Quebecor Inc. ("Quebecor" or the "Corporation")
(TSX:QBR.A)(TSX:QBR.B) today reported its consolidated financial
results for the first quarter of 2013. Quebecor consolidates the
financial results of its Quebecor Media Inc. ("Quebecor Media")
subsidiary, in which it holds a 75.4% interest.
First quarter 2013 highlights
-- Revenues down slightly by $9.5 million (-0.9%) from the first quarter of
2012 to $1.05 billion.
-- Operating income(1) up $0.1 million to $320.4 million.
-- Net income attributable to shareholders: $35.6 million ($0.57 per basic
share) compared with $71.4 million ($1.13 per basic share) in the first
quarter of 2012, a decrease of $35.8 million ($0.56 per basic share).
-- Adjusted income from continuing operations(2): $33.1 million in the
first quarter of 2013 ($0.53 per basic share) compared with $37.8
million ($0.60 per basic share) in the first quarter of 2012, a decrease
of $4.7 million ($0.07 per basic share).
-- Telecommunications segment's revenues up $23.0 million (3.6%) and
operating income up $14.3 million (4.7%) in the first quarter of 2013.
-- All major services of Videotron Ltd. ("Videotron") increase their
revenues in the first quarter of 2013: mobile telephony ($12.4 million
or 33.0%), Internet access ($7.1 million or 3.7%), cable telephony ($4.0
million or 3.6%) and cable television ($3.9 million or 1.5%).
-- Videotron's revenue-generating units(3) up 31,100 in the first quarter
of 2013 (compared with an increase of 30,200 in the same period of 2012)
and up 222,700 (4.7%) in the 12-month period ended March 31, 2013.
-- Net increase of 18,300 subscriber connections to the mobile telephone
service in the first quarter of 2013; the service passes the break-even
point for the first time since it was launched, based on operating
income.
-- Robert Depatie, President and Chief Executive Officer of Videotron since
2003, takes over from Pierre Karl Peladeau as President and Chief
Executive Officer of Quebecor and of Quebecor Media. Mr. Peladeau
becomes Chairman of the Board of Quebecor Media and Vice Chairman of the
Board of Quebecor. He will also take responsibility for some of the
Corporation's strategic files.
-- Manon Brouillette, President, Consumer Market, of Videotron, is
appointed President and Chief Operating Officer of the subsidiary.
Robert Depatie remains Chief Executive Officer of Videotron.
(1) See "Operating income" under "Definitions."
(2) See "Adjusted income from continuing operations" under "Definitions."
(3) The sum of cable television, cable and mobile Internet access, and
cable telephony service subscriptions and subscriber connections to the
mobile telephony service.
"We are very satisfied with Videotron's results, which continued
showing healthy improvement in the first quarter of 2013," said
Robert Depatie. "Our revenues rose by $23.0 million and our
operating income grew by $14.3 million, increases of 3.6% and 4.7%
respectively in comparison with the first quarter of 2012. Revenues
from all of Videotron's main services were up, led by the mobile
telephony service, which increased its revenues by $12.4 million or
33.0% from the same quarter of 2012. Videotron's average monthly
revenue per user increased by $5.31 to $114.49.
"In the first quarter of 2013, a little more than two years
after its launch, the mobile service passed the break-even point,
based on operating income, a very strong performance given the
highly competitive environment. The service continued making
substantial gains, adding 18,300 subscriber connections in the
first quarter of 2013 to bring the total to 420,900. Videotron
stepped up the overall pace of growth in revenue-generating units,
adding 31,100 in the first quarter of 2013 compared with an
increase of 30,200 in the same quarter of 2012. Meanwhile, the
illico Club Unlimited service has already signed up 40,000
subscribers since its launch at the end of February 2013, while
illico TV new generation, introduced in March 2012, has passed the
700,000-subscriber mark."
