MONTRÉAL, Aug. 4, 2016 /CNW
Telbec/ - Quebecor Inc. ("Quebecor" or the "Corporation")
today reported consolidated financial results for the second
quarter of 2016. Quebecor consolidates the financial results of its
Quebecor Media Inc. ("Quebecor Media") subsidiary, in which it
holds an 81.1% interest.
Highlights
Second quarter 2016
- Revenues: $992.5 million, up
$28.7 million (3.0%).
- Adjusted operating income:1 $360.3 million, up $11.0 million (3.1%).
- Net income attributable to shareholders: $9.8 million ($0.08 per basic share) in the second quarter
of 2016, compared with $72.1 million ($0.59 per basic share) in the same period of
2015, a decrease of $62.3 million ($0.51 per basic share), including the
$105.3 million unfavourable
impact of losses and gains on embedded derivatives related to
convertible debentures.
- Adjusted income from continuing operating
activities:2 $69.9 million ($0.57 per basic share) in the second quarter
of 2016, compared with $66.5 million ($0.54 per basic share) in the same period of
2015, an increase of $3.4 million ($0.03 per basic share).
- Telecommunications segment revenues increased by $38.9 million (5.2%) and adjusted operating
income by $20.3 million (5.9%)
in the second quarter of 2016.
- Videotron Ltd. ("Videotron") significantly increased its
revenues from mobile telephony ($26.5 million or 27.5%), Internet
access ($16.5 million or 7.3%), business
solutions ($10.3 million or
62.0%) and Club illico over‑the top video service
("Club illico") ($2.0 million or 37.0%).
- Videotron's average monthly revenue per user3
("ARPU") was up $9.30 (7.0%) from
$133.71 in the second quarter
of 2015 to $143.01 in the second
quarter of 2016.
- Subscriber connections to the mobile telephony service up
33,200 (4.2%) from the previous quarter.
"Quebecor grew its revenues by $28.7 million (3.0%) and its adjusted
operating income by $11.0 million (3.1%) in the second quarter
of 2016, reflecting a solid performance by the
Telecommunications segment," commented Pierre Dion, President
and Chief Executive Officer of Quebecor. "Customers continue to
respond positively to the depth and quality of Videotron's
offerings, as is evident from the increase of
33,200 subscriber connections (4.2%) to its mobile telephony
service in the second quarter of 2016. Our wise investment
choices in operations with strong growth potential and the
repositioning of our asset portfolio over the past few years are
paying off, demonstrating our strategy's long-term viability. The
5.1% increase in adjusted income from continuing operating
activities is also noteworthy; the factors in that increase
included the positive impact of the various financial operations
carried out over the past 12 months."
"Once again, Videotron's flagship products helped drive up its
results, particularly mobile telephony, Internet access, business
solutions and Club illico," said Manon
Brouillette, President and Chief Executive Officer of
Videotron. "The number of revenue generating units4
increased by 128,300 (2.3%) during the 12-month period ended
June 30, 2016, including an increase of
126,000 subscriber connections (17.9%) to the mobile telephony
service. The mobile service's ARPU was $50.51 in the second quarter of 2016, up
7.4% from the same quarter of 2015. Our business solutions segment
also continued to make a substantial contribution to our results in
the second quarter of 2016, mainly due to the acquisition of
Fibrenoire inc. and the business impacts from our major
investments in our data centres."
In July 2016, Videotron launched
its new Giga Fibre Hybrid Internet access service, which offers
residential and business customers download speeds of up to
940 Mbps. "With Giga Fibre Hybrid service, Videotron maintains
its pioneering posture. More than 20 years ago, we were among
the first to offer high-speed Internet in Québec and we have since
been able to differentiate ourselves by rapidly upgrading our
services to meet our customers' present and future needs,"
concluded Manon Brouillette.
"In the Media segment, the advertising revenues and operating
income of our TVA Sports specialty channel were unfortunately
affected by the Montréal Canadiens' failure to qualify for the
National Hockey League playoffs, which was not the case in the
second quarter of 2015," noted Julie
Tremblay, President and Chief Executive Officer of Quebecor
Media Group. Meanwhile, the soundstage and equipment leasing
operations of Mels Studios and Post-production G.P. ("MELS")
suffered from the absence of any major Hollywood production in the second quarter of
2016, whereas the movie X-Men Apocalypse was filming on
MELS' soundstages in the same period of 2015. However, we are
pleased with the bookings we have in the coming months. The growth
in the magazine publishing segment's operating income resulted from
a concerted effort to successfully integrate the magazines acquired
from Transcontinental on April 12,
2015.
