MONTREAL, May 7, 2015 /CNW Telbec/ - Quebecor Inc.
("Quebecor" or "the Corporation") today reported its consolidated
financial results for the first quarter of 2015 and announced
a 40% increase in its quarterly dividend. Quebecor consolidates the
financial results of its Quebecor Media Inc.
("Quebecor Media") subsidiary, in which it holds a 75.4%
interest.
Highlights
First quarter 2015
- Revenues: $948.6 million, up
$50.8 million (5.7%) from first
quarter 2014.
- Adjusted operating income1: $339.0 million, up $4.3 million (1.3%).
- Net income attributable to shareholders: $29.4 million ($0.24 per basic share) in first
quarter 2015, compared with $39.1 million ($0.32 per basic share) in the same period of
2014, down $9.7 million
($0.08 per basic share).
- Adjusted income from continuing operations2:
$40.8 million ($0.33 per basic share) in first
quarter 2015, compared with $44.3 million ($0.36 per basic share) in the same period of
2014, down $3.5 million
($0.03 per basic share).
- Quarterly dividend on the Corporation's Class A Multiple Voting
Shares ("Class A Shares") and Class B Subordinate Voting Shares
("Class B Shares") increases 40% from $0.025 to $0.035
per share.
- Telecommunications segment's revenues up $38.4 million (5.3%); its adjusted operating
income up $7.7 million (2.3%)
despite the unfavourable impact of one-time items totalling
$4.6 million.
Videotron Ltd. ("Videotron") grows its mobile telephony
revenues by $27.7 million or
44.9% and its Internet access revenues by $13.4 million or 6.4%.
- Videotron's average monthly revenue per user ("ARPU") up
$10.24 (8.4%) from $121.72 in first quarter 2014 to
$131.96 in first quarter 2015,
including a $6.01 (15.0%) increase
for mobile telephony service, the strongest quarterly growth since
the service was launched in 2010.
- Revenue-generating units3: net increase of 28,000 in
first quarter 2015 compared with 17,700 in the same period
of 2014. During the 12-month period ended March 31, 2015, the total number of
revenue-generating units increased by 247,400 (4.7%),
including increases of 139,600 subscriber connections to the mobile
telephone service and 117,000 subscriptions to the
over-the-top video service.
- On March 25, 2015, the
Competition Bureau approved the sale of Quebecor Media's
English-language newspaper businesses in Canada. The transaction closed on April 13, 2015 for a total cash consideration of
$305.5 million, consisting of
the $316.0 million selling price
less $10.5 million for customary
adjustments and adjustments related to the sale of real estate
properties by Sun Media Corporation.
- On April 12, 2015, TVA Group Inc.
("TVA Group") closed the acquisition of 14 magazines, 3 websites
and custom publishing contracts from Transcontinental Inc.
("Transcontinental") for a cash consideration of $55.5 million. The transaction was approved
by the Competition Bureau on March 2, 2015.
- On March 6, 2015, the Québec
Court of Appeal ruled in favour of Videotron and TVA Group, and
ordered Bell ExpressVu Limited Partnership ("Bell ExpressVu"), a
subsidiary of Bell Canada, to pay
them compensation totalling $135.9
million for having neglected to implement an appropriate
security system to prevent piracy of the signals broadcast by its
satellite television service between 1999 and 2005, thereby harming
its competitors and broadcasters. Early in May 2015, Bell ExpressVu applied for leave to
appeal the judgment to the Supreme Court of Canada. A decision on
its application is pending.
__________________________
1 |
See "Adjusted operating income" under
"Definitions." |
2 |
See "Adjusted income from continuing operations" under
"Definitions." |
3 |
The sum of subscriptions to the cable television, cable
Internet access and over-the-top video services, plus subscriber
connections to the cable and mobile telephony services. |
"Quebecor grew its revenues by $50.8 million (5.7%) and its adjusted
operating income by $4.3 million
(1.3%) in the first quarter of 2015," noted Pierre Dion,
President and Chief Executive Officer of Quebecor. "Once again, the
improvement was due to the excellent performance of the
Telecommunications segment's operations.
"During the first quarter, we closed the sale of
our English-language newspaper businesses in Canada for a total cash consideration
of $305.5 million. The sale
scaled back our investment in the newspaper industry, in keeping
with our strategy of refocusing our operations on our main growth
businesses. We also pursued our revenue-diversification and
consolidation strategy in our Media segment by closing the
acquisition of magazines from Transcontinental."
