) |
181,302 |
178,542 |
181,302 |
178,542 |
|
|
|
Consolidated Statements of Cash Flows
(in thousands of dollars except per share data)
|
Three Months Ended June 30 |
Six Months Ended June 30 |
| |
1999 (Unaudited) |
1998 (Unaudited) |
1999 (Unaudited) |
1998 (Unaudited) |
| Cash flows from operating activities: |
| Net income for the period |
$ 40,646 |
$ 663,347 |
$ 87,592 |
$ 644,483 |
| Adjustments to reconcile net income to net cash flow: |
| Depreciation and amortization |
145,285 |
145,172 |
286,024 |
279,791 |
| Deferred income tax reduction |
(9,216) |
(9,032) |
(2,556) |
(20,852) |
| Accrued interest due (paid) on repayment of certain notes |
2,112 |
(43,925) |
4,244 |
(39,471) |
| Gain on sale of assets and other investments |
(66,989) |
(727,363) |
(156,170) |
(768,225) |
| Share of income of associated companies, net |
(704) |
56 |
(1,759) |
(116) |
| Dividends from associated companies |
190 |
247 |
707 |
1,095 |
|
|
|
|
111,324 |
50,173 |
218,082 |
118,376 |
| Changes in: |
| Accounts Receivable |
3,109 |
2,531 |
17,509 |
45,393 |
| Accounts payable, accrued liabilities and unearned revenue |
(31,914) |
(36,795) |
(89,400) |
(82,326) |
| Deferred charges and other assets |
17,330 |
6,211 |
(32,371) |
(26,144) |
|
|
|
| |
99,849 |
22,120 |
113,820 |
55,299 |
| Cash flows from financing activities: |
| Issue (repayment) of long-term debt, net |
39,317 |
(393,373) |
106,220 |
(352,994) |
| Financing costs incurred |
- |
- |
- |
(371) |
| Issue of capital stock, net |
1,075 |
246 |
3,295 |
246 |
| Dividends on preferred shares |
(5,720) |
(7,389) |
(11,564) |
(14,637) |
|
|
|
| |
34,672 |
(400,516) |
97,951 |
(367,756) |
| Cash flows from investing activities: |
| Additions to fixed assets |
(177,383) |
(169,017) |
(340,987) |
(303,124) |
| Proceeds on sale of assets and other investments |
67,758 |
44,307 |
157,198 |
137,364 |
| Other investments |
(14,591) |
985 |
(54,177) |
12,132 |
|
|
|
| |
(124,216) |
476,275 |
(237,966) |
446,372 |
|
|
|
| Increase (decrease) in cash and cash equivalents |
10,305 |
97,879 |
(26,195) |
133,915 |
| Cash and cash equivalents, beginning of period |
(37,883) |
24,737 |
(1,383) |
(11,299) |
|
|
|
| |
| Cash and cash equivalents, end of period |
$ (27,578) |
$ 122,616 |
$ (27,578) |
$ 122,616 |
| Cash and cash equivalents are defined as cash and short-term deposits less operating bank loans and bank advances. |
Rogers Communications Inc. Segmented Information
Six months ended June 30, 1999
(in thousands of dollars)
| |
Wireless |
Cable |
Media |
Corporate items and eliminations |
Consolidated Totals |
| (Unaudited) |
| Revenue |
$621,339 |
$553,668 |
$288,788 |
- |
$1,463,795 |
| Operating, general and administrative expenses |
418,846 |
351,690 |
255,060 |
9,538 |
1,035,134 |
|
|
|
|
|
|
| Operating income (loss) before the undernoted: |
202,493 |
201,978 |
33,728 |
(9,538) |
428,661 |
| Management fees |
4,926 |
11,167 |
4,418 |
(20,511) |
- |
| Depreciation and amortization |
139,803 |
126,873 |
8,238 |
11,110 |
286,024 |
|
|
|
|
|
|
| Operating income |
57,764 |
63,938 |
21,072 |
(137) |
142,637 |
| Interest Expense: |