"We also launched Immersion, a new video advertising format that
enables businesses and their brands to leverage existing content
and reduce their advertising video production costs. The innovative
technology displays full-screen, high‑resolution videos that
integrate perfectly into the front end of most websites," concluded
Julie Tremblay.
In the Sports and Entertainment segment, in April 2016 Gestev became the official imprint for
all shows and events produced and/or presented by Quebecor,
enhancing the total package offered by the Corporation. Gestev was
the co‑promoter, with Live Nation, of a concert by the British
band Mumford & Sons at Baie de Beauport on June 11, 2016. The
successful event provided a compelling demonstration of Gestev's
exceptional new offerings for fans of music and live events.
"In the first half of 2016, our Corporation continued investing
and pursuing its business plan, focused on lines of business with
strong growth potential" and, concluded Pierre Dion, "Quebecor remains well positioned
to achieve its shareholder value‑maximization objectives."
________________
1
|
See "Adjusted operating income" under
"Definitions."
|
2
|
See "Adjusted income from continuing operating
activities" under "Definitions."
|
3
|
See "Key Performance
Indicator"
|
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.
|
Table 1 Quebecor second quarter
financial highlights, 2012 to 2016 (in millions of Canadian
dollars, except per share data)
|
|
|
2016
|
2015
|
2014
|
2013
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
992.5
|
$
|
963.8
|
$
|
896.1
|
$
|
880.7
|
$
|
851.7
|
Adjusted operating income
|
|
360.3
|
|
349.3
|
|
359.9
|
|
348.0
|
|
328.2
|
Income (loss) from continuing operating activities
attributable to shareholders
|
|
9.8
|
|
81.2
|
|
53.0
|
|
(125.9)
|
|
58.3
|
Net income (loss) attributable to
shareholders
|
|
9.8
|
|
72.1
|
|
(54.8)
|
|
(93.6)
|
|
65.5
|
Adjusted income from continuing operating
activities
|
|
69.9
|
|
66.5
|
|
55.9
|
|
44.8
|
|
39.9
|
Per basic share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operating activities
attributable to shareholders
|
|
0.08
|
|
0.66
|
|
0.42
|
|
(1.01)
|
|
0.46
|
|
Net income (loss) attributable to
shareholders
|
|
0.08
|
|
0.59
|
|
(0.45)
|
|
(0.75)
|
|
0.52
|
|
Adjusted income from continuing operating
activities
|
|
0.57
|
|
0.54
|
|
0.45
|
|
0.36
|
|
0.32
|
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.
2016/2015 second quarter comparison
Revenues: $992.5 million, a $28.7 million (3.0%) increase.
- Revenues increased in Telecommunications ($38.9 million or 5.2% of segment revenues)
and Sports and Entertainment ($4.6 million).
- Revenues decreased in Media ($22.4 million or -8.9%).
Adjusted operating income: $360.3 million, an $11.0 million (3.1%) increase.
- Adjusted operating income increased in Telecommunications
($20.3 million or 5.9% of
segment adjusted operating income).
- Adjusted operating income decreased in Media ($4.2 million or -37.8%). There were
unfavourable variances in Sports and Entertainment ($0.2 million or ‑5.1%) and at Head
Office ($4.9 million). The
change at Head Office was essentially due to an unfavourable
variance in the stock-based compensation charge.
- The change in the fair value of Quebecor Media stock options
resulted in a $0.3 million
favourable variance in the stock‑based compensation charge in the
second quarter of 2016 compared with the same period of 2015.
The change in the fair value of Quebecor stock options resulted in
a $6.7 million unfavourable
variance in the Corporation's consolidated stock‑based compensation
charge in the second quarter of 2016.
Net income attributable to shareholders: $9.8 million ($0.08 per basic share) in the second quarter
of 2016, compared with $72.1 million ($0.59 per basic share) in the same period of
2015, a decrease of $62.3 million ($0.51 per basic share).
- The unfavourable variance was essentially due to:
- $102.3 million unfavourable
variance in losses and gains on valuation and translation of
financial instruments, including $105.3 million without any tax
consequences;
- $25.8 million increase in
income tax expense.
Partially offset by:
- $30.0 million favourable
variance arising from recognition of a goodwill impairment charge
(without any tax consequences) in the second quarter of 2015;
- $13.8 million favourable
variance due to recognition of a loss on debt refinancing in the
second quarter of 2015;
- $11.8 million favourable
variance in the loss related to discontinued operations;
- $11.0 million increase in
adjusted operating income;
- $5.3 million decrease in the
depreciation and amortization charge.
