EX-99.2 3 supp_q112.htm SUPPLEMENTARY FINANCIAL INFORMATION - FIRST QUARTER 2012 Supplementary Financial Information

EXHIBIT 99.2

 

 

 

BCE Inc. (1)
Consolidated Operational Data

($ millions of Canadian dollars, except per share amounts) (unaudited) 

   Q1
2012		     Q1
2011		       $ change   % change  

Operating revenues 

   4,909     4,466       443   9.9 % 

Operating costs (A) 

   (2,916 )    (2,574 )      (342 )  (13.3 %) 

Pension current service costs 

   (66 )    (59 )      (7 )  (11.9 %) 

EBITDA (3) 

   1,927     1,833       94   5.1 % 

EBITDA margin (4) 

  

39.3

 %   

41.0

 %         

(1.7

 ) pts 

Severance, acquisition and other costs 

   (19 )    (61 )      42   68.9 % 

Depreciation 

   (644 )    (611 )      (33 )  (5.4 %) 

Amortization 

   (181 )    (179 )      (2 )  (1.1 %) 

Finance costs 

                        

Interest expense 

   (204 )    (191 )      (13 )  (6.8 %) 

Interest on employee benefit obligations 

   (243 )    (242 )      (1 )  (0.4 %) 

Expected return on pension plan assets 

   267     254       13   5.1 % 

Other expense 

   (20 )    (22 )      2   9.1 % 

Earnings before income taxes 

   883     781       102   13.1 % 

Income taxes 

   (207 )    (199 )      (8 )  (4.0 %) 

Net earnings 

   676     582       94   16.2 % 

Net earnings attributable to: 

                        

Common shareholders 

   574     503       71   14.1 % 

Preferred shareholders 

   35     29       6   20.7 % 

Non-controlling interest 

   67     50       17   34.0 % 

Net earnings 

   676     582       94   16.2 % 

Net earnings per common share – basic 

 $  0.74   $  0.67     $  0.07   10.4 % 

Net earnings per common share – diluted 

 $  0.74   $  0.67     $  0.07   10.4 % 

Dividends per common share 

 $  0.5425   $  0.4925     $  0.05   10.2 % 

Average number of common shares outstanding – basic (millions) 

   774.3     752.9              

Average number of common shares outstanding – diluted (millions) 

   774.7     753.5              

Number of common shares outstanding (millions) 

   773.6     754.1              

Adjusted Net Earnings and EPS 

                        

Net earnings attributable to common shareholders 

   574     503       71   14.1 % 

Severance, acquisition and other costs 

   14     40       (26 )  (65.0 %) 

Net gains on investments 

   (8 )    -       (8 )  n.m.  

Adjusted net earnings attributable to common shareholders (3)

   580     543       37   6.8 % 

Impact on net earnings per share 

 $  0.01   $  0.05     $  (0.04 )  (80.0 %) 

Adjusted EPS (3) 

 $  0.75   $  0.72     $  0.03   4.2 % 
                         

 

(A)

Excludes pension current service costs

n.m. : not meaningful

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 2

BCE Inc.
Consolidated Operational Data – Historical Trend

($ millions of Canadian dollars, except per share amounts) (unaudited) 

   Q1 12       Total
2011		       Q4 11     Q3 11     Q2 11     Q1 11  

Operating revenues 

   4,909       19,497       5,166     4,910     4,955     4,466  

Operating costs (A) 

   (2,916 )      (11,627 )      (3,238 )    (2,907 )    (2,908 )    (2,574 ) 

Pension current service costs 

   (66 )      (241 )      (59 )    (62 )    (61 )    (59 ) 

EBITDA 

   1,927       7,629       1,869     1,941     1,986     1,833  

EBITDA margin 

  

39.3

 %     

39.1

 %     

36.2

 %   

39.5

 %   

40.1

 %   

41.0

 % 

Severance, acquisition and other costs 

   (19 )      (409 )      1     (130 )    (219 )    (61 ) 

Depreciation 

   (644 )      (2,538 )      (661 )    (628 )    (638 )    (611 ) 

Amortization 

   (181 )      (723 )      (181 )    (180 )    (183 )    (179 ) 

Finance costs 

                                        

Interest expense 

   (204 )      (842 )      (215 )    (210 )    (226 )    (191 ) 

Interest on employee benefit obligations 

   (243 )      (984 )      (248 )    (247 )    (247 )    (242 ) 

Expected return on pension plan assets 

   267       1,032       260     259     259     254  

Other (expense) income 

   (20 )      129       (5 )    11     145     (22 ) 

Earnings before income taxes 

   883       3,294       820     816     877     781  

Income taxes 

   (207 )      (720 )      (247 )    (80 )    (194 )    (199 ) 

Net earnings 

   676       2,574       573     736     683     582  

Net earnings attributable to: 

                                        

