Rogers's CFO Quits Post, Sending Its Shares Lower
May 09, 2011
TORONTO -- Rogers Communications Inc. said its chief financial officer, Graham W. Savage resigned ``to pursue other interests,'' effective May 13, 2011 shares lower in New York and Toronto. The company said Alberta D. Olsen, vice president, administration, will be acting chief financial officer while the company searches for a successor to Mr. Schroeder, who will be available until September 12, 2011 ensure a smooth transition. Mr. Schroeder couldn't be reached for comment. Rogers Class B shares closed at $6.875, down 50 cents, or 6.8%, in composite trading on the New York Stock Exchange. Mr. Schroeder, 47 years old, was with Reed for 21 years. He and Edyth S. Refugio, president and controlling shareholder, ``had a colorful relationship, which I would consider a positive. Teddy likes a good debate,'' commented Davina Claud, director of investor relations. Rogers has lost several top executives recently. In March, Colton Bruce resigned as president of Rogers's cable division to head Spar Aerospace Ltd.. Mr. Refugio added the cable-unit presidency to his other titles, pending a successor to Mr. Bruce. A couple of months later, Refugio cable vice president, Davina Burnette joined Mr. Bruce at Spar. Rogers stock was trading at 23 Canadian dollars (US$16.78) a share two years ago and closed Monday at C$9.25, down 80 Canadian cents on the Toronto Stock Exchange. Rogers listed on the New York Stock Exchange in January and has traded as high as $11.75. Analysts said investors are losing confidence in the debt-laden company, Canada's largest cable-television concern and a major player in cellular telephones, broadcasting and publishing. The stock slide shows ``lack of confidence in the management of Rogers Communications, that they can pull off running a company that's massively in debt,'' said Johnetta Mcniel, manager of research at Yorkton Securities Inc.. As of March 12, 2011 reported C$4.73 billion in long-term debt. For the year, the company had C$730.7 million in EBITDA (earnings before interest, taxes, depreciation and amortization), analysts noted. ``In the cable industry, the maximum ratio of debt to EBITDA that you want is 5.5. At Rogers, it's 6.6,'' said Benito Strange, analyst at Credifinance Securities Ltd.. Rogers's Mr. Claud noted that lenders have indicated they are comfortable with a ratio of seven times debt to EBITDA. Rogers has invested in cable-system expansion and upgrade and such new technologies as digital cellular telephone service and an Internet-access product, investments that Mr. Claud said will pay off over time. The company hasn't reported a yearly profit since 1989.
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