SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant
to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of: February 2006 | Commission
File Number: 1-8481 |
BCE
Inc.
(Translation of Registrants name into English)
1000,
rue de La Gauchetière Ouest, Bureau 3700, Montréal, Québec
H3B 4Y7, (514) 870-8777
(Address of principal executive offices)
Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F | Form 40-F | X
|
Indicate by check mark whether the Registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes | No | X
|
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Notwithstanding any reference to BCEs Web site on the World Wide Web in the documents attached hereto, the information contained in BCEs site or any other site on the World Wide Web referred to in BCEs site is not a part of this Form 6-K and, therefore, is not filed with the Securities and Exchange Commission.
CONTENTS | ||
The Year in Review | 2 | |
The Quarter at a Glance | 6 | |
Supplementary Financial Information | 20 | |
32 |
The Year in Review
|
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The results
for 2005 demonstrate solid progress on our strategic objectives. Although
the pace of competition accelerated steadily throughout the year, particularly
as a result of the emergence of cable telephony, we continued to execute
on our plan to mitigate the impact of this new, more competitive telecommunications
landscape. Accordingly, we focused further on profitably growing our wireless,
video and high-speed Internet businesses, which helps lay an important
foundation for the future growth of the company. We also continued to
successfully execute on our multi-product household consumer strategy.
By the end of 2005, nearly 60% of the households in our Ontario and Québec
footprint subscribed to two or more products, and over 22% subscribed
to three or more products. Our Business segment made steady progress throughout
the year on its Internet Protocol (IP) strategy by leading Bell Canada
in the shift towards new growth services, helping to drive its transition
to an Information and Communications Technology (ICT) leader. In fact,
revenues from growth services (composed mainly of wireless, video and
data-related products such as high-speed Internet) accounted for 47% of
total revenues at Bell Canada by the end of 2005, which exceeded
our target of 45% for the year. Moreover, we also responded to the rising
competitive challenges by proactively taking the lead to deliver unmatched
features and reliability for our residential and business customers with
the launch of next-generation services such as Bell Digital Voice. |
2 Bell Canada Enterprises Q4 Investor Briefing
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strong year, reflecting growth in Ka-band revenues on its Anik F2 satellite, revenue gains from the installation and maintenance of an Interactive Distance Learning network and the positive impact from its acquisition of The Space-Connection, Inc. (SpaceConnection) in January 2005.
Customer Connections |
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Connections |
2005 | 31 Dec. 05 | ||||
(in thousands) |
Net Activations | Connections | ||||
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||||||
Wireless |
516 | 5,441 | ||||
High-Speed Internet |
387 | 2,195 | ||||
Video |
224 | 1,727 | ||||
NAS |
(324 | ) | 12,581 | |||
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Operating Revenues Our revenues increased by 4.0% year-over-year to reach $19,105 million in 2005. This result, which reflected improved revenue performance across all our segments, surpassed our target growth rate of equal to or greater than GDP. At Bell Canada, revenues grew by 2.8%, driven primarily by the Business segment where continued wireless strength, growth of ICT (or VAS) solution sales arising from both business acquisitions and organic growth, as well as focused execution of our Virtual Chief Information Officer (VCIO) strategy in SMB led to improved top-line results. Our Residential segment delivered solid revenue growth as a result of the performance of its video, Internet and wireless services, despite continued decreases in legacy wireline services, while Aliant revenues also increased notably due in part to its recovery from a labour disruption in 2004. In addition to the Bell Canada contribution, overall growth was further enhanced by the performance in the Other BCE segment, where revenues grew 9.5% at Bell Globemedia and 31% at Telesat. Operating Income and EBITDA1 Operating income at BCE for 2005 was $4,048 million, an increase of $1,154 million over the previous year, which included restructuring and other charges of $1,224 million related primarily to the employee departure program in 2004. The results for 2005 reflect restructuring and other items of $55 million associated with new restructuring initiatives for involuntary employee departures, as well as the relocation of employees and closing of real estate facilities related to last years employee departure program. Operating income before restructuring and other items1
|
(1) |
EBITDA, operating income before restructuring and other items, net earnings before restructuring and other items and net gains on investments, and free cash flow do not have any standardized meaning prescribed by Canadian generally accepted
accounting principles (GAAP) and are therefore unlikely to be comparable to similar measures presented by other companies. For more details on these measures, including a reconciliation to the most comparable GAAP measure, please refer to the
section entitled Non-GAAP Financial Measures contained herein. |
3 Bell Canada Enterprises Q4 Investor Briefing
The Year in Review
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decreased $15 million or 0.4% compared with the previous year. Despite an increase in revenues across all segments, Galileo cost savings and the recovery from the 2004 labour disruption at Aliant, operating income was negatively impacted by the
increased cost of acquiring a substantially higher number of wireless subscribers, the Canadian Radio-television and Telecommunications Commissions (CRTC) decision with respect to Competitor Digital Network Services (CDN), continued margin
pressure from the ongoing transformation of our product mix toward growth services, as well as the cost of restoring customer service levels following the settlement of the Entourage labour dispute in July. Also contributing to the decline in
operating income was the impact of higher net benefit plans cost and amortization expense for the year. Net Earnings / Earnings per Share (EPS) In 2005, net earnings applicable to common shares were $1,891 million, or $2.04 per common share, 24% higher than net earnings of $1,523 million, or $1.65 per common share, for the same period last year. Included in earnings this year was a net charge of $10 million from restructuring and other items and net gains on investments, compared with a net charge of $349 million for the same period last year. Net earnings before restructuring and other items and net gains on investments1 of $1,901 million, or $2.05 per common share, were up $29 million, or $0.03 per share. This represents an increase of 1.5% over last year, which was in line with our expectations of single-digit growth for 2005. On a year-to-date basis, the improvement in EPS before gains on investments and restructuring and other items can be attributed to higher EBITDA combined with the impact from the income tax loss monetization program between Bell Canada and BCI and net income tax savings. This more than offset the increase in net benefit plans cost and amortization expense. Capital ExpendituresFor the full year, capital expenditures of $3,428 million were $109 million, or 3.3%, higher than 2004. Similarly, at Bell Canada, capital expenditures increased by 3.2%, or $96 million, to $3,122 million. As a percentage of revenues, Bell Canadas capital expenditures increased slightly to 18.1% in 2005 from 18.0% last year, in line with our guidance range of 18% to 19% for 2005. Capital spending in 2005 reflected higher investment in the growth areas of the business and reduced expenditures in legacy areas. Our key strategic investments this year included the expansion of our fibre-to-the-node (FTTN) footprint to deliver higher-speed broadband access, our launch of Bell Digital Voice, the deployment of an Evolution, Data Optimized (EV-DO) wireless data network in certain of our markets, our Digital Subscriber Line (DSL) footprint expansion facilitated through the deployment of new high-density remotes, investment in our IP television (IPTV) platform and information technology (IT) efficiency projects to deliver cost savings. |
4 Bell Canada Enterprises Q4 Investor Briefing
Higher spending also resulted from a return to more normal spending levels at Aliant after its labour disruption in 2004 and satellite builds at Telesat. Cash from operating activities and free cash flow1 Cash from operating activities was $5,559 million in 2005, an increase of 2.1% compared to $5,443 million in 2004. Cash from operating activities was impacted positively by:
These improvements were partly offset by:
We generated $662 million of free cash flow for 2005, meeting our target of $600 million to $800 million for the year. On December 16, 2005, we adjusted our 2005 guidance for free cash flow from the range of $700 million to $900 million to $600 million to $800 million to reflect the pending sale of CGI. Free cash flow of $662 million for 2005 was $208 million lower than the $870 million achieved in the previous year. The decrease can be attributed to:
These items were offset in part by a $116 million increase in cash from operating activities. |
(1) |
EBITDA, operating income before restructuring and other items, net earnings before restructuring and other items and net gains on investments, and free cash flow do not have any standardized meaning prescribed by Canadian generally accepted
accounting principles (GAAP) and are therefore unlikely to be comparable to similar measures presented by other companies. For more details on these measures, including a reconciliation to the most comparable GAAP measure, please refer to the
section entitled Non-GAAP Financial Measures contained herein. |
5 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance
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In the fourth quarter, we regained momentum in the execution of our strategy as evidenced by our strong financial and operating performance. Our cost reduction program accelerated and we re-established consistent levels of customer service. Improved
operating performance in the quarter was driven primarily by the results of our Business and Aliant segments, as well as by the continuing successful execution of our wireless and video subscriber growth strategies, which offset the pressure on
operating income from the expected further erosion of our legacy voice and data business. This translated into overall revenue growth in Q4 2005 of 4.6% at BCE and 3.6% at Bell Canada. Revenues from our growth services continued to increase,
accounting for 47% of total revenues at Bell Canada at the end of 2005. Operating income before restructuring and other items improved by 6.6% at BCE and 6.3% at Bell Canada this quarter, despite higher expected acquisition costs from an increased
number of wireless gross activations and increasing wireline customer losses.
Customer Connections |
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Connections |
Q4 2005 | 31 Dec. 05 | ||||
(in thousands) |
Net Activations | Connections | ||||
|
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Wireless |
210 | 5,441 | ||||
High-Speed Internet |
61 | 2,195 | ||||
Video |
50 | 1,727 | ||||
NAS |
(122 | ) | 12,581 | |||
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6 Bell Canada Enterprises Q4 Investor Briefing
cable operators on selling multi-product bundles at discounted rates. This was offset partly by higher net additions at Aliant.
Our revenues increased by 4.6% year-over-year to reach $4,986 million in the quarter, reflecting improved revenue performance across most of our segments. At Bell Canada, revenues grew by 3.6%, driven primarily by the Business segment where higher data revenues from focused execution of our ICT and VCIO strategies and continued wireless strength positively impacted top-line results, and by Aliant where recovery from a labour disruption in 2004 and the solid performance of its wireless and Internet businesses translated into increased revenue growth. In our Residential segment, we delivered positive revenue growth in the quarter as the continued loss of legacy wireline business was more than offset by growth in video, Internet and wireless services. Higher revenues at our Other BCE segment, fuelled by stronger advertising and subscriber revenues at Bell Globemedia and higher carrier and broadcast revenue at Telesat combined with the positive impact from its acquisition of SpaceConnection, further contributed to overall revenue growth. Operating Income and EBITDA
Operating income at BCE for the quarter was $979 million, compared with $814 million for Q4 2004, while Bell Canada operating income increased to $884 million from $731 million for the same respective period. The results for Q4 2004 included the
recognition of $126 million of restructuring and other items related to last years employee departure program at Aliant and costs related to the relocation of employees and the closure of excess real estate facilities at Bell Canada, compared
with a charge of $23 million for Q4 2005 related to new restructuring initiatives for involuntary employee departures. Operating income before restructuring and other items for Q4 2005 increased by 6.6%, or $62 million, at BCE and by 6.3%, or $54
million, at Bell Canada, compared with the previous year. Higher revenues, cost savings from Galileo and lower cost of acquisition (COA) expense in our video unit more than offset continued margin pressure from the ongoing transformation of our
product mix towards growth services, the expected higher COA expense from an increased number of wireless gross activations, the CRTCs CDN decision and higher amortization expense at BCE. |
7 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance | ||
Net Earnings / Earnings per Share Net earnings applicable to common shares for Q4 2005 were $413 million, or $0.44 per common share, compared to net earnings of $417 million, or $0.45 per common share, for the same period last year. Included in Q4 earnings this year was a net charge of $16 million for restructuring and other items, compared with no charge in Q4 2004. Net earnings before restructuring and other items and net gains on investments for Q4 2005 were $429 million, or $0.46 per common share, up $12 million, or $0.01 per share. This increase can be attributed to higher EBITDA, partly offset by lower other income stemming from unfavourable changes in foreign exchange rates. We also recorded a gain of $44 million in the quarter associated with the phase-out, over the next three years, of a discretionary allowance program, which substantially offset the increase in pension expense. Capital ExpendituresCapital expenditures were $831 million this quarter, or 20% lower than the same period last year. As a percentage of revenues, capital expenditures decreased this quarter to 16.7% from 22% last year, reflecting a reduction at Bell Canada partly as a result of higher spending earlier in the year. Greater investment in IT systems and other efficiency-related processes to deliver future cost savings was more than offset by lower expenditures on network infrastructure and DSL footprint expansion, lower spending to support business customer contracts and the timing of spending on certain strategic initiatives such as our FTTN footprint expansion and IPTV platform development. Cash from operating activities and free cash flow In Q4 2005, cash from operating activities was $1,585 million, an increase of 24% compared with $1,279 million in Q4 2004. Cash from operating activities was impacted positively by:
These improvements were partly offset by lower accounts receivable collections in our wireless business during Q4 2005, compared with a higher-than-usual collection volume in Q4 2004 as a result of the implementation of our new wireless billing platform, notwithstanding a significant improvement year-over-year in days sales outstanding.
