Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) ("Quebecor") today reported
its annual and fourth quarter consolidated financial results for
2009. Quebecor consolidates the financial results of its Quebecor
Media Inc. ("Quebecor Media") subsidiary, in which it holds a 54.7%
interest.
2009 highlights
- Quebecor records revenues of $3.78 billion, up $50.9 million (1.4%) from
2008.
- Operating income(1): up $155.6 million (13.9%) to $1.28 billion.
- Net income: $277.7 million ($4.32 per basic share) in 2009, up
$89.7 million (47.7% or $1.40 per basic share).
- Telecommunications segment: operating income up $175.0 million (21.9%)
due to customer growth.
- Restructuring and other cost-reduction initiatives in the News Media
segment generate total savings of approximately $66.0 million.
Fourth quarter 2009 highlights
- Operating income(1): up $77.5 million (25.0%) to $387.6 million, with a
$62.8 million (28.8%) increase in the Telecommunications segment.
- Net income: $73.8 million ($1.15 per basic share), compared with net loss
of $343.6 million (-$5.34 per basic share) in the same quarter of 2008.
- News Media segment: operating income up $14.5 million (26.5%).
"Quebecor logged a noteworthy operational performance in 2009,"
said Pierre Karl Peladeau, President and Chief Executive Officer of
Quebecor. "The Telecommunications segment's excellent results,
propelled by customer growth for all its services, which has now
continued for 18 consecutive quarters, played a significant role in
the Company's strong revenues, operating income and net income.
Despite the economic crisis, which has hit the media industry hard,
Quebecor's diversified business model proved to be a robust driver
of growth. Our restructuring programs in the News Media segment
also bore fruit. Despite the substantial drop in advertising
revenues in 2009, the News Media segment's operating income jumped
26.5% in the fourth quarter. The improvement bears witness to our
ability to adapt our modus operandi in order to deliver
economically viable news services that harness the power of new
technologies.
(1) See "Operating income" under "Definitions."
"Quebecor is pushing ahead with implementation of its strategic
plan aimed at producing and distributing content of the highest
quality on the greatest possible number of distribution platforms
in Canada. We have been a customer-driven organization for years
and we will remain true to that approach in 2010 as we gear up to
provide state-of-the-art wireless telephone service. We are
confident that this growth sector will become a mainstay of our
business plan. It will enable Quebecor to distribute its exclusive
original content on a new mobile platform, promising significant
opportunities for multimedia synergies and long-term growth. In the
wake of our reorganization and the implementation of a new business
model in the media field, we have continued our ISO (Integration,
Syndication, Optimization) program and the development of the QMI
Agency, which was created to aggregate and circulate news texts,
photos and videos published by Quebecor's various media properties,
generate new revenue streams and supply information and content to
our mobile, television and print platforms. On another front, to
address our customers' needs for value-added advertising solutions,
we have combined our national sales forces into a new one-stop
shop, the QMI National Sales Office, which will offer customers
complete media solutions.
"Strengthening our positioning as a fully integrated media group
will give our customers access to a full range of advanced services
of the highest calibre, at a highly competitive price," said Mr.
Peladeau. "Being a digital leader, supporting consumers as they
change their habits and seizing the related growth opportunities
are the challenges we face - challenges we fully intend to
meet."
Table 1
Quebecor financial highlights, 2005 to 2009.
(in millions of Canadian dollars, except per share data)
-----------------------------------------------------------------------
-----------------------------------------------------------------------
2009 2008 2007 2006 2005
-----------------------------------------------------------------------
Revenues $3,781.0 $3,730.1 $3,365.9 $2,998.6 $2,695.4
Operating income(1) 1,276.7 1,121.1 948.8 785.5 729.6
Net income (loss) 277.7 188.0 (968.5) (94.2) 69.3
Adjusted income from
continuing operating
activities (2), (3) 236.3 179.4 134.4 97.4 54.9
Per basic share:
Net income (loss) 4.32 2.92 (15.06) (1.47) 1.07
Adjusted income
from continuing
operating
activities(2),(3) 3.68 2.79 2.09 1.51 0.85
-----------------------------------------------------------------------
(1) See "Operating income" under "Definitions."
(2) See "Discontinued operations."
(3) See "Adjusted income from continuing operating activities" under
"Definitions."
