2023 Q2 Form 10-Q Financial Statement

#000143774923013053 Filed on May 08, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023 Q1
Revenue $84.98M $80.43M
YoY Change 2.28% -0.82%
Cost Of Revenue $66.95M $66.37M
YoY Change 9.69% 10.8%
Gross Profit $18.03M $14.06M
YoY Change -18.23% -33.67%
Gross Profit Margin 21.22% 17.48%
Selling, General & Admin $24.10M $23.88M
YoY Change 18.64% 23.86%
% of Gross Profit 133.67% 169.85%
Research & Development $4.581M $4.815M
YoY Change 32.21% 27.89%
% of Gross Profit 25.4% 34.24%
Depreciation & Amortization $8.907M $8.588M
YoY Change -7.01% 42.11%
% of Gross Profit 49.4% 61.08%
Operating Expenses $31.13M $31.34M
YoY Change 17.96% 20.34%
Operating Profit -$13.10M -$17.28M
YoY Change 201.87% 256.5%
Interest Expense -$10.57M -$7.880M
YoY Change 336.37% 338.75%
% of Operating Profit
Other Income/Expense, Net -$20.89M -$3.510M
YoY Change 41684.0% -220.78%
Pretax Income -$34.00M -$20.80M
YoY Change 1324.38% 971.06%
Income Tax -$3.025M -$1.710M
% Of Pretax Income
Net Earnings -$30.97M -$19.08M
YoY Change 890.98% 531.89%
Net Earnings / Revenue -36.44% -23.73%
Basic Earnings Per Share -$2.86 -$1.77
Diluted Earnings Per Share -$2.86 -$1.77
COMMON SHARES
Basic Shares Outstanding 10.83M 10.83M
Diluted Shares Outstanding 10.84M 10.81M

Balance Sheet

Concept 2023 Q2 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $147.9M $11.77M
YoY Change 2171.34% 89.86%
Cash & Equivalents $147.9M $11.77M
Short-Term Investments
Other Short-Term Assets $123.2M $117.8M
YoY Change 5.0% -3.07%
Inventory $7.800M $6.539M
Prepaid Expenses
Receivables $23.51M $24.17M
Other Receivables $1.818M $2.206M
Total Short-Term Assets $308.7M $167.7M
YoY Change 101.32% 8.72%
LONG-TERM ASSETS
Property, Plant & Equipment $319.4M $303.8M
YoY Change 30.55% 58.67%
Goodwill $130.4M $130.4M
YoY Change 0.0%
Intangibles $34.69M $37.08M
YoY Change -22.63% -22.19%
Long-Term Investments $2.012M $2.012M
YoY Change 0.0% 0.0%
Other Assets $24.25M $16.38M
YoY Change 35.48% -9.77%
Total Long-Term Assets $534.6M $514.0M
YoY Change 21.12% 25.62%
TOTAL ASSETS
Total Short-Term Assets $308.7M $167.7M
Total Long-Term Assets $534.6M $514.0M
Total Assets $843.3M $681.7M
YoY Change 41.8% 21.0%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.96M $16.64M
YoY Change -57.57% 17.98%
Accrued Expenses $27.41M $22.03M
YoY Change 26.33% 34.74%
Deferred Revenue $128.9M $129.0M
YoY Change 0.44%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $194.1M $192.1M
YoY Change -54.19% 5.07%
LONG-TERM LIABILITIES
Long-Term Debt $553.4M $360.8M
YoY Change 74.16%
Other Long-Term Liabilities $35.12M $36.12M
YoY Change -3.01%
Total Long-Term Liabilities $588.5M $396.9M
YoY Change 1524.96%
TOTAL LIABILITIES
Total Short-Term Liabilities $194.1M $192.1M
Total Long-Term Liabilities $588.5M $396.9M
Total Liabilities $792.2M $602.0M
YoY Change 64.63% 229.25%
SHAREHOLDERS EQUITY
Retained Earnings $5.848M $36.82M
YoY Change -54.24%
Common Stock $44.45M $42.22M
YoY Change 27.23%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $51.11M $79.65M
YoY Change
Total Liabilities & Shareholders Equity $843.3M $681.7M
YoY Change 41.8% 21.0%