"In the first quarter of 2015, the
Telecommunications segment generated strong returns once again,"
commented Manon Brouillette,
President and Chief Executive Officer of Videotron. "We increased
our revenues by $38.4 million
(5.3%). Our adjusted operating income was up $7.7 million (2.3%), despite the
$4.6 million combined
unfavourable impact of one-time items. These results were driven
by, among other things, the solid performance of our mobile
telephony and Internet access services.
"It is worth noting that the mobile telephony
service's ARPU increased by $6.01 per
month (15.0%) in the first quarter of 2015, a historic high
since the service was launched in 2010. This success stems from our
optimal combination of plans, mobile content and devices on our
ultra-powerful network, an LTE network that covers nearly 90% of
Québec's population and supports speeds of up
to 150 Mbps. Videotron's total ARPU for all services
increased by $10.24 (8.4%) in the
first quarter of 2015.
"Videotron increased its revenue-generating units
by 247,400 over the 12-month period ended March 31, 2015. The mobile telephony
service added 139,600 subscriber connections, including 29,300
in the first quarter of 2015, compared with 18,200 in the
same period of 2014. The Club illico over-the-top video
service, which still offers the largest selection of unlimited,
on-demand French-language content in Canada, added 117,000 customers."
On April 7, 2015, the
Québec City amphitheatre officially became the Videotron Centre.
Videotron is proud to associate its name and brands with the future
Québec City icon. "The relationship between the Québec City arena
and Videotron is a natural partnership which reflects our
attachment to the city," said Manon
Brouillette. "Meanwhile, for the 10th consecutive year,
Videotron was rated the most respected telecommunications provider
in Québec by the Léger survey, and for the second consecutive year
it was ranked the most influential telecommunications brand in
Québec on the 2015 Ipsos-Infopresse index. We are very proud of
these achievements."
"Since the beginning of 2015, the Media segment has
scored a string of mass-audience successes," said Julie Tremblay, President and Chief Executive
Officer of Media Group. "The sixth and final game of the Montréal
Canadiens-Ottawa Senators playoff series, played on April 26, 2015, was seen by a record
audience of 1,725,000 on the TVA Sports specialty channel, a
40.3% market share. Since TVA Sports began carrying National
Hockey League hockey, its subscriber base has swelled to more
than 2.0 million. In our variety programming,
season 3 of La Voix on the TVA Network set new ratings
records; the weekly galas have drawn an average of
2,787,000 viewers for an average 59% market share.
"In the growing digital media field, the
journaldemontreal.com site saw a 72% increase in traffic on
all platforms between July 2014
and February 2015, including a
142% increase on cell phones and tablets, compared with a 2%
decline for its main rival's platforms. The larger number of visits
to the Journal de Montréal website was due in
large part to heavier traffic from mobile devices. The print
editions of Le Journal de Montréal, Le Journal de Québec and
24 heures are very strongly positioned in their respective
markets and are read by nearly one out of two adults in the
Montréal and Québec City metropolitan areas, according to the
2014 PMB and NADbank surveys."
In the Sports and Entertainment segment, on
April 2, 2015, Quebecor Media
announced an 8-year strategic partnership with AEG Facilities,
the world leader in sports and entertainment venue management. The
AEG Live division will support the Sports and Entertainment segment
in booking events, shows and tours for the Videotron Centre, which
is slated to open officially on September 11, 2015. On April 28, 2015, the Sports and
Entertainment segment and Labatt Breweries of Canada announced a
partnership designating Labatt as the Videotron Centre's official
beer supplier.
Finally, the Videotron Centre's program for its
first month was unveiled in April and the first scheduled events, a
preseason game between the Montréal Canadiens and the Pittsburgh
Penguins, and a Metallica concert, are already sold out. Other
events in September will include an opening gala, two Remparts de
Québec hockey games, a Madonna concert, a show by Rock et
Belles Oreilles, and a boxing card.
"We want to emphasize that the 40% increase in the
quarterly dividend on Class A Shares and Class B Shares reflects
confidence on the part of the Board of Directors and the management
team in the Corporation's future growth and solid financial
position," said Jean-François Pruneau, Senior Vice President
and Chief Financial Officer of Quebecor. "It should also be noted
that the Board will review the dividend policy annually on the
basis of anticipated future cash flows."
"In the first months of 2015, Quebecor continued
focusing on implementation of its business plan in its growth
sectors, including mobility, Internet services, business services
and its new Sports and Entertainment segment," said Pierre Dion. "It remains strongly positioned to
achieve its development, growth and profitability objectives going
forward."