These items were offset in part by a $29 million increase in common dividends paid, resulting from the $0.03 quarterly increase in dividend per common share. Strategic PrioritiesOur strategy is to deliver unrivalled integrated communication services to customers and to take a leadership position in setting the standard in Internet Protocol (IP). During the quarter, we made significant progress on each of our three key strategic priorities. 1) Enhancing customer experience while targeting lower costs (our Galileo program) In our Residential segment:
|
8 Bell Canada Enterprises Q4 Investor Briefing
beginning of 2005. Simplification of the billing process not only improves the customer experience, but also lowers costs since we issue fewer invoices. During the fourth quarter, we initiated the process to migrate Bell Mobility customers who receive a single invoice for their other Bell Canada services to the one bill platform.
Overall, our various Galileo initiatives led to cost reductions in Q4 of $171 million, bringing total savings for the year to $524 million, which were in line with our run-rate savings target of $500-$600 million for 2005. These cost savings resulted mainly from:
As part of our commitment to transform our cost structure, we began a comprehensive program to review procurement spending and related processes during the fourth quarter with the goal of implementing improved spending controls and reducing our approximate $8.5 billion of annual external operating and capital expenditures. 2) Deliver abundant bandwidth to enable next-generation services We continued our FTTN rollout by deploying another 194 neighbourhood nodes in Q4, raising the total number to 2,048, which surpassed our objective to deploy more than 2,000 nodes by the end of 2005. 3) Create next-generation services to drive future growth We ended 2005 with approximately 81,000 wireless subscribers on our ‘10-4’ push-to-talk service, which included a significant number of non-business consumers. In addition, our Residential segment:
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9 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance
|
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Other Corporate Developments Under our asset review program, we announced on December 2, 2005 an agreement to reduce our equity interest in Bell Globemedia from 68.5% to 20%. Following completion of all closing conditions and subject to receipt of the required regulatory approvals expected later in 2006, we will sell an 8.5% equity interest in Bell Globemedia to The Woodbridge Company Limited (Woodbridge) and a 20% stake to each of Ontario Teachers’ Pension Plan Board and Torstar Corporation for aggregate cash proceeds of $685 million. In conjunction with the agreement to make these ownership changes, Bell Globemedia has restructured its capital on a basis more appropriate to ongoing operations through additional borrowing and a return of capital to its existing shareholders. The recapitalization, which was completed in January 2006, resulted in a cash distribution of $607 million to us. By retaining a 20% equity interest in the company, we have maintained our strong relationship with Bell Globemedia, allowing us to continue participating in the growth of Canada’s leading media property, and secured ongoing access to media content thereby enhancing our growth services platforms. Financial Results Analysis Residential segmentResidential revenues increased by 0.7% in the fourth quarter of 2005 to $1,924 million, reflecting the continued expansion of our wireless, video and high-speed Internet subscriber bases and an increase in video ARPU, offset almost entirely by lower wireline (local and access and long distance) revenues. Although overall Residential revenue growth slowed somewhat compared with previous |
10 Bell Canada Enterprises Q4 Investor Briefing
quarters, this result was anticipated given increased competition from cable telephony, which adversely affected long distance and local and access service revenues. Business segment revenues for the fourth quarter of 2005 increased by 6.0% over the same quarter last year to reach $1,627 million, reflecting higher revenues from our Enterprise and SMB units, and the positive impact from the acquisition of 360networks in November 2004 which increased our customer base and gave us an extensive fibre network across major cities in western Canada. This solid revenue performance was offset slightly by a decline in total revenues at Bell West, due mainly to revenues received in 2004 from the Government of Alberta (GOA) to build a next-generation broadband access network (Alberta SuperNet). |
11 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance
|
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Continued growth of higher-value wireless subscribers and increased data revenues drove solid revenue improvement at our Enterprise unit. Data delivered strong year-over-year performance, due to solid growth in IP-based connectivity and ICT (or VAS) revenues. ICT revenues grew by 28% in Q4 2005, compared with last year, mostly as a result of acquisitions, organic growth, and outsourcing. These increases in data and wireless revenues were partially offset by declines in long distance and local and access revenues, due to further erosion of our legacy voice and data business, the reprice of some existing wireline business in response to competitive market pressures and the continued migration of our voice and data traffic to IP-based systems.
Aliant segment revenues were $535 million in the fourth quarter, reflecting an increase of $29 million, or 5.7%, compared with the same period last year. Continued strong growth in wireless and Internet services, as well as a recovery from the 2004 labour disruption, offset declines in other areas due to impacts of competition, wireless and Internet substitution, and regulatory restrictions. |
12 Bell Canada Enterprises Q4 Investor Briefing
Aliant’s wireless revenue increased in the fourth quarter, driven by an 11.9% year-over-year increase in its wireless customer base and higher ARPU. Subscriber results included a 23% increase in digital customers, reflecting Aliant’s expanded service area coverage and digital wireless network, enhanced dealer network that improved market penetration and broad product selection. In addition, ARPU increased in the quarter, reflecting the impacts of a higher percentage of customers subscribing to digital service and an increase in average minutes of use. Other Bell Canada segment revenues for the fourth quarter of 2005 were $494 million, representing a decrease of $17 million or 3.3% compared with the same period in 2004. The decline was due mainly to the performance of our wholesale unit that was affected by the impact of the CRTC’s CDN decision (which reduced revenues by $15 million in the quarter), lower long distance revenues resulting from a decline in switched minute volumes and continued competitive pricing pressure, and weaker data revenues as a result of customers migrating services onto their own network facilities. This was offset partially by the contribution to revenues from the acquisition of 360networks late in the fourth quarter of 2004 and a contract to help restore telecommunications service to the areas affected in the United States by hurricane Katrina. |
13 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance
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termination minutes for southbound U.S. traffic at a lower rate. Lower revenues partly offset the positive impacts on operating income. Other BCE segmentOther BCE segment revenues were $596 million this quarter or 13.3% higher than the same period in 2004, reflecting higher revenues at Bell Globemedia and Telesat.
Operating income for the Other BCE segment increased by 14.5% this quarter to $95 million, despite lower operating income at both Bell Globemedia and Telesat, as a result of lower corporate expenses at BCE Inc.
Product Line Analysis Local and access Local and access revenues for the quarter decreased by 3.9% to $1,343 million, compared with the same period in 2004, as a result of accelerating NAS erosion and lower Smart-Touch feature revenues, offset partly by gains from wireline insurance and maintenance plans. |
14 Bell Canada Enterprises Q4 Investor Briefing
