MONTRÉAL, July 30, 2015 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation") today
reported consolidated financial results for the second quarter
of 2015. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary, in which it
holds a 75.4% interest.
HIGHLIGHTS
Second quarter 2015
- Revenues: $960.9 million, up
$67.9 million (7.6%) compared with
the second quarter of 2014.
- Adjusted operating income1: $349.3 million, down $10.6
million (-2.9%).
- Net income attributable to shareholders: $72.1 million ($0.59 per basic share) compared with a net loss
attributable to shareholders of $54.8
million ($0.45 per basic
share) in the same period of 2014, a favourable variance of
$126.9 million ($1.04 per basic share) reflecting in part a
$98.7 million improvement in the loss
from discontinued operations.
- Adjusted income from continuing operations2:
$66.5 million ($0.54 per basic share) compared with $55.9 million ($0.45 per basic share) in the same period of
2014, an increase of $10.6 million
($0.09 per basic share).
- Telecommunications segment: revenues up $43.9 million (6.3%) and adjusted operating
income up $10.2 million (3.1%).
Videotron Ltd. ("Videotron") posts $29.5
million (44.2%) increase in revenues from mobile telephony,
$14.1 million (6.6%) increase in
revenues from Internet access services, and more than doubles
revenues from the Club illico over-the-top video service
($3.2 million increase).
- Videotron average monthly revenue per user
("ARPU")3: $133.71 in the
second quarter of 2015 compared with $123.61 in the same period of 2014, a
$10.10 (8.2%) increase led by a
$5.69 (13.8%) increase in mobile
telephony revenues.
- Revenue-generating units4: net increase of 12,900
units during the quarter; year-to-date net increase of 225,200
units (4.3%), including increases of 150,600 subscriber connections
to the mobile telephone service and 98,600 subscriptions to the
over-the-top video service.
- On July 20, 2015, Quebecor
officially filed an application for a professional hockey franchise
in Québec City under the National Hockey League ("NHL") expansion
process.
- On May 19, 2015, Quebecor
announced the sale of the retail operations of Archambault Group
Inc. ("Archambault Group") to Renaud‑Bray. The transaction includes
the 14 Archambault stores, the archambault.ca website, and
the English‑language Paragraphe Bookstore. The transaction is
subject to Competition Bureau approval.
- On May 12, 2015, after the
closing of Industry Canada's auction for 2500 MHz commercial mobile
spectrum, Quebecor Media announced that its Videotron subsidiary
was the successful bidder for 18 licences covering all of Québec as
well as the major urban centres in the rest of Canada, including Toronto, Ottawa, Calgary, Edmonton and Vancouver. The licences were acquired at a
total cost of $187.0 million.
___________________________
|
1
|
See "Adjusted
operating income" under "Definitions."
|
2
|
See "Adjusted
income from continuing operations" under "Definitions."
|
3
|
See "Average
monthly revenue per user" under "Definitions. "
|
4
|
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's revenues grew by $67.9 million or 7.6% in the second quarter
of 2015, mainly because of the Telecommunications segment's
performance," said Pierre Dion, President and CEO of Quebecor.
"Consumers continue to respond positively to the quality of the
segment's offerings. For example, subscriber connections to the
mobile network jumped 40,800 (6.2%) in the second quarter,
pushing the total over the 700,000 mark. Quebecor's adjusted
operating income was down 2.9% to $349.3 million,
reflecting major investments required for the pursuit of our
business plan, including the development of the TVA Sports
specialty channel and our new venue management activities at the
Videotron Centre in Québec City. Adjusted income from continuing
operations was up $10.6 million
or 19.0% in the second quarter of 2015.
"When it comes to development initiatives, Quebecor submitted an
application to the NHL on July 20, 2015 to bring a
professional hockey team to Québec City and move it into a home
built specifically for this purpose, the Videotron Centre. Our
ultimate objective is to make sports a major growth driver for
Quebecor, a value-added content offering that draws our customers
to live events which bring people together. All our actions over
the past few years converge toward this goal, among them launching
TVA Sports in 2011, making TVA Sports the NHL's
official French-language broadcaster until 2026, signing an
agreement with Québec City to manage the Videotron Centre for the
next 25 years and acquiring two Quebec Major Junior Hockey League
teams. We also plan to share our passion for sports by launching a
process to bring partners on board with our efforts to land a
professional hockey franchise.
"With respect to investments in mobile telephony, in
May 2015, Quebecor acquired eighteen
2500 MHz spectrum licences covering all of Québec and all of
Canada's major urban centres for a
total of $187.0 million. With
the AWS‑3 licences that we acquired earlier this year and the
700 MHz spectrum licences we acquired in 2014, the
Telecommunications segment is now well equipped to develop its
Québec network in the coming years. As for the licences we have
acquired outside Québec, at this point, we need to maximize the
return on those investments, which were made at a very advantageous
price and for which various options are available to us. We will
hold to a prudent, disciplined approach in order to maximize
returns while minimizing risk, particularly in light of Quebecor's
numerous projects currently in the development stage," Pierre Dion added.
"The Telecommunications segment posted strong returns again in
the second quarter of 2015, with a $43.9 million (6.3%)
increase in revenues and a $10.2 million (3.1%) increase in adjusted
operating income under market conditions that remain highly
competitive," commented Manon
Brouillette, President and CEO of Videotron. "Once again,
the growth was due to the excellent performance of our mobile
telephony and Internet access services.