Table 1
Quebecor first quarter financial highlights, 2011 to
2015
(in millions of Canadian dollars, except per share data) |
|
2015 |
2014 |
20131 |
20121 |
20111 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
948.6 |
$ |
897.8 |
$ |
877.3 |
$ |
869.7 |
$ |
797.1 |
Adjusted operating
income |
|
339.0 |
|
334.7 |
|
312.5 |
|
304.3 |
|
264.0 |
Income (loss) from
continuing operations attributable to
shareholders |
|
27.1 |
|
37.5 |
|
(4.6) |
|
69.3 |
|
26.2 |
Net income (loss)
attributable to shareholders |
|
29.4 |
|
39.1 |
|
(6.5) |
|
71.4 |
|
33.2 |
Adjusted income from
continuing operations |
|
40.8 |
|
44.3 |
|
32.3 |
|
35.4 |
|
27.7 |
Per basic share: |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations attributable to shareholders |
|
0.22 |
|
0.31 |
|
(0.04) |
|
0.55 |
|
0.20 |
|
Net income (loss) attributable to
shareholders |
|
0.24 |
|
0.32 |
|
(0.05) |
|
0.56 |
|
0.26 |
|
Adjusted income from continuing
operations |
|
0.33 |
|
0.36 |
|
0.26 |
|
0.28 |
|
0.22 |
1 |
The financial figures for 2011 to 2013 have been restated to
reflect changes in accounting policy for the accounting of
convertible debentures. |
Discontinued operations
On April 13, 2015,
Quebecor Media closed the sale of its English-language newspaper
businesses in Canada - more
than 170 newspapers and publications, the Canoe portal in
English Canada, and 8 printing plants, including the Islington, Ontario plant - for a total cash
consideration of $305.5 million,
consisting of the selling price of $316.0 million less $10.5 million for the customary adjustments
and adjustments related to real estate properties sold by Sun Media
Corporation prior to closing. The transaction was approved by the
Competition Bureau on March 25, 2015.
On February 13, 2015, Quebecor Media
announced the discontinuation of the operations of the
English-language news and opinion specialty channel SUN News
General Partnership. On September 2, 2014, Quebecor Media
closed the sale of its Nurun Inc. ("Nurun") subsidiary to Publicis
Groupe for a cash consideration of $125.0 million, less disposed-of cash in the
amount of $18.1 million. An
amount of $8.2 million was also
received in connection with certain adjustments as part of the
transaction. The results of operations and cash flows related to
those businesses, as well as the $41.5 million gain on the sale of Nurun in
2014, were reclassified as discontinued operations in the
consolidated statements of income and cash flows.
2015/2014 first quarter comparison
Revenues: $948.6 million, an increase of $50.8 million (5.7%).
- Revenues increased in Telecommunications ($38.4 million or 5.3% of segment revenues),
Media ($15.4 million or 8.4%) and Sports
and Entertainment ($3.7 million
or 26.4%).
Adjusted operating income: $339.0 million, a $4.3 million (1.3%) increase.
- Adjusted operating income increased in Telecommunications
($7.7 million or 2.3% of segment
adjusted operating income). Favourable variances were recorded in
Sports and Entertainment ($0.6 million) and Media ($0.3 million).
- There was an unfavourable variance at Head Office
(-$4.3 million), resulting
mainly from the unfavourable variance in the stock option
expense.
- The change in the fair value of Quebecor Media stock options
resulted in a $1.9 million
favourable variance in the stock-based compensation charge in the
first quarter of 2015 compared with the same period of 2014.
The change in the fair value of Quebecor stock options and the
impact of various transactions on the options issued under this
program resulted in a $6.0 million unfavourable variance in the
Corporation's stock-based compensation charge in the first quarter
of 2015.
Net income attributable to shareholders:
$29.4 million ($0.24 per basic share) in the first quarter
of 2015, compared with $39.1 million ($0.32 per basic share) in the same period of
2014, an unfavourable variance of $9.7 million ($0.08 per basic share).
- The unfavourable variance was due primarily to:
-
- $20.7 million increase in
amortization charge;
- $10.3 million unfavourable
variance in the charge for restructuring of operations, impairment
of assets and other special items;
- $8.0 million unfavourable
variance in losses and gains on valuation and translation of
financial instruments, including the impact of a $9.0 million unfavourable variance in
convertible debentures (without any tax consequences).
Partially offset by:
- $20.4 million favourable
variance in gains and losses on debt refinancing;
- $6.3 million decrease in
financial expenses;
- $4.3 million increase in
adjusted operating income.
