Shaw Communications, Inc. (NYSE:SJR) Q4 2015 Earnings Conference Call - Final Transcript

Jan 14, 2016 • 03:30 pm ET

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Shaw Communications, Inc. (NYSE:SJR) Q4 2015 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question today comes from Vince Valentini of TD Securities. Please go ahead.

Analyst
Vince Valentini

Yeah, thanks very much. First off, Vito or somebody else, is it possible to quantify all those one-time employee and Calgary startup costs within ViaWest in the fourth quarter?

Executive
Vito Culmone

Yeah, hi, Vince, it's Vito here. Maybe I will take it and then ask Nancy to provide some commentary on the business. In the quarter also we had about CAD3 billion to CAD4 billion of one-time related types expenditures, which when you look at it on an absolute basis, on a percentage basis, it sort of distorts the -- what really the success and the momentum that we're seeing in the business. Just by way of referencing, US dollars, our Q4, both revenue and EBITDA performance improved 4% versus the prior quarter. So, we are really, really happy on the US dollar. There is a little bit of noise when you bring that back into Canadian dollars and some of the consolidation type entries. Maybe, Nancy, I will ask you to give a little color on that.

Executive
Nancy Phillips

Yeah, I mean, as Vito said, it's an one-time impact to the business a little bit. There is some startup cost obviously as we start to bring on the Calgary asset, but this was primarily driven by some long-term incentive impact. But, listen, fourth quarter, we're very, very pleased with how our fourth quarter came in. We saw our strongest bookings quarter of the year and quite frankly in the history of the company. So the demand for our products and services remains very, very high.

We saw Oregon side come online in July and had unprecedented early stage customers coming into that facility. We think it's on track to breakeven in half the time of our typical modeling that we've seen in historical datacenters. And our margins remain very consistent with historical standards. And the fourth quarter really put us in a position to do some small acceleration of capital because of the growth we're seeing and early, early demand in the first quarter of this year. So fourth quarter for ViaWest actually was very, very strong. We had a little bit of slow start, but as we finished the year, the demands remain strong and high and feel very good going into 2016.

Analyst
Vince Valentini

Great, thanks. One other question on the guidance for 2016, maybe Vito again. Can you explain a bit the difference between the bottom and the low end of the range that, if I read you correctly sort of zero to 3% EBITDA growth is what you are signaling? To get to the low end of that range, is there some uncertainty that you guys might have about how much demand and uptick there will be from customers for the X1 platform given its a bit of different economics than what you have had in the past when you have opex versus capex or you may be hedging your bets a little bit in case