Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B)("Quebecor" or the
"Corporation") today reported its consolidated financial results
for the third quarter of 2011. Quebecor consolidates the financial
results of its Quebecor Media Inc. ("Quebecor Media") subsidiary,
in which it holds a 54.7% interest.
Quebecor adopted International Financial Reporting Standards
("IFRS") on January 1, 2011. The Corporation's condensed
consolidated financial statements for the three-month and
nine-month periods ended September 30, 2011 have therefore been
prepared in accordance with IFRS and comparative figures for 2010
have been restated.
Third quarter 2011 highlights
-- Revenues: $1.01 billion, up $44.9 million (4.6%) from the third quarter
of 2010.
-- Operating income(1) down $12.3 million (-3.7%) to $319.7 million.
-- Net income attributable to shareholders: $26.1 million ($0.41 per basic
share), down $56.9 million ($0.88 per basic share) from $83.0 million
($1.29 per basic share) in the third quarter of 2010.
-- Adjusted income from continuing operations:(2) $40.0 million in the
third quarter of 2011 ($0.63 per basic share), down $16.1 million ($0.24
per basic share) from $56.1 million ($0.87 per basic share) in the third
quarter of 2010.
-- Videotron Ltd. ("Videotron") has recorded the largest quarterly customer
growth since its acquisition by Quebecor Media in 2000; adding 168,700
revenue-generating units,(3) up 79.9% from the growth recorded in the
same quarter of 2010:
-- net increase of 43,500 cable television customers, including a
77,700-subscriber increase for the digital service, the strongest
quarterly growth for cable television since March 1999 and the
strongest growth for the digital service since its launch, raising
its penetration rate, as a proportion of all cable television
customers, to 73.1%;
-- net increase of 39,900 customers for the cable Internet access
service, the largest increase in the last three years;
-- net increase of 37,800 customers for the cable telephone service,
the largest increase in the last two years;
-- net increase of 47,500 subscriber connections to the mobile
telephone service, the largest quarterly increase since the service
was launched.
"Quebecor grew its revenues in the third quarter of 2011, mainly
on the strength of the excellent performance of its
Telecommunications segment," said Pierre Karl Peladeau, President
and Chief Executive Officer of Quebecor. "Thanks in particular to
effective strategies to market bundled services, including mobile
telephone service, at a time when over-the-air analog television
broadcasting was ending, Videotron posted the strongest quarterly
growth in its total customer base since its acquisition by Quebecor
Media in October 2000. The increase in revenue-generating units was
79.9% greater than the growth recorded in the same period of 2010.
In terms of financial performance, the Telecommunications segment's
operating income increased by $10.9 million (4.1%) in the third
quarter of 2011 despite additional operating costs generated by the
new mobile telephone service. There were a total of 253,900
subscriber connections to Videotron's 4G network as of September
30, 2011, including 181,200 new connections and 72,700 migrations
from the mobile virtual network operator ("MVNO") service. It was
an exceptional quarter for all of our Telecommunications segment's
services from every point of view.
(1) See "Operating income" under "Definitions."
(2) See "Adjusted income from continuing operations" under "Definitions."
(3) Revenue-generating units are the sum of cable television, Internet
access and cable telephone service subscriptions, plus subscriber
connections to the mobile telephone service.
"Despite the adverse economic environment, which hit print media
advertising revenues particularly hard, the Corporation continues
investing in its News Media segment in order to protect and, in the
case of some products, increase its market share. According to the
NADbank 2010/11 survey, Le Journal de Montreal has a weekly
readership of 1,194,400, which is 371,600 more than its closest
competitor. Readership was up 16% in the 18-24 age bracket. The
NADbank 2010/11 survey also found that the free daily 24 heures had
added 45,000 readers, an 8.1% increase from the previous survey. As
well, Quebecor Media Network Inc. ("Quebecor Media Network")
launched Le Sac Plus during the third quarter. In addition to
distributing all of Quebecor Media's community newspapers, the Le
Sac Plus door-knob bag contains advertising materials such as
flyers, leaflets, product samples and other value-added promotions
every week. The Quebecor Media Network has also signed an agreement
with the Jean Coutu Group (PJC) Inc. pharmacy chain to distribute
its flyers in Le Sac Plus. The flyers are already being printed by
Quebecor Media Printing Inc. under a previously announced contract,
illustrating the complementary nature of the News Media segment's
multiproduct offerings.