"Total ARPU from all of Videotron's services was $133.71 in the second quarter of 2015. The
$10.10 (8.2%) increase was again
propelled by robust growth in mobile telephony, where ARPU was up
$5.69 (13.8%)."
"In the Media segment, TVA Sports became the most-watched sports
channel in Québec in its first season as the exclusive
French‑language broadcaster of the NHL playoffs," said Julie Tremblay, President and CEO of Media
Group. "The audience for the 12 playoff games in which the
Montreal Canadiens were involved averaged 1,577,000 viewers
and peaked at 2.5 million, for a 49.1% market share. Since the
addition of NHL games to its schedule, TVA Sports has significantly
increased its subscriber base to 2.1 million.
"In addition, on July 15, 2015,
Quebecor Content announced a long-term multiplatform agreement with
Sony Pictures Television Canada ("Sony Canada") which will
enable Videotron to offer a vast selection of movies and television
series on its over-the-top video service and give
TVA Group Inc.'s ("TVA Group") television channels
exclusive French-language broadcast rights to productions in Sony
Canada's catalogue."
"On the financial front, in July
2015, Videotron prepaid and withdrew the entirety of its
9.125% Senior Notes in the aggregate principal amount
of US$75.0 million and its 7.125% Senior Notes in the
aggregate principal amount of $300.0 million," said Jean‑François Pruneau,
Senior Vice President and CFO of Quebecor. "The redemptions were
financed from Videotron's new bank credit facility, which was
increased, extended and amended on very advantageous terms. These
opportunistic financing transactions will generate annual savings
of approximately $20,0 million
in interest on the debt.
"In the first half of 2015, therefore, Quebecor actively pursued
its business plan, focusing on areas with strong growth potential,"
said Pierre Dion. "The Corporation
remains well positioned to achieve its business development and
shareholder value-creation targets."
Finally, the Board of Directors of Quebecor announced today that
Érik Péladeau is rejoining the Board. Mr. Péladeau served as a
Director of the Corporation from 1988 to 2010 and as Vice Chairman
of the Board for much of that period. He is the eldest son of
Pierre Péladeau, the founder of Quebecor. Érik also spearheaded the
diversification of Quebecor's digital content offerings with the
creation of Quebecor Multimedia.
"The business philosophy and entrepreneurial spirit of
Quebecor's founder, Pierre Péladeau, have been the cornerstone of
the Corporation's success for more than 50 years," commented the
Board of Quebecor. "In this respect, Érik is a chip off the old
block. His vision and business experience will be valuable assets
for the Corporation."
"After devoting several years to my own company, I wanted to
make a contribution to Quebecor, the company founded by my father
where I worked for more than 28 years," said Érik Péladeau. "The
Board felt my experience could be useful and welcomed my offer. I
thank all of its members."
Érik Péladeau works at the company he founded, Groupe Lelys, a
printer of self-adhesive labels, and is actively involved in a
variety of philanthropic activities. He has also been a member of
the Board of Directors of Jean Coutu Group Inc.
Table
1
|
Quebecor second
quarter financial highlights, 2011 to 2015
|
(in millions of
Canadian dollars, except per share data)
|
|
2015
|
2014
|
20131
|
20121
|
20111
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
960.9
|
$
|
893.0
|
$
|
878.0
|
$
|
844.5
|
$
|
809.7
|
Adjusted operating
income
|
|
349.3
|
|
359.9
|
|
348.0
|
|
328.2
|
|
319.5
|
Income (loss) from
continuing operations attributable to shareholders
|
|
81.2
|
|
53.0
|
|
(125.9)
|
|
58.3
|
|
43.1
|
Net income (loss)
attributable to shareholders
|
|
72.1
|
|
(54.8)
|
|
(93.6)
|
|
65.5
|
|
54.0
|
Adjusted income from
continuing operations
|
|
66.5
|
|
55.9
|
|
44.8
|
|
39.9
|
|
47.7
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations attributable to shareholders
|
|
0.66
|
|
0.42
|
|
(1.01)
|
|
0.46
|
|
0.34
|
|
Net income (loss)
attributable to shareholders
|
|
0.59
|
|
(0.45)
|
|
(0.75)
|
|
0.52
|
|
0.42
|
|
Adjusted income from
continuing operations
|
|
0.54
|
|
0.45
|
|
0.36
|
|
0.32
|
|
0.37
|
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 May 19, 2015, Quebecor
announced the sale of the retail operations of Archambault Group to
Renaud‑Bray. The transaction includes the 14 Archambault
stores, the archambault.ca website, and the English-language
Paragraphe Bookstore. The transaction is subject to Competition
Bureau authorization. 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, less
disposed‑of cash in the amount of $1.9 million. 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 second quarter comparison
Revenue: $960.9 million, a $67.9 million (7.6%) increase.
- Revenues increased in Telecommunications ($43.9 million or 6.3% of segment revenues) and in
Media ($36.4 million or 17.9%).
- Revenues decreased in Sports and Entertainment ($0.5 million or -4.3%).
Adjusted operating income: $349.3 million, a $10.6 million (-2.9%) decrease.
