growing our co-operative

G R O W I N G O U R C O - O P E R AT I V E
2009 ANNUAL REPORT
TA B L E O F C O N T E N T S
02 Access Mission, Vision and Values
04 Message from the Chair of the Board
06 Message from the President & CEO
08 Our Staff Make the Difference
10 We Value the Support of Our Members
12 Commitment to our Customers
14 Connecting Costumers to the World Through Technology
16 Access7
18 We Care and Contribute with the Help of Our Volunteers
20 We Care About Corporate Social Responsibility
24 Future
26 Financials
(clockwise from left)
Access7-Regina volunteer host Cynthia Mack andvolunteer
Joshua Kurtenbach on camera, Access staff member Johanna
Foster helps customer Heather Mackenzie and young son Alex,
Producer Graham Condo and Production Assistant Andrew
Muir on location in Regina with the mobile production
unit, the Access “bingomobile” is a familiar sight in many
neighbourhoods, Access manager, Wade Peterson, presents a
Children’s Fund donation to Pam Gunnlaugson of the Estevan
& Area Literacy Program, Access manager Martin Smith
presents a Children’s Fund donation to some friends at the
Battlefords Boys & Girls Club.
1
A C C E S S MISSION, VISION
AND VALUES
A 100% Saskatchewan-owned non-profit co-operative,
Access Communications Co-operative Limited is the
Brittany Galambos,
a Human Resource Officer
at Access, offers up some
recycled paper.
largest television service provider in Saskatchewan and
the 6th largest provider in Canada. With the support
of more than 240 employees and 150 volunteers, the
co-operative now serves 217 communities across
Saskatchewan, with retail offices in Estevan, La Ronge,
North Battleford, Regina, Weyburn, and Yorkton.
Access Communications is a market leader, providing
cable television, digital and high definition cable services
and home security service, as well as a full complement of
high speed Internet and home phone services to valued
customers across the province.
Access7 community channels produce thousands of
hours of unique, local programming each year; programs
which evoke and capture the spirit of each community
Access serves.
Through our Access7 community channels, we are proud
OUR VALUES
to provide a local voice to the people of the communities
that we serve, following the core principles that have
Integrity: We live by our belief in honesty, respect and
made Access Communications what it continues to be,
trust in everything we do.
and embracing the changes progress may bring.
Employee-Centred: We enable everyone’s
Access7 Volunteer,
Amanda Irvine
involvement, growth and contribution in a challenging
OUR MISSION
and fun environment.
We are a community-owned co-operative dedicated to
Innovative: We create and embrace change that
providing exceptional communications and entertainment
enhances customer service, the community and our
services and unique opportunities for local expression.
organization.
OUR VISION
Community-Oriented: We are an integral part of the
Our passion, commitment and leadership are producing
progress.
unrivalled communications and entertainment services in
the communities we serve.
communities we serve, contributing to their energy and
Customer-Focused: We deliver extraordinary value
reliably, dependably, and consistently.
3
M E S S A G E FROM THE CHAIR
OF THE BOARD
A year ago at this time, the board of Access
Communications Co-operative Limited had just
celebrated our co-operative’s 30 years of exemplary
service and steady growth. We were justly proud of
Access’ development from a small seven channel cable
system serving only the city of Regina, to a provincial
entertainment and communications co-operative
providing cable television, high speed Internet and
home phone products to 33 communities across
Saskatchewan. Given the unpredictable economic
situation worldwide, we were cautiously optimistic
about what 2009 might bring.
What followed was a decision and strategy that will
propel our co-operative, and our province, into an
increasingly solid and successful future.
On July 1, 2009, Access Communications assumed the
operations of Persona/Eastlink’s Saskatchewan cable
systems, adding 184 communities and 21 technicians
to our operations. Thus began a year of exceptional
growth and expansion: Video on Demand services
were launched in Regina, Estevan, Weyburn, Emerald
Park and White City, and home phone services were added in
encourage our members to become involved in the work of the co-
Canora, Kamsack, Weyburn, Estevan and Esterhazy; 11 additional
operative. Five members of our current 12-person board reside outside
high definition channels were launched in La Ronge, and home security
of Regina, ensuring meaningful participation from all regions Access
service – another option our members and customers were asking for,
serves.
debuted in Regina; our interconnect program ploughed fibre optic
cable from our plant in Regina to Weyburn, Estevan and Bienfait,
eliminating the additional costs of multiple head-ends and providing
these interconnected regional communities with an enhanced offering
of channels and services.
We are grateful to the members who serve on our board of directors
and advisory boards. A special thank you goes to Wayne Hellquist,
retiring board member and past chair, whose contributions have been
significant. Our thanks go as well to retiring board members Denise
Batters and Leith McKay who contributed their time and energy to our
It’s truly been an exceptional year – a watershed year in Access
Communications’ three-decade history. It happens to coincide with a
year of renaissance for rural Saskatchewan – our economy has been
promising, compared to the rest of the country. People are moving into
the province, and many are choosing to live in smaller communities.
Employment opportunities are increasing, and housing construction
co-operative’s board.
This has been a year of exceptional growth and celebration for our
co-operative. With the continued support of our members, board,
volunteers and staff, we eagerly anticipate the year ahead!
Sincerely,
has grown by leaps and bounds. It follows that the demand for our
products and services should also be growing dramatically.
We
now
have
217
communities
to
serve
and
already
we are receiving inquiries from residents in our newest
Jan Marce
neighbourhoods
Chair, Board of Directors
who
are
interested
in
supporting
our
co-operative through membership. We welcome them all and
Access Communications Co-operative Limited
5
M E S S A G E FROM THE
PRESIDENT & CEO
2009 has been a year of unprecedented expansion for
has not been the brightest. I believe it begins with the fact
Access Communications Co-operative. We assumed
that we are community-owned. We are a co-operative,
the cable television operations in an additional 184
with the values and objectives and business practices
communities throughout the province, effectively
that co-operation implies. We’re also local. Local in fact
increasing our service area by over 600%. We launched
and not just in theory. The people who make up Access
Video on Demand and home security service, expanded
Communications are your friends and neighbours, the
digital phone service, offered additional HD channels,
same people who live next door, pay taxes and take part
and extended our long-haul fibre. We’ve invested
in what goes on in your community. They are truly the
more than $18 million in the past year, adding to
face and heart of Access, and we respect and value them
and maintaining the operations of our co-operative.
as employees and as volunteers.
We’re planning to launch community channels into
our new communities, allowing every area we serve
the opportunity “to reflect the community back
to itself through the medium of television,” as our
co-operative’s founding purpose stated.
We continue to make an effort to enhance the
communities we serve. In 2009, the Access
Communications Children’s Fund contributed over
$180,000 to assist children and youth at risk and in
need. Through scholarships and support of important
All those achievements, and many more, have made
community initiatives like the Saskatchewan Co-
2009 the catalyst for a future that our early cable
operative Youth Program, we continue to invest in our
pioneers likely never imagined possible.
future leaders – the youth of our province.
I’ve been asked many times why Access Communications
We continue to value our customers’ feedback, and to
has enjoyed this remarkable growth and success,
listen to their suggestions and requests, doing our best to
especially at a time when the nation’s economic picture
fulfill their expectations. It’s going to take time to do all
the things we’ve planned, but we believe that together,
we will continue to do great things in the coming years.
