HALIFAX, May 6 /CNW/ - Bell Aliant Regional Communications Income Fund ("Bell Aliant" or the "Fund")(1) (TSX: BA.UN) today reported distributions to its unitholders of $91.2 million or $0.718 per unit for the quarter ended March 31, 2008.
Bell Aliant Holdings LP's first quarter financial highlights(2) are as
follows:
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(In millions of dollars) Q1 2008 Q1 2007 Percentage Change
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Operating Revenue $865.4 $851.4 1.6%
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EBITDA(3) 355.1 349.5 1.6%
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Capital Expenditures 95.1 115.3 (17.5%)
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Distributable Cash(4) 206.8 192.1 7.7%
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"Our first quarter revenue and EBITDA grew 1.6 per cent over the same
period in 2007," said Stephen Wetmore, President and Chief Executive Officer.
"Our productivity programs are working to maintain margins as our revenue mix
changes with declines in year over year local and long distance revenues
continuing to be more than offset with growth in IT and Internet revenues.
We've welcomed KMTS to our organization this quarter and we look forward to
growing our combined businesses together."
Highlights of the first quarter of 2008 include the following:
- Operating revenue increased $14.0 million (1.6 per cent) in the first
quarter of 2008 compared to the same period a year ago with strong
growth in Information Technology (IT) and Internet revenues.
- Internet revenue grew by $8.3 million in the first quarter of 2008
compared to the same period in 2007, with high-speed Internet
subscribers growing 14.6 per cent from a year earlier.
- IT revenue increased by $16.6 million in the quarter compared to the
same period last year, as previously deferred revenues associated with
a major health care services contract were recognized in the first
quarter of 2008.
- Local service and long distance revenue declined by $8.4 million
(2.4 per cent) and $2.5 million (2.2 per cent), respectively, in the
first quarter of 2008 compared to the first quarter in 2007. Network
access services ("NAS") declined by 22,592, net of the additions from
KMTS, to end the quarter 3.3 per cent lower than a year ago.
- Higher revenues, cost containment achieved through productivity
improvements and lower provincial capital taxes resulted in an EBITDA
increase of $5.6 million (1.6 per cent) in the first quarter of 2008
over the same period a year ago.
- Capital expenditures in the first quarter were $95.1 million, down
$20.2 million from the same quarter in 2007. With the completion of the
accelerated FTTN build out plan in 2007, Bell Aliant's planned overall
capital program for 2008 is approximately $40 million lower than last
year. This planned decline in capital spending, combined with winter
weather-related delays in completing outdoor projects, contributed to
the decline in first quarter 2008 capital expenditures compared to the
first quarter of 2007.
- Distributable cash increased by $14.7 million (7.7 per cent) in the
first quarter of 2008 from the same period 2007, primarily as a result
of EBITDA growth and reduced capital expenditures, offset by the lack
of distributable cash generated from the directory services business
sold in April 2007.
- As announced earlier this year, Bell Aliant increased distributions by
2.8 per cent to $0.2417 per unit per month ($2.90 per unit per annum)
effective with the February 2008 distribution.
Analyst conference call
A conference call with the financial community is scheduled for Wednesday,
May 7, 2008 at 9:00 a.m. (Eastern). The dial-in numbers are (866) 862-3915 or
(416) 641-6110 for Toronto area participants. Media are invited to attend in a
listen-only mode. The title of the call is "Bell Aliant First Quarter 2008
Financial Results." A replay of the session can be heard from May 7 to May 21.
To access the replay, dial (800) 408-3053 or (416) 695-5800 and enter the
passcode 3257707(number sign).
A live audio webcast of the conference call can be accessed on
www.bell.aliant.ca under the Investor Relations section. A replay of the
conference call will be available on the website for one year.
Forward-looking Statements
This news release contains forward-looking statements concerning
anticipated future events, results, circumstances or expectations. Unless
otherwise indicated, such forward-looking statements describe management's
expectations at May 6, 2008. These statements are based on management's
beliefs regarding future events, many of which, by their nature are inherently
uncertain and beyond management's control. These statements are not guarantees
of future performance and are subject to numerous risks and uncertainties
which are difficult to predict and assumptions which may prove to be
inaccurate.
Many factors could cause results or events to differ materially from
current expectations. A number of assumptions are also made in making
forward-looking statements, such as economic assumptions, market assumptions,
financial and operational assumptions and assumptions about the execution of
certain transactions. Please refer to Bell Aliant's Notice Concerning
Forward-looking Statements dated February 5, 2008, as well as the Fund's and
Bell Aliant Holdings LP's management's discussion and analysis and annual
information forms for the year ended December 31, 2007, which are available at
www.bell.aliant.ca or at www.sedar.com, for a detailed discussion of these key
risk factors and assumptions.
Should any factor impact Bell Aliant in an unexpected manner, or should
assumptions underlying the forward-looking statements prove incorrect, the
actual results or events may differ materially from the results or events
predicted. All of the forward-looking statements made in this press release
are qualified by these cautionary statements, and there can be no assurance
that the results or developments anticipated by Bell Aliant will be realized
or, even if substantially realized, that they will have the expected
consequences for Bell Aliant.
Except as may be required by Canadian securities laws, we disclaim any
intention and assume no obligation to update or revise any forward-looking
statement even if new information becomes available, as a result of future
events or for any other reason. Readers should not place undue reliance on any
forward-looking statements. Forward-looking statements are provided for the
purpose of providing information about management's current expectations and
plans relating to fiscal 2008. Readers are cautioned that such information may
not be appropriate for other purposes.
About Bell Aliant
Bell Aliant (TSX: BA.UN) is one of North America's largest regional
communications providers. Through its operating entities it serves customers
in six Canadian provinces with innovative information, communication and
technology services including voice, data, Internet, video and value-added
business solutions. Through its xwave offices, Bell Aliant also provides IT
professional services in Canada and the US. Bell Aliant's 10,000 employees are
committed to deliver the highest quality of customer service, choice and
convenience.
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(1) Bell Aliant derives all of its income from its indirect ownership in
Bell Aliant Regional Communications Holdings, Limited Partnership
("Bell Aliant Holdings LP"). Bell Aliant Holdings LP's results
combine the results of Bell Aliant Regional Communications, Limited
Partnership (Bell Aliant LP), Telebec, Limited Partnership (Telebec)
and NorthernTel, Limited Partnership (NorthernTel).
(2) On February 1, 2008, Bell Aliant LP completed the acquisition of the
assets and operations of Kenora Municipal Telephone System (KMTS).
Bell Aliant Holdings LP's financial results and subscriber metrics
include KMTS data from that date onward.
(3) Bell Aliant defines EBITDA, a non-GAAP measure, as earnings before
interest, income taxes, depreciation and amortization expense, net
benefit plans cost, and restructuring and other charges.
(4) Bell Aliant defines distributable cash, a non-GAAP measure, as cash
from operating activities plus operating items funded through cash
reserves or borrowings, such as working capital, pension deficit
funding, restructuring costs and cash taxes in excess of normalized
levels, plus amounts for current income tax provisions, less capital
expenditures, and the portion of distributable cash attributable to
minority holders (other than Bell Canada and BCE Inc.) in controlled
subsidiaries.
%SEDAR: 00023938EF