- Adjusted operating income decreased in Media ($17.4 million or -60.6% of segment adjusted
operating income) and there was an unfavourable variance in Sports
and Entertainment ($2.0
million).
- Adjusted operating income increased in Telecommunications
($10.2 million or 3.1%).
- The change in the fair value of Quebecor Media stock options
resulted in a $0.4 million
unfavourable variance in the stock‑based compensation charge in the
second 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 $2.5 million
unfavourable variance in the Corporation's stock-based compensation
charge in the second quarter of 2015.
Net income attributable to shareholders: $72.1 million ($0.59 per basic share) in the second quarter of
2015, compared with a net loss attributable to shareholders in the
amount of $54.8 million
($0.45 per basic share) in the same
period of 2014, a favourable variance
of $126.9 million ($1.04 per basic share).
- The improvement was due primarily to:
- $132.0 million favourable
variance in the loss related to discontinued operations;
- $25.1 million favourable variance
in gain on valuation and translation of financial instruments;
- $24.6 million favourable variance
in income tax expense;
- $6.1 million decrease in
financial expenses.
- Partially offset by:
- $13.8 million unfavourable
variance in losses on debt refinancing;
- $10.6 million decrease in
adjusted operating income;
- $4.8 million increase in the
depreciation and amortization charge;
- $3.2 million increase in the
charge for restructuring of operations and other special
items.
In the second quarter of 2015, Quebecor Media recognized a
$30.0 million non-cash charge,
without any tax consequences, for impairment of goodwill in its
Media segment ($30.0 million,
without any tax consequences, in the second quarter of 2014),
in accordance with International Financial Reporting Standards
("IFRS") accounting valuation principles. The charge reflects the
impact of the transition to digital and challenging market
conditions in the newspaper industry.
Adjusted income from continuing operations: $66.5 million ($0.54 per basic share) in the second quarter
of 2015, compared with $55.9 million ($0.45 per basic share) in the same period of
2014, an increase of $10.6 million ($0.09 per basic share).
2015/2014 year-to-date comparison
Revenues: $1.89 billion, a
$120.8 million (6.8%)
increase.
- Revenues increased in Telecommunications ($82.8 million or 5.9% of segment revenues),
Media ($51.8 million or 13.4%),
and Sports and Entertainment ($3.2 million or 12.5%).
Adjusted operating income: $688.5 million, a $6.4 million (-0.9%) decrease.
- Adjusted operating income decreased in Media ($17.1 million or -76.0% of segment adjusted
operating income). There were unfavourable variances in Sports and
Entertainment ($1.4 million) and Head
Office ($5.7 million). The decrease
at Head Office was caused mainly by the unfavourable variance in
the fair value of stock options.
- Adjusted operating income increased in Telecommunications
($17.8 million or 2.7%).
- The change in the fair value of Quebecor Media stock options
resulted in a $1.3 million favourable
variance in the stock‑based compensation charge in the first half
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
an $8.5 million unfavourable variance
in the Corporation's stock-based compensation charge in the first
half of 2015.
Net income attributable to shareholders: $101.5 million ($0.83 per basic share) in the first half of 2015,
compared with a net loss attributable to shareholders in the amount
of $15.7 million ($0.13 per basic share) in the same period of
2014, a favourable variance of $117.2 million
($0.96 per basic share).
- The improvement was due primarily to:
- $127.7 million favourable
variance in the loss related to discontinued operations;
- $19.5 million favourable variance
in the income tax expense;
- $17.1 million favourable variance
in gain on valuation and translation of financial instruments;
- $12.3 million decrease in
financial expenses;
- $6.6 million favourable variance
in losses on debt refinancing.
- Partially offset by:
- $25.6 million increase in the
depreciation and amortization charge;
- $7.0 million increase in the
charge for restructuring of operations and other special
items;
- $6.4 million decrease in adjusted
operating income.
Adjusted income from continuing operations: $107.9 million in the first half of 2015
($0.88 per basic share), compared
with $101.0 million ($0.82 per basic share) in the same period of
2014, an increase of $6.9 million ($0.06 per basic share).
Financial transactions
- On July 16, 2015, Videotron
prepaid and withdrew the entirety of its outstanding 9.125% Senior
Notes issued on April 15, 2008 and
maturing on April 15, 2018, in the
aggregate principal amount of US$75.0
million, and unwound the hedges in an asset position. On the
same date, Videotron prepaid and withdrew the entirety of its
outstanding 7.125% Senior Notes issued on January 13, 2010 and maturing on January 15, 2020, in the aggregate principal
amount of $300.0 million.
- On June 16, 2015, Videotron
amended its $575.0 million secured
revolving bank credit facility to increase it to $615.0 million and extend its term by two years
to July 20, 2020. Videotron also
entered a new $350.0 million
unsecured revolving credit facility expiring on July 20, 2020. The terms and conditions of the
new unsecured credit facility are similar to those of Videotron's
secured revolving credit facility.
- 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,
and unwound the hedges in an asset position.
Dividend
On July 29, 2015, the Board of
Directors of Quebecor declared a quarterly dividend of $0.035 per share on its Class A Multiple
Voting Shares ("Class A Shares") and Class B
Subordinate Voting Shares ("Class B Shares"), payable on
September 8, 2015 to shareholders of record at the close
of business on August 14, 2015. This
dividend is designated an eligible dividend, as provided under
subsection 89(14) of the Canadian Income Tax Act and
its provincial counterpart.