"As part of its diversification strategy, aimed at reducing the
concentration of its business in a single conventional television
network, TVA Group Inc. ("TVA Group") continued expanding its line
of products with the successful launch of its TVA Sports channel,
which has signed a series of partnerships with major sporting
events in order to deliver rich programming. TVA Group's results
were also affected by launch costs for the new channels and the
adverse impact of the economic environment.
"In the same spirit, Quebecor will implement its business plan
for management of the multipurpose arena, which is to be
operational by September 2015, following the signing of final
agreements with Quebec City in early September, 2011. Quebecor
reiterates its goal of acquiring a National Hockey League franchise
for the facility, as well as presenting major events and shows in
the venue.
"Finally, when it comes to our financial results, it is
important to note that the $56.9 million decrease in net income
attributable to shareholders in the third quarter of 2011 was
caused mainly by remeasurement of financial instruments, which had
an unfavourable non-cash impact in the amount of $48.4 million, net
of taxes and non-controlling interest. The balance of the decrease
was due to operating items, including investments in new products
and services. Higher subscriber acquisition costs for the new 4G
network and an increase in the amortization charge for 4G network
equipment and licences reduced net income by a total of $14.9
million, net of income taxes and non-controlling interest.
"In short, it was an excellent quarter for Quebecor in terms of
customer growth, product development and business opportunities,
strengthening the foundations for the Corporation's future
growth."
Table 1
Quebecor third quarter financial highlights, 2007 to 2011
(in millions of Canadian dollars, except per share data)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2011(1) 2010(1) 2009(2) 2008(2) 2007(2)
-------------------------------------------------------------------------
Revenues $ 1,014.8 $ 969.9 $ 924.5 $ 915.0 $ 840.4
Operating
income(3) 319.7 332.0 301.1 277.4 256.9
Net income from
continuing
operations
attributable to
shareholders 26.1 83.0 67.8 45.7 80.5
Net income
attributable to
shareholders 26.1 83.0 69.4 45.7 (35.0)
Adjusted income
from continuing
operations(4) 40.0 56.1 52.9 42.5 42.3
Per basic
share:
Net income from
continuing
operations
attributable
to
shareholders 0.41 1.29 1.06 0.71 1.25
Net income
attributable
to
shareholders 0.41 1.29 1.08 0.71 (0.54)
Adjusted income
from
continuing
operations(4) 0.63 0.87 0.82 0.66 0.66
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Financial figures for the third quarters of 2010 and 2011 are
presented in accordance with IFRS.
(2) Financial figures for the third quarters of 2007 to 2009 are presented
in accordance with Canadian Generally Accepted Accounting Principles
("GAAP").
(3) See "Operating income" under "Definitions."
(4) See "Adjusted income from continuing operations" under "Definitions."
2011/2010 third quarter comparison
Revenues: $1.01 billion, an increase of $44.9 million
(4.6%).
-- Revenues increased in Telecommunications ($55.4 million or 10.0% of
segment revenues) and in Interactive Technologies and Communications
($7.5 million or 33.5%).
-- Revenues decreased in Broadcasting ($5.0 million or -5.3%), Leisure and
Entertainment ($3.8 million or -4.9%) and News Media ($3.3 million or
-1.4%).
Operating income: $319.7 million, a decrease of $12.3 million
(-3.7%).
-- Operating income increased in Telecommunications ($10.9 million or 4.1%
of segment operating income) and Interactive Technologies and
Communications ($2.0 million or 166.7%).
-- Operating income decreased in Broadcasting ($10.1 million or -77.1%),
News Media ($8.9 million or -23.4%) and Leisure and Entertainment ($0.8
million or -6.5%).
-- The change in the fair value of Quebecor Media stock options resulted in
a $1.1 million favourable variance in the stock-based compensation
charge in the third quarter of 2011 compared with the same period of
2010. The change in the fair value of Quebecor stock options resulted in
a $4.1 million unfavourable variance in the Corporation's stock-based
compensation charge in the third quarter of 2011.