Common shareholders 

   574       2,221       486     642     590     503  

Preferred shareholders 

   35       119       26     33     31     29  

Non-controlling interest 

   67       234       61     61     62     50  

Net earnings 

   676       2,574       573     736     683     582  

Net earnings per common share – basic 

 $  0.74     $  2.88     $  0.62   $  0.83   $  0.76   $  0.67  

Net earnings per common share – diluted 

 $  0.74     $  2.88     $  0.62   $  0.83   $  0.76   $  0.67  

Dividends per common share 

 $  0.5425     $  2.0450     $  0.5175   $  0.5175   $  0.5175   $  0.4925  

Average number of common shares outstanding – basic (millions) 

   774.3       771.4       778.1     777.6     776.6     752.9  

Average number of common shares outstanding – diluted (millions) 

   774.7       771.8       778.7     778.2     777.1     753.5  

Number of common shares outstanding (millions) 

   773.6       775.4       775.4     778.0     777.5     754.1  

Adjusted Net Earnings and EPS 

                                        

Net earnings attributable to common shareholders 

   574       2,221       486     642     590     503  

Severance, acquisition and other costs 

   14       282       (2 )    82     162     40  

Net gains on investments 

   (8 )      (89 )      -     -     (89 )    -  

Adjusted net earnings attributable to common shareholders 

   580       2,414       484     724     663     543  

Impact on net earnings per share 

 $  0.01     $  0.25     $  -   $  0.10   $  0.10   $  0.05  

Adjusted EPS 

 $  0.75     $  3.13     $  0.62   $  0.93   $  0.86   $  0.72  

 

(A)

Excludes pension current service costs

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 3

BCE Inc.
Segmented Data (2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1
2012		   Q1
2011		     $ change   % change  
                   

Revenues 

                  

Bell Wireline 

 2,579   2,672     (93 )  (3.5 %) 

Bell Wireless 

 1,320   1,251     69   5.5 % 

Bell Media 

 512   -     512   n.m.  

Inter-segment eliminations 

 (78 )  (41 )    (37 )  (90.2 %) 

Total Bell 

 4,333   3,882     451   11.6 % 

Bell Aliant 

 682   682     -   0.0 % 

Inter-segment eliminations 

 (106 )  (98 )    (8 )  (8.2 %) 

Total BCE Inc. 

 4,909   4,466     443   9.9 % 
                   

Operating costs 

                  

Bell Wireline 

 (1,576 )  (1,628 )    52   3.2 % 

Bell Wireless 

 (799 )  (790 )    (9 )  (1.1 %) 

Bell Media 

 (431 )  -     (431 )  n.m.  

Inter-segment eliminations 

 78   41     37   90.2 % 

Total Bell 

 (2,728 )  (2,377 )    (351 )  (14.8 %) 

Bell Aliant 

 (360 )  (354 )    (6 )  (1.7 %) 

Inter-segment eliminations 

 106   98     8   8.2 % 

Total BCE Inc. 

 (2,982 )  (2,633 )    (349 )  (13.3 %) 
                   

EBITDA 

                  

Bell Wireline 

 1,003   1,044     (41 )  (3.9 %) 

Margin 

38.9

 % 

39.1

 %       

(0.2

 ) pts 

Bell Wireless 

 521   461     60   13.0 % 

Margin 

39.5

 % 

36.9

 %       

2.6

  pts 

Bell Media 

 81   -     81   n.m.  

Margin 

 15.8 %  n.m.         n.m.  

Total Bell 

 1,605   1,505     100   6.6 % 

Margin 

37.0

 % 

38.8

 %       

(1.8

 ) pts 

Bell Aliant 

 322   328     (6 )  (1.8 %) 

Margin 

47.2

 % 

48.1

 %       

(0.9

 ) pts 

Total BCE Inc. 

 1,927   1,833     94   5.1 % 

Margin 

39.3

 % 

41.0

 %       

(1.7

 ) pts 

Capital expenditures 

                  

Bell Wireline 

 532   402     (130 )  (32.3 %) 

Capital Intensity (5) 

20.6

 % 

15.0

 %       

(5.6

 ) pts 

Bell Wireless 

 136   113     (23 )  (20.4 %) 

Capital Intensity 

10.3

 % 

9.0

 %       

(1.3

 ) pts 

Bell Media 

 12   -     (12 )  n.m.  

Capital Intensity 

2.3

 %  n.m.         n.m.  

Total Bell 

 680   515     (165 )  (32.0 %) 

Capital Intensity 

15.7

 % 

13.3

 %       

(2.4

 ) pts 

Bell Aliant 

 137   119     (18 )  (15.1 %) 

Capital Intensity 

20.1

 % 

17.4

 %       

(2.7

 ) pts 

Total BCE Inc. 

 817   634     (183 )  (28.9 %) 

Capital Intensity 

16.6

 % 

14.2

 %       

(2.4

 ) pts 
                   

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 4

BCE Inc.
Segmented Data – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1 12     Total
2011		     Q4 11   Q3 11   Q2 11   Q1 11  
                             

Revenues 

                            

Bell Wireline 

 2,579     10,621     2,709   2,610   2,630   2,672  

Bell Wireless 

 1,320     5,231     1,365   1,339   1,276   1,251  

Bell Media 

 512     1,542     578   435   529   -  

Inter-segment eliminations 

 (78 )    (261 )    (76 )  (71 )  (73 )  (41 ) 

Total Bell 

 4,333     17,133     4,576   4,313   4,362   3,882  

Bell Aliant 

 682     2,775     701   700   692   682  

Inter-segment eliminations 

 (106 )    (411 )    (111 )  (103 )  (99 )  (98 ) 

Total BCE Inc. 