Adjusted income from continuing operating activities:
$69.9 million ($0.57 per basic share) in the second quarter
of 2016, compared with $66.5 million ($0.54 per basic share) in the same period of
2015, an increase of $3.4 million ($0.03 per basic share).
2016/2015 year-to-date comparison
Revenues: $1.97 billion, a
$75.1 million (4.0%)
increase.
- Revenues increased in Telecommunications ($77.2 million or 5.2% of segment revenues)
and Sports and Entertainment ($10.1 million).
- Revenues decreased in Media ($16.4 million or -3.5%).
Adjusted operating income: $715.0 million, a $26.5 million (3.8%) increase.
- Adjusted operating income increased in Telecommunications
($35.5 million or 5.2% of
segment adjusted operating income).
- Adjusted operating income decreased in Media ($0.8 million or -16.0%). There were
unfavourable variances in Sports and Entertainment ($1.1 million) and at Head Office
($7.1 million). The change at
Head Office was essentially due to the unfavourable variance in the
stock-based compensation charge.
- The change in the fair value of Quebecor Media stock options
resulted in a $0.8 million
unfavourable variance in the stock‑based compensation charge in the
first half of 2016 compared with the same period of 2015. The
change in the fair value of Quebecor stock options resulted in a
$7.8 million unfavourable
variance in the Corporation's stock‑based compensation charge in
the first half of 2016.
Net income attributable to shareholders: $79.7 million ($0.65 per basic share) in the first half of 2016,
compared with $101.5 million
($0.83 per basic share) in the
same period of 2015, an unfavourable variance of $21.8 million ($0.18 per basic share).
- The unfavourable variance was essentially due to:
- $90.6 million unfavourable
variance in losses and gains on valuation and translation of
financial instruments, including $89.9 million without any tax
consequences;
- $31.6 million unfavourable
variance in the income tax expense;
- $3.4 million increase in the
charge for restructuring of operations and other items.
Partially offset by:
- recognition of a $30.0 million goodwill impairment charge in
the first half of 2015 (without any tax consequences);
- $26.5 million increase in
adjusted operating income;
- $25.1 million decrease in
the depreciation and amortization charge;
- $16.1 million favourable
variance in the loss related to discontinued operations;
- $12.1 million favourable
variance due to recognition of a loss on debt refinancing in the
second quarter of 2015;
- $7.7 million decrease in
financial expenses.
Adjusted income from continuing operating activities:
$137.6 million ($1.12 per basic share) in the first half
of 2016, compared with $107.9 million ($0.88 per basic share) in the same period of
2015, an increase of $29.7 million ($0.24 per basic share).
Financial transactions
In June 2016, Quebecor amended its
revolving credit facility to extend its term to July 2019, Quebecor Media amended its secured
revolving credit facility to extend its term to July 2020 and Videotron amended its secured
revolving credit facility and its unsecured revolving credit
facility to extend their term to July
2021. Some of the terms and conditions of the credit
facilities were also amended.
Dividend
On August 3, 2016, the Board of
Directors of Quebecor declared a quarterly dividend of $0.045 per share on its Class A Multiple
Voting Shares ("Class A Shares") and Class B Subordinate
Voting Shares ("Class B Shares"), payable on
September 13, 2016 to shareholders of record at the close
of business on August 19, 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 August 3, 2016, the Board of
Directors of Quebecor authorized the renewal of a 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 31, 2016.
The purchases will be made from August
15, 2016 to August 14, 2017 at
market prices on the open market through the facilities of the
Toronto Stock Exchange, in accordance with the requirements of that
exchange, or through other alternative trading systems. All shares
purchased under the bid will be cancelled. As of July 31, 2016, 38,863,172 Class A
Shares and 83,490,392 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 February 1, 2016 and
July 31, 2016 was 1,524 Class A Shares and
320,852 Class B Shares. Consequently, the Corporation
will be authorized to purchase a maximum of 1,000 Class A
Shares and 80,213 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.
