MONTRÉAL, May 12, 2016
/PRNewswire/ - Quebecor Inc. ("Quebecor" or "the Corporation")
today reported its consolidated financial results for the first
quarter of 2016 and announced a 29% increase in its quarterly
dividend. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary, in
which it holds an 81.1% interest.
Highlights
First quarter 2016
- Revenues: $975.4 million, up
$46.4 million (5.0%).
- Adjusted operating income:1 $354.7 million, up $15.5 million (4.6%).
- Net income attributable to shareholders: $69.9 million ($0.57 per basic share) in the first quarter of
2016 compared with $29.4 million
($0.24 per basic share) in the same
period of 2015, an increase of $40.5 million ($0.33 per basic share).
- Adjusted income from continuing operating
activities:2 $67.7 million ($0.55 per basic share) in the first quarter
of 2016, compared with $41.4 million ($0.34 per basic share) in the same period of
2015, an increase of $26.3 million ($0.21 per basic share) or 63.5%.
- Quarterly dividend on the Corporation's Class A Multiple Voting
Shares ("Class A Shares") and Class B Subordinate Voting
Shares ("Class B Shares") increased 29% from $0.035 to $0.045
per share.
- Telecommunications segment revenues increased by $38.2 million (5.2%) and its adjusted
operating income by $15.1 million (4.4%) in the first
quarter of 2016.
- Revenues of Videotron Ltd. ("Videotron") increased
significantly in the first quarter of 2016 compared with the same
period of 2015, led by mobile telephony ($27.0 million or 30.2%), Internet access
($18.1 million or 8.1%),
business solutions ($9.0 million or 54.2%) and the
Club illico over-the-top video service ("Club illico")
($2.3 million or
42.6%).
- Videotron's average monthly revenue per user3
("ARPU") increased by $9.41 (7.1%)
from $131.96 in the first quarter
of 2015 to $141.37 in the first quarter of 2016.
- Net increase of 17,800 revenue-generating units4
(0.3%) in the first quarter of 2016, including
27,100 connections to the mobile telephony service,
9,900 subscriptions to the cable Internet access service and
7,700 memberships in Club illico.
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
Club illico services, plus subscriber connections to the cable and
mobile telephony services.
|
"All of our segments posted higher revenues in the first quarter
of 2016," noted Pierre Dion, President and CEO of
Quebecor. "The significant growth in our business volume was driven
by the success of Videotron's service offerings, the
diversification of the Media segment's revenue streams and
development of the concert management and production business.
Quebecor's adjusted operating income increased
by $15.5 million (4.6%), propelled once again by the
excellent performance of the Telecommunications segment. We are
confident that the opportunities created by the long-term evolution
of the wireless industry will enable us to maintain sustained
growth in our mobile telephony services."
"Videotron's high-growth-potential products and services,
particularly mobile telephony, Internet access, business solutions
and Club illico, contributed to its higher numbers again,"
commented Manon Brouillette,
President and CEO of Videotron. "Videotron increased its
revenue‑generating units by 158,100 (2.9%) during the 12-month
period ended March 31, 2016, including an increase of
133,600 (20.2%) connections to the mobile telephony service.
The net increase of 27,100 connections in the first quarter of 2016
was more than that of any of the incumbent operators in
Canada. The mobile telephony
service's ARPU was $49.66 in the
first quarter of 2016, a 7.9% year-over-year increase.
Finally, our Business Solutions segment continued making a positive
contribution to our results with a 24.1% increase in revenues over
the past 12 months and the uptrend is expected to hold as we
continue implementing our development plan for Fibrenoire inc.
and 4Degrees Colocation Inc.
"In addition to being ranked the most respected
telecommunications company in Québec for the 11th consecutive
year, Videotron became the most influential Québec-based brand in
Québec across all industries according to the latest
Ipsos-Infopresse survey. This is telling evidence of the
important role we play in our customers' daily lives, a result of
our unflagging efforts to offer all our customers the best possible
experience and state-of-the-art technology. We are enormously proud
of these high distinctions, which we owe to our employees.
"We continue developing our Club illico service. At the
beginning of April 2016, NBCUniversal
Television & New Media Distribution Canada and
Quebecor Content signed an agreement which will give Club
illico members access to some of the most popular new releases from
one of the world's largest content producers and distributors. As
of the end of the first quarter of 2016, Club illico had
265,200 members, a 12‑month increase of 78,400 (42.0%),"
concluded Manon Brouillette.