Access Communications has succeeded, and continues
to succeed, because we’ve stayed true to our founding
principles and the non-profit community-ownership
model. I am grateful for the support of our members, our
Board of Directors and the hard work and enthusiasm of
our staff and volunteers in embracing the changes that
this year has brought. I know we’re all excited to see
what lies ahead.
Sincerely,
Jim Deane
President and Chief Executive Officer
Access Communications Co-operative Limited
7
OUR STAFF MAKE THE DIFFERENCE
Regional Technician, Chris Grief,
always has a smile for our
customers!
When a company expands significantly, more or
less overnight, it can cause some challenges, to
say the least. Access Communications was no
exception when 184 cable systems, 21 employees,
and over 15,000 subscribers were added to
its operational mix.
Access has always recognized that our ability to provide
our communities with the quality of service they deserve
depends equally on the quality of our workforce as
well as the quality of our products. We are committed
to management practices which contribute both to
the success of our co-operative and the quality of our
employees’ personal lives. This has become even more
important since the addition of the new systems, as our
workforce is now increasingly distributed throughout
the province, operating in many additional regional
locations.
Very early on in the expansion, additional full-time
positions were added to the Customer Care Centre
and Internet Help Desk in order to accommodate the
increased volume of calls from our new communities.
The new retail office in Estevan has a mini-call centre
and additional regional offices are planned for Melfort,
Humboldt, and Maple Creek. Understanding the unique
needs of our communities and interacting on a local
in structured training courses. Employees who want
level is important to Access; many positions are being
to expand their knowledge and capabilities at any
de-centralized and field technicians are living in the
post-secondary educational institution are eligible
regions where they work, whenever possible. New
for sponsorship by Access Communications. This
technology is allowing more of the co-operative’s work
commitment to staff training and development is
to be done closer to the customer and further from the
evident in the more than $2,000 Access invested, on
head office.
average, in each employee this year for some type of
Access has always looked to the future by making
continuing education.
recruitment of the best and brightest a top priority. In
We’ve also added specialized e-learning programs,
2009, we invested in new leading-edge recruitment and
which are available online to new hires and existing
talent management tools to provide us with additional
employees, to enhance our onboarding process and
expertise to increase efficiency and effectiveness
for all kinds of career and personal development.
throughout our organization.
This online approach will ensure all staff, regardless
We are fortunate to work in a very exciting, dynamic
industry and we enjoy speaking with young graduates
about the possibility of a career in entertainment or
of location, receive quality standard training – all
without the added expenses and carbon emissions
of frequent travel.
communications. In 2009, we participated in career fairs
The investments we made in 2009 offer our staff
in Esterhazy, Moose Jaw, Regina, Prince Albert, Meadow
valuable opportunities and help us manage the daily
Lake and North Battleford introducing high school and
operation of the business, as well as plan for future
university students to the benefits of working for our
growth and success.
growing team at Access.
Access believes in, and appreciates the value of
continuous learning. In 2009, 90% of our staff took part
9
W E VA L U E T H E S U P P O R T O F O U R M E M B E R S
With our significantly expanded service
Internet customers in La Ronge, Air Ronge
area, we now have an increased source of
and surrounding First Nations communities.
potential members for Access Communications
And in 2009, we welcomed new customers
Co-operative
for
from an additional 184 communities across
membership have already begun to come in, and
Saskatchewan, making Access Communications
more and more people in our new communities
now the largest television provider in the
are asking for information on our co-operative
province and the 6th largest in Canada.
Limited.
Applications
and how they can help make a difference by
becoming a co-operative member.
Since its beginnings as Cable Regina, the
co-operative has continuously operated as a
In 1974, the Regina Cablevision Co-operative
community-owned non-profit organization,
(Cable Regina) was incorporated as a limited
reinvesting 100% of its earnings into the
company under the Co-operative Association
services we provide, and into broadening
Act of Saskatchewan to bring cable television
Access7 community channel programming
service and first-class community television to
across the province.
the people of Regina. In 2000, the co-operative’s
name changed to Access Communications
Co-operative Limited, and in 2002, it
amalgamated with Battlefords Community
Cablevision Co-operative in North Battleford
and district. Access grew again when we
assumed the assets of Cable Ronge Inc.
to continue serving cable television and
Individual
member ship
in
Access
Communications Co-operative Limited is open
to any resident of our service areas who is 18
years of age or older and a Canadian citizen.
Any organization with community, member or
patron service objectives, located in an Access
service area, may apply to become a Member
Organization.
The membership policy of the co-operative is not
restrictive. The only criterion used in approving
applications for membership, other than those
stated above, is that the applicant be supportive,
promote the business and the affairs of the
co-operative, and agree to observe its bylaws.
A board of twelve directors, elected for three-year
terms at annual meetings, guides the development
and operation of the co-operative.
“My wife and I are currently living
in Nipawin – one of the many
systems recently acquired by
Access from Persona – and I was
very happy to be able to renew
my membership in our co-operative.
We are pleased to now be living
within your service area and eagerly
look forward to the changes that
are being planned!“
A ccess C ommunications
2 0 0 9 B oard of D irectors
STANDING: Barry Taman, Ed Lee, Don Hansen, Rob Hunter
SEATED:
Leith McKay, Wayne Hellquist, Jan Marce, Denise Batters
MISSING:
Lynn Chipley, Janis Campbell, Nick Coroluick, Evan Ortynsky
Torance Tornquist, the very first
Chair of the Board for Cable Regina
11
Call Centre Team Leader
Megan Ekes makes sure every
customer is #1 at Access!
C ommitment
to our Customers
This year has been all about change – for our
customers as well as our staff, volunteers, members
and board. Thousands of Saskatchewan residents have
entertainment and communication choices they’ve never
had before, and Access Communications has thousands
of new customers to get to know.
Our commitment to our customers goes beyond rolling
out the latest products and services. To ensure we remain
customer-focused, we strive to give our customers the
best products and services for the most reasonable
price possible. We are also dedicated to providing
unparalleled, friendly and knowledgeable customer
service. We showcase this commitment by offering:
• 2 4/7 support for all our products and services.
We know problems don’t always happen during
regular business hours. That’s why we offer
customer support 24 hours a day, seven days
a week.
• A dedicated Internet Help Desk that goes above
and beyond. Our Help Desk professionals are
computer experts who are always ready and
willing to provide support not only for our
Internet products and services, but also with other computer-
Customer feedback continues to motivate the operation of our co-operative.
related problems.
One of our major product launches this year was our home security service,
• Two-hour appointment windows. We don’t keep you waiting.
We arrive within the agreed-upon two-hour appointment
time frame.
• Regional retail stores. We like to do business face to face, so
we’re committed to maintaining a retail store in each of our
major regional centres.
AccessSecure. It really came about because Access customers were looking
for a residential security product that was reliable and priced competitively.
Our customers have come to depend on us for consistently reliable
services and we believe home security is an important option to add to our
customer’s choices.