-- Excluding the impact of the consolidated stock-based compensation
charge, and if the figures for prior periods were restated to
retroactively reflect the reversal in the fourth quarter of 2009 of the
accumulated Part II licence fee provision of Canadian Radio-television
and Telecommunications Commission ("CRTC"), operating income would have
decreased 2.8% in the third quarter of 2011, compared with a 7.8%
increase in the same period of 2010.
Net income attributable to shareholders: $26.1 million ($0.41
per basic share) compared with $83.0 million ($1.29 per basic
share) in the third quarter of 2010, a decrease of $56.9 million
($0.88 per basic share).
-- The decrease was mainly due to:
-- $34.4 million loss on valuation and translation of financial
instruments in the third quarter of 2011 compared with a $79.0
million gain in the same quarter of 2010, an unfavourable variance
of $113.4 million;
-- $33.0 million increase in the amortization charge;
-- $12.3 million decrease in operating income;
-- $4.7 million increase in financial expenses.
-- Partially offset by:
-- $9.7 million favourable variance in the charge for restructuring of
operations, impairment of assets and other special items.
Adjusted income from continuing operations: $40.0 million in the
third quarter of 2011 ($0.63 per basic share) compared with $56.1
million ($0.87 per basic share) in the same quarter of 2010, a
decrease of $16.1 million ($0.24 per basic share).
2011/2010 year-to-date comparison
Revenues: $3.06 billion, an increase of $146.7 million
(5.0%).
-- Revenues increased in Telecommunications ($158.3 million or 9.7% of
segment revenues), Interactive Technologies and Communications ($14.8
million or 21.1%) and Leisure and Entertainment ($1.8 million or 0.9%).
-- Revenues decreased in News Media ($5.2 million or -0.7%) and
Broadcasting ($0.9 million or -0.3%).
Operating income: $972.5 million, a decrease of $1.8 million
(-0.2%).
-- Operating income decreased in News Media ($30.5 million or -22.8% of
segment operating income) and Broadcasting ($15.8 million or -34.6%).
-- Operating income increased in Telecommunications ($20.0 million or
2.6%), Leisure and Entertainment ($2.7 million or 16.6%) and Interactive
Technologies and Communications ($1.9 million or 54.3%).
-- The change in the fair value of Quebecor Media stock options resulted in
a $12.7 million favourable variance in the stock-based compensation
charge in the first nine months of 2011 compared with the same period of
2010. The fair value of the options decreased during the first nine
months of 2011, whereas it increased during the same period of 2010. The
change in the fair value of Quebecor stock options resulted in a $22.8
million favourable variance in the Corporation's stock-based
compensation charge in the first nine months of 2011.
-- Excluding the impact of the consolidated stock-based compensation
charge, and if the figures for prior periods were restated to
retroactively reflect the reversal in the fourth quarter of 2009 of the
accumulated CRTC Part II licence fee provision, operating income would
have decreased 3.7% in the first nine months of 2011, compared with a
10.0% increase in the same period of 2010.
Net income attributable to shareholders: $115.6 million ($1.80
per basic share) compared with $178.7 million ($2.78 per basic
share) in the first nine months of 2010, a decrease of $63.1
million ($0.98 per basic share).
-- The decrease was mainly due to:
-- $97.6 million unfavourable variance in losses and gains on valuation
and translation of financial instruments;
-- $94.8 million increase in the amortization charge;
-- $5.3 million increase in the charge for restructuring of operations,
impairment of assets and other special items.
-- Partially offset by:
-- $5.7 million decease in the loss on debt refinancing.
Adjusted income from continuing operations: $135.9 million in
the first nine months of 2011 ($2.12 per basic share) compared with
$162.4 million ($2.52 per basic share) in the same period of 2010,
a decrease of $26.5 million ($0.40 per basic share).
Financing activities
On July 5, 2011, Videotron issued 6 7/8% Senior Notes maturing
on July 15, 2021 in the aggregate principal amount of $300.0
million, for a net proceeds of $294.9 million, net of financing
fees of $5.1 million. The net proceeds were used to finance the
early repayment and withdrawal of US$255.0 million principal amount
of Videotron's 6 7/8% Senior Notes maturing in 2014 and the
settlement and cancellation of related hedges for a total cash
consideration of $303.1 million. On July 20, 2011, Videotron
amended its $575.0 million revolving credit facility to extend the
expiry date from April 2012 to July 2016 and to modify some of the
terms and conditions.