Between August 1, 2015 and
July 31, 2016, the Corporation did
not purchase any Class A Shares and purchased
319,600 Class B Shares at a weighted price of
$30.35723 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 2016
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 2016 results on August 4,
2016, 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 August 4 to November 4, 2016 by
dialling 1 877 293‑8133, conference number 1202475,
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 August 4, 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, (loss)
gain on valuation and translation of financial instruments, charge
for restructuring of operations and other items, impairment of
goodwill, loss 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 June 30
|
|
Six months ended June 30
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (loss):
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
362.5
|
$
|
342.2
|
$
|
721.2
|
$
|
685.7
|
|
Media
|
|
6.9
|
|
11.1
|
|
4.2
|
|
5.0
|
|
Sports and Entertainment
|
|
(4.1)
|
|
(3.9)
|
|
(4.9)
|
|
(3.8)
|
|
Head Office
|
|
(5.0)
|
|
(0.1)
|
|
(5.5)
|
|
1.6
|
|
|
360.3
|
|
349.3
|
|
715.0
|
|
688.5
|
Depreciation and amortization
|
|
(161.7)
|
|
(167.0)
|
|
(323.4)
|
|
(348.5)
|
Financial expenses
|
|
(80.1)
|
|
(80.8)
|
|
(160.9)
|
|
(168.6)
|
(Loss) gain on valuation and translation of financial
instruments
|
|
(56.4)
|
|
45.9
|
|
(49.8)
|
|
40.8
|
Restructuring of operations and other
items
|
|
(5.6)
|
|
(5.7)
|
|
(13.5)
|
|
(10.1)
|
Impairment of goodwill
|
|
−
|
|
(30.0)
|
|
−
|
|
(30.0)
|
Loss on debt refinancing
|
|
−
|
|
(13.8)
|
|
−
|
|
(12.1)
|
Income taxes
|
|
(31.3)
|
|
(5.5)
|
|
(59.0)
|
|
(27.4)
|
Loss from discontinued operations
|
|
−
|
|
(11.8)
|
|
−
|
|
(16.1)
|
Net income
|
$
|
25.2
|
$
|
80.6
|
$
|
108.4
|
$
|
116.5
|
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 (loss) gain on valuation and translation of
financial instruments, charge for restructuring of operations and
other items, impairment of goodwill, loss 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 operating activities 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 operating
activities 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 June 30
|
Six months ended June 30
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Adjusted income from continuing operating
activities
|
$
|
69.9
|
$
|
66.5
|
$
|
137.6
|
$
|
107.9
|
(Loss) gain on valuation and translation of financial
instruments
|
|
(56.4)
|
|
45.9
|
|
(49.8)
|
|
40.8
|
Restructuring of operations and other
items
|
|
(5.6)
|
|
(5.7)
|
|
(13.5)
|
|
(10.1)
|
Impairment of goodwill
|
|
−
|
|
(30.0)
|
|
−
|
|
(30.0)
|
Loss on debt refinancing
|
|
−
|
|
(13.8)
|
|
−
|
|
(12.1)
|
Income taxes related to
adjustments1
|
|
1.1
|
|
6.8
|
|
3.2
|
|
3.9
|
Net income attributable to non‑controlling
interest related to adjustments
|
|
0.8
|
|
11.5
|
|
2.2
|
|
12.3
|
Discontinued operations
|
|
−
|
|
(9.1)
|
|
−
|
|
(11.2)
|
Net income attributable to
shareholders
|
$
|
9.8
|
$
|
72.1
|
$
|
79.7
|
$
|
101.5
|
|
|
|
|
|
|
|
|
|
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 the 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)
|
Three months ended
|
|
Six months ended
|
(unaudited)
|
June 30
|
|
June 30
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
992.5
|
$
|
963.8
|
|
$
|
1,967.9
|
$
|
1,892.8
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
181.4
|
|
176.4
|
|
|
366.4
|
|
357.9
|
Purchase of goods and services
|
|
450.8
|
|
438.1
|
|
|
886.5
|
|
846.4
|
Depreciation and amortization
|
|
161.7
|
|
167.0