"Unfortunately, in the News Media segment, the latest
cost-containment initiatives did not make up for the decrease in
revenues during the quarter, which was more significant than in
previous periods," commented Pierre Karl Peladeau. "In addition to
intense competition from new media, traditional newspapers are also
facing large reductions in advertising spending by local and
national advertisers. Despite signs of a potential recovery in
advertising spending in the coming quarters, News Media segment
management took immediate steps to adjust its cost structure again
in light of the conditions experienced in the first quarter of
2013."
In the Broadcasting segment, TVA Network's hit show La Voix was
a resounding success, registering exceptional ratings throughout
its run from January 20 to April 14, 2013. The weekly galas drew an
average audience of more than 2.6 million and an average market
share of more than 57%. According to BBM Ratings, TVA Network had
an overall market share of 24.5% in the first three months of 2013,
more than its two main conventional rivals combined. Finally, under
a partnership with CBC/Radio-Canada, the TVA Sports specialty
service will enrich its content by becoming an official broadcaster
of the 2014 FIFA World Cup Brazil(TM) and the 2014 Winter Olympics
in Sochi.
"I am very pleased with Quebecor's evolution and growth over the
14 years during which I had the privilege of serving as President
and Chief Executive Officer," said Pierre Karl Peladeau. "I thank
all the colleagues who helped, guided and supported me in that
position throughout the years. In view of Videotron management's
exceptional track record over the past 10 years, I have full
confidence that Robert Depatie's arrival at the head of Quebecor
will enable the Corporation to successfully continue its growth and
development going forward, in the best interests of its customers,
employees, business partners and shareholders."
"I want to express my deepest gratitude to Serge Gouin, who is
retiring after serving as Chairman of the Board of Quebecor Media
since its creation in 2000," said Francoise Bertrand, Chair of the
Board of Quebecor. "His dedication and his generosity with his
expertise and his time as Chairman of the Board and as a member of
Quebecor Media's Executive Committee made a vital contribution to
the Corporation's success."
Table 1
Quebecor financial highlights, 2009 to 2013
(in millions of Canadian dollars, except per share data)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2013(1) 2012(1) 2011(1) 2010(1) 2009(2)
----------------------------------------------------------------------------
Revenues $1,052.1 $1,061.6 $ 988.4 $ 945.9 $ 903.3
Operating income 320.4 320.3 293.4 290.0 272.2
Net income attributable to
shareholders 35.6 71.4 33.2 34.4 57.7
Adjusted income from
continuing operations 33.1 37.8 34.8 42.9 43.1
Per basic share:
Net income attributable to
shareholders 0.57 1.13 0.51 0.53 0.90
Adjusted income from
continuing operations 0.53 0.60 0.54 0.66 0.67
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Financial figures for 2010 to 2013 are presented in accordance with
International Financial Reporting Standards ("IFRS").
(2) Financial figures for 2009 are presented in accordance with Canadian
Generally Accepted Accounting Principles.
2013/2012 First quarter comparison
Revenues: $1.05 billion, a decrease of $9.5 million (-0.9%).
-- Revenues decreased in News Media ($25.5 million or -10.9% of segment
revenues), Leisure and Entertainment ($6.3 million or -9.4%),
Broadcasting ($2.4 million or -2.1%), and Interactive Technologies and
Communications ($1.4 million or -3.8%).
-- Revenues increased in the Telecommunications segment ($23.0 million or
3.6%).
Operating income: $320.4 million, an increase of $0.1
million.
-- Operating income increased in Telecommunications ($14.3 million or 4.7%
of segment operating income) and there was a favourable variance in the
Broadcasting segment ($5.1 million).
-- Operating income decreased in News Media ($10.0 million or -63.7%),
Leisure and Entertainment ($2.0 million), Interactive Technologies and
Communications ($1.7 million or -56.7%), and at Head Office ($5.6
million). The decrease at Head Office was due primarily to a gain on
dispute settlement recognized in the first quarter of 2012.
-- The change in the fair value of Quebecor Media stock options resulted in
a $4.4 million favourable variance in the consolidated stock-based
compensation charge in the first quarter of 2013 compared with the same
period of 2012.
Net income attributable to shareholders: $35.6 million ($0.57
per basic share) compared with $71.4 million ($1.13 per basic
share) in the first quarter of 2012, a decrease of $35.8 million
($0.56 per basic share).