Long distance Long distance revenues were $478 million for the quarter, reflecting a year-over-year decrease of 14.6% compared with Q4 2004. Lower long distance revenues affected all Bell Canada segments, particularly our Residential and Business segments. Overall minute volumes for the fourth quarter of 2005 increased marginally year-over-year, by 0.2%, to 4,567 million conversation minutes. However, ARPM decreased by $0.013 during the same period to reach $0.096, reflecting competitive pricing pressures in our Residential, Business and Wholesale markets. WirelessGross wireless activations increased by 9.9% this quarter to a record 455,000, up from 414,000 in Q4 2004. Although the percentage of total gross activations from postpaid rate plans in the fourth quarter decreased to 68% this year from 71% in 2004, due to the impact of Solo Mobile and Virgin Mobile performance on our prepaid gross activations, the absolute number of postpaid activations increased by 5.1% year-over-year to 308,000. Prepaid gross activations comprised the remaining 147,000, representing a 22% increase compared with Q4 2004. Postpaid growth was stimulated by the success of our of holiday-season advertising campaign and attractive promotions, new handsets, continued traction from innovative services such as our ‘10-4’ service, our growing presence in western Canada, as well as continued success with the business market segments. Although prepaid activations are traditionally the highest in Q4 due to the commitment-free, gift-giving nature of the product, growth was also fuelled by the success of our two youth-oriented brands, Solo Mobile and Virgin Mobile. |
15 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance
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subscribers on postpaid rate plans, blended ARPU also increased in the quarter reaching $51 per month, up from $50 in Q4 2004. Data Our data revenues for Q4 2005 increased by 13.9% year-over-year to $1,097 million. The improvement was a result of growth in our high-speed Internet customers, increased penetration of IP-based connectivity and ICT (or VAS) solutions within our Enterprise and SMB business units, and the contribution from business acquisitions completed in the past year, which more than offset a decline in legacy data revenues, price competition, the continued rationalization of circuit networks by wholesale customers, lower construction revenues from the GOA contract and the CDN decision which adversely affected revenues by $17 million in Q4 2005. Video Our video revenues grew by 22% this quarter to $268 million from $219 million last year, driven by year-over-year growth in our subscriber base and higher ARPU. |
16 Bell Canada Enterprises Q4 Investor Briefing
October 1, 2005, we brought into effect $2 and $3 increases, respectively, on our basic and theme packages for all new customers. Terminal sales and other revenues were $459 million this quarter, or 8.8% higher than Q4 2004. The year-over-year improvement was attributable to higher wireless equipment revenues resulting from an increased volume of devices sold, which included the purchase by customers of a larger number of premium-priced handsets, higher product sales at Aliant reflecting its recovery from a labour disruption in 2004, the favourable impact from several acquisitions (including those of 360networks and Entourage), as well as incremental revenues from a contract secured by Expertech (a Bell Canada majority-owned provider of installation and network infrastructure services) to help restore telecommunications service to the areas affected in the United States by hurricane Katrina. This was offset partly by lower legacy voice equipment sales to business customers. Non-GAAP Financial Measures This section describes the non-GAAP financial measures we used in this Q4 2005 Investor Briefing to explain our financial results. It also provides reconciliations of the non-GAAP financial measures to the most comparable Canadian GAAP financial measures. |
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EBITDA
|
EBITDA
The term EBITDA does not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). It is therefore unlikely to be comparable to similar measures presented by other companies. EBITDA is presented on a consistent basis from period to period. |
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BCE |
Q4 2005 | Q4 2004 | 2005 | 2004 | ||||||
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EBITDA |
1,858 | 1,794 | 7,597 | 7,430 | ||||||
Amortization expense |
(791 | ) | (787 | ) | (3,114 | ) | (3,056 | ) | ||
Net benefit plans cost |
(65 | ) | (67 | ) | (380 | ) | (256 | ) | ||
Restructuring and other items |
(23 | ) | (126 | ) | (55 | ) | (1,224 | ) | ||
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Operating income |
979 | 814 | 4,048 | 2,894 | ||||||
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BELL |
Q4 2005 | Q4 2004 | 2005 | 2004 | ||||||
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EBITDA |
1,729 | 1,679 | 7,187 | 7,111 | ||||||
Amortization expense |
(755 | ) | (763 | ) | (2,989 | ) | (2,962 | ) | ||
Net benefit plans cost |
(66 | ) | (62 | ) | (389 | ) | (235 | ) | ||
Restructuring and other items |
(24 | ) | (123 | ) | (54 | ) | (1,219 | ) | ||
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Operating income |
884 | 731 | 3,755 | 2,695 | ||||||
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17 Bell Canada Enterprises Q4 Investor Briefing
The Quarter at a Glance
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Operating Income Before Restructuring and Other Items The term operating income before restructuring and other items does not have any standardized meaning prescribed by Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. |
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BCE |
Q4 2005 | Q4 2004 | 2005 | 2004 | ||||||
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Operating Income |
979 | 814 | 4,048 | 2,894 | ||||||
Restructuring and other items |
23 | 126 | 55 | 1,224 | ||||||
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Operating income before restructuring and other items |
1,002 | 940 | 4,103 | 4,118 | ||||||
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BELL |
Q4 2005 | Q4 2004 | 2005 | 2004 | ||||||
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Operating Income |
884 | 731 | 3,755 | 2,695 | ||||||
Restructuring and other items |
24 | 123 | 54 | 1,219 | ||||||
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Operating income before restructuring and other items |
908 | 854 | 3,809 | 3,914 | ||||||
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Net Earnings Before Restructuring and Other Items and Net Gains on Investments The term net earnings before restructuring and other items and net gains on investments does not have any standardized meaning prescribed by Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. |
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Q4 2005 | Q4 2004 | 2005 | 2004 | ||||||||||||||
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TOTAL | PER SHARE |
TOTAL | PER SHARE |
TOTAL | PER SHARE |
TOTAL | PER SHARE |
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Net earnings applicable to common shares |
413 | 0.44 | 417 | 0.45 | 1,891 | 2.04 | 1,523 | 1.65 | ||||||||||
Restructuring and other items |
16 | 0.02 | 62 | 0.04 | 38 | 0.04 | 772 | 0.83 | ||||||||||
Net gains on investments |
| | (62 | ) | (0.04 | ) | (28 | ) | (0.03 | ) | (423 | ) | (0.46 | ) | ||||
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Net earnings before restructuring and other items and net gains on investments |
429 | 0.46 | 417 | 0.45 | 1,901 | 2.05 | 1,872 | 2.02 | ||||||||||
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18 Bell Canada Enterprises Q4 Investor Briefing
Free Cash Flow We define free cash flow as cash from operating activities after capital expenditures, total dividends and other investing activities. |
Free Cash Flow The term free cash flow does not have any standardized meaning prescribed by Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. Free cash flow is presented on a consistent basis from period to period. |
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Q4 2005 | Q4 2004 | 2005 | 2004 | |||||||
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Cash from operating activities |
1,585 | 1,279 | 5,559 | 5,443 | ||||||
Capital expenditures |
(831 | ) | (1,043 | ) | (3,428 | ) | (3,319 | ) | ||
Total dividends paid |
(363 | ) | (347 | ) | (1,473 | ) | (1,381 | ) | ||
Other investing activities |
32 | (10 | ) |
4 |
127 |
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Free cash flow |
423 | (121 | ) | 662 | 870 | |||||
Restructuring and other items |
23 | 126 | 55 | 1,224 | ||||||
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Free cash flow before restructuring and other items |
446 | 5 | 717 | 2,094 | ||||||
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19 Bell Canada Enterprises Q4 Investor Briefing
Supplementary Financial Information
BCE Consolidated (1)
Consolidated Operational Data
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Q4 | Q4 | Total | Total | ||||||||||||
($ millions, except per share amounts) |
2005 | 2004 | $ change | % change | 2005 | 2004 | $ change | % change | ||||||||
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Operating revenues |