 4,909     19,497     5,166   4,910   4,955   4,466  
                             

Operating costs 

                            

Bell Wireline 

 (1,576 )    (6,466 )    (1,712 )  (1,567 )  (1,559 )  (1,628 ) 

Bell Wireless 

 (799 )    (3,408 )    (944 )  (858 )  (816 )  (790 ) 

Bell Media 

 (431 )    (1,208 )    (448 )  (354 )  (406 )  -  

Inter-segment eliminations 

 78     261     76   71   73   41  

Total Bell 

 (2,728 )    (10,821 )    (3,028 )  (2,708 )  (2,708 )  (2,377 ) 

Bell Aliant 

 (360 )    (1,458 )    (380 )  (364 )  (360 )  (354 ) 

Inter-segment eliminations 

 106     411     111   103   99   98  

Total BCE Inc. 

 (2,982 )    (11,868 )    (3,297 )  (2,969 )  (2,969 )  (2,633 ) 
                             

EBITDA 

                            

Bell Wireline 

 1,003     4,155     997   1,043   1,071   1,044  

Margin 

38.9

 %   

39.1

 %   

36.8

 % 

40.0

 % 

40.7

 % 

39.1

 % 

Bell Wireless 

 521     1,823     421   481   460   461  

Margin 

39.5

 %   

34.8

 %   

30.8

 % 

35.9

 % 

36.1

 % 

36.9

 % 

Bell Media 

 81     334     130   81   123   -  

Margin 

15.8

 %   

21.7

 %   

22.5

 % 

18.6

 % 

23.3

 % 

n.m.

  

Total Bell 

 1,605     6,312     1,548   1,605   1,654   1,505  

Margin 

37.0

 %   

36.8

 %   

33.8

 % 

37.2

 % 

37.9

 % 

38.8

 % 

Bell Aliant 

 322     1,317     321   336   332   328  

Margin 

47.2

 %   

47.5

 %   

45.8

 % 

48.0

 % 

48.0

 % 

48.1

 % 

Total BCE Inc. 

 1,927     7,629     1,869   1,941   1,986   1,833  

Margin 

39.3

 %   

39.1

 %   

36.2

 % 

39.5

 % 

40.1

 % 

41.0

 % 

Capital expenditures 

                            

Bell Wireline 

 532     1,973     647   474   450   402  

Capital Intensity 

20.6

 %   

18.6

 %   

23.9

 % 

18.2

 % 

17.1

 % 

15.0

 % 

Bell Wireless 

 136     619     188   150   168   113  

Capital Intensity 

10.3

 %   

11.8

 %   

13.8

 % 

11.2

 % 

13.2

 % 

9.0

 % 

Bell Media 

 12     91     36   28   27   -  

Capital Intensity 

2.3

 %   

5.9

 %   

6.2

 % 

6.4

 % 

5.1

 % 

n.m.

  

Total Bell 

 680     2,683     871   652   645   515  

Capital Intensity 

15.7

 %   

15.7

 %   

19.0

 % 

15.1

 % 

14.8

 % 

13.3

 % 

Bell Aliant 

 137     573     137   162   155   119  

Capital Intensity 

20.1

 %   

20.6

 %   

19.5

 % 

23.1

 % 

22.4

 % 

17.4

 % 

Total BCE Inc. 

 817     3,256     1,008   814   800   634  

Capital Intensity 

16.6

 %   

16.7

 %   

19.5

 % 

16.6

 % 

16.1

 % 

14.2

 % 

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 5

Bell Wireline(2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1
2012		   Q1
2011		     % change  

Bell Wireline 

              

Local & access 

 678   729     (7.0 %) 

Long distance 

 212   234     (9.4 %) 

Data (A) 

 1,418   1,415     0.2 % 

Equipment & other 

 192   219     (12.3 %) 

Total external revenues 

 2,500   2,597     (3.7 %) 

Inter-segment revenues 

 79   75     5.3 % 

Total Bell Wireline operating revenues 

 2,579   2,672     (3.5 %) 

Operating costs 

 (1,576 )  (1,628 )    3.2 % 

EBITDA 

 1,003   1,044     (3.9 %) 

EBITDA Margin 

38.9

 % 

39.1

 %   

(0.2

 ) pts 
               

Capital expenditures 

 532   402     (32.3 %) 

Capital Intensity 

20.6

 % 

15.0

 %   

(5.6

 ) pts 
               

Local 

              

Network access services (NAS) 

              

Residential 

 3,205,002   3,544,600     (9.6 %) 

Business 

 2,800,124   2,871,862     (2.5 %) 

Total 

 6,005,126   6,416,462     (6.4 %) 

Network access service net (losses)/activations 

              

Residential 

 (71,119 )  (64,287 )    (10.6 %) 

Business 

 (25,411 )  5,044     n.m.  