Cashflow Statement

Concept 2023 Q2 2023 Q1
OPERATING ACTIVITIES
Net Income -$30.97M -$19.08M
YoY Change 890.98% 531.89%
Depreciation, Depletion And Amortization $8.907M $8.588M
YoY Change -7.01% 42.11%
Cash From Operating Activities -$1.587M -$5.251M
YoY Change -112.62% -197.11%
INVESTING ACTIVITIES
Capital Expenditures $23.16M $31.75M
YoY Change -176.46% 37.7%
Acquisitions
YoY Change
Other Investing Activities -$217.0K -$166.0K
YoY Change 886.36% 74.74%
Cash From Investing Activities -$23.38M -$31.91M
YoY Change -22.88% 37.85%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $172.8M $25.44M
YoY Change 857.62% 71.45%
NET CHANGE
Cash From Operating Activities -$1.587M -$5.251M
Cash From Investing Activities -$23.38M -$31.91M
Cash From Financing Activities $172.8M $25.44M
Net Change In Cash $147.8M -$11.72M
YoY Change 47738.83% 303.68%
FREE CASH FLOW
Cash From Operating Activities -$1.587M -$5.251M
Capital Expenditures $23.16M $31.75M
Free Cash Flow -$24.75M -$37.00M
YoY Change -157.73% 109.65%