Another product that our customers told us they were interested in was
Video on Demand. We weren’t the first provider to enter the market with
As we continue to upgrade and enhance our systems, we’re also
VOD, but we know that by taking the time to evaluate how to best offer
mindful to ensure that our commitment to customer service remains.
the most comprehensive library of movies, concerts and series available,
New positions in our Customer Care and field services are being
our technical people have created something so outstanding that it’s the
deployed throughout our new communities and regions. Our plans for
envy of other cable operators and providers. In the markets where we have
the coming year involve opening at least two or three additional retail
launched VOD, it has quickly surpassed our expectations and has become
offices to better serve our new, expanded service areas. Because of
an exciting new alternative to regular network programming. And it’s only
our continued focus on hiring locally, it’s highly likely that the Access
a forerunner of even more exciting things to come.
Communications employees who assist you could be your friends
and neighbours.
We make sure that the products and services we offer, and the suppliers
and contract professionals with whom we do business, match our
co-operative’s values and our way of doing business. Access is
determined to be perfectly open and above-board with our customers,
and we often take the time and effort to contact our customers if we’re
going to make a significant change that will affect them in some way.
We believe it’s the right and co-operative way to conduct a business.
At the end of the day, our quarterly customer satisfaction surveys show
our customers value that honesty and transparency.
13
C onnecting C U stumers to
the W orld T hrough T echnology
Even before they were presented with the challenge of adding
and rebuilding 184 new cable systems, the Engineering group at
Access had more challenges and a higher degree of excitement
than most cable techs see in a lifetime!
Last year, we were already deep into Access’ $59 million, five-year
commitment to upgrade our co-operative’s existing infrastructure
when it was time to expand home phone services to Canora,
Kamsack, Weyburn, Estevan and Esterhazy. For the first time ever,
customers in these communities had a new choice that hadn’t
been available before.
Ploughing of fibre went ahead as planned to Pilot Butte and
Balgonie and long-haul fibre allowed us to interconnect our
Regina head end with Weyburn and Estevan. Both activities were
a major step forward – providing more control and coverage and
eliminating the additional costs required for separate head ends
in each of these communities. We listened to our customers’
feedback and heard that many wanted more high definition
channels in their communities, so we also added additional HD
channels in La Ronge, Weyburn, and Estevan.
The rebuild of the Regina Beach system was completed in 2009,
creating a state-of-the art platform for faster Internet services
and an increased capacity for digital and high definition services.
Video on Demand was launched in Regina,White City, Emerald Park,
With all the expansion of our co-operative and a growing staff group,
Weyburn and Estevan in 2009 and along the way our Access team
we outgrew several of our facilities in 2009. In Regina, a new building
developed a new, customer friendly VOD on-screen guide that has been
was purchased on Elliott Street to house our Field Operations Centre,
so well received that other distributors have now expressed an interest
and in Estevan we purchased a new building on 6th Street to house a
in acquiring it.
larger retail office, Access7 studio and call centre. Both new locations
And then, on July 1, 2009 our co-operative welcomed 184 new
communities with the acquisition of their cable systems from Persona/
Eastlink. Immediately following the acquisition, each system was
evaluated and opportunities for improvement identified. As this report
was being published, upgrades to six of the systems have already been
completed; all systems will be upgraded throughout the next few years,
bringing new and enhanced services and a local community channel to
each of our new communities.
have enhanced our operations and will enable us to continue to provide
the outstanding customer service our customers have come to depend
on.
“I just wanted to extend my thanks to the friendly Access
installer who stopped to help my husband and I when our
car was stuck one morning in early January.” Mrs. Grey says
the installer appeared out of the snow “like a superhero”
and was able to push their car out of a huge snowdrift.
Mrs. G. Gray, a customer in Yorkton
In 2009, we partnered with AAA Alarms, a division of MTS Allstream,
to provide AccessSecure, our new home security service. The service,
which was initially launched in Regina and will be rolled out to our other
communities, provides yet another important service to our members
and customers – and at a very economical price.
Direct fibre feeds were installed in a number of public locations in several
Access communities (like the North Battleford City Hall, the Melville
Community Centre and Yorkton’s Gallagher Centre), to allow for live
coverage of local events on Access7 community channels.
15
ACCESS7
One of the things that has always made Access truly
• Northern Jam – La Ronge
unique is that it puts the “local” into a viewer’s locality
• In the Huddle – across the province
through Access7, the community programming channel.
• 2009 Tourism Awards – Regina
Each year, Access commits over 5% of our broadcast
• 31st Annual FNUC Pow Wow – across the province
revenues back into community programming. This
• Ken Goff Memorial Boxing Tournament – Regina
year, that represented a reinvestment of more than
• 2009 Young Fellows TV Auction – Weyburn
$2.1 million.
• Quota Club Women of the Year Awards –
The co-operative’s founding purpose promised “to
reflect the community back to itself through the
medium of television.” Now, three decades later, and
serving hundreds of communities, Access still honours
that commitment, making a major investment in rural
Saskatchewan to ensure that everyone who lives in
every community we serve will have an opportunity to
Weyburn & Estevan
• Yorkton Short Film & Video Festival
• Casino Idol – Yorkton
• SJHL and WHL coverage – across the province
• Western Major Baseball League coverage –
across the province
• The Melville Dance Party
use today’s technology to learn about their neighbours,
Our 2009 annual Viewership Survey results are very
exchange stories and interests, and to appreciate the
inspiring. The independent survey is conducted annually
cities, towns and surroundings we all share.
and includes feedback about our community channel
Programming Highlights from 2009 include:
• Battlefords BBEX Awards
• Olympic Torch Kick-off – Battlefords
• Rosetown Chamber of Commerce Awards
• Voices of the North – La Ronge
and our co-operative.
Highlights from this year’s survey showed:
• Access is predominantly the company that first comes
to mind for cable television services.
• Compared to other providers, those surveyed rated
Access7-Regina volunteer Cynthia Mack
Access very high for the most locally-produced
is a warm, welcoming host on Talk of the Town
community coverage programming (2nd only to CTV).
• 70% of viewers said Access7 makes a positive contribution
to quality of life in their community.
• Community Calendar was rated as very important to
viewers along with coverage of local sports and events.
• 67% believe that a co-operative like Access is best for their
community.
“On behalf of the Lions Park
Legasse Tournament, thank you
very much for supporting the young
kids by broadcasting the PeeWee
game on Friday. Everyone involved
in the tournament was thrilled to
see the young kids play on Access7
TV. I really can’t say enough about
the efforts by Access in providing
such a wonderful opportunity
for our kids.”
Received from a Pee Wee parent
in Regina
17
Access7 volunteers
Amanda Irvrine and
Joshua Kurlenbach
W e C are and
C ontribute with the
help of our volunteers
For more than three decades, Access Communications
Co-operative has worked hard to become an integral
part of the communities we serve – not just to provide
products and services, but to demonstrate that we’re
actually “part of” each community.
True local TV, the kind we show on a dedicated community
channel that’s unique to each Access Communications
community, is what our co-operative is all about. That
takes work. It takes commitment. And it takes people
who care.
That’s where our community volunteers come into the
picture. More than 150 volunteers in our Access regions
care enough about their communities to contribute
their time, energy and skills to help produce local Access7
community programming. In 2009, our volunteers gave
thousands of hours, working with Access7 production
staff to make genuine local programming a reality.