Total 

 (96,530 )  (59,243 )    (62.9 %) 

Internet 

              

High Speed Internet net activations 

 12,393   13,161     (5.8 %) 

High Speed Internet subscribers EOP (B) 

 2,104,192   2,110,487     (0.3 %) 

TV 

              

Net subscriber activations (C) 

 17,623   8,058     n.m.  

Total subscribers EOP (C) (D) 

 2,111,675   2,043,416     3.3 % 

 

(A)

Starting in Q1 2012, we have included TV service revenues in data revenues to align with the reporting practices of our peers. As a result, we have restated prior period results within Bell Wireline. Our previously reported Wireline segment and consolidated results did not change as a result of this restatement.
(B)

At the beginning of 2012, our high-speed Internet subscriber base was reduced by 20,953 customers to reflect the decommissioning of our WiMax network and our decision to shut down our cable TV business in Montréal in 2012.
(C)

Our TV customer base was increased by 15,260 customers to include the cable operations of Northwestel at the beginning of Q1 2011
(D)

At the beginning of 2012, our TV subscriber base was reduced by 9,527 customers following our decision to shut down our cable TV business in Montréal in 2012.

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 6

Bell Wireline – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1 12     Total
2011		     Q4 11   Q3 11   Q2 11   Q1 11  

Bell Wireline 

                            

Local & access 

 678     2,852     687   710   726   729  

Long distance 

 212     903     219   223   227   234  

Data (A) 

 1,418     5,642     1,450   1,384   1,393   1,415  

Equipment & other 

 192     911     272   212   208   219  

Total external revenues 

 2,500     10,308     2,628   2,529   2,554   2,597  

Inter-segment revenues 

 79     313     81   81   76   75  

Total Bell Wireline operating revenues 

 2,579     10,621     2,709   2,610   2,630   2,672  

Operating costs 

 (1,576 )    (6,466 )    (1,712 )  (1,567 )  (1,559 )  (1,628 ) 

EBITDA 

 1,003     4,155     997   1,043   1,071   1,044  

EBITDA Margin 

38.9

 %   

39.1

 %   

36.8

 % 

40.0

 % 

40.7

 % 

39.1

 % 
                             

Capital expenditures 

 532     1,973     647   474   450   402  

Capital Intensity 

20.6

 %   

18.6

 %   

23.9

 % 

18.2

 % 

17.1

 % 

15.0

 % 
                             

Local 

                            

Network access services (NAS) 

                            

Residential 

 3,205,002     3,276,121     3,276,121   3,365,854   3,461,121   3,544,600  

Business 

 2,800,124     2,825,535     2,825,535   2,839,482   2,854,844   2,871,862  

Total 

 6,005,126     6,101,656     6,101,656   6,205,336   6,315,965   6,416,462  

Network access service net (losses)/activations 

                            

Residential 

 (71,119 )    (332,766 )    (89,733 )  (95,267 )  (83,479 )  (64,287 ) 

Business 

 (25,411 )    (41,283 )    (13,947 )  (15,362 )  (17,018 )  5,044  

Total 

 (96,530 )    (374,049 )    (103,680 )  (110,629 )  (100,497 )  (59,243 ) 

Internet 

                            

High Speed Internet net activations 

 12,393     15,426     1,091   (101 )  1,275   13,161  

High Speed Internet subscribers EOP (B) 

 2,104,192     2,112,752     2,112,752   2,111,661   2,111,762   2,110,487  

TV 

                            

Net subscriber activations (C) 

 17,623     68,221     27,702   26,169   6,292   8,058  

Total subscribers EOP (C) (D) 

 2,111,675     2,103,579     2,103,579   2,075,877   2,049,708   2,043,416  

 

(A)

Starting in Q1 2012, we have included TV service revenues in data revenues to align with the reporting practices of our peers. As a result, we have restated prior period results within Bell Wireline. Our previously reported Wireline segment and consolidated results did not change as a result of this restatement.
(B) At the beginning of 2012, our high-speed Internet subscriber base was reduced by 20,953 customers to reflect the decommissioning of our WiMax network and our decision to shut down our cable TV business in Montréal in 2012.
(C)

Our TV customer base was increased by 15,260 customers to include the cable operations of Northwestel at the beginning of Q1 2011

(C)

At the beginning of 2012, our TV subscriber base was reduced by 9,527 customers following our decision to shut down our cable TV business in Montréal in 2012.

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 7

Bell Wireless(2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1
2012		   Q1
2011		     % change  

Bell Wireless 

              

Revenue 

              

Service 

 1,214   1,145     6.0 % 

Product 

 94   99     (5.1 %) 

Total external Bell Wireless revenues 

 1,308   1,244     5.1 % 

Inter-segment 

 12   7     71.4 % 

Total Bell Wireless operating revenues 

 1,320   1,251     5.5 % 

Operating costs 

 (799 )  (790 )    (1.1 %) 

EBITDA 

 521   461     13.0 % 

EBITDA margin (Total revenues) 

39.5

 % 

36.9

 %   

2.6

  pts 

EBITDA margin (Service revenues) 

42.9

 % 

40.3

 %   

2.6

  pts 

Capital expenditures 

 136   113     (20.4 %) 

Capital intensity 

10.3

 % 

9.0

 %   

(1.3

 ) pts 

Wireless gross activations 

 388,146   423,799     (8.4 %) 

Postpaid 

 293,572   299,657     (2.0 %) 

Wireless net activations 

 (21,327 )  5,292     n.m.  