Normal course issuer bid
On July 29, 2015, the Board of
Directors of Quebecor authorized the renewal of its normal course
issuer bid for a maximum of 500,000 Class A Shares
representing approximately 1.3% of issued and outstanding
Class A Shares, and for a maximum of
2,000,000 Class B Shares representing approximately 2.4%
of issued and outstanding Class B Shares as of
July 29, 2015.
The purchases will be made from August
13, 2015 to August 12, 2016,
at prevailing market prices, on the open market through the
facilities of the Toronto Stock Exchange, and will be made in
accordance with the requirements of said Exchange. All shares
purchased under the bid will be cancelled. As of July 29, 2015, 38,951,472 Class A Shares and
83,721,692 Class B Shares were issued and outstanding.
The average daily trading volume of the Class A Shares and Class
B Shares of the Corporation between January 1, 2015 and
June 30, 2015 was 604 Class A Shares and
203,850 Class B Shares. Consequently, the Corporation will be
authorized to purchase a maximum of 1,000 Class A Shares
and 50,962 Class B Shares during the same trading day, pursuant to
its normal course issuer bid.
The Corporation believes that the repurchase of these shares
under this normal course issuer bid is in the best interests of the
Corporation and its shareholders.
During the last 12 months, the Company has not purchased any
Class A Shares and has purchased 203,300 Class B Shares
at a weighted price of $31.19 per share.
Shareholders may obtain a copy of the Notice filed with the
Toronto Stock Exchange, without charge, by contacting the Office of
the Secretary of the Corporation at 514 380‑1994.
Detailed financial information
For a detailed analysis of Quebecor's second quarter 2015
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 second
quarter 2015 results on July 30,
2015, at 11:00 a.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 90393#. A tape recording of the call will be
available from July 30 to October 30,
2015 by dialling 1 877 293‑8133, conference
number 1182797, access code for participants 90393#. 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 investments (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 July 30, 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
12,000 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: www.twitter.com/QuebecorMedia
DEFINITIONS
Adjusted Operating Income
In its analysis of operating results, the Corporation defines
adjusted operating income, as reconciled to net income (loss)
under IFRS, as net income (loss) before depreciation and
amortization, financial expenses, gain on valuation and translation
of financial instruments, charge for restructuring of operations
and other special items, impairment of goodwill, loss on debt
refinancing, income taxes, and loss 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 (loss) 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 (loss) measure used in the condensed consolidated
financial statements
|
(in millions of
Canadian dollars)
|
|
Three months ended
June 30
|
Six months ended June
30
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
342.2
|
$
|
332.0
|
$
|
685.7
|
$
|
667.9
|
|
Media
|
|
11.3
|
|
28.7
|
|
5.4
|
|
22.5
|
|
Sports and
Entertainment
|
|
(4.1)
|
|
(2.1)
|
|
(4.2)
|
|
(2.8)
|
|
Head
Office
|
|
(0.1)
|
|
1.3
|
|
1.6
|
|
7.3
|
|
|
349.3
|
|
359.9
|
|
688.5
|
|
694.9
|
Depreciation and
amortization
|
|
(167.0)
|
|
(162.2)
|
|
(348.5)
|
|
(322.9)
|
Financial
expenses
|
|
(80.8)
|
|
(86.9)
|
|
(168.6)
|
|
(180.9)
|
Gain on valuation and
translation of financial instruments
|
|
45.9
|
|
20.8
|
|
40.8
|
|
23.7
|
Restructuring of
operations and other special items
|
|
(5.7)
|
|
(2.5)
|
|
(10.1)
|
|
(3.1)
|
Impairment of
goodwill
|
|
(30.0)
|
|
(30.0)
|
|
(30.0)
|
|
(30.0)
|
Loss on debt
refinancing
|
|
(13.8)
|
|
−
|
|
(12.1)
|
|
(18.7)
|
Income
taxes
|
|
(5.5)
|
|
(30.1)
|
|
(27.4)
|
|
(46.9)
|
Loss from
discontinued operations
|
|
(11.8)
|
|
(143.8)
|
|
(16.1)
|
|
(143.8)
|
Net income
(loss)
|
$
|
80.6
|
$
|
(74.8)
|
$
|
116.5
|
$
|
(27.7)
|
Adjusted Income from Continuing Operations
The Corporation defines adjusted income from continuing
operations, as reconciled to net income (loss) attributable to
shareholders under IFRS, as net income (loss) attributable to
shareholders before gain on valuation and translation of financial
instruments, charge for restructuring of operations and other
special items, impairment of goodwill, loss on debt refinancing,
net of income tax related to adjustments, and net income (loss)
attributable to non‑controlling interests related to adjustments,
before loss 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 net income (loss) attributable to
shareholders 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 (loss) attributable to shareholders
measure used in the condensed consolidated financial