Those volunteers range from students to seniors, and
through Access7’s Community Producer Program, they
learn how to run cameras, edit footage for broadcast,
and direct their own productions. We offer a wide range
of opportunities and the flexibility to accommodate
those who would like to be involved in this kind of
community communication. Last year, more than 40%
of the total programming seen on Access7 was produced
by local, volunteer community producers.
We are truly fortunate to have the opportunity to work
and collaborate with local community volunteers. Their
energy and boundless enthusiasm help us to create
Access7 programs which make an enormous contribution
to the quality of life in our communities.
“I love volunteering at Access! The staff I work with are
so friendly and I am proud I can say I host a TV show
every week. It’s exciting to tell my friends and family who
are watching channel 7 that I am on TV – on Access7!”
Leo Roussel, volunteer host, Access7-Battlefords
19
W e care about Corporate Social Responsibility
Production Assistant
Adrian Dean lends a
hand for sustainability.
Corporate Social Responsibility is defined
We are responsible to those whose lives we
as “conducting business ethically and with
affect through good governance, ethical business
sensitivity towards social, cultural, economic and
practices, support of the provincial economy,
environmental issues.”
investing in the future of our youth, maintaining
As a non-profit, community-owned co-operative,
our members act as trustees for the communities
we serve; we’re owned by, and accountable to
those communities. We feel it’s important to report
an equitable and diverse workplace, developing a
strategy of green sustainable initiatives for the cooperative, and honouring a solid commitment to
enrich the communities we serve.
on where we have impact, and not just on our
We believe our activities throughout the past year
bottom line. We also believe it’s good for business.
have made a positive impact on the communities
It helps build trust with those who influence our
who support us. What follows below is a just a
long-term success, including our members and
sample of the many activities we were proud to
employees.
work on throughout the province last year:
There are compelling reasons to be socially
The Access Communications’ Children’s Fund,
responsible and compelling statistics that support
our co-operative’s registered charity, donated
the financial metrics – however, for us it’s simple
over $180,000 last year in support of programs
and has become one of the core values for our co-
which helped give children and youth across
operative: “be an integral part of the communities
Saskatchewan “a hand up.” Our goal is to support
you serve, and contribute to both their energy and
and improve the lives of children and youth who
progress.” For us that means being responsible,
are at risk of social exclusion across Saskatchewan
not only in the products and services we offer, but
in the areas of educational and literacy, health and
also in how we impact the environment in which
wellness, crime prevention and pathways out of
we live and work.
poverty. Our Fund’s support is evident in the many
organizations we worked with throughout the year
including:
CHILDREN’S FUND
RECIPIENT ORGANIZATIONS
Yorkton Community Cadet Corps
Through the Access Centennial Scholarship Program,
Each year, Access also awards a $1,500 Film and Video
36 Saskatchewan high school graduates received a
scholarship and two $1,000 undergraduate entrance
combined total of more than $17,000 in post-secondary
scholarships at the University of Regina.
Battlefords Boys & Girls Club
scholarships last year. Our congratulations and best
Tree Huggers Environmental Club – Weyburn
wishes for a bright future goes out to the following
Yorkton P.A.R.T.Y. (Prevent Alcohol and Risk related
Trauma in Youth)
scholarship recipients:
ways other than cash to lend our support, often using
Community Safety Net – Across Saskatchewan
Estevan Area Literacy Group Inc.
Regina Home Economics for Living Project (HELP)
the mediums we have readily available. It’s a method
SCHOLARSHIP
PROGRAM
that works well; more than 1,500 local organizations
throughout Access’ service area received support last
Playground Rehab @ Wascana Inc. – Regina
Camp Monahan Association – serving southern
much more than just writing a cheque. As a not-forprofit community-owned co-operative we look for
Women of the Dawn Counseling Centre – Regina
Saskatchewan Youth Co-operative
At Access, we believe corporate support can be so
STUDENT RECIPIENTS
year, through corporate sponsorships, promotion and
Saskatchewan
programming support on Access7. Television remains
Tamarack Foundation – serving southern Saskatchewan
Name of School
Scholarship Recipient(s)
Saltcoats School Library Committee
Coronach School
Brittaney Beck
a very powerful medium. In 2009, Access7 fundraising
Autism Resource Center – Regina
Jody Jensen
Yorkton Alliance of Asset Champions
Estevan Comprehensive School
Erin Dodds
telethons helped to raise more than $500,000 across
Saskatchewan Deaf and Hard of Hearing Inc
Rebecca Gustafson
Summer Program for Special Children – Regina
Miranda Morstad
organizations including the United Way in Weyburn
St. Pius School Community Council – Regina
Norquay School
Danaye Naclia
St. Joan of Arc Elementary School – Regina
Yorkton Sacred Heart High School
Jonathan Castro
and Estevan, the Regina Humane Society, the Regina
Sofia House – Regina
Rachelle Konjolka
Regina Early Learning Centre
Churchbridge Public School
Samantha Erhardt
Community Connections Inc. – Yorkton
Yorkton Regional High School
Arthur Loucks
Access Communications’ employees play a large role in
Churchbridge Daycare Co-op Inc.
Peter Machnee
Saskatchewan Youth Co-operative
Maidstone High School
Luke James
giving back to the communities in which they live and
EYES – Faculty of Engineering – University of Regina
Lashburn High School
Shawna Edwards
North Central Lakers Football – Regina
Unity Composite High School
Brian Kuhn
Children’s Fund and staff step up throughout the year
Weyburn and Area Council on Child Abuse (The Family
Rosetown Central High School
Hillary Prodahl
Sakewew High School – NB
Taylor Jimmy
to give back in other ways too:
Biggar Central School 2000
Stetler Heather
Place)
SCEP Centre Summer Friends Program – Regina
the province to assist a wide variety of community
and District Food Bank and the Unity Legion.
work. Staff fundraising activities support the Access
Big Brothers of Regina
21
Pumpkin
Patrol,
Halloween
Broadcasting, and in North Battleford by WPD
responded in a very supportive way. We were
safety program, is just one of the ways Access
our
annual
Ambulance Services. Together, we had 25 vehicles
able to help fill some cupboards at the Food Bank
Communications gets involved in the communities
out patrolling across the province, making sure our
and help our friends in need in the community
we serve. Our staff members have a great time
community’s children had a safe Halloween night.
– a great way to celebrate the vintage cars of
working with local community volunteers while
providing a valuable public service and keeping our
children safe.
Our media partner, 94.5 Jack FM, teamed up with us
again this year to collect over $40,000 in cash and
several thousand pounds of food during Food for
With the distinctive signs and flashing orange
Friends, our annual television/radio marathon for the
pumpkin on the roof, the Access service and partner
Regina and District Food Bank. This important annual
vehicles are easily spotted and are recognized as
event has raised over $150,000 and 60 tons of food
a welcome sight in neighbourhoods across the
throughout its seven year history and serves as a way
province. Pumpkin Patrol volunteers are in direct
to help the Food Bank assist those in need during the
contact with the local police or RCMP in order to
holiday season.
quickly report any incidents and ask for support if
needed.
yesterday. While summer is a great time of year for
families and vacations, it’s a very hard time of year
for the Food Bank as folks tend to forget about
the ongoing needs of those less fortunate in our
community. The money and food raised at this
annual summertime event go a long way in helping
to meet those needs. The Collectors Car Club of
Saskatchewan partnered with the Children’s Fund
again this year, combining their knowledge and
experience of classic vehicles and car shows with
Our Children’s Fund’s annual Labour Day Show &
our volunteer and staff resources to create another
Shine was again one of the largest outdoor vintage
outstanding fundraising event.