"In our Media segment, revenues from the film production and
audiovisual services of Mels Studios and Postproduction G.P.
rose 52%, generating a $2.1 million improvement in adjusted
operating income," observed Julie
Tremblay, President and CEO of Media Group. "Our
broadcasting operations were also highly successful. For example,
in season 4 of La Voix, the weekly gala drew an
average audience of 2.6 million viewers according to Numeris
and an average market share of 58%. Traffic on the
lavoix.ca site increased considerably and the
number of viewings grew by 54%. The show logged 1.8 million
downloads on illico Digital TV. All these numbers confirm the
effectiveness of Quebecor Media's cross-platform convergence
strategy.
"According to Vividata survey data for the full year of 2015,
Le Journal de Montréal, Le Journal de Québec and the free
daily 24 heures remain Québec's news leaders with more
than 4.0 million readers per week across all platforms,"
continued Julie Tremblay.
"TVA Group Inc. strengthened its leading position in the
Canadian magazine industry with 9.0 million readers per issue
on all platforms for all of its magazines combined. In
April 2016, we released the Molto app, a digital newsstand
which lets users read all our magazines on their tablet or
smartphone. Our Goji talent collective, launched in September 2015 to provide a springboard for the
best YouTube content creators and support their brand development
efforts, attracted attention when Noémie Lacerte won the Numix
award for YouTuber of the Year on May 6,
2016."
In the Sports and Entertainment segment, Event Management Gestev
Inc. ("Gestev") announced the creation of Gestev Spectacles, which
leverages Gestev's 25 years of experience in event
organization and powerful brand to establish itself as a major
player in showbiz and entertainment. All shows and events produced
by Quebecor will now bear the Gestev logo. After only
eight months of operation, more than a million guests have
already attended sporting events and performances at the Videotron
Centre.
As announced in the first quarter of 2015, the Board of
Directors of Quebecor will henceforth review its dividend payment
policy annually. In view of the Corporation's financial profile,
which remains healthy, and its capacity to generate cash flows, the
Board has approved another increase in the quarterly dividend on
Class A and Class B shares, from $0.035 to $0.045. "We remain very upbeat
about the Corporation's ability to generate growing cash flows,"
stated Jean-François Pruneau, Senior Vice President and CFO of
Quebecor. "Thanks to sound balance sheet management, we are in a
position to increase distributions to our shareholders."
"Quebecor recorded solid consolidated financial results again in
the first quarter of 2016," Pierre
Dion concluded. "The Corporation remains well positioned to
achieve its profitability, business development and shareholder
value-maximization objectives."
Table
1
|
Quebecor first
quarter financial highlights, 2012 to 2016
|
(in millions of
Canadian dollars, except per share data)
|
|
|
2016
|
|
2015
|
|
2014
|
|
20131
|
|
20121
|
Revenues
|
$
|
975.4
|
$
|
929.0
|
$
|
876.1
|
$
|
855.0
|
$
|
848.1
|
Adjusted operating
income
|
|
354.7
|
|
339.2
|
|
335.0
|
|
312.6
|
|
304.2
|
Income (loss) from
continuing operating activities attributable to shareholders
|
|
69.9
|
|
31.5
|
|
38.6
|
|
(3.9)
|
|
69.4
|
Net income (loss)
attributable to shareholders
|
|
69.9
|
|
29.4
|
|
39.1
|
|
(6.5)
|
|
71.4
|
Adjusted income from
continuing operating activities
|
|
67.7
|
|
41.4
|
|
45.1
|
|
33.0
|
|
35.5
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operating activities attributable to shareholders
|
|
0.57
|
|
0.26
|
|
0.32
|
|
(0.03)
|
|
0.55
|
|
Net income (loss)
attributable to shareholders
|
|
0.57
|
|
0.24
|
|
0.32
|
|
(0.05)
|
|
0.56
|
|
Adjusted income from
continuing operating activities
|
|
0.55
|
|
0.34
|
|
0.37
|
|
0.27
|
|
0.28
|
1
|
The financial figures
for 2012 to 2013 have been restated to reflect changes in
accounting policy for the accounting of convertible
debentures.
|
New segment structure
During the fourth quarter of 2015, the Corporation changed its
organizational structure and transferred its music distribution and
production operations from the Sports and Entertainment segment to
the Media segment. Accordingly, prior‑period figures in the
Corporation's segmented reporting have been reclassified to reflect
those changes.