-- The decrease was mainly due to:
-- $74.2 million unfavourable variance in the gain on valuation and
translation of financial instruments;
-- $20.7 million increase in amortization charge;
-- $11.8 million increase in financial expenses.
Partially offset by:
-- favourable variance in 2013 due to recognition of a $14.5 million
goodwill impairment charge in the first quarter of 2012;
-- favourable variance in 2013 due to $7.3 million loss on debt refinancing
recorded in the first quarter of 2012.
Adjusted income from continuing operations: $33.1 million in the
first quarter of 2013 ($0.53 per basic share) compared with $37.8
million ($0.60 per basic share) in the first quarter of 2012, a
decrease of $4.7 million ($0.07 per basic share).
Dividends
On May 7, 2013, 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 June 18,
2013 to shareholders of record at the close of business on May 24,
2013. 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 first quarter 2013
results, please refer to the Management Discussion and Analysis and
consolidated financial statements of Quebecor, available on the
Corporation's website at
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 first
quarter 2013 results on May 8, 2013, at 4:30 p.m. EDT. There will
be a question period reserved for financial analysts. To access the
conference call, please dial 1 877 293-8052, access code for
participants 79504#. A tape recording of the call will be available
from May 8 to June 14, 2013 by dialling 1 877 293-8133, conference
number 957189#, access code for participants 79504#. The conference
call will also be broadcast live on Quebecor's website at
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 that could
cause the Corporation'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 less than
www.sedar.comgreater than and less than www.quebecor.comgreater
than including, in particular, the "Risks and Uncertainties"
section of Quebecor's Management Discussion and Analysis for the
year ended December 31, 2012.
The forward-looking statements in this press release reflect
Quebecor's expectations as of May 8, 2013, 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
75.4% 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 telephony
and mobile telephony. Through Sun Media Corporation, Quebecor Media
Inc. is the largest publisher of newspapers in Canada. It also
operates Canoe.ca and its network of English- and French-language
Internet properties in Canada. In the broadcasting segment,
Quebecor Media Inc. operates, through TVA Group Inc., the number
one French-language conventional television network in Quebec, a
number of specialty channels, and, through Sun Media Corporation,
the English-language SUN News 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 (Publications TVA Inc.), book publishing and
distribution (Sogides Group Inc., CEC Publishing Inc.), the
production, distribution and retailing of cultural products
(Archambault Group Inc., TVA Films), video game development
(BlooBuzz Studios Inc. ), DVD, Blu-ray disc and videogame rental
and retailing (Le SuperClub Videotron ltee), the printing and
distribution of community newspapers and flyers (Quebecor Media
Printing Inc., Quebecor Media Network Inc.), outdoor advertising
(Quebecor Media Out of Home), news content production and
distribution (QMI Agency), and multiplatform advertising solutions
(QMI Sales).
DEFINITIONS
Operating income
In its analysis of operating results, the Corporation defines
operating income, as reconciled to net income under IFRS, 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, charge
for impairment of goodwill, loss on debt refinancing, and income
tax. Operating income as defined above is not a measure of results
that is consistent with IFRS. 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 IFRS. The Corporation uses
operating income in order to assess the performance of its
investment in Quebecor Media. The Corporation's management and
Board of Directors use this measure in evaluating its consolidated
results as well as the results of the Corporation's operating
segments. This measure eliminates the significant level of
impairment and amortization of tangible and intangible assets and
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. 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
Corporation's segments. The Corporation also uses other measures
that do reflect such costs, such as cash flows from segment
operations and free cash flows from continuing operating activities
of the Quebecor Media subsidiary. 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 Corporation is engaged. The Corporation's definition
of operating income may not be the same as similarly titled
measures reported by other companies.
Table 2 below provides a reconciliation of operating income with
net income as disclosed in Quebecor's condensed consolidated
financial statements.
