Quebecor Inc. ("Quebecor" or the "Company")(TSX: QBR.A)(TSX: QBR.B)
today reported its consolidated financial results for the third
quarter of 2010. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary, in which it
holds a 54.7% interest.
Third quarter 2010 highlights
-- Quebecor third quarter revenues: $969.9 million in 2010, up $45.4
million (4.9%) from the third quarter of 2009.
-- Operating income(1): $329.9 million, up $28.9 million (9.6%) from the
third quarter of 2009.
-- Net income: $82.8 million ($1.28 per basic share) compared with $69.4
million ($1.08 per basic share) in the same period of 2009, an increase
of $13.4 million ($0.20 per basic share) or 19.3%.
-- Adjusted income from continuing operations(2): $59.7 million ($0.93 per
basic share), compared with $52.9 million ($0.82 per basic share) in the
same period of 2009, an increase of $6.8 million ($0.11 per basic share)
or 12.9%.
-- Telecommunications segment: operating income up $24.9 million (10.6%).
Net customer base change in quarter ended September 30, 2010: +32,800
for cable telephone service, +32,100 for cable Internet access, +20,500
for cable television (counting 40,300-customer increase for Digital TV),
+8,400 subscriber connections on mobile telephone service.
-- Videotron Ltd. ("Videotron") successfully launches advanced mobile
services network ("3G+ network") on September 9, 2010. As of September
30, 2010, three weeks after the launch, there are 21,900 subscriber
connections on the new network, including 11,000 migrations from the
mobile virtual network operator ("MVNO") service.
-- Restructuring measures in the News Media segment generate additional
savings estimated at $29.0 million during the first nine months of 2010
compared with the same period of the previous year, for total annualized
savings of $95.0 million since the program began.
(1) See "Operating income" under "Definitions."
(2) See "Adjusted income from continuing operations" under "Definitions."
"Despite costs incurred in the third quarter of 2010 to launch
new products and new initiatives, Quebecor logged an excellent
performance and posted increases in revenues, operating income and
net income," said Pierre Karl Peladeau, President and Chief
Executive Officer of Quebecor. "In the Telecommunications segment,
revenues and operating income were both up significantly. Videotron
recorded considerable customer additions for all its services,
despite aggressive competition in the marketplace.
"A landmark event in the history of Quebecor Media occurred
during the third quarter: on September 9, 2010, Videotron launched
its new 3G+ network, a major development that will shape the future
of the Company and its subsidiaries. Four years after our first
notice of intent, and after spending more than $1.0 billion and
creating nearly 1,000 jobs, Quebecor Media has kept its promise and
built a reliable, effective 3G+ network. This network will provide
consumers and businesses with solutions to their telecom needs
under one roof. After only three weeks, we had 21,900 subscriber
activations on the network, an indication of consumer receptiveness
to our offering and of the demand for more competition in the
mobile market.
"In conjunction with the 3G+ network launch, Videotron also
introduced illico mobile, a service that lets customers use their
mobile telephones to access television programs and series from 28
channels, music from 45 Galaxie channels, and the illico mobile
store, which carries a varied catalogue of nearly 30,000 digital
titles. Quebecor Media intends to use its 3G+ network as the
cornerstone of a corporate business strategy geared toward
harnessing all of the Company's creative resources and providing
consumers with access to the technology, services and information
they want, anytime, anywhere.
"In the News Media segment, the urban dailies increased their
advertising revenues by 2.4% to post advertising growth for the
second straight quarter. The Company pushed ahead with its capital
expenditures plan in the News Media segment in order to increase
its revenue streams. Among other things, the QMI Agency continued
its development by setting up two newsrooms in Montreal and
Toronto, creating multiplatform teams for event coverage, and
centralizing photo coverage across Canada. Since July 1, 2010, the
QMI Agency has been the only supplier of general Canadian news
content to our media properties, following the termination of
Quebecor Media's relationship with The Canadian Press. Meanwhile,
two new community newspapers were launched during the third
quarter, L'Echo de Saint-Eustache and Le Point du Lac-Saint-Jean.