Discontinued operations
On September 27, 2015, Quebecor
Media closed the sale of Archambault Group Inc.'s retail business,
including the 14 Archambault stores, the archambault.ca portal
and the English-language Paragraphe Bookstore, to Groupe
Renaud‑Bray inc. for a cash consideration
of $14.5 million, less disposed-of cash in the amount of
$1.1 million, and a $3.0 million balance received in the first
quarter of 2016. 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. A $1.3 million working capital adjustment was
also paid. On February 13, 2015,
Quebecor Media announced the discontinuation of the operations of
the English language news and opinion specialty channel SUN
News. The operating results and cash flows related to all of those
businesses have been reclassified as discontinued operations in the
consolidated statements of income and cash flows.
2016/2015 first quarter comparison
Revenues: $975.4 million, a $46.4 million (5.0%) increase.
- Revenues increased in Telecommunications ($38.2 million or 5.2% of segment revenues),
Media ($6.0 million or 2.8%) and Sports
and Entertainment ($5.5 million
or 114.6%).
Adjusted operating income: $354.7 million, a $15.5 million (4.6%) increase.
- Adjusted operating income increased in Telecommunications
($15.1 million or 4.4% of
segment adjusted operating income) and there was a favourable
variance in the Media segment ($3.4 million or 55.7%).
- Unfavourable variance in Sports and Entertainment ($0.9 million) and at Head Office
($2.1 million). The change at
Head Office was due primarily to the unfavourable variance in the
stock-based compensation charge.
- The change in the fair value of Quebecor Media stock options
resulted in a $1.2 million
unfavourable variance in the stock‑based compensation charge in the
first quarter of 2016 compared with the same period of 2015.
The change in the fair value of Quebecor stock options resulted in
a $1.0 million unfavourable
variance in the Corporation's stock‑based compensation charge in
the first quarter of 2016.
Net income attributable to shareholders: $69.9 million ($0.57 per basic share) in the first quarter
of 2016, compared with $29.4 million ($0.24 per basic share) in the same period of
2015, an increase of $40.5 million ($0.33 per basic share).
- The favourable variance was essentially due to:
- $19.8 million decrease in
the depreciation and amortization charge;
- $15.5 million increase in
adjusted operating income;
- $11.7 million favourable
variance in gains and losses on valuation and translation of
financial instruments, including a $15.4 million gain without any tax
consequences;
- $7.0 million decrease in
financial expenses;
- $4.3 million favourable
variance in the loss related to discontinued operations.
Partially offset by:
- $6.8 million unfavourable
variance in non-controlling interest;
- $3.5 million increase in the
charge for restructuring of operations and other items;
- $1.7 million unfavourable
variance related to a gain on debt refinancing recorded in first
quarter of 2015.
Adjusted income from continuing operating activities:
$67.7 million ($0.55 per basic share) in the first quarter
of 2016, compared with $41.4 million ($0.34 per basic share) in the same period of
2015, an increase of $26.3 million ($0.21 per basic share).
Dividend
On May 11, 2016, the Board of
Directors of Quebecor declared a quarterly dividend of $0.045 per share on its Class A Shares and
Class B Shares, payable on June 21, 2016 to
shareholders of record at the close of business on
May 27, 2016. 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 can 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 that Exchange. All
shares purchased under the bid will be cancelled.
During the first quarter of 2016, the Corporation purchased and
cancelled 39,600 Class B shares for a total cash consideration
of $1.3 million. The $1.2 million excess of the purchase price
over the carrying value of the repurchased Class B Shares was
recorded in reduction of retained earnings.
Detailed financial information
For a detailed analysis of Quebecor's first quarter 2016
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 2016 results on May 12, 2016,
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 90393#. A tape recording of the call will be
available from May 12 to
August 12, 2016 by dialling 1 877 293‑8133,
conference number 1197769, 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), new competition and
Quebecor's ability to retain its current customers and attract new
ones, risks related to fragmentation of the advertising market,
insurance risk, risks associated with capital investments
(including risks related to technological development and equipment
availability and breakdown), environmental risks, risks associated
with cybersecurity and the protection of personal information,
risks associated with labour agreements, 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, 2015.
