Revenue: up 6.7% in quarter & 3.2% in first nine months.
Consolidated operating revenue increased $5.0 million to $79.9 million for the third quarter and $7.0 million to $224.9 million for the first nine months of 2001, compared with the same periods last year. Telecommunications revenue for the third quarter increased $9.9 million compared to 2000 due mainly to higher South American revenue and North to South revenue on Telesat’s new Anik F1 satellite.
Earnings from operations: up 20.7% in quarter & 5.2% in first nine month
Earnings from operations were $24.5 million for the quarter, compared with $20.3 million in the third quarter of 2000. For the first nine months of 2001, earnings from operations were $59.1 million, an increase of $2.9 million from the comparable period in 2000.
Net earnings & cash flow: tax issues & write-down of Asian investment shape results
Unaudited consolidated net earnings applicable to common shares were $41.7 million for the first nine months of 2001 and were $12.8 million higher than those in the same period in 2000. This is due mainly to the sheltering of income taxes under the tax loss monetization plan during the first quarter and a reduction in Ontario’s provincial corporate income tax rates during the second quarter.
During the third quarter, the company wrote off its investment of $3.6 million in PSN, the Asia-Pacific satellite company, as it appeared unlikely that Telesat would be able to realize the carrying value of its investment.
Unaudited consolidated net earnings applicable to common shares were $8.1 million for the third quarter, $6.4 million lower than the third quarter of 2000 mainly due to the write-down of PSN in 2001 and to the implementation of the tax loss monetization plan in August 2000. The monetization plan was unwound at the end of March 2001.
Cash flow from operating activities for the first nine months of 2001 was $85.9 million compared with $26.8 million for the first nine months of 2000, due primarily to the payment of income taxes during the first half of 2000 with a minimal corresponding outlay in 2001.