Table 2
Reconciliation of the operating income measure used in this press release to
the net income measure used in the condensed consolidated financial
statements
(in millions of Canadian dollars)
Three months ended March 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
Operating (loss) income:
Telecommunications $ 317.3 $ 303.0
News Media 5.7 15.7
Broadcasting (1.9) (7.0)
Leisure and Entertainment (1.7) 0.3
Interactive Technologies and
Communications 1.3 3.0
Head Office (0.3) 5.3
----------------------------------------------------------------------------
320.4 320.3
Amortization (162.7) (142.0)
Financial expenses (97.2) (85.4)
Gain on valuation and translation of
financial instruments 7.7 81.9
Restructuring of operations, impairment
of assets and other special items (1.6) (1.1)
Impairment of goodwill - (14.5)
Loss on debt refinancing - (7.3)
Income taxes (20.9) (38.7)
----------------------------------------------------------------------------
Net income $ 45.7 $ 113.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 on valuation and translation of financial instruments,
charge for restructuring of operations, impairment of assets and
other special items, charge for impairment of goodwill and loss on
debt refinancing, net of income tax related to adjustments and net
income attributable to non-controlling interests related to
adjustments. 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. The
Corporation'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 operations to the net income attributable to
shareholders measure used in Quebecor's condensed consolidated
financial statements.
Table 3
Reconciliation of the adjusted income from continuing operations measure
used in this press release to the net income attributable to shareholders
measure used in the condensed consolidated financial statements
(in millions of Canadian dollars)
Three months ended March 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
Adjusted income from continuing
operations $ 33.1 $ 37.8
Gain on valuation and translation of
financial instruments 7.7 81.9
Restructuring of operations, impairment
of assets and other special items (1.6) (1.1)
Impairment of goodwill - (14.5)
Loss on debt refinancing - (7.3)
Income taxes related to adjustments(1) (3.3) (13.3)
Net income attributable to non-
controlling interest related to
adjustments (0.3) (12.1)
----------------------------------------------------------------------------
Net income attributable to shareholders $ 35.6 $ 71.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Includes impact of fluctuations in income tax applicable to adjusted
items, either for statutory reasons or in connection with tax
transactions.
Average monthly revenue per user
Average monthly revenue per user ("ARPU") is an industry metric
that the Corporation uses to measure its monthly cable television,
Internet access, cable and mobile telephony 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, and cable and mobile
telephony 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)
(unaudited) Three months ended March 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
(restated)
Revenues $ 1,052.1 $ 1,061.6
Employee costs 271.9 277.6
Purchase of goods and services 459.8 463.7
Amortization 162.7 142.0
Financial expenses 97.2 85.4
Gain on valuation and translation of
financial instruments (7.7) (81.9)
Restructuring of operations, impairment
of assets and other special items 1.6 1.1
Impairment of goodwill - 14.5
Loss on debt refinancing - 7.3
------------------------------------
Income before income taxes 66.6 151.9
Income taxes:
Current 24.2 5.5
Deferred (3.3) 33.2
------------------------------------
20.9 38.7
------------------------------------
Net income $ 45.7 $ 113.2
------------------------------------
------------------------------------
Net income attributable to
Shareholders $ 35.6 $ 71.4
Non-controlling interests 10.1 41.8
------------------------------------
Earnings per share attributable to
shareholders
Basic $ 0.57 $ 1.13
Diluted 0.49 1.12
------------------------------------
------------------------------------
Weighted average number of shares
outstanding (in millions) 62.3 63.5
Weighted average number of diluted
shares (in millions) 75.3 63.7
------------------------------------
------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars)
(unaudited) Three months ended March 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
(restated)
Net income $ 45.7 $ 113.2
Other comprehensive income:
Items that may be reclassified to
income:
Gain (loss) on translation of net
investments in foreign operations 1.1 (0.4)
Cash flow hedges:
(Loss) gain on valuation of
derivative financial instruments (25.9) 18.9
Deferred income taxes 0.8 2.3
Reclassification to income:
Other comprehensive gain related to
cash flow hedges - (3.3)
Deferred income taxes - (1.2)
------------------------------------
(24.0) 16.3
------------------------------------
Comprehensive income $ 21.7 $ 129.5
------------------------------------