|
|
|
323.4
|
|
348.5
|
Financial expenses
|
|
80.1
|
|
80.8
|
|
|
160.9
|
|
168.6
|
Loss (gain) on valuation and translation of financial
instruments
|
|
56.4
|
|
(45.9)
|
|
|
49.8
|
|
(40.8)
|
Restructuring of operations and other
items
|
|
5.6
|
|
5.7
|
|
|
13.5
|
|
10.1
|
Impairment of goodwill
|
|
-
|
|
30.0
|
|
|
-
|
|
30.0
|
Loss on debt refinancing
|
|
-
|
|
13.8
|
|
|
-
|
|
12.1
|
Income before income
taxes
|
|
56.5
|
|
97.9
|
|
|
167.4
|
|
160.0
|
|
|
|
|
|
|
|
|
|
|
Income taxes (recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
41.1
|
|
(12.6)
|
|
|
79.3
|
|
23.7
|
|
Deferred
|
|
(9.8)
|
|
18.1
|
|
|
(20.3)
|
|
3.7
|
|
|
31.3
|
|
5.5
|
|
|
59.0
|
|
27.4
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
|
25.2
|
|
92.4
|
|
|
108.4
|
|
132.6
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued
operations
|
|
-
|
|
(11.8)
|
|
|
-
|
|
(16.1)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
25.2
|
$
|
80.6
|
|
$
|
108.4
|
$
|
116.5
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations attributable
to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
9.8
|
$
|
81.2
|
|
$
|
79.7
|
$
|
112.7
|
|
Non-controlling interests
|
|
15.4
|
|
11.2
|
|
|
28.7
|
|
19.9
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
9.8
|
$
|
72.1
|
|
$
|
79.7
|
$
|
101.5
|
|
Non-controlling interests
|
|
15.4
|
|
8.5
|
|
|
28.7
|
|
15.0
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable to
shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
$
|
0.08
|
$
|
0.66
|
|
$
|
0.65
|
$
|
0.92
|
|
|
From discontinued operations
|
|
-
|
|
(0.07)
|
|
|
-
|
|
(0.09)
|
|
|
Net income
|
|
0.08
|
|
0.59
|
|
|
0.65
|
|
0.83
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
0.08
|
|
0.26
|
|
|
0.65
|
|
0.56
|
|
|
From discontinued operations
|
|
-
|
|
(0.07)
|
|
|
-
|
|
(0.09)
|
|
|
Net income
|
|
0.08
|
|
0.19
|
|
|
0.65
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding (in
millions)
|
|
122.4
|
|
122.8
|
|
|
122.4
|
|
122.8
|
Weighted average number of diluted shares (in
millions)
|
|
122.8
|
|
143.9
|
|
|
122.8
|
|
143.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR INC. AND ITS
SUBSIDIARIES
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian
dollars)
|
Three months ended
|
|
Six months ended
|
(unaudited)
|
June 30
|
|
June 30
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
25.2
|
$
|
92.4
|
|
$
|
108.4
|
$
|
132.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified to
income:
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on valuation of derivative financial
instruments
|
|
36.1
|
|
(32.2)
|
|
|
46.2
|
|
(24.9)
|
|
|
|
Deferred income taxes
|
|
3.9
|
|
8.3
|
|
|
19.2
|
|
(14.1)
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to
income:
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Re-measurement loss
|
|
(61.0)
|
|
-
|
|
|
(139.0)
|
|
-
|
|
|
|
Deferred income taxes
|
|
16.1
|
|
-
|
|
|
37.1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification to income:
|
|
|
|
|
|
|
|
|
|
|
|
Gain related to cash flow hedges
|
|
-
|
|
(2.1)
|
|
|
-
|
|
(3.9)
|
|
|
Deferred income taxes
|
|
-
|
|
(0.8)
|
|
|
-
|
|
(0.4)
|
|
|
(4.9)
|
|
(26.8)
|
|
|
(36.5)
|
|
(43.3)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income from continuing
operations
|
|
20.3
|
|
65.6
|
|
|
71.9
|
|
89.3
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
-
|
|
(11.8)
|
|
|
-
|
|
(16.1)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
$
|
20.3
|
$
|
53.8
|
|
$
|
71.9
|
$
|
73.2
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income from continuing operations