The forward-looking statements in this press release reflect
Quebecor's expectations as of May 12, 2016, 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, QBR.B) is headquartered in Québec. It
holds an 81.07% interest in Quebecor Media, which employs close to
11,000 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/Quebecor
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, gain
(loss) on valuation and translation of financial instruments,
charge for restructuring of operations and other items, gain on
debt refinancing, income tax, and the loss on 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
business 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
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Adjusted operating
(loss) income:
|
|
|
|
|
|
Telecommunications
|
$
|
358.7
|
$
|
343.6
|
|
Media
|
|
(2.7)
|
|
(6.1)
|
|
Sports and
Entertainment
|
|
(0.8)
|
|
0.1
|
|
Head
Office
|
|
(0.5)
|
|
1.6
|
|
|
354.7
|
|
339.2
|
Depreciation and
amortization
|
|
(161.7)
|
|
(181.5)
|
Financial
expenses
|
|
(80.8)
|
|
(87.8)
|
Gain (loss) on
valuation and translation of financial instruments
|
|
6.6
|
|
(5.1)
|
Restructuring of
operations and other items
|
|
(7.9)
|
|
(4.4)
|
Gain on debt
refinancing
|
|
−
|
|
1.7
|
Income
taxes
|
|
(27.7)
|
|
(21.9)
|
Loss from
discontinued operations
|
|
−
|
|
(4.3)
|
Net
income
|
$
|
83.2
|
$
|
35.9
|
Adjusted income from continuing operating activities
The Corporation defines adjusted income from continuing
operating activities, as reconciled to net income attributable to
shareholders under IFRS, as net income attributable to shareholders
before gain (loss) on valuation and translation of financial
instruments, charge for restructuring of operations and other
items, gain on debt refinancing, net of income tax related to
adjustments and net income attributable to non-controlling interest
related to adjustments, and before the loss on discontinued
operations attributable to shareholders. Adjusted income from
continuing operating activities, 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 operating activities 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 operating activities is more representative for the
purpose of forecasting income. 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
|
|
2016
|
2015
|
|
|
|
Adjusted income from
continuing operating activities
|
$
|
67.7
|
$
|
41.4
|
Gain (loss) on
valuation and translation of financial instruments
|
|
6.6
|
|
(5.1)
|
Restructuring of
operations and other items
|
|
(7.9)
|
|
(4.4)
|
Gain on debt
refinancing
|
|
−
|
|
1.7
|
Income taxes related
to adjustments1
|
|
2.1
|
|
(2.9)
|
Net income
attributable to non‑controlling interest related to
adjustments
|
|
1.4
|
|
0.8
|
Discontinued
operations
|
|
−
|
|
(2.1)
|
Net income
attributable to shareholders
|
$
|
69.9
|
$
|
29.4
|
1 Includes
impact of fluctuations in income tax applicable to adjusted items,
either for statutory reasons or in connection with tax
transactions.
|
Key performance indicator
The Corporation uses ARPU, an industry metric, as a key
performance indicator. This indicator is used to measure monthly
revenues from its cable television, Internet access, cable and
mobile telephony services and Club illico 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 services and Club illico 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
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Revenues
|
|
$
|
975.4
|
$
|
929.0
|
|
|
|
|
|
|
Employee
costs
|
|
|
185.0
|
|
181.5
|
Purchase of goods and
services
|
|
|
435.7
|
|
408.3
|
Depreciation and
amortization
|
|