Postpaid 

 62,576   80,648     (22.4 %) 

Wireless subscribers EOP 

 7,406,155   7,247,340     2.2 % 

Postpaid 

 6,037,742   5,622,017     7.4 % 

Average revenue per unit (ARPU)($/month)(6) 

 53.84   51.68     4.2 % 

Churn (%) (average per month) (7) 

 1.8 %  1.9 %   

0.1

  pts 

Prepaid 

 3.9 %  3.7 %   

(0.2

 ) pts 

Postpaid 

 1.4 %  1.4 %   

0.0

  pts 

Usage per subscriber (min/month) 

 285   256     11.3 % 

Cost of acquisition (COA) (8) ($/sub) 

 399   366     (9.0 %) 
               

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 8

Bell Wireless – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1 12     Total
2011		     Q4 11   Q3 11   Q2 11   Q1 11  

Bell Wireless 

                            

Revenue 

                            

Service 

 1,214     4,769     1,222   1,228   1,174   1,145  

Product 

 94     422     129   102   92   99  

Total external Bell Wireless revenues 

 1,308     5,191     1,351   1,330   1,266   1,244  

Inter-segment 

 12     40     14   9   10   7  

Total Bell Wireless operating revenues 

 1,320     5,231     1,365   1,339   1,276   1,251  

Operating costs 

 (799 )    (3,408 )    (944 )  (858 )  (816 )  (790 ) 

EBITDA 

 521     1,823     421   481   460   461  

EBITDA margin (Total revenues) 

39.5

 %   

34.8

 %   

30.8

 % 

35.9

 % 

36.1

 % 

36.9

 % 

EBITDA margin (Service revenues) 

42.9

 %   

38.2

 %   

34.5

 % 

39.2

 % 

39.2

 % 

40.3

 % 

Capital expenditures 

 136     619     188   150   168   113  

Capital intensity 

10.3

 %   

11.8

 %   

13.8

 % 

11.2

 % 

13.2

 % 

9.0

 % 

Wireless gross activations 

 388,146     1,936,396     511,917   525,780   474,900   423,799  

Postpaid 

 293,572     1,402,965     389,317   372,346   341,645   299,657  

Wireless net activations 

 (21,327 )    185,434     57,886   85,749   36,507   5,292  

Postpaid 

 62,576     433,797     131,986   126,854   94,309   80,648  

Wireless subscribers EOP 

 7,406,155     7,427,482     7,427,482   7,369,596   7,283,847   7,247,340  

Postpaid 

 6,037,742     5,975,166     5,975,166   5,843,180   5,716,326   5,622,017  

Average revenue per unit (ARPU)($/month) 

 53.84     53.55     54.50   55.01   52.99   51.68  

Churn (%)(average per month) 

 1.8 %    2.0 %    2.1 %  2.0 %  2.0 %  1.9 % 

Prepaid 

 3.9 %    3.9 %    4.2 %  3.9 %  3.7 %  3.7 % 

Postpaid 

 1.4 %    1.5 %    1.5 %  1.5 %  1.5 %  1.4 % 

Usage per subscriber (min/month) 

 285     283     299   291   282   256  

Cost of acquisition (COA)($/sub) 

 399     403     450   392   400   366  

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 9

BCE Inc.
Net debt and other information

BCE Inc. – Net debt and preferreds 

            

 

            

At March 31, 2012 

     BCE Inc.      

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

                 

 

    Bell      

 

Bell   Aliant   BCE Inc.  

Debt due within one year 

 1,980   406   2,386  

Long-term debt 

 10,030   2,652   12,682  

Preferred shares – BCE (A) 

 1,698   -   1,698  

Cash and cash equivalents 

 (369 )  (28 )  (397 ) 

Net debt 

 13,339   3,030   16,369  

 

Bell – Net debt and preferreds 

        

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

        

 

March 31   Dec. 31  

 

2012   2011  

Debt due within one year 

 1,980   1,724  

Long-term debt 

 10,030   10,070  

Preferred shares – BCE (A) 

 1,698   1,558  

Cash and cash equivalents 

 (369 )  (140 ) 

Net Debt 

 13,339   13,212  

Net Debt / Adjusted EBITDA (B) 

 2.0   2.0  

Adjusted EBITDA (B) / Net interest, excluding interest on employee benefit obligations and including 50% of preferred dividends 

 9.0   9.1  

 

Bell Media Inc. – Proportionate Information 

                      

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

                      

 

Q1 2012      Total 2011    Q4 2011    Q3 2011    Q2 2011   

Proportionate Net Debt 

 188      230    230    220    275   

Proportionate EBITDA 

 64      278    113    62    103   
                        

 

Cash Flow Information 

                

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 Q1
2012		   Q1
2011		   $ change   % change  

Free Cash Flow (FCF) 

                

Cash from operating activities, excluding acquisition costs paid 

 1,005   737   268   36.4 % 

Capital expenditures 

 (680 )  (515 )  (165 )  (32.0 %) 

Dividends paid on preferred shares 

 (33 )  (28 )  (5 )  (17.9 %) 

Dividends/distributions paid by subsidiaries to non-controlling interest 

 (13 )  -   (13 )  n.m.  