statements
|
(in millions of
Canadian dollars)
|
|
Three months ended
June 30
|
Six months ended
June 30
|
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
Adjusted income from
continuing operations
|
$
|
66.5
|
$
|
55.9
|
$
|
107.9
|
$
|
101.0
|
Gain on valuation and
translation of financial instruments
|
|
45.9
|
|
20.8
|
|
40.8
|
|
23.7
|
Restructuring of
operations and other special items
|
|
(5.7)
|
|
(2.5)
|
|
(10.1)
|
|
(3.1)
|
Impairment of
goodwill
|
|
(30.0)
|
|
(30.0)
|
|
(30.0)
|
|
(30.0)
|
Loss on debt
refinancing
|
|
(13.8)
|
|
−
|
|
(12.1)
|
|
(18.7)
|
Income taxes related
to adjustments1
|
|
6.8
|
|
0.6
|
|
3.9
|
|
7.8
|
Net income
attributable to non‑controlling interest related to adjustments
|
|
11.5
|
|
8.2
|
|
12.3
|
|
10.9
|
Discontinued
operations
|
|
(9.1)
|
|
(107.8)
|
|
(11.2)
|
|
(107.3)
|
Net income (loss)
attributable to shareholders
|
$
|
72.1
|
$
|
(54.8)
|
$
|
101.5
|
$
|
(15.7)
|
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
June 30
|
|
Six months ended June
30
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
960.9
|
$
|
893.0
|
|
$
|
1,887.0
|
$
|
1,766.2
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
176.4
|
|
163.6
|
|
|
357.9
|
|
324.4
|
Purchase of goods and
services
|
|
435.2
|
|
369.5
|
|
|
840.6
|
|
746.9
|
Depreciation and
amortization
|
|
167.0
|
|
162.2
|
|
|
348.5
|
|
322.9
|
Financial
expenses
|
|
80.8
|
|
86.9
|
|
|
168.6
|
|
180.9
|
Gain on valuation and
translation of financial instruments
|
|
(45.9)
|
|
(20.8)
|
|
|
(40.8)
|
|
(23.7)
|
Restructuring of
operations and other special items
|
|
5.7
|
|
2.5
|
|
|
10.1
|
|
3.1
|
Impairment of
goodwill
|
|
30.0
|
|
30.0
|
|
|
30.0
|
|
30.0
|
Loss on debt
refinancing
|
|
13.8
|
|
-
|
|
|
12.1
|
|
18.7
|
Income before
income taxes
|
|
97.9
|
|
99.1
|
|
|
160.0
|
|
163.0
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
(12.6)
|
|
25.5
|
|
|
23.7
|
|
31.7
|
|
Deferred
|
|
18.1
|
|
4.6
|
|
|
3.7
|
|
15.2
|
|
|
5.5
|
|
30.1
|
|
|
27.4
|
|
46.9
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
92.4
|
|
69.0
|
|
|
132.6
|
|
116.1
|
Loss from
discontinued operations
|
|
(11.8)
|
|
(143.8)
|
|
|
(16.1)
|
|
(143.8)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
80.6
|
$
|
(74.8)
|
|
$
|
116.5
|
$
|
(27.7)
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
81.2
|
$
|
53.0
|
|
$
|
112.7
|
$
|
91.6
|
|
Non-controlling
interests
|
|
11.2
|
|
16.0
|
|
|
19.9
|
|
24.5
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
72.1
|
$
|
(54.8)
|
|
$
|
101.5
|
$
|
(15.7)
|
|
Non-controlling
interests
|
|
8.5
|
|
(20.0)
|
|
|
15.0
|
|
(12.0)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
$
|
0.66
|
$
|
0.42
|
|
$
|
0.92
|
$
|
0.74
|
|
|
From discontinued
operations
|
|
(0.07)
|
|
(0.87)
|
|
|
(0.09)
|
|
(0.87)
|
|
|
Net income
(loss)
|
|
0.59
|
|
(0.45)
|
|
|
0.83
|
|
(0.13)
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
0.26
|
|
0.23
|
|
|
0.56
|
|
0.52
|
|
|
From discontinued
operations
|
|
(0.07)
|
|
(0.74)
|
|
|
(0.09)
|
|
(0.74)
|
|
|
Net income
(loss)
|
|
0.19
|
|
(0.51)
|
|
|
0.47
|
|
(0.22)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
122.8
|
|
123.0
|
|
|
122.8
|
|
123.0
|
Weighted average
number of diluted shares (in millions)
|
|
143.9
|
|
143.8
|
|
|
143.9
|
|
143.8
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
(unaudited)
|
Three months ended
June 30
|
|
Six months ended June
30
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
92.4
|
$
|
69.0
|
|
$
|
132.6
|
$
|
116.1
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income from continuing operations:
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on
valuation of derivative financial instruments
|
|
(32.2)
|
|
3.3
|
|
|
(24.9)
|
|
(8.3)
|
|
|
|
Deferred income
taxes
|
|
8.3
|
|
8.4
|
|
|
(14.1)
|
|
0.7
|
|
|
|
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
(2.1)
|
|
-
|
|
|
(3.9)
|
|
(10.8)
|
|
|
Deferred income
taxes
|
|
(0.8)
|
|
-
|
|
|
(0.4)
|
|
0.4
|
|
|
(26.8)
|
|
11.7
|
|
|
(43.3)
|
|
(18.0)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
65.6
|
|
80.7
|
|
|
89.3
|
|
98.1
|
|
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
(11.8)
|
|
(143.8)
|
|
|
(16.1)
|
|
(143.8)
|
Other comprehensive
loss from discontinued operations
|
|
-
|
|
(2.1)
|
|
|
-
|
|
(0.2)
|
Comprehensive
income (loss)
|
$
|
53.8
|
$
|
(65.2)
|
|
$
|
73.2
|
$
|
(45.9)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income from continuing operations attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
60.9
|
$
|
61.9
|
|
$
|
80.2
|
$
|
78.0
|
|
Non-controlling
interests
|
|
4.7
|
|
18.8
|
|
|
9.1
|
|
20.1
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
51.8
|
$
|
(47.6)
|
|
$
|
69.0
|
$
|
(29.5)
|
|
Non-controlling
interests
|
|
2.0
|
|
(17.6)
|
|
|
4.2
|
|
(16.4)
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head
office
and Intersegments
|
|
|
|
|
|
|
|
Sports and Entertainment