We were pleased to report a completely incident-
and classic car shows in the province. The event
free Halloween night last year, thanks to the patrol
attracted thousands of visitors to our beautiful Access
which was out in full force in Regina, La Ronge,
Community Park in Regina and raised over $4,000
Yorkton, Estevan, Weyburn and the Battlefords.
and 3,000 pounds of food for the Regina and District
We were assisted in Regina by volunteers from
Food Bank. After an early morning sprinkle of rain,
Citizens on Patrol, AECOM Engineering and Harvard
the sun came out, the cars came, and the community
In 2009, we looked to our staff members for
direction on how to increase our sustainability
efforts. Our “Tell Us How We Can Be Greener”
staff survey showed a strong level of support
among staff across the province for increased
internal initiatives. We learned that many Access
employees already reduce, reuse and recycle at home
and would support the more, similar disciplines at
work. A Green Team was formed to come up with
a proposed strategy for our co-operative to move
forward on new and improved ideas for lessening
our carbon footprint. We look forward to sharing our
benchmarks, our new initiatives and our progress in
our annual Report to Our Communities in 2010.
As a co-operative, the not-for-profit business model
of Access Communications allows us to reinvest every
dollar earned back into the organization, our people,
our products and services, and most importantly, our
communities. It’s a big part of our commitment to
social responsibility.
“Our year in Tiny-Go has been truly amazing! Thanks to your support, we
were able to create two smaller groups of children and work more intensely
with them. Their resulting progress has been nothing short of miraculous.
To everyone with your Children’s Fund thank you folks so much!”
From The Family Place (a division of the Weyburn and Area Council
on Child Abuse) in Weyburn
23
F uture
It seems like only yesterday that Access Communications
Co-operative was a brash newcomer in the field of cable
television – operating as Cable Regina and serving just
the province’s Queen City.
Now, Access has celebrated more than 30 years in
existence, and has established a reputation as one of
the leading players in the highly competitive Canadian
cable television market – now the largest television
provider in Saskatchewan and the sixth largest cable
television provider in Canada. It has taken a lot of hard
work and co-operative effort to bring us this far. Our
staff, members, and volunteers continue to make up a
team that just can’t be beaten when it comes to putting
Access’ Vision, Mission and Values into action.
Our commitment to creating high-end jobs, reinvesting
in the province, and listening to our customers remains
our focus and continues to successfully drive our business
forward. At Access, looking ahead to the future means
more digital technology, more high definition channels
and enhanced Internet services. It means upgraded
programming equipment and expanded playback
schedules for our Access7 community channels. And it
A C C E S S C O M M U N I C AT I O N S ’ 2 0 0 9 H O N O U R S
means more products and services in all the communities
Our co-operative was pleased to be recognized for our efforts in recruitment,
we are honoured to serve.
advertising, communications, and overall fiscal management throughout 2009.
As your local, community-owned not-for-profit cooperative, Access Communications is focused on a future
that continues to offer the best entertainment and
communications services, at the most reasonable prices
in the marketplace. We work in an increasingly exciting
industry; there’s always new technology being developed
to enhance how we all work, play and connect. We know
that together, with the ongoing passion of our staff and
the trust and support of our membership, the future of our
co-operative will be very bright.
We were honoured with the following awards:
Summit International Award
for Human Resources recruitment advertising campaign
4 ACE Awards for Communication Excellence:
Award of Excellence
Creative Execution – Access Recruitment TV “Hand” Spots
Award of Merit
Creative Execution in a TV Commercial: Access HighSpeed Internet
Award of Merit
Creative Execution – Identity Materials – Access In the Huddle Logo
Award of Merit
Communication Management –Access Human Resources Campaign
Saskatchewan Business Magazine – Top 100 Saskatchewan Companies
Regina Leader-Post – Regina’s Top 50 Companies
25
FINANCIAL OVERVIEW
Despite a challenging economic environment and a highly competitive landscape, Access Communications Co-operative’s strong financial
performance continued for fiscal 2009. Revenues grew by 13% to $58.5 million and net revenue, after distribution costs, increased by 12%
to $36 million.
Managing the Co-operative’s cost structure is imperative, particularly in the face of increased upward pressure on wages, network costs
and other operating costs experienced by all businesses in Saskatchewan’s growing economy. To that end, operating costs increased by
9% to $19.8 million for the 2009 fiscal year. That amount also included a 9% increase towards operating the Co-operative’s community
programming channels to $2 million – more than 5% of broadcast revenues.
Operating income before amortization and interest grew by 15% to $16.3 million. Amortization expense increased by 18% to $12.7 million
due to increased capital spends in our infrastructure. And, as a non-profit community-owned co-operative, 100% of that net income is
reinvested in our co-operative and the Saskatchewan communities we have the privilege to serve. No dividends are paid to members. In
2009, Access Communications generated a net profit of $2.7 million; a 19% increase from the prior year.
Access Communications Co-operative is committed to re-investment in our infrastructure providing leading-edge products and services to
our customers across the province. In fact, the Co-operative invested over $18 million this past year and has invested nearly $71 million in
Saskatchewan over the past five years. These investments mean more digital channels, more high definition channels, home phone service,
home security, faster Internet and improved Access7 community channels for Access customers.
Strong financial performance provided Access Communications the opportunity to acquire the Persona cable systems in Saskatchewan
in 2009. To finance their growth and the co-operative’s aggressive capital investment strategy, long-term debt grew to $54.5 million; an
increase of $30.5 million. The Co-operative’s net assets continue to grow and stood at $35 million as at August 31, 2009, an increase of
9% during the year.
Our results from this past year clearly illustrate that our co-operative business model continues to work well in our competitive environment.
By continuing to be accountable to our members, reinvesting in new technologies, offering local expression through community programming
and providing superior customer service and leading-edge products and services at reasonable prices, we remain confident that we will post
similar results into the future.
2005-2009 FINANCIAL HIGHLIGHTS
2005
2006
2007
2008
2009
$ 41, 5 6 3 , 0 0 0
$ 42,653,000
$ 46,028,000
$ 51,759,000
$ 58,508,000
10, 9 3 0 , 0 0 0
11,054,000
12,316,000
14,123,000
16,260,000
2, 1 1 5 , 0 0 0
1,727,000
1,843,000
2,258,000
2,694,000
N e t Assets
26, 5 9 1 , 0 0 0
28,318,000
30,160,000
32,338,000
35,112,000
C a p ital Spending
11, 3 5 0 , 0 0 0
11,977,000
12,479,000
16,904,000
18,066,000
R e v enue
O p e rating Income
N e t Income
27
C O M PA R AT I V E C H A R T S
18.00 Million
17.0 Million
16.0 Million
16.0 Million
60.0 Million
15.0 Million
55.0 Million
14.0 Million
50.0 Million
13.0 Million
45.0 Million
12.0 Million
40.0 Million
11.0 Million
35.0 Million
10.0 Million
10.0 Million
30.0 Million
9.0 Million
9.0 Million
25.0 Million
8.0 Million
8.0 Million
20.0 Million
7.0 Million
7.0 Million
15.0 Million
6.0 Million
6.0 Million
10.0 Million
5.0 Million
5.0 Million
15.00 Million
14.0 Million
13.0 Million
12.0 Million
11.0 Million
4.0 Million
5.0 Million
05
06
07
Comparative Revenue Analysis
(2005-2009)
08
09
4.0 Million
05
06
07
08
09
3.0 Million
2.5 Million
2.0 Million
1.5 Million
1.0 Million
0.5 Million
0 Million
06
07
08
Comparative Net Income Analysis
(2005-2009)
06
07
08
Comparative Capital Expenditures Analysis
(2005-2009)
Comparative Operating Income Analysis
(2005-2009)
05
05
09
09
RESPONSIBILITY FOR FINANCIAL REPORTING
The accompanying financial statements and all information in the annual report
have been prepared by management and approved by the Board of Directors of the
Co-operative.