Analysis of 2009 results
- Quebecor's consolidated revenues from continuing operations rose $50.9
million (1.4%) to $3.78 billion in 2009, driven by increases in the
following segments:
- Telecommunications (up $197.0 million or 10.9% of segment revenues)
mainly because of customer growth for all services;
- Leisure and Entertainment (up $5.9 million or 2.0%).
Partially offset by:
- News Media segment (down $151.9 million or -12.9%) as a result of lower
advertising revenues
- Quebecor's operating income from continuing operations grew $155.6
million (13.9%) to $1.28 billion, mainly because of:
- $175.0 million (21.9%) increase in operating income in
Telecommunications segment;
- $14.0 million (21.2%) increase in operating income in Broadcasting
segment.
Partially offset by:
- $27.6 million (-12.2%) decrease in operating income in News Media
segment.
- Quebecor's net income was $277.7 million ($4.32 per basic share) in
2009, compared with $188.0 million ($2.92 per basic share) in 2008. The
increase of $89.7 million (47.7% or $1.40 per basic share) was mainly
due to:
- $155.6 million increase in operating income;
- $41.9 million favourable variance in gain on valuation and translation
of financial instruments;
- $40.1 million decrease in financial expenses;
- $25.0 million decrease in charge for restructuring of operations,
impairment of assets and other special items.
Partially offset by:
- $26.5 million increase in amortization charge.
The 2008 results also reflect recognition of income from discontinued
operations in the amount of $383.3 million and a $361.1 million non-cash
charge for impairment of goodwill and intangible assets, net of income
tax and non-controlling interest.
- Adjusted income from continuing operating activities: $236.3 million
in 2009 ($3.68 per basic share), compared with $179.4 million ($2.79
per basic share) in 2008, an increase of $56.9 million ($0.89 per
basic share) or 31.7%.
Analysis of fourth quarter 2009 results
- Quebecor's consolidated revenues from continuing operations were $1.03
billion, an increase of $24.4 million (2.4%). Revenue growth was
strongest in Telecommunications (up $59.4 million or 12.5% of segment
revenues) mainly because of sustained customer growth for all services.
The News Media segment's revenues decreased by $28.2 million (-9.3%).
- Quebecor's operating income from continuing operations grew $77.5
million (25.0%) to $387.6 million due to an increase in the
Telecommunications segment ($62.8 million or 28.8% of segment operating
income) resulting primarily from customer growth, and an increase in the
News Media segment ($14.5 million or 26.5%) caused essentially by a
decrease in operating costs due to, among other things, sustained
productivity improvement efforts.
The increase in operating income includes a $43.8 million favourable
variance ($34.5 million in the Telecommunications segment and $9.3
million in the Broadcasting segment) due to reversal of the provisions
for Canadian Radio-television and Telecommunications Commission ("CRTC")
Part II licence fees.
- Net income: $73.8 million ($1.15 per basic share) in the fourth quarter
of 2009, compared with a net loss of $343.6 million ($5.34 per basic
share) in the same quarter of 2008. The $417.4 million ($6.49 per basic
share) increase was mainly due to:
- recognition in the fourth quarter of 2008 of a non-cash charge
totalling $671.2 million, including $631.0 million without any tax
consequences, for impairment of goodwill and intangible assets ($361.1
million net of income tax and non-controlling interest);
- $77.5 million increase in operating income;
- $28.8 million favourable variance in provision for restructuring of
operations and other items;
- $28.2 million favourable variance in gains on valuation and
translation of financial instruments;
Partially offset by:
- $3.7 million increase in amortization charge.
- Adjusted income from continuing operating activities: $84.0 million in
the fourth quarter of 2009 ($1.31 per basic share), compared with $60.8
million ($0.95 per basic share) in the same period of 2008, an increase
of $23.2 million ($0.36 per basic share) or 38.2%.
Dividends
On March 9, 2010, the Board of Directors of Quebecor declared a
quarterly dividend of $0.05 per share on Class A Multiple Voting
Shares and Class B Subordinate Voting Shares, payable on April 20,
2010 to shareholders of record at the close of business on March
26, 2010. This dividend is designated to be an eligible dividend,
as provided under subsection 89(14) of the Canadian Income Tax Act
and its provincial counterpart.