4,986 | 4,769 | 217 | 4.6% | 19,105 | 18,368 | 737 | 4.0% | ||||||||
Operating expenses |
(3,128 | ) | (2,975 | ) | (153 | ) | (5.1% |
) |
(11,508 |
) |
(10,938 | ) | (570 | ) | (5.2% | ) |
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EBITDA (2) |
1,858 | 1,794 | 64 | 3.6% | 7,597 | 7,430 | 167 | 2.2% | ||||||||
EBITDA margin (3) |
37.3% | 37.6% | (0.3) pts | 39.8% | 40.5% | (0.7) pts | ||||||||||
Amortization expense |
(791 | ) | (787 | ) | (4 | ) | (0.5% | ) | (3,114 | ) | (3,056 | ) | (58 | ) | (1.9% | ) |
Net benefit plans cost |
(65 | ) | (67 | ) | 2 | 3.0% | (380 | ) | (256 | ) | (124 | ) | (48.4% | ) | ||
Restructuring and other items |
(23 | ) | (126 | ) | 103 | 81.7% | (55 | ) | (1,224 | ) | 1,169 | 95.5% | ||||
|
||||||||||||||||
Operating income |
979 | 814 | 165 | 20.3% | 4,048 | 2,894 | 1,154 | 39.9% | ||||||||
Other income |
(17 | ) | 17 | (34 | ) | n.m. | 8 | 407 | (399 | ) | (98.0% | ) | ||||
Interest expense |
(246 | ) | (244 | ) | (2 | ) | (0.8% | ) | (981 | ) | (999 | ) | 18 | 1.8% | ||
|
||||||||||||||||
Pre-tax earnings from continuing operations |
716 | 587 | 129 | 22.0% | 3,075 | 2,302 | 773 | 33.6% | ||||||||
Income taxes |
(224 | ) | (193 | ) | (31 | ) | (16.1% | ) | (893 | ) | (681 | ) | (212 | ) | (31.1% | ) |
Non-controlling interest |
(74 | ) | (40 | ) | (34 | ) | (85.0% | ) | (267 | ) | (174 | ) | (93 | ) | (53.4% | ) |
|
||||||||||||||||
Earnings from continuing operations |
418 | 354 | 64 | 18.1% | 1,915 | 1,447 | 468 | 32.3% | ||||||||
Discontinued operations |
12 | 11 | 1 | 9.1% | 46 | 77 |
(31 |
) | (40.3% | ) | ||||||
|
||||||||||||||||
Net earnings before extraordinary gain |
430 | 365 | 65 | 17.8% | 1,961 | 1,524 | 437 | 28.7% | ||||||||
Extraordinary gain |
| 69 | (69 | ) | (100.0% | ) | | 69 | (69 | ) | (100.0% | ) | ||||
|
||||||||||||||||
Net earnings |
430 | 434 | (4 | ) | (0.9% | ) | 1,961 | 1,593 | 368 | 23.1% | ||||||
Dividends on preferred shares |
(17 | ) | (17 | ) | | 0.0% | (70 | ) | (70 | ) | | 0.0% | ||||
|
||||||||||||||||
Net earnings applicable to common shares |
413 | 417 | (4 | ) | (1.0% | ) | 1,891 | 1,523 | 368 | 24.2% | ||||||
|
||||||||||||||||
|
||||||||||||||||
Net earnings per common share basic |
||||||||||||||||
Continuing operations |
$0.43 | $0.37 | $0.06 | 16.2% | $1.99 | $1.49 | $0.50 | 33.6% | ||||||||
Discontinued operations |
$0.01 | $0.01 | $ | 0.0% | $0.05 | $0.09 | $(0.04 | ) | (44.4% | ) | ||||||
Extraordinary gain |
$ | $0.07 | $(0.07 | ) | (100.0% | ) | $ | $0.07 | $(0.07 | ) | (100.0% | ) | ||||
Net earnings |
$0.44 | $0.45 | $(0.01 | ) | (2.2% | ) | $2.04 | $1.65 | $0.39 | 23.6% | ||||||
Net earnings per common share diluted |
||||||||||||||||
Continuing operations |
$0.43 | $0.37 | $0.06 | 16.2% | $1.99 | $1.49 | $0.50 | 33.6% | ||||||||
Discontinued operations |
$0.01 | $0.01 | $ | 0.0% | $0.05 | $0.09 | $(0.04 | ) | (44.4% | ) | ||||||
Extraordinary gain |
$ | $0.07 | $(0.07 | ) | (100.0% | ) | $ | $0.07 | $(0.07 | ) | (100.0% | ) | ||||
Net earnings |
$0.44 | $0.45 | $(0.01 | ) | (2.2% | ) | $2.04 | $1.65 | $0.39 | 23.6% | ||||||
Dividends per common share |
$0.33 | $0.30 | $0.03 | 10.0% | $1.32 | $1.20 | $0.12 | 10.0% | ||||||||
Average number of common shares outstanding basic (millions) |
927.3 | 925.3 |
926.8
|
924.6 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
The following items are included in net earnings: |
||||||||||||||||
Net gains (losses) on investments |
||||||||||||||||
Continuing operations |
| 64 | 29 | 389 | ||||||||||||
Discontinued operations |
| (2 | ) | (1 | ) | 34 | ||||||||||
Restructuring and other items |
(16 | ) | (62 | ) | (38 | ) | (772 | ) | ||||||||
|
||||||||||||||||
Total |
(16 | ) | | (10 | ) | (349 | ) | |||||||||
|
||||||||||||||||
Impact on net earnings per share |
$(0.02 | ) | $ | $(0.01 | ) | $(0.37 | ) | |||||||||
EPS before net gains (losses) on investments and restructuring and other items (2) |
$0.46 | $0.45 | $0.01 | 2.2% | $2.05 | $2.02 | $0.03 | 1.5% | ||||||||
|
||||||||||||||||
|
20 Bell Canada Enterprises Q4 Investor Briefing
BCE Consolidated (1)
Consolidated Operational Data Historical Trend
Total | Total | |||||||||||||||||||
($ millions, except per share amounts) |
2005 | Q4 05 | Q3 05 | Q2 05 | Q1 05 | 2004 | Q4 04 | Q3 04 | Q2 04 | Q1 04 | ||||||||||
|
||||||||||||||||||||
Operating revenues |
19,105 | 4,986 | 4,732 | 4,757 | 4,630 | 18,368 | 4,769 | 4,556 | 4,577 | 4,466 | ||||||||||
Operating expenses |
(11,508 | ) | (3,128 | ) | (2,868 | ) |
(2,785 |
) |
(2,727 |
) |
(10,938 |
) |
(2,975 |
) | (2,655) |
(2,657 |
) |
(2,651 |
) | |
|
||||||||||||||||||||
EBITDA (2) |
7,597 | 1,858 | 1,864 | 1,972 | 1,903 | 7,430 | 1,794 | 1,901 | 1,920 | 1,815 | ||||||||||
EBITDA margin (3) |
39.8% | 37.3% | 39.4% | 41.5% | 41.1% | 40.5% | 37.6% | 41.7% | 41.9% | 40.6% | ||||||||||
Amortization expense |
(3,114 | ) | (791 | ) | (786 | ) | (776 | ) | (761 | ) | (3,056 | ) | (787 | ) | (754 | ) | (757 | ) | (758 | ) |
Net benefit plans cost |
(380 | ) | (65 | ) | (108 | ) | (104 | ) | (103 | ) | (256 | ) | (67 | ) | (61 | ) | (65 | ) | (63 | ) |
Restructuring and other items |
(55 | ) | (23 | ) | (31 | ) | (5 | ) | 4 | (1,224 | ) | (126 | ) | (1,081 | ) | (14 | ) | (3 | ) | |
|
||||||||||||||||||||
Operating income |
4,048 | 979 | 939 | 1,087 | 1,043 | 2,894 | 814 | 5 | 1,084 | 991 | ||||||||||
Other income |
8 | (17 | ) | (2 | ) | 19 | 8 | 407 | 17 | 332 | 23 | 35 | ||||||||
Interest expense |
(981 | ) | (246 | ) | (245 | ) | (245 | ) | (245 | ) | (999 | ) | (244 | ) | (252 | ) | (253 | ) | (250 | ) |
|
||||||||||||||||||||
Pre-tax earnings from continuing operations |
3,075 | 716 | 692 | 861 | 806 | 2,302 | 587 | 85 | 854 | 776 | ||||||||||
Income taxes |
(893 | ) | (224 | ) | (187 | ) | (218 | ) | (264 | ) | (681 | ) | (193 | ) | 52 | (286 | ) | (254 | ) | |
Non-controlling interest |
(267 | ) | (74 | ) | (57 | ) | (73 | ) | (63 | ) | (174 | ) | (40 | ) | (47 | ) | (39 | ) | (48 | ) |
|
||||||||||||||||||||
Earnings from continuing operations |
1,915 | 418 | 448 | 570 | 479 | 1,447 | 354 | 90 | 529 | 474 | ||||||||||
Discontinued operations |
46 | 12 | 11 | 11 | 12 | 77 | 11 | 10 | 42 | 14 | ||||||||||
|
||||||||||||||||||||
Net earnings before extraordinary gain |
1,961 | 430 | 459 | 581 | 491 | 1,524 | 365 | 100 | 571 | 488 | ||||||||||
Extraordinary gain |
| | | | | 69 | 69 | | | | ||||||||||
|
||||||||||||||||||||
Net earnings |
1,961 | 430 | 459 | 581 | 491 | 1,593 | 434 | 100 | 571 | 488 | ||||||||||
Dividends on preferred shares |
(70 | ) | (17 | ) | (18 | ) | (18 | ) | (17 | ) | (70 | ) | (17 | ) | (18 | ) | (17 | ) | (18 | ) |
|
||||||||||||||||||||
Net earnings applicable to common shares |
1,891 | 413 | 441 | 563 | 474 | 1,523 | 417 | 82 | 554 | 470 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Net earnings per common share basic |
||||||||||||||||||||
Continuing operations |
$1.99 | $0.43 | $0.46 | $0.60 | $0.50 | $1.49 | $0.37 | $0.08 | $0.55 | $0.49 | ||||||||||
Discontinued operations |
$0.05 | $0.01 | $0.02 | $0.01 | $0.01 | $0.09 | $0.01 | $0.01 | $0.05 | $0.02 | ||||||||||
Extraordinary gain |
$ | $ | $ | $ | $ | $0.07 | $0.07 | $ | $ | $ | ||||||||||
Net earnings |
$2.04 | $0.44 | $0.48 | $0.61 | $0.51 | $1.65 | $0.45 | $0.09 | $0.60 | $0.51 | ||||||||||
Net earnings per common share diluted |
||||||||||||||||||||
Continuing operations |
$1.99 | $0.43 | $0.46 | $0.60 | $0.50 | $1.49 | $0.37 | $0.08 | $0.55 | $0.49 | ||||||||||
Discontinued operations |
$0.05 | $0.01 | $0.02 | $0.01 | $0.01 | $0.09 | $0.01 | $0.01 | $0.05 | $0.02 | ||||||||||
Extraordinary gain |
$ | $ | $ | $ | $ | $0.07 | $0.07 | $ | $ | $ | ||||||||||
Net earnings |
$2.04 | $0.44 | $0.48 | $0.61 | $0.51 | $1.65 | $0.45 | $0.09 | $0.60 | $0.51 | ||||||||||
Dividends per common share |
$1.32 | $0.33 | $0.33 | $0.33 | $0.33 | $1.20 | $0.30 | $0.30 | $0.30 | $0.30 | ||||||||||
Average number of common shares outstanding basic (millions) |
926.8 | 927.3 | 927.0 | 926.6 | 926.2 | 924.6 | 925.3 | 924.6 | 924.3 | 924.1 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
The following items are included in net earnings: |
||||||||||||||||||||
Net gains (losses) on investments |
||||||||||||||||||||
Continuing operations |
29 | | | 28 | 1 | 389 | 64 | 325 | | | ||||||||||
Discontinued operations |
(1 | ) | | | | (1 | ) | 34 | (2 | ) | (2 | ) | 31 | 7 | ||||||
Restructuring and other items |
(38 | ) | (16 | ) | (21 | ) | (3 | ) | 2 | (772 | ) | (62 | ) | (725 | ) | 16 | (1 | ) | ||
|
||||||||||||||||||||
Total |
(10 | ) | (16 | ) | (21 | ) | 25 | 2 | (349 | ) | | (402 | ) | 47 | 6 | |||||
Impact on net earnings per share |
$(0.01 | ) | $(0.02 | ) | $(0.02 | ) | $0.03 | $ | $(0.37 | ) | $ | $(0.43 | ) | $0.05 | $0.01 | |||||
|
||||||||||||||||||||
EPS before net gains (losses) on investments and restructuring and other items (2) |
$2.05 | $0.46 | $0.50 | $0.58 | $0.51 | $2.02 | $0.45 | $0.52 | $0.55 | $0.50 | ||||||||||
|
||||||||||||||||||||
|