The significant accounting policies followed by the Co-operative are contained in
the notes to the financial statements. Management is responsible for the accuracy,
integrity and objectivity of the financial statements within reasonable limits of
materiality and for the consistency of financial data included in the text of the annual
report.
To assist management in the discharge of these responsibilities, the Co-operative
maintains a system of internal control designed to provide reasonable assurance that
its assets are safe-guarded; that only valid and authorized transactions are executed;
and that accurate, timely and comprehensive financial information is prepared.
The financial statements have been examined independently by Deloitte & Touche LLP
on behalf of members, in accordance with generally accepted auditing standards. The
auditors’ report outlines the scope of their examination and expresses their opinion of
the financial statements of the Co-operative.
The audit committee of the Board of Directors meets with management and external
auditors to satisfy itself that each group is properly discharging its responsibilities and
to review the financial statements and independent auditors’ report. The Board of
Directors approves the financial statements for presentation to the members.
Jim Deane President & CEO
Carmela Haines
VP Finance & Administration
29
AUDITORS’ REPORT
To the Members of
Access Communications Co-operative Limited
We have audited the balance sheet of Access Communications Co-operative Limited
as at August 31, 2009 and the statements of income and retained earnings and
cash flows for the year then ended. These financial statements are the responsibility
of the Co-operative’s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects,
the financial position of the Co-operative as at August 31, 2009 and the results
of its operations and its cash flows for the year then ended in accordance with
Canadian generally accepted accounting principles.
Chartered Accountants
Regina, Saskatchewan
November 10, 2009
Deloitte & Touche LLP
900 - 2103 11th Ave
Bank of Montreal Building
Regina SK S4P 3Z8
Canada
Tel: 306-565-5200
Fax: 306-757-4753
www.deloitte.ca
BALANCE SHEET
AS AT AUGUST 31, 2009
2009
2008
ASSETS
CURRENT
Accounts receivable
$
Inventory
Prepaid expenses
I N V E S T M E N T S I N C O - O P E R A T I V E S S U B S C R I B E R B A S E (Note 4)
P R O P E R T Y, P L A N T A N D E Q U I P M E N T (Note 5)
D E F E R R E D C H A R G E S (Note 6)
$
1,700,911
$
1,455,309
890,045
4,046,265
236,015
41,905,621
52,459,593
3,476,779
102,124,273
1,414,874
1,259,773
710,694
3,385,341
171,215
16,661,285
45,819,787
2,694,891
$
68,732,519
CURRENT
Bank indebtedness $
Accounts payable and accrued charges
Customer deposits
Fair value of financial derivative instrument
92,203
$
8,094,096
4,325,990
—
12,512,289
602,073
8,104,424
3,607,708
79,905
12,394,110
L O N G T E R M D E B T (Note 7)
54,500,000
67,012,289
24,000,000
36,394,110
NET ASSETS
Shares (Note 8)
Retained earnings
Unrealized loss on derivative instrument (Note 11)
$
901
35,111,083
—
35,111,984
102,124,273
$
924
32,417,390
(79,905)
32,338,409
68,732,519
LIABILITIES
APPROVED BY THE BOARD
Director Jan Marce
Director Leith McKay
31
S TAT E M E N T O F I N C O M E AND RETAINED EARNINGS
YEAR ENDED AUGUST 31, 2009
2009
2008
REVENUE
Cable services
$
Telecommunications services
Advertising
Investment income
41,016,918
$
16,508,416
906,162
76,197
58,507,693
36,934,921
13,813,672
893,126
117,728
51,759,447
D I R E C T D I S T R I B U T I O N C O S T S 22,472,533
19,513,562
I N C O M E B E F O R E O T H E R O P E R A T I N G E X P E N S E S 36,035,160
32,245,885
O T H E R O P E R AT I N G E X P E N S E S
Community programming
Technical
Sales and marketing
Administrative
2,047,659
5,692,708
3,801,620
8,233,040
19,775,027
1,885,141
4,738,292
3,828,704
7,671,201
18,123,338
I N C O M E B E F O R E T H E F O L L O W I N G 16,260,133
14,122,547
A M O R T I Z AT I O N
Property, plant and equipment
Deferred charges
I N T E R E S T O N L O N G T E R M D E B T G A I N O N S A L E O F E Q U I P M E N T 10,846,471
1,805,062
1,065,414
(150,507)
9,169,950
1,507,750
1,248,439
(61,665)
13,566,440
11,864,474
N E T I N C O M E 2,693,693
2,258,073
R E T A I N E D E A R N I N G S , B E G I N N I N G O F Y E A R 32,417,390
30,159,317
R E TA I N E D E A R N I N G S , E N D O F Y E A R 35,111,083
32,417,390
$
$
S TAT E M E N T OF CASH FLOWS
YEAR ENDED AUGUST 31, 2009
2009
2008
N E T I N F L O W ( O U T F L O W ) O F C A S H R E L AT E D
TO THE FOLLOWING ACTIVITIES
O P E R AT I N G Net income
$
Items not affecting cash
Amortization
Gain on sale of equipment
Changes in working capital components
Accounts receivable
Inventory
Prepaid expenses
Accounts payable and accrued charges
Customer deposits
2,693,693
$
2,258,073
12,651,533
(150,507)
15,194,719
10,677,700
(61,665)
12,874,108
(286,037)
(195,536)
(179,351)
1,105,296
718,282
16,357,373
(146,250)
319,836
248,521
1,161,042
587,058
15,044,315
(16,130,142)
(14,995,961)
(1,115,624)
2,428,782
Business acquisition (Note 3)
Increase in deferred charges
Purchase of investments
Proceeds from sale of property, plant and equipment
FINANCING
Repayments of long term debt
Proceeds of long term debt
Credit facility arrangement fee
Non renewal of shares
(17,245,766)
(26,861,757)
(1,935,680)
(64,800)
411,793
(45,696,210)
(12,567,179)
—
(1,907,807)
(79,747)
241,720
(14,313,013)
(12,500,000)
43,000,000
(651,270)
(23)
29,848,707
(7,000,000)
6,000,000
—
(49)
(1,000,049)
I N C R E A S E ( D E C R E A S E ) I N C A S H P O S I T I O N CASH POSITION, BEGINNING OF YEAR
509,870
(602,073)
(268,747)
(333,326)
INVESTING
Purchase of property, plant and equipment
Less: (decrease) increase in accounts payable relating to
purchase of property, plant and equipment
CASH POSITION, END OF YEAR
(92,203)
(602,073)
CASH POSITION IS COMPRISED OF:
Bank indebtedness
(92,203)
(602,073)
Supplemental Information:
Interest paid
$
1,075,216 $
1,136,969
33
N O T E S TO THE FINANCIAL STATEMENTS
YEAR ENDED AUGUST 31, 2009
1. DESCRIPTION OF BUSINESS
Access Communications Co-operative Limited (the “Co-operative”) is a non-profit organization which provides local
community programming, cable television, Internet, and phone services. It serves 217 communities in the
Province of Saskatchewan.
