Shaw Communications Inc.
) declared mixed financial results for the fourth quarter of
fiscal 2013. The company currently has a Zacks Rank #2 (Buy) and
it competes aggressively with other Canadian telecom and cable
MSOs, such as
Rogers Communications Inc.
GAAP net income from continuing operations was $112.3 million,
down 12% year over year. Earnings per share were 23 cents, down
14.3 % year over year and significantly below the Zacks Consensus
Estimate of 32 cents. Quarterly total revenue climbed 3% year
over year to approximately $1,196.2 million, marginally above the
Zacks Consensus Estimate of $1,193 million.
Quarterly operating income before amortization was around
$476.2 million, down 1% from the year-ago quarter. Quarterly
operating margin stood at 39.8% against 41.4% in the prior-year
quarter. In the fourth quarter of fiscal 2013, Shaw
Communications generated around $412 million of cash from
operations, up 20.8% year over year. Free cash flow was $205.5
million, down 22.7% year over year.
At the end of fiscal 2013, Shaw Communications had cash and
marketable securities of $405 million and outstanding debt of
$4,625.3 million compared with $435.5 million and $4,908.2
million, respectively, at the end of fiscal 2012. The
debt-to-capitalization ratio at the end of fiscal 2013 was 0.47
compared with 0.54 at the end of fiscal 2012.
As of Aug 31, 2013, the Video customer base was 2,040,247,
reflecting a net reduction of 29,522 customers in the reported
quarter. With the addition of 10,564 customers in this quarter,
the company's Internet customer base stands at 1,890,506. Digital
phone lines were 1,359,960, reflecting a year-over-year net
addition of 4,722 lines. The DTH customer base was 903,565,
representing a quarterly net reduction of 835 customers.
Quarterly revenues were $785.3 million, up 1.9% year over
year. Quarterly operating income before amortization was $380.2
million, remaining same year over year.
Quarterly total revenue of $210.2 million was up 2.8% year
over year. The segment's quarterly operating income before
amortization was $63.4 million, down 14.3% from the year-ago
Quarterly total revenue was $221.8 million, up 6.5% year over
year. Operating income before amortization was $32.7 million, up
21.4% year over year.
For fiscal 2014, management expects both total revenue and
operating income before amortization to grow 2%-4% year over
year. Free cash flow is expected to range from $625 million to
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