Winnipeg Free Press - ONLINE EDITION

MTS reports declines for third quarter

  • Print

Manitoba Telecom Services Inc. incurred a number of costs and a sluggish financial performance in the third quarter ending Sept. 30, 2013 some of which was a result the federal government’s rejection of the sale of its Allstream unit to Accelero last month.

On Thursday the company reported declines in revenue, EBITDA and earnings per share.

Revenue for the quarter was $408.4 million down 3.7 per cent, EBITDA (earnings before interest, taxes, depreciation and amortization) was $142.7 million down two per cent and earnings per share was 38 cents down 24 per cent.

The company declared $0.425 per share cash dividend for the quarter.

MTS CEO Pierre Blouin, said, "While we are disappointed in the government’s decision to reject the sale of Allstream, the company goes forward with a solid 2014 outlook and an attractive dividend fully supported by strong and growing free cash flow from our incumbent position in Manitoba, combined with interesting growth opportunities at Allstream."

The company incurred a combination of non-recoverable, transaction and restructuring costs associated with the proposed sale of Allstream amounting to $21.7 million during the nine months ended September 30, 2013. A further $13 million is anticipated to be recorded in the fourth quarter of 2013.

Additionally, there will be a lower depreciation and amortization expense of $31.5 million for the nine months ended September 30, 2013 ($9.3 million and $22.2 million for the second and third quarters of 2013, respectively).

The deposit of $55 million that had been held in escrow pending the close of the Allstream transaction has been returned to Accelero.

The company is contemplating an equity offering to prepay its solvency funding requirements for the coming years. In the absence of prefunding, the company’s cash solvency requirement for 2014 would be approximately $55 million.

MTS shares were up nine cents on Thursday to $29.49

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Family of Matias De Antonio speaks outside Law Courts

View more like this

Photo Store Gallery

  • A young gosling flaps his wings after taking a bath in the duck pond at St Vital Park Tuesday morning- - Day 21– June 12, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Marc Gallant / Winnipeg Free Press.  Local/Standup- Morning Fog. Horse prances in field by McPhillips Road, north of Winnipeg. 060605.

View More Gallery Photos

Poll

Do you agree with the province’s crackdown on flavoured tobacco products?

View Results

View Related Story

Ads by Google