The conditions of the exchangeable debentures, Series 2001 and
Series Abitibi, were amended in February and June 2011 respectively
to reduce the interest rate from 1.50% to 0.10% on the notional
principal amount of the debentures. The other conditions have not
changed and remain applicable. In September 2011, the Corporation
redeemed exchangeable debentures, Series 2001, in the notional
principal amount of $135.0 million for no consideration. At
September 30, 2011, the combined notional principal amount of the
two series of exchangeable debentures was $844.9 million.
Dividends
On November 8, 2011, 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
20, 2011 to shareholders of record at the close of business on
November 25, 2011. This dividend is designated to be an eligible
dividend, pursuant to subsection 89(14) of the Canadian Income Tax
Act and its provincial counterpart.
Normal course issuer bid
On August 10, 2011, the Corporation filed a normal course issuer
bid for a maximum of 985,233 ("Class A shares") representing
approximately 5% of the issued and outstanding Class A shares, and
for a maximum of 4,453,304 ("Class B shares") representing
approximately 10% of the public float of the Class B shares as of
August 2, 2011. The purchases can be made from August 12, 2011 to
August 10, 2012 at prevailing market prices on the open market
through the facilities of the Toronto Stock Exchange. All shares
purchased under the bid are or will be cancelled.
During the third quarter of 2011, the Corporation purchased and
cancelled 738,500 Class B shares for a total cash consideration of
$24.0 million. The excess of $18.4 million of the purchase price
over the carrying value of Class B shares repurchased was recorded
in reduction of retained earnings.
Detailed financial information
For a detailed analysis of Quebecor's results for the third
quarter of 2011, please refer to the Management Discussion and
Analysis and condensed consolidated financial statements of
Quebecor, available on the Corporation's website at
http://www.quebecor.com/en/quarterly_doc_quebecor_inc or from the
SEDAR filing service at www.sedar.com.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss its third
quarter 2011 results on November 9, 2011, at 11:00 a.m. EST. There
will be a question period reserved for financial analysts. To
access the conference call, please dial 1 877 293-8052, access code
58308#. A tape recording of the call will be available from
November 9 to December 9, 2011 by dialling 1 877 293-8133,
conference reference number 656419#, passcode 58308#. The
conference call will also be broadcast live on Quebecor's website
at http://www.quebecor.com/en/content/conference-call. 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.
Cautionary statement regarding 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 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, 2010.
The forward-looking statements in this press release reflect
Quebecor's expectations as of November 9, 2011 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 Corporation
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, with more than 16,000 employees. Quebecor Media Inc.,
through its subsidiary Videotron Ltd., is an integrated
communications company engaged in cable television, interactive
multimedia development, Internet access services, cable telephone
services and mobile telephone services. Through Sun Media
Corporation, Quebecor Media Inc. is the largest publisher of
newspapers in Canada. It also operates Canoe Inc. and its network
of English and French language Internet properties in Canada. In
the broadcasting sector, Quebecor Media Inc. operates, through TVA
Group Inc., the number one French language general interest
television network in Quebec, a number of specialty channels and
the Sun News English language channel. Another subsidiary of
Quebecor Media Inc., Nurun Inc., is a major interactive
technologies and communications agency with offices in Canada, the
United States, Europe and Asia. Quebecor Media Inc. is also active
in magazine publishing (TVA Publishing Inc.), book publishing and
distribution (Sogides Group Inc. and CEC Publishing Inc.), the
production, distribution and retailing of cultural products
(Archambault Group Inc. and TVA Films), DVD, Blu-ray disc and
videogame rental and retailing (Le SuperClub Videotron Ltd), the
printing and distribution of regional newspapers and flyers
(Quebecor Media Printing Inc. and Quebecor Media Network Inc.),
news content production and distribution (QMI Agency),
multiplatform advertising solutions (QMI Sales) and the publishing
of printed and online directories, through Quebecor MediaPages.