Discontinued operations
On January 21, 2008, World Color Press, Inc. ("WCP," formerly
Quebecor World Inc.) and its U.S. subsidiaries placed themselves
under the protection of the Companies' Creditors Arrangement Act in
Canada. On the same date, WCP's U.S. subsidiaries placed themselves
under the protection of Chapter 11 of the United States Bankruptcy
Code. Since that date, in accordance with generally accepted
accounting principles, Quebecor's investment in WCP has no longer
been consolidated, the book value of Quebecor's investment in WCP
has been marked to zero, and WCP's activities are considered
discontinued operations for the purposes of Quebecor's consolidated
financial statements.
Detailed financial information
For a detailed analysis of Quebecor's results for the 2009
financial year and the fourth quarter of 2009, please refer to the
Management Discussion and Analysis and consolidated financial
statements of Quebecor, available on the Company's website at:
www.quebecor.com/InvestorCenter/QIQuarterlyReports.aspx
or from the SEDAR filing service at www.sedar.com.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss the 2009 fourth
quarter and financial year results of Quebecor and Quebecor Media
on March 10, 2010, at 11:00 a.m. ET. There will be a question
period reserved for financial analysts. To access the conference
call, please dial 1 877 293-8052, access code 47448#. A tape
recording of the call will be available from March 10 to April 11,
2010 by dialling 1 877 293-8133, access code 272223#. The
conference call will also be broadcast live on Quebecor's website
at www.quebecor.com/InvestorCenter/QIConferenceCall.aspx. It is
advisable to ensure the appropriate software is installed before
accessing the call. Instructions and links to free player downloads
are available at the Internet address shown above.
Forward-looking statements
The statements in this press release that are not historical
facts are forward-looking statements and are subject to significant
known and unknown risks, uncertainties and assumptions which could
cause the Company's actual results for future periods to differ
materially from those set forth in the forward-looking statements.
Forward looking statements may be identified by the use of the
conditional or by forward-looking terminology such as the terms
"plans," "expects," "may," "anticipates," "intends," "estimates,"
"projects," "seeks," "believes" or similar terms, variations of
such terms or the negative of such terms. Certain factors that may
cause actual results to differ from current expectations include
seasonality (including seasonal fluctuations in customer orders),
operating risk (including fluctuations in demand for Quebecor's
products and pricing actions by competitors), insurance risk, risks
associated with capital investment (including risks related to
technological development and equipment availability and
breakdown), environmental risks, risks associated with labour
agreements, risks associated with commodities and energy prices
(including fluctuations in the cost and availability of raw
materials), credit risk, financial risks, debt risks, risks related
to interest rate fluctuations, foreign exchange risks, risks
associated with government acts and regulations, risks related to
changes in tax legislation, and changes in the general political
and economic environment. Investors and others are cautioned that
the foregoing list of factors that may affect future results is not
exhaustive and that undue reliance should not be placed on any
forward-looking statements. For more information on the risks,
uncertainties and assumptions that could cause Quebecor's actual
results to differ from current expectations, please refer to
Quebecor's public filings available at www.sedar.com and
www.quebecor.com including, in particular, the "Risks and
Uncertainties" section in Quebecor's Management Discussion and
Analysis for the year ended December 31, 2009.
The forward-looking statements in this press release reflect
Quebecor's expectations as of March 10, 2010, and are subject to
change after that date. Quebecor expressly disclaims any obligation
or intention to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws.
The Company
Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) is a holding company with
a 54.7% interest in Quebecor Media Inc., one of Canada's largest
media groups. Quebecor Media owns operating companies in numerous
media related businesses: Videotron Ltd., an integrated
communications company engaged in cable television, interactive
multimedia development, Internet access services, cable telephony
and wireless telephone service; Sun Media Corporation, the largest
publisher of newspapers in Canada; Canoe Inc., operator of a
network of English- and French-language Internet properties in
Canada; TVA Group Inc., operator of the largest French-language
over-the-air television network in Quebec, a number of specialty
channels, and the English-language over-the-air station Sun TV;
Nurun Inc., a major interactive technologies and communications
agency with offices in Canada, the United States, Europe and Asia;
magazine publisher TVA Publishing Inc.; book publishers and
distributors Sogides Group Inc. and CEC Publishing Inc.;
Archambault Group Inc. and TVA Films, companies engaged in the
production, distribution and retailing of cultural products; Le
SuperClub Videotron ltee, a DVD and console game rental and retail
chain; and Quebecor MediaPages, publisher of print and online
directories.