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
7.7
|
$
|
61.0
|
|
$
|
54.8
|
$
|
80.2
|
|
Non-controlling interests
|
|
12.6
|
|
4.6
|
|
|
17.1
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable
to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
$
|
7.7
|
$
|
51.8
|
|
$
|
54.8
|
$
|
69.0
|
|
Non-controlling interests
|
|
12.6
|
|
2.0
|
|
|
17.1
|
|
4.2
|
QUEBECOR INC. AND ITS
SUBSIDIARIES
|
SEGMENTED INFORMATION
|
|
(in millions of Canadian
dollars)
|
(unaudited)
|
|
|
Three months ended June 30,
2016
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports and Entertainment
|
|
Head
office and
Intersegments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
780.4
|
$
|
229.2
|
$
|
6.7
|
$
|
(23.8)
|
$
|
992.5
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
96.0
|
|
68.3
|
|
1.3
|
|
15.8
|
|
181.4
|
Purchase of goods and services
|
|
321.9
|
|
154.0
|
|
9.5
|
|
(34.6)
|
|
450.8
|
Adjusted operating
income1
|
|
362.5
|
|
6.9
|
|
(4.1)
|
|
(5.0)
|
|
360.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
161.7
|
Financial expenses
|
|
|
|
|
|
|
|
|
|
80.1
|
Loss on valuation and translation of financial
instruments
|
|
|
|
|
|
|
|
|
|
56.4
|
Restructuring of operations and other
items
|
|
|
|
|
|
|
|
|
|
5.6
|
Income before income taxes
|
|
|
|
|
|
|
|
|
$
|
56.5
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and
equipment
|
$
|
196.3
|
$
|
5.1
|
$
|
0.6
|
$
|
1.3
|
$
|
203.3
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets
|
|
26.0
|
|
3.4
|
|
-
|
|
0.9
|
|
30.3
|
|
|
Three months ended June 30, 2015
|
|
|
|
Telecommunications
|
Media
|
|
Sports
and
Entertainment
|
|
Head
office
and
Intersegments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
741.5
|
$
|
251.6
|
$
|
2.1
|
$
|
(31.4)
|
$
|
963.8
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
90.6
|
|
75.2
|
|
2.3
|
|
8.3
|
|
176.4
|
Purchase of goods and services
|
|
308.7
|
|
165.3
|
|
3.7
|
|
(39.6)
|
|
438.1
|
Adjusted operating
income1
|
|
342.2
|
|
11.1
|
|
(3.9)
|
|
(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
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
|
|
|
|
Six months ended June 30,
2016
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports
and
Entertainment
|
|
Head
office
and
Intersegments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,552.9
|
$
|
450.3
|
$
|
17.0
|
$
|
(52.3)
|
$
|
1,967.9
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
195.1
|
|
138.0
|
|
5.7
|
|
27.6
|
|
366.4
|
Purchase of goods and services
|
|
636.6
|
|
308.1
|
|
16.2
|
|
(74.4)
|
|
886.5
|
Adjusted operating
income1
|
|
721.2
|
|
4.2
|
|
(4.9)
|
|
(5.5)
|
|
715.0
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
323.4
|
Financial expenses
|
|
|
|
|
|
|
|
|
|
160.9
|
Loss on valuation and translation of financial
instruments
|
|
|
|
|
|
|
|
|
|
49.8
|
Restructuring of operations and other
items
|
|
|
|
|
|
|
|
|
|
13.5
|
Income before income taxes
|
|
|
|
|
|
|
|
|
$
|
167.4
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and
equipment
|
$
|
355.9
|
$
|
18.8
|
$
|
1.2
|
$
|
1.6
|
$
|
377.5
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible assets
|
|
64.6
|
|
5.2
|
|
0.3
|
|
1.7
|
|
71.8
|
|
|
|
Six months ended June 30,
2015
|
|
|
|
Telecommunications
|
|
Media
|
|
Sports
and
Entertainment
|
|
Head
office
and
Intersegments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
1,475.7
|
$
|
466.7
|
$
|
6.9
|
$
|
(56.5)
|
$
|
1,892.8
|
|
|
|
|
|
|
|
|
|
|
|
Employee costs
|
|
183.5
|
|
152.5
|
|
4.4
|
|
17.5
|
|
357.9
|
Purchase of goods and services
|
|
606.5
|
|
309.2
|
|
6.3
|
|
(75.6)
|
|
846.4
|
Adjusted operating