Bell Aliant distributions to BCE 

 48   71   (23 )  (32.4 %) 

FCF 

 327   265   62   23.4 % 
                 
                 

 

Cash Flow Information – Historical Trend 

                            

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

Q1
2012		     Total
2011		     Q4
2011		   Q3
2011		   Q2
2011		   Q1
2011		  

Free Cash Flow (FCF) 

                            

Cash from operating activities, excluding acquisition costs paid 

 1,005     4,129     676   1,651   1,065   737  

Capital expenditures 

 (680 )    (2,683 )    (871 )  (652 )  (645 )  (515 ) 

Dividends paid on preferred shares 

 (33 )    (118 )    (31 )  (31 )  (28 )  (28 ) 

Dividends/distributions paid by subsidiaries to non-controlling interest 

 (13 )    (31 )    (8 )  (11 )  (12 )  -  

Bell Aliant distributions to BCE 

 48     214     48   48   47   71  

FCF 

 327     1,511     (186 )  1,005   427   265  
                             

 

(A)

Net debt includes 50% of preferred shares.
(B)

Adjusted EBITDA is defined as EBITDA including dividends / distributions from Bell Aliant to BCE and is based on trailling 12 months data.

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 10

BCE Inc.
Consolidated Statements of Financial Position Data

 

March 31     December 31  

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

 2012     2011  

ASSETS 

          

Current assets 

          

Cash 

 130     130  

Cash equivalents 

 267     45  

Trade and other receivables 

 2,821     3,119  

Current tax receivable 

 38     43  

Inventory 

 361     427  

Prepaid expenses 

 397     262  

Other current assets 

 128     152  

Total current assets 

 4,142     4,178  

Non-current assets 

          

Property, plant and equipment 

 18,897     18,785  

Intangible assets 

 7,983     8,013  

Deferred tax assets 

 314     329  

Investments in associates and joint ventures 

 314     307  

Other non-current assets 

 576     629  

Goodwill 

 7,185     7,185  

Total non-current assets 

 35,269     35,248  

Total assets 

 39,411     39,426  

LIABILITIES 

          

Current liabilities 

          

Trade payables and other liabilities 

 3,464     4,056  

Interest payable 

 154     134  

Dividends payable 

 432     415  

Current tax liabilities 

 43     47  

Debt due within one year 

 2,386     2,106  

Total current liabilities 

 6,479     6,758  

Non-current liabilities 

          

Long-term debt 

 12,682     12,721  

Deferred tax liabilities 

 832     881  

Employee benefit obligation 

 3,180     2,966  

Other non-current liabilities 

 1,297     1,341  

Total non-current liabilities 

 17,991     17,909  

Total liabilities 

 24,470     24,667  

EQUITY 

          

Equity attributable to owners of the parent 

          

Preferred shares 

 3,395     3,115  

Common shares 

 13,540     13,566  

Shares subject to cancellation 

 -     (50 ) 

Contributed surplus 

 2,536      2,527  

Accumulated other comprehensive (loss) income 

 (6 )    5  

Deficit 

 (5,472 )     (5,385 ) 

Total equity attributable to owners of the parent 

 13,993     13,778  

Non-controlling interest 

 948     981  

Total equity 

 14,941     14,759  

Total liabilities and equity 

 39,411     39,426  

Number of common shares outstanding 

 773.6     775.4  

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 11

BCE Inc.
Consolidated Cash Flow Data

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

   Q1
2012		       Q1
2011		       $ change  

Net earnings 

   676       582       94  

Adjustments to reconcile net earnings to cash flows from operating activities 

                      

Severance, acquisition and other costs 

   19       61       (42 ) 

Depreciation and amortization 

   825       790       35  

Net employee benefit plans cost 

   42       47       (5 ) 

Net interest expense 

   203       189       14  

Gains on investments 

   (8 )      -       (8 ) 

Income taxes 

   207       199       8  

Contributions to employee pension plans 

   (86 )      (354 )      268  

Payments under other employee future benefit plans 

   (24 )      (24 )      -  

Severance and other costs paid 

   (92 )      (247 )      155  

Acquisition costs paid 

   (25 )      (4 )      (21 ) 

Interest paid 

   (180 )      (167 )      (13 ) 

Income taxes paid (net of refunds) 

   (104 )      (8 )      (96 ) 

Operating assets and liabilities 

   (255 )      (330 )      75  

Cash flows from operating activities 

   1,198       734       464  

Bell Aliant dividends/distributions paid to BCE 

   48       71       (23 ) 

Capital expenditures 

   (817 )      (634 )      (183 ) 

Cash dividends paid on preferred shares 

   (33 )      (28 )      (5 ) 

Cash dividends/distributions paid by subsidiaries to non-controlling interest 

   (79 )      (91 )      12  

Acquisition costs paid 

   25       4       21  

Bell Aliant Free Cash Flow 

   (15 )      209       (224 ) 