21 Bell Canada Enterprises Q4 Investor Briefing
Supplementary Financial Information
BCE Consolidated (1)
Segmented Data
Q4 | Q4 | Total | Total | |||||||||||||
($ millions, except where otherwise indicated) |
2005 | 2004 | $ change | % change | 2005 | 2004 | $ change | % change | ||||||||
|
||||||||||||||||
Revenues |
||||||||||||||||
Residential |
1,924 | 1,911 | 13 | 0.7% | 7,599 | 7,502 | 97 | 1.3% | ||||||||
Business |
1,627 | 1,535 | 92 | 6.0% | 6,120 | 5,851 | 269 | 4.6% | ||||||||
Aliant |
535 | 506 | 29 | 5.7% | 2,097 | 2,033 | 64 | 3.1% | ||||||||
Other Bell Canada |
494 | 511 | (17 | ) | (3.3 | ) | 1,958 | 1,939 | 19 | 1.0% | ||||||
Inter-segment eliminations |
(123 |
) |
(160 | ) | 37 | 23.1% | (524 | ) | (538 | ) | 14 | 2.6% | ||||
|
||||||||||||||||
Total Bell Canada |
4,457 | 4,303 | 154 | 3.6% | 17,250 | 16,787 | 463 | 2.8% | ||||||||
Other BCE |
||||||||||||||||
Bell Globemedia |
465 | 405 | 60 | 14.8% | 1,555 | 1,420 | 135 | 9.5% | ||||||||
Advertising |
354 | 306 | 48 | 15.7% | 1,148 | 1,041 | 107 | 10.3% | ||||||||
Subscriber |
86 | 77 | 9 | 11.7% | 320 | 298 | 22 | 7.4% | ||||||||
Production and Sundry |
25 | 22 | 3 | 13.6% | 87 | 81 | 6 | 7.4% | ||||||||
Telesat |
118 | 102 | 16 | 15.7% | 475 | 362 | 113 | 31.2% | ||||||||
Other |
13 | 19 | (6) | (31.6% | ) | 63 | 60 | 3 | 5.0% | |||||||
|
||||||||||||||||
Total Other BCE |
596 | 526 | 70 | 13.3% | 2,093 | 1,842 | 251 | 13.6% | ||||||||
Inter-segment eliminations |
(67 | ) | (60 | ) | (7) | (11.7% | ) | (238 | ) | (261 | ) | 23 | 8.8% | |||
|
||||||||||||||||
Total revenues |
4,986 | 4,769 | 217 | 4.6% | 19,105 | 18,368 | 737 | 4.0% | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Operating income |
||||||||||||||||
Residential |
444 | 464 | (20 | ) | (4.3% | ) | 2,001 | 2,119 | (118 | ) | (5.6% | ) | ||||
Business |
236 | 183 | 53 | 29.0% | 910 | 896 | 14 | 1.6% | ||||||||
Aliant |
105 | 23 | 82 | n.m. | 396 | 268 | 128 | 47.8% | ||||||||
Other Bell Canada |
99 | 61 | 38 | 62.3% | 448 | (588 | ) | 1,036 | n.m. | |||||||
|
||||||||||||||||
Total Bell Canada |
884 | 731 | 153 | 20.9% | 3,755 | 2,695 | 1,060 | 39.3% | ||||||||
Other BCE |
||||||||||||||||
Bell Globemedia |
101 | 103 | (2 | ) | (1.9% | ) | 289 | 240 | 49 | 20.4% | ||||||
Telesat |
34 | 37 | (3 | ) | (8.1% | ) | 157 | 141 | 16 | 11.3% | ||||||
Other |
(40 | ) | (57 | ) | 17 | 29.8% | (153 | ) | (182 | ) | 29 | 15.9% | ||||
|
||||||||||||||||
Total Other BCE |
95 | 83 | 12 | 14.5% | 293 | 199 | 94 | 47.2% | ||||||||
|
||||||||||||||||
Total operating income |
979 | 814 | 165 | 20.3% | 4,048 | 2,894 | 1,154 | 39.9% | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Capital expenditures (4) |
||||||||||||||||
Residential |
350 | 418 | 68 | 16.3% | 1,519 | 1,371 | (148 | ) | (10.8% | ) | ||||||
Business |
206 | 330 | 124 | 37.6% | 897 | 1,008 | 111 | 11.0% | ||||||||
Aliant |
77 | 114 | 37 | 32.5% | 363 | 295 | (68 | ) | (23.1% | ) | ||||||
Other Bell Canada |
103 | 123 | 20 | 16.3% | 343 | 352 | 9 | 2.6% | ||||||||
|
||||||||||||||||
Total Bell Canada |
736 | 985 | 249 | 25.3% | 3,122 | 3,026 | (96 | ) | (3.2% | ) | ||||||
Other BCE |
||||||||||||||||
Telesat |
62 | 40 | (22) | (55.0% | ) | 260 | 257 | (3 | ) | (1.2% | ) | |||||
Other |
33 | 18 | (15) | (83.3% | ) | 46 | 36 | (10 | ) | (27.8% | ) | |||||
|
||||||||||||||||
Total capital expenditures |
831 | 1,043 | 212 | 20.3% | 3,428 | 3,319 | (109 | ) | (3.3% | ) | ||||||
|
||||||||||||||||
|
22 Bell Canada Enterprises Q4 Investor Briefing
BCE Consolidated (1)
Segmented Data Historical Trend
|
Total | Total | ||||||||||||||||||
($ millions, except where otherwise indicated) |
2005 | Q4 05 | Q3 05 | Q2 05 | Q1 05 | 2004 | Q4 04 | Q3 04 | Q2 04 | Q1 04 | ||||||||||
|
||||||||||||||||||||
Revenues |
||||||||||||||||||||
Residential |
7,599 | 1,924 | 1,929 | 1,890 | 1,856 | 7,502 | 1,911 | 1,908 | 1,858 | 1,825 | ||||||||||
Business |
6,120 | 1,627 | 1,516 | 1,499 | 1,478 | 5,851 | 1,535 | 1,440 | 1,441 | 1,435 | ||||||||||
Aliant |
2,097 | 535 | 520 | 518 | 524 | 2,033 | 506 | 497 | 526 | 504 | ||||||||||
Other Bell Canada |
1,958 | 494 | 500 | 485 | 479 | 1,939 | 511 | 486 | 468 | 474 | ||||||||||
Inter-segment eliminations |
(524 | ) | (123 | ) | (139 | ) | (134 | ) | (128 | ) | (538 | ) | (160 | ) | (125 | ) | (121 | ) | (132 | ) |
|
||||||||||||||||||||
Total Bell Canada |
17,250 | 4,457 | 4,326 | 4,258 | 4,209 | 16,787 | 4,303 | 4,206 | 4,172 | 4,106 | ||||||||||
Other BCE |
||||||||||||||||||||
Bell Globemedia |
1,555 | 465 | 335 | 399 | 356 | 1,420 | 405 | 302 | 371 | 342 | ||||||||||
Advertising |
1,148 | 354 | 233 | 300 | 261 | 1,041 | 306 | 209 | 277 | 249 | ||||||||||
Subscriber |
320 | 86 | 79 | 78 | 77 | 298 | 77 | 73 | 74 | 74 | ||||||||||
Production and Sundry |
87 | 25 | 23 | 21 | 18 | 81 | 22 | 20 | 20 | 19 | ||||||||||
Telesat |
475 | 118 | 112 | 137 | 108 | 362 | 102 | 91 | 85 | 84 | ||||||||||
Other |
63 | 13 | 15 | 24 | 11 | 60 | 19 | 12 | 19 | 10 | ||||||||||
|
||||||||||||||||||||
Total Other BCE |
2,093 | 596 | 462 | 560 | 475 | 1,842 | 526 | 405 | 475 | 436 | ||||||||||
Inter-segment eliminations |
(238 | ) | (67 | ) | (56 | ) | (61 | ) | (54 | ) | (261 | ) | (60 | ) | (55 | ) | (70 | ) | (76 | ) |
|
||||||||||||||||||||
Total revenues |
19,105 | 4,986 | 4,732 | 4,757 | 4,630 | 18,368 | 4,769 | 4,556 | 4,577 | 4,466 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Operating income |
||||||||||||||||||||
Residential |
2,001 | 444 | 479 | 552 | 526 | 2,119 | 464 | 569 | 560 | 526 | ||||||||||
Business |
910 | 236 | 213 | 221 | 240 | 896 | 183 | 245 | 227 | 241 | ||||||||||
Aliant |
396 | 105 | 105 | 99 | 87 | 268 | 23 | 71 | 92 | 82 | ||||||||||
Other Bell Canada |
448 | 99 | 111 | 109 | 129 | (588 | ) | 61 | (898 | ) | 138 | 111 | ||||||||
|
||||||||||||||||||||
Total Bell Canada |
3,755 | 884 | 908 | 981 | 982 | 2,695 | 731 | (13 | ) | 1,017 | 960 | |||||||||
Other BCE |
||||||||||||||||||||
Bell Globemedia |
289 | 101 | 29 | 95 | 64 | 240 | 103 | 23 | 74 | 40 | ||||||||||
Telesat |
157 | 34 | 43 | 43 | 37 | 141 | 37 | 39 | 34 | 31 | ||||||||||
Other |
(153 | ) | (40 | ) | (41 | ) | (32 | ) | (40 | ) | (182 | ) | (57 | ) | (44 | ) | (41 | ) | (40 | ) |
|
||||||||||||||||||||
Total Other BCE |
293 | 95 | 31 | 106 | 61 | 199 | 83 | 18 | 67 | 31 | ||||||||||
|
||||||||||||||||||||
Total operating income |
4,048 | 979 | 939 | 1,087 | 1,043 | 2,894 | 814 | 5 | 1,084 | 991 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures (4) |
||||||||||||||||||||
Residential |
1,519 | 350 | 434 | 394 | 341 | 1,371 | 418 | 377 | 331 | 245 | ||||||||||
Business |
897 | 206 | 249 | 246 | 196 | 1,008 | 330 | 183 | 281 | 214 | ||||||||||
Aliant |
363 | 77 | 100 | 104 | 82 | 295 | 114 | 51 | 45 | 85 | ||||||||||
Other Bell Canada |
343 | 103 | 90 | 103 | 47 | 352 | 123 | 125 | 58 | 46 | ||||||||||
|
||||||||||||||||||||
Total Bell Canada |
3,122 | 736 | 873 | 847 | 666 | 3,026 | 985 | 736 | 715 | 590 | ||||||||||
Other BCE |
||||||||||||||||||||
Telesat |
260 | 62 | 91 | 53 | 54 | 257 | 40 | 64 | 88 | 65 | ||||||||||
Other |
46 | 33 | 4 | 5 | 4 | 36 | 18 | 5 | 9 | 4 | ||||||||||
|
||||||||||||||||||||
Total capital expenditures |
3,428 | 831 | 968 | 905 | 724 | 3,319 | 1,043 | 805 | 812 | 659 | ||||||||||
|
||||||||||||||||||||
|
23 Bell Canada Enterprises Q4 Investor Briefing
Supplementary Financial Information
BCE Consolidated (1)
Consolidated Balance Sheet Data
December 31 | September 30 | June 30 | March 31 | December 31 | ||||||
($ millions, except where otherwise indicated) |
2005 | 2005 | 2005 | 2005 | 2004 | |||||
|
||||||||||
ASSETS |
||||||||||
Current assets |
||||||||||
Cash and cash equivalents |
363 | 415 | 332 | 482 | 313 | |||||
Accounts receivable |
1,766 | 1,806 | 1,728 | 1,914 | 1,951 | |||||
Other current assets |
1,142 | 1,333 | 1,060 | 1,205 | 1,061 | |||||
Current assets of discontinued operations |
402 | 378 | 369 | 368 | 383 | |||||
|
||||||||||
Total current assets |
3,673 | 3,932 | 3,489 | 3,969 | 3,708 | |||||
Capital assets |
22,062 | 21,941 | 21,761 | 21,087 | 21,104 | |||||
Other long-term assets |
2,914 | 2,667 | 2,667 | 2,720 | 2,628 | |||||
Indefinite-life intangible assets |
3,031 | 2,973 | 2,973 | 2,951 | 2,916 | |||||
Goodwill |
7,887 | 7,900 | 7,854 | 7,814 | 7,756 | |||||
Non-current assets of discontinued operations |
1,063 | 1,073 | 1,070 | 1,034 | 1,028 | |||||
|
||||||||||
Total assets |
40,630 | 40,486 | 39,814 | 39,575 | 39,140 | |||||
|
||||||||||
|
||||||||||
LIABILITIES |
||||||||||
Current liabilities |
||||||||||
Accounts payable and accrued liabilities |
3,435 | 3,287 | 3,060 | 3,052 | 3,444 | |||||
Interest payable |
182 | 266 | 189 | 283 | 183 | |||||
Dividends payable |
343 | 325 | 325 | 325 | 297 | |||||
Debt due within one year |
1,373 | 1,260 | 1,494 | 1,423 | 1,272 | |||||
Current liabilities of discontinued operations |
281 | 279 | 280 | 272 | 271 | |||||
|
||||||||||
Total current liabilities |
5,614 | 5,417 | 5,348 | 5,355 | 5,467 | |||||