Adjusted income from continuing
operations: $40.8 million
($0.33 per basic share) in the first
quarter of 2015, compared with $44.3 million ($0.36 per basic share) in the same period of
2014, a decrease of $3.5 million
($0.03 per basic share).
Financial transactions
- On April 10, 2015, Videotron
completed the redemption of all the 6.375% Senior Notes maturing on
December 15, 2015, in the
aggregate principal amount of US$175.0 million, at a redemption price
equal to 100% of the principal amount, and unwound the related
hedges in an asset position. The redemption notice was issued on
March 11, 2015.
- On March 20, 2015, TVA Group
completed a rights offering whereby it received net proceeds
totalling approximately $110.0 million from the issuance of
19,434,629 Class B Shares, non-voting, participating, without par
value ("Class B Non-Voting Shares") of TVA Group. Under
the rights offering, Quebecor Media subscribed for
17,300,259 Class B Non-Voting Shares of TVA Group at
a total cost of $97.9 million.
As a result, its total interest in TVA Group's equity increased
from 51.5% to 68.4%.
Dividend
On May 6, 2015,
the Board of Directors of Quebecor declared a quarterly dividend of
$0.035 per share on its Class A
Shares and Class B Shares, payable on June 16, 2015 to shareholders of record
at the close of business on May 22,
2015. 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 2015 results, please refer to the Management Discussion and
Analysis and 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 first quarter 2015 results on May 7,
2015, 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 62079#. A tape recording of the call will be
available from May 7 to July 9, 2015
by dialling 1 877 293-8133, conference
number 1178414, access code for participants 62079#. 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 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, 2014.
The forward-looking statements in this press
release reflect Quebecor's expectations as of May 7, 2015, 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.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best-performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high-quality, multiplatform,
convergent products and services.
Quebecor (TSX:QBR.A) (TSX:QBR.B) is
headquartered in Québec. It holds a 75.36% interest in Quebecor
Media, which employs close to 11,300 people in Canada.
A family business founded in 1950, Quebecor is
strongly committed to the community. Every year, it actively
supports people working with more than 400 organizations in
the vital fields of culture, health, education, the environment,
and entrepreneurship.
Visit our website: www.quebecor.com
Follow us on Twitter:
twitter.com/QuebecorMedia
DEFINITIONS
Adjusted Operating Income
In its analysis of operating results, the
Corporation defines adjusted operating income, as reconciled to net
income under International Financial Reporting Standards ("IFRS"),
as net income before depreciation and amortization, financial
expenses, (loss) gain 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 income from discontinued operations. Adjusted
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
adjusted 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 depreciation/amortization of tangible and intangible
assets and is unaffected by the capital structure or investment
activities of the Corporation and its segments.
Adjusted 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. The Corporation's definition of
adjusted operating income may not be the same as similarly titled
measures reported by other companies.
Table 2 below provides a reconciliation of
adjusted operating income to net income as disclosed in Quebecor's
condensed consolidated financial statements.
Table 2
Reconciliation of the adjusted 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 |
|
2015 |
2014 |
|
|
|
|
|
Adjusted operating (loss) income: |
|
|
|
|
|
Telecommunications |
$ |
343.3 |
$ |
335.6 |
|
Media |
|
(5.9) |
|
(6.2) |
|
Sports and Entertainment |
|
(0.1) |
|
(0.7) |
|
Head Office |
|
1.7 |
|
6.0 |
|
|
339.0 |
|
334.7 |
Depreciation and amortization |
|
(182.4) |
|
(161.7) |
Financial expenses |
|
(87.8) |
|
(94.1) |
(Loss) gain on valuation and
translation of financial Instruments |
|
(5.1) |
|
2.9 |
Restructuring of operations,
impairment of assets and other special items |
|
(11.4) |
|
(1.1) |
Gain (loss) on debt refinancing |
|
1.7 |
|
(18.7) |
Income taxes |
|
(19.7) |
|
(16.3) |
Income from discontinued
operations |
|
1.6 |
|
1.4 |
Net income |
$ |
35.9 |
$ |
47.1 |
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 (loss) gain on valuation and translation of
financial instruments, charge for restructuring of operations,
impairment of assets and other special items, gain (loss) on debt
refinancing, net of income tax related to adjustments and net
income attributable to non-controlling interests related to
adjustments, and before income from discontinued operations
attributable to shareholders. 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 uses adjusted income from continuing
operations to analyze trends in the performance of its businesses.