2. SIGNIFICANT ACCOUNTING POLICIES
The financial statements have been prepared in accordance with Canadian generally accepted accounting principles
and reflect the following policies:
a) Use of estimates
The preparation of the financial statements in conformity with Canadian generally accepted accounting principles
requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses during the year.
Actual results could differ from those estimates.
Key areas of estimation, where management has made difficult, complex or subjective judgments, often as a result of
matters that are inherently uncertain, are the allowance for doubtful accounts, capitalization of labour and overhead,
useful lives of depreciable assets and subscriber base, accrued liabilities and the recoverability of deferred costs.
Significant changes in assumptions with respect to the competitive environment could result in impairment
of intangible assets.
b) Revenue recognition
Cable, Internet and phone revenue are recognized when service is provided.
Subscriber connection revenue is deferred and recognized on a straight-line basis over three years.
Advertising revenue is recognized when the related advertising is aired.
c) Cash and cash equivalents
Cash and cash equivalents consist of cash, balances with banks and bank indebtedness, including outstanding cheques.
d) Inventory
Inventory is valued at the lower of cost and net realizable value with cost being determined on the average cost basis.
e) Property, plant, equipment and subscriber base
Property, plant, equipment and subscriber base are stated at cost. Plant, equipment and subscriber base are amortized
using the straight-line method at annual rates of 2.5% for subscriber base, 5% for building, 10% for head end, plant
and subscriber drops, 20% for cablecasting equipment, digital boxes and other equipment and 33.33% for subscriber installs.
f) Deferred charges
Deferred charges include (i) direct connection costs incurred in respect of connection fee revenue and the cost of
digital boxes that are sold as described in the revenue recognition policy. These costs are deferred and amortized on a
straight-line basis over three years and (ii) the credit facility arrangement fees amortized on a straight-line basis over
the term of the facility.
g) Customer deposits
Amounts received from customers in advance of services being provided are recorded as customer deposits.
h) Taxes
The Co-operative is a non-profit organization and is exempt from income taxes and capital taxes under
Sections 149(1)(l) and 181.1(3)(c) of the Income Tax Act.
35
i) Employee future benefits
The Co-operative has a defined contribution plan. The Co-operative’s obligation under the defined contribution
plan is limited to making regular contributions which are expensed as incurred. The Co-operative also has a defined
benefit plan which is an individual pension plan. An actuarial valuation for this plan will be completed every three years
and actuarial gains or losses will be amortized on a straight-line basis over the remaining service life of the employee.
j) Changes in accounting policies
Effective September 1, 2008, the Co-operative adopted CICA Handbook Section 3031 – Inventories.
This section provides more guidance on the measurement and disclosure of inventories. The adoption of this new
Section had no impact on its financial statements.
Effective September 1, 2008 the Co-operative adopted CICA Handbook Section 1535 – Capital Disclosures. This section
requires disclosure of both qualitative and quantitative information that enables users of financial statements to
evaluate the Co-operative’s objectives, policies and processes for managing capital. This new disclosure is provided in Note 9.
k) Future accounting policies
In February 2008, the CICA issued Section 3064 – Goodwill and Intangible Assets, replacing Section 3062 – Goodwill
and Other Intangible Assets and Section 3450 – Research and Development Costs. The new Section will be applicable
to financial statements relating to fiscal years beginning on or after October 1, 2008. It establishes standards for
the recognition, measurement, presentation and disclosure of intangible assets and goodwill subsequent to its initial
recognition. Standards concerning goodwill are unchanged from the standards included in the previous Section 3062.
However, co-operative enterprises should not apply the Section to intangible assets or goodwill acquired in a business
combination until interpretive guidance related to the application of the purchase method by these enterprises is issued.
The Co-operative applied the Section relating to standards for the recognition, measurement, presentation and
disclosure of intangible assets. The adoption of this new Section had no impact on its financial statements.
As new financial instruments standards will be included in the proposed set of GAAP standards for
private enterprises presently under development, the CICA has decided that private enterprises and not-for-profit
enterprises will not be required to apply CICA Handbook Sections 1530 – Comprehensive Income; 3855,
Financial Instruments – Recognition and Measurement; 3862, Financial Instruments – Disclosures; 3863,
Financial Instruments – Presentation; and 3865 – Hedges which would otherwise have applied to the financial
statements of the Co-operative for the year ended August 31, 2009. The Co-operative has elected to use this
exemption and applies the requirements of Section 3860, Financial Instruments – Disclosure and Presentation
and of Accounting Guideline 13 Hedging Relationships (AcG-13).
3. BUSINESS ACQUISITION
Effective June 30, 2009, the Co-operative acquired 184 cable systems serving approximately 17,500 basic
subscribers in the Province of Saskatchewan. The purchase price was allocated as follows:
Identifiable net assets acquired at assigned fair market value:
Subscriber base
Property plant and equipment Working capital deficiency
Net assets acquired $ 26,112,125
1,137,875
(388,243)
$ 26,861,757
37
4. SUBSCRIBER BASE
2009
Cost Subscriber base $
47,767,593 $
2008
Accumulated
Amortization
5,861,972
$
Net Book
Value 41,905,621
S
Net Book
Value
16,661,285
5 . P R O P E R T Y, P L A N T A N D E Q U I P M E N T
2008
2009
Cost Accumulated
Amortization
Net Book
Value Head end, plant, and
subscriber drops
$ 88,081,443
$
53,705,524
$
34,375,919
$
7,526,127
5,241,758 2,284,369
Building
Cablecasting equipment
3,542,3622,804,053
738,309
14,691,627
6,945,334
7,746,293
Digital boxes
Cable modems
8,706,944 6,886,944 1,820,000
Other
11,617,748
7,873,016
3,744,732
134,166,251
83,456,629
50,709,622
Work in progress
190,703
— 190,703
1,559,268
— 1,559,268
Land $
135,916,222
$
83,456,629
$
Other assets include computers, test equipment and tools, furniture and building improvements.
