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Aliant reports first quarter results
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Location: Blogs News |
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| Posted by: ITNovaScotia Admin |
Tuesday, May 02, 2006 |
ATLANTIC CANADA, May 2 /CNW/ - Aliant Inc. (TSX: AIT) today announced its
financial results for the three month period ended March 31, 2006.
Consolidated revenues were up 3.9 per cent and operating income showed growth
of 11.1 per cent compared to the same quarter last year as the company's
productivity initiatives contained operating expense growth. A non-cash loss
for accounting purposes regarding hedging instruments resulted in an $8.3
million after-tax charge in the quarter, reducing net income to $40.2 million,
a 7.8 per cent decrease from the first quarter of 2005. Earnings per share for
the quarter were $0.30, down $0.01 over the same period last year. Cash
generated from operations was $99.7 million for the first quarter of 2006.
"Our focus on growth and transformation allowed us to post solid revenue
gains while realizing significant productivity savings throughout the
organization. The combination of the two, in turn, allowed us to post a
strong, double digit increase in operating income for the quarter," said Jay
Forbes, Aliant President and CEO. "Further, the strength of the underlying
cash flows in the Aliant wireline operations bodes well for creating steady
distributable cash flow for the new Bell Aliant Regional Communications Income
Fund."
Revenue growth in the telecommunications segment was up 3.2 per cent
compared to the same quarter last year. Internet revenues for the quarter grew
20.7 per cent, which were driven by year-over-year high-speed Internet
customer growth of 39.7 per cent and a steady migration of dial customers to
high-speed service. Wireless revenues for the quarter grew 14.3 per cent year-
over-year, as the customer base grew 12.9 per cent and net activations were up
83.2 per cent to 16,850 from the same quarter last year. Total revenues from
the information technology segment were flat year over year reflecting a
decline in internally generated revenues and 7.8 per cent growth in external
revenues.
Growth in Aliant's $359.6 million of consolidated expenses (excluding
cost of operating revenues) was limited to 1.4 per cent over the same period
last year illustrating the impact of our productivity initiatives. The cost of
operating revenues rose 7.2 per cent for the quarter compared to 2005, in
tandem with the growth in related product sales.
<<
First Quarter Financial Highlights Three months ended March 31
($ millions except per share amounts)
2006 2005 % change
Total operating revenue $544.9 $524.4 3.9%
Operating income $96.3 $86.7 11.1%
Net Income $40.2 $43.6 -7.8%
Earnings per share $0.30 $0.31 -3.2%
Weighted average common shares
outstanding 127.2 132.3 -3.9%
Aliant's Board of Directors declared a common share dividend of $0.31 per
common share, payable on June 30, 2006 to shareholders of record on June 15,
2006. Aliant's Board also declared a preferred share dividend of $0.340625 per
preferred share payable on June 30, 2006 to shareholders of record on June 15,
2006.
At a shareholders' meeting to be held in St. John's, NL on May 17, 2006
Aliant shareholders will be asked to approve an arrangement to combine
Aliant's wireline telecommunications and other related operations in Atlantic
Canada with Bell Canada's wireline telecommunications operations in its
regional territories in Ontario and Quebec and its indirect 63.4 per cent
interest in the Bell Nordiq Partnership to form a new income fund, Bell Aliant
Regional Communications Income Fund. As part of the transaction Bell Canada
will acquire Aliant's wireless telecommunications operations and its ownership
interest in DownEast Ltd. Details regarding this transaction are set out in a
Management Information Circular dated April 14, 2006 which has been mailed to
shareholders and can be accessed on the SEDAR website at www.sedar.com. The
financial information discussed in this News Release relates to Aliant's
current operations. Actual results of Bell Aliant Regional Communications
Income Fund are expected to differ materially from the financial results of
Aliant described in this News Release.
About Aliant
Aliant serves customers across Atlantic Canada with innovative and
traditional communications services, including local and long distance
telephony, wireless, Internet, e-commerce, interactive multimedia, data and
managed network services. In addition to serving residential, small-to-medium
sized business and enterprise customers in its home market, Aliant also serves
business customers located in other parts of North America. Aliant complements
its industry-leading telecommunications business with strengths in information
technology solutions and knowledge-services applications. Aliant's
approximately 8,400 employees build on its 100-plus year history by
collaborating to deliver the highest quality of customer service, choice and
convenience. Aliant has a market capitalization of approximately $4.5 billion.
Analyst conference call
There will not be a conference call with investment analysts this quarter
as management will be conducting a road show with financial analysts and
retail and institutional investor representatives in connection with the
pending conversion of Aliant shares into units in the Bell Aliant Regional
Communications Income Fund. As well, management is preparing for the Annual
Meeting of shareholders that will take place on May 17, 2006.
Forward-looking Statements
This news release contains forward-looking statements concerning
anticipated future events, results, circumstances or expectations. These
statements are based on management's beliefs regarding future events, many of
which, by their nature are inherently uncertain and beyond management's
control. These statements are not guarantees of future performance and are
subject to numerous risks and uncertainties which are difficult to predict and
assumptions which may prove to be inaccurate. Some of the factors that could
cause results or events to differ materially from current expectations include
but are not limited to: general economic conditions; stock market volatility;
market or business conditions; the changing competitive environment; changing
regulatory conditions or requirements; changing technology; changing discount
rates and market returns on pension plan investments; and the ability to
complete the proposed income trust arrangement and integrate the separate
components of the combined business. Please refer to Aliant's Management
Information Circular dated April 14, 2006 (Forward-Looking Information on page
39) for a discussion of the key assumptions and risk factors relating to the
proposed income trust arrangement. Readers should not place undue reliance on
any forward-looking statements.
>>
For further information: Media Relations: Kelly Gallant, (902) 487-4642,
kelly.gallant@aliant.ca; Investor Relations: Ian Chadsey, (506) 694-2220,
ian.chadsey@aliant.ca;
Archived images on this organization are searchable through CNW Photo Archive
website at http://photos.newswire.ca. Images are free to accredited members of
the media. |
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