|
161.7
|
|
181.5
|
Financial
expenses
|
|
|
80.8
|
|
87.8
|
(Gain) loss on
valuation and translation of financial instruments
|
|
|
(6.6)
|
|
5.1
|
Restructuring of
operations and other items
|
|
|
7.9
|
|
4.4
|
Gain on debt
refinancing
|
|
|
-
|
|
(1.7)
|
|
|
|
|
|
|
Income before
income taxes
|
|
|
110.9
|
|
62.1
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
Current
|
|
|
38.2
|
|
36.3
|
|
Deferred
|
|
|
(10.5)
|
|
(14.4)
|
|
|
|
27.7
|
|
21.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
83.2
|
|
40.2
|
Loss from
discontinued operations
|
|
|
-
|
|
(4.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
83.2
|
$
|
35.9
|
|
|
|
|
|
|
Income from
continuing operations attributable to
|
|
|
|
|
|
|
Shareholders
|
|
$
|
69.9
|
$
|
31.5
|
|
Non-controlling
interests
|
|
|
13.3
|
|
8.7
|
|
|
|
|
|
|
Net income
attributable to
|
|
|
|
|
|
|
Shareholders
|
|
$
|
69.9
|
$
|
29.4
|
|
Non-controlling
interests
|
|
|
13.3
|
|
6.5
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
|
0.57
|
$
|
0.26
|
|
|
From discontinued
operations
|
|
|
-
|
|
(0.02)
|
|
|
Net income
|
|
|
0.57
|
|
0.24
|
|
Diluted:
|
|
|
|
|
|
|
|
From continuing
operations
|
|
|
0.46
|
|
0.26
|
|
|
From discontinued
operations
|
|
|
-
|
|
(0.02)
|
|
|
Net income
|
|
|
0.46
|
|
0.24
|
Weighted average
number of shares outstanding (in millions)
|
|
|
122.5
|
|
122.9
|
Weighted average
number of diluted shares (in millions)
|
|
|
143.6
|
|
123.2
|
QUEBECOR INC. AND ITS
SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
(in millions of Canadian dollars)
(unaudited)
|
|
Three months ended
March 31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Income from
continuing operations
|
$
|
83.2
|
$
|
40.2
|
|
|
|
|
|
Other comprehensive
loss from continuing operations:
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
Gain on valuation of
derivative financial instruments
|
|
10.1
|
|
7.3
|
|
|
|
Deferred income
taxes
|
|
15.3
|
|
(22.4)
|
|
|
|
|
|
|
Items that will not
be reclassified to income:
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
Re-measurement
loss
|
|
(78.0)
|
|
-
|
|
|
|
Deferred income
taxes
|
|
21.0
|
|
-
|
|
|
|
|
|
|
Reclassification to
income:
|
|
|
|
|
|
|
Gain related to cash
flow hedges
|
|
-
|
|
(1.8)
|
|
|
Deferred income
taxes
|
|
-
|
|
0.4
|
|
|
(31.6)
|
|
(16.5)
|
|
|
|
|
|
Comprehensive
income from continuing operations
|
|
51.6
|
|
23.7
|
|
|
|
|
|
Loss from
discontinued operations
|
|
-
|
|
(4.3)
|
|
|
|
|
|
Comprehensive
income
|
$
|
51.6
|
$
|
19.4
|
|
|
|
|
|
Comprehensive
income from continuing operations attributable to
|
|
|
|
|
|
Shareholders
|
$
|
47.1
|
$
|
19.2
|
|
Non-controlling
interests
|
|
4.5
|
|
4.5
|
|
|
|
|
|
Comprehensive
income attributable to
|
|
|
|
|
|
Shareholders
|
$
|
47.1
|
$
|
17.2
|
|
Non-controlling
interests
|
|
4.5
|
|
2.2
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
SEGMENTED
INFORMATION
|
|
(in millions of
Canadian dollars)
|
(unaudited)
|
|
Three months ended
March 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
772.5
|
$
|
221.1
|
$
|
10.3
|
$
|
(28.5)
|
$
|
975.4
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
99.1
|
|
69.7
|
|
4.4
|
|
11.8
|
|
185.0
|
Purchase of goods and
services
|
|
314.7
|
|
154.1
|
|
6.7
|
|
(39.8)
|
|
435.7
|
Adjusted operating
income1
|
|
358.7
|
|
(2.7)
|
|
(0.8)
|
|
(0.5)
|
|
354.7
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
161.7
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
80.8
|
Gain on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
(6.6)
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
7.9
|
Income before