The QMI National Sales Office also reached national multiplatform
advertising agreements with new clients and the Quebecor Media
Network continued development of its own distribution network,
expanding its territory to four new regions of Quebec.
"In short, Quebecor continued developing growth niches in all
its lines of business during the third quarter and will continue
doing so in the future in order to set itself apart from the
competition and increase the Company's value."
Table 1
Quebecor third quarter financial highlights, 2006-2010
(in millions of Canadian dollars, except per share data)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
2010 2009 2008 2007 2006
---------------------------------------------------------------------------
Revenues $ 969.9 $ 924.5 $ 915.0 $ 840.4 $ 722.6
Operating income(1) 329.9 301.0 277.4 256.9 191.9
Income from continuing
operations 82.8 67.8 45.7 80.5 27.2
Net income 82.8 69.4 45.7 (35.0) 33.6
Adjusted income from
continuing operations(2) 59.7 52.9 42.5 42.3 25.4
Per basic share:
Income from continuing
operations 1.28 1.06 0.71 1.25 0.42
Net income 1.28 1.08 0.71 (0.54) 0.52
Adjusted income from
continuing operations(2) 0.93 0.82 0.66 0.66 0.40
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) See "Operating income" under "Definitions."
(2) See "Adjusted income from continuing operations" under "Definitions."
Analysis of third quarter 2010 results
-- Revenues: $969.9 million, an increase of $45.4 million (4.9%).
-- Revenues increased in Telecommunications (by $48.3 million or 9.6%
of segment revenues) mainly because of customer growth for all
services, in Broadcasting ($5.1 million or 5.7%), and in Interactive
Technologies and Communications ($1.2 million or 5.7%).
-- Revenues decreased in News Media (by $4.5 million or -1.8%) mainly
because of lower circulation revenues, and in Leisure and
Entertainment ($2.4 million or -3.0%).
-- Operating income: $329.9 million, an increase of $28.9 million (9.6%).
-- Operating income increased in Telecommunications (by $24.9 million
or 10.6% of segment operating income), Broadcasting ($3.0 million or
29.1%), Leisure and Entertainment ($0.3 million or 2.5%), and in
Interactive Technologies and Communications ($0.2 million or 20.0%).
-- Operating income decreased in News Media (by $4.3 million or -9.6%).
-- Net income: $82.8 million ($1.28 per basic share) in the third quarter
of 2010, compared with $69.4 million ($1.08 per basic share) in the same
period of 2009, an increase of $13.4 million ($0.20 per basic share) or
19.3%.
-- The increase was mainly due to:
-- $47.9 million favourable variance in gain on valuation and
translation of financial instruments;
-- $28.9 million increase in operating income.
-- Partially offset by:
-- $20.7 million increase in income tax expense;
-- $18.7 million increase in charge for restructuring of
operations, impairment of assets and other special items;
-- $11.7 million increase in amortization charge.
-- Adjusted income from continuing operations: $59.7 million in the third
quarter of 2010 ($0.93 per basic share), compared with $52.9 million
($0.82 per basic share) in the same period of 2009, an increase of $6.8
million ($0.11 per basic share) or 12.9%.
2010/2009 year-to-date comparison
-- Revenues: $2.91 billion, an increase of $137.8 million (5.0%).
-- Revenues increased in Telecommunications (by $154.8 million or 10.5%
of segment revenues) mainly because of customer growth for all
services, in Broadcasting ($4.3 million or 1.4%), and in Interactive
Technologies and Communications ($2.6 million or 3.9%).
-- Revenues decreased in News Media (by $13.4 million or -1.7%), mainly
because of lower advertising revenues at the community newspapers
and directories, as well as lower circulation revenues, and in
Leisure and Entertainment ($7.4 million or -3.5%).
