Cancom Achieves Significant Revenue Growth In Fiscal 1996.MISSISSAUGA Mississauga (mĭsĭsaw`gə), city (1991 pop. 463,388), S Ont., Canada, 12 mi (20 km) W of Toronto on Lake Ontario. A residential suburb of Toronto and a growing transportation and industrial center, it is one of Canada's fastest-growing , Ontario--(BUSINESS WIRE)--Oct. 31, 1996--(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). SAT., ME SAT. ) Cancom (Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Satellite Communications Inc.) continues to make further gains. In the twelve month period ended August 31, 1996, revenues increased 18 percent reaching $91.4 million, compared with $77.7 million for 1995. These increased revenues are attributable to continued strong performance from the Mobile and InfiNet units of Cancom Business Networks which accounted for $13.5 million or 98 percent of the increase. Net income of $7.0 million or $0.70 per common share was unchanged from fiscal 1995 due to the growth in the Business Division which operates at lower margins than the Broadcast Division, an increase in depreciation expense and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs of converting the Broadcast Division to digital technology. Cash flow derived from operations increased 16 percent compared to last year, rising to $17.2 million or $1.72 per share from $14.9 million or $1.49 per share. As a result of an increase in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying end a year end tax payment of $4.0 million,cash flow after working capital changes declined to $8.4 million or $0.84 per share versus $20.6 million or $2.06 per share last year. The Directors are pleased to declare a quarterly dividend of $0.06 per share. This quarter's dividend will be paid on outstanding common shares of the corporation on November 30, 1996, to shareholders of record at the close of business on November 15, 1996. Alain Gourd gourd (gôrd, g  rd), common name for some members of the Cucurbitaceae, a family of plants whose range includes all tropical and subtropical areas and extends into the temperate zones. , Cancom's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated: "This has been
a year of important achievements through a transition that has
reinforced Cancom's foundations. We now have leading-edge
technology, competitive pricing, and long-term Long-termThree or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. agreements that ensure we can look forward to solid long-term growth." HIGHLIGHTS OF FISCAL YEAR 1996 - Programming Services secured five year contracts with 70 per cent of its cable affiliates, representing 60 per cent of its channel subscriptions. Channel subscriptions (calculated by multiplying mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. the number of households reached by the number of Cancom signals taken) increased from 10.3 million to 11.6 million and the number of households receiving at least one signal sold by Cancom went from 3.5 million to 3.7 million. - Cancom Mobile has contracted to service more than 40 of Canada's top 100 trucking companies and supports more than 90 per cent of Canadian trucking companies that use mobile data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. . - The Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Outpost Network developed during 1996, exceeded expectations and is adopted in more than 25 communities in Canada with plans for significant market share in the remote/rural niche in 1997. - Cancom Business Television almost doubled its Canadian and U.S. private network business; became the exclusive distributor in Canada for the leading ONE TOUCH satellite interactive distance learning (SIDL SIDL System Identification Data List SIDL Secure Interactive Distance Learning ) systems; purchased 50 per cent of Insight Information Inc., leader in conferences and courses for professionals and executives; and started building in downtown Toronto Downtown Toronto is the heart of the City of Toronto, Ontario, Canada. It is approximately bounded by Bloor Street (including areas slightly north of Bloor around Yonge Street) to the north, Lake Ontario to the south, Bayview Avenue - Don Valley Parkway to the east, and Bathurst Canada's first business television studio totally dedicated to satellite business communications. With Stentor Stentor Greek herald with voice of 50 men. [Gk. Myth.: Espy, 39] See : Loudness , it built a 183 site SIDL network for Human Resources Development Canada “HRDC” redirects here. For other uses, see HRDC (disambiguation). The Department of Human Resources Development, also referred to as Human Resources Development Canada (HRDC), is a former department of the Government of Canada. , which was switched on in May, ahead of schedule. NEW BUSINESS OPPORTUNITIES - On October 30, Industry Canada Industry Canada is the department of the Government of Canada with responsibility for regional economic development, investment, and innovation/research and development. The department employs 6104 FTEs across Canada. granted Regional Vision, of which Cancom holds 49 per cent, a license to be the sole provider in 127 communities in remote and underserved regions of Canada of the new LMCS LMCS Local Multipoint Communication Systems LMCS Lockheed Martin Control Systems LMCS Light Modular Causeway System LMCS Loan Management and Control System LMCS Lake Michigan Carferry Service, Inc. LMCS Logical Methods in Computer Science (Local Multipoint Communications Systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. ) wireless telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. technology capable of carrying basic and advanced communications services. - Cancom owns 24 per cent of the new specialty channel A specialty channel (or speciality channel) is a television channel which consists of programming focused on a single type or targeted at a specific demographic. ROBTv (Report on Business Television) licensed by the CRTC CRTC Canadian Radio-Television & Telecommunications Commission CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column to broadcast up-to-the-minute financial news and data to homes and businesses across Canada Across Canada was an afternoon program that formerly aired on The Weather Network. The segment ran from early 1999 until mid 2002. The show ran from 3:00PM ET until 7:00 PM ET. . - Cancom has concluded a five year affiliation agreement with ExpressVu to provide various television programming channels to ExpressVu's direct-to-home operations on launch of service. - Cancom owns 10 per cent of Digital Renaissance Inc., a new- media engineering company, which recently launched a new multi-media software product - "TAG" - in collaboration Working together on a project. See collaborative software. with Seattle-based Microsoft Corporation (company) Microsoft Corporation - The biggest supplier of operating systems and other software for IBM PC compatibles. Software products include MS-DOS, Microsoft Windows, Windows NT, Microsoft Access, LAN Manager, MS Client, SQL Server, Open Data Base Connectivity (ODBC), MS Mail, . - Audio Digital Skyway sky·way n. 1. A route regularly used by airplanes; an air lane. 2. An elevated highway. Noun 1. skyway - a designated route followed by airplanes in flying from one airport to another was officially launched in March 1996, with uplinking from Vancouver, Calgary, Winnipeg, Mississauga and Ottawa. By June it had exceeded its initial target and was distributing news and music to more than 200 English-language radio station affiliates located in every province and territory\ -0-
CANADIAN SATELLITE COMMUNICATIONS INC.