income taxes
|
|
|
|
|
|
|
|
|
$
|
110.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment
|
$
|
159.6
|
$
|
13.7
|
$
|
0.6
|
$
|
0.3
|
$
|
174.2
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
intangible assets
|
|
38.6
|
|
1.8
|
|
0.3
|
|
0.8
|
|
41.5
|
|
|
|
Three months ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and Inter-
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
734.3
|
$
|
215.1
|
$
|
4.8
|
$
|
(25.2)
|
$
|
929.0
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
92.9
|
|
77.3
|
|
2.1
|
|
9.2
|
|
181.5
|
Purchase of goods and
services
|
|
297.8
|
|
143.9
|
|
2.6
|
|
(36.0)
|
|
408.3
|
Adjusted operating
income1
|
|
343.6
|
|
(6.1)
|
|
0.1
|
|
1.6
|
|
339.2
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
181.5
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
87.8
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
5.1
|
Restructuring of
operations and other items
|
|
|
|
|
|
|
|
|
|
4.4
|
Gain on debt
refinancing
|
|
|
|
|
|
|
|
|
|
(1.7)
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
$
|
62.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
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, (gain) loss on valuation and translation of financial instruments,
restructuring of operations and other items, gain 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
com-
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
Retained
|
|
prehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
|
surplus
|
|
earnings
|
|
loss
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
Dividends
|
|
-
|
|
-
|
|
(3.1)
|
|
-
|
|
(6.2)
|
|
(9.3)
|
Issuance of shares of
a subsidiary to
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12.1
|
|
12.1
|
Non-controlling
interests acquisition
|
|
-
|
|
-
|
|
14.1
|
|
-
|
|
(14.1)
|
|
-
|
Balance as of
March 31, 2015
|
|
327.2
|
|
2.3
|
|
279.3
|
|
(76.6)
|
|
553.3
|
|
1,085.5
|
Net income
|
|
-
|
|
-
|
|
122.4
|
|
-
|
|
21.8
|
|
144.2
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(27.3)
|
|
(8.8)
|
|
(36.1)
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(12.9)
|
|
-
|
|
(17.2)
|
|
(30.1)
|
Repurchase of Class B
Shares
|
|
(1.6)
|
|
-
|
|
(10.8)
|
|
-
|
|
-
|
|
(12.4)
|
Non-controlling
interests and
|
|
|
|
|
|
|
|
|
|
|
|
|
business
acquisitions
|
|
-
|
|
-
|
|
(295.8)
|
|
(7.3)
|
|
(196.0)
|
|
(499.1)
|
Balance as of
December 31, 2015
|
|
325.6
|
|
2.3
|
|
82.2
|
|
(111.2)
|
|
353.1
|
|
652.0
|
Net income
|
|
-
|
|
-
|
|
69.9
|
|
-
|
|
13.3
|
|
83.2
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(22.8)
|
|
(8.8)
|
|
(31.6)
|
Dividends or
distributions
|
|
-
|
|
-
|
|
(4.3)
|
|
-
|
|
(4.7)
|
|
(9.0)
|
Repurchase of Class B
Shares
|
|
(0.1)
|
|
-
|
|
(1.2)
|
|
-
|
|
-
|
|
(1.3)
|
Balance as of
March 31, 2016
|
$
|
325.5
|
$
|
2.3
|
$
|
146.6
|
$
|
(134.0)
|
$
|
352.9
|
$
|
693.3
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
(in millions of
Canadian dollars)
(unaudited)
|
|
Three months
ended
March 31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
Income from
continuing operations
|
$
|
83.2
|
$
|
40.2
|
|
Adjustments
for:
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
139.6
|
|
147.9
|
|
|
Amortization of intangible assets
|
|
22.1
|
|
33.6
|
|
|
(Gain) loss on
valuation and translation of financial instruments
|
|
(6.6)
|
|
5.1
|
|
|
Gain on debt
refinancing
|
|
-
|
|
(1.7)
|
|
|
Amortization of
financing costs and long-term debt discount
|
|
1.6
|
|
2.0
|
|
|
Deferred income
taxes
|
|
(10.5)
|
|
(14.4)
|
|
|
Other
|
|
1.5
|
|
2.0
|
|
|
230.9
|
|
214.7
|
|
Net change in
non-cash balances related to operating activities