-- Operating income: $972.6 million, an increase of $83.5 million (9.4%).
-- Operating income increased in Telecommunications (by $84.3 million
or 12.2% of segment operating income), News Media ($10.0 million or
7.7%), and Interactive Technologies and Communications ($0.8 million
or 29.6%).
-- Operating income decreased in Broadcasting (by $1.5 million or
-3.1%) and in Leisure and Entertainment ($1.2 million or -6.9%).
-- The change in the fair value of Quebecor Media and in Quebecor's stock
price resulted in a total $16.4 million ($0.13 per basic share)
unfavourable variance in the stock-based compensation charge in the
first nine months of 2010 compared with the same period of 2009.
-- Net income: $186.6 million ($2.90 per basic share), compared with $203.9
million ($3.17 per basic share) in the first nine months of 2009, a
variance of $17.3 million ($0.27 per basic share) or -8.5%.
-- The decrease was mainly due to:
-- $46.8 million increase in income tax expense;
-- $22.8 million increase in amortization charge;
-- $20.6 million increase in financial expenses;
-- $17.9 million increase in charge for restructuring of
operations, impairment of assets and other special items;
-- recognition in the first nine months of 2010 of losses on debt
refinancing totalling $12.3 million.
-- Partially offset by:
-- $83.5 million increase in operating income;
-- favourable variance related to the recognition in the first nine
months of 2009 of a $13.6 million non-cash charge for impairment
of goodwill and intangible assets;
-- $12.4 million favourable variance in gains on valuation and
translation of financial instruments.
-- Adjusted income from continuing operations: $175.0 million in the first
nine months of 2010 ($2.72 per basic share), compared with $152.3
million ($2.37 per basic share) in the same period of 2009, an increase
of $22.7 million ($0.35 per basic share) or 14.9%.
Dividends
On November 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 December
21, 2010 to shareholders of record at the close of business on
November 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.
Detailed financial information
For a detailed analysis of Quebecor's third quarter 2010
results, 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 third
quarter 2010 results of Quebecor and Quebecor Media on November 9,
2010, at 4:30 p.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 58309#. A tape recording of the call will
be available from November 9 to December 9, 2010 by dialling 1 877
293-8133, access code 389395#. 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 that could
cause Quebecor'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 of 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 November 9, 2010, and are subject to
change after this 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 Inc. 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 telephone
service and mobile 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™, a publisher of print and online
directories.
DEFINITIONS
Operating income
In its analysis of operating results, the Company defines
operating income, as reconciled to net income under Canadian
generally accepted accounting principles ("GAAP"), as net income
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 income from 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 measure used in the consolidated financial statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2010 2009 2010 2009
--------------------------------------------------------------------------
Operating income (loss):
Telecommunications $ 260.6 $ 235.7 $ 776.3 $ 692.0
News Media 40.6 44.9 140.2 130.2
Broadcasting 13.3 10.3 46.3 47.8
Leisure and Entertainment 12.2 11.9 16.3 17.5
Interactive Technologies and
Communications 1.2 1.0 3.5 2.7
Head Office 2.0 (2.8) (10.0) (1.1)
--------------------------------------------------------------------------
329.9 301.0 972.6 889.1
Amortization (98.5) (86.8) (280.0) (257.2)
Financial expenses (67.6) (65.9) (209.4) (188.8)
Gain on valuation and translation of
financial instruments 79.0 31.1 69.7 57.3
Restructuring of operations,
impairment of assets and other
special items (22.6) (3.9) (26.0) (8.1)
Loss on debt refinancing - - (12.3) -
Impairment of goodwill and
intangible assets - - - (13.6)
Income tax (62.5) (41.8) (140.9) (94.1)
Non-controlling interest (74.9) (65.9) (187.1) (182.3)
Income from discontinued operations - 1.6 - 1.6
--------------------------------------------------------------------------
Net income $ 82.8 $ 69.4 $ 186.6 $ 203.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Adjusted income from continuing operations
The Company defines adjusted income from continuing operations,
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, impairment of assets and
other special items, loss on debt refinancing, impairment of
goodwill and of intangible assets, and results of discontinued
operations, net of income tax and non-controlling interest.