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
Media
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
741.5
|
$
|
239.7
|
$
|
11.1
|
$
|
(31.4)
|
$
|
960.9
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
90.6
|
|
74.1
|
|
3.3
|
|
8.4
|
|
176.4
|
Purchase of goods and
services
|
|
308.7
|
|
154.3
|
|
11.9
|
|
(39.7)
|
|
435.2
|
Adjusted operating
income1
|
|
342.2
|
|
11.3
|
|
(4.1)
|
|
(0.1)
|
|
349.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
167.0
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
80.8
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(45.9)
|
Restructuring of
operations and other special items
|
|
|
|
|
|
|
|
|
|
5.7
|
Impairment of
goodwill
|
|
|
|
|
|
|
|
|
|
30.0
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
13.8
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
97.9
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
141.6
|
$
|
8.6
|
$
|
3.6
|
$
|
0.1
|
$
|
153.9
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
233.6
|
|
2.4
|
|
0.2
|
|
1.0
|
|
237.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head office and Intersegments
|
|
|
|
|
|
|
|
Sports and Entertainment
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
Media
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
697.6
|
$
|
203.3
|
$
|
11.6
|
$
|
(19.5)
|
$
|
893.0
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
85.7
|
|
65.6
|
|
2.5
|
|
9.8
|
|
163.6
|
Purchase of goods and
services
|
|
279.9
|
|
109.0
|
|
11.2
|
|
(30.6)
|
|
369.5
|
Adjusted operating
income1
|
|
332.0
|
|
28.7
|
|
(2.1)
|
|
1.3
|
|
359.9
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
162.2
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
86.9
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(20.8)
|
Restructuring of
operations and other special items
|
|
|
|
|
|
|
|
|
|
2.5
|
Impairment of
goodwill
|
|
|
|
|
|
|
|
|
|
30.0
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
99.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
155.9
|
$
|
5.9
|
$
|
0.9
|
$
|
0.3
|
$
|
163.0
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
186.2
|
|
3.1
|
|
-
|
|
0.4
|
|
189.7
|
|
|
|
|
|
Six months ended June
30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head office and Intersegments
|
|
|
|
|
|
|
|
Sports and Entertainment
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
Media
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,475.7
|
$
|
439.2
|
$
|
28.8
|
$
|
(56.7)
|
$
|
1,887.0
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
183.5
|
|
150.1
|
|
6.7
|
|
17.6
|
|
357.9
|
Purchase of goods and
services
|
|
606.5
|
|
283.7
|
|
26.3
|
|
(75.9)
|
|
840.6
|
Adjusted operating
income1
|
|
685.7
|
|
5.4
|
|
(4.2)
|
|
1.6
|
|
688.5
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
348.5
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
168.6
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(40.8)
|
Restructuring of
operations and other special items
|
|
|
|
|
|
|
|
|
|
10.1
|
Impairment of
goodwill
|
|
|
|
|
|
|
|
|
|
30.0
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
12.1
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
160.0
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
303.2
|
$
|
15.7
|
$
|
4.7
|
$
|
0.1
|
$
|
323.7
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
258.5
|
|
4.1
|
|
0.3
|
|
1.6
|
|
264.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June
30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Head
office
and
Intersegments
|
|
|
|
|
|
|
|
Sports
and
Entertainment
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
Media
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,392.9
|
$
|
387.4
|
$
|
25.6
|
$
|
(39.7)
|
$
|
1,766.2
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
173.5
|
|
131.1
|
|
5.0
|
|
14.8
|
|
324.4
|
Purchase of goods and
services
|
|
551.5
|
|
233.8
|
|
23.4
|
|
(61.8)
|
|
746.9
|
Adjusted operating
income1
|
|
667.9
|
|
22.5
|
|
(2.8)
|
|
7.3
|
|
694.9
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
322.9
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
180.9
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(23.7)
|
Restructuring of
operations and other special items
|
|
|
|
|
|
|
|
|
|
3.1
|
Impairment of
goodwill
|
|
|
|
|
|
|
|
|
|
30.0
|
Loss on debt
refinancing
|
|
|
|
|
|
|
|
|
|
18.7
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
163.0
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
299.0
|
$
|
15.1
|
$
|
2.8
|
$
|
0.3
|
$
|
317.2
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
255.1
|
|
5.0
|
|
-
|
|
0.7
|
|
260.8
|
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 (loss) before depreciation and amortization, financial
expenses, gain on valuation and translation of financial instruments, restructuring
of operations and other special items, impairment of goodwill, loss
on debt refinancing, income taxes and loss from discontinued operations.