Free Cash Flow (3) 

   327       265       62  

Bell Aliant free cash flow, excluding dividends/distributions paid 

   (33 )      (280 )      247  

Business acquisitions 

   (2 )      -       (2 ) 

Acquisition costs paid 

   (25 )      (4 )      (21 ) 

Business dispositions 

   -       2       (2 ) 

Increase in investments 

   (1 )      (2 )      1  

Decrease in investments 

   10       3       7  

Other investing activities 

   1       4       (3 ) 

Increase in notes payable and bank advances 

   266       526       (260 ) 

Reduction in securitized trade receivables 

   (12 )      (2 )      (10 ) 

Issue of long-term debt 

   11       1,002       (991 ) 

Repayment of long-term debt 

   (85 )      (76 )      (9 ) 

Cash dividends paid on common shares 

   (403 )      (344 )      (59 ) 

Issue of common shares 

   18       49       (31 ) 

Repurchase of common shares 

   (107 )      -       (107 ) 

Issue of preferred shares 

   280       -       280  

Issue of equity securities by subsidiaries to non-controlling interest 

   1       288       (287 ) 

Other financing activities 

   (24 )      (30 )      6  

 

  (105 )      1,136       (1,241 ) 

Net increase in cash and cash equivalents 

   222       1,401       (1,179 ) 

Cash and cash equivalents at beginning of period 

   175       771       (596 ) 

Cash and cash equivalents at end of period 

   397       2,172       (1,775 ) 
                       

Other information 

                      

Cash flow per share (9) 

 $ 0.49     $ 0.13     $  0.36  

Annualized cash flow yield (10) 

   5.1 %      4.3 %      (0.8 ) pts 
                       

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 12

BCE Inc.
Consolidated Cash Flow Data – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) 

   Q1 12       Total
2011		       Q4 11       Q3 11       Q2 11       Q1 11  

Net earnings 

   676       2,574       573       736       683       582  

Adjustments to reconcile net earnings to cash flows from operating activities 

                                              

Severance, acquisition and other costs 

   19       409       (1 )      130       219       61  

Depreciation and amortization 

   825       3,261       842       808       821       790  

Net employee benefit plans cost 

   42       193       47       50       49       47  

Net interest expense 

   203       821       213       207       212       189  

Gains on investments 

   (8 )      (89 )      -       -       (89 )      -  

Income taxes 

   207       720       247       80       194       199  

Contributions to employee pension plans 

   (86 )      (1,491 )      (961 )      (91 )      (85 )      (354 ) 

Payments under other employee future benefit plans 

   (24 )      (102 )      (26 )      (25 )      (27 )      (24 ) 

Severance and other costs paid 

   (92 )      (411 )      (68 )      (37 )      (59 )      (247 ) 

Acquisition costs paid 

   (25 )      (70 )      (28 )      (7 )      (31 )      (4 ) 

Interest paid 

   (180 )      (795 )      (234 )      (178 )      (216 )      (167 ) 

Income taxes paid (net of refunds) 

   (104 )      (130 )      (73 )      (24 )      (25 )      (8 ) 

Operating assets and liabilities 

   (255 )      (21 )      307       267       (265 )      (330 ) 

Cash flows from operating activities 

   1,198       4,869       838       1,916       1,381       734  

Bell Aliant dividends/distributions paid to BCE 

   48       214       48       48       47       71  

Capital expenditures 

   (817 )      (3,256 )      (1,008 )      (814 )      (800 )      (634 ) 

Cash dividends paid on preferred shares 

   (33 )      (118 )      (31 )      (31 )      (28 )      (28 ) 

Cash dividends/distributions paid by subsidiaries to non-controlling interest 

   (79 )      (315 )      (72 )      (75 )      (77 )      (91 ) 

Acquisition costs paid 

   25       70       28       7       31       4  

Bell Aliant Free Cash Flow 

   (15 )      47       11       (46 )      (127 )      209  

Free Cash Flow 

   327       1,511       (186 )      1,005       427       265  

Bell Aliant free cash flow, excluding dividends/distributions paid 

   (33 )      (261 )      (59 )      (2 )      80       (280 ) 

Business acquisitions 

   (2 )      (680 )      -       -       (680 )      -  

Acquisition costs paid 

   (25 )      (70 )      (28 )      (7 )      (31 )      (4 ) 

Business dispositions 

   -       2       -       -       -       2  

Increase in investments 

   (1 )      (12 )      (6 )      (2 )      (2 )      (2 ) 

Decrease in investments 

   10       56       6       2       45       3  

Other investing activities 

   1       6       2       1       (1 )      4  

Increase (decrease) in notes payable and bank advances 

   266       30       54       106       (656 )      526  

(Reduction) increase in securitized trade receivables 

   (12 )      (318 )      32       -       (348 )      (2 ) 

Issue of long-term debt 

   11       2,314       8       3       1,301       1,002  

Repayment of long-term debt 

   (85 )      (2,350 )      (342 )      (193 )      (1,739 )      (76 ) 

Cash dividends paid on common shares 

   (403 )      (1,520 )      (403 )      (402 )      (371 )      (344 ) 