Adjusted income from continuing operations 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 operations
is a meaningful measure that provides an indication of the
long-term profitability of the Company's operating activities by
eliminating the impact of unusual or one-time items. The Company's
definition of adjusted income from continuing operations may not be
identical to similarly titled measures reported by other
companies.
Table 3 provides a reconciliation of adjusted income from
continuing operations to the net income measure used in Quebecor's
consolidated financial statements.
Table 3
Reconciliation of the adjusted income from continuing operations measure
used in this press release to the net income measure used in the
consolidated financial statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2010 2009 2010 2009
--------------------------------------------------------------------------
Adjusted income from continuing
operations $ 59.7 $ 52.9 $ 175.0 $ 152.3
Gain on valuation and translation of
financial instruments 79.0 31.1 69.7 57.3
Restructuring of operations,
impairment of assets and other
special items (22.6) (3.9) (26.0) (8.1)
Loss on debt refinancing - - (12.3) -
Impairment of goodwill and
intangible assets - - - (13.6)
Income tax related to adjustments(1) (14.5) (0.1) (7.9) 35.2
Non-controlling interest related to
adjustments (18.8) (12.2) (11.9) (20.8)
Income from discontinued operations - 1.6 - 1.6
--------------------------------------------------------------------------
Net income $ 82.8 $ 69.4 $ 186.6 $ 203.9
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Includes 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
monthly cable television, Internet access, cable telephone and
mobile telephone revenues per average basic cable 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 mobile telephone revenues by
the average number of basic 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 data) Three months ended Nine months ended
(unaudited) September 30 September 30
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2010 2009 2010 2009
--------------------------------------------------------------------------
Revenues
Telecommunications $ 551.7 $ 503.4 $ 1,623.1 $ 1,468.3
News Media 243.1 247.6 762.5 775.9
Broadcasting 94.3 89.2 314.8 310.5
Leisure and Entertainment 77.6 80.0 204.9 212.3
Interactive Technologies and
Communications 22.4 21.2 70.1 67.5
Inter-segment (19.2) (16.9) (63.4) (60.3)
-------------------------------------------
969.9 924.5 2,912.0 2,774.2
Operating expenses 640.0 623.5 1,939.4 1,885.1
Amortization 98.5 86.8 280.0 257.2
Financial expenses 67.6 65.9 209.4 188.8
Gain on valuation and
translation of financial
instruments (79.0) (31.1) (69.7) (57.3)
Restructuring of operations,
impairment of assets and other
special items 22.6 3.9 26.0 8.1
Loss on debt refinancing - - 12.3 -
Impairment of goodwill and
intangible assets - - - 13.6
-------------------------------------------
Income before income taxes and
non-controlling interest 220.2 175.5 514.6 478.7
Income taxes:
Current 5.1 7.6 65.9 14.2
Future 57.4 34.2 75.0 79.9
-------------------------------------------
62.5 41.8 140.9 94.1
-------------------------------------------
157.7 133.7 373.7 384.6
Non-controlling interest (74.9) (65.9) (187.1) (182.3)
-------------------------------------------
Income from continuing
operations 82.8 67.8 186.6 202.3
Income from discontinued
operations - 1.6 - 1.6
-------------------------------------------
Net income $ 82.8 $ 69.4 $ 186.6 $ 203.9
-------------------------------------------
-------------------------------------------
Earnings per share
Basic