FINANCING ACTIVITIES
In 2009 and the beginning of 2010, Quebecor Media strengthened
its financial position, optimized its liquidity position and
extended the average maturity of its debt. The following financing
activities were carried out:
- On March 5, 2009, Videotron Ltd. ("Videotron") issued US$260.0
million aggregate principal amount of Senior Notes for net proceeds
of $332.4 million (including accrued interest and net of financing
fees). The Notes bear 9 1/8% interest (effective rate of 9.35%) and
mature on April 15, 2018. Videotron used the proceeds to repay all
drawings under its revolving credit facility and the remainder for
general purposes.
- On November 13, 2009, Videotron closed a term export credit
agreement for a total of US$100.0 million, including $75.0 million
maturing in 2018 and another credit agreement maturing in 2016 for
US$100 million less the drawings, in U.S. dollars, on the $75.0
million credit facility. The credit facilities may be used to pay
or reimburse foreign purchases of equipment and services.
- On November 20, 2009, Quebecor amended its annual revolving
short-term credit facility. Commitments under the facility were
reduced from $191.3 million to $150.0 million and the maturity date
was extended to November 2010. If the facility is not renewed in
2010, the drawings will be converted to one-year term credit.
- On January 13, 2010, Videotron completed a placement of $300
million aggregate principal amount of its 7 1/8% Senior Notes
maturing in 2020, for net proceeds of $293.9 million (net of
financing fees). This transaction marks Videotron's inaugural
offering on the Canadian high yield market, adding to its
established presence in the US high yield market.
- On January 14, 2010, Quebecor Media made a US$170.0 million
early payment on drawings on its term loan "B" maturing in 2013 and
settled a corresponding portion of its hedge agreements for $30.9
million, for a total cash disbursement of $206.7 million. On
January 14, 2010, Quebecor Media also extended the maturity date of
its $100 million revolving credit facility from January 2011 to
January 2013 and obtained certain other advantageous amendments to
the covenants attached to its credit facilities.
DEFINITIONS
Operating income
In its analysis of operating results, the Company defines
operating income, as reconciled to net income (loss) under Canadian
generally accepted accounting principles ("Canadian GAAP"), as net
income (loss) before amortization, financial expenses, gain on
valuation and translation of financial instruments, charge for
restructuring of operations, impairment of assets and other special
items, loss on debt refinancing, impairment of goodwill and
intangible assets, income tax, non-controlling interest and the
results of discontinued operations. Operating income as defined
above is not a measure of results that is consistent with Canadian
GAAP. It is not intended to be regarded as an alternative to other
financial operating performance measures or to the statement of
cash flows as a measure of liquidity. It should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with Canadian GAAP. Management believes that
operating income is a meaningful measure of performance. The
Company uses operating income in order to assess the performance of
its investment in Quebecor Media. The Company's management and
Board of Directors use this measure in evaluating its consolidated
results as well as the results of the Company's operating segments.
This measure eliminates the significant level of depreciation and
amortization of tangible and intangible assets and is unaffected by
the capital structure or investment activities of the Company and
its segments. Operating income is also relevant because it is a
significant component of the Company's annual incentive
compensation programs. A limitation of this measure, however, is
that it does not reflect the periodic costs of tangible and
intangible assets used in generating revenues in the Company's
segments. The Company also uses other measures that do reflect such
costs, such as cash flows from segment operations and free cash
flows from operations. In addition, measures like operating income
are commonly used by the investment community to analyze and
compare the performance of companies in the industries in which the
Company is engaged. The Company's definition of operating income
may not be the same as similarly titled measures reported by other
companies. Table 2 below reconciles Quebecor's operating income
with the closest Canadian GAAP measure.