DEFINITIONS
Operating income
In its analysis of operating results, the Corporation uses
operating income, as reported in its condensed consolidated
statement of income, to assess its financial performance. The
Corporation's management and Board of Directors use this measure in
evaluating the Corporation's consolidated results and the results
of its operating segments. This measure is unaffected by the
capital structure or investment activities of the Corporation and
its segments. Operating income is also relevant because it is a
significant component of the Corporation's annual incentive
compensation programs. Operating income is defined as an additional
IFRS measure.
Previously, under Canadian GAAP, operating income was a non-GAAP
measure. The Corporation defined operating income as net income in
accordance with Canadian GAAP before amortization, financial
expenses, gain (loss) on valuation and translation of financial
instruments, charge for restructuring of operations, impairment of
assets and other special items, gain (loss) on debt refinancing,
income tax, and net income attributable to non-controlling
interests.
Operating income as used by the Corporation may not be the same
as similarly titled measures reported by other companies.
Adjusted income from continuing operations
The Corporation defines adjusted income from continuing
operations, as reconciled to net income attributable to
shareholders under IFRS, as net income attributable to shareholders
before gain (loss) on valuation and translation of financial
instruments, charge for restructuring of operations, impairment of
assets and other special items, and gain (loss) on debt
refinancing, net of income tax and net income attributable to
non-controlling interests. Adjusted income from continuing
operations, as defined above, is not a measure of results that is
consistent with IFRS. It should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. Adjusted income from continuing operations eliminates
the impact of unusual or one-time items. The Corporation's
definition of adjusted income from continuing operations may not be
identical to similarly titled measures reported by other
companies.
Table 2 provides a reconciliation of adjusted income from
continuing operations to the net income attributable to
shareholders measure used in Quebecor's condensed consolidated
financial statements.
Table 2
Reconciliation of the adjusted income from continuing operations measure
used in this report to the net income attributable to shareholders measure
used in the condensed consolidated financial statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Adjusted income from
continuing operations $ 40.0 $ 56.1 $ 135.9 $ 162.4
(Loss) gain on valuation
and translation of
financial instruments (34.4) 79.0 (27.9) 69.7
Restructuring of
operations, impairment
of assets and other
special items (2.9) (12.6) (19.0) (13.7)
Gain (loss) on debt
refinancing 2.7 - (6.6) (12.3)
Income tax related to
adjustments(1) 7.6 (17.6) 13.7 (11.6)
Net income attributable
to non-controlling
interests related to
adjustments 13.1 (21.9) 19.5 (15.8)
----------------------------------------------------------------------------
Net income attributable
to shareholders $ 26.1 $ 83.0 $ 115.6 $ 178.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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 Corporation 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 IFRS and the
Corporation's definition and calculation of ARPU may not be the
same as identically titled measurements reported by other
companies. The Corporation 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
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Revenues
Telecommunications $ 611.6 $ 556.2 $ 1,795.9 $ 1,637.6
News Media 235.2 238.5 742.8 748.0
Broadcasting 89.3 94.3 313.9 314.8
Leisure and Entertainment 73.8 77.6 206.7 204.9
Interactive Technologies and
Communications 29.9 22.4 84.9 70.1
Inter-segment (25.0) (19.1) (85.5) (63.4)
--------------------------------------------
1,014.8 969.9 3,058.7 2,912.0