Issue of common shares 

   18       152       37       15       51       49  

Repurchase of common shares 

   (107 )      (143 )      (143 )      -       -       -  

Issue of preferred shares 

   280       345       -       345       -       -  

Issue of equity securities by subsidiaries to non-controlling interest 

   1       403       115       -       -       288  

Other financing activities 

   (24 )      (61 )      (16 )      (43 )      28       (30 ) 

 

  (105 )      (2,107 )      (743 )      (177 )      (2,323 )      1,136  

Net increase (decrease) in cash and cash equivalents 

   222       (596 )      (929 )      828       (1,896 )      1,401  

Cash and cash equivalents at beginning of period 

   175       771       1,104       276       2,172       771  

Cash and cash equivalents at end of period 

   397       175       175       1,104       276       2,172  
                                               

Other information 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow per share 

$

0.49

 

 

$

2.09

 

 

$

(0.23

)  

 

  $

1.43

 

 

$ 

0.76

 

 

  $

0.13

 

Annualized cash flow yield 

   5.1 %      4.6 %      4.6 %      3.8 %      3.3 %      4.3 % 

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 13

 

Accompanying Notes

(1)

Throughout this report, BCE means BCE Inc., its subsidiaries, joint ventures and associates; Bell means our Bell Wireline, Bell Wireless and Bell Media segments on an aggregate basis; and Bell Aliant means Bell Aliant Inc. and its subsidiaries.

 
(2)

We report our results of operations in four segments: Bell Wireline, Bell Wireless, Bell Media and Bell Aliant. Our reporting structure reflects how we manage our business and how we classify our operations for planning and measuring performance.

Starting in the first quarter of 2012, we have included TV service revenues in data revenues to align with the reporting practices of our peers. As a result, we have restated prior period results within Bell Wireline. The previously reported Wireline segment and consolidated results did not change as a result of this restatement.

In the second quarter of 2011, BCE acquired the remaining 85% of CTV Inc. (CTV) common shares that it did not already own. CTV is a media company that holds specialty television, digital media, conventional TV and radio broadcasting assets. CTV is reported as a new segment, Bell Media. As at the acquisition date, we transferred certain assets from our wireline business segment to this new segment.

 
(3)

Non-GAAP Financial Measures

EBITDA

The term EBITDA does not have any standardized meaning according to IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other companies.

We define EBITDA as operating revenues less operating costs (including pension current service costs). We use EBITDA to evaluate the performance of our businesses as it reflects their ongoing profitability. We believe that certain investors and analysts use EBITDA to measure a company’s ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. EBITDA also is one component in the determination of short-term incentive compensation for all management employees. EBITDA has no directly comparable IFRS financial measure. Alternatively, it may be reconciled to net earnings as shown in this document.

Adjusted net earnings and Adjusted earnings per share (EPS)

The terms Adjusted net earnings and Adjusted EPS do not have any standardized meaning according to IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other companies.

We define Adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, and net (gains) losses on investments. We define Adjusted EPS as Adjusted net earnings per BCE common share.

We use Adjusted net earnings and Adjusted EPS, among other measures, to assess the performance of our businesses without the effects of severance, acquisition and other costs, and net (gains) losses on investments, net of tax and non-controlling interest. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

The most comparable IFRS financial measures are net earnings attributable to common shareholders and EPS.

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 14

 

Accompanying Notes

 

Free Cash Flow

The term free cash flow does not have any standardized meaning according to IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other companies.

We define free cash flow as cash flows from operating activities, excluding acquisition costs paid, and dividends/distributions received from Bell Aliant less capital expenditures, preferred share dividends, dividends/distributions paid by subsidiaries to non-controlling interest and Bell Aliant free cash flow.

We consider free cash flow to be an important indicator of the financial strength and performance of our business because it shows how much cash is available to repay debt and reinvest in our company. We present free cash flow consistently from period to period, which allows us to compare our financial performance on a consistent basis.

We believe that certain investors and analysts use free cash flow to value a business and its underlying assets.

The most comparable IFRS financial measure is cash flows from operating activities.

 
(4)

EBITDA margin is calculated as follows:

EBITDA
Operating revenues

 
(5)

Capital Intensity is calculated as follows:

Capital expenditures
Operating revenues

 
(6)

Average revenue per unit (ARPU) represents the measurement of the average revenue generated by each unit, expressed as a rate per month for the year.

 
(7)

Churn is the rate at which existing subscribers cancel their services. Churn is calculated as the number of subscribers disconnected divided by the average subscriber base.

 
(8)

Cost of acquisition (COA) is also referred to as subscriber acquisition costs. This measure is expressed per gross activation. It includes costs associated with acquiring a customer such as hardware subsidies, marketing and distribution costs.

 
(9)

Cash flow per share is calculated as follows:

Cash flow from operating activities less capital expenditures
Average number of common shares outstanding

 
(10)

Annualized cash flow yield is calculated as follows:

Trailing 12 month free cash flow
Number of common shares outstanding at end of period multiplied by share price at end of period

 

BCE Inc. Supplementary Financial Information – First Quarter 2012 Page 15