| Third party |
84,140 |
100,854 |
396 |
56,679 |
242,069 |
| Intercompany |
9,053 |
32,457 |
1,537 |
(43,047) |
- |
| |
| Gain on sale of assets and investments |
- |
(88,469) |
(15,535) |
(52,166) |
(156,170) |
| Other items, net |
(95) |
(162) |
(27,128) |
(5,695) |
(33,080) |
| Income tax expense (recovery) |
2,264 |
1,664 |
(1,912) |
210 |
2,226 |
|
|
|
|
|
|
| Net Income (loss) for the period |
$(37,598) |
$17,594 |
$63,714 |
$43,882 |
$87,592 |
|
|
|
|
|
|
| Capital expenditures, net |
$169,495 |
$171,762 |
$4,043 |
$(4,313) |
$340,987 |
|
|
|
|
|
|
| Identifiable assets |
$2,028,317 |
$2,672,172 |
$419,165 |
$1,323,497 |
$6,443,151 |
|
|
|
|
|
|
Rogers Communications Inc. Segmented Information
Six months ended June 30, 1998
(in thousands of dollars)
| |
Wireless |
Cable |
Media |
Corporate items and eliminations |
Consolidated Totals |
| (Unaudited) |
| Revenue |
$603,230 |
$502,644 |
$256,683 |
$31,103 |
$1,393,660 |
| Operating, general and administrative expenses |
409,261 |
308,603 |
222,961 |
29,599 |
970,424 |
|
|
|
|
|
|
| Operating income before the undernoted: |
193,969 |
194,041 |
33,722 |
1,504 |
423,236 |
| Management fees |
4,760 |
9,985 |
3,882 |
(18,627) |
- |
| Depreciation and amortization |
127,646 |
121,984 |
7,401 |
22,760 |
279,791 |
|
|
|
|
|
|
| Operating income |
61,563 |
62,072 |
22,439 |
(2,629) |
143,445 |
| Interest Expense: |
| Third party |
82,800 |
115,459 |
27 |
69,323 |
267,609 |
| Intercompany |
5,944 |
(9,663) |
9,325 |
(5,606) |
- |
| |
| Gain on sale of assets and investments |
- |
(34,522) |
(30,139) |
(703,564) |
(768,225) |
| Other items, net |
545 |
1,895 |
339 |
11,712 |
14,491 |
| Income tax expense (recovery) |
2,264 |
(17,569) |
1,375 |
(983) |
(14,913) |
|
|
|
|
|
|
| Net Income (loss) for the period |
$(29,990) |
$6,472 |
$41,512 |
$626,489 |
$644,483 |
|
|
|
|
|
|
| Capital expenditures, net |
$146,538 |
$114,606 |
$3,839 |
$38,141 |
$303,124 |
|
|
|
|
|
|
Rogers Communications Inc. Segmented Information
Three months ended June 30, 1999
(in thousands of dollars)
| |
Wireless |
Cable |
Media |
Corporate items and eliminations |
Consolidated Totals |
| (Unaudited) |
| Revenue |
$325,114 |
$279,061 |
$150,322 |
- |
$754,497 |
| Operating, general and administrative expenses |
216,772 |
175,795 |
128,424 |
3,939 |
524,930 |
|
|
|
|
|
|
| Operating income (loss) before the undernoted: |
108,342 |
103,266 |
21,898 |
(3,939) |
229,567 |
| Management fees |
2,463 |
5,643 |
2,311 |
(10,417) |
- |
| Depreciation and amortization |
71,304 |
64,592 |
4,121 |
5,268 |
145,285 |
|
|
|
|
|
|
| Operating income |
34,575 |
33,031 |
15,466 |
1,210 |
84,282 |
| Interest Expense: |
| Third party |
42,319 |
50,228 |
78 |
25,534 |
118,159 |
| Intercompany |
4,446 |
17,150 |
940 |
(22,536) |
- |
| |
| Gain on sale of assets and investments |
- |
- |
(14,823) |
(52,166) |
(66,989) |
| Other items, net |
(108) |
1,192 |
(130) |
(1,907) |
(953) |
| Income tax expense (recovery) |
1,132 |
890 |
851 |
(9,454) |
(6,581) |
|
|
|
|
|
|
| Net Income (loss) for the period |
$(13,214) |
$(36,429) |
$28,550 |
$61,739 |
$40,646 |
|
|
|
|
|
|