Table 2
Reconciliation of the operating income measure used in this press release
to the net income (loss) measure used in the consolidated financial
statements
(in millions of Canadian dollars)
Years Three months
ended ended
December 31 December 31
2009 2008 2007 2009 2008
-------------------------------------------------------------------------
Operating income:
Telecommunications $972.9 $797.9 $642.3 $280.9 $218.1
News Media 199.5 227.1 232.8 69.3 54.8
Broadcasting 80.0 66.0 59.4 32.2 22.5
Leisure and Entertainment 25.9 20.2 26.9 8.4 11.0
Interactive Technologies and
Communications 4.1 5.1 2.8 1.4 3.0
Head Office (5.7) 4.8 (15.4) (4.6) 0.7
-------------------------------------------------------------------------
1,276.7 1,121.1 948.8 387.6 310.1
Amortization (344.7) (318.2) (288.3) (87.5) (83.8)
Financial expenses (259.0) (299.1) (253.3) (70.2) (72.1)
Gain (loss) on valuation
and translation of
financial instruments 59.7 17.8 137.0 2.4 (25.8)
Restructuring of
operations, impairment
of assets and other
special items (29.6) (54.6) (12.2) (21.5) (50.3)
Impairment of goodwill
and intangible assets (13.6) (671.2) (5.4) - (671.2)
Income tax (153.2) (140.4) (92.4) (59.1) (30.9)
Non-controlling interest (260.2) 149.3 (160.9) (77.9) 280.4
Income (loss) from
discontinued operations 1.6 383.3 (1,241.8) - -
-------------------------------------------------------------------------
Net income (loss) $277.7 $188.0 $(968.5) $73.8 $(343.6)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Adjusted income from continuing operating activities
Quebecor defines adjusted income from continuing operating
activities, as reconciled to net income under Canadian GAAP, as net
income before gain on valuation and translation of financial
instruments, charge for restructuring of operations and other
special items, impairment of goodwill and intangible assets, and
the results of discontinued operations, net of income tax and non
controlling interest. Adjusted income from continuing operating
activities as defined above is not a measure of results that is
consistent with Canadian GAAP. It should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with Canadian GAAP. Management believes that adjusted
income from continuing operating activities is a meaningful measure
that provides an indication of the long term profitability of
Quebecor's operating activities by eliminating the impact of
unusual or one time items. Quebecor's definition of adjusted income
from continuing operating activities may not be identical to
similarly titled measures reported by other companies.
Table 3 provides a reconciliation of adjusted income from
continuing operating activities to the net income (loss) measure
used in Quebecor's consolidated financial statements.
Table 3
Reconciliation of the adjusted income from continuing operating activities
measure used in this press release with the net income (loss) measure
reported in the consolidated financial statements
(in millions of Canadian dollars)
Years Three months
ended ended
December 31 December 31
2009 2008 2007 2009 2008
-------------------------------------------------------------------------
Adjusted income from
continuing operating
activities $236.3 $179.4 $134.4 $84.0 $60.8
Gain (loss) on valuation
and translation of
financial instruments 59.7 17.8 137.0 2.5 (25.8)
Charge for restructuring of
operations, impairment of
assets and other special
items (29.6) (54.6) (12.2) (21.5) (50.3)
Impairment of goodwill and
intangible assets (13.6) (671.2) (5.4) - (671.2)
Income tax related to
adjustments1 38.9 3.8 14.2 3.6 7.3
Non-controlling interest
related to adjustments (15.6) 329.5 5.3 5.2 335.6
Income (loss) from
discontinued operations 1.6 383.3 (1,241.8) - -
-------------------------------------------------------------------------
Net income (loss) $277.7 $188.0 $(968.5) $73.8 $(343.6)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Includes the impact of fluctuations in tax rates applicable to
adjusted items, either for statutory reasons or in connection with tax
planning arrangements.
Average monthly revenue per user
ARPU is an industry metric that the Company uses to measure its
average cable, Internet, cable telephone and wireless telephone
revenues per month per customer. ARPU is not a measurement that is
consistent with Canadian GAAP and the Company's definition and
calculation of ARPU may not be the same as identically titled
measurements reported by other companies. The Company calculates
ARPU by dividing its combined cable television, Internet access,
cable telephone and wireless telephone revenues by the average
number of customers during the applicable period, and then dividing
the resulting amount by the number of months in the applicable
period.
