Press release

Shaw announces fourth quarter and full year financial and operating results and preliminary fiscal 2014 guidance

October 24, 2013

  • Fourth quarter consolidated revenues improved 3% and operating income before amortization of $496 million was comparable to last year. On a full year basis revenues improved 3% to $5.14 billion and operating income before amortization was up over 4% to $2.22 billion.
  • Net income was $117 million for the quarter or $0.24 per share. On an annual basis net income increased 3% over last year to $784 million, or $1.64 per share.
  • 2014 preliminary financial guidance announced with consolidated free cash flow expected to range from $625 million to $650 million

Calgary, Alberta (October 24, 2013) — Shaw Communications Inc. announced consolidated financial and operating results for the fourth quarter and year ended August 31, 2013. Consolidated revenue for the current three and twelve month periods of $1.25 billion and $5.14 billion, respectively, were each up 3% over the comparable periods last year. Total operating income before amortization1 for the quarter of $496 million was comparable to $501 million last year and the annual period improved 4% to $2.22 billion.

Free cash flow1 for the three and twelve month periods of $61 million and $604 million, respectively, compared to $103 million and $482 million for the same periods last year. The current quarterly period had higher capital investment compared to the prior quarter, while the improvement in the current annual period was due to improved operating income before amortization and lower capital investment.

Chief Executive Officer Brad Shaw said, "Our fiscal 2013 results reflect healthy financial growth as we focus on sustainable subscriber acquisition, customer experience and operational execution. Our continued investments in technology, including expansion of Shaw Go WiFi - now with over 20,000 locations; additional apps supporting our TV everywhere service with the launch of Global Go; and, the Anik G1 satellite launch with the addition of over 140 new channels in Shaw Direct, continue to deliver innovation, choice and value to our customers."

Net income of $117 million or $0.24 per share for the quarter ended August 31, 2013 compared to $133 million or $0.28 per share for the same period last year. Net income for the annual period was $784 million or $1.64 per share compared to $761 million or $1.62 per share in the prior year. The annual net income improvement was primarily due to increased operating income and a gain on the sale of the Hamilton cable system partially offset by higher income taxes.

Revenue in the Cable division of $818 million and $3.27 billion for the current three and twelve month periods, respectively, each improved 2% over the comparable periods. Operating income before amortization for the quarter of $396 million was consistent with the same quarter last year and the twelve month period improved 5% to $1.58 billion.

Satellite revenue of $219 million and $860 million for the three and twelve month periods, respectively, compared to $213 million and $844 million in the same periods last year. Operating income before amortization for the current quarter was $66 million compared to $77 million last year and the twelve month amount of $285 million declined from $293 million in the prior year.

Revenue and operating income before amortization in the Media division for the quarter of $231 million and $34 million, respectively, increased 6% and 21% over the same period last year. On a full-year basis Media revenue and operating income before amortization of $1.11 billion and $353 million improved 5% and 6%, respectively.

Looking forward Mr. Shaw said, "We expect the environment to remain challenging over the coming year and with that backdrop we will continue to execute on our strategy that extends our leadership in core areas including internet, programming, and customer experience service delivery. On a preliminary basis, for fiscal 2014 we expect consolidated revenue and operating income before amortization growth, after adjusting for the net impact of fiscal 2013 acquisition and disposition activity, to range from 2% to 4%. We expect a marginal decline in capital investment, excluding capital investment funded through the accelerated capital fund, and an increase in cash taxes. Free cash flow is expected to range from $625 million to $650 million."

"We enter fiscal 2014 with a solid balance sheet and healthy liquidity position providing the financial flexibility to invest in our business and support the return of cash to shareholders. We see opportunities ahead as we continue to leverage our distribution and programming businesses driving innovation and operational efficiencies."

The accompanying Management's Discussion and Analysis forms part of this news release and the "Caution Concerning Forward Looking Statements" applies to all forward-looking statements made in this news release.

1 See definitions and discussion under Key Performance Drivers in MD&A.

About Shaw

Shaw Communications Inc. is a diversified communications and media company, providing consumers with broadband cable television, High-Speed Internet, Home Phone, telecommunications services (through Shaw Business), satellite direct-to-home services (through Shaw Direct) and engaging programming content (through Shaw Media). Shaw serves 3.3 million customers, through a reliable and extensive fibre network. Shaw Media operates one of the largest conventional television networks in Canada, Global Television, and 19 specialty networks including HGTV Canada, Food Network Canada, History Television and Showcase. Shaw is traded on the Toronto and New York stock exchanges and is included in the S&P/TSX 60 Index (Symbol: TSX – SJR.B, NYSE – SJR). For more information about Shaw, please visit www.shaw.ca

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