Cost of sales, selling and
administrative expenses 695.1 637.9 2,086.2 1,937.7
--------------------------------------------
Operating income 319.7 332.0 972.5 974.3
Amortization 131.0 98.0 374.0 279.2
Financial expenses 83.4 78.7 245.2 242.5
Loss (gain) on valuation and
translation of financial
instruments 34.4 (79.0) 27.9 (69.7)
Restructuring of operations,
impairment of assets and other
special items 2.9 12.6 19.0 13.7
(Gain) loss on debt refinancing (2.7) - 6.6 12.3
--------------------------------------------
Income before income taxes 70.7 221.7 299.8 496.3
Income taxes:
Current 0.2 5.1 (4.9) 65.9
Deferred 21.2 58.1 86.1 71.7
--------------------------------------------
21.4 63.2 81.2 137.6
--------------------------------------------
Net income $ 49.3 $ 158.5 $ 218.6 $ 358.7
--------------------------------------------
--------------------------------------------
Net income attributable to
Shareholders $ 26.1 $ 83.0 $ 115.6 $ 178.7
Non-controlling interests 23.2 75.5 103.0 180.0
--------------------------------------------
--------------------------------------------
Earnings per share attributable
to shareholders
Basic $ 0.41 $ 1.29 $ 1.80 $ 2.78
Diluted 0.40 1.28 1.77 2.74
--------------------------------------------
--------------------------------------------
Weighted average number of
shares outstanding (in
millions) 63.9 64.3 64.2 64.3
Weighted average number of
diluted shares (in millions) 64.5 65.0 64.8 65.0
--------------------------------------------
--------------------------------------------
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
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Net income $ 49.3 $ 158.5 $ 218.6 $ 358.7
Other comprehensive income:
Gain (loss) on translation
of net investments in
foreign operations 0.8 1.1 1.6 (1.8)
Cash flow hedges:
Gain (loss) on valuation
of derivative financial
instruments 19.4 (7.7) 13.4 95.4
Deferred income taxes (10.0) 3.7 (7.1) (13.8)
Defined benefit plans:
Net change in asset
limit or in minimum
funding liability (0.1) (1.4) (0.3) (4.2)
Deferred income taxes - 0.4 0.1 1.2
Reclassification to income
of:
Other comprehensive loss
related to cash flow
hedges 0.8 - 0.8 8.4
Deferred income taxes (0.2) - (0.2) (2.5)
------------------------------------------------
10.7 (3.9) 8.3 82.7
------------------------------------------------
Comprehensive income $ 60.0 $ 154.6 $ 226.9 $ 441.4
------------------------------------------------
------------------------------------------------
Comprehensive income
attributable to
Shareholders $ 32.3 $ 81.2 $ 120.3 $ 224.7
Non-controlling interests 27.7 73.4 106.6 216.7
------------------------------------------------
------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian
dollars) Three months ended Nine months ended
(unaudited) September 30 September 30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Operating income
Telecommunications $ 275.4 $ 264.5 $ 804.1 $ 784.1
News Media 29.1 38.0 103.1 133.6
Broadcasting 3.0 13.1 29.9 45.7
Leisure and Entertainment 11.5 12.3 19.0 16.3
Interactive Technologies and
Communications 3.2 1.2 5.4 3.5
Head Office (2.5) 2.9 11.0 (8.9)
----------------------------------------------
$ 319.7 $ 332.0 $ 972.5 $ 974.3
----------------------------------------------
----------------------------------------------
Amortization
Telecommunications $ 108.0 $ 73.7 $ 307.9 $ 209.9
News Media 14.3 15.8 41.1 45.0
Broadcasting 4.4 3.9 12.8 11.3
Leisure and Entertainment 2.4 2.5 6.8 7.3
Interactive Technologies and
Communications 0.9 1.1 2.5 3.0
Head Office 1.0 1.0 2.9 2.7
----------------------------------------------
$ 131.0 $ 98.0 $ 374.0 $ 279.2
----------------------------------------------
----------------------------------------------
Additions to property, plant
and equipment
Telecommunications $ 195.8 $ 182.2 $ 536.2 $ 460.8
News Media 2.9 3.7 11.3 7.0
Broadcasting 7.1 3.3 22.5 11.8
Leisure and Entertainment 2.4 0.8 4.0 3.4
Interactive Technologies and
Communications 0.5 0.4 3.7 2.0
Head Office 0.1 0.6 0.8 1.8
----------------------------------------------
$ 208.8 $ 191.0 $ 578.5 $ 486.8