The above-listed items are excluded from the calculation of this
measure because they impair the comparability of the financial
results. Adjusted income from continuing operations is more
representative for the purpose of forecasting income. The
Corporation'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 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 |
|
2015 |
2014 |
|
|
|
|
|
Adjusted income from continuing operations |
$ |
40.8 |
$ |
44.3 |
(Loss) gain on valuation and translation of
financial instruments |
|
(5.1) |
|
2.9 |
Restructuring of operations, impairment of assets
and other special items |
|
(11.4) |
|
(1.1) |
Gain (loss) on debt refinancing |
|
1.7 |
|
(18.7) |
Income taxes related to
adjustments1 |
|
(1.0) |
|
7.3 |
Net income attributable to non-controlling
interest related to adjustments |
|
2.1 |
|
2.8 |
Discontinued operations |
|
2.3 |
|
1.6 |
Net income attributable to
shareholders |
$ |
29.4 |
$ |
39.1 |
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
ARPU is an industry metric that the Corporation
uses to measure monthly revenues from its cable television,
Internet access, cable and mobile telephony and over-the-top video
services, per average basic 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 revenues from its cable
television, Internet access, cable and mobile telephony and
over-the-top video services 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 |
|
2015 |
|
2014 |
|
|
|
|
Revenues |
$ |
948.6 |
$ |
897.8 |
|
|
Employee costs |
|
186.8 |
|
165.8 |
Purchase of goods and services |
|
422.8 |
|
397.3 |
Depreciation and amortization |
|
182.4 |
|
161.7 |
Financial expenses |
|
87.8 |
|
94.1 |
Loss (gain) on valuation and
translation of financial instruments |
|
5.1 |
|
(2.9) |
Restructuring of operations,
impairment of assets and other special items |
|
11.4 |
|
1.1 |
(Gain) loss on debt refinancing |
|
(1.7) |
|
18.7 |
Income before income taxes |
|
54.0 |
|
62.0 |
Income taxes (recovery): |
|
|
|
|
|
Current |
|
36.3 |
|
6.2 |
|
Deferred |
|
(16.6) |
|
10.1 |
|
|
19.7 |
|
16.3 |
Income from continuing
operations |
|
34.3 |
|
45.7 |
Income from discontinued
operations |
|
1.6 |
|
1.4 |
Net income |
$ |
35.9 |
$ |
47.1 |
Income from continuing operations
attributable to |
|
|
Shareholders |
$ |
27.1 |
$ |
37.5 |
|
Non-controlling
interests |
|
7.2 |
|
8.2 |
Net income attributable to |
|
|
Shareholders |
$ |
29.4 |
$ |
39.1 |
|
Non-controlling
interests |
|
6.5 |
|
8.0 |
|
|
Earnings per share attributable to
shareholders |
|
|
Basic: |
|
|
|
From continuing
operations |
$ |
0.22 |
$ |
0.31 |
|
|
From discontinued
operations |
|
0.02 |
|
0.01 |
|
|
Net income |
|
0.24 |
|
0.32 |
|
Diluted: |
|
|
|
From continuing
operations |
|
0.22 |
|
0.28 |
|
|
From discontinued
operations |
|
0.02 |
|
0.01 |
|
|
Net income |
|
0.24 |
|
0.29 |
|
|
Weighted average number of shares
outstanding (in millions) |
|
122.9 |
|
123.1 |
Weighted average number of diluted
shares (in millions) |
|
123.2 |
|
144.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR INC. AND
ITS SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME |
|
(in millions of
Canadian dollars) |
(unaudited) |
Three months ended
March 31 |
|
2015 |
2014 |
|
|
Income from continuing
operations |
$ |
34.3 |
$ |
45.7 |
|
|
Other comprehensive loss from
continuing operations: |
|
|
Items that may be
reclassified to income: |
|
|
|
Cash flow hedges: |
|
|
|
|
Gain (loss) on valuation of
derivative financial instruments |
|
7.3 |
|
(11.6) |
|
|
|
Deferred income taxes |
|
(22.4) |
|
(7.7) |
|
|
|
Reclassification to
income: |
|
|
|
Gain related to cash