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars,
except for earnings per share Years
data) Three months ended ended
(unaudited) December 31 December 31
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2009 2008 2009 2008
--------------------------------------------------------------------------
(restated) (restated)
Revenues
Telecommunications $532.9 $473.5 $2,001.2 $1,804.2
News Media 273.8 302.0 1,029.5 1,181.4
Broadcasting 128.5 126.9 439.0 436.7
Leisure and Entertainment 95.5 100.4 307.8 301.9
Interactive Technologies and
Communications 23.5 24.0 91.0 89.6
Inter-segment (27.2) (24.2) (87.5) (83.7)
--------------------------------------------------------------------------
1,027.0 1,002.6 3,781.0 3,730.1
Operating expenses 639.4 692.5 2,504.3 2,609.0
Amortization 87.5 83.8 344.7 318.2
Financial expenses 70.2 72.1 259.0 299.1
(Gain) loss on valuation and
translation of financial (2.4) 25.8 (59.7) (17.8)
instruments
Restructuring of operations,
impairment of assets and other 21.5 50.3 29.6 54.6
special items
Impairment of goodwill and
intangible assets - 671.2 13.6 671.2
--------------------------------------------------------------------------
Income (loss) before income taxes
and non-controlling interest 210.8 (593.1) 689.5 (204.2)
Income taxes:
Current 15.5 11.5 29.7 12.7
Future 43.6 19.4 123.5 127.7
--------------------------------------------------------------------------
59.1 30.9 153.2 140.4
--------------------------------------------------------------------------
151.7 (624.0) 536.3 (344.6)
Non-controlling interest (77.9) 280.4 (260.2) 149.3
--------------------------------------------------------------------------
Income (loss) from continuing
operations 73.8 (343.6) 276.1 (195.3)
Income from discontinued
operations - - 1.6 383.3
--------------------------------------------------------------------------
Net income (loss) $73.8 $(343.6) $277.7 $188.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earnings per share
Basic
From continuing operations $1.15 $(5.34) $4.30 $(3.04)
From discontinued operations - - 0.02 5.96
Net income (loss) 1.15 (5.34) 4.32 2.92
Diluted
From continuing operations $1.12 $(5.34) $4.26 $(3.04)
From discontinued operations - - 0.02 5.96
Net income (loss) 1.12 (5.34) 4.28 2.92
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Weighted average number of shares
outstanding (in millions) 64.3 64.3 64.3 64.3
Weighted average number of diluted
shares (in millions) 64.7 64.4 64.7 64.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
Three months
(in millions of Canadian dollars) ended Years ended
(unaudited) December 31 December 31
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2009 2008 2009 2008
-------------------------------------------------------------------------
(restated) (restated)
Income from continuing operations
before amortization, financial
expenses, (gain) loss on
valuation and translation of
financial instruments,
restructuring of operations and
other special items, impairment
of goodwill and intangible
assets, income taxes and
non-controlling interest
Telecommunications $280.9 $218.1 $972.9 $797.9
News Media 69.3 54.8 199.5 227.1
Broadcasting 32.2 22.5 80.0 66.0
Leisure and Entertainment 8.4 11.0 25.9 20.2
Interactive Technologies and
Communications 1.4 3.0 4.1 5.1
Head Office (4.6) 0.7 (5.7) 4.8
-------------------------------------------------------------------------
$387.6 $310.1 $1,276.7 $1,121.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Amortization
Telecommunications $67.2 $56.9 $254.4 $226.4
News Media 11.6 16.9 57.3 62.1
Broadcasting 4.1 3.7 14.8 13.9
Leisure and Entertainment 2.9 3.7 9.9 9.5
Interactive Technologies and
Communications 0.9 1.4 4.0 4.3
Head Office 0.8 1.2 4.3 2.0
-------------------------------------------------------------------------
$87.5 $83.8 $344.7 $318.2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Additions to property, plant and
equipment
Telecommunications $116.1 $91.4 $434.1 $356.7
News Media 13.2 13.3 33.4 77.1
Broadcasting 3.7 4.9 16.5 17.8
Leisure and Entertainment 2.1 3.3 3.6 8.9
Interactive Technologies and
Communications 0.5 1.0 3.1 3.6
Head Office 1.4 5.4 4.0 15.5
-------------------------------------------------------------------------
$137.0 $119.3 $494.7 $479.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Additions to intangible assets
Telecommunications $21.1 $27.6 $89.9 $614.7
News Media 0.8 2.2 10.3 11.4
Broadcasting 2.9 1.6 7.0 4.1
Leisure and Entertainment 0.6 2.1 4.0 7.4
Interactive Technologies and
Communications 0.1 - 0.3 -
-------------------------------------------------------------------------