------------------------------------
Comprehensive income attributable to
Shareholders $ 17.5 $ 80.3
Non-controlling interests 4.2 49.2
------------------------------------
------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars)
(unaudited)
----------------------------------
Three months ended March 31, 2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Leisure
and
Telecommu- News Broad- Enter-
nications Media casting tainment
----------------------------------------------------------------------------
Revenues $ 668.8 $ 207.6 $ 113.0 $ 60.8 $
Employee costs 95.5 81.6 37.6 14.2
Purchase of goods and
services 256.0 120.3 77.3 48.3
----------------------------------------------------------------------------
Operating income(1) 317.3 5.7 (1.9) (1.7)
Amortization
Financial expenses
Gain on valuation and
translation of
financial instruments
Restructuring of
operations, impairment
of assets and other
special items
----------------------------------------------------------------------------
Income before income
taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Additions to property,
plant and equipment $ 145.6 $ 2.4 $ 5.3 $ 0.5 $
Additions to intangible
assets 13.2 1.0 0.6 0.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended March 31, 2013
--------------------------------------------------------------
--------------------------------------------------------------
Interactive
Techno- Head
logies and office
Communi- and Inter-
cations segments Total
--------------------------------------------------------------
Revenues 35.2 $ (33.3) $ 1,052.1
Employee costs 25.0 18.0 271.9
Purchase of goods and
services 8.9 (51.0) 459.8
--------------------------------------------------------------
Operating income(1) 1.3 (0.3) 320.4
Amortization 162.7
Financial expenses 97.2
Gain on valuation and
translation of
financial instruments (7.7)
Restructuring of
operations, impairment
of assets and other
special items 1.6
--------------------------------------------------------------
Income before income
taxes $ 66.6
--------------------------------------------------------------
--------------------------------------------------------------
Additions to property,
plant and equipment 0.8 $ 0.2 $ 154.8
Additions to intangible
assets - 0.1 15.6
--------------------------------------------------------------
--------------------------------------------------------------
Three months ended March 31, 2012
(restated)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Leisure
and
Telecommu- News Broad- Enter-
nications Media casting tainment
----------------------------------------------------------------------------
Revenues $ 645.8 $ 233.1 $ 115.4 $ 67.1 $
Employee costs 92.0 91.2 40.7 13.8
Purchase of goods and
services 250.8 126.2 81.7 53.0
----------------------------------------------------------------------------
Operating income(1) 303.0 15.7 (7.0) 0.3
Amortization
Financial expenses
Gain on valuation and
translation of
financial instruments
Restructuring of
operations, impairment
of assets and other
special items
Impairment of goodwill
Loss on debt refinancing
----------------------------------------------------------------------------
Income before income
taxes
----------------------------------------------------------------------------
Additions to property,
plant and equipment $ 183.5 $ 1.9 $ 5.3 $ 0.9 $
Additions to intangible
assets 18.9 2.8 0.6 0.7
----------------------------------------------------------------------------
Three months ended March 31, 2012
(restated)
--------------------------------------------------------------
--------------------------------------------------------------
Interactive
Techno- Head
logies and office
Communi- and Inter-
cations segments Total
--------------------------------------------------------------
Revenues 36.6 $ (36.4) $ 1,061.6
Employee costs 23.8 16.1 277.6
Purchase of goods and
services 9.8 (57.8) 463.7
--------------------------------------------------------------
Operating income(1) 3.0 5.3 320.3
Amortization 142.0
Financial expenses 85.4
Gain on valuation and
translation of
financial instruments (81.9)
Restructuring of
operations, impairment
of assets and other
special items 1.1
Impairment of goodwill 14.5
Loss on debt refinancing 7.3
--------------------------------------------------------------
Income before income
taxes $ 151.9
--------------------------------------------------------------
Additions to property,
plant and equipment 1.1 $ 0.5 $ 193.2
Additions to intangible
assets - (0.5) 22.5
--------------------------------------------------------------
(1) The Chief Executive Officer uses operating income as the measure of
profit to assess the performance of each segment. Operating income is
referred as a non-IFRS measure and is defined as net income before
amortization, financial expenses, gain on valuation and translation of
financial instruments, restructuring of operations, impairment of
assets and other special items, impairment of goodwill, loss on debt
refinancing and income taxes.