From continuing operations $ 1.28 $ 1.06 $ 2.90 $ 3.15
From discontinued
operations - 0.02 - 0.02
Net income 1.28 1.08 2.90 3.17
Diluted
From continuing operations $ 1.27 $ 1.05 $ 2.86 $ 3.14
From discontinued
operations - 0.02 - 0.02
Net income 1.27 1.07 2.86 3.16
-------------------------------------------
-------------------------------------------
Weighted average number of
shares outstanding (in
millions) 64.3 64.3 64.3 64.3
Weighted average number of
diluted shares (in millions) 65.0 64.6 65.0 64.6
-------------------------------------------
-------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars) Three months ended Nine months ended
(unaudited) September 30 September 30
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2010 2009 2010 2009
--------------------------------------------------------------------------
Income from continuing operations
before amortization, financial
expenses, gain on valuation and
translation of financial
instruments, restructuring of
operations, impairment of assets
and other special items, loss on
debt refinancing, impairment of
goodwill and intangible assets,
income taxes and non-controlling
interest
Telecommunications $ 260.6 $ 235.7 $ 776.3 $ 692.0
News Media 40.6 44.9 140.2 130.2
Broadcasting 13.3 10.3 46.3 47.8
Leisure and Entertainment 12.2 11.9 16.3 17.5
Interactive Technologies and
Communications 1.2 1.0 3.5 2.7
Head Office 2.0 (2.8) (10.0) (1.1)
--------------------------------------
$ 329.9 $ 301.0 $ 972.6 $ 889.1
--------------------------------------
--------------------------------------
Amortization
Telecommunications $ 73.7 $ 63.1 $ 209.9 $ 187.2
News Media 16.3 15.8 45.8 45.7
Broadcasting 3.9 3.6 11.3 10.7
Leisure and Entertainment 2.5 2.2 7.3 7.0
Interactive Technologies and
Communications 1.1 0.9 3.0 3.1
Head Office 1.0 1.2 2.7 3.5
--------------------------------------
$ 98.5 $ 86.8 $ 280.0 $ 257.2
--------------------------------------
--------------------------------------
Additions to property, plant and
equipment
Telecommunications $ 186.2 $ 114.1 $ 469.7 $ 318.0
News Media 3.7 3.4 7.0 20.2
Broadcasting 3.3 4.3 11.8 12.8
Leisure and Entertainment 0.8 0.4 3.4 1.5
Interactive Technologies and
Communications 0.4 0.4 2.0 2.6
Head Office 0.6 0.6 1.8 2.6
--------------------------------------
$ 195.0 $ 123.2 $ 495.7 $ 357.7
--------------------------------------
--------------------------------------
Additions to intangible assets
Telecommunications $ 23.5 $ 23.8 $ 72.4 $ 68.8
News Media 1.8 6.7 7.5 9.5
Broadcasting 1.3 1.2 4.1 4.1
Leisure and Entertainment 1.7 1.0 5.8 3.4
Interactive Technologies and
Communications - 0.2 - 0.2
--------------------------------------
$ 28.3 $ 32.9 $ 89.8 $ 86.0
--------------------------------------
--------------------------------------
Externally acquired intangible
assets $ 13.8 $ 22.2 $ 44.6 $ 52.2
Internally generated intangible
assets 14.5 10.7 45.2 33.8
--------------------------------------
$ 28.3 $ 32.9 $ 89.8 $ 86.0
--------------------------------------
--------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars) Three months ended Nine months ended
(unaudited) September 30 September 30
------------------------------------------------------------------------
------------------------------------------------------------------------
2010 2009 2010 2009
------------------------------------------------------------------------
Net income $ 82.8 $ 69.4 $ 186.6 $ 203.9
Other comprehensive (loss)
income:
Unrealized gain (loss) on
translation of net investments
in foreign operations 1.1 (0.7) (1.8) (2.0)
(Loss) gain on valuation of
derivative financial
instruments (7.7) 12.4 95.4 16.2
Income taxes related to
derivative financial