income1
|
|
685.7
|
|
5.0
|
|
(3.8)
|
|
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
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
|
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
and other 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
|
|
|
|
|
Capital stock
|
|
Contributed surplus
|
|
Retained earnings
|
|
Accumulated
other
comprehensive
loss
|
|
attributable
to non-
controlling interests
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
Dividends
|
|
-
|
|
-
|
|
(7.4)
|
|
-
|
|
(12.3)
|
|
(19.7)
|
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 and business
acquisitions
|
|
-
|
|
-
|
|
13.8
|
|
-
|
|
(13.3)
|
|
0.5
|
Balance as of June 30, 2015
|
|
326.4
|
|
2.3
|
|
341.3
|
|
(96.9)
|
|
550.0
|
|
1,123.1
|
Net income
|
|
-
|
|
-
|
|
50.3
|
|
-
|
|
13.3
|
|
63.6
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(7.0)
|
|
(2.3)
|
|
(9.3)
|
Dividends or distributions
|
|
-
|
|
-
|
|
(8.6)
|
|
-
|
|
(11.1)
|
|
(19.7)
|
Repurchase of Class B
Shares
|
|
(0.8)
|
|
-
|
|
(5.3)
|
|
-
|
|
-
|
|
(6.1)
|
Non-controlling interests and business
acquisitions
|
|
-
|
|
-
|
|
(295.5)
|
|
(7.3)
|
|
(196.8)
|
|
(499.6)
|
Balance as of December 31,
2015
|
|
325.6
|
|
2.3
|
|
82.2
|
|
(111.2)
|
|
353.1
|
|
652.0
|
Net income
|
|
-
|
|
-
|
|
79.7
|
|
-
|
|
28.7
|
|
108.4
|
Other comprehensive
loss
|
|
-
|
|
-
|
|
-
|
|
(24.9)
|
|
(11.6)
|
|
(36.5)
|
Dividends or distributions
|
|
-
|
|
-
|
|
(9.8)
|
|
-
|
|
(9.6)
|
|
(19.4)
|
Repurchase of Class B Shares
|
|
(0.4)
|
|
-
|
|
(3.2)
|
|
-
|
|
-
|
|
(3.6)
|
Balance as of June 30, 2016
|
$
|
325.2
|
$
|
2.3
|
$
|
148.9
|
$
|
(136.1)
|
$
|
360.6
|
$
|
700.9
|
QUEBECOR INC. AND ITS
SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Canadian
dollars)
|
Three months ended
|
|
Six months ended
|
(unaudited)
|
June 30
|
|
June 30
|
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related to operating
activities
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
$
|
25.2
|
$
|
92.4
|
|
$
|
108.4
|
$
|
132.6
|
|
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and
equipment
|
|
135.5
|
|
146.4
|
|
|
275.1
|
|
294.3
|
|
|
Amortization of intangible assets
|
|
26.2
|
|
20.6
|
|
|
48.3
|
|
54.2
|
|
|
Loss (gain) on valuation and translation of financial
instruments
|
|
56.4
|
|
(45.9)
|
|
|
49.8
|
|
(40.8)
|
|
|
Impairment of goodwill
|
|
-
|
|
30.0
|
|
|
-
|
|
30.0
|
|
|
Loss on debt refinancing
|
|
-
|
|
13.8
|
|
|
-
|
|
12.1
|
|
|
Amortization of financing costs and long-term debt
discount
|
|
1.8
|
|
1.8
|
|
|
3.4
|
|
3.8
|
|
|
Deferred income taxes
|
|
(9.8)
|
|
18.1
|
|
|
(20.3)
|
|
3.7
|
|
|
Other
|
|
0.6
|
|
0.4
|
|
|
2.1
|
|
2.4
|
|
|
235.9
|
|
277.6
|
|
|
466.8
|
|
492.3
|
|
Net change in non-cash balances related to operating
activities
|
|
4.7
|
|
(97.6)
|
|
|
(6.7)
|
|
(166.0)
|
Cash flows provided by continuing operating
activities
|
|
240.6
|
|
180.0
|
|
|
460.1
|
|
326.3
|
Cash flows related to investing
activities
|
|
|
|
|
|
|
|
|
|
|
Business acquisitions
|
|
0.2
|
|
(55.3)
|
|
|
(119.1)
|
|
(90.8)
|
|
Business disposals
|
|
-
|
|
304.2
|
|
|
3.0
|
|
304.2
|
|
Additions to property, plant and
equipment
|
|
(203.3)
|
|
(153.9)
|
|
|
(377.5)
|
|
(323.7)
|
|
Additions to intangible assets
|
|
(30.3)
|
|
(237.2)
|
|
|
(71.8)
|
|
(264.5)
|
|
Proceeds from disposals of assets
|
|
1.4
|
|
1.6
|
|
|
1.8
|
|
1.9
|
|
Other
|
|
0.3
|
|
0.1
|
|
|
0.3
|
|
0.3
|
Cash flows used in continuing investing
activities
|
|
(231.7)
|
|
(140.5)
|
|
|
(563.3)
|
|
(372.6)
|
Cash flows related to financing
activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank indebtedness
