Shaw Communications Inc.
) declared mixed financial results for the third quarter of
fiscal 2013. However, the company raised its guidance for fiscal
2013. Free cash flow for fiscal 2013 is now expected to be $568
million - $577 million.
GAAP net income from continuing operations was $240.4 million,
up 0.8% year over year. Net earnings per share were 50 cents,
down 1.9%, but significantly ahead of the Zacks Consensus
Estimate of 43 cents. Quarterly total revenue climbed 3.8% year
over year to approximately $1,275 million but lagged the Zacks
Consensus Estimate of $1,292 million.
Quarterly operating income before amortization was around
$562.5 million, up 3.2% year over year. Quarterly operating
margin stood at 44.1% compared with 44.4% in the prior-year
quarter. In the third quarter of fiscal 2013, Shaw Communications
generated around $395.2 million of cash from operations, up 17.4%
year over year. Free cash flow in the reported quarter was $169.2
million, down 9.7% year over year.
At the end of the third quarter of fiscal 2013, Shaw
Communications had cash and marketable securities of $345.2
million compared with $435.5 million at the end of fiscal 2012.
At the end of the reported quarter, Shaw Communications had
$4,630.8 million in outstanding debt compared with $4,908.2
million at the end of fiscal 2012. The debt-to-capitalization
ratio at the end of the third quarter of fiscal 2013 was 0.50
compared with 0.54 at the end of fiscal 2012.
As of May 31, 2013, the Video customer base was 2,069,769,
reflecting a net reduction of 26,578 customers from the year-ago
quarter. The Internet customer base stood at 1,879,942,
reflecting quarterly net addition of 4,157 customers. Digital
phone lines were 1,355,238, reflecting a year-over-year net
addition of 17,719 lines. The DTH customer base was 904,400,
representing a quarterly net reduction of 2,930 customers.
Quarterly revenues were $793.3 million, up 3.9% year over
year. Strong revenue growth was attributed to subscriber addition
and rate increases. Quarterly operating income before
amortization was $381.7 million, up 5.3% year over year.
Quarterly total revenue of $209.6 million was up 3.3% year
over year. The segment's quarterly operating income before
amortization was $69.2 million, down 5.3% from the year-ago
Quarterly total revenue was $295.2 million, up 4.1% year over
year. Operating income before amortization was $111.5 million, up
1.8% year over year.
Other Stocks to Consider
Shaw Communications, which closely competes with
), currently has a Zacks Rank #3 (Hold). Other stocks in
the North American cable TV industry, which are doing well
Time Warner Cable Inc.
). Both these stocks carry a Zacks Rank #2 (Buy).
COMCAST CORP A (CMCSA): Free Stock Analysis
SHAW COMMS-CL B (SJR): Free Stock Analysis
TELUS CORP (TU): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
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