instruments 3.7 17.4 (13.8) 33.9
Non-controlling interest 1.3 (13.1) (36.1) (21.8)
Reclassification to income of
other comprehensive loss
related to derivative
financial instruments, net of
income taxes of $2.5 million
and of non-controlling
interest of $2.7 million, in
the nine-month period ended
September 30, 2010 - - 3.2 -
---------------------------------------
(1.6) 16.0 46.9 26.3
---------------------------------------
Comprehensive income $ 81.2 $ 85.4 $ 233.5 $ 230.2
---------------------------------------
---------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(in millions of Canadian dollars)
(unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Accumu-
lated
other Total
Contri- compre- share-
Capital buted Retained hensive holders'
stock surplus earnings loss equity
--------------------------------------------------------------------------
Balance as of December
31, 2008 $ 346.6 $ - $ 565.3 $ (27.5) $ 884.4
Net income - - 203.9 - 203.9
Dividends - - (9.6) - (9.6)
Related party
transactions - 4.8 - - 4.8
Other comprehensive
income - - - 26.3 26.3
--------------------------------------------------------------------------
Balance as of
September 30, 2009 346.6 4.8 759.6 (1.2) 1,109.8
Net income - - 73.8 - 73.8
Dividends - - (3.3) - (3.3)
Related party
transactions - (0.1) - - (0.1)
Other comprehensive
loss - - - (9.8) (9.8)
--------------------------------------------------------------------------
Balance as of December
31, 2009 346.6 4.7 830.1 (11.0) 1,170.4
Net income - - 186.6 - 186.6
Dividends - - (9.6) - (9.6)
Other comprehensive
income - - - 46.9 46.9
--------------------------------------------------------------------------
Balance as of
September 30, 2010 $ 346.6 $ 4.7 $1,007.1 $ 35.9 $1,394.3
--------------------------------------------------------------------------
--------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian
dollars) Three months ended Nine months ended
(unaudited) September 30 September 30
--------------------------------------------------------------------------
--------------------------------------------------------------------------
2010 2009 2010 2009
--------------------------------------------------------------------------
Cash flows related to operating
activities
Income from continuing
operations $ 82.8 $ 67.8 $ 186.6 $ 202.3
Adjustments for:
Amortization of property,
plant and equipment 78.3 73.8 233.9 220.3
Amortization of intangible
and other assets 20.2 13.0 46.1 36.9
Gain on valuation and
translation of financial
instruments (79.0) (31.1) (69.7) (57.3)
Amortization of financing
costs and long-term debt
discount 3.1 2.7 9.3 7.5
Loss on debt refinancing - - 12.3 -
Impairment of property,
plant and equipment and
other assets 5.4 0.4 11.1 0.4
Impairment of goodwill and
intangible assets - - - 13.6
Future income taxes 57.4 34.2 75.0 79.9
Non-controlling interest 74.9 65.9 187.1 182.3
Other (0.5) 2.5 (4.5) 0.4
-------------------------------------------
242.6 229.2 687.2 686.3
Net change in non-cash
balances related to
operating activities 61.8 50.7 2.1 (74.1)
-------------------------------------------
Cash flows provided by
operating activities 304.4 279.9 689.3 612.2
-------------------------------------------
Cash flows related to investing
activities
Business acquisitions, net of
cash and cash equivalents (2.0) (2.1) (3.1) (4.6)
Business disposals, net of
cash and cash equivalents 0.3 1.3 2.1 12.7
Additions to property, plant
and equipment (195.0) (123.2) (495.7) (357.7)
Additions to intangible
assets (28.3) (32.9) (89.8) (86.0)
Proceeds from disposals of
assets 2.3 0.5 49.6 1.5
Net change in temporary
investments - - 30.0 -
Other 0.3 0.4 0.3 0.4
