The company reported higher net earnings and cash flow from operating activities due primarily to the sheltering of income taxes under a tax loss monetization plan with BCE.
Consolidated operating revenue for the period was $70.9 million, compared with $71.6 million in the first quarter of last year. Revenue for the first quarter was lower due to one-time Y2K-related revenue in the first quarter of 2000. This variance was partially offset by higher revenue from the Nimiq direct broadcast satellite and higher international consulting and related equipment sales in 2001. Earnings from operations of $16.1 million were $2.2 million lower than in 2000 because of increased depreciation expense relating to the Anik F1 satellite, which entered commercial service on February 19, 2001.
Unaudited consolidated net earnings applicable to common shareholders increased to $16.3 million from $7.0 million in the first quarter of 2000. The major reason for this increase was the sheltering of income taxes under the tax loss monetization plan.
Cash flow from operating activities for the first three months was $15.9 million. This increase of $32.2 million from the comparable figure for 2000 was primarily due to the payment of income taxes during the first quarter of 2000, with a minimal corresponding outlay in 2001. The tax loss monetization plan, which has contributed significantly to earnings over the last three quarters, was unwound on March 30, 2001.