Long-term debt |
12,119 | 12,558 | 12,407 | 12,185 | 11,685 | |||||
Other long-term liabilities |
5,028 | 4,758 | 4,506 | 4,718 | 4,834 | |||||
Non-current liabilities of discontinued operations |
250 | 251 | 170 | 195 | 222 | |||||
|
||||||||||
Total liabilities |
23,011 | 22,984 | 22,431 | 22,453 | 22,208 | |||||
|
||||||||||
Non-controlling interest |
2,898 | 2,892 | 2,905 | 2,914 | 2,908 | |||||
|
||||||||||
|
||||||||||
SHAREHOLDERS EQUITY |
||||||||||
Preferred shares |
1,670 | 1,670 | 1,670 | 1,670 | 1,670 | |||||
|
||||||||||
Common shareholders equity |
||||||||||
Common shares |
16,806 | 16,806 | 16,794 | 16,790 | 16,781 | |||||
Contributed surplus |
1,081 | 1,076 | 1,071 | 1,065 | 1,061 | |||||
Deficit |
(4,763 | ) | (4,871 | ) | (5,005 | ) | (5,264 | ) | (5,432 | ) |
Currency translation adjustment |
(73 | ) | (71 | ) | (52 | ) | (53 | ) | (56 | ) |
|
||||||||||
Total common shareholders equity |
13,051 | 12,940 | 12,808 | 12,538 | 12,354 | |||||
|
||||||||||
Total shareholders equity |
14,721 | 14,610 | 14,478 | 14,208 | 14,024 | |||||
|
||||||||||
Total liabilities and shareholders equity |
40,630 | 40,486 | 39,814 | 39,575 | 39,140 | |||||
|
||||||||||
|
||||||||||
Number of common shares outstanding |
927.3 | 927.3 | 926.7 | 926.4 | 925.9 | |||||
|
||||||||||
|
||||||||||
|
||||||||||
Total Net Debt |
13,129 | 13,403 | 13,569 | 13,126 | 12,644 | |||||
Total Capitalization |
30,748 | 30,905 | 30,952 | 30,248 | 29,576 | |||||
|
||||||||||
Key ratios |
||||||||||
Net debt: Total Capitalization |
42.7% | 43.4% | 43.8% | 43.4% | 42.8% | |||||
Net debt: Trailing 12 month EBITDA |
1.73 | 1.78 | 1.79 | 1.75 | 1.70 | |||||
EBITDA: Interest (trailing 12 month) |
7.74 | 7.69 | 7.68 | 7.56 | 7.44 |
24 Bell Canada Enterprises Q4 Investor Briefing
BCE Consolidated
Consolidated Cash Flow Data
Q4 | Q4 | Total | Total | |||||||||
($ millions, except where otherwise indicated) |
2005 | 2004 | $ change | 2005 | 2004 | $ change | ||||||
|
||||||||||||
Cash flows from operating activities |
||||||||||||
Earnings from continuing operations |
418 | 354 | 64 | 1,915 | 1,447 | 468 | ||||||
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities: |
||||||||||||
Amortization expense |
791 | 787 | 4 | 3,114 | 3,056 | 58 | ||||||
Net benefit plans cost |
65 | 67 | (2 | ) | 380 | 256 | 124 | |||||
Restructuring and other items |
23 | 126 | (103 | ) | 55 | 1,224 | (1,169 | ) | ||||
Net gains on investments |
1 | 12 | (11 | ) | (33 | ) | (320 | ) | 287 | |||
Future income taxes |
465 | 62 | 403 | 746 | (35 | ) | 781 | |||||
Non-controlling interest |
74 | 40 | 34 | 267 | 174 | 93 | ||||||
Contributions to employee pension plans |
(65 | ) | (24 | ) | (41 | ) | (226 | ) | (112 | ) | (114 | ) |
Other employee future benefit plan payments |
(24 | ) | (22 | ) | (2 | ) | (93 | ) | (81 | ) | (12 | ) |
Payments of restructuring and other items |
(23 | ) | (214 | ) | 191 | (176 | ) | (253 | ) | 77 | ||
Operating assets and liabilities |
(140 | ) | 91 | (231 | ) | (390 | ) | 87 | (477 | ) | ||
|
||||||||||||
|
1,585 | 1,279 | 306 | 5,559 | 5,443 | 116 | ||||||
|
||||||||||||
Capital expenditures |
(831 | ) | (1,043 | ) | 212 | (3,428 | ) | (3,319 | ) | (109 | ) | |
Other investing activities |
32 | (10 | ) | 42 | 4 | 127 | (123 | ) | ||||
Cash dividends paid on preferred shares |
(22 | ) | (21 | ) | (1 | ) | (86 | ) | (85 | ) | (1 | ) |
Cash dividends paid by subsidiaries to non-controlling interest |
(35 | ) | (49 | ) | 14 | (192 | ) | (188 | ) | (4 | ) | |
|
||||||||||||
Free Cash Flow from operations, before common dividends (2) |
729 | 156 | 573 | 1,857 | 1,978 | (121 | ) | |||||
Cash dividends paid on common shares |
(306 | ) | (277 | ) | (29 | ) | (1,195 | ) | (1,108 | ) | (87 | ) |
|
||||||||||||
Free Cash Flow from operations, after common dividends (2) |
423 | (121 | ) | 544 | 662 | 870 | (208 | ) | ||||
Business acquisitions |
(50 | ) | (334 | ) | 284 | (228 | ) | (1,118 | ) | 890 | ||
Business dispositions |
| | | | 20 | (20 | ) | |||||
Increase in investments |
(17 | ) | (38 | ) | 21 | (233 | ) | (58 | ) | (175 | ) | |
Decrease in investments |
12 | | 12 | 19 | 713 | (694 | ) | |||||
|
||||||||||||
Free Cash Flow after investments and divestitures |
368 | (493 | ) | 861 | 220 | 427 | (207 | ) | ||||
|
||||||||||||
Other financing activities |
||||||||||||
Increase (decrease) in notes payable and bank advances |
(187 | ) | 7 | (194 | ) | (66 | ) | 130 | (196 | ) | ||
Issue of long-term debt |
| 56 | (56 | ) | 1,190 | 1,306 | (116 | ) | ||||
Repayment of long-term debt |
(196 | ) | (580 | ) | 384 | (1,178 | ) | (2,256 | ) | 1,078 | ||
Issue of common shares |
| 16 | (16 | ) | 25 | 32 | (7 | ) | ||||
Issue of equity securities by subsidiaries to non-controlling interest |
| 1 | (1 | ) | 1 | 8 | (7 | ) | ||||
Redemption of equity securities by subsidiaries from non-controlling interest |
(18 | ) | | (18 | ) | (78 | ) | (58 | ) | (20 | ) | |
Other financing activities |
(19 | ) | (18 | ) | (1 | ) | (64 | ) | (81 | ) | 17 | |
|
||||||||||||
|
(420 | ) | (518 | ) | 98 | (170 | ) | (919 | ) | 749 | ||
|
||||||||||||
Cash provided by (used in) continuing operations |
(52 | ) | (1,011 | ) | 959 | 50 | (492 | ) | 542 | |||
Cash provided by (used in) discontinued operations |
22 | 5 | 17 | 15 | 150 | (135 | ) | |||||
|
||||||||||||
Net increase (decrease) in cash and cash equivalents |
(30 | ) | (1,006 | ) | 976 | 65 | (342 | ) | 407 | |||
Cash and cash equivalents at beginning of period |
475 | 1,386 | (911 | ) | 380 | 722 | (342 | ) | ||||
|
||||||||||||
Cash and cash equivalents at end of period |
445 | 380 | 65 | 445 | 380 | 65 | ||||||
|
||||||||||||
Consists of: |
||||||||||||
Cash and cash equivalents of continuing operations |
363 | 313 | 50 | 363 | 313 | 50 | ||||||
Cash and cash equivalents of discontinued operations |
82 | 67 | 15 | 82 | 67 | 15 | ||||||
|
||||||||||||
Total | 445 | 380 | 65 | 445 | 380 | 65 | ||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
Other information |
||||||||||||
Capital expenditures as a percentage of revenues |
16.7% | 21.9% | 5.2 pts | 17.9% | 18.1% | 0.2 pts | ||||||
Cash flow per share (5) |
$0.81 | $0.26 | $0.55 | $2.30 | $2.30 | $0.00 | ||||||
Annualized cash flow yield (6) |
11.3% | 2.3% | 9.0 pts | 7.2% | 7.4% | (0.2) pts | ||||||
Common dividend payout |
74.1% | 66.4% | 7.7 pts | 63.2% | 72.8% | (9.6) pts |
25 Bell Canada Enterprises Q4 Investor Briefing
Supplementary Financial Information
BCE Consolidated
Consolidated Cash Flow Data Historical Trend
|
Total | Total | ||||||||||||||||||
($ millions, except where otherwise indicated) |
2005 | Q4 05 | Q3 05 | Q2 05 | Q1 05 | 2004 | Q4 04 | Q3 04 | Q2 04 | Q1 04 | ||||||||||
|
||||||||||||||||||||
Cash flows from operating activities |
||||||||||||||||||||
Earnings from continuing operations |
1,915 | 418 | 448 | 570 | 479 | 1,447 | 354 | 90 | 529 | 474 | ||||||||||
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities: |
||||||||||||||||||||
Amortization expense |
3,114 | 791 | 786 | 776 | 761 | 3,056 | 787 | 754 | 757 | 758 | ||||||||||
Net benefit plans cost |
380 | 65 | 108 | 104 | 103 | 256 | 67 | 61 | 65 | 63 | ||||||||||
Restructuring and other items |
55 | 23 | 31 | 5 | (4 | ) | 1,224 | 126 | 1,081 | 14 | 3 | |||||||||
Net (gains) losses on investments |
(33 | ) | 1 | | (32 | ) | (2 | ) | (320 | ) | 12 | (327 | ) | | (5 | ) | ||||
Future income taxes |
746 | 465 | 111 | 63 | 107 | (35 | ) | 62 | (184 | ) | 34 | 53 | ||||||||
Non-controlling interest |
267 | 74 | 57 | 73 | 63 | 174 | 40 | 47 | 39 | 48 | ||||||||||
Contributions to employee pension plans |
(226 | ) | (65 | ) | (33 | ) | (34 | ) | (94 | ) | (112 | ) | (24 | ) | (32 | ) | (27 | ) | (29 | ) |
Other employee future benefit plan payments |
(93 | ) | (24 | ) | (24 | ) | (22 | ) | (23 | ) | (81 | ) | (22 | ) | (13 | ) | (22 | ) | (24 | ) |
Payments of restructuring and other items |
(176 | ) | (23 | ) | (24 | ) | (28 | ) | (101 | ) | (253 | ) | (214 | ) | (12 | ) | (8 | ) | (19 | ) |
Operating assets and liabilities |
(390 | ) | (140 | ) | 195 | (72 | ) | (373 | ) | 87 | 91 | 368 | (284 | ) | (88 | ) | ||||
|
||||||||||||||||||||
|
5,559 | 1,585 | 1,655 | 1,403 | 916 | 5,443 | 1,279 | 1,833 | 1,097 | 1,234 | ||||||||||
|
||||||||||||||||||||
Capital expenditures |
(3,428 | ) | (831 | ) | (968 | ) | (905 | ) | (724 | ) | (3,319 | ) | (1,043 | ) | (805 | ) | (812 | ) | (659 | ) |
Other investing activities |
4 | 32 | (3 | ) | (10 | ) | (15 | ) | 127 | (10 | ) | (2 | ) | 120 | 19 | |||||
Cash dividends paid on preferred shares |
(86 | ) | (22 | ) | (21 | ) | (22 | ) | (21 | ) | (85 | ) | (21 | ) | (21 | ) | (21 | ) | (22 | ) |
Cash dividends paid by subsidiaries to non-controlling interest |
(192 | ) | (35 | ) | (47 | ) | (60 | ) | (50 | ) | (188 | ) | (49 | ) | (44 | ) | (52 | ) | (43 | ) |
|
||||||||||||||||||||
Free Cash Flow from operations, before common dividends (2) |