flow hedges |
|
(1.8) |
|
(10.8) |
|
|
Deferred income
taxes |
|
0.4 |
|
0.4 |
|
|
|
(16.5) |
|
(29.7) |
|
|
|
|
|
Comprehensive income from
continuing operations |
|
17.8 |
|
16.0 |
|
|
|
|
|
Income from discontinued
operations |
|
1.6 |
|
1.4 |
Other comprehensive income from
discontinued operations |
|
- |
|
1.9 |
Comprehensive income |
$ |
19.4 |
$ |
19.3 |
|
|
|
|
|
Comprehensive income from
continuing operations attributable to |
|
|
|
|
|
Shareholders |
$ |
14.8 |
$ |
15.1 |
|
Non-controlling
interests |
|
3.0 |
|
0.9 |
|
|
|
|
|
Comprehensive income attributable
to |
|
|
|
|
|
Shareholders |
$ |
17.2 |
$ |
18.1 |
|
Non-controlling
interests |
|
2.2 |
|
1.2
|
QUEBECOR INC. AND ITS
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
SEGMENTED INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian
dollars) |
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended March 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications |
|
Media |
|
Sports
and
Entertainment |
|
Head
office and
Intersegments |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
762.5 |
$ |
199.5 |
$ |
17.7 |
$ |
(31.1) |
$ |
948.6 |
|
|
|
|
|
|
|
|
|
|
|
Employee costs |
|
98.2 |
|
76.0 |
|
3.4 |
|
9.2 |
|
186.8 |
Purchase of goods and
services |
|
321.0 |
|
129.4 |
|
14.4 |
|
(42.0) |
|
422.8 |
Adjusted operating
income1 |
|
343.3 |
|
(5.9) |
|
(0.1) |
|
1.7 |
|
339.0 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
182.4 |
Financial expenses |
|
|
|
|
|
|
|
|
|
87.8 |
Loss on valuation and translatioof
financial instruments |
|
|
|
|
|
|
|
|
|
5.1 |
Restructuring of operations,
impairment of assetand other special items |
|
|
|
|
|
|
|
|
|
11.4 |
Gain on debt refinancing |
|
|
|
|
|
|
|
|
|
(1.7) |
Income before income
taxes |
|
|
|
|
|
|
|
|
$ |
54.0 |
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and
equipment |
$ |
161.6 |
$ |
7.1 |
$ |
1.1 |
$ |
- |
$ |
169.8 |
Additions to intangible
assets |
|
24.9 |
|
1.7 |
|
0.1 |
|
0.6 |
|
27.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications |
|
Media |
|
Sports
and
Entertainment |
|
Head
office and
Intersegments |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
$ |
724.1 |
$ |
184.1 |
$ |
14.0 |
$ |
(24.4) |
$ |
897.8 |
|
|
|
|
|
|
|
|
|
|
|
Employee costs |
|
93.0 |
|
65.5 |
|
2.3 |
|
5.0 |
|
165.8 |
Purchase of goods and
services |
|
295.5 |
|
124.8 |
|
12.4 |
|
(35.4) |
|
397.3 |
Adjusted operating
income1 |
|
335.6 |
|
(6.2) |
|
(0.7) |
|
6.0 |
|
334.7 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
161.7 |
Financial expenses |
|
|
|
|
|
|
|
|
|
94.1 |
Gain on valuation and translatioof
financial instruments |
|
|
|
|
|
|
|
|
|
(2.9) |
Restructuring of operations,
impairment of assetand other special items |
|
|
|
|
|
|
|
|
|
1.1 |
Loss on debt refinancing |
|
|
|
|
|
|
|
|
|
18.7 |
Income before income taxes |
|
|
|
|
|
|
|
|
$ |
62.0 |
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and
equipment |
$ |
143.3 |
$ |
9.2 |
$ |
1.9 |
$ |
- |
$ |
154.4 |
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible
assets |
|
68.9 |
|
1.9 |
|
- |
|
0.3 |
|
71.1 |
|
|
1 |
The Chief Executive Officer uses adjusted
operating income as the measure of profit to assess the performance
of each segment. Adjusted operating income is referred as a
non-IFRS measure and is defined as net income before depreciation
and amortization, financial expenses, loss (gain) on valuation and
translation of financial instruments, restructuring of operations,
impairment of assets and other special items, (gain) loss on debt
refinancing, income taxes and income from discontinued
operations.