----------------------------------------------
----------------------------------------------
Additions to intangible assets
Telecommunications $ 16.1 $ 16.4 $ 45.0 $ 48.2
News Media 2.7 1.8 8.1 7.5
Broadcasting 1.4 1.3 3.4 4.1
Leisure and Entertainment 1.2 1.7 3.8 5.8
----------------------------------------------
$ 21.4 $ 21.2 $ 60.3 $ 65.6
----------------------------------------------
----------------------------------------------
Externally acquired intangible
assets 11.6 6.7 27.1 20.4
Internally generated
intangible assets 9.8 14.5 33.2 45.2
----------------------------------------------
$ 21.4 $ 21.2 $ 60.3 $ 65.6
----------------------------------------------
----------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
(in millions of Canadian dollars)
(unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity attributable to shareholders
-----------------------------------------
Equity
Accumu- attri-
lated butable
other to non-
Contri- com- contro-
Capital buted Retained prehen- lling Total
stock surplus earnings sive loss interests equity
----------------------------------------------------------------------------
Balance as of
December 31,
2009 as
previously
reported
under
Canadian GAAP $ 346.6 $ 4.7 $ 830.1 $ (11.0)$ - $ 1,170.4
IFRS
adjustments - (2.7) (73.5) 1.0 1,162.6 1,087.4
----------------------------------------------------------------------------
Balance as of
January 1,
2010 346.6 2.0 756.6 (10.0) 1,162.6 2,257.8
Net income - - 178.7 - 180.0 358.7
Other
comprehensive
income - - - 46.0 36.7 82.7
Acquisition of
non-
controlling
interests - (1.1) - - (0.9) (2.0)
Dividends - - (9.6) - (30.1) (39.7)
----------------------------------------------------------------------------
Balance as of
September 30,
2010 346.6 0.9 925.7 36.0 1,348.3 2,657.5
Net income - - 46.6 - 51.3 97.9
Other
comprehensive
loss - - - (47.7) (39.8) (87.5)
Acquisition of
non-
controlling
interests - - - - (1.0) (1.0)
Dividends - - (3.3) - (11.9) (15.2)
----------------------------------------------------------------------------
Balance as of
December 31,
2010 346.6 0.9 969.0 (11.7) 1,346.9 2,651.7
Net income - - 115.6 - 103.0 218.6
Other
comprehensive
income - - - 4.7 3.6 8.3
Issuance of
shares of a
subsidiary to
non-
controlling
shareholders - - - - 1.0 1.0
Repurchase of
Class B
shares (5.6) - (18.4) - - (24.0)
Dividends - - (9.6) - (35.2) (44.8)
----------------------------------------------------------------------------
Balance as of
September 30,
2011 $ 341.0 $ 0.9 $ 1,056.6 $ (7.0)$ 1,419.3 $ 2,810.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Cash flows related to
operating activities
Net income $ 49.3 $ 158.5 $ 218.6 $ 358.7
Adjustments for:
Amortization of
property, plant and
equipment 99.5 78.2 285.4 233.5
Amortization of
intangible assets 31.5 19.8 88.6 45.7
Loss (gain) on valuation
and translation of
financial instruments 34.4 (79.0) 27.9 (69.7)
Impairment of assets 0.3 5.4 1.5 11.1
(Gain) loss on debt
refinancing (2.7) - 6.6 12.3
Amortization of
financing costs and
long-term debt discount 3.3 3.1 9.2 9.3
Deferred income taxes 21.2 58.1 86.1 71.7
Other 2.3 (0.5) 0.9 (6.8)
------------------------------------------------
239.1 243.6 724.8 665.8
Net change in non-cash
balances related to
operating activities 141.1 49.7 (32.4) (9.6)
------------------------------------------------
Cash flows provided by
operating activities 380.2 293.3 692.4 656.2
------------------------------------------------
Cash flows related to
investing activities
Business acquisitions, net
of cash and cash
equivalents (5.6) (2.0) (55.7) (3.1)
Business disposals, net of
cash and cash equivalents - 0.3 - 2.1
Additions to property,
plant and equipment (208.8) (191.0) (578.5) (486.8)
Additions to intangible
assets (21.4) (21.2) (60.3) (65.6)
Proceeds from disposals of
assets 2.5 2.3 7.5 49.6
Net change in temporary
investments - - - 30.0
Net change in cash and
cash equivalents in trust 0.1 - 4.9 -
Other 0.3 0.3 (1.7) 0.3
------------------------------------------------
Cash flows used in investing
activities (232.9) (211.3) (683.8) (473.5)