1,857 | 729 | 616 | 406 | 106 | 1,978 | 156 | 961 | 332 | 529 | ||||||||||
Cash dividends paid on common shares |
(1,195 | ) | (306 | ) | (306 | ) | (305 | ) | (278 | ) | (1,108 | ) | (277 | ) | (277 | ) | (277 | ) | (277 | ) |
|
||||||||||||||||||||
Free Cash Flow from operations, after common dividends (2) |
662 | 423 | 310 | 101 | (172 | ) | 870 | (121 | ) | 684 | 55 | 252 | ||||||||
Business acquisitions |
(228 | ) | (50 | ) | (56 | ) | (35 | ) | (87 | ) | (1,118 | ) | (334 | ) | (646 | ) | (79 | ) | (59 | ) |
Business dispositions |
| | | | | 20 | | 4 | | 16 | ||||||||||
Increase in investments |
(233 | ) | (17 | ) | (75 | ) | (13 | ) | (128 | ) | (58 | ) | (38 | ) | (12 | ) | (8 | ) | | |
Decrease in investments |
19 | 12 | | 5 | 2 | 713 | | 707 | | 6 | ||||||||||
|
||||||||||||||||||||
Free Cash Flow after investments and divestitures |
220 | 368 | 179 | 58 | (385 | ) | 427 | (493 | ) | 737 | (32 | ) | 215 | |||||||
|
||||||||||||||||||||
Other financing activities |
||||||||||||||||||||
Increase (decrease) in notes payable and bank advances |
(66 | ) | (187 | ) | (65 | ) | 341 | (155 | ) | 130 | 7 | 173 | (69 | ) | 19 | |||||
Issue of long-term debt |
1,190 | | 200 | 205 | 785 | 1,306 | 56 | 11 | 1 | 1,238 | ||||||||||
Repayment of long-term debt |
(1,178 | ) | (196 | ) | (209 | ) | (719 | ) | (54 | ) | (2,256 | ) | (580 | ) | (98 | ) | (714 | ) | (864 | ) |
Issue of common shares |
25 | | 12 | 4 | 9 | 32 | 16 | 8 | 4 | 4 | ||||||||||
Issue of equity securities and convertible debentures by subsidiaries to non-controlling interest |
1 | | 1 | | | 8 | 1 | | | 7 | ||||||||||
Redemption of equity securities by subsidiaries from non-controlling interest |
(78 | ) | (18 | ) | (22 | ) | (21 | ) | (17 | ) | (58 | ) | | (4 | ) | (12 | ) | (42 | ) | |
Other financing activities |
(64 | ) | (19 | ) | (13 | ) | (18 | ) | (14 | ) | (81 | ) | (18 | ) | (18 | ) | 3 | (48 | ) | |
|
||||||||||||||||||||
|
(170 | ) | (420 | ) | (96 | ) | (208 | ) | 554 | (919 | ) | (518 | ) | 72 | (787 | ) | 314 | |||
|
||||||||||||||||||||
Cash provided by (used in) continuing operations |
50 | (52 | ) | 83 | (150 | ) | 169 | (492 | ) | (1,011 | ) | 809 | (819 | ) | 529 | |||||
Cash provided by (used in) discontinued operations |
15 | 22 | 12 | 4 | (23 | ) | 150 | 5 | | (115 | ) | 260 | ||||||||
|
||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents |
65 | (30 | ) | 95 | (146 | ) | 146 | (342 | ) | (1,006 | ) | 809 | (934 | ) | 789 | |||||
Cash and cash equivalents at beginning of period |
380 | 475 | 380 | 526 | 380 | 722 | 1,386 | 577 | 1,511 | 722 | ||||||||||
|
||||||||||||||||||||
Cash and cash equivalents at end of period |
445 | 445 | 475 | 380 | 526 | 380 | 380 | 1,386 | 577 | 1,511 | ||||||||||
|
||||||||||||||||||||
Consists of: |
||||||||||||||||||||
Cash and cash equivalents of continuing operations |
363 | 363 | 415 | 332 | 482 | 313 | 313 | 1,327 | 521 | 1,085 | ||||||||||
Cash and cash equivalents of discontinued operations |
82 | 82 | 60 | 48 | 44 | 67 | 67 | 59 | 56 | 426 | ||||||||||
|
||||||||||||||||||||
Total |
445 | 445 | 475 | 380 | 526 | 380 | 380 | 1,386 | 577 | 1,511 | ||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Other information |
||||||||||||||||||||
Capital expenditures as a percentage of revenues |
17.9% | 16.7% | 20.5% | 19.0% | 15.6% | 18.1% | 21.9% | 17.7% | 17.7% | 14.8% | ||||||||||
Cash flow per share (5) |
$2.30 | $0.81 | $0.74 | $0.54 | $0.21 | $2.30 | $0.26 | $1.11 | $0.31 | $0.62 | ||||||||||
Annualized cash flow yield (6) |
7.2% | 11.3% | 8.3% | 6.0% | 1.5% | 7.4% | 2.3% | 15.3% | 5.4% | 8.3% | ||||||||||
Common dividend payout |
63.2% | 74.1% | 69.4% | 54.2% | 58.6% | 72.8% | 66.4% | 337.8% | 50.0% | 58.9% |
26 Bell Canada Enterprises Q4 Investor Briefing
Proportionate Net Debt, Preferreds and EBITDA
BCE Corporate and Bell Canada Net debt and preferreds
At December 31, 2005 |
Bell | Inter- | Total | |||||||||
|
Bell Canada | Canada | company | Bell | BCE Inc. | |||||||
($ millions, except where otherwise indicated) |
(excl. Aliant) | Aliant | Statutory | eliminations | Canada | Corporate | ||||||
|
||||||||||||
Cash and cash equivalents |
(38 | ) | (195 | ) | (233 | ) | (233 | ) | 3 | |||
Long-term debt |
9,279 | 898 | 10,177 | (339 | ) | 9,838 | 1,700 | |||||
Debt due within one year |
818 | 18 | 836 | (96 | ) | 740 | 300 | |||||
Long-term note receivable from BCH |
(498 | ) | | (498 | ) | 498 | | | ||||
PPA fair value increment (7) |
99 | | ||||||||||
|
||||||||||||
Net debt |
9,561 | 721 | 10,282 | 63 | 10,444 | 2,003 | ||||||
Preferred shares Bell Canada (8) |
1,100 | 1,100 | 1,100 | | ||||||||
Preferred shares Aliant (8) |
172 | 172 | 172 | | ||||||||
Perpetual Preferred shares BCE |
| | | | 1,670 | |||||||
Nortel common shares at market |
| | | | (52 | ) | ||||||
|
||||||||||||
Net debt and preferreds |
10,661 | 893 | 11,554 | 63 | 11,716 | 3,621 | ||||||
|
||||||||||||
|
Proportionate net debt and preferreds, Trailing EBITDA
For the quarter ended December 31, 2005 | ||||||||||||||||||||||||
|
Propor- | |||||||||||||||||||||||
|
tionate | |||||||||||||||||||||||
|
% | net debt | ||||||||||||||||||||||
($ millions, except where otherwise indicated) |
owned | and pre- |
Total EBITDA |
Proportionate EBITDA |
||||||||||||||||||||
by BCE | ferreds | Q4 05 | Q3 05 | Q2 05 | Q1 05 | Trailing | Q4 05 | Q3 05 | Q2 05 | Q1 05 | Trailing | |||||||||||||
|
||||||||||||||||||||||||
Bell Canada (excluding Aliant) |
100% |
10,823 |
* |
1,504 |
1,578 | 1,618 | 1,605 | 6,305 | 1,504 | 1,578 | 1,618 | 1,605 | 6,305 | |||||||||||
Aliant |
53.2% | 475 | 225 | 226 | 221 | 210 | 882 | 120 | 120 | 117 | 112 | 469 | ||||||||||||
|
||||||||||||||||||||||||
Total Bell Canada Consolidated |
11,298 | 1,729 | 1,804 | 1,839 | 1,815 | 7,187 | 1,624 | 1,698 | 1,735 | 1,717 | 6,774 | |||||||||||||
Other BCE |
||||||||||||||||||||||||
Bell Globemedia |
68.5% | 260 | 120 | 46 | 114 | 83 | 363 | 73 | 23 | 68 | 49 | 213 | ||||||||||||
Telesat |
100% | 276 | 65 | 70 | 71 | 63 | 269 | 65 | 70 | 71 | 63 | 269 | ||||||||||||
Corporate and other |
100% | 3,613 | (36 | ) | (36 | ) | (39 | ) | (37 | ) | (148 | ) | (36 | ) | (36 | ) | (39 | ) | (37 | ) | (148 | ) | ||
|
||||||||||||||||||||||||
Total Other BCE |
4,149 | 149 | 80 | 146 | 109 | 484 | 102 | 57 | 100 | 75 | 334 | |||||||||||||
Inter-segment eliminations |
(20 | ) | (20 | ) | (13 | ) | (21 | ) | (74 | ) | (20 | ) | (20 | ) | (13 | ) | (21 | ) | (74 | ) | ||||
|
||||||||||||||||||||||||
Total |
15,447 | 1,858 | 1,864 | 1,972 | 1,903 | 7,597 | 1,706 | 1,735 | 1,822 | 1,771 | 7,034 | |||||||||||||
|
||||||||||||||||||||||||
|
* | Bell Canada (excl. Aliant) net debt and preferreds of $10,661 million plus $63 million of inter-company eliminations plus $99 million upon consolidation (PPA fair value increment). |
27 Bell Canada Enterprises Q4 Investor Briefing
Supplementary Financial Information
Bell Canada Consolidated (1)
Operational Data
|
Q4 | Q4 | Total | Total | ||||||||||||
($ millions, except where otherwise indicated) |
2005 | 2004 | $ change | % change | 2005 | 2004 | $ change | % change | ||||||||
|
||||||||||||||||
Revenues |
||||||||||||||||
Local and access |
1,343 | 1,397 | (54 | ) | (3.9% | ) | 5,446 | 5,572 | (126 | ) | (2.3% | ) | ||||
Long distance |
478 | 560 |
(82 |
) |
(14.6% |
) | 2,044 | 2,327 | (283 | ) | (12.2% | ) | ||||
Wireless |
812 | 742 | 70 | 9.5% | 3,097 | 2,818 | 279 | 9.9% | ||||||||
Data |
1,097 | 963 | 134 | 13.9% | 4,015 | 3,640 | 375 | 10.3% | ||||||||
Video |
268 | 219 | 49 | 22.4% | 976 | 850 | 126 | 14.8% | ||||||||
Terminal sales and other |
459 | 422 | 37 | 8.8% | 1,672 | 1,580 | 92 | 5.8% | ||||||||
|
||||||||||||||||
Total operating revenues |
4,457 | 4,303 | 154 | 3.6% | 17,250 | 16,787 | 463 | 2.8% | ||||||||
Operating expenses |
(2,728 | ) | (2,624 | ) | (104 | ) | (4.0% |
) |
(10,063 | ) | (9,676 | ) | (387 | ) | (4.0% | ) |
|
||||||||||||||||
EBITDA (2) |
1,729 | 1,679 | 50 | 3.0% | 7,187 | 7,111 | 76 | 1.1% | ||||||||
EBITDA margin (%) (3) |
38.8% | 39.0% | (0.2) pts | 41.7% | 42.4% | (0.7) pts | ||||||||||
Amortization expense |
(755 | ) | (763 | ) | 8 | 1.0% | (2,989 | ) | (2,962 | ) | (27 | ) | (0.9% | ) | ||
Net benefit plans cost |
(66 | ) | (62 | ) | (4 | ) | (6.5% | ) | (389 | ) | (235 | ) | (154 | ) | (65.5% | ) |
Restructuring and other items |
(24 | ) | (123 | ) | 99 | 80.5% | (54 | ) | (1,219 | ) | 1,165 | 95.6% | ||||
|
||||||||||||||||
Operating income |
884 | 731 | 153 | 20.9% | 3,755 | 2,695 | 1,060 | 39.3% | ||||||||
Other income |
| 20 |
(20 |
) | (100.0% | ) | 39 | 183 | (144 | ) | (78.7% | ) | ||||
Interest expense |
(208 | ) | (212 | ) | 4 | 1.9% | (827 | ) | (863 | ) | 36 | 4.2% | ||||
|
||||||||||||||||
Pre-tax earnings |
676 | 539 | 137 | 25.4% | 2,967 | 2,015 | 952 | 47.2% | ||||||||
Income taxes |
(138 | ) | (140 | ) | 2 | 1.4% | (743 | ) | (506 | ) | (237 | ) | (46.8% | ) | ||
Non-controlling interest |
(22 | ) | 8 | (30 | ) | n.m. | (71 | ) | 9 | (80 | ) | n.m. | ||||