|
QUEBECOR INC. AND ITS SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to shareholders |
|
|
|
|
|
|
Capital
stock |
|
Contributed
surplus |
|
Retained
earnings |
|
Accumulated
other
comprehensive
income (loss) |
|
Equity
attributable
to non-
controlling
interests |
|
Total
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013 |
$ |
328.9 |
$ |
2.3 |
$ |
291.4 |
$ |
(23.1) |
$ |
595.9 |
$ |
1,195.4 |
Net income |
|
- |
|
- |
|
39.1 |
|
- |
|
8.0 |
|
47.1 |
Other comprehensive loss |
|
- |
|
- |
|
- |
|
(21.0) |
|
(6.8) |
|
(27.8) |
Repurchase of Class B Shares |
|
(1.1) |
|
- |
|
(6.1) |
|
- |
|
- |
|
(7.2) |
Non-controlling interests acquisition |
|
- |
|
- |
|
(0.1) |
|
- |
|
0.1 |
|
- |
Dividends |
|
- |
|
- |
|
(3.1) |
|
- |
|
(6.3) |
|
(9.4) |
Balance as of March 31, 2014 |
|
327.8 |
|
2.3 |
|
321.2 |
|
(44.1) |
|
590.9 |
|
1,198.1 |
Net loss |
|
- |
|
- |
|
(69.2) |
|
- |
|
(2.3) |
|
(71.5) |
Other comprehensive loss |
|
- |
|
- |
|
- |
|
(20.3) |
|
(10.7) |
|
(31.0) |
Repurchase of Class B Shares |
|
(0.6) |
|
- |
|
(3.9) |
|
- |
|
- |
|
(4.5) |
Non-controlling interests acquisition |
|
- |
|
- |
|
- |
|
- |
|
(0.1) |
|
(0.1) |
Dividends |
|
- |
|
- |
|
(9.2) |
|
- |
|
(18.5) |
|
(27.7) |
Balance as of December 31, 2014 |
|
327.2 |
|
2.3 |
|
238.9 |
|
(64.4) |
|
559.3 |
|
1,063.3 |
Net income |
|
- |
|
- |
|
29.4 |
|
- |
|
6.5 |
|
35.9 |
Other comprehensive loss |
|
- |
|
- |
|
- |
|
(12.2) |
|
(4.3) |
|
(16.5) |
Issuance of shares of a subsidiary to
non-controlling interests |
|
- |
|
- |
|
- |
|
- |
|
12.1 |
|
12.1 |
Non-controlling interests acquisition |
|
- |
|
- |
|
14.1 |
|
- |
|
(14.1) |
|
- |
Dividends |
|
- |
|
- |
|
(3.1) |
|
- |
|
(6.2) |
|
(9.3) |
Balance as of March 31, 2015 |
$ |
327.2 |
$ |
2.3 |
$ |
279.3 |
$ |
(76.6) |
$ |
553.3 |
$ |
1,085.5 |
QUEBECOR INC. AND
ITS SUBSIDIARIES |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
|
(in millions of
Canadian dollars) |
(unaudited) |
Three months ended
March 31 |
|
2015 |
2014 |
|
|
|
|
|
Cash flows related to operating
activities |
|
|
|
|
|
Income from continuing
operations |
$ |
34.3 |
$ |
45.7 |
|
Adjustments for: |
|
|
|
|
|
|
Depreciation of property, plant
and equipment |
|
148.8 |
|
131.0 |
|
|
Amortization of intangible
assets |
|
33.6 |
|
30.7 |
|
|
Loss (gain) on valuation and
translation of financial instruments |
|
5.1 |
|
(2.9) |
|
|
Impairment of assets |
|
7.0 |
|
- |
|
|
(Gain) loss on debt
refinancing |
|
(1.7) |
|
18.7 |
|
|
Amortization of financing costs
and long-term debt discount |
|
2.0 |
|
3.0 |
|
|
Deferred income taxes |
|
(16.6) |
|
10.1 |
|
|
Other |
|
2.0 |
|
2.0 |
|
|
|
214.5 |
|
238.3 |
|
Net change in non-cash balances
related to operating activities |
|
(82.9) |
|
(83.7) |
Cash flows provided by continuing
operating activities |
|
131.6 |
|
154.6 |
Cash flows related to investing
activities |
|
|
|
|
|
Business acquisitions |
|
(35.5) |
|
(0.6) |
|
Additions to property, plant and
equipment |
|
(169.8) |
|
(154.4) |
|
Additions to intangible assets |
|
(27.3) |
|
(71.1) |
|
Proceeds from disposals of assets |
|
0.3 |
|
0.8 |
|
Other |
|
0.2 |
|
- |
Cash flows used in continuing
investing activities |
|
(232.1) |
|
(225.3) |
Cash flows related to financing
activities |
|
|
|