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
(in millions of Canadian dollars)
(unaudited)
----------------------------------------------------------------------------
Equity attributable to shareholders
--------------------------------------------------------------
Equity Accumulated
component other com-
of prehensive
Capital Contributed convertible Retained income
stock surplus debentures earnings (loss)
----------------------------------------------------------------------------
Balance as of
December 31,
2011, as
previously
reported $ 339.5 $ 0.9 $ -$ 1,077.2 $ 8.6
Changes in
accounting
policies - - - 48.4 (49.6)
----------------------------------------------------------------------------
Balance as of
December 31,
2011, as
restated 339.5 0.9 - 1,125.6 (41.0)
Net income - - - 71.4 -
Other
comprehensive
income - - - - 8.9
Issuance of
shares of a
subsidiary 3.6 1.5 - - -
Repurchase of
Class B
shares (0.1) - - (0.3) -
Dividends - - - (3.2) -
----------------------------------------------------------------------------
Balance as of
March 31,
2012 343.0 2.4 - 1,193.5 (32.1)
Net income - - - 89.7 -
Other
comprehensive
loss - - - - (7.8)
Repurchase of
Class B
shares (7.9) - - (30.0) -
Acquisition of
non-
controlling
interests - (0.1) - (619.2) (10.4)
Issuance of
convertible
debentures - - 398.3 - -
Dividends - - - (9.4) -
----------------------------------------------------------------------------
Balance as of
December 31,
2012 335.1 2.3 398.3 624.6 (50.3)
Net income - - - 35.6 -
Other
comprehensive
loss - - - - (18.1)
Repurchase of
Class B
shares (1.2) - - (5.0) -
Dividends - - - (3.1) -
----------------------------------------------------------------------------
Balance as of
March 31,
2013 $ 333.9 $ 2.3 $ 398.3$ 652.1 $ (68.4)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Equity
attributable
to non-
controlling Total
interests equity
-----------------------------------------------
Balance as of
December 31,
2011, as
previously
reported $ 1,444.4 $ 2,870.6
Changes in
accounting
policies (1.5) (2.7)
-----------------------------------------------
Balance as of
December 31,
2011, as
restated 1,442.9 2,867.9
Net income 41.8 113.2
Other
comprehensive
income 7.4 16.3
Issuance of
shares of a
subsidiary - 5.1
Repurchase of
Class B
shares - (0.4)
Dividends (11.3) (14.5)
-----------------------------------------------
Balance as of
March 31,
2012 1,480.8 2,987.6
Net income 52.4 142.1
Other
comprehensive
loss (2.3) (10.1)
Repurchase of
Class B
shares - (37.9)
Acquisition of
non-
controlling
interests (870.3) (1,500.0)
Issuance of
convertible
debentures - 398.3
Dividends (29.3) (38.7)
-----------------------------------------------
Balance as of
December 31,
2012 631.3 1,941.3
Net income 10.1 45.7
Other
comprehensive
loss (5.9) (24.0)
Repurchase of
Class B
shares - (6.2)
Dividends (6.2) (9.3)
-----------------------------------------------
Balance as of
March 31,
2013 $ 629.3 $ 1,947.5
-----------------------------------------------
-----------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars)
(unaudited) Three months ended March 31
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
(restated)
Cash flows related to operating activities
Net income $ 45.7 $ 113.2
Adjustments for:
Amortization of property, plant and
equipment 126.4 108.9
Amortization of intangible assets 36.3 33.1
Gain on valuation and translation of
financial instruments (7.7) (81.9)
Impairment of goodwill - 14.5
Loss on debt refinancing - 7.3
Amortization of financing costs and
long-term debt discount 3.1 3.7
Deferred income taxes (3.3) 33.2
Other 2.2 1.9
--------------------------------
202.7 233.9
Net change in non-cash balances related to
operating activities (79.1) 2.6
--------------------------------
Cash flows provided by operating activities 123.6 236.5