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
attributable to shareholders
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
other
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
Retained
|
|
comprehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
|
surplus
|
|
earnings
|
|
loss
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2013
|
$
|
328.9
|
$
|
2.3
|
$
|
291.4
|
$
|
(23.1)
|
$
|
595.9
|
$
|
1,195.4
|
Net loss
|
|
-
|
|
-
|
|
(15.7)
|
|
-
|
|
(12.0)
|
|
(27.7)
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(13.8)
|
|
(4.4)
|
|
(18.2)
|
Repurchase of Class B
Shares
|
|
(1.7)
|
|
-
|
|
(10.0)
|
|
-
|
|
-
|
|
(11.7)
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
(0.1)
|
|
-
|
|
0.1
|
|
-
|
Dividends
|
|
-
|
|
-
|
|
(6.2)
|
|
-
|
|
(12.5)
|
|
(18.7)
|
Balance as of June
30, 2014
|
|
327.2
|
|
2.3
|
|
259.4
|
|
(36.9)
|
|
567.1
|
|
1,119.1
|
Net (loss)
income
|
|
-
|
|
-
|
|
(14.4)
|
|
-
|
|
17.7
|
|
3.3
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(27.5)
|
|
(13.1)
|
|
(40.6)
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.1)
|
|
(0.1)
|
Dividends
|
|
-
|
|
-
|
|
(6.1)
|
|
-
|
|
(12.3)
|
|
(18.4)
|
Balance as of
December 31, 2014
|
|
327.2
|
|
2.3
|
|
238.9
|
|
(64.4)
|
|
559.3
|
|
1,063.3
|
Net income
|
|
-
|
|
-
|
|
101.5
|
|
-
|
|
15.0
|
|
116.5
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(32.5)
|
|
(10.8)
|
|
(43.3)
|
Repurchase of Class B
Shares
|
|
(0.8)
|
|
-
|
|
(5.5)
|
|
-
|
|
-
|
|
(6.3)
|
Issuance of shares of a subsidiary to
non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12.1
|
|
12.1
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
13.8
|
|
-
|
|
(13.8)
|
|
-
|
Dividends
|
|
-
|
|
-
|
|
(7.4)
|
|
-
|
|
(12.3)
|
|
(19.7)
|
Business
acquisition
|
|
-
|
|
-
|
|
-
|
|
-
|
|
0.5
|
|
0.5
|
Balance as of June
30, 2015
|
$
|
326.4
|
$
|
2.3
|
$
|
341.3
|
$
|
(96.9)
|
$
|
550.0
|
$
|
1,123.1
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
(unaudited)
|
Three months ended
June 30
|
|
Six months ended June
30
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
92.4
|
$
|
69.0
|
|
$
|
132.6
|
$
|
116.1
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
146.4
|
|
130.7
|
|
|
294.3
|
|
260.7
|
|
|
Amortization of
intangible assets
|
|
20.6
|
|
31.5
|
|
|
54.2
|
|
62.2
|
|
|
Gain on valuation and
translation of financial instruments
|
|
(45.9)
|
|
(20.8)
|
|
|
(40.8)
|
|
(23.7)
|
|
|
Impairment of
goodwill
|
|
30.0
|
|
30.0
|
|
|
30.0
|
|
30.0
|
|
|
Loss on debt
refinancing
|
|
13.8
|
|
-
|
|
|
12.1
|
|
18.7
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
1.8
|
|
1.9
|
|
|
3.8
|
|
4.9
|
|
|
Deferred income
taxes
|
|
18.1
|
|
4.6
|
|
|
3.7
|
|
15.2
|
|
|
Other
|
|
0.4
|
|
(0.8)
|
|
|
2.4
|
|
1.2
|
|
|
277.6
|
|
246.1
|
|
|
492.3
|
|
485.3
|
|
Net change in
non-cash balances related to operating activities
|
|
(97.6)
|
|
(39.2)
|
|
|
(166.0)
|
|
(112.9)
|
Cash flows provided
by continuing operating activities
|
|
180.0
|
|
206.9
|
|
|
326.3
|
|
372.4
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
Business
acquisitions
|
|
(55.3)
|
|
-
|
|
|
(90.8)
|
|
(0.6)
|
|
Business
disposals
|
|
304.2
|
|
73.7
|
|
|
304.2
|
|
73.7
|
|
Additions to
property, plant and equipment
|
|
(153.9)
|
|
(163.0)
|
|
|
(323.7)
|
|
(317.2)
|
|
Additions to
intangible assets
|
|
(237.2)
|
|
(189.7)
|
|
|
(264.5)
|
|
(260.8)
|
|
Proceeds from
disposals of assets
|
|
1.6
|
|
1.1
|
|
|
1.9
|
|
1.9
|
|
Other
|
|
0.1
|
|
0.2
|
|
|
0.3
|
|
0.2
|
Cash flows used in
continuing investing activities
|
|
(140.5)
|
|
(277.7)
|
|
|
(372.6)
|
|
(502.8)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
-
|
|