52,459,593
$
Net Book
Value
26,861,611
1,470,757
660,745
7,049,266
1,554,664
2,570,074
40,167,117
4,088,545
1,564,125
45,819,787
6. DEFERRED CHARGES
2009
2008
Cost
Accumulated Net Book
Amortization
Value
Connection costs
$ 10,473,512
$
Digital box costs 3,589,976
651,270
Credit facility arrangement fee
$ 14,714,758
Net Book
Value
7,611,821
$ 2,861,691
$ 2,685,146
3,589,976
9,746
–
36,182 615,088
–
$ 11,237,979
$ 3,476,779
$ 2,694,891
7. LONG TERM DEBT
Effective interest rate % at August 31, 2009
Operating loan 4.44%
Term loan 4.50%
2009
2008
$ 29,500,000
25,000,000
$ 24,000,000
–
$ 54,500,000
$ 24,000,000
A syndicate of banks has provided the Co-operative a $75 million credit facility comprised of a $50 million revolving
operating facility and a $25 million non-revolving term facility by way of Bankers’ Acceptances or Prime Rate Loans.
The revolving operating facility includes a $1 million operating line of credit by way of Prime Rate Loans or Letters of Credit.
Debt repayments of $2.5 million per year for the term facility commence September 1, 2011. There are no debt repayments
requirements for the revolving operating credit facility. The maturity date of the credit facility agreement is June 30, 2012.
The loans are secured by a debenture.
Under the terms of this long term debt, the Co-operative must satisfy certain covenants as to its fixed charge coverage ratio
and funded debt to EBITDA ratio. During the year, the Co-operative complied with all these covenants.
39
8. SHARES
a) Authorized
The Co-operative is authorized to issue an unlimited number of Class A shares with a par value of $5 and an unlimited number of
Class B shares with a par value of $1.
b) Issued
2009
Class A Class B Number
77
516
2008
$
385 516 Number
74
554
901
$
370
554
924
During the year, 10 Class A shares were not renewed and have been cancelled.
9. NET ASSET MANAGEMENT
The Co-operative’s primary objectives when managing its net assets are to ensure adequate funding is available to pay suppliers
and other creditors, to finance new products and services and to support the Co-operative’s long-term growth strategies.
The Co-operative is a non-profit service co-operative. Earnings are not returned to the membership as dividends, but are
retained by the Co-operative to improve services to customers or to increase and broaden community channel programming.
10. COMMITMENTS
a) Lease commitments
Future payments under lease obligations are as follows:
2010 $ 272,860
2011 194,167
2012 126,721
2013 94,724
2014 85,680
b) Letter of credit
The Co-operative has arranged a letter of credit in the amount of $233,806 to cover any potential exposure under network contracts
where a third party has assumed liability.
11. EMPLOYEE FUTURE BENEFITS
The Co-operative made contributions of $533,270 (2008 – $601,978) to its employee pension plans.
12. FINANCIAL INSTRUMENTS
Classification
Bank indebtedness is classified as held-for-trading and is measured at fair value. Accounts receivables and investments in co-operatives
are classified as loans and receivables and are measured at amortized cost. Accounts payable, customer deposits and long term debt
are measured at amortized cost using the effective interest method.
As at August 31, 2009, the Co-operative does not have any outstanding derivative contracts.
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Fair Value
The carrying value of the Co-operative’s financial instruments, including investments in co-operatives, accounts receivable,
bank indebtedness, accounts payable and accrued charges approximates fair value due to the immediate or short term
maturity of these items.
The carrying value of long term debt approximates its fair value because interest payable under the terms of the bank
loan is variable, based upon current Canadian bankers’ acceptance rates and prime rates.
The Co-operative had a $10 million fixed rate interest rate swap bearing interest at 4.82% which matured on
November 25, 2008. The estimated fair value of this financial derivative at August 31, 2008 was $79,905.
Risks and Risk Management
The Co-operative faces certain financial risks such as interest rate and credit risk which can impact its financial performance.
The Co-operative is exposed to interest rates. Occasionally, the Co-operative utilizes interest rate swaps to manage its
exposure to interest rate risk. Financial instruments are not used for trading or speculative purposes.
The Co-operative mitigates risk associated with these financial instruments through Board-approved policies, limits on use
and amount of exposure, internal monitoring, and compliance reporting to senior management and the Board.
The Co-operative’s accounts receivable are not subject to any significant concentration of credit risk, except that all of its cable
and telecommunications services are provided to customers located in the province of Saskatchewan.
13. SUBSEQUENT EVENT
On October 7, 2009 the Government of Canada and members of the broadcasting industry that were required to
pay Part II license fees announced they had entered into an agreement on the Part II license fee issue. The agreement
has resulted in the government agreeing that it will not seek Part II license fees for the fiscal years 2007, 2008 and 2009 that
were not collected due to the ongoing legal dispute. In return, members of the broadcasting industry discontinued their
appeal before the Supreme Court of Canada challenging the validity of the fees. Under the settlement, the government is
recommending that the CRTC develop a new forward-looking regime that would be capped at $100 million per year, indexed to
inflation. In October 2009, the Co-operative recorded a recovery of approximately $1 million for the Part II fees that had been
accrued for the past three years and will not be paid pursuant to the agreement.
AN EYE ON THE
BOTTOM LINE –
AND THE
ENVIRONMENT
We want to ensure the environment is a safe place for our communities,
so this report was printed using recycled paper which was printed and milled
under the highest standards of the Forestry Standard Council.
The inks used in the printing are from a source that chooses organic pigments
selected for their low level of contaminants.
We hope you’ve enjoyed the outcome of our efforts.
43
C O M PA N Y P R O F I L E
Access Communications Co-operative is a limited company which was
incorporated on July 23, 1974, under the Co-operative Association Act
of Saskatchewan.
It is a non-profit service co-operative. Earnings are not returned to the membership
as dividends, and instead are re-invested by the co-operative to increase and
broaden community channel programming and improve products and services.
Any resident of a community served by Access Communications, who is 18 years
of age or older and is a Canadian citizen can apply for individual membership.
Any organization with community, member or patron service objectives, located
in an Access service area, may apply to become a member organization of the
co-operative.
(clockwise from left)
Access Communications’ membership policy is not restrictive. The only criterion
Access staff member Johanna Foster helps customer
used in approving applications for membership, other than those stated above,
Joanna Kasprzyk, Access manager Marilyn Chernoff-
is that the applicant be supportive, promote the affairs of the co-operative, and
agree to observe its bylaws.
Kelly presents a Children’s Fund donation to Principal
Donna Olson of Pre-Cam Community School in La
Ronge, Access7 volunteer Chris Workman on the job in
the control room, Access staff member Nicole Berenyi
A board of directors, consisting of twelve directors and elected for three-year
terms at annual meetings, guides the development and operation of Access
Communications Co-operative Limited.
ready to serve during the 2009 Yorkton Customer
Appreciation Day, Access manager Wade Peterson
presents the Quota Club Access Communications’
Entrepreneur Award to Yvette Delanoy-Garland of
Weyburn, Treena Rathwell from the Battlefords’ United
Way presents a certificate of appreciation to Access
manager Martin Smith.
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Regina (Head Office)
Estevan
Weyburn
North Battleford
Yorkton
La Ronge
2250 Park Street
1126 6th Street
120 10th Avenue SE
1192 99th Street
22 6th Avenue
205 120 Boardman Street
S4N 7K7
S4A 1A8
S4H 2L5
S9A 0P3
S3N 0X5
S0J 1L0
306.569.3510
306.634.7378
306.824.0320
306.445.4045
306.783.1566
306.425.2276
Customer Service Toll-free throughout Saskatchewan 1.866.363.2225
www.accesscomm.ca