| Capital expenditures, net |
$80,656 |
$98,865 |
$2,233 |
$(4,371) |
$177,383 |
|
|
|
|
|
|
Rogers Communications Inc. Segmented Information
Three months ended June 30, 1998
(in thousands of dollars)
| |
Wireless |
Cable |
Media |
Corporate items and eliminations |
Consolidated Totals |
| (Unaudited) |
| Revenue |
$306,167 |
$254,225 |
$139,852 |
$15,556 |
$715,800 |
| Operating, general and administrative expenses |
200,740 |
154,014 |
114,985 |
15,044 |
484,783 |
|
|
|
|
|
|
| Operating income before the undernoted: |
105,427 |
100,211 |
24,867 |
512 |
231,017 |
| Management fees |
2,380 |
4,991 |
2,109 |
(9,480) |
- |
| Depreciation and amortization |
65,138 |
64,432 |
3,671 |
11,931 |
145,172 |
|
|
|
|
|
|
| Operating income |
37,909 |
30,788 |
19,087 |
(1,939) |
85,845 |
| Interest Expense: |
| Third party |
43,700 |
58,150 |
27 |
34,966 |
136,843 |
| Intercompany |
2,841 |
(4,096) |
4,709 |
(3,454) |
- |
| |
| Gain on sale of assets and investments |
- |
(24,347) |
548 |
(703,564) |
(727,363) |
| Other items, net |
527 |
2,004 |
360 |
16,336 |
19,227 |
| Income tax expense (recovery) |
1,132 |
(3,585) |
580 |
(4,336) |
(6,209) |
|
|
|
|
|
|
| Net Income (loss) for the period |
$(10,291) |
$2,662 |
$12,863 |
$658,113 |
$663,347 |
|
|
|
|
|
|
| Capital expenditures, net |
$81,458 |
$65,892 |
$1,813 |
$19,854 |
$169,017 |
|
|
|
|
|
|
Balance Sheets
(in thousands of dollars)
| |
June 30, 1999 (Unaudited) |
December 31, 1998 (Unaudited) |
| Assets |
| Fixed assets |
$ 3,311,552 |
$ 3,234,634 |
| Subscribers and licences |
1,332,052 |
1,342,360 |
| Goodwill |
196,627 |
190,514 |
| Investments |
748,775 |
674,615 |
| Accounts receivable |
283,932 |
300,681 |
| Deferred charges |
325,923 |
436,314 |
| Other assets |
244,920 |
205,735 |
|
|
|
| |
$ 6,443,151 |
$ 6,384,853 |
| Liabilities and Shareholders' Equity (Deficiency) |
| Liabilities: |
| Long-term debt |
$ 5,069,057 |
$ 5,254,044 |
| Bank advances |
27,578 |
1,383 |
| Accounts payable and accrued liabilities |
860,341 |
957,796 |
| Unearned revenue |
115,008 |
100,718 |
| Deferred income taxes |
109,937 |
112,437 |
|
|
|
| |
6,181,921 |
6,426,378 |
| Shareholders' equity (deficiency) |
261,230 |
(41,525) |
|
|
|
| |
$ 6,443,151 |
$ 6,384,853 |
This news release may include certain forward-looking statements that
involve risks and uncertainties. The Company cautions that actual future
performance will be affected by a number of factors, including technological
change, regulatory change, and competitive factors many of which are beyond
the Company's control. Therefore future events and results may vary
substantially from what the Company currently foresees. Additional information
identifying risks and uncertainties is contained in the Company's most recent
Annual Information Form filed with the Ontario Securities Commission.
For more information contact:
David A. Robinson
Vice President, Financial Planning and Investor Relations
Rogers Communications Inc.
Phone: (416) 935-3550
Fax: (416) 935-3597
|
Richard J. Harvey
Director, Investor Relations
Rogers Communications Inc.
Phone: (416) 935-3552
Fax: (416) 935-3597
|
|
|
|
|