|
|
(24.1)
|
|
-
|
|
|
19.9
|
|
(3.9)
|
|
Net change under revolving
facilities
|
|
39.0
|
|
7.0
|
|
|
104.9
|
|
(5.6)
|
|
Repayments of long-term debt
|
|
(7.4)
|
|
(225.1)
|
|
|
(10.0)
|
|
(231.6)
|
|
Settlement of hedging contracts
|
|
(2.2)
|
|
13.2
|
|
|
3.6
|
|
13.1
|
|
Issuance of shares of a subsidiary to non-controlling
interests
|
|
-
|
|
-
|
|
|
-
|
|
12.1
|
|
Repurchase of Class B Shares
|
|
(2.3)
|
|
(6.3)
|
|
|
(3.6)
|
|
(6.3)
|
|
Dividends
|
|
(9.8)
|
|
(7.4)
|
|
|
(9.8)
|
|
(7.4)
|
|
Dividends or distributions paid to non-controlling
interests
|
|
(4.9)
|
|
(6.1)
|
|
|
(9.6)
|
|
(12.3)
|
Cash flows (used in) provided by continuing financing
activities
|
|
(11.7)
|
|
(224.7)
|
|
|
95.4
|
|
(241.9)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents from
continuing operations
|
|
(2.8)
|
|
(185.2)
|
|
|
(7.8)
|
|
(288.2)
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by (used in) discontinued
operations
|
|
-
|
|
0.3
|
|
|
-
|
|
(20.0)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of
period
|
|
13.6
|
|
272.0
|
|
|
18.6
|
|
395.3
|
Cash and cash equivalents at end of
period
|
$
|
10.8
|
$
|
87.1
|
|
$
|
10.8
|
$
|
87.1
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents consist
of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
9.2
|
$
|
64.7
|
|
$
|
9.2
|
$
|
64.7
|
|
Cash equivalents
|
|
1.6
|
|
22.4
|
|
|
1.6
|
|
22.4
|
|
$
|
10.8
|
$
|
87.1
|
|
$
|
10.8
|
$
|
87.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes reflected as operating
activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest payments
|
$
|
112.1
|
$
|
128.6
|
|
$
|
154.7
|
$
|
159.6
|
|
Cash income tax payments (net of
refunds)
|
|
29.4
|
|
32.8
|
|
|
63.9
|
|
99.6
|
QUEBECOR INC. AND ITS
SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
(in millions of Canadian
dollars)
|
|
|
|
|
(unaudited)
|
|
June 30
|
|
December 31
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
10.8
|
$
|
18.6
|
|
Accounts receivable
|
|
468.0
|
|
494.1
|
|
Income taxes
|
|
13.3
|
|
28.6
|
|
Inventories
|
|
169.7
|
|
215.5
|
|
Prepaid expenses
|
|
70.3
|
|
46.0
|
|
|
732.1
|
|
802.8
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and equipment
|
|
3,535.1
|
|
3,424.9
|
|
Intangible assets
|
|
1,199.6
|
|
1,178.0
|
|
Goodwill
|
|
2,771.8
|
|
2,678.4
|
|
Derivative financial instruments
|
|
785.9
|
|
1,072.4
|
|
Deferred income taxes
|
|
37.5
|
|
29.5
|
|
Other assets
|
|
100.9
|
|
89.9
|
|
|
8,430.8
|
|
8,473.1
|
Total assets
|
$
|
9,162.9
|
$
|
9,275.9
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Bank indebtedness
|
$
|
54.2
|
$
|
34.3
|
|
Accounts payable and accrued
charges
|
|
586.0
|
|
654.9
|
|
Provisions
|
|
66.1
|
|
67.1
|
|
Deferred revenue
|
|
300.1
|
|
321.5
|
|
Income taxes
|
|
4.3
|
|
9.1
|
|
Current portion of long-term debt
|
|
20.5
|
|
44.0
|
|
|
1,031.2
|
|
1,130.9
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Long-term debt
|
|
5,714.7
|
|
5,812.4
|
|
Derivative financial instruments
|
|
9.1
|
|
118.7
|
|
Convertible debentures
|
|
500.0
|
|
500.0
|
|
Other liabilities
|
|
657.0
|
|
448.2
|
|
Deferred income taxes
|
|
550.0
|
|
613.7
|
|
|
7,430.8
|
|
7,493.0
|
Equity
|
|
|
|
|
|
Capital stock
|
|
325.2
|
|
325.6
|
|
Contributed surplus
|
|
2.3
|
|
2.3
|
|
Retained earnings
|
|
148.9
|
|
82.2
|
|
Accumulated other comprehensive
loss
|
|
(136.1)
|
|
(111.2)
|
|
Equity attributable to
shareholders
|
|
340.3
|
|
298.9
|
|
Non-controlling interests
|
|
360.6
|
|
353.1
|
|
|
700.9
|
|
652.0
|
|
|
|
|
|
Total liabilities and equity
|
$
|
9,162.9
|
$
|
9,275.9
|
SOURCE Quebecor Inc.