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CY2022Q1 us-gaap Accretion Expense
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CY2022Q1 tcx Disposal Of Domain Names
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CY2022Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2023Q1 us-gaap Basis Of Accounting
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<p style="margin: 0pt; text-align: justify; font-family: Times New Roman; font-size: 10pt;"><b><em style="font: inherit;">2.</em> Basis of Presentation:</b></p> <p style="margin: 0px; text-align: justify; font-family: Times New Roman; font-size: 10pt;"> </p> <p style="margin: 0px; text-indent: 27pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: justify;">The accompanying unaudited interim consolidated balance sheets, and the related consolidated statements of operations and comprehensive income and cash flows reflect all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position of Tucows and its subsidiaries as at <em style="font: inherit;"> March 31, 2023</em> and the results of operations and cash flows for the interim periods ended <em style="font: inherit;"> March 31, 2023</em> and <em style="font: inherit;">2022</em>. The results of operations presented in this Quarterly Report on Form <em style="font: inherit;">10</em>-Q are <em style="font: inherit;">not</em> necessarily indicative of the results of operations that <em style="font: inherit;"> may </em>be expected for future periods.</p> <p style="margin: 0px; font-family: Times New Roman; font-size: 10pt;"> </p> <p style="margin: 0px; text-indent: 27pt; font-family: &quot;Times New Roman&quot;; font-size: 10pt; text-align: justify;">The accompanying unaudited interim consolidated financial statements have been prepared by Tucows in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in the Company's annual audited consolidated financial statements and accompanying notes have been condensed or omitted. These interim consolidated financial statements and accompanying notes follow the same accounting policies and methods of application used in the annual financial statements and should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended <em style="font: inherit;"> December 31, </em><em style="font: inherit;">2022</em> included in Tucows' <em style="font: inherit;">2022</em> Annual Report on Form <em style="font: inherit;">10</em>-K filed with the SEC on <em style="font: inherit;"> March 15, 2023 (</em>the “<em style="font: inherit;">2022</em> Annual Report”). There have been <em style="font: inherit;">no</em> material changes to our significant accounting policies and estimates during the <em style="font: inherit;">three</em> months ended <em style="font: inherit;"> March 31, 2023</em> as compared to the significant accounting policies and estimates described in our <em style="font: inherit;">2022</em> Annual Report. </p> <p style="margin: 0px; text-indent: 27pt; font-family: Times New Roman; font-size: 10pt;"> </p>
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CY2023Q1 tcx Increase Decrease In Operating Lease Rightofuse Asset
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LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
4344000 usd
CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
5279000 usd
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LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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CY2023Q1 tcx Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
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CY2023Q1 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
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CY2023Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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2267000 usd
CY2023Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
18700000 usd
CY2023Q1 us-gaap Number Of Operating Segments
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3 pure
CY2023Q1 us-gaap Net Income Loss
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-19083000 usd
CY2022Q1 us-gaap Net Income Loss
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CY2023Q1 us-gaap Income Tax Expense Benefit
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CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1078000 usd
CY2023Q1 us-gaap Depreciation
Depreciation
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CY2022Q1 us-gaap Depreciation
Depreciation
6043000 usd
CY2023Q1 tcx Tangible Asset Impairment Charges Including Loss On Disposition Of Assets
TangibleAssetImpairmentChargesIncludingLossOnDispositionOfAssets
1942000 usd
CY2022Q1 tcx Tangible Asset Impairment Charges Including Loss On Disposition Of Assets
TangibleAssetImpairmentChargesIncludingLossOnDispositionOfAssets
412000 usd
CY2023Q1 us-gaap Amortization Of Intangible Assets
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98000 usd
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2246000 usd
CY2022Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1391000 usd
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ForeignCurrencyTransactionGainLossUnrealized
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CY2022Q1 us-gaap Foreign Currency Transaction Gain Loss Unrealized
ForeignCurrencyTransactionGainLossUnrealized
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CY2023Q1 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
255000 usd
CY2022Q1 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
617000 usd
CY2023Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
80430000 usd
CY2023Q1 us-gaap Revenues
Revenues
80430000 usd
CY2023Q1 us-gaap Cost Of Goods And Service Excluding Depreciation Depletion And Amortization
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49290000 usd
CY2023Q1 tcx Segment Gross Margin
SegmentGrossMargin
31140000 usd
CY2023Q1 tcx Cost Of Goods And Services Sold Network Expenses
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6323000 usd
CY2023Q1 us-gaap Cost Of Goods And Services Sold Depreciation
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CY2023Q1 us-gaap Cost Of Goods And Services Sold Amortization
CostOfGoodsAndServicesSoldAmortization
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CY2023Q1 tcx Cost Of Revenue Property And Equipment Impairment
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1942000 usd
CY2023Q1 us-gaap Gross Profit
GrossProfit
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CY2023Q1 us-gaap Selling And Marketing Expense
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CY2023Q1 us-gaap Research And Development Expense
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CY2023Q1 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
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CY2023Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
152000 usd
CY2023Q1 us-gaap Gain Loss On Sale Of Property Plant Equipment
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CY2023Q1 tcx Amortization Of Intangible Assets Net Of Cost Of Services Amortization
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2494000 usd
CY2023Q1 us-gaap Operating Expenses
OperatingExpenses