$25.5 $33.5 $111.5 $637.6
-------------------------------------------------------------------------
Externally acquired intangible
assets $17.3 $21.9 $69.5 $593.8
Internally generated
intangible assets 8.2 11.6 42.0 43.8
-------------------------------------------------------------------------
$25.5 $33.5 $111.5 $637.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars) Three months ended Years ended
(unaudited) December 31 December 31
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2009 2008 2009 2008
--------------------------------------------------------------------------
(restated) (restated)
Net income (loss) $73.8 $(343.6) $277.7 $188.0
Other comprehensive (loss)
income:
Unrealized (loss) gain on
translation of net
investments in foreign (1.3) 4.3 (3.3) 5.0
operations
Loss on valuation of
derivative financial (35.6) (15.5) (8.2) (16.7)
instruments
Income taxes related to
derivative financial
instruments 18.9 (36.7) 41.6 (47.9)
Non-controlling interest 8.2 21.9 (13.6) 27.4
Reclassification to income
of other comprehensive loss
related to discontinued
operations, net of income
taxes of $14.8 million - - - 326.5
--------------------------------------------------------------------------
(9.8) (26.3) 16.5 294.3
--------------------------------------------------------------------------
Comprehensive income (loss) $64.0 $(369.9) $294.2 $482.3
--------------------------------------------------------------------------
--------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(in millions of Canadian dollars)
(unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Accumulated
other Total
Capital Contributed Retained comprehensive shareholders'
stock surplus earnings (loss) income equity
--------------------------------------------------------------------------
Balance as of
December 31,
2007, as
previously
reported $346.6 $- $391.5 $(321.8) $416.3
Cumulative
effect of
changes in
accounting
policies - - (1.3) - (1.3)
--------------------------------------------------------------------------
Balance as of
December 31,
2007, as 346.6 - 390.2 (321.8) 415.0
restated
Net income - - 188.0 - 188.0
Dividends - - (12.9) - (12.9)
Other
comprehensive
income - - - 294.3 294.3
--------------------------------------------------------------------------
Balance as of
December 31,
2008, as
restated 346.6 - 565.3 (27.5) 884.4
Net income - - 277.7 - 277.7
Dividends - - (12.9) - (12.9)
Related party
transactions - 4.7 - - 4.7
Other
comprehensive
income - - - 16.5 16.5
--------------------------------------------------------------------------
Balance as of
December 31,
2009 $346.6 $4.7 $830.1 $(11.0) $1,170.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of
Canadian dollars) Three months ended Years ended
(unaudited) December 31 December 31
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2009 2008 2009 2008
--------------------------------------------------------------------------
(restated) (restated)
Cash flows related to operating
activities
Income (loss) from continuing
operations $73.8 $(343.6) $276.1 $(195.3)
Adjustments for:
Amortization of property, plant
and equipment 75.5 73.4 295.8 278.7
Amortization of intangible
assets and other assets 12.0 10.4 48.9 39.5
Impairment of goodwill and
intangible assets - 671.2 13.6 671.2
Impairment of property, plant
and equipment - 19.1 0.4 19.1
(Gain) loss on valuation and
translation of financial
instruments (2.4) 25.8 (59.7) (17.8)
Amortization of financing costs
and long-term debt discount 2.7 2.6 10.2 9.3
Future income taxes 43.6 19.4 123.5 127.7
Non-controlling interest 77.9 (280.4) 260.2 (149.3)
Other 4.2 (0.2) 4.6 (0.3)
--------------------------------------------------------------------------
287.3 197.7 973.6 782.8
Net change in non-cash
balances related to
operating activities 25.8 91.3 (48.3) (27.5)
--------------------------------------------------------------------------
Cash flows provided by
continuing operating
activities 313.1 289.0 925.3 755.3
Cash flows provided by
discontinued operating
activities - - - 20.5
--------------------------------------------------------------------------
Cash flows provided by
operating activities 313.1 289.0 925.3 775.8
--------------------------------------------------------------------------
Cash flows related to investing
activities
Business acquisitions, net
of cash and cash
equivalents - - (4.6) (146.7)
Business disposals, net of
cash and cash equivalents 1.9 4.8 14.6 6.4
Additions to property,
plant and equipment (137.0) (119.3) (494.7) (479.6)
Additions to intangible
assets (25.5) (33.5) (111.5) (637.6)
Net change in temporary
investments (29.8) - (29.8) -