|
|
(11.4)
|
|
(68.4)
|
Cash flows provided
by continuing operating activities
|
|
219.5
|
|
146.3
|
Cash flows related
to investing activities
|
|
|
|
|
|
Business
acquisitions
|
|
(119.3)
|
|
(35.5)
|
|
Business
disposals
|
|
3.0
|
|
-
|
|
Additions to
property, plant and equipment
|
|
(174.2)
|
|
(169.8)
|
|
Additions to
intangible assets
|
|
(41.5)
|
|
(27.3)
|
|
Proceeds from
disposals of assets
|
|
0.4
|
|
0.3
|
|
Other
|
|
-
|
|
0.2
|
Cash flows used in
continuing investing activities
|
|
(331.6)
|
|
(232.1)
|
Cash flows related
to financing activities
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
44.0
|
|
(3.9)
|
|
Net change under
revolving facilities
|
|
65.9
|
|
(12.6)
|
|
Repayments of
long-term debt
|
|
(2.6)
|
|
(6.5)
|
|
Settlement of hedging
contracts
|
|
5.8
|
|
(0.1)
|
|
Issuance of shares of
a subsidiary to non-controlling interests
|
|
-
|
|
12.1
|
|
Repurchase of Class B
Shares
|
|
(1.3)
|
|
-
|
|
Dividends or
distributions paid to non-controlling interests
|
|
(4.7)
|
|
(6.2)
|
Cash flows provided by (used in) continuing financing
activities
|
|
107.1
|
|
(17.2)
|
|
|
|
|
|
Net change in cash
and cash equivalents from continuing operations
|
|
(5.0)
|
|
(103.0)
|
|
|
|
|
|
Cash flows used in
discontinued operations
|
|
-
|
|
(20.3)
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
18.6
|
|
395.3
|
Cash and cash
equivalents at end of period
|
$
|
13.6
|
$
|
272.0
|
|
|
|
|
|
Cash and cash
equivalents consist of
|
|
|
|
|
|
Cash
|
$
|
11.8
|
$
|
166.8
|
|
Cash
equivalents
|
|
1.8
|
|
105.2
|
|
|
$
|
13.6
|
$
|
272.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
Cash interest
payments
|
$
|
42.6
|
$
|
31.0
|
|
Cash income tax
payments (net of refunds)
|
|
34.5
|
|
66.8
|
QUEBECOR INC. AND
ITS SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in millions of Canadian dollars)
|
(unaudited)
|
|
March
31
|
|
December
31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
13.6
|
$
|
18.6
|
|
Accounts receivable
|
|
460.0
|
|
494.1
|
|
Income taxes
|
|
22.0
|
|
28.6
|
|
Inventories
|
|
194.1
|
|
215.5
|
|
Prepaid expenses
|
|
73.2
|
|
46.0
|
|
|
762.9
|
|
802.8
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and equipment
|
|
3,474.3
|
|
3,424.9
|
|
Intangible assets
|
|
1,191.5
|
|
1,178.0
|
|
Goodwill
|
|
2,770.4
|
|
2,678.4
|
|
Derivative financial instruments
|
|
780.4
|
|
1,072.4
|
|
Deferred income taxes
|
|
34.3
|
|
29.5
|
|
Other assets
|
|
99.2
|
|
89.9
|
|
|
8,350.1
|
|
8,473.1
|
Total
assets
|
$
|
9,113.0
|
$
|
9,275.9
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank indebtedness
|
$
|
78.3
|
$
|
34.3
|
|
Accounts payable and accrued
charges
|
|
609.5
|
|
654.9
|
|
Provisions
|
|
65.9
|
|
67.1
|
|
Deferred revenue
|
|
314.0
|
|
321.5
|
|
Income taxes
|
|
2.6
|
|
9.1
|
|
Current portion of long-term debt
|
|
20.1
|
|
44.0
|
|
|
1,090.4
|
|
1,130.9
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Long-term debt
|
|
5,717.2
|
|
5,812.4
|
|
Derivative financial instruments
|
|
7.9
|
|
118.7
|
|
Convertible debentures
|
|
500.0
|
|
500.0
|
|
Other liabilities
|
|
527.5
|
|
448.2
|
|
Deferred income taxes
|
|
576.7
|
|
613.7
|
|
|
7,329.3
|
|
7,493.0
|
Equity
|
|
|
|
|
|
Capital stock
|
|
325.5
|
|
325.6
|
|
Contributed surplus
|
|
2.3
|
|
2.3
|
|
Retained earnings
|
|
146.6
|
|
82.2
|
|
Accumulated other comprehensive
loss
|
|
(134.0)
|
|
(111.2)
|
|
Equity attributable to
shareholders
|
|
340.4
|
|
298.9
|
|
Non-controlling interests
|
|
352.9
|
|
353.1
|
|
|
693.3
|
|
652.0
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
9,113.0
|
$
|
9,275.9
|
SOURCE Quebecor Inc.