-------------------------------------------
Cash flows used in investing
activities (222.4) (156.0) (506.6) (433.7)
-------------------------------------------
Cash flows related to financing
activities
Net change in bank
indebtedness (1.0) 2.9 2.0 14.6
Issuance of long-term debt,
net of financing fees - - 292.7 325.5
Net change under revolving
bank facilities (0.1) 7.9 2.5 (214.0)
Repayments of long-term debt (22.3) (13.0) (342.5) (36.9)
Settlement of hedging
contracts - - (32.4) -
Dividends (3.2) (3.2) (9.6) (9.6)
Dividends paid to non-
controlling shareholders (11.9) (9.1) (30.1) (27.4)
Other - 0.1 - 0.1
-------------------------------------------
Cash flows (used in) provided
by financing activities (38.5) (14.4) (117.4) 52.3
-------------------------------------------
Net change in cash and cash
equivalents 43.5 109.5 65.3 230.8
Effect of exchange rate changes
on cash and cash equivalents
denominated in foreign
currencies 0.2 (0.2) (0.8) (0.6)
Cash and cash equivalents at
beginning of period 320.8 130.9 300.0 10.0
-------------------------------------------
Cash and cash equivalents at
end of period $ 364.5 $ 240.2 $ 364.5 $ 240.2
-------------------------------------------
-------------------------------------------
Cash and cash equivalents
consist of
Cash $ 92.5 $ 63.1 $ 92.5 $ 63.1
Cash equivalents 272.0 177.1 272.0 177.1
-------------------------------------------
$ 364.5 $ 240.2 $ 364.5 $ 240.2
-------------------------------------------
-------------------------------------------
Non-cash investing activities
Additions to property, plant
and equipment and intangible
assets financed with
accounts payable $ 17.6 $ (2.8) $ 132.9 $ 50.5
-------------------------------------------
-------------------------------------------
Cash interest payments $ 33.8 $ 38.7 $ 188.7 $ 189.9
Cash income tax payments (net
of refunds) 6.9 4.3 34.1 13.1
-------------------------------------------
-------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
September 30, December 31,
2010 2009
--------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 364.5 $ 300.0
Cash and cash equivalents in trust 5.3 5.3
Temporary investments - 30.0
Accounts receivable 488.7 519.8
Income taxes 9.8 1.3
Inventories 202.6 176.1
Prepaid expenses 43.1 29.1
Future income taxes 48.7 49.8
--------------------------
1,162.7 1,111.4
Property, plant and equipment 2,745.5 2,498.6
Intangible assets 1,087.6 1,052.7
Derivative financial instruments 72.1 49.0
Other assets 140.1 122.5
Future income taxes 8.8 12.5
Goodwill 3,507.5 3,506.1
--------------------------
$ 8,724.3 $ 8,352.8
--------------------------
--------------------------
Liabilities and shareholders' equity
Current liabilities
Bank indebtedness $ 3.8 $ 1.8
Accounts payable and accrued charges 790.9 792.2
Deferred revenues 244.3 234.7
Income taxes 49.1 16.3
Current portion of long-term debt 46.5 68.6
--------------------------
1,134.6 1,113.6
Long-term debt 3,671.4 3,811.9
Derivative financial instruments 375.3 422.4
Other liabilities 162.4 131.8
Future income taxes 573.7 485.9
Non-controlling interest 1,412.6 1,216.8
Shareholders' equity
Capital stock 346.6 346.6
Contributed surplus 4.7 4.7
Retained earnings 1,007.1 830.1
Accumulated other comprehensive income (loss) 35.9 (11.0)
--------------------------
1,394.3 1,170.4
--------------------------
$ 8,724.3 $ 8,352.8
--------------------------
--------------------------
Contacts: Quebecor Inc. Jean-Francois Pruneau Vice President,
Finance 514-380-4144 Quebecor Media Inc. J. Serge Sasseville Vice
President, Corporate and Institutional Affairs 514-380-1864
serge.sasseville@quebecor.com
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