|
|
Net change in bank indebtedness |
|
(3.9) |
|
36.7 |
|
Net change under revolving
facilities |
|
(12.6) |
|
77.9 |
|
Repayments of long-term debt |
|
(6.5) |
|
(6.4) |
|
Settlement of hedging contracts |
|
(0.1) |
|
(116.0) |
|
Issuance of shares of a subsidiary to
non-controlling interests |
|
12.1 |
|
- |
|
Repurchase of Class B Shares |
|
- |
|
(7.2) |
|
Dividends paid to non-controlling
shareholders |
|
(6.2) |
|
(6.3) |
Cash flows used in continuing
financing activities |
|
(17.2) |
|
(21.3) |
|
|
|
|
|
Net change in cash and cash
equivalents from continuing operations |
|
(117.7) |
|
(92.0) |
|
|
|
|
|
Cash flows (used in) provided by
discontinued operations |
|
(5.6) |
|
20.9 |
|
|
|
|
|
Cash and cash equivalents at beginning
of period |
|
395.3 |
|
476.6 |
Cash and cash equivalents at end of
period |
$ |
272.0 |
$ |
405.5 |
|
|
|
|
|
Cash and cash equivalents consist
of |
|
|
|
|
|
Cash |
$ |
166.8 |
$ |
139.9 |
|
Cash equivalents |
|
105.2 |
|
265.6 |
|
$ |
272.0 |
$ |
405.5 |
|
|
|
|
|
|
|
|
|
|
Interest and taxes reflected as
operating activities |
|
|
|
|
|
Cash interest payments |
$ |
31.0 |
$ |
29.6 |
|
Cash income tax payments (net of
refunds) |
|
66.8 |
|
67.5 |
QUEBECOR INC. AND
ITS SUBSIDIARIES |
CONSOLIDATED
BALANCE SHEETS |
|
(in millions of
Canadian dollars) |
(unaudited) |
March 31 |
December 31 |
|
2015 |
2014 |
|
|
Assets |
|
|
|
Current assets |
|
|
Cash and cash equivalents |
$ |
272.0 |
$ |
395.3 |
|
Accounts receivable |
|
424.0 |
|
449.4 |
|
Income taxes |
|
8.7 |
|
6.7 |
|
Inventories |
|
228.7 |
|
212.2 |
|
Prepaid expenses |
|
60.7 |
|
38.0 |
|
Derivative financial
instruments |
|
17.3 |
|
- |
|
Assets held for sale |
|
380.1 |
|
398.1 |
|
|
1,391.5 |
|
1,499.7 |
|
|
Non-current assets |
|
|
Property, plant and equipment |
|
3,407.4 |
|
3,430.4 |
|
Intangible assets |
|
937.7 |
|
945.8 |
|
Goodwill |
|
2,737.4 |
|
2,714.6 |
|
Derivative financial
instruments |
|
714.0 |
|
400.9 |
|
Deferred income taxes |
|
9.3 |
|
7.8 |
|
Other assets |
|
90.5 |
|
79.3 |
|
|
7,896.3 |
|
7,578.8 |
Total assets |
$ |
9,287.8 |
$ |
9,078.5 |
|
|
Liabilities and equity |
|
|
|
Current liabilities |
|
|
Bank indebtedness |
$ |
1.3 |
$ |
5.2 |
|
Accounts payable and accrued
charges |
|
573.8 |
|
650.2 |
|
Provisions |
|
59.4 |
|
56.7 |
|
Deferred revenue |
|
287.0 |
|
283.0 |
|
Income taxes |
|
53.5 |
|
85.5 |
|
Derivative financial
instruments |
|
- |
|
0.9 |
|
Current portion of long-term
debt |
|
244.5 |
|
230.1 |
|
Liabilities held for sale |
|
79.2 |
|
97.9 |
|
|
1,298.7 |
|
1,409.5 |
|
|
Non-current liabilities |
|
|
Long-term debt |
|
5,313.6 |
|
5,048.2 |
|
Derivative financial
instruments |
|
126.8 |
|
101.9 |
|
Convertible debentures |
|
500.0 |
|
500.0 |
|
Other liabilities |
|
426.5 |
|
426.8 |
|
Deferred income taxes |
|
536.7 |
|
528.8 |
|
|
6,903.6 |
|
6,605.7 |
Equity |
|
|
Capital stock |
|
327.2 |
|
327.2 |
|
Contributed surplus |
|
2.3 |
|
2.3 |
|
Retained earnings |
|
279.3 |
|
238.9 |
|
Accumulated other comprehensive
loss |
|
(76.6) |
|
(64.4) |
|
Equity attributable to
shareholders |
|
532.2 |
|
504.0 |
|
Non-controlling interests |
|
553.3 |
|
559.3 |
|
|
1,085.5 |
|
1,063.3 |
|
|
|
Total liabilities and
equity |
$ |
9,287.8 |
$ |
9,078.5 |
SOURCE Quebecor