|
||||||||||||||||
Net earnings before extraordinary gain |
516 | 407 | 109 | 26.8% | 2,153 | 1,518 | 635 | 41.8% | ||||||||
Extraordinary gain |
| 69 |
(69 |
) |
(100.0% |
) | | 69 |
(69 |
) | (100.0% | ) | ||||
|
||||||||||||||||
Net earnings |
516 | 476 | 40 | 8.4% | 2,153 | 1,587 | 566 | 35.7% | ||||||||
Dividends on preferred shares |
(14 | ) | (11 | ) |
(3 |
) |
(27.3% |
) | (55 | ) | (60 | ) | 5 | 8.3% | ||
|
||||||||||||||||
Net earnings applicable to common shares |
502 | 465 | 37 | 8.0% | 2,098 | 1,527 | 571 | 37.4% | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Other information |
||||||||||||||||
Cash flow information |
||||||||||||||||
Free Cash Flow (FCF) (2) |
||||||||||||||||
Cash from operating activities |
1,630 | 1,293 | 337 | 26.1% | 5,508 | 5,333 | 175 | 3.3% | ||||||||
Capital expenditures |
(736 | ) | (985 | ) | 249 | 25.3% | (3,122 | ) | (3,026 | ) | (96 | ) | (3.2% | ) | ||
Dividends and distributions |
(404 | ) | (351 | ) |
(53 |
) |
(15.1% |
) | (1,747 | ) | (1,736 | ) | (11 | ) | (0.6% | ) |
Other investing items |
1 | (8 | ) | 9 | n.m. | 5 | (15 | ) | 20 | n.m. | ||||||
|
||||||||||||||||
Total |
491 | (51 | ) | 542 | n.m. | 644 | 556 | 88 | 15.8 | % | ||||||
|
||||||||||||||||
|
||||||||||||||||
Capital expenditures as a percentage of revenues (%) |
16.5% | 22.9% | 6.4 pts | 18.1% | 18.0% | (0.1) pts |
Balance Sheet Information | Dec. 31 | Dec. 31 | ||
2005 | 2004 | |||
|
||||
Net Debt | ||||
Long-term debt | 10,177 | 9,166 | ||
Debt due within one year | 836 | 1,352 | ||
Less: Cash and cash equivalents |
(233 | ) | (32 | ) |
|
||||
Total Net Debt | 10,780 | 10,486 | ||
Non-controlling interest | 1,212 | 1,229 | ||
Total shareholders equity | 10,135 | 9,670 | ||
|
||||
Total Capitalization | 22,127 | 21,385 | ||
|
||||
|
||||
Net Debt: Total Capitalization | 48.7% | 49.0% | ||
Net Debt: Trailing 12 month EBITDA | 1.50 | 1.47 | ||
EBITDA : Interest (trailing 12 month) | 8.69 | 8.24 | ||
n.m.: not meaningful |
28 Bell Canada Enterprises Q4 Investor Briefing
Bell Canada Consolidated (1)
Operational Data Historical Trend
|
Total | Total | ||||||||||||||||||
($ millions, except where otherwise indicated) |
2005 | Q4 05 | Q3 05 | Q2 05 | Q1 05 | 2004 | Q4 04 | Q3 04 | Q2 04 | Q1 04 | ||||||||||
|
||||||||||||||||||||
Revenues |
||||||||||||||||||||
Local and access |
5,446 | 1,343 | 1,367 | 1,368 | 1,368 | 5,572 | 1,397 | 1,395 | 1,401 | 1,379 | ||||||||||
Long distance |
2,044 | 478 | 510 | 518 | 538 | 2,327 | 560 | 589 | 572 | 606 | ||||||||||
Wireless |
3,097 | 812 | 801 | 771 | 713 | 2,818 | 742 | 727 | 698 | 651 | ||||||||||
Data |
4,015 | 1,097 | 1,001 | 966 | 951 | 3,640 | 963 | 915 | 870 | 892 | ||||||||||
Video |
976 | 268 | 251 | 236 | 221 | 850 | 219 | 213 | 211 | 207 | ||||||||||
Terminal sales and other |
1,672 | 459 | 396 | 399 | 418 | 1,580 | 422 | 367 | 420 | 371 | ||||||||||
|
||||||||||||||||||||
Total operating revenues |
17,250 | 4,457 | 4,326 | 4,258 | 4,209 | 16,787 | 4,303 | 4,206 | 4,172 | 4,106 | ||||||||||
Operating expenses |
(10,063 |
) |
(2,728 |
) |
(2,522 |
) |
(2,419 |
) |
(2,394 | ) | (9,676 |
) |
(2,624 | ) | (2,350 | ) | (2,351 |
) |
(2,351 | ) |
|
||||||||||||||||||||
EBITDA (2) |
7,187 | 1,729 | 1,804 | 1,839 | 1,815 | 7,111 | 1,679 | 1,856 | 1,821 | 1,755 | ||||||||||
EBITDA margin (%) (3) |
41.7% | 38.8% | 41.7% | 43.2% | 43.1% | 42.4% | 39.0% | 44.1% | 43.6% | 42.7% | ||||||||||
Amortization expense |
(2,989 | ) | (755 | ) | (756 | ) | (746 | ) | (732 | ) | (2,962 | ) | (763 | ) | (734 | ) | (733 | ) | (732 | ) |
Net benefit plans cost |
(389 | ) | (66 | ) | (110 | ) | (107 | ) | (106 | ) | (235 | ) | (62 | ) | (55 | ) | (58 | ) | (60 | ) |
Restructuring and other items |
(54 | ) | (24 | ) | (30 | ) | (5 | ) | 5 | (1,219 | ) | (123 | ) | (1,080 | ) | (13 | ) | (3 | ) | |
|
||||||||||||||||||||
Operating income (loss) |
3,755 | 884 | 908 | 981 | 982 | 2,695 | 731 | (13 | ) | 1,017 | 960 | |||||||||
Other income |
39 | | 15 | 13 | 11 | 183 | 20 | 114 | 19 | 30 | ||||||||||
Interest expense |
(827 | ) | (208 | ) | (207 | ) | (206 | ) | (206 | ) | (863 | ) | (212 | ) | (215 | ) | (216 | ) | (220 | ) |
|
||||||||||||||||||||
Pre-tax earnings (loss) |
2,967 | 676 | 716 | 788 | 787 | 2,015 | 539 | (114 | ) | 820 | 770 | |||||||||
Income taxes |
(743 | ) | (138 | ) | (198 | ) | (178 | ) | (229 | ) | (506 | ) | (140 | ) | 75 | (245 | ) | (196 | ) | |
Non-controlling interest |
(71 | ) | (22 | ) | (16 | ) | (17 | ) | (16 | ) | 9 | 8 | 2 | 9 | (10 | ) | ||||
|
||||||||||||||||||||
Net earnings (loss) before extraordinary gain |
2,153 | 516 | 502 | 593 | 542 | 1,518 | 407 | (37 | ) | 584 | 564 | |||||||||
Extraordinary gain |
| | | | | 69 | 69 | | | | ||||||||||
|
||||||||||||||||||||
Net earnings |
2,153 | 516 | 502 | 593 | 542 | 1,587 | 476 | (37 | ) | 584 | 564 | |||||||||
Dividends on preferred shares |
(55 | ) | (14 | ) | (14 | ) | (13 | ) | (14 | ) | (60 | ) | (11 | ) | (16 | ) | (17 | ) | (16 | ) |
|
||||||||||||||||||||
Net earnings applicable to common shares |
2,098 | 502 | 488 | 580 | 528 | 1,527 | 465 | (53 | ) | 567 | 548 | |||||||||
|
||||||||||||||||||||
Other information |
||||||||||||||||||||
Cash flow information |
||||||||||||||||||||
Free Cash Flow (FCF) (2) |
||||||||||||||||||||
Cash from operating activities |
5,508 | 1,630 | 1,551 | 1,467 | 860 | 5,333 | 1,293 | 1,756 | 1,089 | 1,195 | ||||||||||
Capital expenditures |
(3,122 | ) | (736 | ) | (873 | ) | (847 | ) | (666 | ) | (3,026 | ) | (985 | ) | (736 | ) | (715 | ) | (590 | ) |
Dividends and distributions |
(1,747 | ) | (404 | ) | (468 | ) | (453 | ) | (422 | ) | (1,736 | ) | (351 | ) | (445 | ) | (437 | ) | (503 | ) |
Other investing items |
5 | 1 | 4 | 4 | (4 | ) | (15 | ) | (8 | ) | 1 | (1 | ) | (7 | ) | |||||
|
||||||||||||||||||||
Total |
644 | 491 | 214 | 171 | (232 | ) | 556 | (51 | ) | 576 | (64 | ) | 95 | |||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Capital expenditures as a percentage of revenues (%) |
18.1% | 16.5% | 20.2% | 19.9% | 15.8% | 18.0% | 22.9% | 17.5% | 17.1% | 14.4% |
Balance Sheet Information |
Dec. 31 | Sept. 30 | June 30 | March 31 | Dec. 31 | |||||
|
2005 | 2005 | 2005 | 2005 | 2004 | |||||
|
||||||||||
Net Debt |
||||||||||
Long-term debt |
10,177 | 10,171 | 10,023 | 9,657 | 9,166 | |||||
Debt due within one year |
836 | 1,365 | 1,500 | 1,634 | 1,352 | |||||
Less: Cash and cash equivalents |
(233 | ) | (298 | ) | (169 | ) | (308 | ) | (32 | ) |
|
||||||||||
Total Net Debt |
10,780 | 11,238 | 11,354 | 10,983 | 10,486 | |||||
Non-controlling interest |
1,212 | 1,125 | 1,162 | 1,202 | 1,229 | |||||
Total shareholders equity |
10,135 | 10,067 | 9,957 | 9,796 | 9,670 | |||||
|
||||||||||
Total Capitalization |
22,127 | 22,430 | 22,473 | 21,981 | 21,385 | |||||
|
||||||||||
|
||||||||||
Net Debt: Total Capitalization |
48.7% | 50.1% | 50.5% | 50.0% | 49.0% | |||||
Net Debt : Trailing 12 month EBITDA |
1.50 | 1.57 | 1.58 | 1.53 | 1.47 | |||||
EBITDA : Interest (trailing 12 month) |
8.69 | 8.59 | 8.57 | 8.45 | 8.24 |
29 Bell Canada Enterprises Q4 Investor Briefing
Supplementary Financial Information
Bell Canada Consolidated (1)
Statistical Data
|
Q4 | Q4 | Total | Total | ||||||||
|
2005 | 2004 | % change | 2005 | 2004 | % change | ||||||
|
||||||||||||
Wireline |
||||||||||||
Local |
||||||||||||
Network access services (k) |
||||||||||||
Residential |
7,985 | 8,392 | (4.8% | ) | 7,985 | 8,392 | (4.8% | ) | ||||
Business |
4,596 | 4,513 | 1.8% | 4,596 | 4,513 | 1.8% | ||||||
|
||||||||||||
Total |
12,581 | 12,905 | (2.5% | ) | 12,581 | 12,905 | (2.5% | ) | ||||
|
||||||||||||
SmartTouch feature revenues ($M) |
217 | 233 | (6.9% | ) | 890 | 939 | (5.2% | ) | ||||
|
||||||||||||
Long Distance (LD) |
||||||||||||
Conversation minutes (M) |
4,567 | 4,559 | 0.2% | 18,306 | 18,070 | 1.3% | ||||||
Average revenue per minute ($) |
0.096 | 0.109 | (11.9% | ) | 0.102 | 0.117 | (12.8% | ) | ||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
Data |
||||||||||||
Equivalent access lines (9) (k) Ontario and Quebec |
||||||||||||
Digital equivalent access lines (k) |
5,034 | 4,335 | 16.1% | 5,034 | 4,335 | 16.1% | ||||||
Internet subscribers (10) (k) |
||||||||||||
High Speed Internet net activations (k) |
61 | 91 | (33.0% | ) | 387 | 350 | 10.6% | |||||
High Speed Internet subscribers (k) |
2,195 | 1,808 | 21.4% | 2,195 | 1,808 | 21.4% | ||||||
Dial-up Internet subscribers (k) |
586 | 743 | (21.1% | ) | 586 | 743 | (21.1% | ) | ||||
|
||||||||||||
|
2,781 | 2,551 | 9.0% | 2,781 | 2,551 | 9.0% | ||||||
|
||||||||||||
|
||||||||||||
|
||||||||||||
Wireless |
||||||||||||
Cellular & PCS net activations (k) |
||||||||||||
Pre-paid |
83 | 88 | (5.7% | ) | 227 | 142 | 59.9% | |||||
Post-paid |
127 | 129 | (1.6% | ) | 289 | 371 | (22.1% | ) | ||||
|
||||||||||||
|
210 | 217 | (3.2% | ) | 516 | 513 | 0.6% | |||||
Cellular & PCS subscribers (k) |
||||||||||||
Pre-paid |
1,428 | 1,201 | 18.9% | 1,428 |