Other 1.9 3.5 3.8 4.3
--------------------------------------------------------------------------
Cash flows used in
continuing investing
activities (188.5) (144.5) (622.2) (1,253.2)
Cash flows used in
discontinued investing
activities and cash and
cash equivalents of WCP
at the date of
deconsolidation - - - (117.7)
--------------------------------------------------------------------------
Cash flows used in investing
activities (188.5) (144.5) (622.2) (1,370.9)
--------------------------------------------------------------------------
Cash flows related to financing
activities
Net change in bank
indebtedness (25.1) (28.4) (10.5) (4.6)
Issuance of long-term debt,
net of financing fees 73.6 3.1 399.1 466.7
Net change under revolving
and bridge bank facilities (80.1) (84.7) (294.1) 106.2
Repayments of long-term
debt (18.0) (4.4) (54.9) (25.7)
Dividends (3.3) (3.3) (12.9) (12.9)
Dividends paid to non-
controlling shareholders (9.1) (18.7) (36.5) (32.4)
Other (2.8) (0.1) (2.7) 2.6
--------------------------------------------------------------------------
Cash flows (used in)
provided by continuing
financing activities (64.8) (136.5) (12.5) 499.9
Cash flows provided by
discontinued financing
activities - - - 37.3
--------------------------------------------------------------------------
Cash flows (used in) provided
by financing activities (64.8) (136.5) (12.5) 537.2
--------------------------------------------------------------------------
Net change in cash and cash
equivalents 59.8 8.0 290.6 (57.9)
Effect of exchange rate changes
on cash and cash equivalents
denominated in foreign
currencies - (0.1) (0.6) 1.4
Cash and cash equivalents at
beginning of period 240.2 2.1 10.0 66.5
--------------------------------------------------------------------------
Cash and cash equivalents at
end of period $300.0 $10.0 $300.0 $10.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash and cash equivalents
consist of
Cash $26.0 $10.0 $26.0 $10.0
Cash equivalents 274.0 - 274.0 -
--------------------------------------------------------------------------
$300.0 $10.0 $300.0 $10.0
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Continuing operations
Cash interest payments $103.9 $99.0 $293.8 $299.1
Cash income tax payments
(net of refunds) 3.9 4.5 17.0 24.4
--------------------------------------------------------------------------
--------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
December 31 December 31
2009 2008
------------------------------------------------------------------------
(restated)
Assets
Current assets
Cash and cash equivalents $300.0 $10.0
Cash and cash equivalents in trust 5.3 5.3
Temporary investments 30.0 0.2
Accounts receivable 519.8 484.4
Income taxes 1.3 9.4
Inventories 176.1 193.5
Prepaid expenses 29.1 31.5
Future income taxes 49.8 115.2
------------------------------------------------------------------------
1,111.4 849.5
Property, plant and equipment 2,498.6 2,272.9
Intangible assets 1,052.7 985.9
Derivative financial instruments 49.0 317.9
Other assets 122.5 101.7
Future income taxes 12.5 12.3
Goodwill 3,506.1 3,516.7
------------------------------------------------------------------------
$8,352.8 $8,056.9
------------------------------------------------------------------------
------------------------------------------------------------------------
Liabilities and shareholders' equity
Current liabilities
Bank indebtedness $1.8 $12.3
Accounts payable and accrued charges 794.6 788.6
Deferred revenue 234.7 224.0
Income taxes 16.3 9.8
Current portion of long-term debt 68.6 42.3
------------------------------------------------------------------------
1,116.0 1,077.0
Long-term debt 3,811.9 4,407.1
Derivative financial instruments 422.4 117.3
Other liabilities 129.4 117.0
Future income taxes 485.9 469.1
Non-controlling interest 1,216.8 985.0
Shareholders' equity
Capital stock 346.6 346.6
Contributed surplus 4.7 -
Retained earnings 830.1 565.3
Accumulated other comprehensive loss (11.0) (27.5)
------------------------------------------------------------------------
1,170.4 884.4
Subsequent event
------------------------------------------------------------------------
$8,352.8 $8,056.9
------------------------------------------------------------------------
------------------------------------------------------------------------
Contacts: Quebecor Inc. Jean-Francois Pruneau Vice President,
Finance 514-380-4144 Quebecor Inc. Isabelle Dessureault Vice
President, Public Affairs 514-380-7501
Quebecor (TSX:QBR.A)
Historical Stock Chart
From Jun 2024 to Jul 2024
Quebecor (TSX:QBR.A)
Historical Stock Chart
From Jul 2023 to Jul 2024