Consolidated Balance Sheets
August 31, 1996 and August 31, 1995
(in thousands of dollars)
1996 1995
(unaudited) (audited)
ASSETS
Current assets
Cash $1,222 $1,608
Accounts receivable 16,526 13,074
Inventories 3,432 8,055
Prepaid expenses, deposits
and other 1,685 1,280
Income taxes recoverable 756 --
-------- --------
23,621 24,017
Fixed assets, net 40,120 29,822
Development projects, net 3,268 4,062
Investments 4,188 2,280
Other assets 2,088 1,148
-------- --------
$73,285 $61,329
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued
liabilities 9,835 13,609
Income taxes payable -- 4,004
Unearned revenue 1,907 2,539
-------- --------
11,742 20,152
Long-term debt 15,000 --
Other long-term obligations 256 --
Deferred income taxes 303 88
Shareholders' equity
Capital stock 37,620 37,620
Retained earnings 8,364 3,469
-------- --------
45,984 41,089
-------- --------
73,285 61,329
-------- --------
CANADIAN SATELLITE COMMUNICATIONS INC.
Consolidated Statements of Income
Years ended August 31, 1996 and 1995
(unaudited) 1996 1995
(in thousands of dollars)
Revenues
Signal and service $63,479 $59,857
Equipment and other 27,936 17,801
-------- --------
91,415 77,658
Direct costs
Signal and service 23,528 23,622
Equipment and other 19,057 13,458
-------- --------
42,585 37,080
-------- --------
48,830 40,578
Administration and selling
expenses 24,565 19,667
Depreciation and amortization 10,302 7,525
Interest expense 900 98
-------- --------
35,767 27,290
-------- --------
Income before income taxes 13,063 13,288
Income taxes
Current 5,865 5,801
Deferred 215 523
-------- --------
6,080 6,324
-------- --------
Net income $ 6,983 $ 6,964
-------- --------
Net income per common share $ 0.70 $ 0.70
-------- --------
CANADIAN SATELLITE COMMUNICATIONS INC.
Consolidated Statements of Cash Flow
Years ended August 31, 1996 and 1995
(unaudited) 1996 1995
(in thousands of dollars)
Cash provided by (used for)
Operations
Net income $6,983 $6,964
Items not involving cash
Depreciation and
amortization 9,508 6,748
Amortization of development
projects 794 777
Deferred income taxes 215 523
Other (260) (140)
-------- --------
Cash flow derived from operations 17,240 14,872
Change in non-cash operating
working capital (8,846) 5,773
-------- --------
Cash flow from operations 8,394 20,645
Financing activities
Common share dividends (2,088) (1,989)
Increase in long-term debt 15,000 --
Increase in other long-term
obligations 256 --
-------- --------
13,168 (1,989)
Investment activities
Fixed asset additions (21,354) (10,448)
Investments (2,216) (4,350)
Proceeds on disposal of fixed
assets 2,139 477
Other (517) (383)
-------- --------
(21,948) (14,704)
-------- --------
Increase (decrease) in cash (386) 3,952
Cash (bank indebtedness),
beginning of period 1,608 (2,344)
-------- --------
Cash (bank indebtedness),
end of period $1,222 $1,608
-------- --------
Cash flow derived from operations
per common share $1.72 $1.49
Cash flow from operations
per common share $0.84 $2.06
-------- --------
CONTACT: CANCOM Canadian Satellite Communications Inc. Colley Clarke, 905/ 272-6609 cclarke@cancom.ca (e-mail) or CANCOM Canadian Satellite Communications Inc. Patricia Dumas, 905/ 272-6603 (613) 232-4814 pdumas@cancom.ca (e-mail) |
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