(36.8)
|
|
|
(3.9)
|
|
(0.1)
|
|
Net change under
revolving facilities
|
|
7.0
|
|
(78.9)
|
|
|
(5.6)
|
|
(1.0)
|
|
Issuance of long-term
debt, net of financing fees
|
|
-
|
|
654.5
|
|
|
-
|
|
654.5
|
|
Repayments of
long-term debt
|
|
(225.1)
|
|
(721.3)
|
|
|
(231.6)
|
|
(727.7)
|
|
Settlement of hedging
contracts
|
|
13.2
|
|
51.4
|
|
|
13.1
|
|
(64.6)
|
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
-
|
|
-
|
|
|
12.1
|
|
-
|
|
Repurchase of Class B
Shares
|
|
(6.3)
|
|
(4.5)
|
|
|
(6.3)
|
|
(11.7)
|
|
Dividends
|
|
(7.4)
|
|
(6.2)
|
|
|
(7.4)
|
|
(6.2)
|
|
Dividends paid to
non-controlling interests
|
|
(6.1)
|
|
(6.2)
|
|
|
(12.3)
|
|
(12.5)
|
Cash flows used in
continuing financing activities
|
|
(224.7)
|
|
(148.0)
|
|
|
(241.9)
|
|
(169.3)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
(185.2)
|
|
(218.8)
|
|
|
(288.2)
|
|
(299.7)
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided
by (used in) discontinued operations
|
|
0.3
|
|
7.0
|
|
|
(20.0)
|
|
16.8
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
272.0
|
|
405.5
|
|
|
395.3
|
|
476.6
|
Cash and cash
equivalents at end of period
|
$
|
87.1
|
$
|
193.7
|
|
$
|
87.1
|
$
|
193.7
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
64.7
|
$
|
106.4
|
|
$
|
64.7
|
$
|
106.4
|
|
Cash
equivalents
|
|
22.4
|
|
87.3
|
|
|
22.4
|
|
87.3
|
|
$
|
87.1
|
$
|
193.7
|
|
$
|
87.1
|
$
|
193.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
$
|
128.6
|
$
|
144.1
|
|
$
|
159.6
|
$
|
173.7
|
|
Cash income tax
payments (net of refunds)
|
|
32.8
|
|
10.9
|
|
|
99.6
|
|
78.4
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
(unaudited)
|
|
June
30
|
|
|
December
31
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
87.1
|
|
$
|
395.3
|
|
Accounts
receivable
|
|
469.8
|
|
|
449.4
|
|
Income
taxes
|
|
16.8
|
|
|
6.7
|
|
Inventories
|
|
205.8
|
|
|
212.2
|
|
Prepaid
expenses
|
|
61.3
|
|
|
38.0
|
|
Derivative financial
instruments
|
|
20.9
|
|
|
-
|
|
Assets held for
sale
|
|
30.5
|
|
|
398.1
|
|
|
892.2
|
|
|
1,499.7
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
3,427.2
|
|
|
3,430.4
|
|
Intangible
assets
|
|
1,179.2
|
|
|
945.8
|
|
Goodwill
|
|
2,737.7
|
|
|
2,714.6
|
|
Derivative financial
instruments
|
|
585.2
|
|
|
400.9
|
|
Deferred income
taxes
|
|
17.4
|
|
|
7.8
|
|
Other
assets
|
|
93.9
|
|
|
79.3
|
|
|
8,040.6
|
|
|
7,578.8
|
Total
assets
|
$
|
8,932.8
|
|
$
|
9,078.5
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Bank
indebtedness
|
$
|
1.3
|
|
$
|
5.2
|
|
Accounts payable and
accrued charges
|
|
577.0
|
|
|
650.2
|
|
Provisions
|
|
58.3
|
|
|
56.7
|
|
Deferred
revenue
|
|
308.7
|
|
|
283.0
|
|
Income
taxes
|
|
15.1
|
|
|
85.5
|
|
Derivative financial
instruments
|
|
-
|
|
|
0.9
|
|
Current portion of
long-term debt
|
|
23.9
|
|
|
230.1
|
|
Liabilities held for
sale
|
|
14.7
|
|
|
97.9
|
|
|
999.0
|
|
|
1,409.5
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
Long-term
debt
|
|
5,252.3
|
|
|
5,048.2
|
|
Derivative financial
instruments
|
|
118.1
|
|
|
101.9
|
|
Convertible
debentures
|
|
500.0
|
|
|
500.0
|
|
Other
liabilities
|
|
385.3
|
|
|
426.8
|
|
Deferred income
taxes
|
|
555.0
|
|
|
528.8
|
|
|
6,810.7
|
|
|
6,605.7
|
Equity
|
|
|
|
|
|
|
Capital
stock
|
|
326.4
|
|
|
327.2
|
|
Contributed
surplus
|
|
2.3
|
|
|
2.3
|
|
Retained
earnings
|
|
341.3
|
|
|
238.9
|
|
Accumulated other
comprehensive loss
|
|
(96.9)
|
|
|
(64.4)
|
|
Equity
attributable to shareholders
|
|
573.1
|
|
|
504.0
|
|
Non-controlling
interests
|
|
550.0
|
|
|
559.3
|
|
|
1,123.1
|
|
|
1,063.3
|
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
8,932.8
|
|
$
|
9,078.5
|
SOURCE Quebecor