------------------------------------------------
Cash flows related to
financing activities
Net change in bank
indebtedness 1.9 (1.0) (1.0) 2.0
Net change under revolving
credit facilities 6.9 (0.1) (4.0) 2.5
Issuance of long-term
debt, net of financing
fees 294.9 - 614.8 292.7
Repayment of long-term
debt (254.9) (22.3) (481.1) (342.5)
Settlement of hedging
contracts (54.8) - (160.2) (32.4)
Repurchase of Class B
shares (24.0) - (24.0) -
Dividends (6.4) (3.2) (9.6) (9.6)
Dividends paid to non-
controlling shareholders (11.4) (11.9) (35.2) (30.1)
Other 0.1 - 1.1 -
------------------------------------------------
Cash flows used in financing
activities (47.7) (38.5) (99.2) (117.4)
------------------------------------------------
Net change in cash and cash
equivalents 99.6 43.5 (90.6) 65.3
Effect of exchange rate
changes on cash and cash
equivalents
denominated in foreign
currencies - 0.2 0.3 (0.8)
Cash and cash equivalents at
beginning of period 52.8 320.8 242.7 300.0
------------------------------------------------
Cash and cash equivalents at
end of period $ 152.4 $ 364.5 $ 152.4 $ 364.5
------------------------------------------------
------------------------------------------------
Cash and cash equivalents
consist of
Cash $ 40.4 $ 92.5 $ 40.4 $ 92.5
Cash equivalents 112.0 272.0 112.0 272.0
------------------------------------------------
$ 152.4 $ 364.5 $ 152.4 $ 364.5
------------------------------------------------
------------------------------------------------
Non-cash investing
activities
Net change in additions to
property, plant and
equipment and intangible
assets financed with
accounts payable $ 0.8 $ (17.6) $ 28.7 $ (25.3)
------------------------------------------------
------------------------------------------------
Interest and taxes reflected
as operating activities
Cash interest payments $ 22.9 $ 33.8 $ 186.1 $ 188.7
Cash income tax payments
(net of refunds) (3.7) 6.9 30.3 34.1
------------------------------------------------
------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited) September 30 December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2011 2010
----------------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $ 152.4 $ 242.7
Cash and cash equivalents in trust 0.4 5.3
Accounts receivable 538.7 588.5
Income taxes 16.8 6.4
Inventories 271.1 245.2
Prepaid expenses 38.9 38.0
------------------------------
1,018.3 1,126.1
Non-current assets
Property, plant and equipment 3,075.6 2,812.9
Intangible assets 1,015.8 1,029.1
Goodwill 3,551.0 3,505.2
Derivative financial instruments 69.5 28.7
Deferred income taxes 27.6 20.3
Other assets 94.3 93.8
------------------------------
7,833.8 7,490.0
------------------------------
Total assets $ 8,852.1 $ 8,616.1
------------------------------
------------------------------
Liabilities and equity
Current liabilities
Bank indebtedness $ 4.7 $ 5.7
Accounts payable and accrued charges 746.8 753.6
Provisions 38.9 72.2
Deferred revenue 285.9 275.1
Income taxes 6.0 33.6
Current portion of long-term debt 49.0 30.8
------------------------------
1,131.3 1,171.0
Non-current liabilities
Long-term debt 3,821.3 3,587.3
Derivative financial instruments 267.6 479.9
Other liabilities 268.9 274.0
Deferred income taxes 552.2 452.2
------------------------------
4,910.0 4,793.4
Equity
Capital stock 341.0 346.6
Contributed surplus 0.9 0.9
Retained earnings 1,056.6 969.0
Accumulated other comprehensive loss (7.0) (11.7)
------------------------------
Equity attributable to shareholders 1,391.5 1,304.8
Non-controlling interests 1,419.3 1,346.9
------------------------------
2,810.8 2,651.7
------------------------------
Total liabilities and equity $ 8,852.1 $ 8,616.1
------------------------------
------------------------------
Contacts: Jean-Francois Pruneau Chief Financial Officer Quebecor
Inc. and Quebecor Media Inc.
514-380-4144jean-francois.pruneau@quebecor.com J. Serge Sasseville
Vice President, Corporate and Institutional Affairs Quebecor Media
Inc. 514-380-1864serge.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