--------------------------------
Cash flows related to investing activities
Additions to property, plant and equipment (154.8) (193.2)
Additions to intangible assets (15.6) (22.5)
Proceeds from disposals of assets 1.2 1.2
Other 0.4 -
--------------------------------
Cash flows used in investing activities (168.8) (214.5)
--------------------------------
Cash flows related to financing activities
Net change in bank indebtedness (0.3) (2.6)
Net change under revolving facilities (5.7) 1.3
Issuance of long-term debt, net of
financing fees - 787.6
Repayments of long-term debt (5.5) (518.1)
Settlement of hedging contracts (24.8) (40.5)
Issuance of Class B shares - 3.6
Repurchase of Class B shares (6.2) (0.4)
Dividends paid to non-controlling
shareholders (6.2) (11.3)
--------------------------------
Cash flows (used in) provided by financing
activities (48.7) 219.6
--------------------------------
Net change in cash and cash equivalents (93.9) 241.6
Cash and cash equivalents at beginning of
period 228.7 143.5
--------------------------------
Cash and cash equivalents at end of period $ 134.8 $ 385.1
--------------------------------
Cash and cash equivalents consist of
Cash $ 11.5 $ 7.9
Cash equivalents 123.3 377.2
--------------------------------
$ 134.8 $ 385.1
--------------------------------
--------------------------------
Interest and taxes reflected as operating
activities
Cash interest payments $ 24.6 $ 21.4
Cash income tax payments (net of refunds) 36.3 5.1
--------------------------------
--------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited) March 31 December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2013 2012
----------------------------------------------------------------------------
(restated)
Assets
Current assets
Cash and cash equivalents $ 134.8 $ 228.7
Accounts receivable 542.5 578.7
Income taxes 30.5 10.6
Inventories 252.0 255.5
Prepaid expenses 56.0 38.0
----------------------------------
1,015.8 1,111.5
Non-current assets
Property, plant and equipment 3,392.1 3,405.8
Intangible assets 932.0 956.7
Goodwill 3,372.8 3,371.6
Derivative financial instruments 51.8 35.7
Deferred income taxes 19.2 23.9
Other assets 105.0 102.6
----------------------------------
7,872.9 7,896.3
----------------------------------
Total assets $ 8,888.7 $ 9,007.8
----------------------------------
----------------------------------
Liabilities and equity
Current liabilities
Bank indebtedness $ 1.0 $ 1.3
Accounts payable and accrued charges 669.1 804.5
Provisions 37.5 45.9
Deferred revenue 295.0 289.0
Income taxes 39.9 33.9
Derivative financial instruments 118.8 28.5
Current portion of long-term debt 22.2 22.2
----------------------------------
1,183.5 1,225.3
Non-current liabilities
Long-term debt 4,556.6 4,507.8
Derivative financial instruments 132.6 270.1
Other liabilities 483.2 469.2
Deferred income taxes 585.3 594.1
----------------------------------
5,757.7 5,841.2
Equity
Capital stock 333.9 335.1
Contributed surplus 2.3 2.3
Equity component of convertible
debentures 398.3 398.3
Retained earnings 652.1 624.6
Accumulated other comprehensive loss (68.4) (50.3)
----------------------------------
Equity attributable to shareholders 1,318.2 1,310.0
Non-controlling interests 629.3 631.3
----------------------------------
1,947.5 1,941.3
----------------------------------
Total liabilities and equity $ 8,888.7 $ 9,007.8
----------------------------------
----------------------------------
Contacts: Jean-Francois Pruneau Senior Vice President and Chief
Financial Officer Quebecor Inc. and Quebecor Media
Inc.jean-francois.pruneau@quebecor.com 514 380-4144 Martin Tremblay
Vice President, Public Affairs Quebecor Media
Inc.martin.tremblay@quebecor.com 514 380-1985
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