31344000 usd
CY2023Q1 us-gaap Other Nonoperating Income
OtherNonoperatingIncome
4370000 usd
CY2023Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-3510000 usd
CY2022Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
81099000 usd
CY2022Q1 us-gaap Revenue Not From Contract With Customer
RevenueNotFromContractWithCustomer
0 usd
CY2022Q1 us-gaap Revenues
Revenues
81099000 usd
CY2022Q1 us-gaap Cost Of Goods And Service Excluding Depreciation Depletion And Amortization
CostOfGoodsAndServiceExcludingDepreciationDepletionAndAmortization
49421000 usd
CY2022Q1 tcx Segment Gross Margin
SegmentGrossMargin
31678000 usd
CY2022Q1 tcx Cost Of Goods And Services Sold Network Expenses
CostOfGoodsAndServicesSoldNetworkExpenses
4180000 usd
CY2022Q1 us-gaap Cost Of Goods And Services Sold Depreciation
CostOfGoodsAndServicesSoldDepreciation
5895000 usd
CY2022Q1 us-gaap Cost Of Goods And Services Sold Amortization
CostOfGoodsAndServicesSoldAmortization
378000 usd
CY2022Q1 tcx Cost Of Revenue Property And Equipment Impairment
CostOfRevenuePropertyAndEquipmentImpairment
27000 usd
CY2022Q1 us-gaap Gross Profit
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21198000 usd
CY2022Q1 us-gaap Selling And Marketing Expense
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11987000 usd
CY2022Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
3765000 usd
CY2022Q1 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
7296000 usd
CY2022Q1 us-gaap Depreciation And Amortization
DepreciationAndAmortization
148000 usd
CY2022Q1 us-gaap Gain Loss On Sale Of Property Plant Equipment
GainLossOnSaleOfPropertyPlantEquipment
-385000 usd
CY2022Q1 tcx Amortization Of Intangible Assets Net Of Cost Of Services Amortization
AmortizationOfIntangibleAssetsNetOfCostOfServicesAmortization
2465000 usd
CY2022Q1 us-gaap Operating Expenses
OperatingExpenses
26046000 usd
CY2022Q1 us-gaap Gain Loss On Disposition Of Intangible Assets
GainLossOnDispositionOfIntangibleAssets
4752000 usd
CY2022Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
2906000 usd
CY2022Q1 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
-1942000 usd
CY2023Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
303791000 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
281495000 usd
CY2023Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
24800000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
27506000 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
693000 usd
CY2023Q1 tcx Allowance For Doubtful Accounts Charged To Recovered Costs And Expenses
AllowanceForDoubtfulAccountsChargedToRecoveredCostsAndExpenses
0 usd
CY2023Q1 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
68000 usd
CY2023Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
625000 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
541000 usd
CY2022 tcx Allowance For Doubtful Accounts Charged To Recovered Costs And Expenses
AllowanceForDoubtfulAccountsChargedToRecoveredCostsAndExpenses
152000 usd
CY2022 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
0 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
693000 usd
CY2022Q4 us-gaap Stockholders Equity
StockholdersEquity
96657000 usd
CY2023Q1 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
0 usd
CY2023Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
2246000 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
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CY2023Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
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CY2023Q1 us-gaap Stockholders Equity
StockholdersEquity
79652000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
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2246000 usd
CY2022Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1391000 usd
CY2022Q4 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount Current
SharesSubjectToMandatoryRedemptionSettlementTermsAmountCurrent
91396000 usd
CY2021Q4 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount Current
SharesSubjectToMandatoryRedemptionSettlementTermsAmountCurrent
0 usd
CY2023Q1 tcx Financial Instruments Subject To Mandatory Redemption Funding
FinancialInstrumentsSubjectToMandatoryRedemptionFunding
0 usd
CY2022 tcx Financial Instruments Subject To Mandatory Redemption Funding
FinancialInstrumentsSubjectToMandatoryRedemptionFunding
60000000 usd
CY2023Q1 tcx Financial Instruments Subject To Mandatory Redemption Milestone Funding
FinancialInstrumentsSubjectToMandatoryRedemptionMilestoneFunding
30000000 usd
CY2022 tcx Financial Instruments Subject To Mandatory Redemption Milestone Funding
FinancialInstrumentsSubjectToMandatoryRedemptionMilestoneFunding
27500000 usd
CY2023Q1 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Impact Of Changes In Fair Value Of Shares On Amount
SharesSubjectToMandatoryRedemptionSettlementTermsImpactOfChangesInFairValueOfSharesOnAmount
4179000 usd
CY2022Q4 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Impact Of Changes In Fair Value Of Shares On Amount
SharesSubjectToMandatoryRedemptionSettlementTermsImpactOfChangesInFairValueOfSharesOnAmount
3896000 usd
CY2023Q1 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount Current
SharesSubjectToMandatoryRedemptionSettlementTermsAmountCurrent
125575000 usd
CY2022Q4 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount Current
SharesSubjectToMandatoryRedemptionSettlementTermsAmountCurrent
91396000 usd
CY2023Q1 tcx Financial Instruments Subject To Mandatory Redemption Deferred Preferred Financing Costs
FinancialInstrumentsSubjectToMandatoryRedemptionDeferredPreferredFinancingCosts
771000 usd
CY2022 tcx Financial Instruments Subject To Mandatory Redemption Deferred Preferred Financing Costs
FinancialInstrumentsSubjectToMandatoryRedemptionDeferredPreferredFinancingCosts
962000 usd
CY2023Q1 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount Noncurrent
SharesSubjectToMandatoryRedemptionSettlementTermsAmountNoncurrent
124804000 usd
CY2022Q4 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount Noncurrent
SharesSubjectToMandatoryRedemptionSettlementTermsAmountNoncurrent
90434000 usd
CY2023Q1 tcx Fianncial Instrument Subject To Mandatory Redemption Maturity Remainder Of Fiscal Year
FianncialInstrumentSubjectToMandatoryRedemptionMaturityRemainderOfFiscalYear
0 usd
CY2023Q1 us-gaap Financial Instruments Subject To Mandatory Redemption Redeemable Within One Year
FinancialInstrumentsSubjectToMandatoryRedemptionRedeemableWithinOneYear
9241000 usd
CY2023Q1 us-gaap Financial Instruments Subject To Mandatory Redemption Redeemable In Year Two
FinancialInstrumentsSubjectToMandatoryRedemptionRedeemableInYearTwo
23424000 usd
CY2023Q1 us-gaap Financial Instruments Subject To Mandatory Redemption Redeemable In Year Three
FinancialInstrumentsSubjectToMandatoryRedemptionRedeemableInYearThree
23296000 usd
CY2023Q1 tcx Financial Instrument Subject To Mandatoryredemption Maturity Year Four And After
FinancialInstrumentSubjectToMandatoryredemptionMaturityYearFourAndAfter
191759000 usd
CY2023Q1 us-gaap Shares Subject To Mandatory Redemption Settlement Terms Amount
SharesSubjectToMandatoryRedemptionSettlementTermsAmount
247720000 usd

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